Manning 11e 01

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-1

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1Personal Selling

and the Marketing Concept


Learning ObjectivesLearning Objectives

• Define personal selling and describe the three prescriptions of a personal selling philosophy

• Describe contributions of personal selling to the information economy

• Discuss personal selling as an extension of the marketing concept

• Describe the evolution of consultative selling from the marketing era to the present


Learning ObjectivesLearning Objectives

• Define strategic selling and name four broad strategic areas of the Strategic/Consultative Selling Model

• Describe evolution of partnering and the nature of a strategic selling alliance

• Explain how value-added strategies enhance personal selling


Definition of Personal SellingDefinition of Personal Selling

• Person-to-person communication with a prospect

• Personal selling is a process of• Developing relationships• Discovering needs• Matching products with needs• Communicating benefits

• Viewed as a process that adds value


Philosophy of Personal SellingPhilosophy of Personal Selling

• A strategic resource is information• Salespeople are the eyes/ears of the

marketplace• Salespeople can collect wide range of

competitive intelligence

• Business is defined by customer relationships

• Sales success depends on adding value

Michael Hammer, consultant and author of The Agenda, says, “The real new economy is the customer economy.”


A Shift in EmphasisA Shift in Emphasis

FIGURE 1.2


Personal Selling in the Personal Selling in the Information AgeInformation Age

• An evolution from the industrial economy to the information economy

• Began in the 1950s• New emphasis is information

exchange rather than producing goods

• Implications for personal selling


The Marketing ConceptThe Marketing Concept

• A principle that holds that achieving organizational goals depends on: • Knowing the needs and wants of target

markets • Delivering the desired product

• Paths to sales and profits are:• Customer focus• Value


The Marketing MixThe Marketing Mix

FIGURE 1.3


Important Role of Personal SellingImportant Role of Personal Selling

• Often the major promotional method

• Firms invest in personal selling

• Personal selling has evolved because:• Products and services are more sophisticated

and complex• Competition has greatly increased• Customer demand for quality, value, and

service has risen sharply


Evolution of Consultative SellingEvolution of Consultative Selling

• Consultative selling era (late 1960s to early 1970s)• Mass markets break into target markets• Emphasis on need identification• Information sharing and negotiation replace

manipulation



Transactional selling• Process that serves the buyer primarily

interested in price and convenience

Consultative selling• Process that developed from the marketing

concept, emphasizing needidentification



• Customer is a person to be served, not a prospect to be sold

• Two-way communication identifies (diagnoses) customer’s needs; no high-pressure sales presentation

• Emphasis on information giving, problem solving, and negotiation rather than manipulation

• Emphasis on service after the sale

Features of consultative selling include:


Evolution of Strategic SellingEvolution of Strategic Selling

• A strategic market plan• Outlines necessary methods and resources• Considers areas to be coordinated

• Finance • Personnel• Production • Marketing

• Influences the sale of products• Serves as guide for strategic selling plan



• Tactics• Specific techniques, practices, and methods

used in customer interaction

• Strategy• Carefully conceived plan needed to

accomplish sales objectives • A prerequisite to tactical success



• Strategic selling era (early 1980s)• Market niches require more planning• Equal emphasis on strategy and tactics • Product positioning vital

• Partnering era (1990 to present)• Customer, not

product, as driving force

• Emphasis on strategies that create customer value


FIGURE 1.5


Develop a Relationship StrategyDevelop a Relationship Strategy

Adopt a win-win philosophy

Project a professional image

Maintain high ethical standards

“People don’t care how much you know until they know how much you care.”

Harvey B. Mackay, founder of Mackay Envelope Corporation


Develop a Product StrategyDevelop a Product Strategy

Become a product expert

Sell benefits, not features

Configure value-added solutions

“Diagnose before you prescribe.” Stephen Covey, author of The 7 Habits of Highly Effective People


Develop a Presentation StrategyDevelop a Presentation Strategy

Prepare objectives

Develop a presentation plan

Provide outstanding service


Develop a Customer StrategyDevelop a Customer Strategy

Understand the buying process

Understand buyer behavior

Develop prospect base

Patricia Seyold, best-selling author of The Customer Revolution says, “We are in the midst of a profound

revolution: the customer revolution.”


Interrelationship of Basic Interrelationship of Basic StrategiesStrategies

FIGURE 1.7


Evolution of PartneringEvolution of Partnering

• Buzzword of 1990s, became business reality in 2000s

• “Strategically developed, long-term relationship that solves the customer’s problems”

• Relationship selling relies on a customized approach to each client

• Enhanced with high ethical standards and Customer Relationship Management


Strategic AlliancesStrategic Alliances

• Formed by companies that have similar business interests and, thus, gain a mutual competitive advantage

• The goal is to achieve a marketplace advantage by teaming up with another firm

• Highest form of consultative selling required to build win-win alliances


Strategic Selling AlliancesStrategic Selling Alliances

FIGURE 1.7


Example of Partnering:Example of Partnering:Campbell Food Service, Inc.Campbell Food Service, Inc.

See theWebsite


Example of Partnering:Example of Partnering:Cushman &WakefieldCushman &Wakefield

See theWebsite


Partnering is Enhanced with Customer Partnering is Enhanced with Customer Relationship ManagementRelationship Management

See theWebsite


Value CreationValue Creation

• Value-added selling = creative improvements that enhance customer experience

• The information economy rewards salespeople who add value at each step

• When customer is not aware of value added by salespeople, the focus may shift to price


Customer Value ModelCustomer Value Model

FIGURE 1.8


Value-Added Selling Example:Value-Added Selling Example:Wisconsin Milk Marketing BoardWisconsin Milk Marketing Board

See theWebsite


Key ConceptKey ConceptDiscussion Questions Discussion Questions

• Define personal selling and describe the three prescriptions of a personal selling philosophy

• Describe the contributions of personal selling to the information economy

• Discuss personal selling as an extension of the marketing concept

• Describe the evolution of consultative selling from the marketing era to the present



Key ConceptKey ConceptDiscussion Questions Discussion Questions

• Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model

• Describe the evolution of partnering and the nature of a strategic selling alliance

• Explain how value-added selling strategies enhance personal selling



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Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall

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Manning 11e 01