Personal Selling and The Marketing Concept Chapter 1

Personal Selling and The Marketing

ConceptChapter 1

Selling- What does it take to succeed?

SuccessService to Others

sUccessUse the Golden Rule

suCcessCommunication Ability

sucCessCharacteristics for the Job

succEssExcel at strategic thinking

succeSsSales Knowledge

succesSStamina for the challenge

Relationship selling leads to

successRelationship selling- professionally providing information for customers allowing them to make intelligent purchases to achieve their long and short-term objectives.

ABC’S of relationship

sellingA Analyze the customer’s needsB present product BenefitsC gain Commitment for the purchase

S provide excellent Service to maintain and grow the relationship

Personal SellingPerson-to-person communication with a prospect

Viewed as a process that adds value

Personal SellingIt is a process of:

Developing relationshipsDiscovering needsMatching the appropriate products with these needs

Communicating benefits through informing, reminding or persuading

ProductEncompasses information, services, ideas and issues.

Personal Selling Philosophy

1. Adopt a marketing concept

2. Value personal selling

3. Become a problem solver and partner.

Personal Selling in the

Age of InformationIndustrial Economy 1860- 1960

Major advances occur in manufacturing and transportation

Strategic resources are capital and natural resources

Business is defined by its products and factories

Sales success depends on meeting sales quotas


Age of InformationInformation Economy 1960- 2020

Major advances occur in information technology

Strategic resource is informationBusiness is defined by customer relationships

Sales success depends on adding value


Age of Information There have been four major

developments that have shaped the information economy1. Major advances in information

technology2. Strategic resource is information3. Business is defined by customer

relationships4. Sales success depends on adding

value

Major Advances in Information Technology

There has been an increased use of personal computers, e-mail, instant messaging, mobile phones and other forms of technology to obtain and process information

Major Advances in Information Technology

Computer use has changed for data crunching to connecting people

The connections include:People to peopleMachine to machineProduct to serviceOrganization to organizationAll of these in combination

Strategic Resource is Information

Advances in information technology have increased the speed at which we acquire, process and disseminate information

Strategic Resource is Information

As a salesperson, you are are expected to the consumer with assistance in deciding which information has value and which information should be ignored.

People have less time to adjust to new products and circumstances value this assistance.

Business is Defined by Customer

RelationshipsCustomers today are better informed and this has caused a power shift

Customers have taken more control of their purchase decisions

As a salesperson you are the “human element”


RelationshipsYou have the ability to think, feel and generate ideas

Relationship selling and marketing emphasizes long-term, mutually satisfying buyer-seller relationships and it has gain much support from the beginning of the Information Age.


RelationshipsPersonal selling provides a counterbalancing human response to the impersonal nature of technology.

Sales Success Depends on Adding

ValueValue-added selling:

A series of creative improvements within the sales process that enhance the customer experience.

Sales Success Depends on Adding

ValueHow can a salesperson add value?

Developing quality relationshipsCarefully identifying the customer’s needs

Configuring and presenting the best possible product solution

Marketing ConceptThe belief that a company should dedicate all of its policies, planning and operations to the satisfaction of the customer.

Determine what the customer wants and then develop the appropriate product or service

Marketing Concept Yields Marketing

MixOnce the marketing concept becomes a part of a firm’s philosophy, its management seeks to develop a network of marketing activities that maximize customer satisfaction and ensure profitability. This combination of elements make up the marketing mix.

The Marketing MixMarketing Mix: A set of controllable, tactical marketing tools that consists of everything the firm can do to influence the demand for its product

The Marketing Mix The marketing mix can be

organized into a group of four variables:1. Product2. Price3. Place4. Promotion

– Advertising, public relations, sales promotion and personal selling

Important Role of Personal Selling

Personal selling is often the major promotional method used–whether measured by people employed, by total expenditures or by expenses as a percentage of sales.

Important Role of Personal Selling

Large investments are being placed in personal selling in response to several major trends:Products and services are becoming increasingly sophisticated and complex

Competition has greatly increased in most product areas

Demand for quality, value and service by customers has risen

Important Role of PersonalSelling

Personal selling has evolved through three distinct developmental periods:Consultative selling eraStrategic selling eraPartnering era

Consultative Selling Era

Late 1960s to early 1970sThis approach emphasizes need identification, which is achieved through effective communication between the sales person and the customer

Buyers needs are identified through two-way communication

Information giving and negotiation tactics replace manipulation


It is important to understand the role of transactional selling

Transactional selling is a sales process that most effectively matches the needs of the value-conscious buyer who is primarily interested in price and convenience.

Many transactional buyers are well aware of their needs and may already know a great deal about the products or services they intend to purchase. Their primary focus is low price.

Low-cost transaction selling strategies include telesales, direct mail and the Internet.

This approach to selling is usually used by marketers who do not see the need to spend vary much time on customer need assessment, problem solving, relationship, or sales follow-up


Major features of the Consultative Selling Era include:1. The customer is seen as a person to

be served, not a prospect to be sold2. The consultative salesperson, unlike

the peddler of and earlier era, does not try to overpower the customer with a high-pressure sales presentation


Consultative selling emphasizes information giving, problem solving and negotiation instead of manipulation

Consultative selling emphasizes service after the sale

Strategic Selling Era

Early1980sStrategy is given as much attention as selling tactics

Product positioning is given more attention

During this period, the selling environment became more complex


These trends, which include increased global competition, broader and more divers product lines, more decision makers involved in major purchases, and greater demand for specific, custom-made solutions, continue to influence personal selling and sales training in the age of information.


Strategic planning:The managerial process that matches the firm’s resources to its market opportunities. It takes into consideration the various functional areas of the business that must be coordinated such as financial assets, workforce, production capabilities, and marketing.

Almost every aspect of strategic planning directly or indirectly influences sales and marketing.


What is the difference between tactics and strategies?Tactic: Techniques, practices, or methods you use when you are face-to-face with a customer

Strategy: A carefully conceived plan that is needed to accomplish a sales objective. It is a prerequisite to tactical success.


Strategic planning sets the stage for a value-added form of consultative selling that is more structured, more focused, and more efficient. The result is better time allocation, more precise problem solving, and a greater chance that there will be a good match between your product and the customer’s needs.

Strategic/Consultative Selling Model

The strategic/consultative selling model includes five steps:1. Develop a personal selling

philosophy2. Develop a relationship strategy3. Develop a product strategy4. Develop a customer strategy5. Develop a presentation strategy

Develop a Relationship

StrategyRelationship strategy: A well-thought-out plan for establishing, building and maintaining quality relationships.Adopt Win-Win Philosophy: When the customer wins, I win

Project professional imageMaintain high ethical standards

Develop a Product Strategy

Product strategy: A plan that helps salespeople make correct decisions concerning the selection and positioning of products to meet identified customer needs.

Three prescriptions for the product strategy are become a product expert, sell benefits, and configure value-added solutions.

Develop a Customer Strategy

Customer strategy is a carefully conceived plan that results in maximum responsiveness to the customer’s needs.

The salesperson should develop an understanding of the customer’s buying process, understand buyer behavior, and develop a prospect base.

Develop a Presentation

StrategyPresentation strategy: A well-developed plan that includes preparing the sales presentation objectives, preparing a presentation plan that is needed to meet these objectives, and renewing one’s commitment to provide outstanding customer service.

As a salesperson, you want to prepare objectives, develop presentation plan, and provide outstanding service.

Electronic Commerce

Electronic commerce: Specific form of e-business that refers to buying and selling activities conducted on the Internet

Electronic business (e-business): Involves the use of intranets, extranets, and the Internet to conduct a company’s business.

Customer Relationship Management

Customer Relationship Management (CRM): Building and maintaining strong customer relationships by using a variety of technologies (software) to enhance customer responsiveness.

Complex SaleA complex sale will almost always require the use of several forms of information technology to gather and distribute information to customers.

Partnering Era1990 to presentPartnering is the result of several economic forcesWhen products of one company are nearly identical to the competition, the product strategy becomes less important than the relationship, customer, and presentation strategies.

The need for customized products or services

Partnering Era Today’s customer wants a quality product and a quality relationship

A strong partnership serves as a barrier to competing salespeople who want to sell to your accounts

Salespeople who are able to build partnerships enjoy more repeat business and referrals

It cost four or five times more to get a new customer than to keep an existing one.

Partnering EraPartnering: A strategically developed, long-term relationship that solves the customer’s problems.

A successful long-term partnership is achieved when the salesperson is able to skillfully apply four major strategies

Strategic Alliances–

The Highest Form of Partnering

Strategic alliance: An alliances often formed by companies that have similar business interests and, thus, gain a mutual competitive advantage. It is not uncommon for a company to

form several alliances. Example: Nike and iPod creating the

Nike+ shoes

Strategic Alliances–

The Highest Form of Partnering

Building an alliance1. Learn as much as possible about the proposed partnerAlliances that are formed between companies that vary greatly in such areas as customer focus, financial stability, or ethical values will likely fail.

2. Meet with the proposed partner and explore mutual benefits of the alliance

Partnering–High Ethical

StandardsPoor ethical decisions can weaken or destroy partnerships

The best way to ensure repeat business is to deal honestly and fairly with every customer

Documents

Personal Selling and The Marketing Concept Chapter 1