Overview of Personal Selling

Personal Selling

Learning Objectives
1. Describe the evolution of personal selling from ancient times to the modern era. 2. Explain the contributions of personal selling to society, business firms, and customers. 3. Distinguish between transaction-focused traditional selling and trust-based relationship selling.

Learning Objectives

4. Discuss five alternative approaches to selling. 5. Describe the three primary roles fulfilled by consultative salespeople 6. Understand the sales process as a series of interrelated steps.

Setting the Stage

UPS Builds Trust and Long-Term Customer Relationships
1. What does Carl Strenger, a UPS Vice President, mean by a consultative discussion with the customer?

2. When teaming up with UPS Capital sales personnel, what is the focus of the overall sales strategy?

Personal Selling Defined

Personal selling refers to personal communication with a an audience through paid personnel of an organization or its agents in such a way that the audience perceives the communicators organization as being the source of the message.

Evolution of Personal Selling

Peddlers selling door to door . . . served as intermediaries Selling function became more structured

1800s 1900s 2000s st As we begin Post-Industrial the 21 century, selling continues to develop, Industrial War and Modern becomingRevolution more professional and more relational Revolution Depression Era

Business organizations employed salespeople

Selling function became more professional

Contributions of Personal Selling: Salespeople and Society

Salespeople help stimulate the economy
Salespeople help with the diffusion of innovation

Contributions of Personal Selling: Salespeople and the Employing Firm

Salespeople generate revenue Salespeople provide market research and customer feedback Salespeople become future leaders in the organization

Contributions of Personal Selling: Salespeople and the Customer

Salespeople provide solutions to problems Salespeople provide expertise and serve as information resources Salespeople serve as advocates for the customer when dealing with the selling organization

Transaction-Focused vs. Relationship Focused

Transaction-Focused
Short term thinking Making the sale has priority over most other considerations Interaction between buyer and seller is competitive Salesperson is selfinterest oriented

Relationship-Focused
Long term thinking Developing the relationship takes priority over getting the sale Interaction between buyer and seller is collaborative. Salesperson is customer-oriented

Classification of Personal Selling Approaches

Stimulus Response Selling Mental States Selling Need Satisfaction Selling Problem Solving Selling

Stimulus Response Selling

Salesperson Provides Stimuli

Buyer Responses Sought

Continue Process until Purchase Decision

Mental States Selling

Attention

Interest

Conviction

Desire

Action

Need Satisfaction Selling

Uncover and Confirm Buyer Needs

Present Offering to Satisfy Buyer Needs

Continue Selling until Purchase Decision

Problem Solving Selling

Define Problem

Generate Alternative Solutions

Evaluate Alternative Solutions

Continue Selling until Purchase Decision

Consultative Selling
Business Consultant

The process of helping customers reach their strategic goals by using the products, service, and expertise of the selling organization.

Strategic Orchestrator

Long-term Ally

The Sales Process: An Overview

Selling Foundations

Initiating Customer Relationships

Selling Strategy

Developing Customer Relationships

Enhancing Customer Relationships

The Sales Process: Selling Foundations

In order to be successful in todays global business environment, salespeople must have a solid relationship building foundation. They must:

Be Trustworthy
Behave Ethically Understand Buyer Behavior

Possess Excellent Communication Skills

The Sales Process: Selling Strategy

In order to be successful in todays global business environment, salespeople must also think and act strategically. The must develop strategies for:
Each Sales Call

Each Customer Their Sales Territories

Each strategy is related to the other

The Sales Process

Initiating Customer Relationships

Developing Customer Relationships

Enhancing Customer Relationships

Sales Prospecting Presentation Delivery Earning Preapproach Customer Commitment Adding Value through Follow-up, Presentation Planning Self-leadership, and Teamwork Approaching the Customer

Determining the Role of Personal Selling

What information must be exchanged between firm and potential customer?

What are the alternative ways to carry out these communications objectives?

How effective is each alternative in carrying out the needed exchange?

How cost effective is each alternative?

If Sales Force is a Major Part of IMC

Product or Service Price Channels Advertising

Complex goods or services

Major purchase decisions

Final price negotiable Price provides adequate margin

Channel short and direct Training needed by intermediaries Selling needed to push product through Intermediaries can provide personal selling

Media do not provide an effective link

Information cannot be provided by media Sparse market reduces advertising economies

Personal demonstration required

Stages of Personal Selling Evolution

Provider
Selling activity limited to order-taking and delivery

Persuader

Attempting to persuade customer to buy

Seeking out buyers perceived to have a need Buyers identify problems to be met by goods Seller determines buyer needs and fulfills them

Prospector

Problem-solver

Procreator

New Roles for Salespeople

Surveying Mapmaking

Fire Starting

Guiding

Customer Relationship Management

Relationship Marketing: The organizations effort to develop a long-term, costeffective link with individual customers for mutual benefit.

SAP Software Assists CRM

Keeping a Customer

Types of Sales Jobs

Assesses situation, determines needs
Creative Selling

Presents capability of satisfying needs

Gets order This role is much more casual

Order Taking

Often involves straight rebuying

Essentially a support role

Missionary Sales

May not actually take the order

Personal Selling Responsibilities

Locating prospective customers

Determining customers needs and wants Recommending a way to satisfy them Demonstrating product capabilities Closing the sale Following up and servicing the account

Sales People Have Many Duties

Test Your Knowledge

With the evolution of personal selling, an individual salesperson's job requirements may include:
A) Determining customers' needs and wants

B) Demonstrating the capabilities of the firm

C) Following up and servicing the account D) Locating prospective customers

E) All of the above

Traits of Effective Salespeople

1. Ego strength: a healthy self-esteem that allows one to bounce back from rejection. 2. Sense of urgency: wanting to get it done now. 3. Ego drive: a combination of competitiveness and self esteem. 4. Assertiveness: the ability to be firm, lead the sales process, and get ones point across confidently.

5. Risk-taking: willing to innovate and take a chance.

Traits of Effective Salespeople

6. Sociable: outgoing, friendly, talkative, and interested in others.

7. Abstract reasoning: ability to understand concepts and ideas. 8. Skepticism: a slight lack of trust and suspicion of others. 9. Creativity: the ability to think differently. 10. Empathy: the ability to place oneself in someone elses shoes.

Traits Buyers Like and Dislike

Desirable Traits Objectionable Traits 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Unprepared Uninformed Aggressive Undependable No follow through Presumptive Walk-ins Gabbers Problem avoiders No personal respect

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Knowledgeable Empathizes Well organized Prompt Follows through Has solutions Punctual Hard working Energetic Honest

Pros and Cons of Personal Selling

Advantages Disadvantages

Two-way interaction with prospect Message can be tailored to recipient Prospect isn't likely to be distracted

Messages may be inconsistent

Possible management-sales force conflict Cost is often extremely high Reach may be very limited Potential ethical problems

Seller involved in purchase decision Source of research information

Personal Selling + Other Tools

Advertising

Public Relations

Personal Selling

Direct Marketing

Sales Promotion

The Internet

Personal Selling + Advertising

Test Your Knowledge

By servicing an account and by cooperating and empathizing with clients, salespersons are engaging in _____ activities on behalf of their firm. A) Sales promotion

B) Advertising
C) Public relations D) Direct marketing

E) Telemarketing

Personal Selling + PR
Rep is often best source of PR

Representative of the organization

Involved in community

Creates goodwill

Personal Selling + Direct Marketing

Personal Selling + Sales Promotion

Reseller

Sales Promotion Targets

Consumer

Sales Force

Personal Selling + the Internet

Evaluating the Personal Selling Effort

Characteristics Affecting Performance

The courage to change
A clear link between company culture & value to sales strategies

The strength of the field manager

Rigorous management processes that drive performance

Consistent training that leads to consistent execution

Evaluating Personal Selling

Provides good marketing intelligence?

Are follow-up activities conducted well?

Are promo programs being implemented?

Are communications objectives met?

Test Your Knowledge

The ability of the sales force to feed back information regarding competitive programs and customer reactions contributes to the promotional program by fulfilling which evaluative criterion?

A) Attainment of communications objectives

B) Program implementation C) Follow-up activities

D) Providing market intelligence

E) None of the above

Quantitative Measures of Sales Results

Orders Sales Volume Margins
Quantitative Measures

Customer Accounts Sales Calls Selling Expenses Customer Service

Qualitative Measures of Sales Results

Selling Skills

Sales Related Activities