CHAPTER Selling 1 Personal

Today
INTRODUCTION AND OVERVIEW

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Learning Objectives

Describe the contributions of personal selling to the information economy Define personal selling and discuss personal selling as an extension of the marketing concept Describe the evolution of consultative selling from the marketing era to the present
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Learning Objectives (continued)

Define strategic selling and name the four broad areas in the Strategic/Consultative Selling Model Define relationship selling and name the three things that enhance it Describe how value-added selling strategies enhance personal selling

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Personal Selling in the Information Age

Major Developments (1960-2020) 1) Major advances in information technology 2) Information is a strategic resource 3) Business is defined by customer relationships 4) Sales success depends on creating and adding value for the customer
INCREASES IN RELATIONSHIP SELLING AND RELATIONSHIP MARKETING

Industrial Economy 1860-1960

Information Economy 1960-2020

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Definition
Personal

Selling involves person-to-person communication with a customer, or prospect

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Personal Selling (continued)

It

is a process of developing relationships, discovering needs, matching appropriate products to these needs, and communicating benefits through informing, persuading, and reminding
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Strategic/Consultative Selling Model

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Value Personal Selling

Large investments in personal selling are made due to increased:
Sophistication

and complexity of

products, Competition, local and global, and Customer demand for value.
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Marketing Concept
Three aspects of the marketing concept are:
1)

2)

3)

Co-ordination of marketing activities throughout the company, Focused to create customer satisfaction, While achieving the firms goals.
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Evolution of Personal Selling

Table 1.1

Evolution of Personal Selling (1950 to Present)

Marketing Era Organizations determine needs and wants of target markets and adapt themselves to delivering desired satisfaction. Product orientation is replaced by a customer orientation.
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Middle 1950s-1960s

Selling Emphasis:
More

organizations recognize that the salesperson is in a position to collect product, market, and service information regarding the buyers needs.

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Evolution of Personal Selling (continued)

Table 1.1

Evolution of Personal Selling (1950 to Present)

Consultative Selling Era Late 1960s-1970s Salespeople are becoming diagnosticians of customers needs as well as consultants offering wellconsidered recommendations. Mass markets are breaking into target markets.
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Selling Emphasis:
Buyer

needs are identified through two-way communication

Information-giving

and negotiation tactics replace manipulation.

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Consultative Selling
Extension

of the marketing concept Looks at a customer as a person to be served

Need Discovery Selection of Product
NeedSatisfaction Presentation

Servicing the sale

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Evolution of Personal Selling (continued)

Table 1.1

Evolution of Personal Selling (1950 to Present)

Strategic Selling Era The evolution of a more complex selling environment and greater emphasis on market niches creates the need for greater structure and more emphasis on planning. 1980s Selling Emphasis:
Strategy

is given as much attention as selling tactics.

Product

positioning is given more attention.

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A Strategic Market Plan

Outlines

the methods and resources required to achieve an organizations goals within a specific target market, taking into consideration all the major functional areas of the business that must be co-ordinated, such as production, marketing, finance, and human resource management
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Evolution of Personal Selling (continued)

Table 1.1

Evolution of Personal Selling (1950 to Present)

Relationship Selling Era 1990s-present Salespeople are encouraged to think of everything they say or do in the context of their long-term, highquality partnership with individual customers. Sales force automation provides specific customer information. Selling Emphasis:
Customer

supplants the product as the driving force in sales.

Greater

emphasis is placed on strategies that create customer value.

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Tactics vs. Strategies

Tactics

are techniques, practices, or methods salespeople use during face-toface interactions with customers Strategies are what salespeople employ as a result of precall planning to ensure that they call on the right people, at the right time, and with the right tactics to achieve positive results
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Relationship Selling
Salespeople

who have adopted relationship selling work hard to build and nourish long term partnerships They rely on a personal, customized approach to each customer
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Transactional Selling
A

sales process that most effectively matches the needs of the valueconscious buyer, who is primarily interested in price and convenience

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Duration of Relationships

Focus is on closer, longer-term relationships versus transactional selling High ethical standards required Sales automation helps
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Integrated Marketing Communications

At attempt to provide a consistent, persuasive message to customers regardless of their source

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Relationship Selling Enhancements

Relationship selling is enhanced by:

Ethical

Standards Sales Force Automation National Account Programs Customer Relationship Management

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Value Creation
New

selling imperative
value does the sales person offer

What

Value-added

selling does not replace consultative selling, or strategic selling, or relationship selling it encompasses them all
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Strategic/Consultative Selling Model

Marketing Concept: co-ordinate all activities

Creating customer value

to create satisfied customers and achieve company goals.

Figure 1.6

Strategic/Consultative Selling Model* Strategic Step Prescription

Adopt

Develop a Personal Selling Philosophy Value Personal Selling Marketing Concept a Problem Solver/Partner
Become

*Strategic/consultative selling evolved in response to increased competition, more complex products, increased emphasis on customer needs, and growing importance of long-term relationships.

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Strategic/Consultative Selling Model (continued)

Marketing Concept:

Relationship Strategy is a well-thought-out plan for establishing, building, and maintaining quality relationships
Figure 1.6

co-ordinate all activities to create satisfied customers and achieve company goals.

Strategic/Consultative Selling Model* Strategic Step Develop a Relationship Strategy Prescription

Project

positive, professional image communication-style flexing ethically

Practise Behave

*Strategic/consultative selling evolved in response to increased competition, more complex products, increased emphasis on customer needs, and growing importance of long-term relationships.
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Strategic/Consultative Selling Model (continued)

Product Strategy is a wellconceived plan that emphasizes extensive product knowledge, learning to select and communicate appropriate product benefits, and positioning the product
Figure 1.6

Marketing Concept: co-ordinate all activities to create satisfied customers and achieve company goals.

Strategic/Consultative Selling Model* Strategic Step Develop a Product Strategy Prescription

Become Sell

a product expert value-added solutions

specific benefits

Configure

*Strategic/consultative selling evolved in response to increased competition, more complex products, increased emphasis on customer needs, and growing importance of long-term relationships.
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Strategic/Consultative Selling Model (continued)

Customer Strategy is a carefully conceived plan that will result in maximum responsiveness to the customers needs
Figure 1.6

Marketing Concept: co-ordinate all activities to create satisfied customers and achieve company goals.

Strategic/Consultative Selling Model* Strategic Step Develop a Customer Strategy Prescription

Understand Discover Develop

customer behaviour

customer needs prospect base

*Strategic/consultative selling evolved in response to increased competition, more complex products, increased emphasis on customer needs, and growing importance of long-term relationships.
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Strategic/Consultative Selling Model (continued)

Presentation strategy is a wellconceived plan that includes establishing objectives; preparing a presentation to meet objectives and provide outstanding service
Figure 1.6

Marketing Concept: co-ordinate all activities to create satisfied customers and achieve company goals.

Strategic/Consultative Selling Model* Strategic Step Develop a Presentation Strategy Prescription

Understand Prepare Provide

buying process

objectives outstanding service

*Strategic/consultative selling evolved in response to increased competition, more complex products, increased emphasis on customer needs, and growing importance of long-term relationships.
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