Personal Selling and The Marketing Concept

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Personal Selling and The Marketing Concept

• Chapter 1

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Selling- What does it take to succeed?
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Success

• Service to Others

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sUccess

• Use the Golden Rule

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suCcess

• Communication Ability

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sucCess

• Characteristics for the Job

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succEss

• Excel at strategic thinking

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succeSs

• Sales Knowledge

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succesS

• Stamina for the challenge

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Relationship selling leads to success

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

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ABCS of relationship selling

• A Analyze the customers needs
• B present product Benefits
• C gain Commitment for the purchase
• S provide excellent Service to maintain and grow
  the relationship

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Personal Selling

• Person-to-person communication with a prospect
• Viewed as a process that adds value

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Personal Selling

• It is a process of
• Developing relationships
• Discovering needs
• Matching the appropriate products with these
  needs
• Communicating benefits through informing,
  reminding or persuading

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Product

• Encompasses information, services, ideas and
  issues.

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Personal Selling Philosophy

1. Adopt a marketing concept
2. Value personal selling
3. Become a problem solver and partner.

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Personal Selling in theAge of Information

• Industrial 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

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Personal Selling in theAge of Information

• Information Economy 1960- 2020
• Major advances occur in information technology
• Strategic resource is information
• Business is defined by customer relationships
• Sales success depends on adding value

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Personal Selling in theAge of Information

• There have been four major developments that have
  shaped the information economy
• Major advances in information technology
• Strategic resource is information
• Business is defined by customer relationships
• Sales success depends on adding value

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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

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Major Advances in Information Technology

• Computer use has changed for data crunching to
  connecting people
• The connections include
• People to people
• Machine to machine
• Product to service
• Organization to organization
• All of these in combination

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Strategic Resource is Information

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

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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.

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Business is Defined by Customer Relationships

• Customers 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

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Business is Defined by Customer Relationships

• You 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.

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Business is Defined by Customer Relationships

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

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Sales Success Depends on Adding Value

• Value-added selling
• A series of creative improvements within the
  sales process that enhance the customer
  experience.

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Sales Success Depends on Adding Value

• How can a salesperson add value?
• Developing quality relationships
• Carefully identifying the customers needs
• Configuring and presenting the best possible
  product solution

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Marketing Concept

• The 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

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Marketing Concept Yields Marketing Mix

• Once the marketing concept becomes a part of a
  firms 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.

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The Marketing Mix

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

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The Marketing Mix

• The marketing mix can be organized into a group
  of four variables
• Product
• Price
• Place
• Promotion
• Advertising, public relations, sales promotion
  and personal selling

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Important Role of Personal Selling

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

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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

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Important Role of PersonalSelling

• Personal selling has evolved through three
  distinct developmental periods
• Consultative selling era
• Strategic selling era
• Partnering era

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Consultative Selling Era

• Late 1960s to early 1970s
• This 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

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Consultative Selling Era

• 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.

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• 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.

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• 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

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Consultative Selling Era

• Major features of the Consultative Selling Era
  include
• The customer is seen as a person to be served,
  not a prospect to be sold
• The consultative salesperson, unlike the peddler
  of and earlier era, does not try to overpower the
  customer with a high-pressure sales presentation

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Consultative Selling Era

• Consultative selling emphasizes information
  giving, problem solving and negotiation instead
  of manipulation
• Consultative selling emphasizes service after the
  sale

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Strategic Selling Era

• Early1980s
• Strategy is given as much attention as selling
  tactics
• Product positioning is given more attention
• During this period, the selling environment
  became more complex

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Strategic Selling Era

• 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.

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Strategic Selling Era

• Strategic planning
• The managerial process that matches the firms
  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.

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Strategic Selling Era

• 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.

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Strategic Selling Era

• 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 customers needs.

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Strategic/Consultative Selling Model

• The strategic/consultative selling model includes
  five steps
• Develop a personal selling philosophy
• Develop a relationship strategy
• Develop a product strategy
• Develop a customer strategy
• Develop a presentation strategy

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Develop a Relationship Strategy

• Relationship 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 image
• Maintain high ethical standards

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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.

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Develop a Customer Strategy

• Customer strategy is a carefully conceived plan
  that results in maximum responsiveness to the
  customers needs.
• The salesperson should develop an understanding
  of the customers buying process, understand
  buyer behavior, and develop a prospect base.

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Develop a Presentation Strategy

• Presentation 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
  ones commitment to provide outstanding customer
  service.
• As a salesperson, you want to prepare objectives,
  develop presentation plan, and provide
  outstanding service.

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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 companys business.

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Customer Relationship Management

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

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Complex Sale

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

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Partnering Era

• 1990 to present
• Partnering is the result of several economic
  forces
• When 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

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Partnering Era

• Todays 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.

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Partnering Era

• Partnering A strategically developed, long-term
  relationship that solves the customers problems.
  
• A successful long-term partnership is achieved
  when the salesperson is able to skillfully apply
  four major strategies

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Strategic AlliancesThe 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

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Strategic AlliancesThe Highest Form of
Partnering

• Building an alliance
• 1. Learn as much as possible about the proposed
  partner
• Alliances 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

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PartneringHigh Ethical Standards

• Poor ethical decisions can weaken or destroy
  partnerships
• The best way to ensure repeat business is to deal
  honestly and fairly with every customer

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