Title: Personal Selling and the Marketing Concept
1Personal Selling and the Marketing Concept
1
2Definition 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
3Broad Concept of Product
What is the main product the following companies
offer?
- Includes
- Information
- Services
- Ideas
- Issues
- Hard goods
4Strategic/ConsultativeSelling Model
1.1
FIGURE
5Personal Selling in the Information 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
6A Shift in Emphasis
- Industrial economy
- Advances occur in transportation and
manufacturing - Strategic resources are capital and natural
resources - Products and factories define the business
- Sales success means meeting sales quotas
- Information economy
- Advances occur in information technology
- Strategic resource is information
- Business is defined by customer relations
- Sales success depends on adding value
7Personal Selling as an Extension of the Marketing
Concept
- Move from a product orientation (peddling)
- to a customer orientation (partnering)
8Important Role of Personal Selling
- Often the major promotional method
- Firms invest in personal selling
- Personal selling has evolved because
- Products and services are more complex
- Competition has greatly increased
- Customer demand for quality, value, and service
has risen sharply
9Evolution of Personal Selling
- Marketing era begins (early 1950s)
- Salespeople as a source of strategic information
on product/market/service - Consultative selling era (late 1960s to early
1970s) - Mass markets break into target markets
- Emphasis on need identification
- Information sharing and negotiation replace
manipulation
10Evolution of Personal Selling
- 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
11Evolution of Consultative Selling
- Transactional selling
- Process that serves thebuyer primarily
interestedin price and convenience - Consultative selling
- Process that developed fromthe marketing
concept,emphasizing needidentification
12Evolution of Consultative Selling
- Features of consultative selling include
- Customer is a person to be served, not a prospect
to be sold - Two-way communication identifies (diagnoses)
customers needs no high-pressure sales
presentation - Emphasis on information giving, problem solving,
and negotiation rather than manipulation - Emphasis on service after the sale
13Evolution 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
14Strategy and Tactics
- Tactics
- Specific techniques,practices, and methods used
incustomer interaction - Strategy
- Carefully conceived plan needed to accomplish
sales objectives - A prerequisite to tactical success
15Strategy vs. Tactics Exercise
Identify the following
?
Strategy
Tactic
- Use a fact sheet comparing your product to the
competition - Analyze the features of your leading competitors
- Use specific questions to diagnose needs
- Analyze a territory to determine those with
specific needs
?
?
?
16Selling Model
1.5
FIGURE
1-20
17Develop a Personal Selling Philosophy
1
Step
- ? Adopt the marketing concept
- ? Value personal selling
- ? Assume the role of a problem solver/partner
18Develop a Relationship Strategy
2
Step
- ? Adopt a win-win philosophy
- ? Project a professional image
- ? Maintain high ethical standards
19Develop a Product Strategy
3
Step
- ? Become a product expert
- ? Sell benefits, not features
- ? Configure value-added solutions
20Develop a Customer Strategy
4
Step
- ? Understand the buying process
- ? Understand buyer behavior
- ? Develop prospect base
21Develop a Presentation Strategy
5
Step
- ? Prepare objectives
- ? Develop a presentation plan
- ? Provide outstanding service
22Interrelationship of Basic Strategies
1.7
FIGURE
23E-Commerce and the Complex Sale
- Electronic business
- Complex sales involve several forms of
- information technology support, including
- Electronic product catalogs
- Contact management systems
- PowerPoint and Excel
- Internet applications
- Electronic commerce
24Evolution of Partnering
- Buzzword of 1990s, became business reality in
2000s - Strategically developed, long-term relationship
that solves the customers problems - Relationship selling relies on a customized
approach to each client - Enhanced with high ethical standards and CRM
25Example ofPartneringCushman Wakefield
26Strategic 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 - Can you cite some current examples of strategic
alliances?
27Value 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
28Value-AddedSellingExample