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Personal Selling and the Marketing Concept

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1 Personal Selling and the Marketing Concept 1-* 1-* Definition of Personal Selling Person-to-person communication with a prospect Personal selling is a process of ... – PowerPoint PPT presentation

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Title: Personal Selling and the Marketing Concept


1
Personal Selling and the Marketing Concept
1
2
Definition 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

3
Broad Concept of Product
What is the main product the following companies
offer?
  • Includes
  • Information
  • Services
  • Ideas
  • Issues
  • Hard goods

4
Strategic/ConsultativeSelling Model
1.1
FIGURE
5
Personal 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

6
A 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

7
Personal Selling as an Extension of the Marketing
Concept
  • Move from a product orientation (peddling)
  • to a customer orientation (partnering)

8
Important 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

9
Evolution 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

10
Evolution 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

11
Evolution of Consultative Selling
  • Transactional selling
  • Process that serves thebuyer primarily
    interestedin price and convenience
  • Consultative selling
  • Process that developed fromthe marketing
    concept,emphasizing needidentification

12
Evolution 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

13
Evolution 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

14
Strategy 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

15
Strategy 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

?
?
?
16
Selling Model
1.5
FIGURE
1-20
17
Develop a Personal Selling Philosophy
1
Step
  • ? Adopt the marketing concept
  • ? Value personal selling
  • ? Assume the role of a problem solver/partner

18
Develop a Relationship Strategy
2
Step
  • ? Adopt a win-win philosophy
  • ? Project a professional image
  • ? Maintain high ethical standards

19
Develop a Product Strategy
3
Step
  • ? Become a product expert
  • ? Sell benefits, not features
  • ? Configure value-added solutions

20
Develop a Customer Strategy
4
Step
  • ? Understand the buying process
  • ? Understand buyer behavior
  • ? Develop prospect base

21
Develop a Presentation Strategy
5
Step
  • ? Prepare objectives
  • ? Develop a presentation plan
  • ? Provide outstanding service

22
Interrelationship of Basic Strategies
1.7
FIGURE
23
E-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

24
Evolution 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

25
Example ofPartneringCushman Wakefield
26
Strategic 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?

27
Value 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

28
Value-AddedSellingExample
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