Download Evolution of Consultative Selling

CHAPTER
1
Personal Selling
and the Marketing
Concept
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
1-1
Learning Objectives
• Define personal selling and describe the
three prescriptions of a personal selling
philosophy
• Describe contributions of personal selling to
the information economy
• Discuss personal selling as an extension of
the marketing concept
• Describe the evolution of consultative selling
from the marketing era to the present
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
1-2
Learning Objectives
• Define strategic selling and name four
broad strategic areas of the
Strategic/Consultative Selling Model
• Describe evolution of partnering and the
nature of a strategic selling alliance
• Explain how value-added strategies
enhance personal selling
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
1-3
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
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1-4
Philosophy of Personal Selling
• A strategic resource is information
• Salespeople are the eyes/ears of the
marketplace
• Salespeople can collect wide range of
competitive intelligence
• Business is defined by customer
relationships
• Sales success depends on
adding value
Michael Hammer, consultant and author of The Agenda,
says, “The real new economy is the customer economy.”
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1-5
A Shift in Emphasis
FIGURE
1.2
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1-6
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
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1-7
Value-Added Selling
A series of creative improvements
in the sales process that enhances
the customer experience.
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1-8
The Marketing Concept
• A principle that holds that achieving
organizational goals depends on:
• Knowing the needs and wants of target
markets
• Delivering the desired product
• Paths to sales and profits are:
• Customer focus
• Value
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1-9
The Marketing Mix
FIGURE
1.3
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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 sophisticated
and complex
• Competition has greatly increased
• Customer demand for quality, value, and
service has risen sharply
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1-11
Evolution of Consultative Selling
• Consultative selling era (late 1960s to
early 1970s)
• Mass markets break into target markets
• Emphasis on need identification
• Information sharing and negotiation replace
manipulation
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1-12
Evolution of Consultative Selling
Transactional selling
• Process that serves the buyer primarily
interested in price and convenience
Consultative selling
• Process that developed from the marketing
concept, emphasizing need
identification
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1-13
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)
customer’s needs;
no high-pressure
sales presentation
• Emphasis on
information giving,
problem solving,
and negotiation
rather than
manipulation
• Emphasis on
service after the
sale
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Evolution of Strategic Selling
• A strategic market plan
• Outlines necessary methods and resources
• Considers areas to be coordinated
• Finance
• Production
• Personnel
• Marketing
• Influences the sale of products
• Serves as guide for strategic selling plan
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1-15
Evolution of Strategic Selling
• Tactics
• Specific techniques, practices, and methods
used in customer interaction
• Strategy
• Carefully conceived plan needed to
accomplish sales objectives
• A prerequisite to tactical success
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1-16
Evolution of Strategic 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
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1-17
FIGURE
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1.5
Develop a Relationship Strategy
 Adopt a win-win philosophy
 Project a professional image
 Maintain high ethical standards
“People don’t care how much you know until they
know how much you care.”
Harvey B. Mackay, founder of Mackay Envelope Corporation
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Develop a Product Strategy
 Become a product expert
 Sell benefits, not features
 Configure value-added solutions
“Diagnose before you prescribe.”
Stephen Covey, author of The 7 Habits of Highly Effective People
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Develop a Presentation Strategy
 Prepare objectives
 Develop a presentation plan
 Provide outstanding service
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1-21
Develop a Customer Strategy
 Understand the buying process
 Understand buyer behavior
 Develop prospect base
Patricia Seyold, best-selling author
of The Customer Revolution says,
“We are in the midst of a profound
revolution: the customer revolution.”
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1-22
Interrelationship of Basic
Strategies
FIGURE
1.7
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1-23
Evolution of Partnering
• Buzzword of 1990s, became business
reality in 2000s
• “Strategically developed, long-term
relationship that solves the customer’s
problems”
• Relationship selling relies on a customized
approach to each client
• Enhanced with high ethical standards and
Customer Relationship Management
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1-24
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
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Strategic Selling Alliances
FIGURE
1.7
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Example of Partnering:
Campbell Food Service, Inc.
See the
Website
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Example of Partnering:
Cushman &Wakefield
See the
Website
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Partnering is Enhanced with Customer
Relationship Management
See the
Website
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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
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Customer Value Model
FIGURE
1.8
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Value-Added Selling Example:
Wisconsin Milk Marketing Board
See the
Website
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1-32
Key Concept
Discussion Questions
• Define personal selling and describe the
three prescriptions of a personal selling
philosophy
• Describe the contributions of personal
selling to the information economy
• Discuss personal selling as an extension
of the marketing concept
• Describe the evolution of consultative
selling from the marketing era to the
present
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
1-33
1-33
Key Concept
Discussion Questions
• Define strategic selling and name the four
broad strategic areas in the
Strategic/Consultative Selling Model
• Describe the evolution of partnering and
the nature of a strategic selling alliance
• Explain how value-added selling strategies
enhance personal selling
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
1-34
1-34
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
1-35
1-35