Download Personal Selling and The Marketing Concept

Personal Selling and The
Marketing Concept
Chapter 1
Selling- What does it
take to succeed?
Success
Service to Others
sUccess
Use the Golden Rule
suCcess
Communication Ability
sucCess
Characteristics for the Job
succEss
Excel at strategic thinking
succeSs
Sales Knowledge
succesS
Stamina for the challenge
Relationship selling
leads to success
Relationship selling- professionally
providing information for customers
allowing them to make intelligent
purchases to achieve their long and shortterm objectives.
ABC’S of relationship
selling
A Analyze the customer’s needs
B present product Benefits
C gain Commitment for the purchase
S provide excellent Service to maintain and
grow the relationship
Personal Selling
Person-to-person communication with a
prospect
Viewed as a process that adds value
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
Product
Encompasses information, services, ideas
and issues.
Personal Selling
Philosophy
1. Adopt a marketing concept
2. Value personal selling
3. Become a problem solver and partner.
Personal Selling in the
Age 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
Personal Selling in the
Age 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
Personal Selling in the
Age of Information
 There have been four major
developments that have shaped the
information economy
1.
2.
3.
4.
Major advances in information technology
Strategic resource is information
Business is defined by customer relationships
Sales success depends on adding value
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
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
Strategic Resource is
Information
Advances in information technology have
increased the speed at which we acquire,
process and disseminate information
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.
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”
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.
Business is Defined by
Customer Relationships
Personal selling provides a
counterbalancing human response to the
impersonal nature of technology.
Sales Success Depends
on Adding Value
Value-added selling:
A series of creative improvements within the
sales process that enhance the customer
experience.
Sales Success Depends
on Adding Value
How can a salesperson add value?
Developing quality relationships
Carefully identifying the customer’s needs
Configuring and presenting the best possible
product solution
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
Marketing Concept
Yields Marketing Mix
Once the marketing concept becomes a
part of a firm’s 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.
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
The Marketing Mix
 The marketing mix can be organized into
a group of four variables:
1.
2.
3.
4.
Product
Price
Place
Promotion
–
Advertising, public relations, sales promotion and
personal selling
Important Role of
Personal Selling
Personal selling is often the major
promotional method used–whether
measured by people employed, by total
expenditures or by expenses as a
percentage of sales.
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
Important Role of
Personal
Selling
Personal selling has evolved through three
distinct developmental periods:
Consultative selling era
Strategic selling era
Partnering era
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 twoway communication
Information giving and negotiation tactics
replace manipulation
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.
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.
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
Consultative Selling Era
 Major features of the Consultative Selling
Era include:
1. The customer is seen as a person to be served,
not a prospect to be sold
2. The consultative salesperson, unlike the
peddler of and earlier era, does not try to
overpower the customer with a high-pressure
sales presentation
Consultative Selling Era
Consultative selling emphasizes information
giving, problem solving and negotiation
instead of manipulation
Consultative selling emphasizes service
after the sale
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
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.
Strategic Selling Era
Strategic planning:
The managerial process that matches the firm’s
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.
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.
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
customer’s needs.
Strategic/Consultative
Selling Model
 The strategic/consultative selling model
includes five steps:
1.
2.
3.
4.
5.
Develop
Develop
Develop
Develop
Develop
a
a
a
a
a
personal selling philosophy
relationship strategy
product strategy
customer strategy
presentation strategy
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
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.
Develop a Customer
Strategy
Customer strategy is a carefully conceived
plan that results in maximum
responsiveness to the customer’s needs.
The salesperson should develop an
understanding of the customer’s buying
process, understand buyer behavior, and
develop a prospect base.
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 one’s
commitment to provide outstanding
customer service.
As a salesperson, you want to prepare
objectives, develop presentation plan, and
provide outstanding service.
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 company’s business.
Customer Relationship
Management
Customer Relationship Management (CRM):
Building and maintaining strong customer
relationships by using a variety of
technologies (software) to enhance
customer responsiveness.
Complex Sale
A complex sale will almost always require
the use of several forms of information
technology to gather and distribute
information to customers.
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
Partnering Era
 Today’s 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.
Partnering Era
Partnering: A strategically developed, longterm relationship that solves the
customer’s problems.
A successful long-term partnership is
achieved when the salesperson is able to
skillfully apply four major strategies
Strategic Alliances–
The 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
Strategic Alliances–
The 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
Partnering–
High 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