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99THTH EDITION EDITION

CHAPTER 1CHAPTER 1PERSONAL SELLING PERSONAL SELLING AND THE MARKETING AND THE MARKETING CONCEPTCONCEPT

Manning and Reece

PART I

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LEARNING OBJECTIVES Describe contributions of personal selling to

information economy

Define personal selling—discuss as extension of marketing concept

Describe evolution of consulting selling

Define strategic selling and name four strategic areas of selling model

Describe evolution of partnering—discuss how it relates to quality improvement

Explain how value-added strategies enhance personal selling

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CHANGES IN SELLING WORLDWIDE

Scope of competitive selling environmentNecessary skills to sell intangiblesAdjustment to information age

See Table 1-1. 1-4

PERSONAL SELLING IN INFORMATION

AGE

INDUSTRIAL--1950sINDUSTRIAL--1950s

INFORMATION--PRESENTINFORMATION--PRESENT

Evolution from industrial to information economy

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EVOLUTION OF PERSONAL SELLING

MARKETING ERA 1950s CONSULTATIVE SELLING ERA 1960s-1970s STRATEGIC SELLING ERA 1980s PARTNERING ERA 1990s-Present

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SHIFT TO INFORMATION ECONOMY

Advances in transport and manufacturingStrategic resources are capital and natural resourcesProducts and factories define the businessSales success means meeting quotas

Advances in Advances in information information technologytechnologyStrategic resource is Strategic resource is informationinformation

Business defined by Business defined by customer relationscustomer relations

Sales success Sales success depends on adding depends on adding valuevalue

INDUSTRIAL INFORMATION

Figure 1.2 1-7

SELLING MODEL –STEP 1

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PERSONAL SELLING:DEFINITION

PERSON-TO-PERSON COMMUNICATION WITH PROSPECT

– DEVELOPING RELATIONSHIPS– DISCOVERING NEEDS– MATCHING PRODUCTS WITH NEEDS– COMMUNICATION OF BENEFITS– A PROCESS THAT ADDS VALUE

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BROAD CONCEPT OF PRODUCT

INCLUDES: ISSUES INFORMATION IDEAS SERVICES AS WELL AS “HARD GOODS”

EVEN TV NETWORKS REFER TO THEIR SHOWS AS “PRODUCT”

See Slide 15 for context. 1-10

DEVELOP PERSONAL SELLING PHILOSOPHY

ADOPT MARKETING CONCEPTADOPT MARKETING CONCEPT

VALUE PERSONAL SELLINGVALUE PERSONAL SELLING

BE PROBLEM SOLVER/PARTNERBE PROBLEM SOLVER/PARTNER

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PERSONAL SELLING EXTENSION

OF MARKETING CONCEPT

MOVING MOVING FROMFROM

PRODUCT PRODUCT TOTO

CUSTOMERCUSTOMER

ORIENTATION ORIENTATION

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PRODUCTPRODUCTPRODUCTPRODUCT

PLACEPLACEPLACEPLACE

PRICEPRICE

PROMOTIONPROMOTIONPROMOTIONPROMOTION

MARKETING’S FOURP’s-MIX

See Table 1-1 1-13

MARKETING AND CONSULTATIVE ERAS

MARKETING – Sales team as source of strategic Sales team as source of strategic

information on…product--market--information on…product--market--serviceservice

CONSULTATIVE– Emphasis on need identificationEmphasis on need identification– Transactional sellingTransactional selling– Information sharing & negotiation Information sharing & negotiation

replace manipulationreplace manipulation

See Table 1-1 1-14

STRATEGIC AND PARTNERING ERAS

STRATEGIC – Emphasis on strategic market plan Emphasis on strategic market plan – Tactics to achieve strategic planTactics to achieve strategic plan– Product positioning vital Product positioning vital

PARTNERING– Customer, not product, as driving Customer, not product, as driving

forceforce– Emphasis on strategies that create Emphasis on strategies that create

customer valuecustomer value

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A STRATEGIC MARKET PLAN

Outlines necessary methods and resources

Considers areas to be coordinated

Influences the sale of products Serves as guide for strategic selling plan

Production Marketing Production Marketing Finance PersonnelFinance Personnel

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STRATEGY AND TACTICS

STRATEGYSTRATEGY: : Carefully conceived plan required to Carefully conceived plan required to

meet sales objectivesmeet sales objectives

TACTICSTACTICS: : Specific techniques, practices, and Specific techniques, practices, and

methods used in customer interaction methods used in customer interaction

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APPLICATIONAPPLICATION

WHICH IS THE STRATEGY? WHICH WHICH IS THE STRATEGY? WHICH IS THE TACTIC?IS THE TACTIC?– Use a fact sheet comparing Use a fact sheet comparing

wondercell with all other batteries wondercell with all other batteries

– Analyze features of all leading Analyze features of all leading alkaline batteries alkaline batteries

TACTICTACTIC

STRATEGYSTRATEGY

Figure 1.5 1-18

SELLINSELLING G

MODELMODEL

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STEP 1 : DEVELOP PERSONAL SELLING PHILOSOPHY

ADOPT MARKETING CONCEPTADOPT MARKETING CONCEPT

VALUE PERSONAL SELLINGVALUE PERSONAL SELLING

BE PROBLEM SOLVER/PARTNERBE PROBLEM SOLVER/PARTNER

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STEP 2: DEVELOP RELATIONSHIP STRATEGY

ADOPT WIN-WIN APPROACHADOPT WIN-WIN APPROACH

PROJECT PROFESSIONAL IMAGEPROJECT PROFESSIONAL IMAGE

MAINTAIN HIGH ETHICAL STANDARDSMAINTAIN HIGH ETHICAL STANDARDS

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STEP 3: DEVELOP PRODUCT STRATEGY

BECOME PRODUCT BECOME PRODUCT EXPERTEXPERT

SELL BENEFITS, SELL BENEFITS, NOTNOT FEATURES FEATURES

CONFIGURE CONFIGURE VALUE-ADDEDVALUE-ADDED SOLUTIONS SOLUTIONS

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STEP 4: DEVELOP CUSTOMER STRATEGY

UNDERSTAND BUYER BEHAVIORUNDERSTAND BUYER BEHAVIOR

DISCOVER CUSTOMER NEEDSDISCOVER CUSTOMER NEEDS

DEVELOP PROSPECT BASEDEVELOP PROSPECT BASE

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STEP 5: DEVELOP PRESENTATION STRATEGY

PREPARE OBJECTIVESPREPARE OBJECTIVES

DEVELOP PRESENTATION PLANDEVELOP PRESENTATION PLAN

PROVIDE OUTSTANDING SERVICEPROVIDE OUTSTANDING SERVICE

Figure 1.7 1-24

INTERRELATIONSHIP OF BASIC STRATEGIES

See Chapters 5, 11, 15 for info tech applications.

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E-COMMERCE AND COMPLEX SALE

Complex sales involve several forms of information technology

support Tools include:– electronic product catalogselectronic product catalogs– contact management systemscontact management systems– Internet applicationsInternet applications– presentation packages like this onepresentation packages like this one

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EVOLUTION OF PARTNERING

Buzzword of 1990s, business reality in 2000s “Strategically developed long-term relationship that solves customer’s problems” Relationship selling relies on customized

approach to each client Enhanced with high ethical standards and sales automation

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CUSHMANN WAKEFIELD

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STRATEGIC ALLIANCES

Goal: to gain advantage by teaming with other company Can you cite some current examples of strategic alliances? Need to build key win-win situation

Last slide Chapter 1. 1-29

VALUE CREATION

Value = creative improvements enhancing customer experience Consumer economy rewards sales people who add value at each step When customer not aware of value

added by salespeople, focus may shift to price