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Personal Selling and the Marketing Concept

Selling TodaySelling Today10th Edition

CH

AP

TE

R Manning and Reece

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Discussion QuestionsDiscussion Questions

• When you hear the term personal selling, what words, images, ideas, or other associations come to mind?

• Which of these associations are negative and which are positive?

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Definition of Personal SellingDefinition 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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Broad Concept of ProductBroad Concept of Product

Includes:

• Information

• Services

• Ideas

• Issues

• “Hard goods”

What is the main product the following companies offer?

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Strategic/ConsultativeSelling Model

Strategic/ConsultativeSelling Model

FIGURE 1.1

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Personal Selling in the Information AgePersonal Selling in the Information Age

• An evolution from the ________ economy to the _____________ economy

• Began in the 1950s

• New emphasis is information exchange rather than producing goods

• Implications for ________ selling

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A Shift in EmphasisA 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

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Personal Selling as an Extension of the Marketing Concept

Personal Selling as an Extension of the Marketing Concept

Move from a product orientation (peddling)to a customer orientation (partnering)

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The Marketing MixThe Marketing Mix

FIGURE 1.3

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Important Role of Personal SellingImportant 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

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Evolution of Personal SellingEvolution 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

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Evolution of Personal SellingEvolution of Personal Selling

• Strategic selling era (early 1980s)

• Market niches require more planning

• Equal emphasis on _____ and ________

• 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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Evolution of Consultative SellingEvolution of Consultative Selling

Transactional selling• Process that serves the

______ primarily interestedin price and convenience

Consultative selling• Process that developed from

the ________ concept,emphasizing needidentification

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Evolution of Consultative SellingEvolution of Consultative SellingFeatures of consultative selling include:

• Customer is a person to be served, not a __________ to be sold

• Two-way communication identifies (diagnoses) __________ needs; no high-pressure sales presentation

• Emphasis on _______ giving, problem solving, and ___________ rather than manipulation

• Emphasis on ________ after the sale

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Evolution of Strategic SellingEvolution 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

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Strategy and TacticsStrategy and Tactics

• Tactics

• Specific techniques,practices, and methods used incustomer interaction

• Strategy

• Carefully conceived plan needed to accomplish ________ objectives

• A prerequisite to tactical success

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Strategy vs. Tactics ExerciseStrategy vs. Tactics Exercise

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

Strategy Tactic

Identify the following:

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Selling ModelSelling Model

1-20FIGURE 1.5

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Develop a Personal Selling PhilosophyDevelop a Personal Selling Philosophy

Adopt the marketing concept

Value personal selling

Assume the role of a problem solver/partner

Step 1:

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Develop a Relationship Strategy

Develop a Relationship Strategy

Adopt a win-win philosophy

Project a professional image

Maintain high ethical standards

Step 2:

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Develop a Product Strategy

Develop a Product Strategy

Become a product expert

Sell benefits, not features

Configure value-added solutions

Step 3:

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Develop a Customer Strategy

Develop a Customer Strategy

Understand the buying process

Understand buyer behavior

Develop prospect base

Step 4:

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Develop a Presentation Strategy

Develop a Presentation Strategy

Prepare objectives

Develop a presentation plan

Provide outstanding service

Step 5:

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Interrelationship of Basic Strategies

Interrelationship of Basic Strategies

FIGURE 1.7

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Evolution of PartneringEvolution of Partnering• Buzzword of 1990s, became business

reality in 2000s

• “Strategically developed, long-term ____________ that solves the customer’s problems”

• Relationship selling relies on a _________ approach to each client

• Enhanced with high ethical standards and CRM

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Value CreationValue 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 __________

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Value-AddedSellingExample

Value-AddedSellingExample