Graduation WorkshopsGraduation Workshops for Business for Business Students in BUS 202Students in BUS 202

• Monday - February 9th 10:00 - 11:00am Monday - February 9th 10:00 - 11:00am • Tuesday - February 10th 3:30 - 4:30pmTuesday - February 10th 3:30 - 4:30pm• Wednesday - February 11th, 5:30 - 6:30pmWednesday - February 11th, 5:30 - 6:30pm• Thursday - February 12th, 12:30 - 1:30pmThursday - February 12th, 12:30 - 1:30pm• Monday - February 16th, 12:00 - 1:00pmMonday - February 16th, 12:00 - 1:00pm

Overview of Personal SellingOverview of Personal Selling

Module TwoModule Two

Customizing the Sales ApproachCustomizing the Sales ApproachAn Expert’s Viewpoint:An Expert’s Viewpoint:

Lisa Gregg, Director of Sales Development for American Express had Lisa Gregg, Director of Sales Development for American Express had this to say about customizing the sales approach: “Depending on the this to say about customizing the sales approach: “Depending on the application, the card may have hundreds of different benefits. A application, the card may have hundreds of different benefits. A supermarket manager has different needs than a client in the furniture supermarket manager has different needs than a client in the furniture business. We wanted to create a message to fit the specific needs of business. We wanted to create a message to fit the specific needs of our customers.” Sales representatives now input specific customer our customers.” Sales representatives now input specific customer information, then the database produces sales materials ranging from information, then the database produces sales materials ranging from industry data sheets to Power Point slides that can be used in the industry data sheets to Power Point slides that can be used in the sales presentation.sales presentation.

ActionAction

Customizing the Sales ApproachCustomizing the Sales ApproachAn Expert’s Viewpoint:An Expert’s Viewpoint:

Customers now receive sales presentations based on their Customers now receive sales presentations based on their unique needs, and American Express has greatly improved the unique needs, and American Express has greatly improved the efficiency of its sales organization.efficiency of its sales organization.

ResultResult

IndustrialIndustrialRevolutionRevolution

Post-IndustrialPost-IndustrialRevolutionRevolution

War andWar andDepressionDepression

ModernModernEraEra

1800s1800s 1900s1900s 2000s2000s

Evolution of Personal SellingEvolution of Personal Selling

Selling function became more

structured

Peddlers selling door to door . . . served as intermediaries

Business organizations employed salespeople

Selling function became more professional

As we begin the 21As we begin the 21stst century, selling continues to develop, century, selling continues to develop,becoming more professional and more relationalbecoming more professional and more relational

Continued Evolution of Personal SellingContinued Evolution of Personal Selling

ChangeChange Salesforce ResponseSalesforce Response

More emphasis More emphasis on improving on improving sales productivitysales productivity

Increased use of technology Increased use of technology Increased use of lower-cost-Increased use of lower-cost-

per-contact methodsper-contact methodsMore emphasis on profitability More emphasis on profitability

objectivesobjectives

Intensified Intensified competitioncompetition

More emphasis on developing More emphasis on developing and maintaining trust-based, and maintaining trust-based,

long-term customer long-term customer relationshipsrelationships

Continued Evolution of Personal SellingContinued Evolution of Personal Selling

ChangeChange Salesforce ResponseSalesforce Response

Demand for in-depth, Demand for in-depth, specialized knowledge specialized knowledge as an input to purchase as an input to purchase decisionsdecisions

Team sellingTeam selling

More emphasis on customer-More emphasis on customer-oriented sales trainingoriented sales training

Contributions of Personal Selling: Contributions of Personal Selling: Salespeople and SocietySalespeople and Society

• Salespeople helpSalespeople helpstimulate the economystimulate the economy

• Salespeople help withSalespeople help withthe diffusion of innovationthe diffusion of innovation

Contributions of Personal Selling: Contributions of Personal Selling: Salespeople and the Employing FirmSalespeople and the Employing Firm

• Salespeople generate revenueSalespeople generate revenue

• Salespeople provide market Salespeople provide market research and customer feedbackresearch and customer feedback

• Salespeople become future Salespeople become future leaders in the organizationleaders in the organization

Contributions of Personal Selling: Contributions of Personal Selling: Salespeople and the CustomerSalespeople and the Customer

• Salespeople provide solutions to Salespeople provide solutions to problemsproblems

• Salespeople provide expertise Salespeople provide expertise and serve as information and serve as information resourcesresources

• Salespeople serve as advocates Salespeople serve as advocates for the customer when dealing for the customer when dealing with the selling organizationwith the selling organization

Contributions of Personal Selling: Contributions of Personal Selling: Buyer PreferencesBuyer Preferences

• Are honestAre honest• Understand general business and economic Understand general business and economic

trends, as well as the buyer's businesstrends, as well as the buyer's business• Provide guidance throughout the sales processProvide guidance throughout the sales process• Help the buyer to solve problemsHelp the buyer to solve problems• Have a pleasant personality and a good Have a pleasant personality and a good

professional appearanceprofessional appearance• Coordinate all aspects of the product and service Coordinate all aspects of the product and service

to provide a total packageto provide a total package

Industrial buyers prefer to deal with salespeople who:

Classification of Classification of Personal Selling ApproachesPersonal Selling Approaches

• Stimulus ResponseStimulus Response• Mental StatesMental States• Need SatisfactionNeed Satisfaction• Problem SolvingProblem Solving• Consultative SellingConsultative Selling

Classification of Classification of Personal Selling ApproachesPersonal Selling Approaches

1.1. Stimulus Response Stimulus Response– The key idea is that various stimuli can The key idea is that various stimuli can

elicit predictable responses.elicit predictable responses.– An example of the stimulus response view An example of the stimulus response view

of selling would be continued affirmation.of selling would be continued affirmation.

“good choice, good choice”

Stimulus Response SellingStimulus Response Selling

Salesperson Salesperson Provides Provides

StimuliStimuli

BuyerBuyerResponsesResponses

SoughtSought

Continue Continue Process until Process until

Purchase Purchase DecisionDecision

Classification of Classification of Personal Selling ApproachesPersonal Selling Approaches

2.2. Mental States Mental States– Assumes the buying process is essentially Assumes the buying process is essentially

identical for most buyersidentical for most buyers– Buyers are led through certain mental statesBuyers are led through certain mental states– AIDAAIDA (attention, interest, desire, and action) (attention, interest, desire, and action)

is this practical?is this practical?

Mental States SellingMental States Selling

AttentionAttention InterestInterest ConvictionConviction DesireDesire ActionAction

Classification of Classification of Personal Selling ApproachesPersonal Selling Approaches

3.3. Need Satisfaction Need Satisfaction– Based on the notion that the customer is Based on the notion that the customer is

buying to satisfy a needbuying to satisfy a need– Salesperson uses questioning, probing Salesperson uses questioning, probing

tactic to uncover important buyer needstactic to uncover important buyer needs

Need Satisfaction SellingNeed Satisfaction Selling

Uncover and Uncover and Confirm Buyer Confirm Buyer

NeedsNeeds

Present Present Offering to Offering to

Satisfy Buyer Satisfy Buyer NeedsNeeds

Continue Continue Selling until Selling until Purchase Purchase DecisionDecision

Classification of Classification of Personal Selling ApproachesPersonal Selling Approaches

4.4. Problem Solving Problem Solving– An extension of An extension of need satisfactionneed satisfaction selling selling– Sometimes competitors’ offerings are Sometimes competitors’ offerings are

included as alternatives included as alternatives how would the how would the competitor’s offerings be referred to?competitor’s offerings be referred to?

Problem Solving SellingProblem Solving Selling

DefineDefineProblemProblem

GenerateGenerateAlternativeAlternativeSolutionsSolutions

ContinueContinueSellingSelling

untiluntilPurchasePurchaseDecisionDecision

EvaluateEvaluateAlternativeAlternativeSolutionsSolutions

extremely rational

Long-term AllyLong-term Ally

5.5. Consultative Selling Consultative Selling

Strategic OrchestratorStrategic Orchestrator

Business ConsultantBusiness Consultant

The process of helping The process of helping customers reach their customers reach their

strategic goals by using strategic goals by using the products, service, the products, service, and expertise of the and expertise of the selling organization.selling organization.

Not just meeting needs or solving problems

The Sales Process: An OverviewThe Sales Process: An OverviewSalespersonAttributes

Developing Developing Customer Customer

RelationshipsRelationships

Initiating Initiating Customer Customer

RelationshipsRelationships

Enhancing Enhancing Customer Customer

RelationshipsRelationships

Selling Selling FoundationsFoundations

Selling Selling StrategyStrategy

Trust, ethics, understanding customers, communication skills

The Sales Process: The Sales Process: Selling FoundationsSelling FoundationsSalesperson

Attributes

Possess Excellent Possess Excellent Communication SkillsCommunication Skills

Understand Buyer BehaviorUnderstand Buyer Behavior

Be Trustworthy and Be Trustworthy and Behave EthicallyBehave Ethically

In order to be successful in today’s global business In order to be successful in today’s global business environment, salespeople must have a solid relationship environment, salespeople must have a solid relationship building foundation. They must: building foundation. They must:

The Sales Process:The Sales Process:Selling StrategySelling Strategy

In order to be successful in today’s global business In order to be successful in today’s global business environment, salespeople must also think and act environment, salespeople must also think and act strategically. They must develop strategies for:strategically. They must develop strategies for:

Their Sales TerritoryTheir Sales Territory

Each Sales CallEach Sales Call

Each CustomerEach Customer

The Sales ProcessThe Sales ProcessSalespersonAttributes

• Prospecting• Pre-approach• Presentation Planning• Approaching the Customer

Developing Developing Customer Customer

RelationshipsRelationships

Initiating Initiating Customer Customer

RelationshipsRelationships

Enhancing Enhancing Customer Customer

RelationshipsRelationships

The Sales ProcessThe Sales ProcessSalespersonAttributes

• Sales Presentation Delivery • Earning Customer Commitment

Developing Developing Customer Customer

RelationshipsRelationships

Initiating Initiating Customer Customer

RelationshipsRelationships

Enhancing Enhancing Customer Customer

RelationshipsRelationships

Adding Value through Follow-up, Self-leadership, and Teamwork

The Sales ProcessThe Sales ProcessSalespersonAttributes

Developing Developing Customer Customer

RelationshipsRelationships

Initiating Initiating Customer Customer

RelationshipsRelationships

Enhancing Enhancing Customer Customer

RelationshipsRelationships

Appendix on CareersAppendix on Careers

• Job securityJob security

• AdvancementAdvancement

• FeedbackFeedback

• PrestigePrestige

• VarietyVariety

• IndependenceIndependence

• Compensation Compensation

From the WSJ (Sept 2003)From the WSJ (Sept 2003)