professional selling
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Overview of Personal Selling
Personal Selling
Learning Objectives
1. Describe the evolution of personal selling from ancient times to the modern era.
2. Explain the contributions of personal selling to society, business firms, and customers.
3. Distinguish between transaction-focused traditional selling and trust-based relationship selling.
Learning Objectives
4. Discuss five alternative approaches to
selling.
5. Describe the three primary roles fulfilled
by consultative salespeople
6. Understand the sales process as a
series of interrelated steps.
Setting the Stage
1. What does Carl Strenger, a UPS Vice
President, mean by a “consultative
discussion” with the customer?
2. When teaming up with UPS Capital
sales personnel, what is the focus of the
overall sales strategy?
UPS Builds Trust and Long-Term
Customer Relationships
Personal Selling – Defined
Personal selling refers to personal
communication with a an audience
through paid personnel of an
organization or its agents in
such a way that the audience
perceives the communicator’s
organization as being the source
of the message.
Industrial
Revolution
Post-Industrial
Revolution
War and
Depression
Modern
Era
1800s 1900s 2000s
Evolution 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 21st century, selling continues to develop,
becoming more professional and more relational
Contributions of Personal Selling:
Salespeople and Society
• Salespeople help stimulate the economy
• Salespeople help with the diffusion of innovation
Contributions of Personal Selling:
Salespeople and the Employing Firm
• Salespeople generate revenue
• Salespeople provide market
research and customer feedback
• Salespeople become future
leaders in the organization
Contributions of Personal Selling:
Salespeople and the Customer
• Salespeople provide solutions to
problems
• Salespeople provide expertise and
serve as information resources
• Salespeople serve as advocates for
the customer when dealing with the
selling organization
Transaction-Focused vs.
Relationship Focused
Transaction-Focused Relationship-Focused
• Short term thinking
• Making the sale has
priority over most
other considerations
• Interaction between
buyer and seller is
competitive
• Salesperson is self-
interest oriented
• Long term thinking
• Developing the
relationship takes
priority over getting
the sale
• Interaction between
buyer and seller is
collaborative.
• Salesperson is
customer-oriented
Classification of
Personal Selling Approaches
• Stimulus Response Selling
• Mental States Selling
• Need Satisfaction Selling
• Problem Solving Selling
Stimulus Response Selling
Salesperson
Provides
Stimuli
Buyer
Responses
Sought
Continue
Process until
Purchase
Decision
Mental States Selling
Attention Interest Conviction Desire Action
Need Satisfaction Selling
Uncover and
Confirm
Buyer Needs
Present
Offering to
Satisfy
Buyer Needs
Continue
Selling until
Purchase
Decision
Problem Solving Selling
Define
Problem
Generate
Alternative
Solutions
Continue
Selling
until
Purchase
Decision
Evaluate
Alternative
Solutions
Long-term Ally
Consultative Selling
The process of helping
customers reach their
strategic goals by using
the products, service,
and expertise of the
selling organization.
Strategic Orchestrator
Business Consultant
The Sales Process: An Overview
Developing
Customer
Relationships
Initiating
Customer
Relationships
Enhancing
Customer
Relationships
Selling
Foundations
Selling
Strategy
The Sales Process: Selling Foundations
In order to be successful in today’s global business
environment, salespeople must have a solid
relationship building foundation. They must:
Possess Excellent Communication Skills
Understand Buyer Behavior
Behave Ethically
Be Trustworthy
The Sales Process: Selling Strategy
In order to be successful in today’s global business
environment, salespeople must also think and act
strategically. The must develop strategies for:
Their Sales Territories
Each Sales Call
Each Customer
Each strategy is
related to the other
Adding Value through Follow-up,
Self-leadership, and Teamwork
The Sales Process
• Prospecting
• Preapproach
• Presentation Planning
• Approaching the Customer
• Sales Presentation Delivery
• Earning Customer Commitment
Developing
Customer
Relationships
Initiating
Customer
Relationships
Enhancing
Customer
Relationships
Determining the Role of Personal
Selling
How cost effective is each alternative?
How effective is each alternative in carrying out the needed exchange?
What are the alternative ways to carry out these communications objectives?
What information must be exchanged between firm and potential customer?
If Sales Force is a Major Part of IMC
Price
• Final price
negotiable
• Price provides
adequate
margin
Product or
Service
• Complex
goods or
services
• Major
purchase
decisions
• Personal
demonstration
required
Channels
• Channel short
and direct
• Training
needed by
intermediaries
• Selling needed
to push product
through
• Intermediaries
can provide
personal selling
Advertising
• Media do not
provide an
effective link
• Information
cannot be
provided by
media
• Sparse market
reduces
advertising
economies
Stages of Personal Selling Evolution
Selling activity limited to
order-taking and delivery Provider
Attempting to persuade customer to
buy Persuader
Seeking out buyers perceived to
have a need Prospector
Buyers identify problems to be
met by goods Problem-solver
Seller determines buyer needs
and fulfills them Procreator
New Roles for Salespeople
Surveying Mapmaking
Guiding Fire Starting
Customer Relationship Management
Relationship Marketing:
The organization’s effort to
develop a long-term, cost-
effective link with individual
customers for mutual benefit.
Keeping a Customer
Types of Sales Jobs
This role is much more casual
Often involves straight rebuying
Order Taking
Essentially a support role
May not actually take the order
Missionary Sales
Assesses situation, determines needs
Gets order
Creative Selling Presents capability of satisfying needs
Personal Selling Responsibilities
Following up and servicing the account
Closing the sale
Demonstrating product capabilities
Recommending a way to satisfy them
Determining customers’ needs and wants
Locating prospective customers
Sales People Have Many Duties
Test Your Knowledge
With the evolution of personal selling, an individual
salesperson's job requirements may include:
A) Determining customers' needs and wants
B) Demonstrating the capabilities of the firm
C) Following up and servicing the account
D) Locating prospective customers
E) All of the above
Traits of Effective Salespeople
1. Ego strength: a healthy self-esteem that allows
one to bounce back from rejection.
2. Sense of urgency: wanting to get it done now.
3. Ego drive: a combination of competitiveness and
self esteem.
4. Assertiveness: the ability to be firm, lead the
sales process, and get one’s point across
confidently.
5. Risk-taking: willing to innovate and take a
chance.
Traits of Effective Salespeople
6. Sociable: outgoing, friendly, talkative, and
interested in others.
7. Abstract reasoning: ability to understand
concepts and ideas.
8. Skepticism: a slight lack of trust and suspicion of
others.
9. Creativity: the ability to think differently.
10. Empathy: the ability to place oneself in someone
else’s shoes.
Traits Buyers Like and Dislike
Desirable Traits Objectionable Traits
1. Knowledgeable
2. Empathizes
3. Well organized
4. Prompt
5. Follows through
6. Has solutions
7. Punctual
8. Hard working
9. Energetic
10. Honest
1. Unprepared
2. Uninformed
3. Aggressive
4. Undependable
5. No follow through
6. Presumptive
7. Walk-ins
8. Gabbers
9. Problem avoiders
10. No personal respect
Pros and Cons of Personal Selling
Reach may be
very limited
Message can be
tailored to recipient
Two-way interaction
with prospect
Prospect isn't likely
to be distracted
Cost is often
extremely high
Possible management-sales
force conflict
Messages may be inconsistent
Seller involved in purchase
decision
Source of research information Potential ethical problems
Advantages Disadvantages
Personal Selling + Other Tools
Advertising
Public Relations
Direct Marketing
Sales Promotion
The Internet
Personal
Selling
Personal Selling + Advertising
Test Your Knowledge
By servicing an account and by cooperating and empathizing
with clients, salespersons are engaging in _____ activities on
behalf of their firm.
A) Sales promotion
B) Advertising
C) Public relations
D) Direct marketing
E) Telemarketing
Personal Selling + PR
Creates goodwill
Involved in community
Representative of the organization
Rep is often best source of PR
Personal Selling + Direct Marketing
Personal Selling + Sales Promotion
Reseller
Consumer
Sales Force
Sales
Promotion
Targets
Evaluating the Personal Selling Effort
Characteristics Affecting Performance
The courage to
change
Consistent
training that
leads to
consistent
execution
A clear link
between
company
culture & value
to sales
strategies
Rigorous
management
processes that
drive
performance
The strength of
the field
manager
Evaluating Personal Selling
Are communications
objectives met?
Provides good marketing
intelligence?
Are follow-up activities
conducted well?
Are promo programs being
implemented?
Test Your Knowledge
The ability of the sales force to feed back information
regarding competitive programs and customer reactions
contributes to the promotional program by fulfilling which
evaluative criterion?
A) Attainment of communications objectives
B) Program implementation
C) Follow-up activities
D) Providing market intelligence
E) None of the above
Quantitative Measures of Sales Results
Orders
Sales Volume
Margins
Customer Accounts
Sales Calls
Selling Expenses
Customer Service
Quantitative
Measures
Qualitative Measures of Sales Results
Selling Skills
Sales Related Activities