student selling ch. 1
TRANSCRIPT
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Personal Selling and
the Marketing Concept
Selling Today10
th
Edition
C
H A P T E R
Manning and Reece
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Discussion Questions
• When you hear the term personal
selling, what words, images, ideas, orother associations come to mind?
• Which of these associations are
negative and which are positive?
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Definition 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 Product
Includes:
• Information
• Services
• Ideas
• Issues
• “Hard goods”
What is the main product thefollowing companies offer?
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Strategic/Consultative
Selling Model
FIGURE 1.1
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Personal Selling in the Information Age
• An evolution from the ________ economyto 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 Emphasis
Industrial economy
• Advances occur intransportation and
manufacturing• Strategic resources are
capital and naturalresources
• Products and factoriesdefine the business
• Sales success meansmeeting sales quotas
Information economy
• Advances occur ininformation technology
• Strategic resource isinformation
• Business is defined bycustomer relations
• Sales success dependson adding value
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Personal Selling as an Extensionof the Marketing Concept
Move from a product orientation (peddling)to a customer orientation (partnering)
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The Marketing Mix
FIGURE 1.3
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Important 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 Selling
• Marketing era begins (early 1950s)
• Salespeople as a source of strategic information onproduct/market/service
• Consultative selling era (late 1960s to early1970s)
• Mass markets break into target markets
• Emphasis on need identification
• Information sharing and negotiation replacemanipulation
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Evolution 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 customervalue
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Evolution of Consultative Selling
Transactional selling• Process that serves the ______ primarily interested
in price and convenience
Consultative selling• Process that developed from
the ________ concept,emphasizing needidentification
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Evolution of Consultative Selling
Features 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, problemsolving, and ___________ rather thanmanipulation
• Emphasis on ________ after the sale
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Evolution 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 Tactics
• Tactics
• Specific techniques,practices, and
methods used incustomer interaction
• Strategy
• Carefully conceived plan needed toaccomplish ________ objectives
• A prerequisite to tactical success
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Strategy vs. Tactics Exercise
Use a fact sheet comparing yourproduct to the competition
Analyze the features of yourleading competitors
Use specific questions to diagnose
needs
Analyze a territory to determinethose with specific needs
Strategy Tactic
Identify the following:
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SellingModel
1-20FIGURE 1.5
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Develop a Personal
Selling Philosophy
Adopt the marketing concept
Value personal selling
Assume the role of a problemsolver/partner
Step
1:
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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
Become a product expert
Sell benefits, not features
Configure value-added solutions
Step
3:
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Develop a Customer
Strategy
Understand the buying process
Understand buyer behavior
Develop prospect base
Step
4:
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Develop a Presentation
Strategy
Prepare objectives
Develop a presentation plan
Provide outstanding service
Step
5:
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Interrelationship of Basic
Strategies
FIGURE 1.7
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Evolution of Partnering
• Buzzword of 1990s, became businessreality in 2000s
• “Strategically developed, long-term
____________ that solves the customer’sproblems”
• Relationship selling relies on a _________
approach to each client• Enhanced with high ethical standards and
CRM
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Value Creation
• Value-added selling = creativeimprovements that enhance customerexperience
• The information economy rewardssalespeople who add value at each step
• When customer is not aware of valueadded by salespeople, the focus may shiftto __________