Selling Today CHAPTER 1 PERSONAL SELLING AND THE MARKETING CONCEPT 9TH EDITION Selling Today Manning and Reece CHAPTER 1 PERSONAL SELLING AND THE MARKETING CONCEPT PART I

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

CHANGES IN SELLING WORLDWIDE Scope of competitive selling environment Necessary skills to sell intangibles Adjustment to information age

PERSONAL SELLING IN INFORMATION AGE Evolution from industrial to information economy INDUSTRIAL--1950s INFORMATION--PRESENT See Table 1-1.

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

SHIFT TO INFORMATION ECONOMY INDUSTRIAL INFORMATION Advances in transport and manufacturing Strategic resources are capital and natural resources Products and factories define the business Sales success means meeting quotas Advances in information technology Strategic resource is information Business defined by customer relations Sales success depends on adding value

SELLING MODEL –STEP 1 Figure 1.2 Figure 1.2

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

BROAD CONCEPT OF PRODUCT INCLUDES: ISSUES INFORMATION IDEAS SERVICES AS WELL AS “HARD GOODS” EVEN TV NETWORKS REFER TO THEIR SHOWS AS “PRODUCT”

DEVELOP PERSONAL SELLING PHILOSOPHY ADOPT MARKETING CONCEPT VALUE PERSONAL SELLING BE PROBLEM SOLVER/PARTNER See Slide 15 for context.

PERSONAL SELLING EXTENSION OF MARKETING CONCEPT MOVING FROM PRODUCT TO CUSTOMER ORIENTATION

MARKETING’S FOUR P’s-MIX PRODUCT PLACE MARKETING’S FOUR P’s-MIX PRICE PROMOTION Animated.

MARKETING AND CONSULTATIVE ERAS Sales team as source of strategic information on…product--market--service CONSULTATIVE Emphasis on need identification Transactional selling Information sharing & negotiation replace manipulation See Table 1-1

STRATEGIC AND PARTNERING ERAS Emphasis on strategic market plan Tactics to achieve strategic plan Product positioning vital PARTNERING Customer, not product, as driving force Emphasis on strategies that create customer value See Table 1-1

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 Finance Personnel

STRATEGY AND TACTICS STRATEGY: TACTICS: Carefully conceived plan required to meet sales objectives TACTICS: Specific techniques, practices, and methods used in customer interaction

APPLICATION WHICH IS THE STRATEGY? WHICH IS THE TACTIC? Use a fact sheet comparing wondercell with all other batteries Analyze features of all leading alkaline batteries TACTIC Animated STRATEGY

SELLING MODEL STRATEGIC/CONSULTATIVE SELLING MODEL Figure 1.5 Figure 1.5

STEP 1 : DEVELOP PERSONAL SELLING PHILOSOPHY ADOPT MARKETING CONCEPT VALUE PERSONAL SELLING BE PROBLEM SOLVER/PARTNER

STEP 2: DEVELOP RELATIONSHIP STRATEGY ADOPT WIN-WIN APPROACH PROJECT PROFESSIONAL IMAGE MAINTAIN HIGH ETHICAL STANDARDS

STEP 3: DEVELOP PRODUCT STRATEGY BECOME PRODUCT EXPERT SELL BENEFITS, NOT FEATURES CONFIGURE VALUE-ADDED SOLUTIONS

STEP 4: DEVELOP CUSTOMER STRATEGY UNDERSTAND BUYER BEHAVIOR DISCOVER CUSTOMER NEEDS DEVELOP PROSPECT BASE

STEP 5: DEVELOP PRESENTATION STRATEGY PREPARE OBJECTIVES DEVELOP PRESENTATION PLAN PROVIDE OUTSTANDING SERVICE

INTERRELATIONSHIP OF BASIC STRATEGIES Figure 1.7 Figure 1.7

E-COMMERCE AND COMPLEX SALE Complex sales involve several forms of information technology support Tools include: electronic product catalogs contact management systems Internet applications presentation packages like this one See Chapters 5, 11, 15 for info tech applications.

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

CUSHMANN WAKEFIELD

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

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 Last slide Chapter 1. Last slide Chapter 1.