Personal Selling and the Marketing Concept 1 Personal Selling and the Marketing Concept

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

Broad Concept of Product What is the main product the following companies offer? Includes: Information Services Ideas Issues “Hard goods”

Strategic/Consultative Selling Model FIGURE 1.1

Personal Selling in the Information Age An evolution from the industrial economy to the information economy Began in the 1950s New emphasis is information exchange rather than producing goods Implications for personal selling

A 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

Personal Selling as an Extension of the Marketing Concept Move from a product orientation (peddling) to a customer orientation (partnering)

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

Evolution 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

Evolution of Personal Selling Strategic selling era (early 1980s) Market niches require more planning Equal emphasis on strategy and tactics Product positioning vital Partnering era (1990 to present) Customer, not product, as driving force Emphasis on strategies that create customer value

Evolution of Consultative Selling Transactional selling Process that serves the buyer primarily interested in price and convenience Consultative selling Process that developed from the marketing concept, emphasizing need identification

Evolution of Consultative Selling Features of consultative selling include: Customer is a person to be served, not a prospect to be sold Two-way communication identifies (diagnoses) customer’s needs; no high-pressure sales presentation Emphasis on information giving, problem solving, and negotiation rather than manipulation Emphasis on service after the sale

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

Strategy and Tactics Tactics Strategy Specific techniques, practices, and methods used in customer interaction Strategy Carefully conceived plan needed to accomplish sales objectives A prerequisite to tactical success

Strategy vs. Tactics Exercise  Identify the following: 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   

Selling Model FIGURE 1.5 1-20

Develop a Personal Selling Philosophy 1 Step : Develop a Personal Selling Philosophy  Adopt the marketing concept  Value personal selling  Assume the role of a problem solver/partner

Develop a Relationship Strategy 2 Develop a Relationship Strategy Step :  Adopt a win-win philosophy  Project a professional image  Maintain high ethical standards

Develop a Product Strategy 3 Develop a Product Strategy Step :  Become a product expert  Sell benefits, not features  Configure value-added solutions

Develop a Customer Strategy 4 Develop a Customer Strategy Step :  Understand the buying process  Understand buyer behavior  Develop prospect base

Develop a Presentation Strategy 5 Develop a Presentation Strategy Step :  Prepare objectives  Develop a presentation plan  Provide outstanding service

Interrelationship of Basic Strategies FIGURE 1.7

E-Commerce and the Complex Sale Electronic business Complex sales involve several forms of information technology support, including: Electronic product catalogs Contact management systems PowerPoint and Excel Internet applications Electronic commerce

Evolution of Partnering Buzzword of 1990s, became business reality in 2000s “Strategically developed, long-term relationship that solves the customer’s problems” Relationship selling relies on a customized approach to each client Enhanced with high ethical standards and CRM

Example of Partnering: Cushman & Wakefield

Strategic Alliances Formed by companies that have similar business interests and, thus, gain a mutual competitive advantage The goal is to achieve a marketplace advantage by teaming up with another firm Highest form of consultative selling required to build win-win alliances Can you cite some current examples of strategic alliances?

Value 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 price

Value- Added Selling Example