Overview of Personal Selling Module One Overview of 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.

Key Thoughts Selling has been around since there were goods to trade. The role of the salesperson has evolved . . . becoming more professional. Salespeople play an important role in creating and maintaining a strong economy. Salespeople are solution providers. Sales is a process focusing on initiating, developing, and enhancing customer relationships.

Personal Selling – Defined Personal selling is an organizational function that creates, communicates, and delivers value to customers and manages customer relationships in ways that benefit both the organization and its stakeholders.

Evolution of Personal Selling Peddlers selling door to door . . . served as intermediaries Selling function became more structured As we begin the 21st century, selling continues to develop, becoming more professional and more relational Industrial Revolution Post-Industrial Revolution War and Depression Modern Era 1800s 1900s 2000s Business organizations employed salespeople Selling function became more professional

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 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 Simple in design; assumes conditioned response improves likelihood of success; a risky and unreliable strategy.

Mental States Selling Attention Interest Conviction Desire Action Assumes buyer can be led through mental states; promotes one-way communication; a risky and unreliable strategy.

Need Satisfaction Selling Uncover and Confirm Buyer Needs Present Offering to Satisfy Buyer Needs Continue Selling until Purchase Decision Interact with buyer to determine existing needs; present solutions to needs; solutions limited to seller’s products.

Problem Solving Selling Define Problem Generate Alternative Solutions Evaluate Alternative Solutions Continue Selling until Purchase Decision Interact with buyer to determine existing and potential needs; present multiple solutions not limited to seller’s products.

Consultative Selling Business Consultant The process of helping customers reach their strategic goals by using the products, service, and expertise of the selling organization. Strategic Orchestrator Long-term Ally

The Sales Process: An Overview Selling Foundations Selling Strategy Initiating Customer Relationships Developing Customer Relationships Enhancing Customer Relationships

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: Be Trustworthy Behave Ethically Understand Buyer Behavior Possess Excellent Communication Skills

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: Each Sales Call Each Customer Their Sales Territories Each strategy is related to the other

Enhancing Customer Relationships The Sales Process Initiating Customer Relationships Developing Customer Relationships Enhancing Customer Relationships Sales Presentation Delivery Earning Customer Commitment Prospecting Preapproach Presentation Planning Approaching the Customer Adding Value through Follow-up, Self-leadership, and Teamwork

Module One – Appendix Sales Careers

Characteristics of Sales Careers Job Security Advancement Opportunities Immediate Feedback Prestige Job Variety Independence Compensation

Job Security Selling skills are readily transferable from industry to industry….and the need for good salespeople will never go away. Accordingly, good salespeople have opportunities within and across industries.

Advancement Opportunities Salespeople are familiar with the market, the customers, and the products. In addition, good salespeople have great interpersonal skills. These attributes help to make salespeople good candidates for leadership in the organization. Note: Not all salespeople make good leaders….some salespeople have trouble making the adjustment positions involving a lot of administrative work (e.g., management positions).

Immediate Feedback & Prestige Customer responses to the salesperson’s efforts are typically immediate…providing the salesperson performance feedback and the opportunity to adjust “on the fly.” The role of the professional salesperson is not well known by the general public and is eclipsed by negative stereo types . . . but that is slowly changing.

Job Variety and Independence Professional selling is rarely the same from day-to-day. The word “routine” doesn’t apply. Usually, salespeople are accountable for attaining certain goals…how they get there is up to them. There is no “time-clock” and no taskmaster.

Compensation Good salespeople usually earn an income well above the national average. Many salespeople earn six figure incomes (or higher). Income is most often tied directly to performance.

Sales Support Promote or Otherwise Support a “Pull-Through” Strategy Missionary Salespeople Detailers Support the Salesperson’s Efforts Technical Support Installation

Other Defining Characteristics The primary focus of the selling activities Generate new accounts Maintain existing accounts Combination Where the selling conducted Inside Outside How the selling conducted Telephone Field

Characteristics of Successful Salespeople Empathy Ego Drive Ego Strength Motivation Ethical Behavior Interpersonal Communication Skills