1. CHAPTER 1
Personal Selling and the Marketing Concept

2. Learning Objectives
Define personal selling and describe the three prescriptions of a personal selling philosophy
Describe contributions of personal selling to the information economy
Discuss personal selling as an extension of the marketing concept
Describe the evolution of consultative selling from the marketing era to the present

3. Learning Objectives
Define strategic selling and name four broad strategic areas of the Strategic/Consultative Selling Model
Describe evolution of partnering and the nature of a strategic selling alliance
Explain how value-added strategies enhance personal selling

4. 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

5. Philosophy of Personal Selling
A strategic resource is information
Salespeople are the eyes/ears of the marketplace
Salespeople can collect wide range of competitive intelligence
Business is defined by customer relationships
Sales success depends on adding value
Michael Hammer, consultant and author of The Agenda, says, “The real new economy is the customer economy.”

6. A Shift in Emphasis
FIGURE
1.2

7. 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

8. Value-Added Selling A series of creative improvements
in the sales process that enhances
the customer experience.

9. The Marketing Concept
A principle that holds that achieving organizational goals depends on:
Knowing the needs and wants of target markets
Delivering the desired product
Paths to sales and profits are:
Customer focus
Value

10. The Marketing Mix
FIGURE
1.3

11. 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 sophisticated and complex
Competition has greatly increased
Customer demand for quality, value, and service has risen sharply

12. Evolution of Consultative Selling
Consultative selling era (late 1960s to early 1970s)
Mass markets break into target markets
Emphasis on need identification
Information sharing and negotiation replace manipulation

13. 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

14. 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

15. 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

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

17. Evolution of Strategic 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

18. FIGURE
1.5

19. Develop a Relationship Strategy
 Adopt a win-win philosophy  Project a professional image  Maintain high ethical standards
“People don’t care how much you know until they know how much you care.”
Harvey B. Mackay, founder of Mackay Envelope Corporation

20. Develop a Product Strategy
 Become a product expert  Sell benefits, not features  Configure value-added solutions
“Diagnose before you prescribe.”
Stephen Covey, author of The 7 Habits of Highly Effective People

21. Develop a Presentation Strategy
 Prepare objectives  Develop a presentation plan  Provide outstanding service

22. Develop a Customer Strategy
 Understand the buying process  Understand buyer behavior  Develop prospect base
Patricia Seyold, best-selling author of The Customer Revolution says, “We are in the midst of a profound revolution: the customer revolution.”

23. Interrelationship of Basic Strategies
FIGURE
1.7

24. 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 Customer Relationship Management

25. 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

26. Strategic Selling Alliances
FIGURE
1.7

27. Example of Partnering: Campbell Food Service, Inc.
See the Website

28. Example of Partnering: Cushman &Wakefield
See the Website

29. Partnering is Enhanced with Customer Relationship Management
See the Website

30. 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

31. Customer Value Model
FIGURE
1.8

32. Value-Added Selling Example: Wisconsin Milk Marketing Board
See the Website

33. Key Concept Discussion Questions
Define personal selling and describe the three prescriptions of a personal selling philosophy
Describe the contributions of personal selling to the information economy
Discuss personal selling as an extension of the marketing concept
Describe the evolution of consultative selling from the marketing era to the present
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

34. Key Concept Discussion Questions
Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model
Describe the evolution of partnering and the nature of a strategic selling alliance
Explain how value-added selling strategies enhance personal selling
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

35. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2010 Pearson Education, Inc.  
Publishing as Prentice Hall
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