1. Stephen B. Castleberry | John F. Tanner Jr. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. CHAPTER 1 SELLING AND SALESPEOPLE

2. LEARNING OBJECTIVES What is selling? Why should you learn selling even if you do not plan to be a salesperson? What is the role of personal selling in a firm? What are the different types of salespeople? What are the rewards of a selling career? 1-2

3. PERSONAL SELLING Human-driven interaction between and within individuals/organizations No sequential steps Involves many people Creates value Customer value proposition: Collection of buyer-specific benefits 1-3

4. PERSONAL SELLING Creates economic exchange Involves profits for both parties Personal Value Equation = Benefits received - (Selling price + Time and effort to purchase) 1-4

5. EXAMPLES OF WAYS THAT SALESPEOPLE CAN ADD VALUE IN A SELLING SITUATION Provide interface between the buying and selling companies Identify networks of key players and help activate them to the task of cocreating value Encourage two-way communication and help to create effective bonds between people Help to create a climate of coleadership with seller 1-5

6. EXAMPLES OF WAYS THAT SALESPEOPLE CAN ADD VALUE IN A SELLING SITUATION Encourage both sides to learn and understand each other Facilitate truly useful meetings and conversations between all parties Help to manage situations that arise to bring everyone back to a value-adding perspective Help to foster trust and commitment 1-6

7. EXAMPLES OF WAYS THAT SALESPEOPLE CAN ADD VALUE IN A SELLING SITUATION Be attuned to activities that increase value adding and help facilitate more of them Help key players understand the perception of value Create meaning out of situations that arise and conversations that occur Help to provide closure on solutions that provide value to all parties 1-7

8. SELLING FROM NON-SALE PERSPECTIVE Industrial relations executives use selling approaches when negotiating with unions Aspiring management trainees sell themselves to superiors to get raises and promotions Leaders are skilled at: Selling value Influencing others Developing long-term relationships 1-8

9. CREATING VALUE: THE ROLE OF SALESPEOPLE IN A BUSINESS Go-to-market strategies: Approaches used to add customer while adding value Selling through the: Internet Field sales representatives Business partners Resellers Manufacturer agents Franchises Telemarketers 1-9

10. CREATING VALUE: THE ROLE OF SALESPEOPLE IN A BUSINESS Estimated value of the customer over the lifetime of the relationship Customer lifetime value Organizations whose that rely heavily on salespeople Sales force-intensive organizations Using several strategies at the same time Multichannel strategy Communication programs that coordinate the use of various vehicles Integrated marketing communications 1-10

11. EXHIBIT 1.2 - COMMUNICATION METHODS 1-11

12. CLIENT RELATIONSHIP MANAGER Customercentric: Making the customer the center of everything the salesperson does Six sigma selling programs: Designed to reduce errors introduced by the selling system to practically zero 24/7 service: Selling firm to be available for 24 hours a day, 7 days a week 1-12

13. ACCOUNT TEAM MANAGER Salespeople coordinate activities within firms to solve customer problems Team selling better as selling alone leads to: Poor performance Lower job satisfaction Higher turnover intentions 1-13

14. SUPPLY CHAIN LOGISTICS AND CHANNEL MANAGER Supply chain logistics: Management of the supply chain Necessary to interact with other partners and vendors to meet a customer’s needs 1-14

15. INFORMATION PROVIDER TO THEIR FIRM Salespeople are: Eyes and ears of the company Skillful at disseminating knowledge acquired from customers to other people in their companies Customer relationship management system: Information transmitted electronically to the company, its salespeople, and its customers and is contained in this system 1-15

16. SELLING AND DISTRIBUTION CHANNELS Distribution channel: Set of people and organizations responsible for the flow of products and services from the producer to the ultimate user Business-to-business channels Direct sales to a business customer Sales through distributors Trade salespeople: Employed by manufacturer to sell to distributors 1-16

17. SELLING AND DISTRIBUTION CHANNELS Missionary salespeople: Work for manufacturer and promote their products to other firms Customer channels Manufacturers’ agents: Independent businesspeople paid a commission by manufacturer for products and services sold 1-17

18. EXHIBIT 1.3 - SALES JOBS AND THE DISTRIBUTION CHANNEL 1-18

19. EXHIBIT 1.3 - SALES JOBS AND THE DISTRIBUTION CHANNEL 1-19

20. DESCRIBING SALES JOBS Selling to prospects requires different skills than does selling to existing customers Stage of the buyer–seller relationship Taking orders or creating new solutions Salesperson’s role Sales jobs involving important decisions for customers differ greatly from sales jobs involving minor decisions Importance of the customer’s purchase decision 1-20

21. DESCRIBING SALES JOBS Communicate with the customer face to face, at the customers location Field salespeople Communicate with customers by telephone or computer, at employer’s location Inside salespeople Types of benefits provided by products and services affects the nature of the sales job Nature of the offering sold by the salesperson Sales jobs differ by the types of commitments sought and the manner in which they are obtained Salesperson’s role in securing customer commitment: 1-21

22. EXHIBIT 1.4 - CREATIVITY LEVEL OF SALES JOBS 1-22

23. CHARACTERISTICS OF SUCCESSFUL SALESPEOPLE Self - motivated Dependable and trustworthy Ethical sales behavior Customer and product knowledge Analytical skills 1-23

24. CHARACTERISTICS OF SUCCESSFUL SALESPEOPLE Ability to use information technology Communication skills Flexibility and agility Creativity Confidence and optimism 1-24

25. EMOTIONAL INTELLIGENCE Ability to effectively understand and regulate one’s own emotions and to read and respond to the emotions of others Aspects Knowing one’s own feelings and emotions as they are experienced Controlling one’s emotions to avoid acting impulsively Recognizing customers’ emotions, also known as empathy Using one’s emotions to interact effectively with customers Positively related to performance and retaining customers 1-25

26. REWARDS IN SELLING Independence and responsibility Financial rewards Earn more money the longer they sell Depend on the level of skill and sophistication needed to do the job Management opportunities Selling jobs develop a firm base for launching a business career 1-26

27. EXHIBIT 1.5 - THE BUILDING PARTNERSHIPS MODEL 1-27

28. Building partnering relationships after the sale Obtaining commitment Responding to objections Strengthening the presentation Making the sales call Planning for the sales call Prospecting STEPS IN SELLING 1-28