Overview of Personal Selling

Module Two

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2: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.

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal 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.

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

Setting the Stage

1. What does Carl Strenger, a UPS Vice President, mean by a “consultative discussion” with the customer?

2. When teaming up with UPS Capital sales personnel, what is the focus of the overall sales strategy?

UPS Builds Trust and Long-Term Customer Relationships

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

Personal Selling – Defined

Personal selling refers to personalcommunication with a an audiencethrough paid personnel of anorganization or its agents insuch a way that the audienceperceives the communicator’sorganization as being the sourceof the message.

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

IndustrialRevolution

Post-IndustrialRevolution

War andDepression

ModernEra

1800s1800s 1900s1900s 2000s2000s

Evolution of Personal Selling

Selling function became more

structured

Peddlers selling door to door . . . served as intermediaries

Business organizations employed salespeople

Selling function became more professional

As we begin the 21st century, selling continues to develop,becoming more professional and more relational

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

Contributions of Personal Selling: Salespeople and Society

• Salespeople help stimulate the economy

• Salespeople help with the diffusion of innovation

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

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

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

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

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

Transaction-Focused vs. Relationship Focused

Transaction-Focused 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

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

Classification ofPersonal Selling Approaches

• Stimulus Response Selling• Mental States Selling• Need Satisfaction Selling• Problem Solving Selling

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

Stimulus Response Selling

Salesperson Provides

Stimuli

BuyerResponses

Sought

Continue Process until

Purchase Decision

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

Mental States Selling

Attention Interest Conviction Desire Action

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

Need Satisfaction Selling

Uncover and Confirm

Buyer Needs

Present Offering to

Satisfy Buyer Needs

Continue Selling until

Purchase Decision

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

Problem Solving Selling

DefineProblem

GenerateAlternativeSolutions

ContinueSelling

untilPurchaseDecision

EvaluateAlternativeSolutions

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

Long-term Ally

Consultative Selling

The process of helping customers reach their

strategic goals by using the products, service, and expertise of the selling organization.

Strategic Orchestrator

Business Consultant

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

The Sales Process: An Overview

Developing Customer

Relationships

Initiating Customer

Relationships

Enhancing Customer

Relationships

Selling Foundations

Selling Strategy

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

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:

Possess Excellent Communication Skills

Understand Buyer Behavior

Behave Ethically

Be Trustworthy

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

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:

Their Sales Territories

Each Sales Call

Each Customer

Each strategy is related to the other

Ingram LaForge AvilaSchwepker Jr. Williams

Sales Management:Analysis and Decision Making

Module 2:Overview of Personal Selling

Adding Value through Follow-up, Self-leadership, and Teamwork

The Sales Process

• Prospecting• Preapproach• Presentation Planning• Approaching the Customer

• Sales Presentation Delivery • Earning Customer Commitment

Developing Customer

Relationships

Initiating Customer

Relationships

Enhancing Customer

Relationships