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What is Selling?
Selling is just one of many marketing components
Personal selling includesPersonal communication of informationPersuasionHelping others
– Goods
– Services
– Ideas
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A New Definition of Personal Selling
Personal SellingRefers to the personal communications of
informationTo unselfishly persuade someone
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Think of Your Grandmother
Would you treat her in a selfish manner?Would you sell her something just to make a
sale?
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The Golden Rule of Personal Selling
Refers to the sales philosophy of unselfishly treating others as you would like to be treated
Reciprocity is not expected
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Salesperson Differences
Traditional Salesperson
Professional Salesperson
Golden Rule Salesperson
Guided by self-interests
Takes care of customers
Others interests most important
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Everybody Sells!
Each of us develops communication techniques for trying to get our way in life
You are involved in selling when you want someone to do something
You use persuasion skills to persuade someone to act
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Types of Sales Jobs
Retail SellingA retail salesperson sells goods or services to
consumers for their personal, non-business use
Direct SellingFace to face sales to consumers, typically in their
homes, who use the products for their non-business personal use
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Types of Sales Jobs cont…
Selling for a WholesalerFor resaleFor use in producing other goodsFor use within an organization
Selling for a ManufacturerWorking for the firm who manufacturers the productUsually one of the most prestigious jobs to hold
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Exhibit 1-8
The complexity and difficulty of these seven sales job categories increase as they move left to right.
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Rewards
Non-financialIntrinsic reward of knowing you’ve skillfully delivered
a sales presentation Quick path to managing large amounts of
responsibilityQuick path to managing others
FinancialHigher average salary than that of other workers at
the same level within the organization.Based upon performance, not tenure
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Relationship Selling
Non-adversarialNon-manipulativeConsultativePartneringProblem-solvingGoal: long-term relationship
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Sales Jobs Are Different
Salespeople:Represent their companies to the worldWork with little or no supervisionRequire more people skillsAre often allowed to spend company fundsMay require travel and being away from home
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Preparing for the 21st Century
International and global sellingCultural fluencyLanguage fluency
Diversity of salespeople and customersCustomer partnershipsEthical and professional behaviorE-selling
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Relationship Marketing:Where Personal Selling Fits
Relationship Marketing:Where Personal Selling Fits
ChapterChapter
22ChapterChapter
22
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
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What is Marketing?
Marketing is a process of planning: The conception, pricing, promotion, and distribution of
goods, services, and ideas To create exchanges that satisfy individual and
organizational objectives
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Customer Orientation’s Evolution
The production conceptThe selling conceptThe marketing concept
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The Production Concept
Companies were production oriented
We know what people want – they want our product.
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The Selling Concept
Characterized by product demonstrations and unsophisticated sales techniques
Emphasis on the productProduct created and then soldManagement is sales-volume orientedStresses needs of the seller
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The Marketing Concept
Emphasis is on customer’s wantsCustomer’s wants drive productionManagement is profit-orientedPlanning is long-runStresses wants of buyers
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Marketing’s Importance in the Firm
Marketers have four main objectives: Maximize the sales for existing products in existing
markets Develop and sell new products Develop new markets for existing or new products Provide quality service to ensure repeat business
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What is Meant by the Term “Product?”
A product is a bundle of tangible and intangible attributes, including package, color, and brand, plus the services and even the reputation of the seller
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The Term “Product” May Refer to a Good or Service
ExamplesGoods - a physical object for sale
– Automobile
– Cell phone
– Prescription medicineServices - an action or activity done for others for
a fee– Automobile repair
– Wireless phone plan
– Health insurance
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People Buy More Than the Product
People buy want-satisfaction asWhat the product will doIts qualityImage of owning as a
– Polo shirt vs. Wal-Mart shirt
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The Key Phrases That Differentiate Between Consumer and Industrial Products are:
Consumer product - personal useIndustrial product - producing other products
What is an example of an industrial product?Airlines purchase airplanesBoeing sells their airplanes to airlinesUniversity buys computers
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Price: It’s Important to Success
Price refers to the value or worth of a product that attracts the buyer to exchange money or something of value for the product
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Promotion Tells People
Promotion increases sales by communicating product information to potential customers
The four basic components of a firm’s promotional effort are: (PAPs)Personal sellingAdvertisingPublicitySales promotion
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Relationship Marketing
Relationship marketing is the creation of customer loyalty
Targets a major customer that it wants to sell to now and in the future
Establishes a long-term collaborative relationship
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Partnering with Customers
Encourages both the buyer and seller to share information
Two companies work toward the same objective
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Consultative Selling
The process of helping the customer achieve strategic short and long-term goals through the use of the seller’s goods and/or servicesA highly interactive dialogue between a salesperson
and a customerA balanced exchange of information
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Ethics First…Then Ethics First…Then Customer RelationshipsCustomer Relationships
Ethics First…Then Ethics First…Then Customer RelationshipsCustomer Relationships
ChapterChapter
33ChapterChapter
33
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
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Management’s Social Responsibilities
Social responsibility is management’s obligation to make choices and take actions that contribute to the welfare and interests of society as well as to those of the organization
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Exhibit 3-2: Major Stakeholders in the Organization’s Performance
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The Psychology of Selling: Why The Psychology of Selling: Why People BuyPeople Buy
The Psychology of Selling: Why The Psychology of Selling: Why People BuyPeople Buy
ChapterChapter
44ChapterChapter
44
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
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A FABulous Approach to BuyerNeed Satisfaction
Stressing benefits is a very powerful selling technique
FAB selling technique helps emphasize benefit
F
A
B
eature
dvantage
enefit
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People Buy Benefit(s)
Not a product’s feature(s)Not a product’s advantage(s)
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How to Determine Important Buying Needs -- A Key to Success
L-O-C-A-T-E
isten
bserve
ombine
sk questions
alk to others
mpathize
L
O
C
A
T
E
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The Trial Close -- A Great Way to Uncover Needs and Sell
The trial close asks for an opinion, not a decision to buy
It gives feedback.The trial close is one of the best communication
techniques in the sales presentation
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The Trial Close Helps You to Determine:
Whether the prospect likes your product’s features, advantages, or benefits
Whether you have successfully answered any objections
Whether any objections remainWhether the prospect is ready for you to close the
sale
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Sell Sequence
SELL Sequence
- Show Feature
- Explain advantage
- Lead into benefit
- Let customer talk
S
E
L
L
- physical characteristic
- performance characteristic
- result of advantage
- ask opinion question
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The Buyer’s Personality Should Be Considered
Personality can be viewed as the individual’s distinguishing character traits, attitudes, or habits
Self-conceptReal selfSelf-imageIdeal selfLooking-glass self
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Adaptive Selling Based on Buyer’s Style
Personality typingAdapt your presentation to the buyer’s style
T
IFSTIFS
ensor styleeeler style
ntuitor style
hinker style
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Communication for Communication for Relationship Building: It’s Relationship Building: It’s
Not All TalkNot All Talk
Communication for Communication for Relationship Building: It’s Relationship Building: It’s
Not All TalkNot All Talk
ChapterChapter
55ChapterChapter
55
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
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Communication: It Takes Two
In a sales context, communication is the act of
transmitting verbal and nonverbal information and
understanding between the seller and buyer
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Nonverbal Communication:Watch For It
Concept of spaceTerritorial space
Intimate space -- 2 feet
Personal space -- 2 to 4 feet
Social space -- 4 to 6 feet
Public space -- + 12 feetSpace threats -- too closeSpace invasion -- OK to be close
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Exhibit 5-3: Office Arrangements and Territorial Space
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Communication Through Appearance and the Handshake
Style hair carefullyDress as a professionalShake hands firmly and look people in the eye
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Body Language Gives You Clues
Nonverbal signals come from:Body angle
Face
Hands
Arms
Legs
http://www.selfgrowth.com/articles/kyle.html
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A Light Signal for Vehicles has a Green, Yellow, and Red Light
A person also sends three types of
messages using body communication signals
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Recognizing Body Signals
Knowing body signal guidelines can improve your communication ability by allowing the salesperson toBe able to recognize nonverbal signalsBe able to interpret them correctlyBe prepared to alter a selling strategyRespond positively both nonverbally and verbally to a
buyer’s nonverbal signals
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Sales Knowledge: Sales Knowledge: Customers, Products, Customers, Products,
TechnologiesTechnologies
Sales Knowledge: Sales Knowledge: Customers, Products, Customers, Products,
TechnologiesTechnologies
ChapterChapter
66ChapterChapter
66
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
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Knowledge Builds Relationships
Knowledge increases a salesperson’s confidenceKnowledge increases a buyer’s confidence in
salespersonMore knowledge leads to more sales and more
relationships
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Know Your Company
General Company InformationCompany growth and accomplishmentPolicies and proceduresProduction facilitiesService facilities
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Know Your Product
Product knowledge may include:Performance dataPhysical size and characteristicsHow the product operatesSpecific features, advantages, and benefits of the
productHow well the product is selling in the marketplace
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Know Your Competition, Industry, and Economy
Understand competitors’ products, policies, and practices
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Prospecting—The Prospecting—The Lifeblood of SellingLifeblood of SellingProspecting—The Prospecting—The Lifeblood of SellingLifeblood of Selling
ChapterChapter
77ChapterChapter
77
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
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The Concept of Prospecting
• A salesperson without prospects is out of business
• A salesperson without prospects can no more close a sale than a surgeon without a patient can operate
• Prospects are everywhere - develop ways to find them
“I’d rather be a master prospector than be a wizard of speech and have no one to tell my story to.” -Paul J. Meyer
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Qualifying the Prospect
• Moving from a “lead”, to a qualified prospect
• Lead - is just a name
• Prospect - researched for money, and authority, and desire.
• Qualified prospect - evaluated prospect along with personal information
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Cultivate prospects who pass the MAD test:
oney
uthority
esire
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• What methods will YOU use?
Methods of Prospecting
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The Six-Step Telephone Track
• Step 1 - Introduce yourself and your company• A judgement will be made about you within 12 words• Keep it warm and friendly
• Step 2 - Take the curse off the call• A call is an interruption• Get permission to continue• Soften the impact with, “I need just a minute” etc.
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• Step 3 - State the purpose of the call
A brief, hard-hitting lead-in Mention referrals if you have them
• Step 4 - An interest-capturing statement Usually a customer benefit (Use your sales burger.) You could ask a thought-provoking question
• Step 5 - Request an appointment Don’t give too much information over the phone Give a choice of times for the meeting
The Six-Step Telephone Track
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• Step 6 - Overcome resistance
Agree with the objection
Switch back to your idea or reason for the appointment
Ask for the appointment again
Remember all you want is the appointment
The Six-Step Telephone Track