mktg377 study guide

8/11/2019 MKTG377 Study Guide

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CHAPTER 1: A CAREER IN PROFESSIONAL SELLING

DIFFERENT TYPES OF SALES CAREERSLOW order taking (reactive)

Respond, react, and suggestMEDIUM direct selling (proactive)

Direct selling is a useful supplement to an individuals income, but its not an optimal career pathHIGH personal selling (relational / relationship)

MARKETING VS. SALES Marketers indirectly communicate with prospects and try to inspire them to buy % sales professionals directly communicate

PERSONAL/RELATIONSHIP SELLINGPersonal Sellingis process of seekingout people who have a particular need, assistingthem to recognize & define that need,

demonstratinghow a particular service or product fills that need and then persuadingthem to use that service/product

GREAT RELATIONSHIP SALESPERSONDevelops a visionto identify & solve prospects needs short & long term to anticipate issues BEFORE they occurTheyre a solution provider

EXPLORING THE VALUE OF SALESPEOPLE (3 perspectives)1. For their Clients2. For their Company

3. For themselves

SALES TRAININGSales training is a competitive advantageand also builds confidence in the sales force its a critical investment

MASLOWS HIERARCHY OF PERSONAL NEEDS** personality, sales training, a positive attitude, and authenticity will move you upwards on Maslows pyramid, which is essential

to do to be most effective in Relationship SellingPeak

ExperiencesSelf-actualization

Psychological NeedsSafety Needs (comfort)

B a s I c N e e d s (survival)

KEY TYPES OF SALES JOBS1. trade selling

help customers to sell more product long-term relationship are important ex. delivering orders & replenishing inventory as well as, setting up displays, distributing samples

2.

missionary selling often work directly for manufacturers largely consists of education those persons who decide which products the customer will use ex. drug reps selling to doctors

3. technical selling detailed specialists who explain the benefits of a companys product, acting more like consultants who analyze ex. engineer, scientist

4. new business selling finding new customers & persuading them to buy for the first time vital for firms seeking to focus on sales growth order taker (responsive selling) responds to requests vs. order giver (creative selling)is a creative problem solver

TYPES OF SALESPEOPLE1. Sales Engineer sells products requiring technical know how (often in chemical, machinery, & heavy equip. areas)2. Detail Salesperson doesnt directly solicit orders- has informative/promotion function. (pharma sales reps selling to doctors)3. Service Salespersonsells intangibles (insurance, advertising, financial, or professional services)

4. Accounts Representativeminimal pressure to establish new accounts or relationships5. Non-Technical Industrial Productssells tangible product to users (selling office equipment, packaged goods)**Similarities: need to understand prospects problems, need for appropriate technicaland/or productknowledge and self-disciplineto execute sales plan, ability to translate product featuresinto benefits.

Q: On average, what percent of time does the typical salesperson spend directly in front of their clients?A: 15% (*allocating sufficient face to face time with prospects is a common problem for most sales professionals)

Q: which type of salesperson focuses on performing promotional activities & introducing products to prospectsinstead of directly soliciting an order?A: Detail Salesperson

Q: what type of salesperson primarily sells intangibles?A: Service Salesperson


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CHAPTER 2 RELATIONSHIP SELLING

VALUE CREATION THROUGH RELATIONSHIP SELLING Only 20% of companies have embraced relationship selling Position self as partner/consultant vs. salesperson to create a more equal relationship

Current selling trend: relationship, problem-solvingsellingUltimate goal: customer satisfactionRelationship Management: managing account relationship & ensuring service is provided to clientsbefore and after the saleTimeline: LT relationship built on trust, mutual reward, andmutual benefitsRelationship killers: A party in the relationship that fails to deliver on their promise leads to suspension, separation or contract

termination is imminent

RELATIONSHIP SELLING VS. TRADITIONAL SELLING

THE SALES CYCLE FRAMEWORK FOR RELATIONSHIP SELLING3 Phases in the Sales Cycle:Phase 1. Identifying qualified prospects (they have need, money, authority)& planning pre-approach activities (i.e. telephone

activities)Phase 2. Approaching the prospect, discovering needs, making the presentation, handling objections & gaining commitmentPhase 3. Closing the sale & service after sale. (relationship doesnt really start until buyer says yes)

Cognitive dissonance(buyers remorse) must be addressed & resolved by the salesperson

W. Edwards Demingwas the founder of total quality managementand relationship selling85-15 Rule:When things go wrong, 85% of the time the process or system is at fault and only 15% its the fault of the

employee or salesperson

TQM- CONTINUOUS QUALITY IMPROVEMENTTotal Quality Management (TQM)

-

listen and learn from customers AND employees- continuously improve the partnership- teamwork through mutual trust and respect- do it right the first time- get your whole company involved

Service Quality- theres a process & an outcome, which are both necessary for customer satisfaction

RISKS OF TEAM SELLING1. requires special planning2. requires a team leader3. all must agree on objectives4. must be well-rehearsed

BENEFITS OF TEAM SELLING1. customer involvementwith more than 1 person

2.

more accurateneeds definition3. very useful if the product is technical4. differentindividuals bring more selling skills5. gives the client addedconfidencethat theyre not dependent on a single contact


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CHAPTER 3 ETHICAL & LEGAL ISSUES

traditional values have given way to a widespread sense of entitlement

Ethos- Ethicalstandards derive from society and its behavior

- Legalstandards are enforced

Drs. Ken Blanchard & Norman Vincent Peale- authors of the power of ethical management- dont have to cheat to win

-

nice guys arent finishing last, theyre running a different race

THE BASIS FOR ETHICAL SYSTEMSSystems to describe ethical thinking:

1. Deontologicaluses specific rules2. Teleologicaldefines right and wrong in terms of end results (utilitarian concept)

3 GUIDELINES FOR ETHICAL BEHAVIOR1. Universal Nature (the golden rule; everyone plays by same rules)2. Truth telling3. Take responsibility for ones actions

6 INFLUENCES ON A SALESPERONS ETHICS1. Company code of ethics2. Role models(executives & sales managers)3. Examplesset by colleagues/competitors

4.

The bottom linesurvival is higher priority than profit5. Group think6. Gamesmanship(winning for sake of winning)

DEVELOPING PERSONAL CODE OF ETHICS- responsibility to self, thecompany, competitors, and tocustomers

OPERATING IN A GLOBAL ENVIRONMENTGlobal Rule of Thumb:salespeople should follow the laws of THEIR HOME COUNTRY & COMPANY, as well as adhere to rules of

country where theyre working if theyre in synch with each other

BEHAVIOR OUTCOMESHow the company treats the salesperson sets the stage for proper or improper ethical behavior

- some incentives encouraging fudging- management may not be accessible to help with ethical issues- are there control mechanisms in place? (customer complaints? salesperson dissatisfaction? expense accounts?)

VIOLATIONS USUALLY FALL WITHIN 2 BROAD CATEGORIES1. Deceptive Actionsfalse claims, disparaging remarks2. Monopolistic Actionsprice fixing, acquiring all competitors

Cooling-off law pertains to newly-entered contracts that allows obth sides of the part a period of time (After the contracts beensigned) to release themselves from any obligations without penalty


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CHAPTER 4: PURCHASE BEHAVIOR AND COMMUNICATION

KISS method: Kept It Simple Stupid*make sure your listener (customer) understands what youre talking about

Consumer Behavioris the set of actions that make up an individuals consideration, purchase, and useof products andservices. This includes both the purchase as well as the consumption of those products and services

THE 5 STEP PURCHASE DECISION PROCESS1. Problem Recognition (Motive Arousal) May occur when the customer receives informationfrom advertising or from conversations with friends that causes

awareness of need In relationship selling, this often hinges on the salespersons ability to uncover a need Or may occur when consumer re-evaluates current situation & perceives dissatisfaction

2. The Search For Alternativesinternal search (habitual) or External search (Extensive)

3. The Evaluation of Alternatives4. The Purchase Decision5. Post-Purchase Evaluation

Cognitive Dissonance is post-purchase anxiety or buyers remorse Relationship salesperson can reduce this by reinforcing the buyer that the right decision was made & demonstrating

the capabilities and quality of the product

INFLUENCES ON THE PURCHASE DECISION PROCESS1. Behavioral Influences2. Psychological Influences3. Socio-cultural Influences

Psychological Influences:1. perception2. mood of the moment3. attitudehabitual patterns of response to previous experiences

A negative attitude must be overcome before a sale can be made4. self-image in communicating with a Prospect, what they believe is true is more important, than the true.

self-image is an individuals unique and personal self-appraisal at any given moment in time.

Socio-cultural Influences:Culture is an influence thats completelylearned and handed-downway of life

ORGANIZATIONAL BUYING VS. CONSUMER BUYING (KEY DIFFERENCES) most purchase decisions are based on rational buying motivesvs emotional driven (consumer buying) decisions often made after extensive research & analysisof product and selling comp. prior to purchase

Organizational Buyers:Decision maker usually a buying center

Buying Criteria more complexStrategic Business Alliances longer lastingBuying Motivation rational, economic or emotional

Characteristics:fewer in number, purchases usually involve larger dollar volume, less freedom of decision

MULTIPLE BUYING INFLUENCESThe Buying Center1. users2. buyers3. influencers4. gatekeepers5. decision makers

THE COMMUNICATIONS AGENDAThe channels which communications must flow through:

1. sourcethe sender of the message (origination point)

2.

encoding the messageusing symbols3.

the message itself4. evaluating the prospects decoding of the messagedid they get it?

WARNING SIGNALSSigns that the prospects either not understandingor not acceptingthe message:

-- rubbing nose, resting head in hands with elbows on desk, finger under collar or rubbing back of neck


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CHAPTER 5 FINDING YOUR SELLING STYLE understanding different social styles leads to better communication

CARL JUNG founder of the concept of identifying various behavioral styles expanded Freuds studies on the adult ego to state that personalities include 4 functions:

1. intuition2. thinking3. feeling4. sensing

THE SOCIAL STYLES MODELBasic Concepts:

1. PrimaryStyleis a persons favored/ usually most utilized style2. Back up Styleis occasionally used (especially in stressful situations)3. Clues to styleis shown in manner of speech, use of time, gestures used** we usually respond best to a style similar to our own

Behavior Styles in Selling style reflects surface behavior. Its not an in-depth personality analysis

VERSATILITY AS A COMMUNICATION TOOLPsychological Reciprocity: (most desired)when we adjust/move towards our prospects style, and then they feel compelled to

move towards our style

THE SOCIAL STYLES MODEL4 Types:

1.

Driver takes it in now and REACTS2.

Expressive is intuitive, imaginative, abstract3. Amiableis touchy/feely and emotional4. Analyticalthinks and organizes information logically

RECOGNIZING SOCIAL STYLESDRIVERS high assertiveness and low responsiveness. Control specialists.EXPRESSIVEShigh assertiveness and high responsiveness. Social specialists.AMIABLESlow assertiveness and high responsiveness. Support specialists.ANALYTICALSlow assertiveness and low responsiveness. Technical specialists.

GENDER STYLE DIFFERENCESProxemicsis the distance that individuals prefer to keep between themselves

READING THE PROSPECTS ENVIRONMENT Being able to identify a social style doesnt provide a crystal ball that predicts a prospects every action, but it does provide a

basis for forming reasonable expectations about recurring behavior

NEUROLINGUISTIC PROGRAMMING (NLP) Perceptual fields are ways in which people viewthe world

Modes of Perception (most of us favor one mode)1.

auditory2. visual3. kinesthetic

IDENTIFYING A PROSPECTS BEHAVIORNLPcan help you develop the ability to identify a prospects mode of perception adapt your mode of selling to their mode of learning


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CHAPTER 6: PREPARATION FOR SUCCESS IN SELLING

PREPARING TO SELL Proper Planning Prevents Poor Performance

GET ORGANIZED BEFORE A SALES CALLAsk yourself these 6 questions about your own business and how it helps your prospect, also, ask these questions about yourcompetitors to determine how you can differentiate and how you can beat them

1. Who?2. What?3. Where?

4.

Why?5. When?6. How?

*make the person you are calling on, WANT to meet with you

KNOW THE 8 STEPS OF PRODUCT KNOWLEDGE.. BE THE EXPERT1. the product itself

external characteristics, how to use it, all available options, adaptability2. performance

life expectancy, tolerance to wear and stress, maintenance and supplies needed3.

manufacturing data how is it made, quality control

4. what services are available service policies, service personnel

5. distribution channels distribution strategy, pricing policies, media support

6.

company information its history, philosophy, product evolution, present customers

7. product knowledge application know when to use it, dont over-sell, remember KISS

8. knowledge on the competition by knowing your competitors strengths & weaknesses, you can plan accordingly & defeat them

TECHNOLOGY The days of the salesman with nothing but his sample bag are OVER. Technology changes everything Sales forces will become automated or else they wont survive Numerous software/cloudware providers offer a centralized hub to conduct all business activities from

MARKET POSITIONING1. find out what qualities of your product/service are most important to your customers

2.

put together a marketing strategy3.

remember the way you sell or service your customers4. focus on what sets you apart5. keep an eye out for competitors

*motivation is a priority for everyone involved (wishing is not the same as being motivated)

3 TYPES OF MOTIVATIONmotivation arises as a response to either an external or internal stimulus:

1. fearmotivation is external, temporary and negative2. incentivemotivation is external, temporary and positive3. attitudinalmotivation is internal, permanent and positive

whether it originated from negative or positive inputs, external motivation factors DONT work in the LR.

WINNING IN SALES MEANSKnowledge + Technology + Positioning + Motivation = SUCCESS.

mktg377 study guide

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