Overview of Personal Selling

Overview of Personal Selling

Module One

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Learning Objectives1. 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.

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Learning Objectives4.Discuss five alternative approaches to selling.5.Describe the three primary roles fulfilled by consultative salespeople6.Understand the sales process as a series of interrelated steps.

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Key ThoughtsSelling has been around since there were goods to trade.The role of the salesperson has evolved . . . becoming more professional.Salespeople play an important role in creating and maintaining a strong economy.Salespeople are solution providers.Sales is a process focusingon initiating, developing, and enhancing customer relationships.

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Personal Selling DefinedPersonal selling is an organizational function that creates, communicates, and delivers value to customers and manages customer relationships in ways that benefit both the organization and its stakeholders.

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IndustrialRevolutionPost-IndustrialRevolutionWar andDepressionModernEra1800s1900s2000sEvolution of Personal SellingSelling 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

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Contributions of Personal Selling: Salespeople and Society

Salespeople help stimulate the economy

Salespeople help with the diffusion of innovation

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Contributions of Personal Selling: Salespeople and the Employing FirmSalespeople generate revenueSalespeople provide market research and customer feedbackSalespeople become future leaders in the organization

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Contributions of Personal Selling: Salespeople and the CustomerSalespeople provide solutions to problemsSalespeople provide expertise and serve as information resourcesSalespeople serve as advocates for the customer when dealing with the selling organization

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Transaction-Focused vs. Relationship Focused Transaction-FocusedRelationship-Focused

Short term thinkingMaking the sale has priority over most other considerationsInteraction between buyer and seller is competitiveSalesperson is self-interest oriented

Long term thinkingDeveloping the relationship takes priority over getting the saleInteraction between buyer and seller is collaborative.Salesperson is customer-oriented

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Classification ofPersonal Selling ApproachesStimulus Response SellingMental States SellingNeed Satisfaction SellingProblem Solving Selling

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Stimulus Response Selling

Salesperson Provides Stimuli

BuyerResponsesSought

Continue Process until Purchase Decision

Simple in design; assumes conditioned response improves likelihood of success; a risky and unreliable strategy.

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Mental States SellingAttention Interest Conviction Desire Action

Assumes buyer can be led through mental states; promotes one-way communication; a risky and unreliable strategy.

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Need Satisfaction Selling

Uncover and Confirm Buyer Needs

Present Offering to Satisfy Buyer Needs

Continue Selling until Purchase Decision

Interact with buyer to determine existing needs; present solutions to needs; solutions limited to sellers products.

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Problem Solving Selling

DefineProblem

GenerateAlternativeSolutions

ContinueSellinguntilPurchaseDecision

EvaluateAlternativeSolutions

Interact with buyer to determine existing and potential needs; present multiple solutions not limited to sellers products.

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Long-term AllyConsultative 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

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The Sales Process: An Overview

Developing Customer Relationships

Initiating Customer Relationships

Enhancing Customer Relationships

Selling Foundations

Selling Strategy

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The Sales Process: Selling FoundationsIn order to be successful in todays global business environment, salespeople must have a solid relationship building foundation. They must:

Possess Excellent Communication Skills

Understand Buyer Behavior

Behave Ethically

Be Trustworthy

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The Sales Process: Selling StrategyIn order to be successful in todays 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

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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

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Sales Careers

Module One Appendix

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Characteristics of Sales CareersJob SecurityAdvancement OpportunitiesImmediate FeedbackPrestigeJob VarietyIndependenceCompensation

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Job Security

Selling skills are readily transferable from industry to industry.and the need for good salespeople will never go away.Accordingly, good salespeople have opportunities within and across industries.

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Advancement Opportunities

Salespeople are familiar with the market, the customers, and the products. In addition, good salespeople have great interpersonal skills.These attributes help to make salespeople good candidates for leadership in the organization.

24Note: Not all salespeople make good leaders.some salespeople have trouble making the adjustment positions involving a lot of administrative work (e.g., management positions).

Immediate Feedback & PrestigeCustomer responses to the salespersons efforts are typically immediateproviding the salesperson performance feedback and the opportunity to adjust on the fly.The role of the professional salesperson is not well known by the general public and is eclipsed by negative stereo types . . . but that is slowly changing.

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Job Variety and IndependenceProfessional selling is rarely the same from day-to-day. The word routine doesnt apply.Usually, salespeople are accountable for attaining certain goalshow they get there is up to them. There is no time-clock and no taskmaster.

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CompensationGood salespeople usually earn an income well above the national average. Many salespeople earn six figure incomes (or higher).Income is most often tied directly to performance.

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Sales SupportPromote or Otherwise Support a Pull-Through StrategyMissionary SalespeopleDetailersSupport the Salespersons EffortsTechnical SupportInstallation

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Other Defining CharacteristicsHow the selling conductedTelephoneFieldThe primary focus of the selling activitiesGenerate new accountsMaintain existing accountsCombinationWhere the selling conductedInsideOutside

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Characteristics of Successful SalespeopleEmpathyEgo DriveEgo StrengthMotivationEthical BehaviorInterpersonal Communication Skills

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