Personal Selling and the Marketing Concept

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Definition of Definition of Personal Personal SellingSelling

Person-to-person communication with a prospect

Personal selling is a process of• Developing relationships• Discovering needs• Matching products with needs• Communicating benefits

Viewed as a process that adds value

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Broad Concept of Broad Concept of ProductProduct

Includes:

Information

Services

Ideas

Issues

“Hard goods”

What is the main product the following companies offer?

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Strategic/ConsultativeStrategic/ConsultativeSelling ModelSelling Model

FIGURE 1.1

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Personal Selling in the Information Personal Selling in the Information

AgeAge

An evolution from the industrial economy to the information economy

Began in the 1950s

New emphasis is information exchange rather than producing goods

Implications for personal selling

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A Shift in EmphasisA Shift in EmphasisIndustrial economy

Advances occur in transportation and manufacturing

Strategic resources are capital and natural resources

Products and factories define the business

Sales success means meeting sales quotas

Information economy

Advances occur in information technology

Strategic resource is information

Business is defined by customer relations

Sales success depends on adding value

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Personal Selling as an Personal Selling as an Extension of the Marketing Extension of the Marketing

ConceptConceptMove from a product orientation (peddling)

to a customer orientation (partnering)

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Important Role of Personal SellingImportant Role of Personal Selling

Often the major promotional method

Firms invest in personal selling

Personal selling has evolved because:• Products and services are more complex• Competition has greatly increased• Customer demand for quality, value, and service has

risen sharply

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Evolution of Personal SellingEvolution of Personal Selling

Marketing era begins (early 1950s)• Salespeople as a source of strategic information

on product/market/service

Consultative selling era (late 1960s to early 1970s)• Mass markets break into target markets• Emphasis on need identification• Information sharing and negotiation replace

manipulation

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Evolution of Personal SellingEvolution of Personal Selling

Strategic selling era (early 1980s)• Market niches require more planning• Equal emphasis on strategy and tactics • Product positioning vital

Partnering era (1990 to present)• Customer, not product, as driving force• Emphasis on strategies that create customer value

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Evolution of Consultative Evolution of Consultative SellingSelling

Transactional selling• Process that serves the

buyer primarily interestedin price and convenience

Consultative selling• Process that developed from

the marketing concept,emphasizing needidentification

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Evolution of Consultative Evolution of Consultative SellingSelling

Features of consultative selling include:

• Customer is a person to be served, not a prospect to be sold

• Two-way communication identifies (diagnoses) customer’s needs; no high-pressure sales presentation

• Emphasis on information giving, problem solving, and negotiation rather than manipulation

• Emphasis on service after the sale

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Evolution of Strategic Evolution of Strategic SellingSelling

A Strategic Market Plan• Outlines necessary methods and resources• Considers areas to be coordinated

Finance • Personnel Production • Marketing

• Influences the sale of products• Serves as guide for strategic selling plan

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Strategy and TacticsStrategy and Tactics

Tactics• Specific techniques,

practices, and methods used incustomer interaction

Strategy• Carefully conceived plan needed to accomplish

sales objectives • A prerequisite to tactical success

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Strategy vs. Tactics Strategy vs. Tactics ExerciseExercise

Use a fact sheet comparing your product to the competition

Analyze the features of your leading competitors

Use specific questions to diagnose needs

Analyze a territory to determine those with specific needs

StrategyTactic

Identify the following:

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Selling ModelSelling Model

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Develop a Personal Develop a Personal Selling PhilosophySelling Philosophy

Adopt the marketing concept

Value personal selling

Assume the role of a problem solver/partner

Step 1:

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Develop a Develop a Relationship Relationship

StrategyStrategy Adopt a win-win philosophy

Project a professional image

Maintain high ethical standards

Step2:

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Develop a Product Develop a Product StrategyStrategy

Become a product expert

Sell benefits, not features

Configure value-added solutions

Step3:

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Develop a Develop a Customer StrategyCustomer Strategy

Understand the buying process

Understand buyer behavior

Develop prospect base

Step4:

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Develop a Develop a Presentation Presentation

StrategyStrategy Prepare objectives

Develop a presentation plan

Provide outstanding service

Step5:

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Interrelationship of Interrelationship of Basic StrategiesBasic Strategies

FIGURE 1.7

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E-Commerce and the Complex E-Commerce and the Complex

SaleSale

Electronic business

Complex sales involve several forms of

information technology support, including:• Electronic product catalogs• Contact management systems• PowerPoint and Excel• Internet applications

Electronic commerce

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Evolution of PartneringEvolution of Partnering

Buzzword of 1990s, became business reality in 2000s

“Strategically developed, long-term relationship that solves the customer’s problems”

Relationship selling relies on a customized approach to each client

Enhanced with high ethical standards and CRM

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Example ofExample ofPartnering:Partnering:Cushman Cushman &&WakefieldWakefield

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Strategic AlliancesStrategic Alliances Formed by companies that have similar

business interests and, thus, gain a mutual competitive advantage

The goal is to achieve a marketplace advantage by teaming up with another firm

Highest form of consultative selling required to build win-win alliances

Can you cite some current examples of strategic alliances?

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Value CreationValue Creation

Value-added selling = creative improvements that enhance customer experience

The information economy rewards salespeople who add value at each step

When customer is not aware of value added by salespeople, the focus may shift to price

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Value-Value-AddedAddedSellingSellingExamplExamplee