8/12/2019 Professional Salesmanship-Chap02.ppt
1/40
FUNDAMENTALS OF SELLINGCustomers For Life Through Service
13th
Edition
Charles M Futrell
8/12/2019 Professional Salesmanship-Chap02.ppt
2/40
Relationship Marketing:
Where Personal SellingFits
Chapter
2
8/12/2019 Professional Salesmanship-Chap02.ppt
3/40
Chapter
2
2-3
8/12/2019 Professional Salesmanship-Chap02.ppt
4/40
2-4
The Purpose of Business is to:
Increase the general well being of humankind
through the sales of goods and services
8/12/2019 Professional Salesmanship-Chap02.ppt
5/40
2-5
This Requires
Making a profit in order to operate the
business and to provide beneficial products
to the marketplace
8/12/2019 Professional Salesmanship-Chap02.ppt
6/402-6
Profit is a Means to an End
Profit is needed to serve humankind
Profit is needed to operate the business
Profit is needed to provide products to the
marketplace
8/12/2019 Professional Salesmanship-Chap02.ppt
7/402-7
The Two Basic Functions and Goal
of Business
Two Basic Functions of Business
Production of goods or creating of services
Marketing those goods and services
The Primary Goal of Business
Transform marketplace and workplace into an
environment where everyone is treated fairly
8/12/2019 Professional Salesmanship-Chap02.ppt
8/402-8
What is Marketing? Marketing is the activity, set of institutions, and
processes for creating, communicating,
delivering, and exchanging offerings that have
value for customers, clients, partners, andsociety at large.
8/12/2019 Professional Salesmanship-Chap02.ppt
9/402-9
The Production Concept
Companies are production oriented
We know what
people want theywant our product.
8/12/2019 Professional Salesmanship-Chap02.ppt
10/402-10
The Selling Concept
Characterized by product demonstrations and
unsophisticated sales techniques
Emphasis on the product
Product created and then sold
Management is sales-volume oriented
Stresses needs of the seller
8/12/2019 Professional Salesmanship-Chap02.ppt
11/402-11
The Marketing Concept
Emphasis is on customers wants
Customers wants drive production
Management is profit-oriented
Planning is long-term
Stresses wants of buyers
8/12/2019 Professional Salesmanship-Chap02.ppt
12/402-12
Marketings 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 repeatbusiness
8/12/2019 Professional Salesmanship-Chap02.ppt
13/402-13
Exhibit 2.2: The Marketing Group is the Link
Between Customers and the Organization
8/12/2019 Professional Salesmanship-Chap02.ppt
14/402-14
Product: Its More Than You Think
A goodis a physical object that can be
purchased
A serviceis an action or activity performed
for a fee
Value-added refers to benefits received that
are not included in the purchase price of a
good or service
8/12/2019 Professional Salesmanship-Chap02.ppt
15/402-15
Exhibit 2.3: Four Elements of the Marketing
Mix and Four Promotion Activities
8/12/2019 Professional Salesmanship-Chap02.ppt
16/402-16
What is Meant by the Term
Product?A productis a bundle of tangible and
intangible attributes, including package, color,
and brand, plus the services and even the
reputation of the seller
8/12/2019 Professional Salesmanship-Chap02.ppt
17/402-17
The Term Product May Refer to a
Good or Service
Examples
Goods - a physical object for sale
Automobile
Cell phone Prescription medicine
Services - an action or activity done for
others for a fee
Automobile repair
Wireless phone plan
Health insurance
8/12/2019 Professional Salesmanship-Chap02.ppt
18/40
2-18
The Good and the Service:
Automobile - repair services
Cell phone - wireless phone plane
Prescription medicine - health insurance
8/12/2019 Professional Salesmanship-Chap02.ppt
19/40
2-19
We Will Use the Terms Follow-up and
Service. What do They Mean?
Follow-uprefers to maintaining contact with acustomer in order to evaluate the
effectiveness of the product and the
satisfaction of the customer (More on this inChapter 14)
8/12/2019 Professional Salesmanship-Chap02.ppt
20/40
2-20
The Term Service May Refer to A:
Product, as insurance and advertise which issold by someone
Service, as customer servicewhich is an
activity offered by a seller in conjunction withthe purchase of a product, such as delivery,
repair, credit cards accepted, 800 telephone
number, web site, salesperson available tohelp customer (More on this in Chapter 14)
8/12/2019 Professional Salesmanship-Chap02.ppt
21/40
2-21
Customer Service by the Salesperson
Include:
Salesperson goes to customers business tohelp:
Resell products
Customer use productHandling complaints
Return damaged products
Provide samples
Suggest further business opportunities
(Above discussed in Chapter 1)
8/12/2019 Professional Salesmanship-Chap02.ppt
22/40
2-22
People Buy More Than the Product
People buy want-satisfaction as
Image of owning as a
Polo shirt vs. Wal-Mart shirt
Dodge Viper* vs. Volkswagen Vanagon*What the product will do
Its quality
*products and associated images used for illustrative purposes only
8/12/2019 Professional Salesmanship-Chap02.ppt
23/40
2-23
What is a consumer product?
A consumer product is produced for, and
purchased by, households or end consumers
for their personal use What is an example of a consumer product?
Toothpaste
TelevisionClothes
There Are Two General Types of Products -
Consumer and Industrial Products
8/12/2019 Professional Salesmanship-Chap02.ppt
24/40
2-24
There Are Two General Types of Products-
Consumer and Industrial Products Cont
What is industrial product?
An industrial product is sold primarily for use
in producing other products. Industrial users
are profit/nonprofit organizations that buygood and services for one of three purposes
1.To make other goods and services
2.To sell to consumer or other industrial users3.To conduct the organizations operations
8/12/2019 Professional Salesmanship-Chap02.ppt
25/40
2 25
The Key Phrases That Differentiate Between
Consumer and Industrial Products are:
Consumer product - personal use
Industrial product - producing other products
What is an example of an industrial product?
Airlines purchase airplanes
Boeing sells their airplanes to airlines
University buys computers
8/12/2019 Professional Salesmanship-Chap02.ppt
26/40
8/12/2019 Professional Salesmanship-Chap02.ppt
27/40
2 27
Price: Its Important to Success
Price refers to the value or worth of a productthat attracts the buyer to exchange money or
something of value for the product
8/12/2019 Professional Salesmanship-Chap02.ppt
28/40
2 28
Distribution Moves
Products to Customers
Three Customer Groups
A householdrefers to a decision-making unit
that buys for personal use
A firm is an organization that produces goods
and services
A government is an organization that has two
functions: The provision of goods and services to households and
firms
The redistribution of income and wealth
Cons mer and Ind strial Prod cts are
8/12/2019 Professional Salesmanship-Chap02.ppt
29/40
2 29
Consumer and Industrial Products are
Often Distributed Through Resellers
What are Resellers?
Resellers, such as wholesalers or retailers,
purchase products and then sell to
organizations and/or individuals
8/12/2019 Professional Salesmanship-Chap02.ppt
30/40
2 30
What Is a Wholesaler? The Wholesaler
(May Be Referred to as a Distributor)
Primarily engaged in buying, taking title to,
usually storing and physically handling goods
in large quantities, and reselling the goods,
usually in smaller quantities to
Retailers
Wholesalers
Manufacturers
8/12/2019 Professional Salesmanship-Chap02.ppt
31/40
2 31
Exhibit 2.5: Examples of Distribution Channels for
Consumer and Industrial Products
8/12/2019 Professional Salesmanship-Chap02.ppt
32/40
2 32
Promotion Tells People
Promotion increases sales by communicatingproduct information to potential customers
The four basic components of a firms
promotional effort are: (PAPS)Personal selling
Advertising
PublicitySales promotion
8/12/2019 Professional Salesmanship-Chap02.ppt
33/40
2 33
Exhibit 2.7: Examples of Each
Marketing Mix Element
8/12/2019 Professional Salesmanship-Chap02.ppt
34/40
2 34
Relationship Marketing
Relationship marketing is thecreation of customer loyalty
Targets a major customer
that it wants to sell to nowand in the future
Establishes a long-term
collaborative relationship
R l ti hi M k ti d
8/12/2019 Professional Salesmanship-Chap02.ppt
35/40
2-35
implement
relationship
marketing
Relationship Marketing and
the Sales Force
Salespeople
Th L l f R l ti hi
8/12/2019 Professional Salesmanship-Chap02.ppt
36/40
2-36
Three Levels of Relationship
Marketing
Transaction selling: customers are sold to
and not contacted again
Relationship selling: the seller contacts
customers after the purchase to determine if
they are satisfied and have future needs
Partnering: the seller works continually to
improve its customers operations, sales, and
profits
P i i h C
8/12/2019 Professional Salesmanship-Chap02.ppt
37/40
2-37
Partnering with Customers
Encourages both thebuyer and seller to
share information
Two companies worktoward the same
objective
C lt ti S lli
8/12/2019 Professional Salesmanship-Chap02.ppt
38/40
2-38
Consultative Selling
The process of helping the customer achievestrategic short and long-term goals through
the use of the sellers goods and/or services
A highly interactive dialogue between asalesperson and a customer
A balanced exchange of information
8/12/2019 Professional Salesmanship-Chap02.ppt
39/40
2-39
Three Consultative Selling Roles for
the 21stCentury
Exhibit 2 11: Marketing and Personal
8/12/2019 Professional Salesmanship-Chap02.ppt
40/40
2-40
Exhibit 2.11: Marketing and Personal
Selling Provide Service to Customers