Anderson ppt ch_01

Chapter OneChapter One

Introduction To Introduction To Personal Selling: Personal Selling:

It’s a Great Career!It’s a Great Career!

PowerPoint presentation prepared byDr. Rajiv Mehta

Copyright © Houghton Mifflin Company. All rights reserved. Chapter 1 | Slide 2

Chapter OutlineChapter Outline

• Marketing and personal selling: changing with the times

• Personal selling: a fresh look

• What is a customer?

• What is a product?

• Diverse roles of the professional salesperson

• What does a professional salesperson do?

• Using technology to sell better

• Benefits of professional personal selling as a career

• Careers for different types of individuals


Learning ObjectivesLearning Objectives

• How the concept of marketing is evolving.

• Why and how salespeople are being empowered.

• The differences between yesterday’s salesperson and today’s professional salesperson.

• What roles professional salespeople play in providing customer satisfaction within the framework of the marketing concept and customer-oriented selling.

After reading this chapter, you should understand:

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Learning Objectives Learning Objectives cont’dcont’d

• Many of the opportunities and advantages offered by a professional sales career.

• How telecommunications advances can help salespeople.

• The multiple career paths branching out from an initial job in personal selling.

After reading this chapter, you should understand:



Marketing and Personal Selling: Marketing and Personal Selling: Changing With the TimesChanging With the Times

The older, official AMA definition of marketing was:

• Marketing was largely viewed from the seller perspective by emphasizing management of the marketing mix and creating exchanges.

“The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.”

“The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.”


Marketing and Personal Selling: Marketing and Personal Selling: Changing With the Times Changing With the Times cont’dcont’d

• Marketing largely viewed from the seller perspective

• Marketing largely viewed from the seller perspective

ProductStrategyProductStrategy

PromotionStrategy

PromotionStrategy

PlaceStrategyPlace

Strategy

PricingStrategyPricing

Strategy

TargetMarketTargetMarket

• Emphasis on management of the marketing mix

• Emphasis on management of the marketing mix

• Marketing’s role is primarily to create exchanges

• Marketing’s role is primarily to create exchanges

Old marketing perspective:Old marketing perspective:

• Satisfaction of individual and organizational objectives

• Satisfaction of individual and organizational objectives



• Marketing is moving from a transaction-orientation to a customer-relationship-building orientation.

• New AMA definition shifts the perspective more to the customer side by focusing on delivering value and managing customer relationships.

The new official definition of marketing approved by the AMA in 2004 is:

“Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.”

“Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.”

Chapter Review Question:How does the new concept of marketing differ from the old one?



• Focuses on building long-term customer relationships

• Focuses on building long-term customer relationships

• Moved away from a transaction-orientation

• Moved away from a transaction-orientation • Focuses on delivering

value to customers• Focuses on delivering

value to customers

• Focuses on managing customer relationships

• Focuses on managing customer relationships

New marketing perspective:New marketing perspective:

ProductStrategyProductStrategy

PromotionStrategy

PromotionStrategy

PlaceStrategyPlace

Strategy

PricingStrategyPricing

Strategy

TargetMarketTargetMarket


Empowerment of SalespeopleEmpowerment of Salespeople

Personal selling is evolving owing to innovations in telecommunication technologies.

• Are becoming increasingly empowered and can access up-to-the-minute information that customers want

• Are moving away from “selling” toward “serving” customers by becoming more like customer consultants and business partners

• Think beyond a single sales transaction to building long-term relationships and partnerships with customers

Chapter Review Question:Why and how are salespeople

being empowered?



Personal Selling: A Fresh LookPersonal Selling: A Fresh Look

Personal selling offers an exciting, challenging, rewarding, and dynamic career.

• Are highly paid and among the most likely to be promoted to senior management

Without salespeople no organization could survive for long!

Without salespeople no organization could survive for long!

• Serve as “boundary spanners” who facilitate transactions, and relationships between buyers and sellers

• Use the latest technology, make effective sales presentations and demonstrations, negotiate “win-win” agreements

• Build profitable long-term relationships based on customer satisfaction and loyalty

• Focus on business-to-business selling where potential earnings and career opportunities are virtually unlimitedRoyalty-Free, Digital Vision/Getty Images


Personal Selling: A Fresh Look Personal Selling: A Fresh Look cont’dcont’d

• Understand that keeping current customers loyal is even more important than attracting new customers: nearly 70% of sales for most companies come from the repeat purchases of loyal customers

• Are well-educated, highly trained, customer-relationship-oriented career professionals

• Understand the “lifetime value” of loyal customers, so they focus on long-run relationships -- not single-transaction profitability

Professional salespeople:

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Royalty-Free, Stockdisc/Getty Images


Customer LoyaltyCustomer Loyalty

Loyal customers usually are the most profitable as they:

• Buy the largest dollar volume.• Cost less to serve because they are further up

the relationship learning curve with your company.

• Refer other customers and generate positive word-of-mouth promotion for your products and services.

• Readily purchase new products introduced by your company.

• Are receptive to up selling (buying higher-priced versions of products) and cross-selling (buying other types of products).

• Are the most forgiving when problems occur.Royalty-Free, Photodisc/Getty Images


Personal Selling: A Fresh LookPersonal Selling: A Fresh Look

• New professionalism required: negotiating “win-win” agreements.

• The “born salesperson” is a myth!

• Salesperson is committed to satisfy customers

• The marketing concept and customer-oriented selling: focusing on needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than the competition

Who sells?Who sells?

Virtually everyone!

What’s sold?What’s sold?

Nearlyeverything!



1. Consumers

What Is a Customer?What Is a Customer?

Categories of customers:Categories of customers:

2. Organizations

Types of organizational markets: Types of organizational markets:

1. Profit-oriented

2. Nonprofit organizations

ProducersProducers

Organizational Markets Organizational Markets

ResellersResellers GovernmentsGovernments

Chapter Review Question:List and briefly describe the three kinds of profit and nonprofit

organizational markets

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Royalty-Free, Digital Vision/Getty ImagesRoyalty-Free, Digital Vision/Getty Images


What Is a Product?What Is a Product?

Three Concepts of ProductsThree Concepts of Products

1. Core Product: what a customer actually seeks in terms of a problem-solving benefit

1. Core Product: what a customer actually seeks in terms of a problem-solving benefit

2. Tangible Product: the combination of a core product and its product characteristics

2. Tangible Product: the combination of a core product and its product characteristics

3. Augmented Product: core product, product characteristics, and supplemental benefits and services

3. Augmented Product: core product, product characteristics, and supplemental benefits and services

Chapter Review Question:

What is a product? How do core products, tangible products, and augmented products differ?


Diverse Roles of the Diverse Roles of the Professional SalespersonProfessional Salesperson

1. Retailers

2. Wholesalers

3. Industrial distributors

4. Manufacturers

5. Service firms

6. Nonprofit organizations

Selling roles vary across organizations such as:



Diverse Roles of the Diverse Roles of the Professional Salesperson Professional Salesperson cont’dcont’d

Three basic selling roles:

1. Order taking

2. Order supporting

3. Order creatingdv1212100




1. Order taking primarily requires response selling

– Responds to customer requests to purchase a certain product. This is the typical role of most retail store salespeople.

2. Order supporting primarily requires missionary selling

– Educates, builds goodwill, and provides service to customers. Furnishes information about products to middlemen who, in turn, recommend or sell the products to their own customers.




a) Trade selling:

– Salesperson responds to customer requests– Field service, such as monitoring product inventory and setting up

special displays, is more important in trade selling to retail stores, wholesalers, and distributors

c) Creative selling:– Salesperson stimulates demand among present

and potential new customers for a product– Includes sales development and sales

maintenance

b) Technical selling: – Technically trained salesperson (sales engineer)

helps customers solve their problems, often through complex product systems

3. Order creating includes:


Name the three basic selling roles, and describe the continuum of sales jobs ranging from simple response selling to complex creative selling.


The Personal Selling Process (PSP)The Personal Selling Process (PSP)

There are 7 interacting, overlapping steps in the professional personal selling cycle


The Personal Selling Process (PSP) The Personal Selling Process (PSP) cont’dcont’d

• Prospects: potential new customers

• Leads: the name and address or telephone number of a person or organization that may have a need for the company's product or service

• To become a prospect, a lead must be qualified in terms of:

1. Need or want

2. Authority to buy

3. Money or ability to buy

4. Eligibility to buy

1. Prospecting and qualifying1. Prospecting and qualifying



• An easy way to remember the qualifying process is the acronym -- N A M E

– Need

– Authority

– Money

– Eligibility



• Salesperson obtains detailed information about the prospective buyer and the buying situation, then develops a strategy for ensuring a favorable reception


2. Planning the Sales Call (Pre-approach)2. Planning the Sales Call (Pre-approach)

• Salesperson makes the initial contact and the vital first impression

3. Approaching the Prospect3. Approaching the Prospect

• Sales presentation strategy combined with a convincing product demonstration is selected and tailored to the prospect to favorably influence the outcome of the sales call

4. Making the Sales Presentation and Demonstration4. Making the Sales Presentation and Demonstration


• Objections or resistance can be viewed as oblique requests for more information so that the prospect can justify a purchase decision


5. Negotiating Sales Resistance or Objections5. Negotiating Sales Resistance or Objections

• The close may happen at any time during the sales process. Trial close: any well-placed attempt to close the sale

6. Confirming and Closing the Sale6. Confirming and Closing the Sale

• Servicing the account before, during, and after the sale furthers the "partnership" or long-term relationship with the customer

7. Follow-up and Servicing the Account7. Follow-up and Servicing the Account


Describe the seven stages in the professional personal selling process (PSP). Why do we depict it as a wheel?


Using Technology To Sell BetterUsing Technology To Sell Better

• Salespeople can enhance their productivity by using telecommunication tools

IntranetsIntranets

ExtranetsExtranets Fax MachinesFax Machines

ComputersComputers

PagersPagers

Cell phonesCell phones

Chapter Review Question:Give some examples of how salespeople can use different technologies to improve their efficiency and better serve prospects and customers.


Using Technology To Sell Better Using Technology To Sell Better cont’dcont’d

• For an interesting article on technology-enabled selling, see: – http://www.computerworld.com/news/1998/story/0,11280,43417,0

0.html

• For an interesting article on how technology can build profitable relationships and deliver increased returns, see: – http://www.infinityinfo.com/IndustriesTechnology.aspx

• Examples of technologies that salespeople are using include:

– http://www.cingular.com/blackberry8700c_consumer

– http://web.palm.com/promos/treo700w_microsoft.jhtml?cid=ms3

– http://www.pcworld.com/reviews/article/0,aid,123867,00.asp

http://www.computerworld.com/news/1998/story/0,11280,43417,00.html

http://www.computerworld.com/news/1998/story/0,11280,43417,00.html

http://www.infinityinfo.com/IndustriesTechnology.aspx

http://www.cingular.com/blackberry8700c_consumer

http://web.palm.com/promos/treo700w_microsoft.jhtml?cid=ms3

http://www.pcworld.com/reviews/article/0,aid,123867,00.asp


Benefits of a Professional Benefits of a Professional Personal Selling CareerPersonal Selling Career

What does a sales career offer?

• Financial rewards

• Perks

• Route to the top

• High demand and mobility

• Job freedom and independence

• Adventure and satisfaction

• Objective performance evaluation

• Contribution to society

Chapter Review Question:Discuss the benefits and drawbacks of a career in

personal selling.



Benefits of a Professional Benefits of a Professional Personal Selling Career Personal Selling Career cont’dcont’d

• To find out about average salary range and pay scales for different sales jobs, go to:

– http://swz.salary.com/salarywizard/layouthtmls/swzl_narrowbrief_SM06.html

© Royalty-Free/CORBIS

http://swz.salary.com/salarywizard/layouthtmls/swzl_narrowbrief_SM06.html

http://swz.salary.com/salarywizard/layouthtmls/swzl_narrowbrief_SM06.html


Careers for Different Careers for Different Types of Individuals Types of Individuals

• Many companies offer three paths to newly hired salespeople branching out into multiple career opportunities:

1. Professional Selling 1. Professional Selling

2. Sales Management 2. Sales Management

3. Marketing Management 3. Marketing Management


Multiple Career Paths in Multiple Career Paths in Personal Selling Personal Selling


Multiple Career Paths in Multiple Career Paths in Personal Selling Personal Selling cont’dcont’d

• Sales Representative

• Senior Sales Representative

• Master Sales Representative

• National or Key Account Sales Representative

Professional SellingProfessional SellingLower

Hierarchical Level

Upper Hierarchical

Level



• Branch Sales Manager

• District Sales Manager

• Zone, Division, or Regional Sales Manager

• National Sales Manager

• Vice President Of Sales

Sales ManagementSales ManagementLower

Hierarchical Level

Upper Hierarchical

Level



• Product or Brand Manager

• Director of Product Development

• Vice President of Marketing

• Senior Vice President

• President

• CEO

Marketing ManagementMarketing ManagementLower

Hierarchical Level

Upper Hierarchical

Level


Master Sales

Representative

Master Sales

Representative

Senior

Sales Representative

Senior


Sales RepresentativeSales Representative

Multiple Career Paths in Multiple Career Paths in Personal Selling Personal Selling cont’dcont’dPr

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Prof

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National or Key Account




Sale

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anag

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Sale

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V.P.Sales

National

Sales Manager

National

Sales Manager

Zone, Division, Or Regional Sales Manager

Zone, Division, Or Regional Sales Manager

District Sales ManagerDistrict Sales Manager

Branch Sales ManagerBranch Sales Manager



CEOCEO

PresidentPresident

Senior Vice President

Senior Vice President

Vice President of

Marketing

Vice President of

Marketing

Director of

Product Development

Director of

Product Development

Product or Brand ManagerProduct or Brand Manager

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ketin

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Mar

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Ethical Situation: Ethical Situation: What Would What Would YouYou Do? Do?

Discussion Question:

On your first sales call on one of your company’s best customers, the purchasing agent smilingly tells you: “I had a special arrangement with the salesperson who used to call on me from your company. Every time I placed an order, he gave me a nice gift. Are you going to continue that policy?”


Key TermsKey Terms

• Customer-Oriented Selling– Focus on identifying customers’ needs and engaging in selling and servicing

behaviors that help build and maintain a high level of customer satisfaction and loyalty in the long run.

• Professional Salesperson – Salesperson who sees a sales career as a true profession for which he or she

must be well educated, well prepared, and thoroughly professional in order to negotiate successfully with professional buyers.

• Augmented Product– Complete bundle of benefits offered by a product, including its core function,

various enhancing characteristics, and supplemental benefits and services.• Missionary Selling

– Educating, building goodwill, and providing services to customers (e.g., doctors and dentists) by giving them samples and information about products and services (such as new pharmaceuticals and medicines to prescribe or recommend for their patients).


Key Terms Key Terms cont’dcont’d

• Trade Selling– Creative field service to wholesale and distributor customers, such as

expediting orders, taking reorders, restocking shelves, setting up displays, providing in-store demonstrations, and distributing samples to store customers.

• Order Taking – Processing routine orders or reorders for products that have been sold

previously to the buying firm.

• Order Supporting– The process of having minimal involvement in sales generation but instead

serving as an assistance-provider to customers.

• Order Creating– The process of identifying prospective buyers, providing them with information,

motivating them to buy, confirming the sale, and following up after the sale has been made to ensure customer satisfaction. Trade, technical, and creative salespeople all do order creating in varying degrees.


Key Terms Key Terms cont’dcont’d

• Extranets– Corporate networks that allow communication between a company and

selected customers, suppliers, and business partners.

• Intranets – Internal corporate networks that allow salespeople and other employees

within a company to obtain information and communicate with each other.

• Personal Selling Process (PSP)– The seven interacting, overlapping stages that every salesperson, no matter

what the product or service being sold, must carry out.

• Wheel of Personal Selling– Depiction of the seven stages of the PSP as a continuous cycle or wheel

carried out by professionals in the field of sales.

• Prospecting– First step in the PSP where salespeople find leads and qualify them on four

criteria: Need, Authority, Money, and Eligibility (NAME) to buy.


Chapter Review QuestionsChapter Review Questions

1. Describe the myth of the “born” salesperson.

2. Explain the relationships among personal selling, the “marketing concept,” and the “customer-oriented selling.”

3. What types of creative salespersons are discussed in this chapter?


Topics for Thought and Topics for Thought and Class DiscussionClass Discussion

1. Have you ever known or met a person who appeared to be a “natural-born” salesperson? What made you think he or she was a good salesperson? Based on what you now know about professional personal selling, do you think you could call this person a truly professional salesperson? Why or why not?

2. What kind of selling might you like to do? With what products and what customers would you prefer to work? What do you think would be some advantages and disadvantages of each kind of selling for you personally?

3. Think about why you would want a career in professional personal selling. What would motivate you best? Money? The opportunity to contribute to society? Job independence? Discuss your thoughts and feelings with classmates.


Internet ExercisesInternet Exercises

1. Assume that you are graduating from college soon with a dual major in marketing and finance and that you are interested in learning about different career opportunities for salespeople. Using your college’s online database resources, develop general descriptions for sales jobs in the following types of organizations (remember that “salesperson” may not necessarily be the job title advertised). What are the similarities and differences among the “sales” jobs?

• Financial services firm (e.g., Fidelity or Merrill Lynch)• Food manufacturer (e.g., Pillsbury or Kellogg)• Not-for-profit institution (e.g., Kimmel Center for the Performing Arts in

Philadelphia or a large private university)• Major sports team (e.g., Chicago Bears or Los Angeles Lakers)


Internet Exercises Internet Exercises cont’dcont’d

2. As a soon-to-be college graduate, you plan to start your career in sales, and you have interviews set up with the four companies, named below. Prior to the interviews, you feel that it would be to your advantage to talk with the interviewer about the career advancement opportunities available to those who start out in sales. To prepare for your interviews, go to the websites for these four companies and anywhere else you can think of to learn more about the career paths leading up from sales at these companies:

• Black & Decker• Kimberly Clark• Nestlé Foods • Xerox


Projects for Personal GrowthProjects for Personal Growth

1. You have just inherited a pencil manufacturing business. Pencils are hardly a glamorous product, but there is a large and competitive market for them. See if you can develop a description of your product that would help your sales staff sell the core, tangible, and augmented product.

2. Use what you have learned about what professional salespeople do to sell one of your classmates something right there in the classroom—a pen, chair, book, pair of shoes, whatever. Once you’ve successfully sold to the classmate, try selling to your instructor!


Case 1.1: Decisions! Decisions! Case 1.1: Decisions! Decisions! Which Career Path Should I Choose?Which Career Path Should I Choose?

1. Do you think John should declare a career path now? If not, why not?

2. Taking into account John’s attitudes, strengths, and weaknesses, what advice would you give John about each of the three career paths for him?

3. If forced to choose, which career path would be best for John? Explain your answer.


Case 1.2: What? You Want To Be Case 1.2: What? You Want To Be a Salesperson?a Salesperson?

1. Why do you think Paula’s parents are not happy about her going into a sales career? What kind of misconceptions about personal selling do they have?

2. To convince her parents that sales is the right place to begin her business career, what are the points Paula should make when she calls her parents?

3. If Paula cannot persuade her parents to see personal selling in a positive light, what would you advise her to do?

Case 1.2 is found online at http://college.hmco.com/pic/andersonps2e.

http://college.hmco.com/pic/andersonps2e





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