MKTG261: Contemporary SellingDr. David Allbright

Chapter 1---

Introduction to Selling

TODAY’S TOPICS

• Why study selling techniques?• Large percentage of available jobs = SALES• Consider the benefits of a selling career• Typical sales roles and activities

• Salespeople are NOT “NATURALLY BORN”• You can LEARN / PRACTICE how to influence others!

• If time permits... Textbook study advice

DEFINITION

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PROFESSIONAL SELLING is......a person-to-person business activity in which a salesperson strives to UNCOVER and satisfy the NEEDS and DESIRES of a buyer to the long-term, MUTUAL BENEFIT of BOTH parties

• ACCOMPLISH GOALS that are important to you

• INFLUENCE and PERSUADE people to MAKE CHANGES that matter

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Why Learn About Personal Selling Processes?

McGraw-Hill/Irwin

• FACE-2-FACE DIALOGUE

• Create and nurture LONG-TERM RELATIONSHIPS

• MUTALLY-BENEFICIAL

• EXCHANGES of VALUE

Everyone "SELLS"(Beyond Just PRODUCTS and SERVICES)

SELLING / INFLUENCE / PERSUASION techniques are used for:

• Job seeking / interviewing

• Asking professor for "override" to enter class

• Asking someone out on a "date"

• Asking friends to “go in half” to pay for a trip

• Recruiting volunteers for a church effort

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EVERYONE SELLS

• RECRUIT INVESTORS for a new startup

• PERSUADE BOSS to agree to raises and promotions

• Supervisors attempt to obtain COOPERATION and COMMITMENTS from employees to complete tasks

• Engineers attempt to CONVINCE executives to fund and support their R&D projects

• PERSUADE folks in another department to CHANGE the way they are doing things

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Professional Career in Selling?

OPPORTUNITY:• Highest Number

of Jobs in US and Worldwide

(US Dept of Labor...Occupational Outlook Handbook)

List on next slide -->

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JOB OPPORTUNITIES Projected Employment Stats

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ContinuedGrowth

MANY FIRST JOBS after graduation = SALES

• SELLING = one of largest percentage of jobs in the world

• Survey of FIRST JOB TAKEN by undergraduates(Georgetown University Center on Education and the Workforce, 2012)

• SALES ranks #1 as first job taken by MARKETING majors

• Also ranked #2 or #3 for OTHER BUSINESS MAJORS:-- economics, -- finance, -- operations management, -- human resources, -- international management, -- and management information systems

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FIRST JOB taken by NON-BUSINESS MAJORS

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SALES also ranked as one of the TOP FIVE first jobs taken by grads of OTHER MAJORS across the campus including:

• Social Sciences

• Natural Sciences

• Physical Sciences

• Liberal Arts

• Communications

• Journalism

Beyond Paycheck... INTRINSIC REWARDS

• Independence / autonomy• Travel• Meet many people• See different environments

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AUTONOMY = INDEPENDENCEVariety! New Places! Meet New Faces!

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“Being able to meet with so many new people is my favorite part of selling—it sure beats being behind a desk and computer all day!”

Lauren BeardenAT & T Account Executive

Creating Your Own Future

• Large – small company• Government – mom/pop• Fresh vs. older familiar offerings• Sell what you love / believe?• Variety of situations / problems• Growing / shrinking firms• Different company cultures• Different regions / countries• Travel and see the world –

on an expense account (OPM)!

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Selling is Pathway to Management

MANAGEMENT OPPORTUNITIES• Lead a team of salespeople• Regional / Territory Manager• Accounts / Relationship Manager

(MORE LATER)

PATHWAY TO THE TOP...• Sales is one of the leading pathways

to the CEO suite!

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Role of Salespeople?

• CREATE new relationships– VALUE enhancer for clients– INFORMATION PROVIDER (for both sides)

• NURTURE and EXPAND relationships– Client RELATIONSHIP MANAGER– Account TEAM COORDINATOR– Vendor Relationship Manager– Distribution Channel Manager

(Discussed later…)

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Why Are Salespeople Paid More?

FINANCIAL REWARDSSalaries on next slide -->

Higher pay for “CARRYING THE BAG”

You go forth to CREATE INCOME…for the FIRM…and for YOURSELF !

REVENUE GENERATOR vs.COST and OVERHEAD?

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Career in Selling: Average Compensation

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Average Annual CompensationYOU MAY BE PAID MORE THAN YOUR BOSS!

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Source: 2004 Salary Survey, Sales & Marketing Management, May 2004, p. 29.

• Business-to-Consumer sales (B2C)– Retail sales– Internet - Direct Marketing– Telemarketing– Events, seminars, street selling, door-to-door

• Business-to-Business sales (B2B)– Connecting your company with other companies– Create and nurture MAJOR ACCOUNTS– Tradeshows (gathering of industry insiders)– Supply Vendors – Distribution Channels

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Examples of Personal Selling Jobs

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Categories of Sales Jobs

• LOCATION OF CONTACT for seller – customer? – Outside “field” sales...

VSInside "non-traveling" sales

• STAGE of RELATIONSHIP?– Creating NEW business account

VS Nurturing CURRENT relationship

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• IDENTIFYING and CREATING NEW OPPORTUNITIES and SECURING COMMITMENT?– Find / recruit / educate / inform / persuade?

VS– Order taker... simply waiting to receive an order?

• Type of VALUE OFFERING?– Products... VS... Services... VS... "Conceptual Selling"– Needs Analysis / Uncover Dissatisfaction / Problems– Offer solutions / solve problems– New ideas / way of doing things / extensive change

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Categories of Sales Jobs (cont.)

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Innovation and Creativity

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WHICH TYPE OF SALES ROLE USUALLY GETS

PAID MORE?

Now You Know WhyRETAIL Sales is Relatively LOW PAYING

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How Outside “Field” Salespeople Typically Spend Their Time Each Week

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SELLING TIME

NON-SELLING TIME

Characteristics of Successful Salespeople

• Self-Motivation• Dependability and trustworthiness• Customer and product knowledge• Able to use information technology• Analytical skills• Flexibility• Creativity• Confidence• Ethical sales behavior• Emotional intelligence• Attitude - positivity• Face-2-face communication skills

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• Salespeople are NOT BORN... they are DEVELOPED

Studies show...

• Characteristics you are "born with" such as: gender, height and outgoing personality are UNRELATED to sales PERFORMANCE

• SKILLS can be LEARNED through PRACTICE... You can learn how to INFLUENCE / PERSUADE others

• That is why companies spend $ Billions on TRAINING... IT WORKS !!

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Are Salespeople Born or Made?

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FACE-2-FACE INTERACTIONvs. Other Forms of Marketing

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Class focus is on…FACE-2-FACE DIALOGUE

Different from…• ADVERTISING• PROMOTIONS• PUBLICITY• WORD OF MOUTH• EMAIL / SOCIAL MEDIA

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Marketing Communication ApproachStrengths / Weaknesses?

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Superbowl Ads vs. Personal Selling

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100 Million viewers in US$4 Million (for 30 second ad)========================$4 per 100 viewers 4 cents per 1 viewer

COST OF PERSONAL SELLING?Visit one client in California

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Tips for Studying Textbook(Tests are Multiple Choice)

2 x 2 Matrix = Can Create Test Questions

Study CONCEPTS...(especially in BOLD and Italics)

Download STUDY GUIDE from website...(go lookup the study concepts in the textbook)

Next...

Other classes?

Integrated Marketing Communications (IMC)

Advertising / Promotions / Marketing StrategyInternet / Social Media / Distribution / RetailingConsumer Behavior / Psychology

INTEGRATED MARKETING COMMUNICTIONS (IMC)

COORDINATE a variety of marketing activities to maximize the total impact of the combined programs upon clients / customers

• MESSAGES / COLORS / LOGOS / NAMESall are consistent throughout…

• ADVERTISING• PROMOTIONS• INTERNET / SOCIAL MEDIA• PERSONAL SELLING

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IMC at STOUFFERS

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• Stouffer’s introduced its new Spa Cuisine Classics• SALES called on supermarkets and wholesale clubs. • ADVERTISING was created to generate awareness in

consumers’ minds. • COUPONS were offered to consumers to create interest

and spur more rapid sales. • PROMOTIONS (taste tests) in stores were offered to

build excitement and word of mouth. • PUBLICITY was generated that focused on the

dinners’ balance of “great taste combined with the nutrition of whole grains”

“Go-To Market” Strategy

Firms have options for how they can approach customers with a VALUE PROPOSITION

SALESFORCE INTENSIVE approach vs. MULTI-CHANNEL approach…– direct to consumer– internet– telemarketing– field sales representatives– selling to resellers– business partnerships– franchising

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