Overview of Personal SellingOverview of Personal Selling

Module OneModule One

Learning ObjectivesLearning Objectives

1. Describe the evolution of personal selling from 1. Describe the evolution of personal selling from ancient times to the modern era.ancient times to the modern era.

2. Explain the contributions of personal selling to 2. Explain the contributions of personal selling to society, business firms, and customers.society, business firms, and customers.

3. Distinguish between transaction-focused 3. Distinguish between transaction-focused traditional selling and trust-based relationship traditional selling and trust-based relationship selling.selling.

Learning ObjectivesLearning Objectives

4.4. Discuss five alternative approaches to Discuss five alternative approaches to selling.selling.

5.5. Describe the three primary roles fulfilled by Describe the three primary roles fulfilled by consultative salespeopleconsultative salespeople

6.6. Understand the sales process as a series of Understand the sales process as a series of interrelated steps.interrelated steps.

Key ThoughtsKey Thoughts

• Selling has been around since there were Selling has been around since there were goods to trade.goods to trade.

• The role of the salesperson has evolved . . . becoming The role of the salesperson has evolved . . . becoming more professional.more professional.

• Salespeople play an important role in creating and Salespeople play an important role in creating and maintaining a strong economy.maintaining a strong economy.

• Salespeople are solution providers.Salespeople are solution providers.• Sales is a process focusingSales is a process focusing

on initiating, developing, and on initiating, developing, and enhancing customer relationships.enhancing customer relationships.

Personal Selling – DefinedPersonal Selling – Defined

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

IndustrialIndustrialRevolutionRevolution

Post-IndustrialPost-IndustrialRevolutionRevolution

War andWar andDepressionDepression

ModernModernEraEra

1800s1800s 1900s1900s 2000s2000s

Evolution of Personal SellingEvolution of Personal Selling

Selling function Selling function became more became more

structuredstructured

Selling function Selling function became more became more

structuredstructured

Peddlers selling door Peddlers selling door to door . . . served to door . . . served as intermediariesas intermediaries

Peddlers selling door Peddlers selling door to door . . . served to door . . . served as intermediariesas intermediaries

Business organizations Business organizations employed salespeopleemployed salespeopleBusiness organizations Business organizations employed salespeopleemployed salespeople

Selling function Selling function became more became more professionalprofessional

Selling function Selling function became more became more professionalprofessional

As we begin the 21st century, selling continues to develop,As we begin the 21st century, selling continues to develop,becoming more professional and more relationalbecoming more professional and more relational

As we begin the 21st century, selling continues to develop,As we begin the 21st century, selling continues to develop,becoming more professional and more relationalbecoming more professional and more relational

Contributions of Personal Selling: Contributions of Personal Selling: Salespeople and SocietySalespeople and Society

• Salespeople help stimulate Salespeople help stimulate the economythe economy

• Salespeople help with the Salespeople help with the diffusion of innovationdiffusion of innovation

Contributions of Personal Selling: Contributions of Personal Selling: Salespeople and the Employing FirmSalespeople and the Employing Firm

• Salespeople generate revenueSalespeople generate revenue

• Salespeople provide market Salespeople provide market research and customer feedbackresearch and customer feedback

• Salespeople become future leaders Salespeople become future leaders in the organizationin the organization

Contributions of Personal Selling: Contributions of Personal Selling: Salespeople and the CustomerSalespeople and the Customer

• Salespeople provide solutions to Salespeople provide solutions to problemsproblems

• Salespeople provide expertise and Salespeople provide expertise and serve as information resourcesserve as information resources

• Salespeople serve as advocates for Salespeople serve as advocates for the customer when dealing with the the customer when dealing with the selling organizationselling organization

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

Transaction-FocusedTransaction-FocusedTransaction-FocusedTransaction-Focused Relationship-FocusedRelationship-FocusedRelationship-FocusedRelationship-Focused• Short term thinkingShort term thinking• Making the sale has Making the sale has

priority over most other priority over most other considerationsconsiderations

• Interaction between Interaction between buyer and seller is buyer and seller is competitivecompetitive

• Salesperson is self-Salesperson is self-interest orientedinterest oriented

• Long term thinkingLong term thinking• Developing the Developing the

relationship takes priority relationship takes priority over getting the saleover getting the sale

• Interaction between Interaction between buyer and seller is buyer and seller is collaborative.collaborative.

• Salesperson is Salesperson is customer-orientedcustomer-oriented

Classification ofClassification ofPersonal Selling ApproachesPersonal Selling Approaches

• Stimulus Response SellingStimulus Response Selling

• Mental States SellingMental States Selling

• Need Satisfaction SellingNeed Satisfaction Selling

• Problem Solving SellingProblem Solving Selling

Stimulus Response SellingStimulus Response Selling

Salesperson Salesperson Provides Provides

StimuliStimuli

BuyerBuyerResponsesResponses

SoughtSought

Continue Continue Process until Process until

Purchase Purchase DecisionDecision

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

Mental States SellingMental States Selling

AttentionAttentionAttentionAttention InterestInterest InterestInterest ConvictionConviction ConvictionConviction DesireDesire DesireDesire ActionAction ActionAction

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

Need Satisfaction SellingNeed Satisfaction Selling

Uncover and Uncover and Confirm Buyer Confirm Buyer

NeedsNeeds

Uncover and Uncover and Confirm Buyer Confirm Buyer

NeedsNeeds

Present Present Offering to Offering to

Satisfy Buyer Satisfy Buyer NeedsNeeds

Continue Selling until Purchase Decision

Interact with buyer to determine existing needs; present solutions to needs; solutions limited to seller’s products.

Problem Solving SellingProblem Solving Selling

DefineDefineProblemProblem

GenerateGenerateAlternativeAlternativeSolutionsSolutions

ContinueContinueSellingSelling

untiluntilPurchasePurchaseDecisionDecision

EvaluateEvaluateAlternativeAlternativeSolutionsSolutions

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

Long-term AllyLong-term Ally

Consultative SellingConsultative Selling

The process of helping The process of helping customers reach their customers reach their

strategic goals by using strategic goals by using the products, service, the products, service, and expertise of the and expertise of the selling organization.selling organization.

Strategic OrchestratorStrategic Orchestrator

Business ConsultantBusiness Consultant

The Sales Process: An OverviewThe Sales Process: An Overview

Developing Developing Customer Customer

RelationshipsRelationships

Initiating Initiating Customer Customer

RelationshipsRelationships

Enhancing Enhancing Customer Customer

RelationshipsRelationships

Selling Selling FoundationsFoundations

Selling Selling StrategyStrategy

The Sales Process: Selling FoundationsThe Sales Process: Selling Foundations

In order to be successful in today’s global business In order to be successful in today’s global business environment, salespeople must have a solid relationship environment, salespeople must have a solid relationship building foundation. They must: building foundation. They must:

Possess Excellent Communication SkillsPossess Excellent Communication Skills

Understand Buyer BehaviorUnderstand Buyer Behavior

Behave EthicallyBehave Ethically

Be TrustworthyBe TrustworthyBe TrustworthyBe Trustworthy

The Sales Process: Selling StrategyThe Sales Process: Selling Strategy

In order to be successful in today’s global business In order to be successful in today’s global business environment, salespeople must also think and act environment, salespeople must also think and act strategically. The must develop strategies for: strategically. The must develop strategies for:

Their Sales TerritoriesTheir Sales Territories

Each Sales CallEach Sales Call

Each CustomerEach Customer

Each strategy is related to the other

Adding Value through Follow-up, Adding Value through Follow-up, Self-leadership, and TeamworkSelf-leadership, and Teamwork

The Sales ProcessThe Sales Process

• ProspectingProspecting• PreapproachPreapproach• Presentation PlanningPresentation Planning• Approaching the CustomerApproaching the Customer

• Sales Presentation Delivery Sales Presentation Delivery • Earning Customer CommitmentEarning Customer Commitment

Developing Developing Customer Customer

RelationshipsRelationships

Initiating Initiating Customer Customer

RelationshipsRelationships

Enhancing Enhancing Customer Customer

RelationshipsRelationships

Sales CareersSales Careers

Module One – AppendixModule One – Appendix

Characteristics of Sales CareersCharacteristics of Sales Careers

• Job SecurityJob Security• Advancement OpportunitiesAdvancement Opportunities• Immediate FeedbackImmediate Feedback• PrestigePrestige• Job VarietyJob Variety• IndependenceIndependence• CompensationCompensation

Job SecurityJob 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.

Advancement OpportunitiesAdvancement 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.

Immediate Feedback & PrestigeImmediate Feedback & Prestige

Customer responses to the salesperson’s efforts are typically immediate…providing 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.

Job Variety and IndependenceJob Variety and Independence

Professional selling is rarely the same from day-to-day. The word “routine” doesn’t apply.

Usually, salespeople are accountable for attaining certain goals…how they get there is up to them. There is no “time-clock” and no taskmaster.

CompensationCompensation

Good 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.

Sales SupportSales Support

• Promote or Otherwise Support Promote or Otherwise Support a “Pull-Through” Strategya “Pull-Through” Strategy– Missionary SalespeopleMissionary Salespeople– DetailersDetailers

• Support the Salesperson’s Support the Salesperson’s EffortsEfforts– Technical SupportTechnical Support– Installation Installation

Other Defining CharacteristicsOther Defining Characteristics

How the selling conductedHow the selling conducted– TelephoneTelephone– FieldField

The primary focus of the selling activities– Generate new accounts– Maintain existing accounts– Combination

Where the selling conducted– Inside– Outside

Characteristics of Successful SalespeopleCharacteristics of Successful Salespeople

• EmpathyEmpathy• Ego DriveEgo Drive• Ego StrengthEgo Strength• MotivationMotivation• Ethical BehaviorEthical Behavior• Interpersonal Interpersonal

Communication SkillsCommunication Skills