380 personal selling · the subject and to develop the student’s presentation skills. lorna...

380 Personal Selling

Lorna Valdes Personal Selling1

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Personal Selling

Introduction

Session 1

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Objectives of MKT 380 – Personal Selling

• At the end of the course the student will be able to:1. Explain the various communication styles.

2. Develop ethical sensitivity in negotiating with people

3. Apply theories of buyer motivation.

4. Determine wants/needs of the customer.

5. Create a prospecting plan.

6. Explain and demonstrate one’s product and/or service.

7. Anticipate and handle sales resistance.

8. Develop and use closing techniques.

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• In addition, students will develop and present their Personal Brand.

• Students will: • -Have a better understanding of their personal brand

essence and personal brand role.

• -Determine their ‘added value’

• -Deliver a 2/3 minute ‘Elevator Pitch’ presentation of themselves

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• This course is designedto be interactive, experiential, and pragmaticas well as conceptual and creative.

• The course approach:

• A knowledge transfer segmentcovering a specific topic. The topic isthen integrated with the Case Study coverage in the same period. Eachsegment concentrates on the key principles, techniques andvocabularyrelated to that topic. The range of topics is detailed in the coursedescription.

• The learning by doing segment, a case study, role-play, and other practical exercises that are designed to promote a general awareness of the subject and to develop the student’s presentation skills.

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• The marking structure for the course is 30 % eachfor the class project and class participation, 10% mid term exam and 30% for the final exam.

• Student’s active involvement in this course is absolutely vital. It is the individual student’s responsibility to take or create opportunities to initiate and participate in discussions and presentations.

Note: In this 3-hour class half absences are noted - attendance is taken at the start and when class resumes after the break. No

Open Computers, No Visible Telephones, No Exceptions!

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• Course Book(required reading):

Personal Sellingby Anderson, Dubinsky, Mehta (Houghton Mifflin 2 nd edition) ISBN 0-13-196854-8

•

Bring the book to each class.

Read the Text, Come Prepared, and Get Involved



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Personal Selling Course Syllabus

• Session 1 -Introduction to Personal Selling - Adjusting to the Dynamic Personal Selling Environment Book chapter 1

• Session 2/3– Prospecting and Qualifying: Filling the Salesperson’s “Pot of Gold” Book chapter 4

• Session 3/4 –Planning the Sales Call: Steps to a Successful ApproachBook chapter 5

• Session 4/5– Sales Presentation and Demonstration: The Pivotal Exchange Book chapter 6

• Session 5/6– Negotiating Sales Resistance for “Win-Win”

Book chapters 7

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Personal Selling Course Syllabus

• Session 6/7–Confirming and Closing the Sale: Start of the Long-Term Relationship Book chapter 8

• Session 7/8– Communicating Effectively with Diverse Customers

Book chapter 12

• Session 8/9 –Understanding and Negotiating with Organizational Markets Book chapters 10

• Session 10/11 –Ethical and Legal Considerations in Personal Selling

Book chapters 3

• Session 12 –Course Review

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Chapter OneChapter One

Introduction To Introduction To Personal Selling: Personal Selling:

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

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Learning 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 cont’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:


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Marketing and Personal Selling: Changing 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.”



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

• 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 cu stomers and for managing customer relationships in ways that benefi t the organization and its stakeholders.”

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

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

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Empowerment 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?


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Personal 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

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Personal Selling: A Fresh Look cont’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

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Customer 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.

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Personal 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!




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1. Consumers

What Is a Customer?

Categories of customers:

2. Organizations

Types of organizational markets:

1. Profit-oriented

2. Nonprofit organizations

Producers

Organizational Markets

Resellers Governments

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

organizational markets



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What Is a Product?

Three Concepts of Products

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

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

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?

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What is a Product?

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What Is a Product?

Think of a tangible product.

1. Briefly describe the actual product.

2. What are its core benefits?

3. What are the augmented aspects?

iPad 2, plastic table cloth, box of chocolate, Rolex watch, spare tire

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Diverse Roles of the Professional Salesperson

1. Retailers

2. Wholesalers

3. Industrial distributors

4. Manufacturers

5. Service firms

6. Nonprofit organizations

Selling roles vary across organizations such as:


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Diverse Roles of the Professional Salesperson cont’d

Three basic selling roles:

1. Order taking

2. Order supporting

3. Order creatingdv1212100




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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.


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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.

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The Personal Selling Process (PSP)

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

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The Personal Selling Process (PSP) cont’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 want2. Authority to buy3. Money or ability to buy4. Eligibility to buy

1. Prospecting and qualifying


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

– Need

– Authority

– Money

– Eligibility


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• 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)

• Salesperson makes the initial contact and the vital first impression

3. 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 Demonstration



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• 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 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 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 Account


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

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Using Technology To Sell Better

• Salespeople can enhance their productivity by using telecommunication tools

Intranets

Extranets Fax Machines

Computers

Pagers

Cell phones

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

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Benefits of a Professional Personal 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.


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Key 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).

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Key Terms cont’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.

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Key Terms cont’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.



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Topics for Thought and Class 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.

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Reading & Assignment for Next Session

• Read Chapter 4

380 personal selling · the subject and to develop the student’s presentation skills. lorna...

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