chapter 01
TRANSCRIPT
CHAPTER 1: PERSONAL SELLING – INTRODUCTION
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Each of us develops communication techniques for trying to get
our way in life
You are involved in selling when you want someone to do something
You use persuasion skills to persuade someone to act
1.0. PERSONAL SELLING - INTRODUCTION
1.1 INTRODUCTION
Selling is the process of discovering needs and satisfying them. This process
can be very simple, as when a customer knows what is wanted and the salesperson
simply provides the item and rings up the sale, or very complex. Uncomplicated sales
transactions occur millions of times each day. Today’s customers are sophisticated
and knowledgeable, and salespeople must act as both problem solvers and marketing
experts.
Personal selling is a person to person process that promotes the exchange
of goods, services, or ideas for the purpose of making sales and building
customer relationships.
Personal selling refers to the personal communication of information to unselfishly
persuade a prospective customer to buy something – a good, a service, an idea, or
something else – that satisfies that individual’s needs.
Relationship marketing: The creation of customer loyalty
Relationship selling: When the seller contacts the customer after the purchase to
determine if the customer is satisfied and has future needs. Sellers nowadays are
consultant, partners and problem solvers for customers. Their goal is to build a long
term relationship with clients.
1.2 EVERYBODY SELLS
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Salesperson – Past & Present
Traditional salespeople
Professional salespeople
Golden rule salespeople
• Do what they think they can get away with.
• Do what they are legally required to do.
Do the right thing
• Guided by self interests
• Take care of customers Find others’ interests most important.
• Attribute results to personal efforts.
• Attribute results to personal efforts, employer, customers, economy.
Attribute results to others
• Seek recognition for effort: sharing not important. Pride and ego driven
• Enjoy recognition, may share if it suits their purpose. Pride and ego driven
Feel that an individual’s performance is due to others, thus not motivated by pride and ego.
• Money is life’s main motivator.
• Money is important, but not to the customer’s detriment
Service most important; money is to be shared
1.3 WHY CHOOSE A SALES CAREER?
A. The opportunity to provide service to others.
Providing service means helping others. A sales career provides the opportunity for
service and an emotional purpose in life gained from helping others. For many,
service is the number one reason for choosing a sales career.
Major Reasons For Choosing A Sales Career
A. Service to others
B. Variety of sales jobs
C. Freedom
D. Challenge
E. Advancement
F. Rewards
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B. The variety of jobs available.
Types of sales jobs:
i. Selling in retail
A retail salesperson sells goods or services to consumers for their personal,
non-business use. Three common types of retail sellers: in-store salesperson,
direct sellers who sell face-to-face away from a fixed location and telephone
salespersons.
ii. Selling for a wholesaler
Wholesalers buy products from manufacturers and other wholesalers and sell
to other organizations.
A wholesaler salesperson sells products to parties for: resale, use in
producing other goods or services and operating an organization
Firms engaged in wholesaling are called wholesaling middlemen. They vary
greatly in the products they sell, the markets to which they sell and their
methods of operation.
iii. Selling for a manufacturer
Manufacturer’s sales representatives
a. Account representatives - call on a large number of already established
customers.
b. A detail salesperson - concentrates on performing promotional activities
and introducing new products rather than directly soliciting orders.
Service refers to making a contribution to the welfare of others
Would you like to help others?
What could a person be sold that would help the individual/family?
o Car, gas, repairs
o House
o Insurance
o Food
o Medicine
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c. A sales engineer - sells products that call for technical know-how.
d. An industrial products salesperson (non-technical) sells tangible products
to industrial buyers.
e. A service salesperson - sells intangible products such as financial
services, advertising, or computer repair services.
Order taker versus Order getter
Order Taker - The salesperson asks what the customer wants or waits for
the customer to order, for instance, cashier in retail selling situation,
telemarketing whose specific task of taking order.
Order Getter - The salesperson gets new and repeat business using
creative sales strategy and a well-executed sales presentation. An order
getter has two selling challenges:
Must often create discontent with what the prospect already has before
beginning to sell constructively.
Often has to overcome the most powerful and obstinate resistance.
C. Freedom of being on your own.
You’re on your own with very little direct supervision.
D. The challenge of selling.
The job challenge is always there which means great responsibility.
Salespeople often deal with variety of people and firms over time.
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E. The opportunity for advancement.
Some companies promote salespeople to managerial positions very quickly. For
most companies the path to a sales management position begins with an entry
level position.
F. The rewards from a sales career.
Two types of rewards:
Non-financial
(psychological income or intrinsic
rewards)
Feeling of self-worth and
accomplishment.
Realization that the job is
important.
Financial:
The opportunity to earn large salaries.
Rewarded on basis of performance.
Comparatively large beginning
salaries.
Overall, salaries for field sales
personnel have been moving rapidly
upward.
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1.4 CHARACTERISTICS OF SUCCESSFUL SALESPERSON
Below are highlights of some characteristics commonly found in successful
salespeople:
Caring for
customers
A true salesperson cares for their customer needs and tries to
solve those needs.
Joy in helping Through caring comes the joy of helping others. Customers can
recognize when a person clearly cares.
Harmony in
relationship
The caring attitude helps to create harmony in the relationship
between salesperson and customers. Salespeople need to have
the personal characteristic that allows them to place the customers
first.
Patience &
kind
Salesperson need to be able handle pressure of selling by
demonstrating patience in the working relationship with the
customer.
Moral ethics Ethical salesperson will be respected and trusted by everyone.
This characteristic is very important to build long lasting
relationship with customers.
Faithful to
word
The salesperson will spend the time necessary to help, not just
make the sale and never be heard from again until the next sales
call.
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Fairness in the
sale
The salespersons have to negotiate fairly and strive for win-win
situation.
Self control in
emotions
Self control concerns emotions, passions and desires. It refers to
the needed discipline to rise early, work late, and prepare for the
next day in the evening.
1.5 SALES JOBS ARE DIFFERENT FROM OTHER JOBS IN SEVERAL WAYS.
A. Since salespeople represent their company, opinions of a company and its
products are often based on the salespeople.
B. The outside salesperson typically operates with little direct supervision and needs
a high degree of motivation.
C. Salespeople probably need more tact, diplomacy, and social poise.
D. Salespeople are authorized to spend company funds on entertainment,
transportation, and other business expenses.
E. Selling requires mental toughness and physical stamina.
1.6 WHAT DOES PROESSIONAL SALESPERSON DO?
A. Creates new customers.
Salespersons locate people and/or organizations that have the potential to buy their
products in order to increase sales and replace customers that will be lost over time.
B. Sells more to current customers.
The key to get the current customers to buy repeatedly is to satisfy them.
C. Builds long-term relationships with customers –
Earning the opportunity to sell a present customer more products means the
salesperson must have a professional relationship with people and organizations.
D. Helps customers use products after purchase
The customers must be shown how to obtain full benefit from the products.
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E. Provides solutions to customers’ problems
Salespeople show how problems can be solved through the purchase of certain
products and services.
F. Provides service to customers such as
handling complaints
returning damaged merchandise
providing samples
suggesting business opportunities
recommending promotional techniques
working at the customer’s business
in store demonstrations
accompany distributor’
G. Helps customers resell products to their customers.
Salespersons help wholesalers customers sell products to retail customers and
helps retail customers sell products to consumers. They also develops promotional
programs for retail customers such as advertising materials, store demonstration
and setting product displays
H. Builds goodwill with customers
Salespersons need to develop a personal, friendly, business relationship with
anyone who may influence a buying decision.
I. Provides company with market information such as:
Competitor’s activities.
Customers’ reactions to new products.
Complaints about products and policies.
Market opportunities.
His own job activities.
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1.7 THE FUTURE FOR SALESPEOPLE
A. Learning Selling Skills
A salesperson’s job is diverse and complex, it requires a range of skills. The
necessary skills can be summarized in three
categories:
i. Conceptual skills
It refers to the cognitive ability to see the
selling process as a whole and the
relationship among its parts. It involves the
seller’s thinking and planning abilities and allows the seller to think strategically.
ii. Human skills
It refers to the seller’s ability to work with and through other people. It is very
important in building relationship with customer and people within organization.
iii. Technical skills
It refers the salesperson’s understanding of and proficiency in the performance of
specific tasks. The skill involves mastery of the methods, techniques and
equipment involved in selling such as presentation skills and uses of one’s
products.
B. Preparing for the 21st Century
Changes are occurring which will require salespeople to be knowledgeable in new
areas such as:
International dealings.
Sales force’s reflecting customer diversity.
Customer partnering to keep current customers.
Success based on customer satisfaction.
Increasing use of technology (e-selling).
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C. Success in selling comes from:
Training
Applying knowledge
Developing skills
Working hard
Wanting to succeed
Maintaining a positive outlook
Effective time management
All to take care of the customer
EXERCISES
MULTIPLE CHOICE QUESTIONS
1. ______ is traditionally defined as the personal communication of information to
persuade a prospective customer to buy something which satisfies that individual's
needs.
A. marketing communications
B. personal selling
C. advertising
D. promotion
2. Personal selling:
A. refers only to sales made to individuals, not those made to businesses
B. describes the process during which someone is persuaded to buy something
which they may not want or need
C. is synonymous with marketing
D. is accurately defined by none of the above
3. Which of the following statements about the importance of salespeople and selling
is true?
A. Salespeople are responsible for the success of new products, but have little to
do with keeping existing products in the marketplace.
B. Only the medical profession generates more revenue in our economy than the
selling profession.
C. Salespeople have a direct impact on the opening of new businesses and
whether those businesses are successful.
D. Salespeople are responsible for keeping existing products in the marketplace,
but have little to do with the success of new products.
4. Which of the following statements about selling is true?
A. You are not involved in sales when you go to an interview with a potential
employer.
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B. Unlike other professions, journalists do not engage in selling activities.
C. Everyone sells at their place of work, but not when at home with their families.
D. You are involved in selling when you ask someone to accompany you on a
shopping trip.
5. Selling occurs:
A. when you go to an interview with a potential employer
B. when lawyers try to convince clients to sue
C. when a journalist is trying to get an interview with Siti Nurhaliza
D. in all of the above incidences
6. In which of the following situations is the individual described engaged in selling?
A. You are involved in sales when you go to an interview with a potential
employer.
B. Your are trying to convince your lecturer that you deserve an ‘A’.
C. You are involved in selling when you ask someone to accompany you on a
shopping trip.
D. Selling is occurring in all of the above situations.
7. A person may choose a sales career because he or she desires:
A. the limited variety of jobs available
B. rewards offered by a career in sales
C. the freedom of being self-employed
D. restricted opportunities for advancement
8. A person may choose a sales career because he or she desires:
A. the limited variety of jobs available
B. rewards offered by a career in sales
C. restricted opportunities for advancement
D. overt permission to procrastinate
9. As a salesperson for a plumbing supply wholesaler, Titus would NOT sell products
to:
A. a final consumer
B. a small company that manufactures lawn furniture out of PVC pipes
C. a plumbing contractor who is working on a new motel
D. a hospital maintenance department
10. In which of the following industries are you most likely to find a sales engineer
being used?
A. apparel
B. heavy equipment
C. small appliance
D. pet supplies
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11. Which of the following is not a type of manufacturer’s sales representative?
A. detail salesperson
B. account representative
C. sales engineer
D. direct salesperson
12. Ahmad Kamil is a(n) _____ for a manufacturer of restaurant appliances. He does
not directly solicit orders. His primary duties involve promotional activities such as
introducing and demonstrating new products at trade shows.
A. retail salesperson
B. detail salesperson
C. sales engineer
D. service salesperson
13. Insurance, gym memberships, and cruise vacations would be sold by:
A. detail salespeople
B. account representatives
C. sales engineers
D. service salespeople
14. Salespeople who are order-_____ obtain new and repeat business using a creative
sales strategy and a well-executed sales presentation.
A. collectors
B. takers
C. getters
D. creators
15. Order-takers:
A. use creative sales strategies.
B. usually earn much more than order-getters.
C. rely on well-executed sales presentations.
D. are accurately described by none of the above.
16. Salespeople receive _____ rewards from their jobs.
A. financial and nonfinancial
B. psychological and intrinsic
C. technical and nontechnical
D. pay and benefits
17. All of the following are related to the nonfinancial rewards that you as a
salesperson receives EXCEPT:
A. knowing your job is important
B. intrinsic rewards
C. customer entertainment allowances
D. a feeling of self-worth
18. Which of the following is NOT identified as one of the eight work characteristics
needed for sales success?
A. sales knowledge
B. e-management skills
C. communication skills
D. stamina for the job
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19. In order to be knowledgeable, a salesperson must:
A. have product knowledge
B. have general business knowledge
C. be aware of the most up-to-date selling techniques
D. do all of the above
20. _____ skills refer to the seller's understanding and proficiency in the performance
of specific tasks.
A. Conceptual
B. Human
C. Nonhuman
D. Technical
21. Sales jobs differ from other jobs because sales jobs require:
A. considerable traveling
B. little direct supervision
C. more physical stamina and mental toughness than most other types of jobs
D. all of the above
22. The three categories of skills needed by the successful salesperson can be
summarized as:
A. conceptual, human, and technical skills
B. personal, mental, and spiritual skills
C. sales features, advantages, and benefits
D. order-getting, order-taking, and service-providing skills
23. The skills a salesperson needs to perform his or her job can be categorized into
three areas. Which of the following is as an example of a technical skill?
A. analytical ability
B. strategic thinking
C. planning abilities
D. working through other people
24. The skills a salesperson needs to perform his or her job can be categorized into
three areas. Which of the following is identified by the text as an example of a
conceptual skill?
A. analytical ability
B. strategic thinking
C. ability to use selling tools
D. working through other people
25. _____ skills refer to the seller's understanding and proficiency in the performance
of specific tasks.
A. Conceptual
B. Human
C. Automated
D. Technical
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26. Some of the changes that will impact salespeople in the 21st century include:
A. the need for global experience
B. diverse customers
C. e-selling
D. all of the above
ESSAY QUESTIONS
1. Define personal selling
2. Describe five major reasons for choosing a sales career.
3. Describes five characteristic commonly found in successful salespeople.
4. Describe five tasks of sales person.
5. In your opinion, what makes a sales job different from other jobs? Describe four
reasons.
6. The term salesperson refers to many types of sales jobs. What are the major
types of sales jobs available?
7. Briefly explain the differences between order-takers and order getter.
8. Describe three categories of important skills that are necessary for a
salesperson's success.
9. Comment on the following statement, "Only professional salespeople sell."
10. What are the two types of rewards that salespeople can earn? Give two
examples of each.