mkt 504 midterm 1 review ch1 -...
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MKT 504 Midterm 1 review
CH1
Value-added Selling
Improving the sales process to create value for the customer:
offer better advice and product solutions,
carefully manage customer relationships, and
provide better service after the sale.
Personal Selling in the Information Age
Major Developments (1960-2020)
1) Major advances in information technology
2) Information is a strategic resource
3) Business is defined by customer relationships
4) Sales success depends on creating and adding value for the customer
Industrial economy 1860 – 1960 tangible product
Informational economy 1960 – 2020 intangible product
Evolution of Personal Selling
Marketing Era (Middle 1950s-1960s)
Organizations determine needs and wants of target markets and adapt themselves to delivering desired
satisfaction. Product orientation is replaced by a customer orientation.
Consultative Selling Era (Late 1960s-1970s)
Salespeople are becoming diagnosticians of customers’ needs as well as consultants offering well-
considered recommendations. Mass markets are breaking into target markets.
Strategic Selling Era (1980s)
The evolution of a more complex selling environment and greater emphasis on market niches creates
the need for greater structure and more emphasis on planning.
Partnering Era (1990s – present)
Salespeople are encouraged to think of everything they say or do in the context of their long-term, high-
quality partnership with individual customers. Sales force automation provides specific customer
information.
"Marketing is not the art of finding clever ways to dispose of what you make. It is the art of creating
genuine customer value." Philip Kotler
Marketing Concept
Three aspects of the marketing concept are:
1) Co-ordination of marketing activities throughout the company,
2) Focused to create customer satisfaction,
3) While achieving the firm’s goals
Marketing Mix
Product
Price
Place
Promotion
Combination of elements based on the marketing concept
o Set of controllable, tactical marketing tools used to influence demand
Integrated Marketing Communications
Customer – Personal selling, sales promotion, direct marketing, advertising, public relations.
Attempt to provide a consistent, persuasive message to customers regardless of their source
Consultative Selling
Complex process that is an extension of the marketing concept:
1) Looks at a customer as a person to be served
2) Needs identified through two-way communication
3) Emphasizes need identification, problem solving, and negotiation
4) Emphasizes service at every phase
Adaptive Selling
Altering sales behaviours during a customer interaction in order to improve communication
Key element of the problem-solver stage
Strategic/Consultative Selling Model
Creating customer value
Strategic step: Develop a personal selling philosophy
Prescription: Value personal selling. Adopt Marketing concept. Become a problem solver/partner
Relationship Strategy – is a well thought-out plan for establishing, building, and maintaining long-term
quality relationships
Strategic step: Develop a relationship strategy
Prescription: Project positive, professional image. Practise communication-style flexing. Behave ethically.
Product Strategy – is a well-conceived plan that emphasizes extensive product knowledge, learning to
select and communicate appropriate product benefits that will appeal to the customer, and configuring
value-added solutions
Strategic Step: Develop a product strategy
Prescription: Become a product expert. Sell specific benefits. Configure value-added solutions.
Customer Strategy – a carefully conceived plan that will result in maximum responsiveness to the
customer’s needs
Strategic step: Develop a customer strategy
Prescription: understand customer buying process. Understand customer buying behavior. Develop
prospect base.
Presentation strategy – is a well-developed plan that includes preparing the sales presentation
objectives, preparing a presentation plan, and renewing one’s commitment to providing outstanding
customer service
Strategic step: Develop a presentation strategy
Prescription: Understand buying process. Prepare objectives. Provide outstanding service.
Value Creation model
1. Understanding customer’s value needs
2. Creating the value proposition
3. Communicating the value proposition
4. Delivering the value proposition
Strategic Selling Alliance
Goal is to achieve a marketplace advantage by teaming up with another company whose
products or services fit well with your own
Often formed by companies with similar business interests to gain a mutual competitive
advantage
Consultative Selling
1. Need discovery
2. Selection of the solution
3. Need satisfaction presentation
4. Servicing the sale
Quiz
1. Jerry uses strategy to ensure tactical success. He feels that strategic planning helps him
a. make his sales presentation to the right people at the right time.
2. Geoff is trying to develop a product strategy. One of the prescriptions he will have to follow is
a. to configure value-added solutions.
3. In today's era of limitless data, one role of salespeople is to help customers
a. decide what information has value and what should be ignored.
4. Gina is trying to develop a customer strategy. One of the prescriptions she will have to follow is
to
a. develop a prospect base.
5. Value-added selling
a. is a series of creative improvements designed to enhance the customer experience.
6. The marketing concept
a. is something a company adopts when its efforts are completely focused on satisfying
consumers while achieving its own goals.
7. Consultative selling emphasizes all of the following except
a. sales transactions.
8. The transaction-based buyer is likely to focus more on
a. the lowest price available.
9. In the information economy, business is defined by
a. customer relationships.
10. The main goal of a customer strategy is to
a. maximize responsiveness to customer needs.
1. Personal selling involves person-to-person communication with prospects and customers.
a. True
2. Value-added selling today involves providing tangible product features and benefits that meet
customer needs.
a. False
3. The marketing concept focuses more on products than customers.
a. False
4. Salespeople who want to excel at consultative selling need to develop two-way communication
with customers.
a. True
5. Consultative selling is essentially easy, and simply involves good negotiating skills.
a. False
6. An example of a strategy would be using PowerPoint during a group presentation.
a. False
7. If someone can really sell, her ability to build good interpersonal relationships becomes less
important.
a. False
8. Another name for a strategic account program is a national account program.
a. True
9. Integrated marketing communications improves effectiveness by giving target customers
consistent messages across communications media.
a. True
10. Salespeople who have adopted relationship selling rely on a personal, customized approach to
each customer.
a. True
1. How do salespeople create value with customers?
a. They develop quality relationships, identify needs, and offer the best possible solutions.
2. When a company develops the business philosophy that customer satisfaction is of primary
importance, they have adopted
a. the marketing concept.
3. When the marketing era began in the 1950s, more organizations recognized
a. that salespeople were in an ideal position to gather important information about
buyers' needs.
4. Strategies are
a. a prerequisite for tactical success.
5. Relationship strategies are important because
a. they help develop rapport with customers.
b. they help maintain quality relationships.
c. they help develop trust and mutual respect between buyers and sellers.
d. they ensure long-term partnerships with customers.
e. All of the above.
6. The purpose of a product strategy is
a. to help salespeople make correct decisions on positioning of products to meet customer
needs.
7. The important elements of a customer strategy include
a. understanding the customer buying process, behaviour, and the development of a
prospect base.
8. The marketing concept is best described as
a. a business philosophy.
9. Stan Davis, author of Blur: The Speed of Change in the Connected Economy, said that
a. today the computer is used more for connecting and less for data crunching.
10. Integrated marketing communications
a. gives target customers consistent messages across communications media.
CH2
Personal Selling in the Age of Information
The new economy is about the growing value of knowledge (replacing tangible goods)
One way to add value to information is to:
o Collect it, …… the right data
o Clarify it, ……. do your homework, interpret it
o Present it in a convincing manner. (WI:IFM)
Data – information – intelligence
Knowledge Workers - someone whose work effort is centred around creating, using, sharing, and
applying knowledge.
Four major groups are:
1. Managerial Personnel
Found under such titles as:
i. Executive,
ii. Manager, or
iii. Administrator
This group understands the importance of “executive selling” and that the most
valuable information is acquired from internal and external customers
2. Professionals
Technical skills are not enough as customers seek expert diagnosticians who are
truly interested in their needs.
accountants, computer programmers, consultants, dentists, doctors, engineers
3. Entrepreneurs
Entrepreneurs understand the importance of relationships but do not see it as
“selling” (CPSA survey)
“ENTREPRENEUR = SALESPERSON”
4. Customer Service Representatives
Knowledge workers who process reservations, accept orders by phone or other
means, deliver products, handle complaints, provide technical assistance, and assist
full-time sales representatives
CCO – Chief Customer Officer
CEO – Customer Experience Officer
CSM – Customer Success Mgr.
5. You as students
One salesperson creates enough sales revenue to pay for nine other jobs within the company
More than 1,000,000 people in sales positions across Canada
Nearly 10% of workforce
Recession Proof
Two factors contribute to new titles:
1. Shift from “selling” to “consulting”/”advising”
2. Reflects difference in education and skill needed – increased client/sol’n complexity
Rewarding Aspects of Selling Careers
Above-average income - study
Above-average psychic income
o Factors that provide psychological rewards;
o Helps to satisfy the need for recognition and security, and motivates us to achieve
higher levels of performance
Opportunity for advancement
Opportunities for women – “Why women can outsell men”
Inside Salesperson – performs selling activities at the employer’s location, typically using the telephone
handling inbound and outbound calls (telemarketing)
Take orders
Make calls on smaller customers
Provide support for field salespeople
Outside Salesperson – travels to meet prospects and customers in their place of business or residence
a.k.a. Field Salesperson
Field Salesperson – regularly visits face-to-face with new customers and current customers
Works for manufacturers and wholesalers
Channel of Distribution – includes all of the intermediaries that exist between the manufacturer and the
end user
Trade Selling – refers to the sale of a product or service to another member of the channel of
distribution
Detail (or Missionary) Salesperson – attempts to generate goodwill and stimulate demand for
the manufacturer’s product among channel members
Manufacturers employ sales and sales support personnel in a variety of different positions in outside
and inside sales:
Industrial salespeople
Sales engineer or applications engineer
o A salesperson who must possess a detailed and thorough knowledge of their products
as well as competing products
Field salespeople
Detail salespeople
The principles of selling can be learned and applied by people whose personal characteristics are quite
different
Corporate-sponsored training
Commercial vendor training
Certification studies (CPSA)
Courses in colleges and universities
Typical salesperson completes 38 hrs/yr
Quiz
1. Salespeople typically complete __________________ training a year than senior executives.
a. 10 more hours
2. Clients who purchase professional services expect
a. the professional to be an expert, and truly interested in their needs.
3. Brenda Fisher, with Janssen-Ortho Inc., said she likes her work as a sales professional because
a. she likes the time flexibility it offers.
4. "Executive selling" by leaders and managers can be described as
a. efforts managers make with salespeople to capture information from customers and
assist in the selling process.
5. Sales may not be an early career choice for some college graduates because
a. some may believe a sales career will require them to engage in unethical and dishonest
behaviour.
6. Advancement opportunities often come to top-performing salespeople because
a. They generally work in high-visibility positions and have been recognized for their
accomplishments.
7. Diverse clients, demographics, and diverse market segments mean
a. a diverse sales force is needed to match diverse customer needs.
8. Because of the growth of online sales, traditional retailers
a. need to create a compelling value-added shopping experience.
9. Telemarketing can be an effective sales channel for the following activity(ies):
a. selling to smaller accounts
b. providing technical assistance and support to salespeople
c. qualifying sales leads
d. providing technical assistance and support to customers
e. All of the above.
10. What type of salesperson is rewarded for indirectly selling goods?
a. a detail salesperson
1. Salespeople, on average, spend nearly 12 hours per week on the telephone.
a. True
2. If a salesperson has knowledge of a new technology, but fails to effectively communicate it,
there is little value to the information.
a. True
3. Because CSRs deal with so many customers, it is unlikely that they will gain any valuable
knowledge about them.
a. False
4. Technical skills in the information age are really sufficient. Keeping customers satisfied is the
most important requirement.
a. False
5. When thinking about sales, there is really only one true selling occupation.
a. False
6. The financial, advancement, and recognition opportunities associated with selling are really
quite unique.
a. True
7. Firms have recognized that gender is really not a barrier to sales success and are hiring women
in growing numbers.
a. True
8. Selling a desktop computer network to a large financial institution is an example of inside sales.
a. False
9. Research shows that only one personality type is likely to be successful in a sales career.
a. False
10. The trend to a higher level of professionalism is prompting some salespeople to return to the
classroom for additional training and education.
a. True
1. The average salesperson works 46.9 hours per week. Approximately how much of this time does
the salesperson spend in actual face-to-face selling?
a. 15 hours
2. Which of the following is not one of the major employment settings for personal selling?
a. information processing
3. Some of the customary duties of a customer service representative may include
a. accepting phone orders, providing technical assistance, and supporting sales
representatives.
4. Which of the following statements is false?
a. Men are more people-oriented than women.
5. One reason new sales titles have been created is because
a. there has been a shift from selling to consulting.
6. _______________ is one of the hottest areas of sales growth.
a. Banks and financial services
7. Women are enjoying expanding sales opportunities in areas such as
a. All of the above.
8. Selling Internet advertising is an example of
a. selling a service.
9. Maintaining inventory and extending credit are services typically provided by
a. wholesalers.
10. A detail salesperson is sometimes referred to as
a. a missionary salesperson.
1. Detail salespeople make calls specifically on retailers to help them improve their marketing
strategies.
a. False
2. Professionals such as lawyers, accountants, and architects are realizing personal selling is an
important activity.
a. True
3. A career in sales will require people to engage in behaviour likely considered unethical.
a. False
4. In a typical week, a sales professional may spend less than 15 hours in face-to-face selling.
a. True
5. A sales manager will always make more than the salespeople she manages.
a. False
6. In bad economic times, salespeople need to be very concerned about job security.
a. False
7. Many firms today have recognized that it is good business to provide opportunities in sales for
minorities.
a. True
8. Selling for a manufacturer usually means the sales process is less complex.
a. False
9. Salespeople are made, not born.
a. True
10. In major corporations, salespeople rarely receive any specific job training.
a. False
CH3
Many forms of intelligence influence our actions throughout life
One form is emotional intelligence
o Emotional Intelligence – the capacity for recognizing our own feelings and those of
others, for motivating ourselves, and for managing emotions effectively in ourselves and
in our relationships.
Emotional Intelligence “Social” Intelligence
People with a high level of top performer attributes display many of the qualities needed in
sales work:
o Self-confidence
o Trustworthiness
o Adaptability
o Initiative
o Optimism
o Empathy
o Social skills
In the field of personal selling and most other business occupations, emotional intelligence (EI)
(Feelings) is considered a much greater predictor of success than a high intelligence quotient (IQ)
(Facts)
The good news is that one can enhance EI with various self-development activities
Challenges Selling in the Information Age
Building new relationships
Transforming relationships from the personal level to the business level
Management of relationships
Relationships Add Value
A salesperson should have an ongoing goal of developing a relationship strategy that adds value
Salespeople who feel a professional responsibility (attitude) to create as much value for
customers as possible exhibit:
Customers perceive that value is added when they feel comfortable with the relationship they
have with a salesperson
Major players in the future will be the empathizer
o Empathizer – someone who has the ability to imagine themselves in someone else’s
position and understand what that person is feeling
Value Creation
The information economy will reward those salespeople who have the skills, the knowledge, and
the motivation to determine how to create value at every step of the sales process
Partnering – a strategically developed, high-quality long-term relationship that focuses on solving the
customer’s business problem
Involves establishing, re-establishing, and maintaining relationships
Three keys to a partnering relationship:
o The relationship is built on shared values
o Everyone needs to clearly understand the purpose of the partnership and be committed
to the vision
o The role of the salesperson must move from selling to supporting
Relationship Strategies Focus on Four Key Groups – 4 Levels
Salesperson
1. Customers
2. Secondary decision makers
3. Company support staff
4. Management personnel
Adapting the Relationship Strategy
Should be tailored to the type of customer:
o Transactional buyer – relationship strategy is secondary to price, convenience, and
delivery
o Consultative buyer – effective communication, relationship built on mutual trust and
respect
o Strategic alliance buyer – building relationships with several representatives in the
seller’s and buyer’s organization
Most challenging
3 Thought Processes That Enhance Your Relationship Strategy &Emotional Intelligence
1. Self- Concept – is the bundle of facts, opinions, beliefs, and perceptions about yourself that are
present in your life every moment of every day
Consciously aware of some things
Many are processed unconsciously
Improve self-concept
1. Focus on the future and stop being overly concerned with past mistakes and
failures
2. Develop expertise in selected areas
3. Learn to develop a positive mental attitude
2. Empathy and Ego-drive
Top salespeople have both the motivation to make the sale and the empathy that gives
them the connecting tool with which to do it
Ego Drive – inner force that makes the salesperson want and need to make the sale
Lack of Motivation has been cited in projects
3. Character & Integrity
Character – your personal standards of behaviour, including your honesty and integrity
Based on internal values and the resulting judgments you make about what is
right and what is wrong
Integrity – what you have when your behaviour is in accordance with your
professed standards and personal code of moral values
Win-Win Philosophy
The first step in developing a relationship strategy
Both the buyer and seller come out of the sale understanding both their respective best
interests have been served
o Profited personally and professionally from the transaction
Quiz
1. Which of the following statements about self-image is false?
a) Self-image is resistant to change.
2. Salespeople with emotional intelligence display the following trait(s):
a) Trustworthiness
b) Optimism
c) Initiative
d) self-confidence
e) All of the above.
3. When you enter a room, you can communicate confidence with
a) a strong stride, good posture, and a friendly smile.
4. Four key ideas that should govern our clothing decisions as salespeople include
a) simplicity, quality, appropriateness, and visual integrity.
5. According to Larry Wilson, one of the keys to partnering relationships is
a) the role of the salesperson, which must move from selling to supporting.
6. Key groups that salespeople should develop partnership relationships with are
a) customers and secondary decision makers.
7. One way to develop a more positive self-image discussed in the textbook is to
a) focus on the future rather than be concerned with past mistakes.
8. People exhibit integrity when
a) there is consistency in what they know, what they say, and what they do.
9. During a first contact with a customer, impressions are made
a) during the first few minutes or even seconds of the meeting.
10. One conversational strategy that can enhance relationships is
a) to be a good listener and encourage others to talk about themselves.
1. Emotional intelligence refers only to someone's IQ.
a) False
2. Salespeople today are recognizing that the quality of the relationships they build is as important
as the quality of the product they sell.
a) True
3. Personal selling is an event, not a process.
a) False
4. Building a partnering relationship with company support staff has little value for a salesperson.
a) False
5. People with emotional intelligence display many of the qualities needed in sales.
a) True
6. If behaviour is wrong, but everyone is doing it, then it's acceptable to follow the crowd.
a) False
7. The verbal messages we send always have more impact than nonverbal messages.
a) False
8. A good, firm handshake is important in establishing a good first impression.
a) True
9. In today's society it is generally acceptable to always dress "business casual."
a) False
10. Salespeople should avoid offering compliments so customers do not think them insincere.
a) False
1. The three major relationship challenges of selling in the information age are
a) building new relationships; transforming relationships from personal to business levels;
managing relationships.
2. Today's customers are demanding
a) quality products and quality relationships.
3. What did Larry Wilson identify as one of the most important strategic thought processes needed
by salespeople?
a) partnering strategy
4. Salespeople who abandon short-term thinking and invest in long-term relationship building are
rewarded with
a) greater earning potential.
b) the satisfaction of working with repeat customers.
c) more customer referrals.
d) All of the above.
5. Salespeople with a high level of emotional intelligence display all of the following qualities
needed for sales success except:
a) superior verbal skills
6. In a win-win selling environment, buyers and sellers both come to understand
a) that the respective best interests of both parties have been served.
b) the salesperson wins the deal and earns commissions.
7. Every salesperson makes an impression on customers, which is
a) the sum total of many verbal and nonverbal factors.
8. According to Peter Urs Bender, approximately _____ percent of presenters begin their
presentations by speaking too fast.
a) 85
9. Which of the following is not a rule of etiquette appropriate for salespeople?
a) Do not express personal views on religion or politics until clients have expressed their
views.
10. Good manners are essential for successful selling. An important thing to remember is
a) make sure your cell phone is always turned off during meetings.
b) be clear and concise when using voice mail.
c) when taking a customer to lunch, wait to discuss business until after ordering.
d) always be on time.
e) All of the above.
1. In the consultative sale, the opportunity to uncover hidden needs is greatly enhanced by a well-
conceived relationship strategy.
a) True
2. Salespeople who strive to create value for customers display traits such as a strong work ethic
and high energy levels.
a) True
3. High-performance salespeople have recognized that it is not a good use of their time to focus on
secondary decision makers.
a) False
4. With a transactional sale, the relationship strategy is often of tertiary importance.
a) False
5. Nonverbal messages are those we send by means of hand and facial gestures, posture, and
appearance.
a) True
6. Offering a smile to a new customer may help you develop trust and rapport.
a) True
7. A salesperson with superior selling skills doesn't need to worry much about dress and
appearance.
a) False
8. Salespeople should really avoid small talk with customers. It is best to get right down to business.
a) False
9. You can build relationships by sending articles or reports of interest to your contacts.
a) True
10. To continue improving, it is essential that a salesperson have a self-initiated program of self-
improvement.
a) True
CH4
Communication Styles – An Introduction to Managing Selling Relationships
Personality – the thoughts, feelings, and actions that characterize someone
o Communication style is an important aspect of your personality
o Communication Style – patterns of behaviour that others observe; the “you” on display
every day
Voice patterns, eye movement, facial expression, and posture
Adaptive selling – altering sales behaviours in order to improve communication with the
customer
o Ability to collect information regarding the customer’s needs and responding
appropriately
o Requires complex behavioural adjustments
Communication-style bias – a state of mind we often experience when we have contact with another
person whose communication style is different from our own
o Makes building rapport difficult
5 Communication Style Principles
1) Individual differences exist and are important
2) A communication style is a way of thinking and behaving
3) Individual style differences tend to be stable – it is our comfort zone
4) There are a finite number of styles
5) To create the most productive relationships, it is necessary to get in sync with the
communication styles of the people you work with
Improving Your Relationship Selling Skills
Style flexing – the deliberate adjustment of one’s communication style to accommodate the
needs of the other person
o Can afford you a crucial advantage in dealing with people
o Can reduce possibility of tension during a call
Four basic communication styles are based on two important dimensions of human behaviour:
o Dominance – the tendency to influence or exert one’s will over others in a relationship
o Sociability – reflects the amount of control one exerts over emotional expressiveness
o Self ratings can be misleading
High Dominance Continuum - Like to control things. Frequently initiate demands. More aggressive
Low Dominance Continuum - Quite cooperative. Let others control things. Low in assertiveness
High Sociability Continuum – Outgoing. Seeks interaction. Less formal
Low Sociability Continuum – Reserved. Likes to be alone. More formal
Emotive Style (high dominance, high sociability)
Some of the verbal and nonverbal characteristics:
o Appears quite active
o Takes the social initiative in most cases
o Likes to encourage informality
o Expresses emotional opinions
They are outspoken, enthusiastic, and stimulating
Director Style (high dominance, low sociability)
Some of the verbal and nonverbal characteristics:
o Appears to be quite busy
o May give the impression of not listening
o Displays a serious attitude
o Likes to maintain control
They are frank, demanding, assertive, and determined
Reflective Style (low dominance, low sociability)
Some of the verbal and nonverbal characteristics:
o Controls emotional expression
o Displays a preference for orderliness
o Tends to express measured opinions
o Seems difficult to get to know
They are a stickler for detail, reserved, and cautious
Supportive Style (low dominance, high sociability)
Some of the verbal and nonverbal characteristics:
o Gives appearance of being quiet and reserved
o Listens attentively to other people
o Tends to avoid the use of power
o Makes decisions in a thoughtful and deliberate manner
They are lighthearted, quiet, and unassuming
Minimizing Communication-Style Bias
Barrier to success in selling
Common problem because will meet customers from all four quadrants
Must be able to develop rapport with people from each quadrant
o When people of different styles work together but don’t adjust to one another, serious
problems can develop
Adaptive Selling Requires Versatility
Versatility – our ability to minimize communication-style bias
o Adapting to the customer’s preferred communication style can enhance sales
performance
Each style has:
o Immature and mature side
o Strength and weakness paradox
Style Flexing
o Style sensitivity and flexing add value to the sales process
o People are more apt to buy from you when they perceive that you view the world as
they view the world
Selling to “Emotives”
Be enthusiastic; avoid a stiff, formal approach
Take time to establish goodwill
Back off on facts and details
Support their opinions, ideas, and dreams
Ask questions, maintain eye contact, and listen attentively
Selling to “Directors”
Be businesslike
Be efficient, time disciplined, and well organized
Use facts, figures, and success probabilities
Help them meet their objectives
Ask specific questions and take careful notes
Selling to “Reflectives”
Be prompt and well prepared
Use a no nonsense, businesslike approach
Present in a slow, deliberate way
Show proof and documentation
Never pressure them to make a quick decision
Selling to “Supportives”
Learn about family, hobbies, and major interests to build a social relationship
Listen carefully to personal opinions and feelings
Be professional but have a friendly approach
Offer personal assurances and support
Be patient and avoid conflict if possible
Quiz
1. We generally form impressions of people by
a. observing their behaviour.
2. Patterns of behaviour that others observe can be called
a. communication style.
3. When one's communication style greatly differs from another's,
a. it may be difficult to develop a rapport.
4. A person ranking high on the Dominance Continuum
a. is likely to be a "take charge" person who makes his views clear to others.
5. Those with an Emotive communication style
a. are more than willing to share their thoughts and opinions on any subject.
6. When selling to one with a Reflective communication style,
a. you should present facts in an orderly and unemotional manner.
7. One common mistake often made by salespeople is
a. focusing too much on the content of their presentation and not enough on how they
will deliver their message.
8. According to communication-style experts, sales performance can be enhanced by
a. adapting to the customer's preferred communication style.
9. A salesperson's effort to adjust his communication style to accommodate the needs of his
customer is called
a. style flexing.
10. When selling to a Director-style person, the approach should include
a. being efficient.
b. providing facts, figures, and success probabilities.
c. an approach to supporting his or her objectives and priorities.
d. being organized.
e. All of the above.
1. Reena calls on a customer who she believes to be a Supportive. When her customer moves into
the excess zone, he is likely to get impatient with Reena.
a) True
2. When considering communication styles, it should be noted that there are only a finite number
of styles.
a) True
3. Differences in communication styles really don't have much effect on selling effectiveness.
a) False
4. People who rank high on the Sociability Continuum tend to keep their thoughts and feelings
private.
a) False
5. When selling to a Director, you should try to identify and support his primary objectives.
a) True
6. A person exhibiting the Director communication style will make it clear that she is in charge.
a) True
7. It will be quite easy to get to know someone with the Reflective communication style.
a) False
8. A person will utilize only one communication style - it never varies.
a) False
9. When a salesperson refuses to adjust his communication style, it can have negative
consequences.
a) True
10. When strengths are exaggerated, they can actually become a weakness.
a) True
CH5
The CPSA Sales Institute Code of Ethics is the set of principles and standards that a certified sales
professional will strive to adhere to with customers, organizations, competitors, communities, and
colleagues.
Business Ethics – comprised of principles and standards that guide behaviour in the world of business
Help translate values into appropriate and effective behaviours in day-to-day life
No one uniform code of ethics for salespeople because of many variables – character
Character is based on your internal values and the resulting judgments you make about what is right
and what is wrong
Ethical decisions you make reflect your character strength
So many different backgrounds/influences
The Erosion of Character
A company cannot enjoy long-term success unless its employees are honest, ethical, and
uncompromising about values and principles
Some half-truths that have influenced the erosion of moral character:
o We are only in it for ourselves
o Corporations exists to maximize shareholder value
o Companies need to be lean and mean
o Will your behaviour pass the smell test?
Factors Influencing the Ethics of Salespeople
Temptation exists to maximize short-term gains
This figure outlines the forces that help focus on honesty and avoid “corporate misconduct”
The organization’s moral tone, as established by management personnel, is the most important single
determinant of employee ethics
Four things common to vendors that follow “best practices”:
1) A top-level business executive responsible for ethics, business conduct, and compliance
2) The ability for all employees to be able to report, anonymously and confidentially, any
suspected wrongdoing
3) The ability to monitor and assess their ethics program effectively
4) Ethics training for all employees, including senior executives
Several values form the foundation for an ethical corporate culture
o Integrity
o Customer focus
o Value
Developing policy statements forces a firm to “take a stand” on various business practices
Most marketing companies provide guidelines:
Sharing Confidential Information
Reciprocity – a mutual exchange of benefits, as when a firm buys products from its own
customers
Bribery – an attempt to influence the person receiving the “gift”
Gift Giving Guidelines:
o Do not give gifts before doing business with a customer
o Never convey the impression you are “buying” the customer’s business with gifts
o When gift giving is done correctly, the customer will clearly view it as symbolic of
your appreciation
o Be sure the gift is not a violation of the policies of your firm or of your customer’s
firm
Entertainment of Customers
o Line dividing gifts and entertainment from bribes is often quite arbitrary (Grey Area)
o Few industries see entertainment as part of the approach used to obtain new
accounts
o (Especially true where little to no product differentiation exists)
Business Defamation – deals with comparing your products to those of your competition in
an inaccurate or misleading way:
o Business slander – unfair and untrue oral statements about competition
o Business libel – unfair and untrue written statements about competition
o Product disparagement – false or deceptive comparisons or distorted claims about
product
The effectiveness of company policies depends on:
o The firm’s attitude toward employees who violate these policies
o Policies that influence personal selling need the support of the entire sales staff
The Sales Manager as a Role Model
Generally provide first orientation to company operations
o Looked to for guidance and direction
Sales managers influence the ethical behaviour of salespeople by virtue of what they say and
what they do
Values – your deep personal beliefs and preferences that influence your behaviour
o Serve as a foundation for attitudes, and attitudes serve as a foundation for behaviour
The legal systems plays a key role in preventing people from engaging in unethical behaviour
The Competition Act
o Price fixing, bid rigging, price discrimination, predatory pricing, double ticketing, resale
price maintenance, bait and switch selling, and pyramid selling
o Bill 198 – Sarbanes-Oxley – CEO/CFO sign off
Cooling-off Laws – provincial and territorial laws that give customers an opportunity to
reconsider a buying decision made under a salesperson’s persuasive influence
o Referred to as:
The Direct Sellers Act, or
The Consumer Protection Act
Contract – an oral or written promise enforceable by law
o Employment Contracts:
Noncompete clause – prohibits salespeople from joining a competing firm for a
year after they leave
Protection of intellectual property, customer lists, and other resources
Focus of the meaning of trust changes with the type of sale:
o Transactional sales – trust with the product
o Consultative sales – trust with the salesperson
o Relationship selling – trust with the salesperson reflects the trust with the
institution/organization/company
Culture – the sum total of beliefs, values, knowledge, ethnic customs and objects that people use to
adapt to their environment
Quiz
1. The CPSA Sales Institute code of ethics includes all of the following except the need to
a. respect and protect confidential information.
b. continually upgrade product, industry, and selling skills knowledge.
c. use time and resources for legitimate business purposes only.
d. All of the above.
2. Ethical decisions that you make each day reflect
a. the strength of your character.
3. Employees involved in unethical behaviour often report that they
a. were under pressure to act unethically and illegally.
4. One half-truth that has contributed to the erosion of character is
a. corporations exist to maximize shareholder value.
5. Ethical conduct of salespeople can be influenced by the following factors:
a. laws, company policies, role models, and personal values.
6. An ethical salesperson working for a company with unethical practices
a. will find it very difficult to work for such a company.
7. According to the text, what is the correct relationship among the following three things?
a. Values lead to attitude; attitude leads to behaviour.
8. Which person has the primary responsibility to give ethical guidance to salespeople?
a. the sales manager
9. When a salesperson's values conflict with his employer's, one choice he has is
a. to ignore his values and act unethically.
b. to voice strong opposition to the unethical practices.
c. not to compromise on his values.
d. All of the above.
10. One general principle to guide a personal code of business ethics is
a. be honest with yourself and others.
1. There is one uniform code of ethics for all salespeople.
a. False
2. Fulfilling commitments builds trust in relationships.
a. True
3. A Newsweek survey suggests that there is a growing intolerance for cheating and deceptive
behaviour.
a. False
4. In the field of selling, there are really very few situations that will challenge your ethics.
a. False
5. Salespeople often receive confidential information from customers.
a. True
6. Reciprocity should be a part of every business relationship.
a. False
7. It is an acceptable practice to overstate the capabilities of your product if your competitors are
doing so.
a. False
8. It is helpful for salespeople to be involved in developing company policy on ethics.
a. True
9. If something is legal, it will always be ethical.
a. False
10. Trust between customers and salespeople generally results in productive partnerships.
a. True
CH6
Product Strategy – a well-conceived plan for sales that emphasizes acquiring extensive product
knowledge, learning to select and communicate appropriate product benefits that will appeal to the
customer, and creating value-added solutions
Product – information, services, ideas, tangible products, or some combination of these that satisfies
the customer’s needs, with the right solution
Solution – a mutually shared answer to a recognized customer problem
Solution Selling – a process by which the salesperson uncovers and clarifies a customer’s problem,
works with the customer to create a vision of how things could be better, and then develops a plan for
implementing the vision.
With a complex product, it is knowledge and expertise that create value
The challenge facing both customers and salespeople in this era of information overload is deciding
which product applications, or combination of applications, can solve the customer’s buying problem
Product Configuration –the solution of complex buying needs, for instance when the salesperson brings
together many different parts of the company’s product mix or uses specialized software to develop a
custom-fitted solution
Major element is quotation management
The number one characteristic of salespeople who are able to build trust is through product knowledge
(credibility)
Used to best meet and exceed customer expectations
Most common product information categories are:
1. Product development and quality improvement processes,
2. Performance data and specifications,
3. Maintenance and service contracts, and
4. Price/Value
1. Product Development – the testing, modifying, and retesting of an idea for a product several times
before offering it to the customer
1 a. Quality Control – the evaluation or testing of products against established standard
2. Performance data – especially critical when the customer is attempting to compare the merits of one
product with another
3. Proper maintenance will usually extend the life of a product so should be provided
Development of customized services
4. Value - Quantifying the solution – process of determining if a sales proposal adds value
o Especially important in situations where the purchase represents a major buying
decision
Decision-making authority in the area of pricing gives the salesperson more power and
responsibility
o Cost-benefit analysis, ROI may be required
Key when considering a strategic alliance
Organizational Culture – is a collection of beliefs, behaviours, and work patterns held in common by
people employed by a specific firm
Supportive culture that encourages salespeople to offer tailor-made solutions to buyer
problems, and post-sale support will set the stage for long-term partnerships
Customers appreciate an accurate, fair, and honest presentation from an expert
Successful sales presentations translate product features into benefits that meet a specific need
expressed by the customer
Only then does it have impact on the customer or is relevant to the customer
Put your Content into the customer's Context
Feature – data, facts, or physical characteristics of a product or service
Benefit – whatever provides the customer with personal value or gain
General Benefit – a value statement of a feature based on customer feedback
Specific Benefit – when it fulfills a specific need expressed by the buyer, and describes the VALUE of a
feature
Bridge Statement – a transitional phrase that connects one or more product features with potential
customer benefits
“Data Dump” – salespeople who love their products and possess vast product knowledge overload
customers with data they neither need nor want
Written proposal – a specific plan of action based on the facts, assumptions, and supporting
documentation about a buying solution that are included in the sales presentation
Varies in content, format, and length
Offers buyer reassurance
Adds value when well-written
Most effective proposals include:
o Budget and overview – clearly laid out
o Objectives – specific
o Strategies – how to meet the objectives
o Schedules – implementation timeframes
o Rationales – to act now
Quiz
1. A product strategy is a well-conceived plan that includes
a. becoming a product expert.
b. selling specific benefits.
c. offering value-added solutions to customers.
d. All of the above.
2. In many selling situations, a solution is
a. much more than just the product.
3. Product strategies should be tailored to
a. the customer's specific buying needs.
4. Offering a solution to the relationship customer requires
a. the most work and greatest challenge.
5. One of the most important roles a salesperson can play is to
a. simplify the customer's study of product choices.
6. The key objective for a well-written proposal is to
a. add value to the product solution and set you apart from competitors.
7. What characteristic did Sales & Marketing Management rank number one in salespeople who
are able to build trust?
a. knowledge of the product
8. What benefit(s) do customized service agreements add to a relationship?
a. They add value to the sale.
b. They protect you from competition.
c. They incorporate specific needs of the customer.
d. All of the above.
9. A supportive company culture
a. sets the stage for the development of long-term customer relationships.
10. According to Neil Rackham, a statement is only a benefit when it
a. meets a specific need expressed by the buyer.
1. Product solutions focus only on the actual product itself.
a. False
2. The many product choices available to customers actually complicate the buying process.
a. True
3. Product proposals often include budgets, objectives, and schedules.
a. True
4. Product knowledge is not usually a factor in earning a customer's trust.
a. False
5. Salespeople should be prepared to address performance specifications in proposals and
presentations.
a. True
6. Power and responsibility go along with a salesperson's authority to set pricing.
a. True
7. Return on Investment (ROI) calculations in a proposal adds no value.
a. False
8. Criticizing the competition may be necessary in highly competitive selling situations.
a. False
9. Becoming an industry expert is helpful but not essential.
a. False
10. Successful salespeople offer specific benefits that satisfy specific customer needs.
a. True
CH 7
Positioning – decisions and activities intended to create and maintain a certain perception of the firm’s
product in the customer’s mind
Done well means the product’s name, reputation, and niche are well recognized
Must be continually modified to match customer’s changing needs and wants
Differentiation – ability to separate yourself and your product from that of your competitors
On the basis of Safety and Security, Performance, Appearance, Comfort, Economy and Durability
PLUS quality, price, convenience, and other factors
Creates barriers that make it difficult for the buyer to choose a competing product on price
alone
Value proposition – set of benefits and values the company promises to deliver to customers to satisfy
their needs
Satisfactions –the positive benefits that customers seek when making a purchase
Value-added Strategies – relationship, product, or service strategies that a company uses that add value
for the customer
Better-trained salespeople, increased levels of courtesy, more dependable product deliveries,
better service after the sale, and innovations all add value
Offer unique niche and competitive edge
Generic Product – the basic substantive product being sold
Expected product – (customer’s perceptions) - everything that represents the customer’s minimal
expectations
Value-added product – (salesperson’s knowledge) - product that exists when salespeople offer the
customer more than they expect. Exceed Expectations
Potential Product – (Mutually discovered possibilities) - what may remain to be done to a product, that
is, what is possible. More Innovation
Value Creation Investments
• Transactional Sale
• Emphasis on eliminating unnecessary costs
• Technology investments can play a role
• Consultative Sale
• Understanding of customer’s needs and problems
• Custom-tailor solutions and deliver real benefits
• Strategic Alliance Sale
• Leverage full assets of the company
• Developed by team of specials
Product Life Cycle – stages of a product from the time it is first introduced to the market until it is taken
off the market; including the stages of introduction, growth, maturity, and decline
Quiz
1. Today's customers often seek a "cluster of satisfactions" related to
a. the company, the competitor, and the salesperson.
2. Good product positioning means
a. that the product's name, reputation, and market niche are well recognized.
3. The principle of product differentiation refers to
a. separating your company and products from the competition.
4. The set of benefits and values the company intends to offer customers is called
a. the value proposition.
5. In the Product-Selling Model, today's salesperson must
a. provide service after the sale.
b. be more understanding of customers.
c. be more courteous and trustworthy.
d. be more knowledgeable.
e. All of the above.
6. One influencing factor in the product life cycle is
a. competitive activity.
7. The product-selling strategy for mature products should include
a. providing outstanding customer service.
8. A pricing discount offered during specific times of the year is called
a. a seasonal discount.
9. The idea of a value-added product is part of
a. the total product concept.
10. Creating value for the relationship sale customers often requires
a. leveraging the full assets of the company.
1. Good product positioning needs to happen only once in the product life cycle.
a. False
2. Most companies use sales and marketing strategies to uniquely position their products.
a. True
3. In today's economy, price is the best way to differentiate your product.
a. False
4. Knowledge is important in enabling a salesperson to differentiate products.
a. True
5. It is a good idea for salespeople to use a lot of technical jargon to impress customers.
a. False
6. The primary objective of a pricing strategy is to gain market share.
a. False
7. Excessive focus on a low-price strategy can have an impact on company profits.
a. True
8. Electronic commerce has impacted pricing strategies on such products as insurance and
investments.
a. True
9. A value-added product is one that is sold for more than a salesperson expects.
a. False
10. Indications are that value-added selling is losing its importance in today's ultra-competitive
world.
a. False
CH8
Customer Strategy – a carefully conceived plan that will result in maximum customer responsiveness
Want to develop repeat business should figure out a way to collect and systematize customer
information:
Understand the buying process
Understand customer behaviour
Develop prospect base
Buying Centre – a cross-functional team of decision makers who often represent several departments
New-Task Buy – a first-time purchase of a product or service
Rely on consultative selling skills
Straight Rebuy – a routine purchase of previously purchased goods or services
Constantly monitor every situation to be sure customer is completely satisfied
Modified Rebuy – purchasing when the buyer wants to reconsider product specifications, prices, or
suppliers
Provide outstanding service post-sale and anticipate changing needs
Systems Selling – type of selling that appeals to buyers who prefer a packaged solution to a problem
from a single seller, thereby avoiding the series of separate decisions sometimes involved in a complex
buying situation
Some strategic alliances work here
Amount of time consumers devote to a buying situation can vary greatly depending on:
Cost of the product,
Familiarity with the product, and
The importance of the item to the consumer.
Buying Process – the stages a buyer goes through when making a buying decision
Steps in the Typical Buying Process
Customers who make habitual buying decisions often skip or reverse some of the stages
Need awareness -> evaluation of solutions -> resolution of problems -> purchase -> implementation
1. Evaluation of Solutions – provide useful information that helps with informed choice
2. Need Awareness – help determine magnitude of problem and identify solution
3. Resolution of Problems – high quality proposal
4. Purchase – hassle-free process and be your customer’s advocate
5. Implementation – quality monitoring of delivery through invoice, and follow-up to
ensure satisfaction
Transactional Process Buyer
Buyers are well aware of their needs
Become frustrated with salespeople who attempt to do a needs assessment, problem solving, or
relationship building
Value added:
o During the “purchase” and “implementation” steps of the process to make them hassle-
free
Consultative Process Buyer
Buyers may not be clear on, or even aware of, their needs as seen thru the product
Situations must be described as it relates to the customer – their pain, not your sol’n
Value added Expectations:
o Conduct a systematic assessment of situation
o Help customer evaluate solutions
o Help resolve any problems that surface prior to and post-purchase
Strategic Alliance Process Buyer
Requires a careful study of the proposed partner – B4 committing to a long term
Both parties must be prepared to explain how they will add value and commit resources to
establish and maintain the relationship
Maslow’s Hierarchy of Needs Personal Needs-
Provides salespeople with a practical way of understanding which need is most likely to dominate
customer behaviour in certain situations
Perception – a process through which sensations are interpreted, using knowledge and experience
Selective attention – screen out or modify stimuli if in conflict with previously learned attitudes
A Buying Motive – an aroused need, drive, or desire that initiates the buying-decision process
Perceptions influence and shape this behaviour
Some are influenced by more than one buying motive
Dominant Buying Motive – has the greatest influence on a customer’s buying decision
Emotional Buying Motives – prompts the prospect to act as a result of an appeal to some sentiment or
passion
Rational Buying Motives – prompt the prospect to act because of an appeal to the prospect’s reason or
better judgment such as price, quality, and availability of technical assistance
Objective
Patronage Buying Motives – causes the prospect to buy a product from one particular company rather
than another
Include superior service, attractive décor, product selection, and competence of the salesperson
Product Buying Motives – are reasons that cause the prospect to buy one particular product brand or
label over another
Include brand, quality, price, and design or engineering preference
Quiz
1. According to the publisher of Selling Power magazine, the main purpose of a salesperson is
a. to add value in the selling process.
2. The primary goal of prospecting is
a. to build a base of current and potential customers.
3. The average company is likely to lose what percentage of customers each year?
a. 5 to 10 percent
b. 15 to 20 percent
4. One thing salespeople do to improve the quality of prospects is
a. None of the above.
b. improve the quality of the prospects.
c. All of the above.
d. increase the number of potential prospects.
e. increase the quality of potential prospects.
5. Some sources of prospects include
a. referrals and trade shows.
b. trade publications and Web sites.
c. telemarketing and sales letters.
d. networking and seminars.
e. All of the above.
6. Cold calling means
a. calling people who may or may not be actual prospects.
7. Which of the following methods of educating prospective customers has a major advantage over
the others?
a. educational seminars
8. One reason qualifying prospects is important is
a. because salespeople need to spend time calling on legitimate prospects.
9. Lasting partnerships in business are generally based on
a. strong personal relationships.
10. The major barrier to prospecting is
a. lack of time.
1. Developing a sense of personal worth is an esteem need.
a. False
2. A major dimension of a customer strategy is to understand customer buying needs and motives.
a. True
3. A one-to-one marketing strategy means that all customers are treated the same.
a. False
4. The first-time purchase of a product is considered a new-task buy.
a. True
5. Systems selling appeals to buyers who prefer a packaged solution from a single seller.
a. True
6. The foundation of a successful sales effort is knowing what products customers want to buy.
a. False
7. In transactional sales, buyers will become frustrated when salespeople attempt to be problem
solvers.
a. True
8. One question that must be answered according to the Buyer Resolution Theory is "What should
I buy?"
a. True
9. In a world of look-alike products, emotional factors can have considerable influence.
a. True
10. A product buying motive is usually based on buying from a preferred supplier.
a. False