Personal Selling and the Marketing Concept

1. Selling Today 10th Edition CHAPTER Manning and Reece Personal Selling and the Marketing Concept 1

2. Definition of Personal Selling • Person-to-person communication with a prospect • Personal selling is a process of • Developing relationships • Discovering needs • Matching products with needs • Communicating benefits • Viewed as a process that adds value

3. Strategic/ConsultativeSelling Model 1.1 FIGURE

4. Personal Selling in the Information Age • An evolution from the industrial economy to the information economy • Began in the 1950s • New emphasis is information exchange rather than producing goods • Implications for personal selling

5. Industrial economy Advances occur in transportation and manufacturing Strategic resources are capital and natural resources Products and factories define the business Sales success means meeting sales quotas Information economy Advances occur in information technology Strategic resource is information Business is defined by customer relations Sales success depends on adding value A Shift in Emphasis

6. Personal Selling as an Extension of the Marketing Concept Move from a product orientation (peddling) to a customer orientation (partnering)

7. The Marketing Mix 1.3 FIGURE

8. Important Role of Personal Selling • Often the major promotional method • Firms invest in personal selling • Personal selling has evolved because: • Products and services are more complex • Competition has greatly increased • Customer demand for quality, value, and service has risen sharply

9. Evolution of Consultative Selling Features of consultative selling include: • Customer is a person to be served, not a prospect to be sold • Two-way communication identifies (diagnoses) customer’s needs; no high-pressure sales presentation • Emphasis on information giving, problem solving, and negotiation rather than manipulation • Emphasis on service after the sale

10. Strategy and Tactics • Tactics • Specific techniques,practices, and methods used incustomer interaction • Strategy • Carefully conceived plan needed to accomplish sales objectives • A prerequisite to tactical success

11. Strategy vs. Tactics Exercise Identify the following: Strategy Tactic Use a fact sheet comparing your product to the competition Analyze the features of your leading competitors Use specific questions to diagnose needs Analyze a territory to determine those with specific needs    

12. Selling Model 1.5 FIGURE 1-20

13. 1 Develop a Personal Selling Philosophy Step :  Adopt the marketing concept  Value personal selling  Assume the role of a problem solver/partner

14. 2 Develop a Relationship Strategy Step :  Adopt a win-win philosophy  Project a professional image  Maintain high ethical standards

15. 3 Develop a Product Strategy Step :  Become a product expert  Sell benefits, not features  Configure value-added solutions

16. 4 Develop a Customer Strategy Step :  Understand the buying process  Understand buyer behavior  Develop prospect base

17. 5 Develop a Presentation Strategy Step :  Prepare objectives  Develop a presentation plan  Provide outstanding service

18. E-Commerce and the Complex Sale • Electronic business Complex sales involve several forms of information technology support, including: • Electronic product catalogs • Contact management systems • PowerPoint and Excel • Internet applications • Electronic commerce

19. Evolution of Partnering • Buzzword of 1990s, became business reality in 2000s • “Strategically developed, long-term relationship that solves the customer’s problems” • Relationship selling relies on a customized approach to each client • Enhanced with high ethical standards and CRM

20. Value Creation • Value-added selling = creative improvements that enhance customer experience • The information economy rewards salespeople who add value at each step • When customer is not aware of value added by salespeople, the focus may shift to price