9TH EDITION
Manning and Reece
CHAPTER 1
PERSONAL SELLING
AND THE MARKETING
CONCEPT
PART I
1-1
LEARNING OBJECTIVES
Describe contributions of personal selling to
information economy
Define personal selling—discuss as extension of
marketing concept
Describe evolution of consulting selling
Define strategic selling and name four strategic
areas of selling model
Describe evolution of partnering—discuss how it
relates to quality improvement
Explain how value-added strategies enhance
personal selling
1-2
CHANGES IN SELLING WORLDWIDE
Scope of
competitive selling
environment
Necessary skills to
sell intangibles
Adjustment to
information age
1-3
PERSONAL SELLING IN INFORMATION
AGE
Evolution from industrial to information
economy
INDUSTRIAL--1950s
INFORMATION--PRESENT
See Table 1-1.
1-4
EVOLUTION OF PERSONAL SELLING
MARKETING ERA
1950s
CONSULTATIVE SELLING ERA
1960s-1970s
STRATEGIC SELLING ERA
1980s
PARTNERING ERA
1990s-Present
1-5
SHIFT TO INFORMATION ECONOMY
INDUSTRIAL
Advances in transport
and manufacturing
Strategic resources
are capital and
natural resources
Products and
factories define the
business
Sales success means
meeting quotas
INFORMATION
Advances in
information
technology
Strategic resource is
information
Business defined by
customer relations
Sales success
depends on adding
value
1-6
SELLING MODEL –STEP 1
Figure 1.2
1-7
PERSONAL SELLING:
DEFINITION
PERSON-TO-PERSON COMMUNICATION
WITH PROSPECT
–
–
–
–
–
DEVELOPING RELATIONSHIPS
DISCOVERING NEEDS
MATCHING PRODUCTS WITH NEEDS
COMMUNICATION OF BENEFITS
A PROCESS THAT ADDS VALUE
1-8
BROAD CONCEPT OF PRODUCT
INCLUDES:
ISSUES
INFORMATION
IDEAS
SERVICES
AS WELL AS
“HARD GOODS”
EVEN TV NETWORKS
REFER TO THEIR SHOWS
AS “PRODUCT”
1-9
DEVELOP PERSONAL SELLING
PHILOSOPHY
ADOPT MARKETING CONCEPT
VALUE PERSONAL SELLING
BE PROBLEM SOLVER/PARTNER
See Slide 15 for context.
1-10
PERSONAL SELLING EXTENSION
OF MARKETING CONCEPT
MOVING FROM
PRODUCT TO
CUSTOMER
ORIENTATION
1-11
MARKETING’S FOUR
P’s-MIX
PRODUCT
PLACE
PRICE
PROMOTION
1-12
MARKETING AND CONSULTATIVE
ERAS
MARKETING
– Sales team as source of strategic
information on…product--market-service
CONSULTATIVE
– Emphasis on need identification
– Transactional selling
– Information sharing & negotiation
replace manipulation
See Table 1-1
1-13
STRATEGIC AND PARTNERING ERAS
STRATEGIC
– Emphasis on strategic market plan
– Tactics to achieve strategic plan
– Product positioning vital
PARTNERING
– Customer, not product, as driving
force
– Emphasis on strategies that create
customer value
See Table 1-1
1-14
A STRATEGIC MARKET PLAN
Outlines necessary methods and
resources
Considers areas to be coordinated
Production
Finance
Marketing
Personnel
Influences the sale of products
Serves as guide for strategic selling plan
1-15
STRATEGY AND TACTICS
STRATEGY:
Carefully conceived plan required to
meet sales objectives
TACTICS:
Specific techniques, practices, and
methods used in customer interaction
1-16
APPLICATION
WHICH IS THE STRATEGY? WHICH
IS THE TACTIC?
– Use a fact sheet comparing
wondercell with all other batteries
TACTIC
– Analyze features of all leading alkaline
batteries
STRATEGY
1-17
SELLING
MODEL
Figure 1.5
1-18
STEP 1 : DEVELOP PERSONAL SELLING
PHILOSOPHY
ADOPT MARKETING CONCEPT
VALUE PERSONAL SELLING
BE PROBLEM SOLVER/PARTNER
1-19
STEP 2: DEVELOP RELATIONSHIP
STRATEGY
ADOPT WIN-WIN APPROACH
PROJECT PROFESSIONAL IMAGE
MAINTAIN HIGH ETHICAL STANDARDS
1-20
STEP 3: DEVELOP PRODUCT STRATEGY
BECOME PRODUCT EXPERT
SELL BENEFITS, NOT FEATURES
CONFIGURE VALUE-ADDED SOLUTIONS
1-21
STEP 4: DEVELOP CUSTOMER STRATEGY
UNDERSTAND BUYER BEHAVIOR
DISCOVER CUSTOMER NEEDS
DEVELOP PROSPECT BASE
1-22
STEP 5: DEVELOP PRESENTATION
STRATEGY
PREPARE OBJECTIVES
DEVELOP PRESENTATION PLAN
PROVIDE OUTSTANDING SERVICE
1-23
INTERRELATIONSHIP OF BASIC
STRATEGIES
Figure 1.7
1-24
E-COMMERCE AND COMPLEX SALE
Complex sales involve several forms
of information technology
support
Tools include:
–
–
–
–
electronic product catalogs
contact management systems
Internet applications
presentation packages like this one
See Chapters 5, 11, 15 for info tech
applications.
1-25
EVOLUTION OF PARTNERING
Buzzword of 1990s, business reality in
2000s
“Strategically developed long-term
relationship that solves customer’s
problems”
Relationship selling relies on customized
approach to each client
Enhanced with high ethical standards and
sales automation
1-26
CUSHMANN WAKEFIELD
1-27
STRATEGIC ALLIANCES
Goal: to gain
advantage by
teaming with other
company
Can you cite some
current examples
of strategic
alliances?
Need to build key
win-win situation
1-28
VALUE CREATION
Value = creative improvements
enhancing customer experience
Consumer economy rewards sales
people who add value at each step
When customer not aware of value
added by salespeople, focus may
shift to price
Last slide Chapter 1.
1-29