Module One Overview of Personal Selling Learning Objectives 1. Describe the evolution of personal selling from ancient times to the modern era. 2. Explain the contributions of personal selling to society, business firms, and customers. 3. Distinguish between transaction-focused traditional selling and trust-based relationship selling. Professional Selling: A Trust-Based Approach Module 1: Overview of Personal Selling Ingram LaForge Avila Schwepker Jr. Williams Learning Objectives 4. Discuss five alternative approaches to selling. 5. Describe the three primary roles fulfilled by consultative salespeople 6. Understand the sales process as a series of interrelated steps. Professional Selling: A Trust-Based Approach Module 1: Overview of Personal Selling Ingram LaForge Avila Schwepker Jr. Williams Setting the Stage UPS Builds Trust and Long-Term Customer Relationships 1. What does Carl Strenger, a UPS Vice President, mean by a “consultative discussion” with the customer? 2. When teaming up with UPS Capital sales personnel, what is the focus of the overall sales strategy? Professional Selling: A Trust-Based Approach Module 1: Overview of Personal Selling Ingram LaForge Avila Schwepker Jr. Williams Personal Selling – Defined Personal selling refers to personal communication with a an audience through paid personnel of an organization or its agents in such a way that the audience perceives the communicator’s organization as being the source of the message. Professional Selling: A Trust-Based Approach Module 1: Overview of Personal Selling Ingram LaForge Avila Schwepker Jr. Williams Evolution of Personal Selling Peddlers selling door to door . . . served as intermediaries Selling function became more structured 1800s 1900s 2000s st As we begin Post-Industrial the 21 century, selling continues toModern develop, Industrial War and becomingRevolution more professional and more relational Revolution Depression Era Business organizations employed salespeople Professional Selling: A Trust-Based Approach Module 1: Overview of Personal Selling Selling function became more professional Ingram LaForge Avila Schwepker Jr. Williams Contributions of Personal Selling: Salespeople and Society • Salespeople help stimulate the economy • Salespeople help with the diffusion of innovation Professional Selling: A Trust-Based Approach Module 1: Overview of Personal Selling Ingram LaForge Avila Schwepker Jr. Williams Contributions of Personal Selling: Salespeople and the Employing Firm • Salespeople generate revenue • Salespeople provide market research and customer feedback • Salespeople become future leaders in the organization Professional Selling: A Trust-Based Approach Module 1: Overview of Personal Selling Ingram LaForge Avila Schwepker Jr. Williams Contributions of Personal Selling: Salespeople and the Customer • Salespeople provide solutions to problems • Salespeople provide expertise and serve as information resources • Salespeople serve as advocates for the customer when dealing with the selling organization Professional Selling: A Trust-Based Approach Module 1: Overview of Personal Selling Ingram LaForge Avila Schwepker Jr. Williams Transaction-Focused vs. Relationship Focused Transaction-Focused Relationship-Focused • • • • • • Short term thinking Making the sale has priority over most other considerations Interaction between buyer and seller is competitive Salesperson is selfinterest oriented Professional Selling: A Trust-Based Approach • • Long term thinking Developing the relationship takes priority over getting the sale Interaction between buyer and seller is collaborative. Salesperson is customer-oriented Module 1: Overview of Personal Selling Ingram LaForge Avila Schwepker Jr. Williams Classification of Personal Selling Approaches • • • • Professional Selling: A Trust-Based Approach Stimulus Response Selling Mental States Selling Need Satisfaction Selling Problem Solving Selling Module 1: Overview of Personal Selling Ingram LaForge Avila Schwepker Jr. Williams Stimulus Response Selling Salesperson Provides Stimuli Professional Selling: A Trust-Based Approach Buyer Responses Sought Module 1: Overview of Personal Selling Continue Process until Purchase Decision Ingram LaForge Avila Schwepker Jr. Williams Mental States Selling Attention Professional Selling: A Trust-Based Approach Interest Conviction Module 1: Overview of Personal Selling Desire Action Ingram LaForge Avila Schwepker Jr. Williams Need Satisfaction Selling Uncover and Confirm Buyer Needs Professional Selling: A Trust-Based Approach Present Offering to Satisfy Buyer Needs Module 1: Overview of Personal Selling Continue Selling until Purchase Decision Ingram LaForge Avila Schwepker Jr. Williams Problem Solving Selling Define Problem Professional Selling: A Trust-Based Approach Generate Alternative Solutions Evaluate Alternative Solutions Module 1: Overview of Personal Selling Continue Selling until Purchase Decision Ingram LaForge Avila Schwepker Jr. Williams Consultative Selling Business Consultant The process of helping customers reach their strategic goals by using the products, service, and expertise of the selling organization. Strategic Orchestrator Long-term Ally Professional Selling: A Trust-Based Approach Module 1: Overview of Personal Selling Ingram LaForge Avila Schwepker Jr. Williams The Sales Process: An Overview Selling Foundations Initiating Customer Relationships Developing Customer Relationships Enhancing Customer Relationships Selling Strategy Professional Selling: A Trust-Based Approach Module 1: Overview of Personal Selling Ingram LaForge Avila Schwepker Jr. Williams The Sales Process: Selling Foundations In order to be successful in today’s global business environment, salespeople must have a solid relationship building foundation. They must: Be Trustworthy Behave Ethically Understand Buyer Behavior Possess Excellent Communication Skills Professional Selling: A Trust-Based Approach Module 1: Overview of Personal Selling Ingram LaForge Avila Schwepker Jr. Williams The Sales Process: Selling Strategy In order to be successful in today’s global business environment, salespeople must also think and act strategically. The must develop strategies for: Each Sales Call Each Customer Their Sales Territories Each strategy is related to the other Professional Selling: A Trust-Based Approach Module 1: Overview of Personal Selling Ingram LaForge Avila Schwepker Jr. Williams The Sales Process Initiating Customer Relationships Developing Customer Relationships Enhancing Customer Relationships • Sales Prospecting Presentation Delivery • Earning Preapproach Commitment Adding Customer Value through Follow-up, • Presentation Planning Self-leadership, and Teamwork • Approaching the Customer Professional Selling: A Trust-Based Approach Module 1: Overview of Personal Selling Ingram LaForge Avila Schwepker Jr. Williams