1
Personal Selling and the
Marketing Concept
1-1
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
1-2
Broad Concept of Product
Includes:

Information

Services

Ideas

Issues

“Hard goods”
1-3
What is the main product the
following companies offer?
Strategic/Consultative
Selling Model
FIGURE
1-4
1.1
Personal Selling in the Information Age
1-5

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
A Shift in Emphasis
Industrial economy

Advances occur in
transportation and
manufacturing

Information economy

Advances occur in
information technology
Strategic resources are
capital and natural resources

Strategic resource is
information

Products and factories define
the business

Business is defined by
customer relations

Sales success means meeting
sales quotas

Sales success depends on
adding value
1-6
Personal Selling as an Extension of
the Marketing Concept
Move from a product orientation (peddling)
to a customer orientation (partnering)
1-7
Important Role of Personal Selling
1-8

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
Evolution of Personal Selling

Marketing era begins (early 1950s)
•

Consultative selling era (late 1960s to early 1970s)
•
•
•
1-9
Salespeople as a source of strategic information on
product/market/service
Mass markets break into target markets
Emphasis on need identification
Information sharing and negotiation replace
manipulation
Evolution of Personal Selling


1-10
Strategic selling era (early 1980s)
•
Market niches require more planning
•
Equal emphasis on strategy and tactics
•
Product positioning vital
Partnering era (1990 to present)
•
Customer, not product, as driving force
•
Emphasis on strategies that create customer value
Evolution of Consultative Selling
Transactional selling
•
Process that serves the
buyer primarily interested
in price and convenience
Consultative selling
•
1-11
Process that developed from
the marketing concept,
emphasizing need
identification
Evolution of Consultative Selling
Features of consultative selling include:
•
•
•
•
1-12
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
Evolution of Strategic
Selling

A Strategic Market Plan
•
•
•
•
1-13
Outlines necessary methods and resources
Considers areas to be coordinated
 Finance
• Personnel
 Production
• Marketing
Influences the sale of products
Serves as guide for strategic selling plan
Strategy and Tactics

Tactics
•

Strategy
•
•
1-14
Specific techniques,
practices, and
methods used in
customer interaction
Carefully conceived plan needed to accomplish sales
objectives
A prerequisite to tactical success
Strategy vs. Tactics Exercise
Strategy Tactic Identify the following:




1-15
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
Selling Model
1-16
FIGURE
1.5
1-20
Develop a Personal Selling
:
Philosophy
1
Step



1-17
Adopt the marketing concept
Value personal selling
Assume the role of a problem solver/partner
Step



1-18
2
Develop
a
Relationship
:
Strategy
Adopt a win-win philosophy
Project a professional image
Maintain high ethical standards
Step



1-19
:
3
Develop a Product
Strategy
Become a product expert
Sell benefits, not features
Configure value-added solutions
Step



1-20
4
Develop
a
Customer
:
Strategy
Understand the buying process
Understand buyer behavior
Develop prospect base
Step



1-21
5
Develop
a
Presentation
:
Strategy
Prepare objectives
Develop a presentation plan
Provide outstanding service
Interrelationship of Basic
Strategies
FIGURE
1-22
1.7
E-Commerce and the Complex Sale
 Electronic
business
Complex sales involve several forms of
information technology support, including:
•
•
•
•

1-23
Electronic product catalogs
Contact management systems
PowerPoint and Excel
Internet applications
Electronic commerce
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
1-24
Example of
Partnering:
Cushman &
Wakefield
1-25
Strategic Alliances

Formed by companies that have similar business
interests and, thus, gain a mutual competitive
advantage

The goal is to achieve a marketplace advantage by
teaming up with another firm

Highest form of consultative selling required to
build win-win alliances

Can you cite some current examples of strategic
alliances?
1-26
Value Creation
1-27

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
ValueAdded
Selling
Example
1-28