Chapter 1

Personal Selling and the Marketing Concept

LEARNING OBJECTIVES Describe economic contributions of selling Define personal selling Describe the evolution of selling Define strategic selling Name four broad selling model strategies Define and discuss partnering Describe personal benefits of selling skills

DEFINITION OF PERSONAL SELLING

Personal Selling is a process of developing customer relationships, discovering customer needs, matching appropriate products with these needs, and communicating benefits through informing, reminding, and/or persuading.

PHILOSOPHIES OF SELLING

• Focus on satisfying customer needs

• Evolved from marketing concept

• Emphasis on customer service/long-term relationships

• Practices ethical/win-win

• Becoming the standard

• Focus on pushing products

• Evolved from production concept

• Emphasis on closing a sale/finding new customers

• Produces caveat emptor

• Still practiced by some

PARTNERING VERSUS PEDDLING

FIGURE 1.1: SELLING MODEL

Strategic/Consultative Selling Model

Strategic step Prescription

DEVELOP A PERSONALSELLING PHILOSOPHY

ADOPT MARKETING CONCEPT VALUE PERSONAL SELLING BECOME A PROBLEM SOLVER /PARTNER

TABLE 1.1: Evolution of Personal Selling

Marketing Era Begins mid “50s 1957-McKetterick Salespeople collect Focus on customer vs. product Info age begins customer information

Consultative Selling Era late “60s ”Counselor Selling” Identify buyer needsFocus on target vs. mass markets early “70s1973-”Consultative Information & negotia

tion Selling” replace manipulation

Strategic Selling Era early “80’s 1985-”Strategic Selling”Strategy & tactics

More focus on market niches

Partnering Era ‘90s “Lifetime customer” Customer drives the sale

Focus on individual customers “Partnering: Total quality relationships The Heart of Selling Today”

Evolution of Personal Selling (1950 to Present)

SALES & TIME IMPORTANT SELLINGMARKETING EMPHASIS PERIOD EVENTS EMPHASIS

FIGURE 1.2: MARKETING MIX

Product

Promotion

Place

Price

FIGURE 1.3: PRESENTATION GUIDE

Need discovery

Selection of

product

Need satisfactionpresentation

Servicingthe sale

FIGURE 1.4: SELLING MODEL EXTENDED

Strategic/Consultative Selling Model

Strategic step Prescription

DEVELOP A PERSONAL SELLING STRATEGY

DEVELOP A RELATIONSHIP STRATEGY

DEVELOP A PRODUCT STRATEGY

DEVELOP A CUSTOMER STRATEGY

DEVELOP A PRESENTATION STRATEGY

ADOPT MARKETING CONCEPT VALUE PERSONAL SELLING BECOME A PROBLEM SOLVER/PARTNER

ADOPT DOUBLE WIN PHILOSOPHY PROJECT PROFESSIONAL IMAGE MAINTAIN HIGH ETHICAL STANDARDS

BECOME A PRODUCT EXPERT ADOPT FEATURE/BENEFIT PROCESS POSITION PRODUCT

UNDERSTAND BUYER BEHAVIOR DISCOVER CUSTOMER NEEDS DEVELOP PROSPECT BASE

PREPARE OBJECTIVES DEVELOP PRESENTATION PLAN PROVIDE OUTSTANDING SERVICE

Place Promotion

Product Place

FIGURE 1.5: CUSTOMER STRATEGY LOOP

Sales staff atBaxter Healthcare

Medical personneland buyers

Information

Information

FIGURE 1.6: BASIC STRATEGIES

BUILDING QUALITY

PARTNERSHIPS

RELATIONSHIP STRATEGY

PRODUCTSTRATEGY

CUSTOMERSTRATEGY

PRESENTATIONSTRATEGY