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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-1
CH
AP
TE
R
1Personal Selling
and the Marketing Concept
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-2
Learning ObjectivesLearning Objectives
• Define personal selling and describe the three prescriptions of a personal selling philosophy
• Describe contributions of personal selling to the information economy
• Discuss personal selling as an extension of the marketing concept
• Describe the evolution of consultative selling from the marketing era to the present
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-3
Learning ObjectivesLearning Objectives
• Define strategic selling and name four broad strategic areas of the Strategic/Consultative Selling Model
• Describe evolution of partnering and the nature of a strategic selling alliance
• Explain how value-added strategies enhance personal selling
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-4
Definition of Personal SellingDefinition 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
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-5
Philosophy of Personal SellingPhilosophy of Personal Selling
• A strategic resource is information• Salespeople are the eyes/ears of the
marketplace• Salespeople can collect wide range of
competitive intelligence
• Business is defined by customer relationships
• Sales success depends on adding value
Michael Hammer, consultant and author of The Agenda, says, “The real new economy is the customer economy.”
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A Shift in EmphasisA Shift in Emphasis
FIGURE 1.2
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Personal Selling in the Personal Selling in the Information AgeInformation 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
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The Marketing ConceptThe Marketing Concept
• A principle that holds that achieving organizational goals depends on: • Knowing the needs and wants of target
markets • Delivering the desired product
• Paths to sales and profits are:• Customer focus• Value
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The Marketing MixThe Marketing Mix
FIGURE 1.3
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Important Role of Personal SellingImportant Role of Personal Selling
• Often the major promotional method
• Firms invest in personal selling
• Personal selling has evolved because:• Products and services are more sophisticated
and complex• Competition has greatly increased• Customer demand for quality, value, and
service has risen sharply
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Evolution of Consultative SellingEvolution of Consultative Selling
• Consultative selling era (late 1960s to early 1970s)• Mass markets break into target markets• Emphasis on need identification• Information sharing and negotiation replace
manipulation
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-12
Evolution of Consultative SellingEvolution of Consultative Selling
Transactional selling• Process that serves the buyer primarily
interested in price and convenience
Consultative selling• Process that developed from the marketing
concept, emphasizing needidentification
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-13
Evolution of Consultative SellingEvolution of Consultative Selling
• 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
Features of consultative selling include:
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Evolution of Strategic SellingEvolution of Strategic Selling
• A strategic market plan• 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
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-15
Evolution of Strategic SellingEvolution of Strategic Selling
• Tactics• Specific techniques, practices, and methods
used in customer interaction
• Strategy• Carefully conceived plan needed to
accomplish sales objectives • A prerequisite to tactical success
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Evolution of Strategic SellingEvolution of Strategic Selling
• 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
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FIGURE 1.5
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Develop a Relationship StrategyDevelop a Relationship Strategy
Adopt a win-win philosophy
Project a professional image
Maintain high ethical standards
“People don’t care how much you know until they know how much you care.”
Harvey B. Mackay, founder of Mackay Envelope Corporation
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Develop a Product StrategyDevelop a Product Strategy
Become a product expert
Sell benefits, not features
Configure value-added solutions
“Diagnose before you prescribe.” Stephen Covey, author of The 7 Habits of Highly Effective People
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Develop a Presentation StrategyDevelop a Presentation Strategy
Prepare objectives
Develop a presentation plan
Provide outstanding service
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Develop a Customer StrategyDevelop a Customer Strategy
Understand the buying process
Understand buyer behavior
Develop prospect base
Patricia Seyold, best-selling author of The Customer Revolution says, “We are in the midst of a profound
revolution: the customer revolution.”
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Interrelationship of Basic Interrelationship of Basic StrategiesStrategies
FIGURE 1.7
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Evolution of PartneringEvolution 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 Customer Relationship Management
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-24
Strategic AlliancesStrategic 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
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-25
Strategic Selling AlliancesStrategic Selling Alliances
FIGURE 1.7
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Example of Partnering:Example of Partnering:Campbell Food Service, Inc.Campbell Food Service, Inc.
See theWebsite
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Example of Partnering:Example of Partnering:Cushman &WakefieldCushman &Wakefield
See theWebsite
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Partnering is Enhanced with Customer Partnering is Enhanced with Customer Relationship ManagementRelationship Management
See theWebsite
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-29
Value CreationValue 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
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Customer Value ModelCustomer Value Model
FIGURE 1.8
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Value-Added Selling Example:Value-Added Selling Example:Wisconsin Milk Marketing BoardWisconsin Milk Marketing Board
See theWebsite
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Key ConceptKey ConceptDiscussion Questions Discussion Questions
• Define personal selling and describe the three prescriptions of a personal selling philosophy
• Describe the contributions of personal selling to the information economy
• Discuss personal selling as an extension of the marketing concept
• Describe the evolution of consultative selling from the marketing era to the present
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-32
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-33
Key ConceptKey ConceptDiscussion Questions Discussion Questions
• Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model
• Describe the evolution of partnering and the nature of a strategic selling alliance
• Explain how value-added selling strategies enhance personal selling
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-33
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-34
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall
1-34
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