Is an important part of marketing that relies on interpersonal interactions between buyers and sellers to initiate develop and enhance customer relationships?

Presentation on theme: "Overview of Selling."— Presentation transcript:

1 Overview of Selling

2 Personal Selling – Defined
An important part of marketing that relies heavily on interpersonal interactions between buyers and sellers to initiate, develop, and enhance customer relationships.

3 Trust-Based Relationship Selling
Requires that salespeople earn customer trust and that their selling strategy meets customer needs and contributes to the creation, communication, and delivery of customer value.

4 Customer Value The customer’s perception of what they get for what they have to give up.

5 Importance of Sales Dialogue
Allows for more thorough qualifying. Demonstrates sincere interest in the prospective customer. Helps Determine prospective customer’s unique needs. Ensures meaningful presentation of value- added solutions. Promotes open communication and satisfaction feedback. Sales Dialogue: business conversation between buyers & sellers that occur as salespeople attempt to initiate, develop, & enhance customer relationships.

6 Transaction-Focused Selling vs. Trust-Based Relationship Selling

7 Transaction-Focused Selling vs. Trust-Based Relationship Selling

8 Evolution of Personal Selling
Peddlers selling door to door served as intermediaries Selling function became more structured 1800s 1900s 2000s Industrial Revolution Post-Industrial Revolution War and Depression Modern Era Business organizations employed salespeople Selling function becoming more professional

9 Evolution of Personal Selling (The past several decades)
From reliance on Canned Sales Presentation: sales presentations that include scripted sales calls, memorized presentations, and automated presentations. To greater focus on Sales Professionalism: a customer-oriented approach that uses truthful, non-manipulative tactics to satisfy the long-term needs of both the customer and the selling firm.

10 Continued Evolution of Personal Selling

11 Contributions of Personal Selling: Salespeople and Society
Salespeople help stimulate the economy. Salespeople help with the diffusion of innovation.

12 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.

13 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.

14 Ethical Dilemma

15 Alternative Personal Selling Approaches
Stimulus Response Selling Mental States Selling Need Satisfaction Selling Problem Solving Selling Consultative Selling Adaptive Selling: the ability of a salesperson to alter his/her sales messages and behaviors during a sales presentation or as they encounter different sales situations and different customers.

16 Stimulus Response Selling
Simple in design; assumes conditioned response improves likelihood of success; a risky and unreliable strategy.

17 Mental States Selling Assumes buyer can be led through mental states; promotes one-way communication; a risky and unreliable strategy.

18 Ethical Dilemma

19 Need Satisfaction Selling
Interact with buyer to determine existing needs; present solutions to needs; solutions limited to seller’s products.

20 Problem Solving Selling
Interact with buyer to determine existing and potential needs; present multiple solutions not limited to seller’s products.

21 Strategic Orchestrator
Consultative Selling Strategic Orchestrator Business Consultant Long-Term Ally The process of helping customers reach their strategic goals by using the products, services, and expertise of the selling organization.

22 The Sales Process - Overview

23 Role Play

24

25 Sales Management and Sales 2.0

26 Sales Management Process
Defining the Strategic Role of the Selling Function Developing the Salesforce Directing the Salesforce Determining Salesforce Effectiveness and Performance

27 Sales Management Process
Defining the Strategic Role of the Sales Function Salesforce structure Sales strategies Developing the Salesforce Recruiting and selecting sales talent Establishing training strategies/programs Directing the Salesforce Setting salesforce goals and objectives Implementing incentive programs Overseeing and coaching salesforce Determining Salesforce Effectiveness and Performance Establishing and administering evaluation measures & systems Providing feedback for future development

28 Sales Management Positions (Example)
Vice President of Sales Regional Sales Manager Field Sales Manager

29 Sales Management Best Practices
Create a customer-driven culture throughout the sales organization and firm. Recruit and hire the best sales talent. Train and coach the right skill set. Focus on key strategic issues by segmenting accounts in meaningful ways and providing differentiated offering to find, win, and retain customers.

30 Sales Management Best Practices
Implement formal sales and relationship-building processes. Use information technology effectively to learn about customers. Integrate sales with other business functions, especially marketing.

31 Developing and Implementing Effective Sales Strategies
Account Targeting Strategy Classification of accounts into categories Relationship Strategy Type of relationship sought for each category Selling Strategy Develop selling approach for each type or relationship

32 Developing and Implementing Effective Sales Strategies
Selling Strategy – Involves the planning of sales messages and interactions with customers. Selling strategy can be defined and executed at three levels. Groups of Customers Individual Customer Customer Encounters 1 2 3

33 Selling and Relationship Strategies

34 Sales Channel Strategy
Determination of how the organization will reach its customers when executing the sales effort. Options include a company salesforce (individual or teams), industrial distributors, independent representatives, internet, telemarketing, and so forth.

35 Sales Structure Issues
The degree to which each salesperson could perform all the selling tasks. Specialization The degree to which authority and responsibility are placed at higher management levels. Centralization The number of individuals who report to each sales manager Span of Control

36 Staff vs. Line Positions

37 Sales Organization Alternatives

38 Recruiting and Selecting Sales Talent

39 Recruitment and Selection Process – Planning –

40 Recruitment and Selection Process – Locating –
Career/Job Fairs College Career Centers On-line Career Sites (e.g., Monster.com and Careerbuilder.com) Internal (e.g., employee referral) Employment Agencies

41 Recruitment and Selection Process – Evaluating –
Resume Screening Interviews Assessments Role Plays Written Questionnaires Ride-Alongs Background Checks

42 Sales Training Process

43 Ethical Dilemma

44 Directing the Salesforce

45 Directing the Salesforce

46 Directing the Salesforce

47 Directing the Salesforce

48 The Role of Power Sources Advice Legitimate Coercive Reward Expert
Referent Don’t be reluctant to use any form of power. Be careful not to overuse the power of position or punishment. Avoid rewarding all desired job outcomes or behaviors. Enhance power through learning and establishing a good working relationship with subordinates.

49 Communication and Coaching
Encourage open communication. Seek feedback. Use persuasion and promises. Establish a team approach. Encourage self-evaluation and correction. Ensure salespeople diagnose success as well as failures. Recognize salespeople are individuals. Follow-up on coaching sessions. Serve as a role model. Coaching: Focus on continual development of salespeople through provision of feedback and serving as a role model.

50 Ethical Dilemma

51 Determining Salesforce Effectiveness and Performance
Sales organization structure, strategies, deployment, management, and uncontrollable environmental influences also impact sales organization effectiveness.

52 Evaluating Sales Organization Effectiveness

53 Evaluating Sales Organization Effectiveness

54 Evaluating Sales Organization Effectiveness

55 Evaluating Salesperson Performance

56 Criteria for Evaluating Salesperson Performance
Behavior-Based Evaluation of the activities salespeople perform in the generation of sales and in completing non-selling responsibilities (e.g., training, product demonstrations, sales calls, etc.). Outcome-Based Evaluation of the actual sales results salespeople achieve (e.g., sales quota, market share gain, etc.). Evaluation Methods Should Possess: Reliability Validity Standardization Practicality Comparability Discriminability Usefulness

57 Sales 2.0 The use of customer-driven processes enabled by the latest Web technology to co-create value with customers. CRM Social Networking Cloud Computing

58 Sales 2.0

59 Role Play

What is an important part of marketing where interpersonal interactions between buyers and sellers is used to initiate develop and enhance customer relationships?

Is a marketing communications tool that relies heavily on interpersonal communication and interaction between buyers and sellers?

What is interpersonal selling?

What is the relationship between personal selling and marketing?