ch. 1 professional sales

Overview of Personal Selling

• Personal selling jobs are classified as sales support, new business, existing business, inside sales, direct to consumers, or combination sales.
• Six criteria to define a profession include operating from a substantial knowledge base, contributing significantly to society, having a defined organizational culture, possessing a unique skillset, having the autonomy to make decisions, and having a high degree of public trust in the profession, as well as adhering to an ethical code.
• Key attributes of a successful salesperson incorporate active listening, service orientation, oral and written communication skills, logical reasoning, problem-solving and strategic skills, dependability, attention to detail, motivation, persistence, integrity, initiative, and adaptability.

Defining Personal Selling

• Personal selling relies on interpersonal interactions between buyers and sellers, which helps initiate, develop, and enhance customer relationships.
• The interpersonal aspect distinguishes it from mass-market advertising and sales promotions.
• Personal selling involves salespeople engaging with buyers before, during, and after a sale, allowing for immediate customer feedback.
• Personal selling is crucial for most businesses, notably in business-to-business (B2B) marketing where more is invested in selling than in advertising or public relations.

Trust-Based Relationship Selling

• Trust-based relationship selling focuses on earning customer trust by meeting needs and contributing to customer value.
• Different from traditional selling, it prioritizes solving customer problems and adding value over maximizing short-term sales.

Approaches to Personal Selling

• Two key approaches exist: transaction-focused traditional selling and trust-based relationship selling

Skills and Focus in Selling

• Skills for transaction-focused selling: sales techniques for finding prospects and crafting sales presentations.
• Primary focus in transaction-focused selling: the salesperson and the selling firm.
• Goals of transaction-focused selling: closed sales and order volume.
• The role of salesperson in transaction-focused selling: call-making and closing sales.
• Nature of communication in transaction-focused selling: one-way, pushing products from salesperson to customer.
• Level of involvement in transaction-focused selling: isolated from the customer's decision-making process.
• Knowledge required for transaction-focused selling: product and competitive knowledge, opportunity identification, and account strategies.
• Post-sale support: Little to none as focus is aimed at acquiring new customers.
• Skills for trust-based selling: encompasses sales techniques, information gathering, listening, questioning, strategic problem-solving, creating unique value, and teamwork.
• Primary focus in trust-based selling: the customer and their customers.
• Goals of trust-based selling: trust, joint planning, mutual benefits, and enhanced profits.
• Role of salesperson in trust-based selling: a business consultant and long-term ally.
• Nature of communication in trust-based selling: two-way and collaborative dialogue.
• Level of involvement in trust-based selling: actively involved in the customer's decision-making process.
• Knowledge required for trust-based selling: product expertise, company resources, competitive insights, account strategies, cost understanding, opportunity identification, and deep knowledge of the customer's business and industry.
• Post-sale support: ensure satisfaction, keep the customer informed, add value, and manage opportunities.

Importance of Customer Value

• Customer value focuses on prospect needs, determined by customers' perceptions of what they gain in exchange for what they give up.
• Customers assess the salesperson's helpfulness in saving money, and evaluate the salesperson's dependability.
• Personal selling recognizes the importance of hearing customer needs and wants.

Importance of Sales Dialogue

• Sales dialogue involves conversations between buyers and sellers to build relationships.
• Effective business conversations are customer-focused, purposeful, and beneficial for both parties.
• The purpose of these conversations is to determine if further sales attention is warranted, clarify the customer's situation in the buying processes, discover customer needs, communicate added value, negotiate deals, and inform customers of opportunities for increased value.

Evolution of Professional Selling

• Sales professionalism adopts a truthful, customer-oriented approach to satisfy both the customer's and the selling firm's long-term needs.
• Ethical standards, professional organizations, and continuous learning greatly benefit salespeople.

Contributions of Personal Selling

• Salespeople enhance society by encouraging the adoption of innovative products and services.
• Sales representatives as "Revenue Producers" facilitate the top-line growth of a company.

Alternative Personal Selling Approaches

• Mental States Selling assumes a standardized buying process applicable to most buyers who can be guided through predictable mental states or steps.
• Need Satisfaction Selling employs questioning to uncover important buyer needs, satisfying a particular requirement.
• Problem Solving Selling identifies needs and develops alternative solutions, involving customer education and considering competitors.
• Consultative Selling aids customers in achieving strategic goals by providing products, services, and expertise.

Trust-Based Sales Process

• A productive sales approach defines customer needs
• Illustrates how the sales organization can deliver value, and seeks customer acknowledgment, which leads to mutually beneficial decisions between the buyer and seller.
• Promotes "selling with" customers for mutually beneficial results.

Sales Value Proposition (SVP)

• Sales Value Proposition (SVP) is a tool for conveying the unique value of a solution, however, only 10% of executives find sales calls to be valuable.
• A contemporary salesperson mixes personal interactions with email, video conferencing, and social media to ensure timely and insightful customer information.

5 Basic Approaches to Personal Selling

• Transaction-focused Traditional Selling vs. Trust-based Relationship Selling
• Stimulus Response: stimuli can elicit predictable responses, akin to training an animal.
• Mental States: focuses on attention, interest, desire, and action.
• Need Satisfaction: The probes to uncover needs, offer to satisfy needs, and continue selling until the purchase decision.
• Problem Solving: identifying needs, developing alternative solutions and educating the customer: Define problem, generate and evaluate solutions, and continue selling.
• Consultative Selling: helps customers achieve their strategic goals by using products, services, and expertise.

Vocabulary

• Prospect: A potential customer.
• Product: An article or substance for sale.
• Fortune 500: The 500 largest publicly held US corporations by total revenue.
• Annual Revenue: The total amount of money made by sales or services in a given year before costs.
• Headquarters: The managerial and administrative center of an organization.
• Competitor: An entity that sells the same goods or services in the same market.
• Vendor: A person or company offering something for sale.
• Personal Selling: Interpersonal interactions between buyers and sellers to initiate, develop, and enhance relationships.
• Business-to-Business (BtoB) Selling: Interaction between a salesperson/team and individuals from another organization.
• Revenue Producers: Sales professionals responsible for top-line achievements on the P/L statement.
• Adaptive Selling: Altering messages and behaviors to suit unique situations.
• ROI: Return on Investment - the benefit (or return) of an investment is divided by the cost of the investment.
• SWOT: Strengths, Weaknesses, Opportunities, and Threats analysis.