ENT4122 Ch1 Personal Selling PDF

ENT4122: Go to Market Strategies Chapter 1 – Personal Selling Textbook Update Ingram, LaForge, et. al, SELL 7th Edition. Cengage Publishing: ISBN-10: 035790138X Canvas: Modules ->Course Materials - > TEXTBOOK: SELL 7th Edition Volunteers Needed f...

ENT4122: Go to Market Strategies Chapter 1 – Personal Selling Textbook Update Ingram, LaForge, et. al, SELL 7th Edition. Cengage Publishing: ISBN-10: 035790138X Canvas: Modules ->Course Materials - > TEXTBOOK: SELL 7th Edition Volunteers Needed for Activity Looking for students with active social media presence for an activity we’re doing later this semester If you’re active on social media and interested, email me at [email protected] and include: - Subject: ENT4122 Social Media - Name - Social media handles (Instagram, Facebook, LinkedIn preferred) Your accounts will not be made public to the class Worth extra participation points Opening Discussion Think of a positive What made that experience you have had interaction a successful with a salesperson. one? 1-1 Personal Selling Defined Personal selling* focuses on interpersonal interactions between buyers and sellers to initiate, develop, and enhance customer relationships. - Set apart from other marketing communications by the interpersonal communications dimension - The most important part of marketing communications for most businesses * Words accompanied by an asterisk are key terms from the chapter. 1-2 Trust-Based Relationship Selling Trust-based relationship selling* requires salespeople to: - Earn trust and use selling strategies to meet customer needs - Contribute to the creation, communication, and delivery of customer value Differs from transaction-focused traditional selling - Focuses on solving customer problems, providing opportunities, and adding value to the customer’s business over an extended period Exhibit 1.1: Comparison of Transaction-Focused Traditional Selling with Trust-Based Relationship Selling (1 of 2) Area Transaction-Focused Traditional Trust-Based Relationship Selling Selling Typical skills required Selling skills, for example, finding Selling skills prospects, making sales presentations Information gathering Listening and questioning Strategic problem solving Creating and demonstrating unique, value-added solutions Teambuilding and teamwork Primary focus The salesperson and the selling firm The customer and the customer’s customers Desired outcomes Closed sales, order volume Trust, joint planning, mutual benefits, enhance profits Role of salesperson Make calls and close sales Business consultant and long-term ally Key player in the customer’s business Nature of One-way, from salesperson to Two-way and collaborative communications with customer Strive for dialogue with the customer customers Pushing products Exhibit 1.1: Comparison of Transaction-Focused Traditional Selling with Trust-Based Relationship Selling (2 of 2) Area Transaction-Focused Trust-Based Relationship Selling Traditional Selling Degree of salesperson’s Isolated from customer’s Actively involved in customer’s decision-making involvement in decision-making process customer’s decision- process making process Knowledge required Product knowledge Product knowledge Competitive knowledge Selling company resources Identifying opportunities Competitive knowledge Account strategies Account strategies Costs Identifying opportunities General business and industry knowledge and insight Customer’s products, competition, and customers Postsale follow-up Little or none: move on Continued follow-through to: to conquer next o Ensure customer satisfaction customer o Keep customer informed o Add customer value o Manage opportunities 1-2 Trust-Based Relationship Selling Customer value*: The customer’s perception of what they get for what they have to give up - Does the salesperson do a good job in helping me make or save money? - Is this salesperson dependable? - Does the salesperson help me achieve my strategic priorities? - Is the salesperson’s company easy to work with? - Does the salesperson enlist others in their organization when needed to create value for me? - Does the sales representative understand my business and my industry? 1-2 Trust-Based Relationship Selling Sales dialogue*: Series of conversations between buyers and sellers Helps the person selling: - Determine if a prospective customer should be targeted for further sales attention - Clarify the prospective customer’s situation and buying processes - Discover the prospective customer’s unique needs and requirements - Determine the prospective customer’s strategic priorities - Communicate how the sales organization can create and deliver customer value - Negotiate a business deal and earn a commitment from the customer - Make the customer aware of additional opportunities to increase the value received - Assess sales organization and salesperson performance so that customer value is continuously improved 1-3 Evolution of Professional Selling Sales professionalism*: Uses truthful, nonmanipulative tactics to satisfy long-term needs of the customer and the selling firm A study showed that sales meets the following criteria that define professions: - A substantive knowledge base - Significant contribution to society - Defined culture and organization of colleagues - Unique set of professional skills 1-3 Evolution of Professional Selling Areas in which sales could improve: - Autonomy that salespeople have in decision making - The amount of public trust granted to salespeople - Adherence to a uniform ethical code Future evolution is inevitable as tomorrow’s professional salesperson responds to a more complex, dynamic environment. 1-4 Contributions of Personal Selling Requirements of being an effective salesperson - Be honest and candid with customers - Be able to demonstrate knowledge of their products and services - Be knowledgeable about market opportunities and relevant business trends - Coordinate activities within the selling firm to deliver maximum value to the customer - Contribute to the success of the buyer’s firm 1-5 Alternative Personal Selling Approaches Adaptive selling*: Ability of salespeople to change their sales messages based on various customer situations Stimulus response selling*: Various stimuli can elicit predictable responses from customers Continued affirmation*: Series of questions arranged to make the customer say yes to them, until the customer says yes to the entire sales proposition Figure 1.1: Stimulus Response Approach to Selling The salesperson attempts to gain favorable responses from the customer by providing stimuli, or cues, to influence the buyer. After the customer has been properly conditioned, the salesperson tries to secure a positive purchase decision. 1-5 Alternative Personal Selling Approaches Mental states selling* (the formula approach) assumes that the buyers can be led through a series of mental states in the buying process.  Mental states are referred to as AIDA*: Buyer’s Mental State Common Sales Tactics Attention Build rapport with the prospect, ask questions to generate excitement for the sales offering Interest Discover buyer needs; uncover purchase decision process; gain precommitment to consider purchase of seller’s product Desire Build a sense of urgency; demonstrate the product; persuade the buyer to try the product, for example, a test drive or hands-on involvement with the product Action Overcome buyer resistance and make the sale; multiple attempts to close the sale are sometimes used 1-5 Alternative Personal Selling Approaches Need satisfaction selling* assumes that the customer is buying to satisfy a particular need or set of needs - Involves the salesperson using a probing tactic to uncover important buyer needs 1-5 Alternative Personal Selling Approaches Problem-solving selling* is an extension of need satisfaction selling - Goes beyond identifying needs to developing alternative solutions for satisfying those needs Figure 1.4: Trust-Based Sales Process Sales process*: A series of interrelated steps beginning with locating qualified prospective customers Greatest Ever Salesman Personal Selling What did he do right? How did he win over the customer? Did he give him a chance to say no? - He asked Yes questions the entire time What kind of deal did he offer him? What did he do to convince the customer of the product’s effectiveness? - Demo Conclusion Professor Roberts Email: [email protected] Office: 144 RSB Group Activity Scenario Nicole is the owner of Best Bags, a supplier of custom-print shopping bags in Chicago. Her customers are upscale retailers who see the value of colorful shopping bags not only as a convenience for customers but also as walking billboards that help advertise for the retailer. Best Bags offers a variety of sizes and colors. Pricing to the retailers depends on the size of the bag ordered, quantities ordered, and how many colors are used in custom-print designs. She has been successful in this market for two years, but a recent economic slump has had a slight negative impact on sales. Her retail customers are cutting costs by ordering less expensive bags or by using generic shopping bags instead of the more expensive options from Best Bags. Nicole hires a consultant who encourages her to keep advertising and pushing the more expensive bags. She tries for a couple of weeks but customers pushed back hard, saying now was simply not the time to spend more. What should she do? How could this potentially impact her selling relationship? Discussion Activity Give an example of trust-based relationship selling and explain how it is different from transaction-focused traditional selling? Knowledge Check 1 The distribution of new products, services, and ideas to the members of society is known as _______. A. revenue production B. diffusion of innovation C. economic stimuli D. customer value Knowledge Check 2 Which approach to selling involves developing alternative solutions for satisfying customer needs? A. Stimulus response selling B. Consultative selling C. Need satisfaction selling D. Problem-solving selling Upcoming Dates In-Class Activities JMC Student Engagement Presentation – Friday, 9/6 Quiz #1 (Chapters 1 & 2) – Friday, 9/6 Canvas Submissions Interview Project Checkpoint #1 – Due Sunday, 9/15