Salesmanship PDF

SELLING AS A PROFESSION Chapter 1  1. This chapter introduces you to the profes- sional and rewarding career of selling. After studying this chapter, you should be able to 2. Define and explain the term selling. 3. Explain wh...

SELLING AS A PROFESSION Chapter 1  1. This chapter introduces you to the profes- sional and rewarding career of selling. After studying this chapter, you should be able to 2. Define and explain the term selling. 3. Explain why everyone sells, even you. LEARNING 4. Explain the relationship between the definition of personal selling and the Golden Rule of Personal Selling. OBJECTIVES 5. Discuss the reasons people might choose a sales career. 6. Enumerate some of the various types of sales jobs. 7. Describe the job activities of salespeople. 8. Define the characteristics that salespeople believe are needed for success in building relationships with customers. 9. List and explain the 10 steps in the sales process.  WHAT IS SELLING? a traditional definition of personal selling refers to the personal communication of information to persuade a prospective customer to buy something—a good, service, idea, or something else—that satisfies that individual’s needs. process of transferring goods or services to buyer in return of money or something else by This Photo by Unknown Author is licensed under CC BY-NC What is Salesmanship? Salesmanship is actually the way you convince your prospect with logic, arguments and product features to buy it from you and not from other suppliers. It is the ability to persuade people to buy goods or services at a profit to the seller and benefit to the buyer. (National Association of Marketing Teachers of America) This Photo by Unknown Author is licensed under CC BY-SA-NC WHAT ABOUT YOU? How do you view the honesty and ethical standards of today’s businesses and sales- people? According to poll survey: What does the general public think about salespeople? Only 9 percent of the over 2,700 respondents had a positive attitude. After graduation, would you accept a sales job? Forty-four percent said yes. HOW SOME SALESPEOPLE ARE VIEWED For the last two decades, Gallup (one of America’s leading pollsters) has found that insurance salespeople, advertising practitioners, and used car salespeople are the three lowest-rated job categories on perceived honesty and ethical standards. This Photo by Unknown Author is licensed under CC BY-NC-ND  Personal selling refers to the personal communication of information to unselfishly persuade a prospective customer to buy something—a good, a service, an idea, or NEW something else—that satisfies that individual’s needs. DEFINITION OF How would you treat the following in terms PERSONAL of personal selling? Parents SELLING Teachers Partner Best friends Strangers GOLDEN RULE OF PERSONAL SELLING A rule is a prescribed guide for conduct or action. The Golden Rule of Personal Selling refers to the sales philosophy of unselfishly treating others as you would like to be treated. Reciprocity is not expected. Remember: If you do not like to get cheated in a purchase, don’t cheat others. This Photo by Unknown Author is licensed under CC BY-NC-ND EVERYBODY SELLS?  TRUE! EVERYBODY SELLS! YOUR SALES CLASS WILL HELP MAKE YOU A BETTER COMMUNICATOR. This is why so many people take sales courses. They want to improve their communication skills to be more successful in both their personal and business lives. The skills and knowledge gained from a selling course can be used by a student who plans to go into virtually any field, such as law, medicine, journalism, the military, or his or her own business. Selling is not just for salespeople; it is a must for everyone. In today’s competitive environment, where good interpersonal skills are so valued, the lack of selling capa- bility can put anyone at a disadvantage. So as you read this book and progress through the course, think about how you can use the material both personally and in business. This Photo by Unknown Author is licensed under CC BY WHAT SALESPEOPLE ARE PAID TO DO? When a sales manager sees one of her salespeople, the question is always, “Did you sell anything today?” Salespeople need to sell something “today” to meet the performance goals for: Themselves, in order to serve others, earn a living, and keep their jobs. Their employer, because without the generation of revenues the company fails. Their customers, because their products help customers fulfill their needs and help their organizations to grow. WHY CHOOSE A SALES CAREER? Six Major Reasons: (1) Service to others. the opportunity to provide service to others; (2) Variety of Sales jobs the wide variety of sales jobs available; (3) Freedom. the freedom of being on your own; (4) Challenge. the challenge of selling; (5) Advancement. the opportunity for advancement in a company; and (6) Rewards. the rewards from a sales career. TYPES OF SALES JOBS 1. Selling in Retail 2. Direct Sellers 3. Selling for a Wholesaler 4. Selling for a Manufacturer  SELLING IN RETAIL A retail salesperson sells goods or services to consumers for their personal, non-business use. Retail selling is so important to a society Three common types of sellers who sell at retail are the: (1) in-store salesperson, (2) direct seller who sells face-to-face away from a fixed store location, (3) telephone salesperson. Customer contact person is another name for a salesperson. Although the title may be different, their job is the same—to help you buy. Examples of Sellin in Retail Retailers include bakeries, banks, caterers, hotels, video stores, travel agency, and stores selling clothes, electronics, flowers, food, and furniture DIRECT SELLERS Direct sellers sell face-to-face to consumers—typically in their homes—who use the products for their personal use. Direct selling is the selling of products in a non-retail setting, for example, at home, online, or other venues that are not a store. It eliminates middlemen who are involved in distribution, such as wholesalers and regional distribution centers. Instead, products are sent directly from the manufacturer to the sales company, then to the rep or distributor, and finally to the consumer. Examples of Direct Sellers SELLING FOR A WHOLESALER Selling for a Wholesaler. Wholesalers (also called distributors) buy products from manufacturers and other wholesalers and sell to other organizations. A wholesale salesperson sells products to parties for Resale, such as grocery retailers buying items and selling to consumers. Use in producing other goods or services, such as a home builder buying electrical and plumbing supplies. Operating an organization, such as your school buying supplies. Firms engaged in wholesaling are called wholesaling middlemen. Classifying wholesaling middlemen is difficult because they vary greatly in (1) the products they sell, (2) the markets to which they sell, and (3) their methods of operation.  SELLING FOR A MANUFACTURER Selling for a Manufacturer. Manufacturers’ salespeople work for organizations producing the product. The types of manufacturer’s sales representative positions range from people who deliver milk and bread, to specialized salespeople selling highly technical industrial products. The salesperson working for a manufacturer Two Types of Sellers Order Takers Inside order takers Delivery salespeople Outside order takers Order Creators Missionary salespeople Order getter  ORDER TAKERS Order takers are not expected to persuade customers to buy the company’s products or increase their quantity of purchase. They are supposed to book customer orders and pass on the information to relevant people in the company. They are expected to be accurate. They are also expected to have information about when the order that has been booked will be delivered to customers. Customers will often enquire the delivery date from them and they should have answers. Orders takers are also being prompted to at least prod customers to buy certain other products of the company besides the ones that they are already buying or increase their quantities of purchase.  Inside order takers. An inside order taker is the person who talks with a customer when they walk into the business to place an order, or they are the one who is answering the phone, responding to an online inquiry, or responding to an email to accept customer orders as they are placed. Types of Delivery salespeople. Concerned in delivering the Order takers customer’s products. There is little to no attempt to persuade the household Outside order takers. They travel to to visit the customers, but their primary function is to respond to customer requests rather than persuading the customer ORDER CREATORS they are the salespeople who help in pulling the customer toward product the individual who identify prospective customer and influence them to make a purchasing decision. disseminate information to the customer regarding product  Missionary Salespeople. calls on people who make decisions about products but don’t actually buy them, and while they call on individuals, the relationship is business-to- business. ORDER TAKERS Order Getters. Consists of those salespersons whose major objective is to persuade customers to make a direct purchase they are the frontline salespeople should have several skills like ability to identify new prospects , persuading, and negotiating, and ultimately new and profitable business. REWARDS IN SELLING Nonfinancial Rewards - Sometimes called psychological income or intrinsic rewards, nonfinancial rewards are generated by the individual, not given by the company. Financial Rewards - Many are attracted to selling because in a sales career financial rewards are com- monly based solely on performance. Many professional salespeople have opportuni- ties to earn large salaries. Their salaries average even higher than salaries for other types of workers at the same organizational level.  Ask yourself these questions: What are my past accomplishments? What are my future goals? IS A SALES Do I want to have the responsibility of a sales job? CAREER Do I mind travel? How much travel is RIGHT FOR acceptable? How much freedom do I want in the job? YOU? Do I have the personality characteristics for the job? Am I willing to transfer to another city? Another state?  We look for outstanding applicants who are matured and intelligent. They should be able to handle themselves well in A SALES the interview, demonstrating good interpersonal skills. MANAGER’S They should have a well-thought-out career plan and be able to discuss it rationally. VIEW OF They should have a friendly, pleasing personality. A clean, neat appearance is a must. THE They should have a positive attitude, be willing to work hard, be ambitious, and demonstrate a good RECRUITER degree of interest in the employer’s business field. They should have good grades and other per- sonal, school, and business accomplishments. Finally, they should have clear goals and objectives in life. COMMON CHARACTERISTICS WHICH APPLICANTS ARE JUDGED (1) appearance, (2) communication skills, (3) maturity, (4) personality, (5) experience, (6) enthusiasm, and (7) interest in the job. Thanks! This Photo by Unknown Author is licensed under CC BY-SA-NC Relationship Marketing Chapter 2  The sales force is but one part of an organization’s marketing effort; you should understand the role and importance of the sales force in a firm’s total marketing effort. After studying this chapter, you should be able to Define and explain the terms marketing LEARNING and marketing concept. Describe the evolution of customer orientation OBJECTIV in the United States. Answer the question, Why is marketing important to an organization? ES Illustrate how the firm’s product, price, distribution, and promotion efforts coordinated for maximum sales success. are Explain why an organization should listen to its customers. Discuss the role of personal selling in the firm’s marketing relationship efforts. Understand a salesperson’s roles when practicing consultative selling. What is the purpose of business? The purpose of business is to increase the general well-being of humankind through the sale of goods and services. This requires making a profit in order to operate the business and provide beneficial products to the marketplace. Businesses have two major functions: production of goods or creation of services and marketing those goods and services.  The primary goal of business should be to The transform marketplace the and Primary workplace environment into an where Goal of everyone is treated as they would like to Business be treated. Business should be fair to all parties involved in both the buying and selling of goods and services.  What is marketing? There are numerous definitions of marketing. Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. - - American Marketing Association’s What is the ultimate goal of marketing? The ultimate goal of marketing is to create and introduce products that will satisfy the needs and wants of its customers. Consequently, build and maintain lasting relationships with customers. Exchange and transactions A transaction is a trade of values between two parties; it forms a relationship between buyer and seller. Exchange refers to the act of obtaining a desired product from someone by offering something in return. A transaction represents an activity performed by entities within a system, such as purchasing an item or booking a ticket. An exchange refers to the process of giving and receiving something of  Question What are the five Marketing Management Orientations?  Product Concept - focuses on the better quality of the product. As they think the better product means the customer buys the product easily. But the companies do not care about the customer need and want. They produce the product as the best of their knowledge. The company thinks that the good quality of the product will be sold easily but in reality, the only quality of the product does not matter  Production Concept - This is the oldest concept of marketing under this concept the company focus on production whatever they produce that is sold in the market. In this concept, they don’t focus on what customers need. Large production means the product so cheap and affordable that it will be sold in the market. The main disadvantage of this concept is that the  Marketing Concept - companies start to focus on the customer need and what customer wants and how to satisfy their need. The company stops selling those products what they produce they change the production according to the  Societal Marketing Concept – It is a business philosophy that considers a company's impact on society, and how to balance that with making a profit. It's also known as the "concept of intelligent consumption" or "concept of people"  Selling Concept - the marketers think that the production and quality of the product do not lead to the sale, so they start attracting the customer towards them. The product needs to be sold by the salesman. The selling concept is a marketing strategy that focuses on generating sales by persuading customers to buy products they might not otherwise need or want. It's based on the idea that customers are resistant to buying and need to be actively convinced to make a purchase. The selling concept is founded on the belief that customers will not purchase an adequate quantity of a product or service unless they are actively persuaded to do so. This concept assumes that customers tend  TERMS YOU SHOULD KNOW! a firm’s marketing mix consists of four main elements—product, price, distribution or place, and promotion A good is a physical object that can be purchased. A radio, a house, and a car are examples of a good. A service is an action or activity done for others for a fee. Lawyers, plumbers, teachers, and taxicab drivers perform services. An idea is a concept, image, issue, or philosophy. The term product can be a good, service, idea, or a combination of these. Value-added refers to benefits received Types of Products A product is a bundle of tangible and intangible attributes, including packaging, color, and brand, plus the services and even the reputation of the seller. Major types of products Consumer products are produced for, and purchased by, households or end consumers for their personal use. Distribution Moves Products to Customers Distribution refers to the channel structure used to transfer products from an organization to its customers. It is important to have the product available to customers in a convenient and accessible location when they want it. Three groups of customers: A household refers to a decision-making unit buying for personal use. A firm is an organization that produces goods and services. A government is an organization that has two functions: the provision of goods and services to households and firms and the redistribution of  Promotion: You Have to Tell People about It Promotion, as part of the marketing mix, increases company sales by communicating product information to potential customers. The four basic parts of a firm’s promotional effort are (1) personal selling, (2) advertising, (3) public relations, and (4) sales promotion. Question Are you in a relationship? What should be the foundation of a relationship? Relationship Marketing Relationship marketing is the creation of customer loyalty. Organizations use combinations of products, prices, distribution, promotions, and service to achieve this goal. Relationship marketing is based on the idea that important customers need continuous attention. It is a strategy that focuses on building long-term relationships with customers to increase sales and loyalty. It's a part of customer relationship management (CRM) and is different from transactional marketing, which focuses on individual sales x This Photo by Unknown Author is licensed under CC BY-NC Relationship Marketing The process of developing long-lasting relationships with customers. Through these relationships, companies can promote brand loyalty and encourage customers to make repeat purchases over an extended time period. This strategy focuses on long-term sales goals and customer loyalty rather than short-term increases in sales with one-time customers. Depending on the customer's needs and desires, a company can build strategies that motivate them to commit to the company's product or service rather than a competitor's. This Photo by Unknown Author is licensed under CC BY-NC Question What should we do to keep others loyal to us? What benefits do you gain from being in a relationship? This Photo by Unknown Author is licensed under CC BY-NC Benefits of Relationship Marketing Increased customer lifetime value: As the company works to develop long-term relationships with customers, those customers may make more purchases from the organization over time, increasing each customer's lifetime value (CLV). Lower long-term marketing costs: Satisfied customers who have a strong loyalty to the organization often require less marketing and advertising from the company.  Benefits of Relationship Marketing Higher customer satisfaction: Customers with a strong relationship with a business often have higher satisfaction levels over time than customers who make a single purchase and then shift to another organization. Deeper customer understanding: the more time you spend developing relationships, the better you may know what your customers want. Reliable customer base: The better your relationship with customers, the more you can rely on them to make repeat purchases, increasing the company's sales and revenue Levels of Relationship Marketing Basic Marketing Reactive Marketing Accountable Marketing Proactive Marketing Partnership Marketing  Basic Marketing This is the conventional approach to relationship marketing, when a salesperson tries to persuade a consumer to make a purchase. The emphasis is on the quality of the offered good or service. This type of direct selling involves no post- purchase follow-up, no requests for additional communication, and no feedback. This approach draws customers in with a straightforward promotion, pricing, or message. The only reason it's a sale is to generate revenue.  Reactive Marketing At this level of commitment, a brand actively seeks feedback from customers. Whether it is a compliment on social media, complaint, suggestion, customer engagement, or product idea, a business is open to it with a reactive marketing approach. There is some effort to build a relationship with the customer when the situation or opportunity arises. The salesperson sells the product and encourages the customer to call for any comments or inquiries.  Accountable Marketing This level of relationship marketing is about promising and delivering. It continues the buyer’s journey after purchase and puts a spotlight on customer retention rates and strategies. This involves checking with customers after they purchase and offering related products as they arise. Loyalty programs and rewards programs are also incentive strategies used in accountable marketing. Accountable marketing is about being confident in what you have to give and actively solving problems, sometimes before people realize they have them. It's like a friend calling to ask if you need anything. Additionally, this is the time to get client input so that the right steps may be taken.  Proactive Marketing This is a form of relationship marketing where a brand keeps consistent tabs on its customers to build effective relationships. It’s not a one- off sale or a temporary interaction. The strategy is very personal. It pays close attention to what people want and uses customer data to understand purchasing behavior. A lot of companies choose email marketing as a way to perform proactive marketing. The data is then used to produce more engaging marketing campaigns. The accumulation of consumer information allows a business to relate to a multitude of situations in an authentic way. Partnership Marketing This is a form of relationship marketing with a high level of collaboration from customer, brand and the company for mutual benefits. In this level, trust and long lasting relationship has been built Thank You!