Chapter 2-3 PDF

Chapter 02 Evolution of Selling Models That Complement the Marketing Concept Copyright © 2016 Pearson Canada Inc. Learning Objectives 1) Discuss the evolution of personal selling models as an extension of the marketing concept. 2) Describe the...

Chapter 02 Evolution of Selling Models That Complement the Marketing Concept Copyright © 2016 Pearson Canada Inc. Learning Objectives 1) Discuss the evolution of personal selling models as an extension of the marketing concept. 2) Describe the evolution of consultative selling from the marketing era to the present. 3) Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model. 2-2 Copyright © 2016 Pearson Canada Inc. Learning Objectives (continued) 4) Describe the evolution of partnering and the nature of strategic account management. 5) Explain how value-added selling strategies enhance personal selling. 2-3 Copyright © 2016 Pearson Canada Inc. Marketing Concept Requires New Selling Models Evolution from early persuader stage Emphasized pushing or peddling products To problem-solver stage Obtaining participation of buyers in identifying their problems, then translated into needs Salespeople are increasingly becoming diagnosticians of customers’ needs and problems 2-4 Copyright © 2016 Pearson Canada Inc. Evolution of the Marketing Concept Marketing Concept – a principle that holds that achieving organizational goals depends on: knowing the needs and wants of target markets and delivering the desired products. Customer focus and value are the paths to sales and profits 2-5 Copyright © 2016 Pearson Canada Inc. Marketing Concept Yields Marketing Mix Marketing mix – a set of controllable, tactical marketing tools that consists of everything the firm can do to influence the demand for its product 2-6 Copyright © 2016 Pearson Canada Inc. Important Role of Personal Selling Personal selling is often the major promotional method used – whether measured by people employed, by total expenditures, or by expenses as a percentage of sales >10% of total workforce in Canada and US 40% have field responsibility 2-7 Copyright © 2016 Pearson Canada Inc. Important role of Personal Selling (continued) Several major trends: Products and services have become increasingly sophisticated and complex Competition has greatly increased in most product areas Demand for quality, value, and service by customers has risen sharply Trends yielded a new level of professionalism 2-8 Copyright © 2016 Pearson Canada Inc. Evolution of Consultative Selling Consultative Selling – an approach to personal selling that is an extension of the marketing concept Emphasizes need identification, need satisfaction, and the building of a relationship that results in repeat business 2-9 Copyright © 2016 Pearson Canada Inc. Evolution of Consultative Selling (continued) Transactional Selling - a sales process that most effectively matches the needs of the value-conscious buyer, who is primarily interested in price and convenience Low-cost strategies include telesales, direct mail, and the Internet Declining in popularity due to the: rise of e-commerce, and increasing complexity of businesses 2 - 10 Copyright © 2016 Pearson Canada Inc. Evolution of Consultative Selling (continued) Major features are as follows: 1) Customer is seen as a person to be served 2) Buyer’s needs are identified through two-way communication 3) Emphasizes need identification, problem solving, and negotiation instead of manipulation 4) Emphasizes service at every phase 2 - 11 Copyright © 2016 Pearson Canada Inc. Evolution of Consultative Selling (continued) Complex process that puts great demands on sales personal Employs principles from psychology, communications, and sociology 2 - 12 Copyright © 2016 Pearson Canada Inc. Evolution of Strategic Selling Strategic Planning – process that matches the firm’s resources to its market opportunities Takes into account all the major functional areas of the business that must be coordinated, such as financial assets, workforce, production capabilities, and marketing 2 - 13 Copyright © 2016 Pearson Canada Inc. Evolution of Strategic Selling (continued) Tactics – techniques, practices, or methods that a salesperson uses during face-to-face interactions with customers Strategies – the things that salespeople do as the result of precall planning to ensure that they call on the right people, at the right time, and with the right tactics to achieve positive results 2 - 14 Copyright © 2016 Pearson Canada Inc. Evolution of Strategic Selling (continued) Strategic planning sets the groundwork for a value-added form of consultative selling more structured, more focused, and more efficient Results in better time allocation, more precise problem solving, and a greater chance of a good match between product and customer need 2 - 15 Copyright © 2016 Pearson Canada Inc. Evolution of Strategic Selling (continued) Adaptive Selling - altering sales behaviours during a customer interaction in order to improve communication Another key element of the problem-solver stage 2 - 16 Copyright © 2016 Pearson Canada Inc. The Strategic/Consultative Selling Model 2 - 17 Copyright © 2016 Pearson Canada Inc. Strategic/Consultative Selling Model (continued) 1) Personal Selling Philosophy 2) Relationship Strategy – a well thought-out plan for establishing, building, and maintaining long-term quality relationships Relationship Selling –involves securing, developing, and maintaining long-term relationships Adopt a win-win philosophy 2 - 18 Copyright © 2016 Pearson Canada Inc. Strategic/Consultative Selling Model (continued) 2) Relationship Strategy (continued) Primary goal is to create rapport, trust, and mutual respect Maintain high ethical standards which forms the very foundation for long-term partnership 2 - 19 Copyright © 2016 Pearson Canada Inc. Strategic/Consultative Selling Model (continued) 3) Product Strategy – a well-conceived plan that emphasizes acquiring extensive product knowledge, learning to select and communicate appropriate product benefits that will appeal to the customer, and configuring value-added solutions Satisfaction from the product, the manufacturer or distributor, and the salesperson 2 - 20 Copyright © 2016 Pearson Canada Inc. Strategic/Consultative Selling Model (continued) 4) Customer Strategy – a carefully conceived plan that will result in maximum responsiveness to the customer’s needs  Develop an understanding of the customer’s buying process, understand buyer behaviour, and develop a prospect base 2 - 21 Copyright © 2016 Pearson Canada Inc. Strategic/Consultative Selling Model (continued) 5) Presentation strategy – a well- developed plan that includes preparing the sales presentation objectives, preparing a presentation plan that is needed to meet these objectives, and renewing one’s commitment to providing outstanding customer service 2 - 22 Copyright © 2016 Pearson Canada Inc. Strategic/Consultative Selling Model (continued) 2 - 23 Copyright © 2016 Pearson Canada Inc. Evolution of Partnering Today’s customer wants a quality product and a quality relationship Partnering – a strategically developed, long-term relationship that solves the customer’s problems Serves as a barrier to competing salespeople Costs four to five times more to get a new customer than to keep an existing one Copyright © 2016 Pearson Canada Inc. 2 - 24 Strategic Selling Alliance – the highest form of partnering Strategic Selling Alliance – goal is to achieve a marketplace advantage by teaming up with another company whose products or services fit well with your own Often formed by companies with similar business interests to gain a mutual competitive advantage 2 - 25 Copyright © 2016 Pearson Canada Inc. Strategic Selling Alliance – the highest form of partnering (continued) Steps in building an alliance 1) Learn as much as possible about the proposed partner 2) Meet with the proposed partner and explore mutual benefits Performed by account managers Enhanced with high ethical standards and customer relationship management (CRM) 2 - 26 Copyright © 2016 Pearson Canada Inc. Value Creation – The New Selling Imperative The information economy will reward those salespeople who have the skills, the knowledge, and the motivation to determine how to create value at every step of the sales process 2 - 27 Copyright © 2016 Pearson Canada Inc. Value Creation – The New Selling Imperative (continued) Improving the sales process to create value for the customer by: Establishing a relationship based on trust Carefully identifying the customer’s needs Identifying the best possible product solution 2 - 28 Copyright © 2016 Pearson Canada Inc. Value Creation – The New Selling Imperative (continued) 2 - 29 Copyright © 2016 Pearson Canada Inc.