Chapter 1 Instructor-DelanaHarri s The Life, Times, & Career of the Professional Salesperson
Everybody sells! From an early age, you develop communication techniques for trying to get your way in life. Asking someone on a date Asking for a pay increase Asking a teacher to change your grade Applying for a job Your ability to communicate effectively is key to success in life In today’s competitive market the lack of selling capability can put anyone at a disadvantage
Did you know? More than ever, today’s salespeople are a dynamic power in the business world. They generate more revenue in the U.S. economy than workers in any other profession Have you thought about a career in sales? Why or why not?
The purpose of business Business have two major functions: Production of goods or creation of services Marketing those goods and services Marketing: is the process of creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
The marketing concept A business philosophy that says the customers’ want-satisfaction is the economic and social justification for a firm’s existence Devoting all company efforts to determining customers’ wants and the satisfying them, while still making a profit Sam Walton once said, “Give the lady what she wants”
The marketing mix The marketing mix consists of four main elements: Price Product Place Promotion Also referred to as the four “Ps” of marketing It is the marketing manager’s responsibility to determine how best to use each element in the firm’s marketing efforts Businesses should have consistent marketing efforts
Product: It’s more than you think Good: a physical object that can be purchased. A radio, house, car, etc. Is tangible-meaning can be touched Service: an action or activity done for others for a fee Lawyers, plumbers, teacher, taxicab drivers, etc. Intangible-cannot be physical touched Product: is a bundle of tangible and intangible attributes, including packaging, color, and brand, plus the service and even the reputation of the seller Buying a car
Price Since product price is often critical to customers, it is an important part of the marketing mix. Price: refers to the value or worth of a product that attracts the buyer to exchange money or something of value for the product How important is price to you?
Place Distribution or place: refers to the channel structure used to transfer products from an organization to its customers Products have to be available to customers in the a convenient and accessible location when they want it Have you ever tried to find a product in stores without success?
Promotion Promotion: refers to communicating product information to potential customers Four basic parts Personal Selling Advertising Publicity Sales promotion
What is selling? The traditional definition: refers to the personal communication of information to persuade a prospective customer to buy something Unfortunately this explanation of personal selling does not explain the best selling philosophy for the 21st century. Why?
Personal selling today In the early 2000s the worst side of American business became obvious Corporate corruption Enron, WorldCom, etc. From 1977 to 2001, Gallup found that insurance salespeople, advertisers, and used car salespeople were the three lowest-rated jobs categories on perceived honesty & ethical standards Who do you think rated the lowest?
New definition of personal selling The new definition inserts the word unselfish into the traditional definition Personal selling refers to the personal communication of information to unselfishly persuade a prospective customer to buy something Think of your Ya-ya Tell the truth, give the best price, deliver on time, and provide excellent follow-up and service and you will be successful in sales! Golden rule of personal selling: unselfishly treating others as you would like to be treated. Reciprocity is not expected
What salespeople are paid to do Salespeople need to sell something “today” to meet the performance goals for: Themselves, in order to earn a living & keep their jobs Their employer, because without the generation of revenues the company fails Their customers, because their products help customers fulfill their needs In the long run, salespeople must build positive long-term relationships with their customers Why? Up to 80% or more of future sales will come from present customers & customer referrals
Why choose a sales career? Six major reasons: Service to others Wide variety of sales jobs available Freedom of being on your own The challenge of selling Opportunity for advancement Rewards Financial and Nonfinancial
Variety of sales jobs There are hundreds, maybe thousands, of different types of sales positions Almost every good or service you know of has a salesperson who sells it to one or more people Types of sales jobs Retail salesperson Sells goods or services to consumers for their personal use Wholesale salesperson Buys products from manufactures and sell to other organizations Middle man Manufacturer’s sales representative Typically sell directly to wholesalers or retailers
Order taker Versus Order getter Order taker: usually will ask the customer what he/she wants or wait for the customer to order They do NOT have a sales strategy and often use no sales presentation Example: think of a waiter Order getter: get new and repeat business using creative sales strategies and a well-executed sales presentation
Opportunities for advancement
Career path-the upward sequence of job movements during a sales career
Example of a typical sales career path:
Key Account Salesperson
District Sales Manager
Regional Sales Manager
Divisional Sales Manager
National Sales Manager
Vice President of Marketing
Rewards Nonfinancial rewards: sometimes called intrinsic rewards or psychological income Feeling good about your job How important is it? Financial Rewards: http://www.payscale.com/research/US/Job=Regional_Sales_Manager/Salary
Is a sales career right for you? Ask yourself questions such as these: What are my past accomplishments? What are my future goals? Do I want to have the responsibility of a sales job? Do I mind travel? How much freedom do I want in the job? Do I have the personality characteristics for the job? Am I willing to transfer to another city? Another state? What sales managers look for: Appearance, self-expression, maturity, personality, experience, enthusiasm, interest in the job
Sales jobs are different Sales jobs are different from other jobs in several ways: Salespeople represent their companies to the outside world Salespeople typically operate with little or no direct supervision Must be creative, persistent, show initiative, and motivation Salespeople need good diplomacy skills and social poise Salespeople are usually authorized to spend company funds Spent on transportation, meals, and other business expenses Salespeople usually travel daily
What does a professional salesperson do? Most people believe that a salesperson only makes sales presentations, but there is much more to the job than just selling Territory Manager-salespeople must plan, organize, and execute activities that increase sales and profits in a given territory A territory is a group of customers usually in a geographical area The coastal area
Learning selling skills Selling is both an art and a science Many skills cannot be learned from a textbook...selling takes PRACTICE Much of selling is learned through experience Necessary skills can be summarized into three categories: Conceptual Human Technical
Necessary Skills Conceptual Skills: the cognitive ability to see the selling process as a whole and relationship among its parts “think strategically” Human Skills: the seller’s ability to work with and through other people Being able to relate to other people Technical Skills: is the understanding of and proficiency in the performance of specific tasks Presentation skills