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MKTG 102 Chapter 1 Powerpoint.

MKTG 102 Chapter 1 Powerpoint.

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  • 1. Chapter One Introduction To Personal Selling: It’s a Great Career! PowerPoint presentation prepared by Dr. Rajiv Mehta
  • 2. Chapter Outline <ul><li>Marketing and personal selling: changing with the times </li></ul><ul><li>Personal selling: a fresh look </li></ul><ul><li>What is a customer? </li></ul><ul><li>What is a product? </li></ul><ul><li>Diverse roles of the professional salesperson </li></ul><ul><li>What does a professional salesperson do? </li></ul><ul><li>Using technology to sell better </li></ul><ul><li>Benefits of professional personal selling as a career </li></ul><ul><li>Careers for different types of individuals </li></ul>
  • 3. Learning Objectives <ul><li>How the concept of marketing is evolving. </li></ul><ul><li>Why and how salespeople are being empowered. </li></ul><ul><li>The differences between yesterday’s salesperson and today’s professional salesperson. </li></ul><ul><li>What roles professional salespeople play in providing customer satisfaction within the framework of the marketing concept and customer-oriented selling. </li></ul>After reading this chapter, you should understand: Royalty-Free, Digital Vision/Getty Images
  • 4. Learning Objectives cont’d <ul><li>Many of the opportunities and advantages offered by a professional sales career. </li></ul><ul><li>How telecommunications advances can help salespeople. </li></ul><ul><li>The multiple career paths branching out from an initial job in personal selling. </li></ul>After reading this chapter, you should understand: Royalty-Free, Digital Vision/Getty Images
  • 5. Marketing and Personal Selling: Changing With the Times The older, official AMA definition of marketing was: <ul><li>Marketing was largely viewed from the seller perspective by emphasizing management of the marketing mix and creating exchanges. </li></ul>“ The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.”
  • 6. Marketing and Personal Selling: Changing With the Times cont’d <ul><li>Marketing largely viewed from the seller perspective </li></ul><ul><li>Emphasis on management of the marketing mix </li></ul><ul><li>Marketing’s role is primarily to create exchanges </li></ul>Old marketing perspective: <ul><li>Satisfaction of individual and organizational objectives </li></ul>Product Strategy Promotion Strategy Place Strategy Pricing Strategy Target Market
  • 7. Marketing and Personal Selling: Changing With the Times cont’d <ul><li>Marketing is moving from a transaction-orientation to a customer-relationship-building orientation. </li></ul><ul><li>New AMA definition shifts the perspective more to the customer side by focusing on delivering value and managing customer relationships. </li></ul>The new official definition of marketing approved by the AMA in 2004 is: “ Marketing is an organizational function and a set of processes for creating , communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.” Chapter Review Question : How does the new concept of marketing differ from the old one?
  • 8. Marketing and Personal Selling: Changing With the Times cont’d <ul><li>Focuses on building long-term customer relationships </li></ul><ul><li>Moved away from a transaction-orientation </li></ul><ul><li>Focuses on delivering value to customers </li></ul><ul><li>Focuses on managing customer relationships </li></ul>New marketing perspective: Product Strategy Promotion Strategy Place Strategy Pricing Strategy Target Market
  • 9. Empowerment of Salespeople <ul><li>Personal selling is evolving owing to innovations in telecommunication technologies. </li></ul><ul><li>Are becoming increasingly empowered and can access up-to-the-minute information that customers want </li></ul><ul><li>Are moving away from “selling” toward “serving” customers by becoming more like customer consultants and business partners </li></ul><ul><li>Think beyond a single sales transaction to building long-term relationships and partnerships with customers </li></ul>Chapter Review Question : Why and how are salespeople being empowered? Royalty-Free, Digital Vision/Getty Images
  • 10. Personal Selling: A Fresh Look <ul><li>Personal selling offers an exciting, challenging, rewarding, and dynamic career. </li></ul><ul><li>Are highly paid and among the most likely to be promoted to senior management </li></ul>Without salespeople no organization could survive for long! <ul><li>Serve as “boundary spanners” who facilitate transactions, and relationships between buyers and sellers </li></ul><ul><li>Use the latest technology, make effective sales presentations and demonstrations, negotiate “win-win” agreements </li></ul><ul><li>Build profitable long-term relationships based on customer satisfaction and loyalty </li></ul><ul><li>Focus on business-to-business selling where potential earnings and career opportunities are virtually unlimited </li></ul>Royalty-Free, Digital Vision/Getty Images
  • 11. Personal Selling: A Fresh Look cont’d <ul><li>Professional salespeople: </li></ul><ul><li>Understand that keeping current customers loyal is even more important than attracting new customers: nearly 70% of sales for most companies come from the repeat purchases of loyal customers </li></ul><ul><li>Are well-educated, highly trained, customer-relationship-oriented career professionals </li></ul><ul><li>Understand the “lifetime value” of loyal customers, so they focus on long-run relationships -- not single-transaction profitability </li></ul>Royalty-Free, Stockdisc/Getty Images Royalty-Free, Stockdisc/Getty Images
  • 12. Customer Loyalty <ul><li>Loyal customers usually are the most profitable as they: </li></ul><ul><li>Buy the largest dollar volume. </li></ul><ul><li>Cost less to serve because they are further up the relationship learning curve with your company. </li></ul><ul><li>Refer other customers and generate positive word-of-mouth promotion for your products and services. </li></ul><ul><li>Readily purchase new products introduced by your company. </li></ul><ul><li>Are receptive to up selling (buying higher-priced versions of products) and cross-selling (buying other types of products). </li></ul><ul><li>Are the most forgiving when problems occur. </li></ul>Royalty-Free, Photodisc/Getty Images
  • 13. Personal Selling: A Fresh Look <ul><li>New professionalism required: negotiating “win-win” agreements. </li></ul><ul><li>The “born salesperson” is a myth! </li></ul><ul><li>Salesperson is committed to satisfy customers </li></ul><ul><li>The marketing concept and customer-oriented selling: focusing on needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than the competition </li></ul>Who sells? Virtually everyone! What’s sold? Nearly everything! Royalty-Free, Digital Vision/Getty Images
  • 14. What Is a Customer? <ul><li>Categories of customers: </li></ul>1. Consumers 2. Organizations Types of organizational markets: 1. Profit-oriented 2. Nonprofit organizations <ul><ul><li>Producers </li></ul></ul>Organizational Markets <ul><ul><li>Resellers </li></ul></ul><ul><ul><li>Governments </li></ul></ul>Chapter Review Question : List and briefly describe the three kinds of profit and nonprofit organizational markets Royalty-Free, Photodisc/Getty Images Royalty-Free, Photodisc/Getty Images Royalty-Free, Digital Vision/Getty Images Royalty-Free, Digital Vision/Getty Images
  • 15. What Is a Product? Three Concepts of Products <ul><ul><li>1. Core Product: what a customer actually seeks in terms of a problem-solving benefit </li></ul></ul><ul><ul><li>2. Tangible Product: the combination of a core product and its product characteristics </li></ul></ul><ul><ul><li>3. Augmented Product: core product, product characteristics, and supplemental benefits and services </li></ul></ul>Chapter Review Question : What is a product? How do core products, tangible products, and augmented products differ?
  • 16. Diverse Roles of the Professional Salesperson <ul><ul><li>Retailers </li></ul></ul><ul><ul><li>Wholesalers </li></ul></ul><ul><ul><li>Industrial distributors </li></ul></ul><ul><ul><li>Manufacturers </li></ul></ul><ul><ul><li>Service firms </li></ul></ul><ul><ul><li>Nonprofit organizations </li></ul></ul>Selling roles vary across organizations such as: Royalty-Free, Digital Vision/Getty Images
  • 17. Diverse Roles of the Professional Salesperson cont’d <ul><li>Three basic selling roles: </li></ul><ul><ul><li>Order taking </li></ul></ul><ul><ul><li>Order supporting </li></ul></ul><ul><ul><li>Order creating </li></ul></ul>dv1212100 Royalty-Free, Digital Vision/Getty Images
  • 18. Diverse Roles of the Professional Salesperson cont’d <ul><li>1. Order taking primarily requires response selling </li></ul><ul><ul><li>Responds to customer requests to purchase a certain product. This is the typical role of most retail store salespeople. </li></ul></ul><ul><li>2. Order supporting primarily requires missionary selling </li></ul><ul><ul><li>Educates, builds goodwill, and provides service to customers. Furnishes information about products to middlemen who, in turn, recommend or sell the products to their own customers. </li></ul></ul>Royalty-Free, Digital Vision/Getty Images
  • 19. Diverse Roles of the Professional Salesperson cont’d <ul><li>Trade selling: </li></ul><ul><ul><li>Salesperson responds to customer requests </li></ul></ul><ul><ul><li>Field service, such as monitoring product inventory and setting up special displays, is more important in trade selling to retail stores, wholesalers, and distributors </li></ul></ul><ul><li>Creative selling: </li></ul><ul><ul><li>Salesperson stimulates demand among present and potential new customers for a product </li></ul></ul><ul><ul><li>Includes sales development and sales maintenance </li></ul></ul><ul><li>Technical selling: </li></ul><ul><ul><li>Technically trained salesperson (sales engineer) helps customers solve their problems, often through complex product systems </li></ul></ul>3. Order creating includes: Chapter Review Question: Name the three basic selling roles, and describe the continuum of sales jobs ranging from simple response selling to complex creative selling.
  • 20. The Personal Selling Process (PSP) There are 7 interacting, overlapping steps in the professional personal selling cycle
  • 21. The Personal Selling Process (PSP) cont’d <ul><ul><li>Prospects : potential new customers </li></ul></ul><ul><ul><li>Leads : the name and address or telephone number of a person or organization that may have a need for the company's product or service </li></ul></ul><ul><ul><li>To become a prospect, a lead must be qualified in terms of: </li></ul></ul><ul><ul><ul><li>N eed or want </li></ul></ul></ul><ul><ul><ul><li>A uthority to buy </li></ul></ul></ul><ul><ul><ul><li>M oney or ability to buy </li></ul></ul></ul><ul><ul><ul><li>E ligibility to buy </li></ul></ul></ul><ul><li>Prospecting and qualifying </li></ul>Royalty-Free, Digital Vision/Getty Images
  • 22. <ul><li>An easy way to remember the qualifying process is the acronym -- N A M E </li></ul><ul><ul><li>N eed </li></ul></ul><ul><ul><li>A uthority </li></ul></ul><ul><ul><li>M oney </li></ul></ul><ul><ul><li>E ligibility </li></ul></ul>The Personal Selling Process (PSP) cont’d
  • 23. <ul><li>Salesperson obtains detailed information about the prospective buyer and the buying situation, then develops a strategy for ensuring a favorable reception </li></ul>The Personal Selling Process (PSP) cont’d <ul><li>Planning the Sales Call (Pre-approach) </li></ul><ul><li>Salesperson makes the initial contact and the vital first impression </li></ul><ul><li>Approaching the Prospect </li></ul><ul><li>Sales presentation strategy combined with a convincing product demonstration is selected and tailored to the prospect to favorably influence the outcome of the sales call </li></ul><ul><li>Making the Sales Presentation and Demonstration </li></ul>
  • 24. <ul><li>Objections or resistance can be viewed as oblique requests for more information so that the prospect can justify a purchase decision </li></ul>The Personal Selling Process (PSP) cont’d <ul><li>Negotiating Sales Resistance or Objections </li></ul><ul><li>The close may happen at any time during the sales process. Trial close : any well-placed attempt to close the sale </li></ul><ul><li>Confirming and Closing the Sale </li></ul><ul><li>Servicing the account before, during, and after the sale furthers the &quot;partnership&quot; or long-term relationship with the customer </li></ul><ul><li>Follow-up and Servicing the Account </li></ul>Chapter Review Question : Describe the seven stages in the professional personal selling process (PSP). Why do we depict it as a wheel?
  • 25. Using Technology To Sell Better <ul><li>Salespeople can enhance their productivity by using telecommunication tools </li></ul>Chapter Review Question: Give some examples of how salespeople can use different technologies to improve their efficiency and better serve prospects and customers. Intranets Extranets Fax Machines Computers Pagers Cell phones
  • 26. Using Technology To Sell Better cont’d <ul><li>For an interesting article on technology-enabled selling, see: </li></ul><ul><ul><li>http://www.computerworld.com/news/1998/story/0,11280,43417,00.html </li></ul></ul><ul><li>For an interesting article on how technology can build profitable relationships and deliver increased returns, see: </li></ul><ul><ul><li>http://www.infinityinfo.com/IndustriesTechnology.aspx </li></ul></ul><ul><li>Examples of technologies that salespeople are using include: </li></ul><ul><ul><li>http://www.cingular.com/blackberry8700c_consumer </li></ul></ul><ul><ul><li>http://web.palm.com/promos/treo700w_microsoft.jhtml?cid=ms3 </li></ul></ul><ul><ul><li>http://www.pcworld.com/reviews/article/0,aid,123867,00.asp </li></ul></ul>
  • 27. Benefits of a Professional Personal Selling Career What does a sales career offer? <ul><ul><li>Financial rewards </li></ul></ul><ul><ul><li>Perks </li></ul></ul><ul><ul><li>Route to the top </li></ul></ul><ul><ul><li>High demand and mobility </li></ul></ul><ul><ul><li>Job freedom and independence </li></ul></ul><ul><ul><li>Adventure and satisfaction </li></ul></ul><ul><ul><li>Objective performance evaluation </li></ul></ul><ul><ul><li>Contribution to society </li></ul></ul>Chapter Review Question: Discuss the benefits and drawbacks of a career in personal selling. Royalty-Free, Photodisc/Getty Images
  • 28. Benefits of a Professional Personal Selling Career cont’d <ul><li>To find out about average salary range and pay scales for different sales jobs, go to: </li></ul><ul><ul><li>http://swz.salary.com/salarywizard/layouthtmls/swzl_narrowbrief_SM06.html </li></ul></ul>© Royalty-Free/CORBIS
  • 29. Careers for Different Types of Individuals <ul><li>Many companies offer three paths to newly hired salespeople branching out into multiple career opportunities: </li></ul><ul><li>Professional Selling </li></ul>2. Sales Management 3. Marketing Management
  • 30. Multiple Career Paths in Personal Selling
  • 31. Multiple Career Paths in Personal Selling cont’d <ul><li>Sales Representative </li></ul><ul><li>Senior Sales Representative </li></ul><ul><li>Master Sales Representative </li></ul><ul><li>National or Key Account Sales Representative </li></ul>Professional Selling Lower Hierarchical Level Upper Hierarchical Level
  • 32. Multiple Career Paths in Personal Selling cont’d <ul><li>Branch Sales Manager </li></ul><ul><li>District Sales Manager </li></ul><ul><li>Zone, Division, or Regional Sales Manager </li></ul><ul><li>National Sales Manager </li></ul><ul><li>Vice President Of Sales </li></ul>Sales Management Lower Hierarchical Level Upper Hierarchical Level
  • 33. Multiple Career Paths in Personal Selling cont’d <ul><li>Product or Brand Manager </li></ul><ul><li>Director of Product Development </li></ul><ul><li>Vice President of Marketing </li></ul><ul><li>Senior Vice President </li></ul><ul><li>President </li></ul><ul><li>CEO </li></ul>Marketing Management Lower Hierarchical Level Upper Hierarchical Level
  • 34. Multiple Career Paths in Personal Selling cont’d Professional Selling National or Key Account Sales Representative Master Sales Representative Senior Sales Representative Sales Representative
  • 35. Multiple Career Paths in Personal Selling cont’d Sales Management V.P. Sales National Sales Manager Zone, Division, Or Regional Sales Manager District Sales Manager Branch Sales Manager
  • 36. Multiple Career Paths in Personal Selling cont’d CEO President Senior Vice President Vice President of Marketing Director of Product Development Product or Brand Manager Marketing Management
  • 37. Ethical Situation: What Would You Do? <ul><li>Discussion Question : </li></ul><ul><li>On your first sales call on one of your company’s best customers, the purchasing agent smilingly tells you: “I had a special arrangement with the salesperson who used to call on me from your company. Every time I placed an order, he gave me a nice gift. Are you going to continue that policy?” </li></ul>
  • 38. Key Terms <ul><li>Customer-Oriented Selling </li></ul><ul><ul><li>Focus on identifying customers’ needs and engaging in selling and servicing behaviors that help build and maintain a high level of customer satisfaction and loyalty in the long run. </li></ul></ul><ul><li>Professional Salesperson </li></ul><ul><ul><li>Salesperson who sees a sales career as a true profession for which he or she must be well educated, well prepared, and thoroughly professional in order to negotiate successfully with professional buyers. </li></ul></ul><ul><li>Augmented Product </li></ul><ul><ul><li>Complete bundle of benefits offered by a product, including its core function, various enhancing characteristics, and supplemental benefits and services. </li></ul></ul><ul><li>Missionary Selling </li></ul><ul><ul><li>Educating, building goodwill, and providing services to customers (e.g., doctors and dentists) by giving them samples and information about products and services (such as new pharmaceuticals and medicines to prescribe or recommend for their patients). </li></ul></ul>
  • 39. Key Terms cont’d <ul><li>Trade Selling </li></ul><ul><ul><li>Creative field service to wholesale and distributor customers, such as expediting orders, taking reorders, restocking shelves, setting up displays, providing in-store demonstrations, and distributing samples to store customers. </li></ul></ul><ul><li>Order Taking </li></ul><ul><ul><li>Processing routine orders or reorders for products that have been sold previously to the buying firm. </li></ul></ul><ul><li>Order Supporting </li></ul><ul><ul><li>The process of having minimal involvement in sales generation but instead serving as an assistance-provider to customers. </li></ul></ul><ul><li>Order Creating </li></ul><ul><ul><li>The process of identifying prospective buyers, providing them with information, motivating them to buy, confirming the sale, and following up after the sale has been made to ensure customer satisfaction. Trade, technical, and creative salespeople all do order creating in varying degrees. </li></ul></ul>
  • 40. Key Terms cont’d <ul><li>Extranets </li></ul><ul><ul><li>Corporate networks that allow communication between a company and selected customers, suppliers, and business partners. </li></ul></ul><ul><li>Intranets </li></ul><ul><ul><li>Internal corporate networks that allow salespeople and other employees within a company to obtain information and communicate with each other. </li></ul></ul><ul><li>Personal Selling Process (PSP) </li></ul><ul><ul><li>The seven interacting, overlapping stages that every salesperson, no matter what the product or service being sold, must carry out. </li></ul></ul><ul><li>Wheel of Personal Selling </li></ul><ul><ul><li>Depiction of the seven stages of the PSP as a continuous cycle or wheel carried out by professionals in the field of sales. </li></ul></ul><ul><li>Prospecting </li></ul><ul><ul><li>First step in the PSP where salespeople find leads and qualify them on four criteria: Need, Authority, Money, and Eligibility (NAME) to buy. </li></ul></ul>
  • 41. Chapter Review Questions <ul><li>Describe the myth of the “born” salesperson. </li></ul><ul><li>Explain the relationships among personal selling, the “marketing concept,” and the “customer-oriented selling.” </li></ul><ul><li>What types of creative salespersons are discussed in this chapter? </li></ul>
  • 42. Topics for Thought and Class Discussion <ul><li>Have you ever known or met a person who appeared to be a “natural-born” salesperson? What made you think he or she was a good salesperson? Based on what you now know about professional personal selling, do you think you could call this person a truly professional salesperson? Why or why not? </li></ul><ul><li>What kind of selling might you like to do? With what products and what customers would you prefer to work? What do you think would be some advantages and disadvantages of each kind of selling for you personally? </li></ul><ul><li>Think about why you would want a career in professional personal selling. What would motivate you best? Money? The opportunity to contribute to society? Job independence? Discuss your thoughts and feelings with classmates. </li></ul>
  • 43. Internet Exercises <ul><li>Assume that you are graduating from college soon with a dual major in marketing and finance and that you are interested in learning about different career opportunities for salespeople. Using your college’s online database resources, develop general descriptions for sales jobs in the following types of organizations (remember that “salesperson” may not necessarily be the job title advertised). What are the similarities and differences among the “sales” jobs? </li></ul><ul><li>Financial services firm (e.g., Fidelity or Merrill Lynch) </li></ul><ul><li>Food manufacturer (e.g., Pillsbury or Kellogg) </li></ul><ul><li>Not-for-profit institution (e.g., Kimmel Center for the Performing Arts in Philadelphia or a large private university) </li></ul><ul><li>Major sports team (e.g., Chicago Bears or Los Angeles Lakers) </li></ul>
  • 44. Internet Exercises cont’d <ul><li>As a soon-to-be college graduate, you plan to start your career in sales, and you have interviews set up with the four companies, named below. Prior to the interviews, you feel that it would be to your advantage to talk with the interviewer about the career advancement opportunities available to those who start out in sales. To prepare for your interviews, go to the websites for these four companies and anywhere else you can think of to learn more about the career paths leading up from sales at these companies: </li></ul><ul><li>Black & Decker </li></ul><ul><li>Kimberly Clark </li></ul><ul><li>Nestlé Foods </li></ul><ul><li>Xerox </li></ul>
  • 45. Projects for Personal Growth <ul><li>You have just inherited a pencil manufacturing business. Pencils are hardly a glamorous product, but there is a large and competitive market for them. See if you can develop a description of your product that would help your sales staff sell the core, tangible, and augmented product. </li></ul><ul><li>Use what you have learned about what professional salespeople do to sell one of your classmates something right there in the classroom—a pen, chair, book, pair of shoes, whatever. Once you’ve successfully sold to the classmate, try selling to your instructor! </li></ul>
  • 46. Case 1.1: Decisions! Decisions! Which Career Path Should I Choose? <ul><li>Do you think John should declare a career path now? If not, why not? </li></ul><ul><li>Taking into account John’s attitudes, strengths, and weaknesses, what advice would you give John about each of the three career paths for him? </li></ul><ul><li>If forced to choose, which career path would be best for John? Explain your answer. </li></ul>
  • 47. Case 1.2: What? You Want To Be a Salesperson? <ul><li>Why do you think Paula’s parents are not happy about her going into a sales career? What kind of misconceptions about personal selling do they have? </li></ul><ul><li>To convince her parents that sales is the right place to begin her business career, what are the points Paula should make when she calls her parents? </li></ul><ul><li>If Paula cannot persuade her parents to see personal selling in a positive light, what would you advise her to do? </li></ul>Case 1.2 is found online at http://college. hmco .com/ pic /andersonps2e .

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