CHAPTER 2 Evolution of Selling Models that Complement the Marketing Concept.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Learning Objectives To Understand:  The evolution of personal selling models as an extension of the marketing concept  The evolution of consultative selling from the marketing era to the present  Strategic selling and the four broad areas in the Strategic/Consultative Selling Models

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-3 Learning Objectives To Understand:  The evolution of partnering  The nature of a strategic selling alliance  How value-added selling strategies enhance personal selling

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-4 The Marketing Concept: New Selling Models  Personal selling has evolved over the last 50 years.  Sweeping changes: –From peddling to long-term relationships –To consultative selling and value-added partnering –Prompted by emergence of marketing concept

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-5 Evolution: The Marketing Concept  A principle that holds that achieving organizational goals depends on: Knowing the needs and wants of target markets Delivering the desired product  Paths to sales and profits are: Customer focus Value

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-6 Evolution of Personal Selling: Present Sales and Marketing EmphasisSelling Emphasis Marketing Era Begins (1950’s) Organizations determine needs & wants of target markets. Adapt to delivering desired satisfaction Product orientation replaced by a customer orientation More organizations recognize salesperson is in a position to collect product, market, & service information concerning the buyer’s needs Consultative Selling Era Emerges (Late 1960s to Early 1970s) Salespeople become diagnosticians & consultants of customer’s needs Well-considered recommendations. Mass markets break into target markets Buyer needs identified thru two- way communication. Information giving & negotiation tactics replace manipulation Strategic Selling Era Emerges (Early 1980’s) Evolution of more complex selling environment. Greater emphasis on market niches create need for greater structure & more emphasis on planning Strategy given as much attention as selling tactics Product positioning given more attention. Greater emphasis on acct management & team selling Partnering Era Emerges (1990 to Present) Salespeople encouraged to think in the context long-term, high-quality partnerships with customers; sales force automation provides specific customer info Customer supplants product as driving force in sales. Greater emphasis on strategies that create customer value. Adaptive selling is greater emphasis.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-7 Marketing Concept Yields Marketing Mix FIGURE 2.1

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-8 Evolution of Consultative Selling  Consultative selling era (late 1960s to early 1970s) Mass markets break into target markets Emphasis on need identification Information sharing and negotiation replace manipulation

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-9 Evolution of Consultative Selling Transactional selling Process that serves the buyer primarily interested in price and convenience Consultative selling Process that developed from the marketing concept, emphasizing need identification

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-10 Evolution of Consultative Selling Customer is a person to be served, not a prospect to be sold Two-way communication identifies (diagnoses) customer’s needs; no high-pressure sales presentation Emphasis on information giving, problem solving, and negotiation versus manipulation Emphasis on service after the sale Features of consultative selling include:

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-11 Evolution of Strategic Selling  Strategic selling era (early 1980s) Market niches require more planning Equal emphasis on strategy and tactics Product positioning vital  Partnering era (1990 to present) Customer, not product, as driving force Emphasis on strategies that create customer value

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-12 Evolution of Strategic Selling  A strategic market plan Outlines necessary methods and resources Considers areas to be coordinated Finance Personnel Production Marketing Influences the sale of products Serves as guide for strategic selling plan

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-13 Evolution of Strategic Selling  Tactics Specific techniques, practices, and methods used in customer interaction  Strategy Carefully conceived plan needed to accomplish sales objectives A prerequisite to tactical success

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-14 The Strategic/Consultative Selling Model FIGURE 2.3

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-15 Developing a Relationship Strategy  Relationship strategy = well-thought-out plan for establishing, building, and maintaining relationships  Must encompass all aspects of selling  Integral part of relationship selling  Primary goal = rapport, trust, and mutual respect. Results in long-term relationship

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-16 Developing a Product Strategy  Product strategy = Plan that helps salespeople make correct decisions concerning selection & positioning of products to meet customer needs  Begins with thorough product knowledge; use feature-benefit analysis approach  Requires with thoughtful decision-making

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-17 Developing a Customer Strategy  Customer strategy = Plan that results in maximum responsiveness for customer’s needs.  Collection & analysis of specific information for each customer  Dictated by needs of customer Patricia Seyold, best-selling author of The Customer Revolution says, “We are in the midst of a profound revolution: the customer revolution.”

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-18 Developing a Presentation Strategy  Presentation strategy = Plan that includes: –Sales presentation objective –Presentation plan to meet objectives –Renews commitment to provide outstanding customer service  Usually develops one or more objective for each sales call  Presale planning = Ensures organization

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-19 Interrelationship of Basic Strategies FIGURE 2.4

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-20 Evolution of Partnering  Buzzword of 1990s; business reality in 2000s  “Strategically developed, long-term relationship that solves the customer’s problems”  Relationship selling = customized approach to each client  Enhanced with : –High ethical standards –Customer relationship management

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-21 Strategic Alliances  Formed by companies that have similar business interests and gain mutual competitive advantage  Goal is to achieve a marketplace advantage by teaming up with another firm  Highest form of consultative selling required to build win-win alliances

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-22 Strategic Alliances FIGURE 2.5

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-23 Partnering is Enhanced with Customer Relationship Management See the Website

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-24 Value-Creation: The New Selling Imperative FIGURE 2.6

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-25 Key Concept Discussion Questions  Discuss personal selling as an extension of the marketing concept  Describe the evolution of consultative selling (marketing era - present)  Define strategic selling

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-26 Key Concept Discussion Questions  Name 4 broad strategic areas in the Strategic/Consultative Selling Model  Describe the evolution of partnering and nature of strategic selling  Explain how value-added strategies enhance personal selling

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-27 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2012 Pearson Education, Inc. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall