Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-1 Chapter 1 The Life, Times, and Career of the Professional Salesperson

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-2 Learning Objectives After studying this chapter, you should be able to Define and explain selling Explain why everyone sells, even you Discuss reasons people might choose a sales career Enumerate some of the various types of sales jobs Describe the job activities of sales people Define the characteristics that necessary foe success in building relationships with customers List and explain the 10 steps in the sales process.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-3 Chapter 1 What is Selling? Types of Sales Jobs Why Choose a Sales Career? Is a Sales Career Right for You? Success in Selling--What Does It Take? Relationship Selling Sales Jobs Are Different Agenda

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-4 Agenda cont’d Chapter 1 What Does a Professional Salesperson Do? E-Selling: Technology Used by Salespeople Relationship Marketing Levels of Relationship Marketing The Plan of This Textbook Building Relationships through the Sales Process

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-5 What is Selling? Selling is just one of many marketing components Personal selling: Personal communication of information Goods Persuasive Needs fulfillment: Services Ideas

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-6 Everybody Sells! Each of us develops communication techniques for trying to get our way in life. You are involved in selling when you want someone to do something. You use personal persuasion skills to persuade someone to act.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-7 Types of Sales Jobs Selling in Retail A retail salesperson sells goods or services to consumers for their personal, non-business use. Direct Sellers Face to face sales to consumers, typically in their homes, who use the products for their personal use.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-8 Types of Sales Jobs cont… Selling for a Wholesaler For resale For use in producing other goods For use within an organization Selling for a Manufacturer Works for the firm who manufacturers the product This is usually one of the most prestigious jobs to hold

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-9 Exhibit 1-6 The complexity and difficulty of these seven sales job categories increase as they move left to right. Order-Takers Order-Getters 1.Inside retail sales 2.Outside delivery 3.Entry-level consumer goods 4.Missionary 5.Sales engineers 7.Creative sales of tangibles 8.Creative sales of intangibles

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-10 Exhibit 1-7: A Sales Personnel Career Path

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-11 Why Choose a Sales Career? There are a wide variety of sales jobs available The freedom of being on your own The opportunity for advancement in a company The rewards from a sales career

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-12 Rewards Non-financial Intrinsic reward of knowing you’ve skillfully delivered a sales presentation Quick path to managing large amounts of responsibility Quick path to managing others Financial Higher average than that of other workers at the same level within the organization Based upon performance

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-13 Exhibit 1-8: Compensation and Expenses by Industry Sales trainee Consumer goods Industrial goods Services Mid-service salesperson Consumer goods Industrial goods Services Top-level salesperson Consumer goods Industrial goods Services Sales manager Consumer goods Industrial goods Services Compensation* $ 50,100 60,000 52,000 75,000 80,000 76, , , , , , ,500 Travel and Entertainment Expenses* $ 15,000 17,500 16,200 17,000 17,250 16,800 18,000 18,500 17,800 27,100 29,900 29,100 Total $ 65,100 77,500 68,200 92,000 97,250 93, , , , , , ,600 *Compensation includes base salary, commission, and bonus. † Expenses include travel, entertainment, food, and lodging.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-14 Is a Sales Career Right for You? What are your past accomplishments? What are your goals? Do you want to have the responsibilities of a sales job? Do you mind travel? How much travel is acceptable? How much freedom do you want in a job? Do you have the personality characteristics to succeed? Are you willing to transfer to another city? Another state?

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-15 Success in Selling Love of selling Willingness to work hard, then smart The determination to achieve An optimistic outlook Knowledgeable Ruthless about time Active listener Service oriented Physically and mentally prepared

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-16 Relationship Selling Non-adversarial Non-manipulative Consultative Partnering Problem-solving Goal: long-term relationship

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-17 Exhibit 1-10: Main Elements in the Customer Relationship Process Maintain and grow the relationship Maintain and grow the relationship Analyze needs Analyze needs Recommend solution and gain commitment Recommend solution and gain commitment Customer Implement the recommendation Implement the recommendation

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-18 Exhibit 1-12: What does a professional salesperson do? Creates new customers Sells more to present customers Builds long-term relationships with customers Provides solutions to customer’s problems Provides service to customers Helps customers resell products to their customers Helps customers use products after purchase Builds goodwill with customers Provides company with market information

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-19 Relationship Marketing Creating customers for tomorrow Customer loyalty Committed relationships Levels of Relationship Marketing Transactional selling Relationship selling Partnering

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-20 The Plan of the Textbook The role of the sales force in the marketing mix Why people and organizations buy what they do Verbal and nonverbal communications The importance of knowing your and your competition’s products An in-depth discussion of the selling process Self, time, and sales territory management Retail, business, services and nonprofit selling The social, ethical, and legal issues in selling

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-21 Building relationships through the Sales process The sales process is a sequential series of actions: Prospecting Objections Pre-approach Approach Presentation Trial close Meet objections Trial close Close Follow-up and service

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-22 Exhibit 1-14: Ten Important Step in the Customer Relationship Selling Process

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-23 Summary Personal selling is an old and honorable profession Millions of people have chosen sales careers because of: Job availability Personal freedom The challenge Opportunities for success Non-financial rewards Financial rewards

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-24 Summary cont… Success comes from: Training Applying knowledge Developing skills Working hard Wanting to succeed Maintaining a positive outlook Effective time management

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Ryerson 1-25 Notes for the Next Class