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Selling Ingram, Laforge, Avila, Schwepker, and Williams

Selling Ingram, Laforge, Avila, Schwepker, and Williams. Multimedia Presentations Steven J. Remington, Ph.D. Buena Vista University August, 2000. Module 1 An Overview of Personal Selling. Evolution of Personal Selling. Early Origins of Personal Selling Industrial Revolution Era

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Selling Ingram, Laforge, Avila, Schwepker, and Williams

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  1. SellingIngram, Laforge, Avila, Schwepker, and Williams Multimedia Presentations Steven J. Remington, Ph.D. Buena Vista University August, 2000

  2. Module 1An OverviewofPersonal Selling

  3. Evolution of Personal Selling • Early Origins of Personal Selling • Industrial Revolution Era • (1700s Europe; 1850s US) • Post-Industrial Revolution Era • (1800s Europe; 1900 US) • Canned Sales Presentation • The War and Depression Era • Professionalism: The Modern Era

  4. Characteristics of Sales Professionalism • Customer Orientation • Use of Truthful and Nonmanipulative Tactics • Focus on Long-Term Satisfaction of Customer and Selling Firm

  5. Cost/Sales Call $80-$242/ call

  6. Contributions of Personal SellingSalespeople and Society • Salespeople as Economic Stimuli • Salespeople and Diffusion of Innovation

  7. Contributions of Personal SellingSalespeople and the Employing Firm • Salespeople as Revenue Producers • Market Researchand Feedback • Salespeople as Future Managers

  8. Contributions of Personal SellingSalespeople and the Customer Industrial buyers prefer to deal with salespeople who: • Are honest • Understand general business and economic trends, as well as the buyer's business • Provide guidance throughout the sales process • Help the buyer to solve problems • Have a pleasant personality and a good professional image • Coordinate all aspects of the product and service to provide a total package

  9. Sales Support Personnel Missionary Salespeople Detailer Technical Support Salespeople New Business Pioneers Order-getters Existing Business Order-takers Insider Sales (non-retail) Direct-to-Consumer Sales(retail) Combination Sales Jobs Classification Of Personal Selling Jobs

  10. Characteristics Of Sales Careers • Job Security • Advancement Opportunities • Immediate Feedback • Prestige • Job Variety • Independence • Compensation • Boundary-Role Effects

  11. Boundary-Role Effects Role Stress • Role Conflict • Role Ambiguity • Role stress must be dealt with to insure maximum sales productivity

  12. Qualifications And Skills Required For Success By Salespeople • Empathy • To see things as others would see them • Ego Drive • Determination to achieve goals • Ego Strength • Self-assured and self-accepting • Interpersonal Communication Skills • Including listening and questioning • Enthusiasm • In general, and for sales as a career • Additional Characteristics Related to a Given Sales Job

  13. Managing the Sales Force (1:26)

  14. Module 2Understanding Buyers

  15. Types of Buyers • Consumer Markets • Business Markets

  16. Distinguishing Characteristics of Business Markets • Buyers are Larger but Fewer in Number • Derived Demand • Higher Levels of Demand Fluctuation • Purchasing Professionals • Multiple Buying Influences • Close Buyer-Seller Relationships • Supply Chain Management

  17. Initiating the Relationship • Gathering and Studying • Pre-call Information • Approaching and Initiating • Contact • Assessing the Situation and • Discovering Needs Determination of Item and Quantity Needed The Buying Process(Figure 2.1) Recognition of the Problem or Need

  18. Initiating the Relationship • Developing the Relationship • Select Presentation • Explain Features • Confirm Benefits • Handle Objections • Earn and Gain Commitment Description of Item and Quantity Needed Search and Qualification Of Potential Sources Acquisition and Analysis of Proposals Evaluation of Proposals And Selection of Suppliers Selection of an Order Routine The Buying Process(Figure 2.1) Recognition Determination

  19. Initiating the Relationship • Enhancing the Relationship • Follow-up to Assess Customer • Satisfaction • Take Action to Assure Customer • Satisfaction • Encourage Critical Encounters • Expand Collaborative • Involvement • Add Values and Enhance Mutual • Opportunities Recognition Determination Description Search and Qualification Developing the Relationship Proposals Selection of Suppliers Order Routine The Buying Process(Figure 2.1) Recognition of the Problem or Need

  20. Desired State Produce 1,250 units/day The Gap Or Need 250 units/day Actual State Produce 1,000 units/day Phase OneRecognition of the Problem or Need: The Needs Gap(Figure 2.2)

  21. Social Psychological Situational Organizational Needs Knowledge Functional Social Psychological Individual Needs Situational Functional Knowledge Complex Mix of Business Buyer Needs(Figure 2.3)

  22. Phase TwoDetermination of Characteristics of the Item and the Quality Needed Phase ThreeDescription of Characteristics of the Item and the Quality Needed Phase FourSearch for and Qualification of Potential Sources

  23. Phase FiveAcquisition and Analysis of ProposalsEvaluating Suppliers and Products Multi-Attribute Model • Assessment of Product or Supplier Performance (P) • Assessing the Relative Importance of Each Characteristic (I)

  24. Phase Five Acquisition and Analysis of ProposalsMulti-Attribute Model of Adhesives by GM Buyers

  25. Phase FiveAcquisition and Analysis of ProposalsEmploying Buyer Evaluation Procedures to Enhance Selling Strategies • Modify the Product Offering Being Proposed • Alter the Buyer’s Beliefs about the Proposed Offering • Alter the Buyer’s Beliefs about the Competitor’s Offering • Alter the Importance Weights • Call Attention to Neglected Attributes

  26. Phase SixEvaluation of Proposals and Selection of Supplier Phase SevenSelection of Order Routine Phase EightPerformance Evaluation and Feedback

  27. Phase EightPerformance Evaluation and Feedback • Understanding Post-Purchase Evaluation and the Formation of Satisfaction

  28. “Must-Haves” Functional Attributes Psychological Attributes “Delighters” (Figure 2.4)Complex Mix of Business Buyer Needs 37% Level of Influence On Buyers’ Satisfaction Buyers Level of Satisfaction 63% Level of Influence On Buyers’ Satisfaction

  29. Phase EightPerformance Evaluation and Feedback • Understanding Post-Purchase Evaluation and the Formation of Satisfaction • The Growing Importance of Salespeople in Buyer’s Post-Purchase Evaluation

  30. Types of Purchasing DecisionsBuying Situation • Straight Rebuy Buying Situation • Routinized Response Behavior • Modified Rebuy Buying Situation • Limited Problem Solving • New Task Buying Situation • Extensive Problem Solving

  31. Types of Purchasing DecisionsThree Types of Buying Decisions(Exhibit 2.6)

  32. Types of Purchasing DecisionsThree Types of Buying Decisions(Exhibit 2.6)

  33. Types of Purchasing DecisionsThree Types of Buying Decisions(Exhibit 2.6)

  34. Types of Purchasing DecisionsThree Types of Buying Decisions(Exhibit 2.6)

  35. Organizational Buyer BehaviorBuying Center • Initiators • Users • Gatekeepers • Influencers • Deciders • Purchasers

  36. Current Developments in Purchasing • Increasing Use of Information Technology • Relationship Emphasis on Cooperation and Collaboration • Supply Chain Management • Increased Outsourcing • Target Pricing • Increased Importance of Knowledge and Creativity

  37. Module 3Building Trust

  38. Openness Dependability Candor Honesty Confidence Security Reliability Fairness Predictability Buyers define trust using terms such as:

  39. What is Trust? • Trust answers the questions: • Do you know what you are talking about? • Will you recommend what is best for me? • Are you truthful? • Can you and your company back up your promises? • Will you safeguard confidential information that I share with you?

  40. Why is Trust Important? The shift toward relationship selling emphasizes the initiation and nurturing of long-term buyer-seller relationships based on mutual trust and value-added benefits.

  41. Expertise Contribution Compatibility/ Likeability Competence Trust Representation Customer Orientation Candor Dependability How to Earn TrustTrust Builders(Figure 3.1)

  42. Industry Technology Company Competition Product Price/ Promotion Market/ Customer Service Knowledge Bases Help Build Trust and Relationships(Figure 3.2) Possible Knowledge Bases

  43. Sales EthicsImage of Salespeople Television, movies, broadway productions, and the popular press have contributed to a negative image of salespeople portraying them as being associated with deceptive, illegal, and non-customer-oriented behavior.

  44. Sales EthicsImage of SalespeopleDeceptive Practices • When salespeople give answers when they do not know, exaggerating product benefits, and withholding information may jeopardize future dealings with the buyer. • Salespeople can create product liabilities by: • Expressed Warranty • Misrepresentation • Negligence

  45. Sales EthicsImage of SalespeopleIllegal Activities • Defraud • Con • Misuse Company Assets

  46. Sales EthicsImage of SalespeopleNon-Customer-Oriented Behavior • Pushy • Hard Sell • Fast Talking • High Pressure

  47. Sales EthicsImage of Salespeople(Exhibit 3.8) Deceptive Practices Deceptive Deceive Hustle Scam Exaggerate Withhold Bluff Illegal Activities Defraud Con Misuse Company Assets Non-Customer-Oriented Behavior Pushy Hard Sell Fast Talking High Pressure

  48. Module 4Communication Skills

  49. Sales Communication as a Collaborative Process • Relational Sales Communication • A two-way and naturally collaborative interaction • Allows buyers and sellers to • Develop a better understanding of the need situation • Work together to best provide for the customer’s needs

  50. Verbal Communication:QuestioningTypes of Questions Classified by Amount and Specificity of Information Desired • Open-end or Nondirective Questions – free response What happens when…? How do you feel…? Describe the… • Closed-end Questions– response limited to a few words. • Are you… • How many… • How often… • Dichotomous/Multiple-Choice Questions – directive forms of questioning • Which do you prefer, the ____ or the ____?

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