Ch 2: Where Personal Selling Fits

1
Ch 2 Where Personal Selling Fits
2
Profit is a Means to an End

• Profit is
• Profit is

3
The Two Basic Functionsof Business

• Production of
• Marketing those

4
What is Marketing?

• Marketing is a process of planning
• The conception, pricing, promotion, and
  distribution of goods, services, and ideas
• To create exchanges that

5
Customer Orientations Evolution

• The production concept
• The selling concept
• The marketing concept
• (well discuss each)

6
The Production Concept

• Companies originally were production oriented

7
The Selling Concept

• Characterized by product demonstrations and
  unsophisticated sales techniques
• Emphasis on
• Product created and
• Management is
• Stresses needs of

8
The Marketing Concept

• Emphasis is
• Customers
• Management is
• Planning is
• Stresses wants

9
Marketings Importance in the Firm

• Marketers have four main objectives
• Maximize the sales for existing products
• Develop and sell
• Develop new markets for existing
• Provide quality service

10
Product Its More Than You Think

• A good is
• A service is
• Value-added refers to benefits

11
Exhibit 2-4 Examples of Business-To-Business
Value-Adding

• Help customer reduce process costs
• Improve yields
• Reduce waste
• Reduce rework
• Reduce direct labor
• Reduce indirect labor
• Reduce energy costs

12
Exhibit 2-4 Examples of Business-To-Business
Value-Adding

• Help customer reduce inventory
• Consignment
• Just-in-time delivery
• Reduced cycle time

13
Exhibit 2-4 Examples of Business-To-Business
Value-Adding

• Help customer reduce administrative costs
• Simplify billing
• Improve trackability
• Use electronic data interchange

14
Exhibit 2-4 Examples of Business-To-Business
Value-Adding

• Improve safety for customer and his employees
• Reduce price
• Substitute certain product
• Improve company processes

15
What is Meant by the Term Product?

• A product is a bundle of tangible and intangible
  attributes, including package, color, and brand,
  plus the services and even the reputation of the
  seller

16
People Buy More Than the Product

• People buy want-satisfaction as
• Image of owning as a
• What the product will do
• Its quality

products and associated images used for
illustrative purposes only
17
There Are Two General Types of Products -
Consumer and Industrial Products

• A consumer product is produced for, and purchased
  by, households or end consumers for their
  personal use

18
There Are Two General Types of Products -
Consumer and Industrial Products

• An industrial product is sold primarily for use
  in producing other products. Industrial users
  are profit nonprofit organizations that buy good
  and services for one of three purposes
• To make
• To sell to
• To conduct

19
The Key Phrases That Differentiate Between
Consumer and Industrial Products are

• Consumer product - personal use
• Industrial product used in producing other
  products

20
What Is Another Name for an Industrial Product?

21
Consumer and Industrial Products are Often
Distributed Through Resellers

• What are Resellers?
• Resellers, such as wholesalers or retailers,
  purchase products and then sell to organizations
  and/or individuals

22
What Is a Wholesaler? The Wholesaler (May Be
Referred to as a Distributor)

• Primarily engaged in buying, taking title to,
  usually storing and physically handling goods in
  large quantities, and reselling the goods,
  usually in smaller quantities to

23
Exhibit 2-6 Promotion Activities

• Personal Selling is
• personal communication of information to persuade
• Advertising is
• non-personal communication of information paid
  for by an identified sponsor such as an
  individual or an organization (Methods include
  TV, newspapers, catalogs and the radio)

24
Exhibit 2-6 Promotion Activities

• Two types of sales promotion
• Consumer - includes free samples, coupons,
  contests, and demonstrations to consumers
• Trade - encourages wholesalers and retailers to
  purchase and to sell aggressively using devices
  such as sales contests, displays, special
  purchase prices, and free merchandise

25
Relationship Marketing

• Relationship marketing is the creation of
  customer loyalty
• Targets a major customer that it wants to sell
  to now and
• Establishes a long-term

26
Relationship Marketing andthe Sales Force

• Four basic questions used as guidelines in
  defining the role of the sales force
• How much selling effort is necessary to gain and
  hold customers?
• Is the sales force the best marketing tool?
• What type of sales activity will be necessary?
• Can the firm gain strength relative to its
  competition with its sales force?

27
Relationship Marketing andthe Sales Force

• Personal selling builds relationships!
• Two main functions of personal selling are to
• Flexible in operation
• Focused on prospective customers
• Results in actual sales

28
Relationship Marketing andthe Sales Force

• Salespeople implement relationship marketing

29
Three Levels of Relationship Marketing

• Transaction selling
• Relationship selling
• Partnering
• (well discuss each)

30
Three Levels of Relationship Marketing

• Transaction selling customers are sold to and
  not contacted again
• Relationship selling the seller contacts
  customers after the purchase to determine if they
  are satisfied and have future needs
• Partnering the seller works continually to
  improve its customers operations, sales, and
  profits

31
Partnering with Customers

• Encourages both
• Two companies work

32
Consultative Selling

• The process of helping the customer achieve
  strategic short and long-term goals through the
  use of the sellers goods and/or services
• A highly interactive dialogue between a
  salesperson and a customer
• A balanced exchange of information

33
Three Roles of Consultative Selling

• The Team Leader
• Coordinates all of the information, resources,
  and activities needed to support customers
  before, during, and after the sale
• The Business Consultant
• Gives advice and service. Uses internal and
  external resources to gain an understanding of
  the customers business and marketplace

34
Three Roles of Consultative Selling

• The Long-Term Ally
• Creates a winwin situation. As the customers
  sales and profits grow, so do the salespersons
• The ability of a salesperson to fulfill the role
  of long-term ally is a pivotal factor in
  determining whether a sales transaction is just a
  transaction or the beginning of a relationship

35
The Customer-Seller Relationship Gap

• May occur when the salespersons interest in the
  customer declines
• Usually after the sale
• Customers interest increases after the sale
• Service after the sales is so important

36
Whats a Salesperson Worth?

• Worth is dependent upon at least three factors
• Salespeople make a valuable contribution to the
  success of their employer
• Selling closes deals and generates the revenue to
  keep the organization in business