Sales Managment Lecture Notes 1

What is personal selling?

Person-to-person communication with a prospect.

What does the prospect of personal selling involve?

Developing relationships, discovering needs, matching products with needs, and communicating benefits.

What does the personal selling process add?

Value

How many prescriptions does the personal selling philosophy involve?

Three prescriptions

What is the first prescriptions of the personal selling philosophy?

Adopt the marketing concept

What is the third prescription of the personal selling philosophy?

Assume the role of problem solver or partner.

What model are the three prescriptions part of?

The Strategic/Consultative Selling Model

What is the selling concept?

The idea that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.

What is the work effort of knowledge worker centered around?

Creating, using, sharing and applying knowledge.

What is one way to add value to information?

Collect, organize, clarify, and present it in a convincing manner.

What do inbound inside salespeople do?

Respond to incoming calls initiated by the customer.

What do outbound inside salespeople often use for sales and service?

Telemarketing

What do outside salespeople do?

Travel to meet prospects and customers in their places of business or residence.

How do inside and outside salespeople often work?

They often work closely together.

Who does a trade salesperson sell to?

Organizations in the supply chain, usually retailers.

Who does a retail salesperson sell to?

Consumers who come into stores.

Who does a missionary salesperson, or detail rep, sell to?

People who recommend or prescribe a product to others but do not personally use it.

What are the strategies to reduce costs listed in the lecture notes?

Purifying, shifting non-selling activities to lower-cost alternatives, and outsourcing.

What is outsourcing?

Hiring another company to carry out a task or set of tasks.

What is an advantage of company-employed salespeople?

The company can exert greater control over their efforts.

What is another advantage of company-employed salespeople?

Greater control over who is hired.

What products do company-employed salespeople focus on?

Only the company’s products.

How can outsourcing reduce selling costs?

A firm’s selling costs can be shared with other manufacturers, reducing cost per sales call.

What customer advantage can outsourced representatives provide?

Established relationships with customers from which the manufacturer can benefit.

What market advantage can outsourced representatives provide?

Greater coverage of the market for the manufacturer.

When did the Marketing Era begin?

the 1950s.

During the Marketing Era, what do organizations determine?

The needs and wants of target markets.

During the Marketing Era, what replaced product orientation?

Customer orientation

What information did organizations recognize that salespeople could collect?

Product, market, and service information concerning the buyer’s needs.

When was the Consultative Selling Era?

Late 1960s to early 1970s.

During the Consultative Selling Era, what did salespeople become?

Diagnosticians and consultants of customers’ needs.

How were buyer needs identified during the Consultative Selling Era?

Through two-way communication

What replaced manipulation tactics during the Consultative Selling Era?

Information giving and negotiation tactics

When was the Strategic Selling Era?

Early 1980s

What created the need for greater structure and more emphasis on planning during the Strategic Selling Era?

Greater emphasis on market niches

During the Strategic Selling Era, what was given as much attention as seeling tactics

Strategy

What received greater emphasis during the Strategic Selling Era

Account management and team selling

When did the Partnering Era begin?

1990 to present

How were salespeople encouraged to think during the Partnering Era?

In the context of long-term, high-quality partnerships with customers.

What became the driving force in sales during the Partnering Era?

The customer supplanted the product as the driving force in sales.

What has greater emphasis in the Partnering Era?

Adaptive selling

What does the marketing concept say achieving organizational goals depends on?

Knowing the needs and wants of target markets and delivering the desired product.

What are the paths to sales and profits according to the marketing concept?

Customer focus and value.

What is of primary importance in the marketing concept?

Customer satisfaction.

How has personal selling evolved over the last 50 years according to the lecture notes?

From peddling to long-term relationships, consultative selling, and value-added partnering.

What type of buyer does transactional selling primarily serve?

A buyer primarily interested in price and convenience

What two industry trends contributed to the decline in transactional sales approaches?

The rise of e-commerce and the increasing complexity of businesses.

What did consultative selling develop from?

The marketing concept.

What does consultative selling emphasize?

Need identification.

In consultative selling, how is the customer viewed?

As a person to be served, not a prospect to be sold.

How does consultative selling identify or diagnose customer needs?

Through two-way communication.

What type of sales presentation is not emphasized in consultative selling?

A high-pressure sales presentation.

What is emphasized in consultative selling instead of manipulation?

Information giving, problem solving, and negotiation.

What happens after the sale in consultative selling?

There is an emphasis on service after the sale.

How many steps does the Strategic/Consultative Selling Model include?