BYU M13-15

Personal selling in B2B selling

Process of inducting and assisting a prospective customer to buy goods or services or to act on an idea that has commercial significance for the buyers.

3 key components of personal selling

1.) persuasion 2.) customer assistance 3.) mutual benefits

4 key determinants of selling effectiveness

Role perceptions, skills, motivation, aptitude

Role perceptions

A salespersons role is the set of activities/behaviors they are responsible to perform; misunderstanding the role lowers job satisfaction and motivation. Sales managers help avoid role confusion through role accuracy, role ambiguity, and conflict.

Skills

Learnable applications of knowledge; they can improve rapidly with learning and experience. World-class salesperson proficiencies most often include maintenance skills, coping skills, active selling skills

Motivation

Involves initiating effort, having desire/energy for effort, and persisting over time. Motivation results from both the salespersons performance and the satisfaction from rewards. Depends on three linkages: expectancies, instrumentalities, and reward valences.

Aptitude

Inborn potential for learning and proficiency. Includes cognitive abilities, IQ, verbal abilities, and other traits born with. While skills can be developed, aptitude is generally very stab,e through life.

Expectancies

How will my effort affect my performance? Whether effort will lead to performance. If effort increases performance, salespeople are more likely to initiate action. If increased effort won’t make a difference motivation declines. During economic uncertainty leaders may need to change performance criteria/compensation systems to maintain motivation.

Instrumentalities

How will my performance be rewarded? Concern whether performance leads to rewards. Organizations should create a strong linkage between effort and rewards. If salespeople see effort is rewarded, they’re likely to continue/increase effort. If the effort to reward connection is unclear, motivation declines

Reward Valences

How much do I value the rewards? Reflect how much the salesperson values the reward. Different salespeople may value different rewards, therefore no single reward motivates all; a “smorgasbord of rewards” helps align motivation needs.

Steps of personal selling process

1.) Prospecting and qualifying 2.) pre-approach 3.) the approach 4.) the presentation 5.) Handling objections 6.) Closing the sale 7.) Follow-up

Prospecting and qualifying

Most fundamental step, must start strong to end strong. Prospecting is the process of finding people or companies who might be interested in the product offering and services. Once a salesperson has a lead or potential buyer, they’re likely role of the salesperson is to determine if that lead may be qualified as a prospect, someone who is ready to buy or willing to buy, and has the resources and authority to buy the salespersons product offerings.

Pre approach

Salesperson gathers data about each prospect (individual and firm). Data sources = internet, firm's website, mined databases. Uses business intelligence to determine the best way to resolve a prospect's needs/problems and the best way to capitalize on potential opportunities. Most important task is to create a profile of the prospect's communication style and the tactics needed to adapt to preferences. Outcome is to better understand needs/problems increases success in the next step.

The approach

First few minutes and first impression are critical for building relationships and client trust. Salespeople generally begin with a positioning statement. After positioning salespeople ask relevant questions to assess buyer needs, concerns, and potential opportunities. Next decision after questions, whether to proceed to a sales presentation or follow up with additional information or take additional steps.

The presentation

Sales pitch focuses on matching benefits/solutions to prospect needs. In B2B selling, the presentation is generally based on consultative selling (SPIN selling, Problems, Implications, Need Payoff). In consultative selling, the prospect should be doing most of the talking. Salesperson guides thinking so the prospect decides to buy to solve problems and satisfy need to capitalize on immediate opportunities.

Handling objections

Objections or concerns occur during and after the presentation. Professional salespeople view objections as signs of interest or indication the prospect is thinking about the solution.

First step of clarifying objections

- 1.) Restate and Clarify: Clarify if unsure, objections common types = price and product feature objections, source objections, firm objections. Rule: cannot resolve without understanding -> seek to understand before responding.

Second step of handling objections

- 2.) Acknowledge the Objection: Let customers know you are listening before answering, acknowledge viewpoint/concern to show listening, curing understanding. Not the same as agreeing. Build relationship: "Most objections are 60 percent resolved when we simply acknowledge prospects' concerns."

Third step of handling objections

- 3.) Encourage customers to Express their Concerns: Never defensive when responding, thank prospects for sharing concerns and feelings. Rule: answer objections whenever presented. Ignoring objections leads prospects to ignore products/services.

Fourth step of handling objections

- 4.) Offer Proof: Never assume prospects will accept your word. "You can trust me" is often least trustworthy. Use data/proof to remove emotion from objection handling. Page includes an example using an industry report to support quality/durability claims.

Closing the sale

- Closing is about helping customers decide to solve a problem or capitalize on an opportunity. Customers buy for their own reasons. Entrepreneurs should take careful notes and learn "hot buttons" (what works varies by customer).

Two most effective closing methods:

Trial close

Used once product resolves a problem/provides an opportunity. Helps confirm prospects are ready to sign or purchase. Guidance is don't pressure B2B prospects before they are ready, pressure destroys buyer trust and leads to fewer future opportunities.

Benefit summary close

After trial close determines readiness. Salesperson sums important features/benefits discussed by the prospect, matches product benefits to the customer's most pressing needs, and asks the prospect to purchase. If salesperson cannot close, ask "What do I need to do to get a yes?", write down the answer, return after meeting conditions, keep the door open for future opportunities.

Step 7: Follow-Up: After purchase decision, customers still need reassurance it was the right decision. Key relationship is buyer satisfaction and loyalty are a function of customer engagement activities after the sale, smart firms nurture relationships after the sale to generate loyalty and repeat intentions/starts stated business. Outcome 50 to 60 percent of future sales growth usually comes from established customers.

Follow up

After purchase decision, customers still need reassurance it was the right decision. Key relationship is buyer satisfaction and loyalty are a function of customer engagement activities after the sale, smart firms nurture relationships after the sale to generate loyalty and repeat intentions/starts stated business. Outcome 50 to 60 percent of future sales growth usually comes from established customers.

Role accuracy

Whether or not a salesperson understands their responsibilities and the demands placed upon them.

Role ambiguity

What salespeople experience when they are unclear about their role and confused about what is expected of them.

Role conflict

Conflict experienced by salespeople when they are pulled in different directions by the firm and by buyers due to incompatible demands.

Maintenance skills

territory planning, product and company knowledge

Coping skills

Handling anxiety and customer rejection; maintaining self-esteem.

Active selling skills

prospecting, approaching, persuading, handling objections, adapting.

*includes adaptive selling, which is described as correlating most highly with sales performance.

Adaptive selling: ability to use a variety of sales approaches in customer interactions.

Role 1 of modern day sales process: market response reps

- Maint point: MRR's identify and qualify inbound prospects.

- Determine whether inbound lead-tracking prospects have expressed interest in buying. Acts to optimize inbound lead volume through successful marketing and social media campaigns, search engine optimization. Pass qualified leads to sales development reps for outreach and opportunity assessment.

Role 2: Sales Development Reps

- Main point: SDR's create new sales opportunities but do not close deals.

- Described as hunters responsible for finding new clients. Create opportunities to hand off to account executives for closing. Typical SDR activities include making sales calls, conducting demos, attending sales meetings, using other social media to understand psychological sales triggers.

Role 3: Account Executives

- Main point: AE's close deals and manage contract negotiation.

- Described as closers and quota-carrying reps. Work with new and sometimes existing customers to close deals. Responsibilities include discovering clients' business needs, educating customers, proposing value-added solutions, analyzing marketing trends, developing selling plans to target new customers, negotiating and closing contracts.

- spend most of their time on these activities

Role 4: Customer Success or Client Development reps

- Maint point: CSRs/CDRs handle retention and expansion after closing.

- After AEs land a new customer, retention becomes CSR/CDR responsibility.

- AEs are noted as effective at closing but generally poor at educating and training customers to increase product/service usage.

- CSRs described as farmers

* Sole responsibility: increase customer loyalty and retention.

* Achieved by providing additional services.

* Goal: Keep customers using and expanding the firm's product and service offerings.

4 ways channels create value for customers

Marketers increase time utility, place utility, form utility, possession utility

Time utility

make the product available at a convenient time.

Place utility

make product available at a convenient location.

Form utility

make the product available in the form customers want.

Possession utility

make it easy to transfer ownership to the customer (the customer can take possession and use it).

Benefits of intermediaries

- Reduce costs by transporting goods to consumers less expensively than the manufacturer could do alone.

- sell more easily to retailers (they help the manufacturer reach retail outlets and manage selling logistics).

- Reach large customer groups more effectively because they already sell to (or have access to) consumers who are ready to buy.

How channel members add value through increasing customer benefits and by reducing costs

Add value through (customer benefits) (more better more convenient, less time)

1.) Product benefits: enhancing product quality (improve the product)

Breaking bulk by offering quantities customers want.

Providing assortment/variety so customers can choose the product form and options they want.

2.) Service benefits: Adding added-value services such as inventory, promotion, payment terms, credit, delivery, installation, training, tech support, repairs, consulting, and warranty.

3.) Image benefits: Building/strengthening brand image by selecting channel partners that can reflect or enhance the brand.

Add value through (Reducing cost): Improving cost efficiency - by reducing the number of transactions between producers and consumers.

3 types of marketing channels

Direct, indirect, and mixed

Direct distribution

Has no intermediaries; manufacturers sell directly to consumers.

Indirect distribution

Uses intermediaries (distributors, wholesalers, retailers) because direct selling may be inefficient.

Mixed distribution

- Mixed distribution: More manufacturers can use a combination of direct and indirect channels due to the internet; mixing can create risks.

o Danger/consequence: consumer could buy directly from manufacturers at lower prices than what consumers would pay at a retail store. (stores may lose sales or be forced to lower prices)

o Channel conflict risk, distribution channels require careful attention and coordination by marketing managers.

3 types of distribution strategies for products and services

Intensive, selective, and exclusive

Intensive

Occurs when a company sells its products through as many retailers as possible, aiming to make the product available in every outlet where customers might want to buy it.

Selective

selling products through a limited number of qualified retailers, requiring the company to actively vet and decide which retailers to use.

Exclusive

Occurs when a company sells its products through only a few retailers; the retailer has the exclusive right to distribute the product in a specific geographic area.

How retailing works from the perspective of a product manufacturer

- Retailing means manufacturers must work to get (and keep) strong retail presence because big retailers often have more power than big manufacturers.

- Manufacturers spend time and money working with retailers to win things like shelf location and space, end-of-aisle displays, and to coordinate promotions and store visits to organize displays and check inventory.

- Manufacturers try to win the "first moment of truth" -the first seven seconds shoppers take to decide whether to consider, compare, and/or select a product on the shelf. Focus on product availability and visibility, and they use in-store advertising and packaging to influence purchase decisions.

Bottom Up Approach

(emerging opportunities)

Ideas typically come from employees, customers, or the market (often many small inputs). It tends to be more decentralized and encourages experimentation. Company usually helps with resources, but teams are empowered to propose and test ideas. Best when you want to discover novel, market-driven opportunities and move quickly through learning cycles.

(

Top down approach

Direct strategy)

Ideas start from leadership or corporate - for example, executives define priorities, markets, and goals. It's more centralized and guided by specific themes or constraints. Teams then search for opportunities that fit the strategy and can be scaled. Best when you need alignment around clear strategic bets and efficient resource allocation.

How WOW focus groups are conducted

-Run to quickly learn what matters to real customers and to surface "Wow" moments. Designed to uncover high-intensity customer reactions.

How conducted

-Recruit participants who match your target customer segment (often 6-10 people per group)

-Prepare a WOW focused discussion guide: what problems/need they have today, what triggers buying/searching, what experiences they find compelling, what would make them say "wow".

-Run the session (60-90 mins) start with warm-up to establish context + language, use prompts and activities to explore experiences and decision drivers, share early concepts if you have them, probe for reactions: what resonates, what feels missing, what p what would make them say "wow".

-Capture the most important output: specific wow statements + quotes, which benefits fuel most valuable, objections and confusing points, clear language customers use (aka (good for positioning and messaging)

First way to find a good idea

Look for existing problems: Identify painful problems people already pay to solve (or work around).

2nd way to find a good idea

Observe customers in their real context: Watch how people behave, what they struggle with, and where they waste their time/money.

3rd way to find a good idea

Follow technology and market trends: Look for new capabilities (tech shifts) or changing customer behavior/regulations that enable new solutions.

4th way to find a good idea

Search for "non-consumers" or substitutes: Consider people who don't use current solutions and why; also examine substitute products/services and why they win.

5th way to find a good idea

Get ideas from inside your network: Leverage inputs from customers, partners, employees, experts, and entrepreneurs (including pilots and collaborations).

Pop up demo day

Host a small session where people can try/see the concept.

Partner led workshops

Co-host with a complementary business - often cheaper than doing it solo.

Customer invite sessions

(private): Invite 10-20 target users and run a structured discussion (can be combined with WOW focus group methods).

Meet up/ guest talk

Speak on the problem you solve; use a short CTA to a waitlist

Community challenge

Ask people to submit how they solve the problem today's winners get access or prizes.

Demo booth at niche events

If the audience is specific, a small booth or table can be a high-leverage spend.

Rule 1 of successful marketing events

1. Invite the right people: Recruit target customers (not "everyone"). Use clear screening for feedback.

2nd rule of successful marketing events

Have one clear goal for the event: measure demand, test messaging, or capture WOW reactions.

3rd rule of successful marketing events

Make it interactive, not just presentational: Give attendees something to do, try a demo, answer scenarios, or compare "before vs. after."

4th rule of successful marketing events

Use structured prompts to capture learning: Ask consistent questions like "What problem is this solving for you?", "You say "wow"?", "What stops you from adopting?", "What would make you say "wow"?".

5th rule of successful marketing events

Follow up immediately with a next-step offer: Send a short recap + CTA within 24-48 hours (waitlist, trial, pilot, or booking a call), and track conversions.

How a successful demo is done

How a successful demonstration is done: shows the value for the customer, makes it easy to imagine using it, is interactive, creates WOW moments on purpose, and tests assumptions.

What to prep before the demo, a single sentence value proposition, a demo script, a fallback plan, and a short feedback capture method.

A simple demo flow: cold open (30-60 sec) = who it's for + the specific job to be done, quick scenario (1-2 min) = walk through a real situation audience recognizes, show the solution, let them try, WOW probing questions; Clear next step (30 sec).

Why some entrepreneurs get so obsessed with their product they neglect basic selling and other marketing activities

-They think "If we build it, customers will come." They may misunderstand that customers will come only if customers love the value and trust the marketing rules are, "are how customers learn the value and trust.

-Build earth: Feels unstable; selling feeds uncertain. It requires iteration, selling feedback uncertain. To iterate, it can crawl out time needed for outreach, positioning, pricing, tests, and follow-up.

-They confuse product iteration with customer validation. Improvements to the product can feel like validation, even if they haven't learned whether customers actually want it. They get trapped by "product-centric" stories. It's easier to talk about the tech than to repeat repeatedly explain the customer outcome and handle objections.

-They’re trying to solve too many problems at once

Landing page + ads (small budgets)

create a one-page site that explains the value proposition, then run a tiny test to see if people click and sign up.

Waitlist/email capture

Offer early access; measure conversion rate and the quality of leads you attract.

Concierge MVP

Instead of building the product, deliver the service manually for a small set of customers; validate demand and the "WOW" reactions.

Product demo via existing channels

Use demos on platforms where your customer already hangs out (YouTube, TikTok, etc.) and measure engagement.

Cold outreach campaign

Target likely buyer with a tailored message and track replies, meetings, and conversion to trials.