Chapter 2

SNAKE OIL

Evolution of Selling Models that Complement the Marketing Concept

MKT 4113 | Chapter 2

LEARNING OBJECTIVES

  1. Discuss the evolution of personal selling models as an extension of the marketing concept.
  2. Describe the evolution of consultative selling from the marketing era to the present.
  3. Define strategic selling and name the four broad strategic areas in the Strategic/Consultative Selling Model.
  4. Describe the evolution of partnering and the nature of strategic account management.
  5. Explain how value-added selling strategies enhance personal selling.

WHAT IS THE MARKETING CONCEPT?

  • Achieving organizational goals is fundamentally reliant on understanding the needs and wants of target markets and delivering the desired products to meet those needs.
  • The focus on customer orientation and value creation serves as the pathway leading to increased sales and profits for the organization.
  • Customer satisfaction is emphasized as being of paramount importance in the marketing landscape.

HOW HAS PERSONAL SELLING EVOLVED?

  1. Marketing Era
  2. Consultative Selling Era
  3. Selling Era
  4. Strategic Selling Era
  5. Partnering Era

MORE ON CONSULTATIVE SELLING: PRESENTATION GUIDE

It involves several systematic steps, including:

  1. Selection of solutions that match needs
  2. Need discovery for customer satisfaction
  3. Servicing the sale to ensure satisfaction
  4. Solution presentation aimed at solving identified problems

MORE ON CONSULTATIVE SELLING: MAJOR FEATURES

  • The customer is regarded as an individual to be served rather than simply a transaction.
  • This approach emphasizes the identification of needs, problem-solving techniques, and negotiation processes.
  • There is a strong focus on service throughout every stage of the personal selling process.

MORE ON STRATEGIC SELLING: MAJOR FEATURES

  • Strategic Planning: Matching the available resources of the firm to the opportunities presented in the market.
  • Tactics: Refers to the specific techniques, practices, or methods employed to actualize strategies.
  • Selling Strategies: Comprehensive plans designed to achieve sales objectives through the application of chosen tactics.
  • Adaptive Selling: The ability to modify sales behaviors during interactions with customers in order to enhance communication effectiveness.

STRATEGIC/CONSULTATIVE SELLING MODEL

Strategic Steps
  1. Develop a Personal Selling Philosophy
  2. Develop a Relationship Strategy
  3. Develop a Product Strategy
  4. Develop a Customer Strategy
  5. Develop a Presentation Strategy

STRATEGIC/CONSULTATIVE SELLING MODEL: PHILOSOPHY

  1. Develop a Personal Selling Philosophy
    • Prescription:
      • Adopt the Marketing Concept.
      • Value personal selling in customer interactions.
      • Become a problem solver and partner for customers.

STRATEGIC/CONSULTATIVE SELLING MODEL: RELATIONSHIP STRATEGY

  1. Develop a Relationship Strategy
    • Definition: A well-articulated plan aimed at establishing, fostering, and maintaining high-quality relationships.
    • Prescription:
      • Uphold high ethical standards.
      • Present a professional image in all interactions.
      • Manage the relationship process effectively.

STRATEGIC/CONSULTATIVE SELLING MODEL: PRODUCT STRATEGY

  1. Develop a Product Strategy
    • Definition: A comprehensive plan that helps salespeople make informed decisions regarding the selection and positioning of products in order to meet identified customer needs.
    • Prescription:
      • Become a product expert familiar with all aspects of the offerings.
      • Focus on selling the benefits rather than just the features of the product.
      • Configure value-added solutions that address customer problems holistically.

STRATEGIC/CONSULTATIVE SELLING MODEL: CUSTOMER STRATEGY

  1. Develop a Customer Strategy
    • Definition: A strategic plan designed to yield maximal responsiveness to customer needs.
    • Prescription:
      • Gain an understanding of the buying process from a customer perspective.
      • Delve into buyer behavior to tailor interactions effectively.
      • Create a robust prospect base for continued sales opportunities.

STRATEGIC/CONSULTATIVE SELLING MODEL: PRESENTATION STRATEGY

  1. Develop a Presentation Strategy
    • Definition: A carefully crafted plan that seeks to meet specific objectives during each sales interaction.
    • Prescription:
      • Prepare clear objectives for outcomes desired from each sales call.
      • Develop a comprehensive presentation plan to communicate product benefits effectively.
      • Ensure outstanding service is provided throughout the presentation process.

PARTNERING

  • Strategies that are designed to create value lead to increased sales through dedicated partnerships.
  • Successive Sales: The concept emphasizes maximizing profits from both initial sales and repeat sales by nurturing long-term relationships.
  • The length and strength of partnerships directly correlate with sales increases achieved.

STRATEGIC SELLING ALLIANCES

  • The primary goal of forming a strategic selling alliance is to gain competitive market advantages by collaborating with another company whose products and services complement one another.
Steps in Building a Strategic Account Relationship:
  1. Learn in-depth about the potential partner.
  2. Arrange a meeting with the intended partner and discuss the mutual benefits of the alliance.
  3. Present information regarding the profit impacts and other advantages derived from forming a strategic alliance.

UNDERSTANDING CUSTOMER'S VALUE NEEDS

CREATING AND DELIVERING CUSTOMER VALUE

Creating the Value Proposition
Communicating the Value Proposition
Delivering the Value Proposition
  • The aforementioned processes are critical elements in effective market strategies that enhance customer relationships copiously.

TAKE HOME STUDY GUIDE: CHAPTER 2

  • LO 2.1: Be prepared to discuss the evolution of personal selling models and understand their integration into the marketing mix and overall marketing strategy.
  • LO 2.2: Describe the transformation of consultative selling over the years and articulate all essential elements associated with it.
  • LO 2.3: Confidently define strategic selling and elucidate the four primary strategic areas encompassed within the Strategic/Consultative Selling Model.
  • LO 2.5: Identify and define strategies that add value to selling processes, while clarifying how these strategies enhance the overall effectiveness of personal selling practices.