Basal Module 1 Overview of Personal Selling

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UNIVERSITY OF MAKATI

J. P. Rizal Ext., West Rembo, Makati City


COLLEGE OF BUSINESS AND FINANCIAL SCIENCE
DEPARTMENT OF MARKETING MANAGEMENT
Course Title Title
Module No. 1
OVERVIEW OF PERSONAL SELLING
PROFESSIONAL
SALESMANSHIP
Prepared by DR. SOLZHENITZYN T. BASAL

At the end of this lesson, the student will be able to:

1. Describe the evolution of personal selling from ancient times to the


modern era.
2. Explain the contributions of personal selling to society, business firms,
and customers.
Learning Outcomes
3. Distinguish between transaction-focused traditional selling and trust-
based relationship selling.
4. Discuss five alternative approaches to personal selling.
5. Describe the three primary roles fulfilled by consultative salespeople.
6. Understand the sales process as a series of interrelated steps.

A BRIEF HISTORY OF SALES

The first World’s Salesmanship Congress was held in 1916 in Detroit, and President Woodrow Wilson was
the keynote speaker.

Many suggest that the first formal sales program was implemented at National Cash Register (later known
as NCR) in Ohio, by John Henry Patterson.

Some would argue that the art and science of selling began in the Garden of Eden, and the prototype for all
salespeople is a nefarious serpent.

Whereas evolutionists might claim that Homo erectus was the first human to sell, via barter and trade
almost 1.5 million years ago.

Regardless, the profession of modern selling in the 19th, 20th and 21st centuries has evolved dramatically.
INTRODUCTION

We’ve progressed from hucksters, to general stores, to canvassers, to traveling salesmen (yes, mostly
“men”), to the hard-sell salesperson, the highly relationship-oriented salespeople that would “schmooze”
customers for their business, to telemarketers and modern telesales people, and onwards to the more
professional salesperson managing a “territory” on behalf of a commercial organization.

But in recent years there has been a profound evolutionary shift.

Today, customers are far more educated and sophisticated, with access to more information than they had
even ten years ago. And we all operate in an expanding global economy, facing intensified competition in
almost every industry and sector. Therefore, historic approaches to sales are no longer effective.

Until recently, we all believed that the fundamental role of sales representatives was to get people to buy
your product or service.

But today…we finally realize that the single biggest key to sales success is to actually stop selling
altogether. In today’s marketplace, people (at home and in business) don’t want to be “sold”. In fact, they
resist it strongly. Instead, customers want to “buy” independently, or work with business “partners.”

In order to succeed, we must break the historical push-pull dance that happens between salespeople and
customers (salespersons’ tries to convince, and customers try to resist).
LESSON 1- 1. What is Personal Selling?

Personal selling is an organizational function that creates, communicates, and delivers value to
customers and manages customer relationships in ways that benefit both the organization and its
stakeholders.

2. Evolution of Personal Selling


A. Origins of Personal Selling
B. Industrial Revolution Era
C. Post- Industrial Revolution Era
D. War and Depression Era
E. Professionalism: The Modern Era
CONTENT

3. Contributions of Personal Selling

A. Salespeople and Society


1. Salespeople help stimulate the economy
2. Salespeople help with the Diffusion of Innovation

B. Salespeople and the Employing Firm


1. Salespeople generate revenue
2. Salespeople provide market research and feedback
3. Salespeople become future leaders in the organization

C. Salespeople and the Customer


1. Salespeople provide solutions to problems
2. Salespeople provide expertise and serve as information resources
3. Salespeople serve as advocates for the customer when dealing with the selling
organization
LESSON 2- 1. Transaction-Focused VS. Relationship-Focused

Transaction-Focused
• Short term thinking
• Making the sale has priority over most other considerations
• Interaction between buyer and seller is competitive
• Salesperson is self-interest oriented

Relationship-Focused
• Long term thinking
• Developing the relationship takes priority over getting the sale
• Interaction between buyer and seller is collaborative.
• Salesperson is customer-oriented

LESSON 3. Classification of Personal Selling Approaches

3.1 Stimulus Response Selling


 Simple in design; assumes conditioned response improves likelihood of success; a
risky and unreliable strategy.
3.2 Mental States Selling
 Assumes buyer can be led through mental states; promotes one-way communication;
a risky and unreliable strategy
3.3 Need Satisfaction Selling
 Interact with buyer to determine existing needs; present solutions to needs; solutions
limited to seller’s products.
3.4 Problem-Solving Selling
 Interact with buyer to determine existing and potential needs; present multiple
solutions not limited to seller’s products.
3.5 Consultative Selling
 The process of helping customers reaches their strategic goals by using the products,
service, and expertise of the selling organization.

LESSON 4- The Sales Process: An overview


1. Initiating Customer Relationship
 Prospecting
 Preapproach
 Presentation Planning
 Approaching the Customer

2. Developing Customer Relationship


 Sales Presentation Delivery
 Earning Customer Commitment

3. Enhancing Customer Relationship


 Adding Value through Follow-up, Self-leadership, and Teamwork

Selling Foundations

In order to be successful in today’s global business environment, salespeople must have a solid
relationship building foundation. They must:
 Be Trustworthy
 Behave ethically
 Understand Buyer Behavior
 Possess Excellent Communication Skills

Selling Strategy

In order to be successful in today’s global business environment, salespeople must also think and act
strategically. The must develop strategies for:
 Each sales call
 Each customer
 Their sales territories
Note: Each strategy is related to the other

LESSON 5 - Sales Careers

Characteristics of Sales Careers

A. Job Security - Selling skills are readily transferable from industry to industry….and the need
for good salespeople will never go away. Accordingly, good salespeople have opportunities
within and across industries.

B. Advancement Opportunities - Salespeople are familiar with the market, the customers, and
the products. In addition, good salespeople have great interpersonal skills.

These attributes help to make salespeople good candidates for leadership in the organization.
C. Immediate Feedback - Customer responses to the salesperson’s efforts are typically
immediate…providing the salesperson performance feedback and the opportunity to adjust “on
the fly.”
D. Prestige - The role of the professional salesperson is not well known by the general public
and is eclipsed by negative stereo types . . . but that is slowly changing.
E. Job Variety - Professional selling is rarely the same from day-to-day. The word “routine”
doesn’t apply.
F. Independence - Usually, salespeople are accountable for attaining certain goals…how they
get there is up to them. There are no “time-clock” and no taskmaster.
G. Compensation - Good salespeople usually earn an income well above the national average.
Many salespeople earn six figure incomes (or higher). Income is most often tied directly to
performance.

Other Defining Characteristics


The primary focus of the selling activities
 Generate new accounts
 Maintain existing accounts
 Combination
Where the selling conducted
 Inside
 Outside
How the selling conducted
 Telephone
 Field
Characteristics of Successful Salespeople
 Empathy
 Ego Drive
 Ego Strength
 Motivation
 Ethical Behavior
 Interpersonal Communication Skills

“Quotes for Class”

1. Everyone lives by selling something. |Robert Louis Stevenson


2. Salesmen should bear in mind that more mature men who have reached a
certain point in business buy rather than are sold. A real salesman does not
attempt to sell his prospect but instead directs his efforts towards putting the
prospect in a frame of mind so that he will be moved to action by a given set of
facts. |Roy Howard
ASSESSMENT

REFLECTION QUESTIONS:

1. Answer the Application Exercises and present it in class.

APPLICATION EXERCISES:
Professional Selling Assignment

Case 1. Plastico Inc.

Summary: Sales representative Sharon Stone was recently assigned to Plastico Inc.'s central
Michigan territory. Plastico Inc. is a manufacturer and marketer of high-quality plastic components to
industrial markets. Fresh out of college and the company's training program, she was eager to make
ASSIGNMENT

her first sales call. She scheduled an appointment with David Kline, materials purchasing manager for
a small refrigerator manufacturer in Ann Arbor, Michigan. She arrived late for her appointment, forgot
her samples, and had a difficult time getting Kline to talk about anything other than the football and
basketball programs at Michigan. Afraid Kline would get back to discussing basketball; she failed to
properly assess his needs and monopolized the entire sales presentation. Fearing she might lose the
sale she lied about turn-around time. Upon finishing, she failed to gain any type of commitment.

Discussion Questions
1. What problems do you see with Sharon's first sales call?
2. If you were Sharon's sales manager, what would you recommend she do to improve her chances of
succeeding?

LEARNERS SUPPORT
 Ingram, Thomas N., LaForge, Raymond W., Avila, Ramon A., Schwepker, Charles H.,
Williams, Michael R., Professional Selling: A Trust-Based Approach, 4th Edition, ISBN-13:
978-0324538090, ISBN-10: 032453809X
 Batchelor, David J., Horn, Arthur H., Norton, H.L Barry, Professional Selling, Canadian
REFERENCES

Professional Sales Association 310 Front Street West Suite 800 Toronto, Ontario, M5V 3B5,
Tel: (416) 408-2685 Toll-free: 1-888-267-2772, Website: www.cpsa.com, ISBN 1-895879-52-3
 Serrano, Angelita C.,2018. Professional Selling. Unlimited Books: Phils.
 Fundamentals of Sales Management for The Newly Appointed Sales Manager: Matthew
Schwartz
 Sales Management: Ingram/LaForge/Avila

LINKS:
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