Professional Selling Exam 1 Notes Chapter 1 Selling and Salespeople Why Learn About Selling The principles of selling are useful to everyone not just people with the ti tle of salesperson Developing mutually beneficial long term relationships is vital to all of us People in business use selling principles all the time Get an idea of what sales people do in their day to day activities Personal selling is a person to person business activity in which a sales person uncovers and satisfies the needs of a buyer to the mutual long term benefit of both parties Selling involves helping customers identify problems offering information about potential solutions and providing the after sales service to ensure long term satisfaction Seller s goal is to create value which is the total benefit that the sellers products and service provides What is a Selling Situation 1 Person has a need or want 1 Person has a solution for that need or want Some form of exchange has to take place for the solution to pass from one party to the other Selling and Distribution Channels A distribution channel is a set of people and organizations and technolo gies responsible for the flow of products services money and information from the producer to the ultimate user Business to Business is the most popular Trade salespeople sell to firms that resell the products rather than using them within the firm Missionary sales people work for a manufacture and promote the manufac ture products to other firms Manufactures agents independent business people who are paid a commis sion by a manufacturer for all products or services sold The Role of Sales People in Business Go to market strategies the various options that a firm has to sell their prod ucts EX Multi channel using various strategies at the same time Sales force intensive firms who rely mainly on sales people as their strategy Based on Integrated marketing communications communications pro grams that coordinate the use of various vehicles to maximize the total impact on the consumers Dependant on Customer Lifetime Value CLV selling firms determine which strategy to use based on such factors as the estimated value of the customer over a lifetime of the relationship CLV how long customers stay with you cost of product and cost to sell CLV years per year cost cost to sell Communication Methods Each communication model has its strengths and weaknesses Companies have more control over paid vs nonpaid methods Publicity and Word of Mouth have more credibility since they are from independent sources Personal selling offers the most flexibility because they can treat each customer differently based on needs and wants Sales People Impact the Entire Firm Finance Accounting sales people have a huge impact on profits Cost of sales pricing and cost of goods sold sales people help or hurt cash flow Accounts Receivable Sandbagging Supply Chain Management Sales people affect where companies source their products sales people are inventory managers supplier side customer side Manufacturing Marketing sales people can control what types of products the company makes sales people can control when the company makes the products sales people affect the four P s of marketing product price place promo tion Characteristics of Salespeople Motivation Dependability and trustworthiness Ethical sales behavior Customer and product knowledge Communication skills Flexibility Creativity Confidence Emotional intelligence Are Sales People Born or Made Rewards in Selling Independence and responsibility Management opportunities Financial rewards The skills required to be a successful salesperson can be learned Innate characteristics such as personality traits gender and height are largely unrelated to sales performance Companies spend billions of dollars each year on training Chapter 2 Building Partnering Relationships Types of Relationships Market exchanges transaction between a buyer and a seller in which each party is concerned only about that party s benefit Solo exchanges when both parties do not intend on doing business again they both pursue their own self interest Functional relationships long term market exchanges characterized by behavioral loyalty The buyer purchases the same product out of habit or routine As long as the buyer is satisfied and the product does what it is suppose to do and was sold at a reasonable price the buyer will continue to buy it Partnerships both parties are concerned about each others welfare and de velop a win win relationship Relational partnerships the buyer and sales person have a close per sonal relationship Allows them to communicate and cooperate effec tively The partners trust each other and are therefore not concerned about minor details Although both parties are striving to make money they are also trying to build a long term relationship Strategic partnerships long term business relationships in which the partner organizations make significant investments to improve their profitability of both parties It creates a strategic advantage over other companies The Evolution of Personal Selling Relationships and Selling Relationship marketing companies attempt to make stronger relationships with their customers because loyal customers buy more are willing to pay more and are more valuable customers In professional selling you want to create a relationship that best fits customer needs and wants Loyalty Behavioral Loyalty to the purchase of the same product from the same vendor over time Attitudinal Loyalty is an emotional attachment to a brand company or salesperson Lifetime customer value the sum of their purchases over their entire life time Types of Relationships between buyers and sellers Factors Affecting the Market Exchanges VS Relationship Selling Market Exchange Relationship Selling Market Exchange Selling Goal Make the sale Making contact Find someone to listen Make small talk Ingratiate and build support Closing the sale deliver a sales pitch to Get the prospect s attention Create interest Build desire Get the prospect to take action Stay alert for closing signals Use trial closes Overcome objections Close early and often Following through Reestablish contact Resell self company and products Long Term Relationship Selling Goal Building Trust Initiating the relationship Engage in strategic prospecting and qualifying Gather and study precall information Identify buying influences Plan the initial sales call Demonstrate an understanding of the customer s
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