Professional Selling Exam 1 NotesChapter 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 informationfrom 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 totalimpact 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-sales people can control what types of products the company makes -sales people can control when the company makes the products. • Marketing-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 intelligenceAre Sales People Born or Made? • 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.Rewards in Selling • Independence and responsibility• Management opportunities• Financial rewardsChapter 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 bybehavioral 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 othercompanies. The Evolution of Personal SellingRelationships 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 timeTypes of Relationships between buyers and sellersFactors 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
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