Personal selling Midterm

actual states

A buyer's actual state of being.

needs gap

A perceived difference between a buyer's desired and actual state of being.

straight rebuy decision

A purchase decision resulting from an ongoing purchasing relationship with a supplier.

continued affirmation

An example of stimulus response selling in which a series of questions or statements furnished by the salesperson is designed to condition the prospective buyer to answering "yes" time after time, until, it is hoped, he or she will be inclined to say "yes" to the entire sales proposition.

Problem-solving selling

An extension of need satisfaction selling that goes beyond identifying needs to developing alternative solutions for satisfying these needs.

personal selling

An important part of marketing that relies heavily on interpersonal interactions between buyers and sellers to initiate, develop, and enhance customer relationships.

sales dialogue

Business conversations between buyers and sellers that occur as salespeople attempt to initiate, develop, and enhance customer relationships. Sales dialogue should be customer-focused and have a clear purpose.

reliability

Consistency of a salesperson over time to do what is right.

cold calling

Contacting a sales lead unannounced and with little or no information about the lead.

fairness

Fairness and straightforwardness of conduct.

honesty

Fairness and straightforwardness of conduct.

initiators

Individuals within an organization who identify a need.

tracking system

Part of the strategic prospecting plan that records comprehensive information about the prospect, traces the prospecting methods used, and chronologically archives outcomes from any contacts with the prospect.

dependability

Predictability of a person's actions.

Describe several aspects of sales careers, types of selling jobs, and the key qualifications needed for sales success.

Sales careers offer relatively good job security and reasonable opportunities for advancement. Salespeople get immediate job feedback which makes their jobs stimulating, challenging, and interesting. On a daily basis, salespeople are immersed in a dynamic environment with high levels of job variety, thus boredom is rarely an issue. Sales careers have long been associated with independence of action, although sales managers are now monitoring sales activities more closely to improve sales productivity. Sales compensation is tied closely to job performance, especially if commissions and bonuses are part of the pay package. We discuss six types of sales jobs in this chapter: sales support, new business, existing business, inside sales (nonretail), direct-to-consumer, and combination sales jobs. The skills needed for success will depend somewhat on the specific sales job. Among the most important qualifications for sales success are communications skills, a service orientation, problem solving, motivation and taking initiative, dependability, integrity, and adaptability.

advertising inquiries

Sales leads generated from company advertising efforts.

functional attributes

The features and characteristics that are related to what the product actually does or is expected to do.

qualifying sales leads

The salesperson's act of searching out, collecting, and analyzing information to determine the likelihood of the lead being a good candidate for making a sale.

electronic networking

Using social media to help salespeople identify, gather information about, and communicate with prospects.

requests for proposal (RFP)

A form developed by firms and distributed to qualified potential suppliers that helps suppliers develop and submit proposals to provide products as specified by the firm.

serious listening

A form of listening that is associated with events or topics in which it is important to sort through, interpret, understand, and respond to received messages.

trust-based relationship selling

A form of personal selling requiring that salespeople earn customer trust and that their selling strategy meets customer needs and contributes to the creation, communication, and delivery of customer value.

SIER

A model that depicts active listening as a hierarchical, four-step sequence of sensing, interpreting, evaluating, and responding.

inbound telemarketing

A source of locating prospects whereby the prospect calls the company to get information.

order-takers

Also called farmers, these salespeople specialize in maintaining current business.

trade shows

Events where companies purchase space and set up booths that clearly identify each company and its offerings and that are staffed with salespeople who demonstrate the products and answer questions.

nonverbal clusters

Groups of related nonverbal expressions, gestures, and movements that can be interpreted to better understand the true message being communicated.

expressives

Individuals who are high on both responsiveness and assertiveness, are animated, communicative and value building close relationships with others.

amiables

Individuals who are high on responsiveness, low on assertiveness, prefer to belong to groups, and are interested in others.

analyticals

Individuals who are low on responsiveness and assertiveness, analytical and meticulous, and disciplined in everything they do.

drivers

Individuals who are low on responsiveness, high on assertiveness and detached from relationships.

purchasers

Organizational members who negotiate final terms of the purchase and execute the actual purchase. requests for proposal (RFP)

sales leads or suspects

Organizations or individuals who might possibly purchase the product or service a salesperson offers.

evaluative questions

Questions that use the open-and closed-end question formats to gain confirmation and to uncover attitudes, opinions, and preferences the prospect holds.

pioneers

Salespeople who are constantly involved with either new products, new customers, or both. Their task requires creative selling and the ability to counter the resistance to change that will likely be present in prospective customers.

contributions

Something given to improve a situation or state for a buyer.

buying teams

Teams of individuals in organizations that incorporate the expertise and multiple buying influences of people from different departments throughout the organization.

functional needs

The need for a specific core task or function to be performed.

security

The quality of being free from danger.

centers of influence

Well-known and influential people who can help a salesperson prospect and gain leads.

psychological attributes

A category of product characteristics that refers to how things are carried out and done between the buyer and seller.

Detailer

A category of sales support personnel in the pharmaceutical industry working at the physician level to furnish information regarding the capabilities and limitations of medications in an attempt to get the physician to prescribe their product.

missionary salespeople

A category of sales support personnel who are not typically involved in the direct solicitation of purchase orders. Their primary roles are disseminating information, stimulating the sales effort to convert prospects into customers, and reinforcing customer relationships.

sales professionalism

A customer-oriented approach that uses truthful, nonmanipulative tactics to satisfy the long-term needs of both the customer and the selling firm.

dichotomous questions

A directive form of questioning; these questions ask the customer to choose from two or more options.

business market

A market composed of firms, institutions, and governments who acquire goods and services to use as inputs into their own manufacturing process, for use in their day-to-day operations, or for resale to their own customers.

consumer market

A market in which consumers purchase goods and services for their use or consumption.

referral

A name of a company or person given to the salesperson as a lead by a customer or even a prospect who did not buy at this time.

two-factor model of evaluation

A postpurchase evaluation process buyers use that evaluates a product purchase using functional and psychological attributes.

seminars

A presentation salespeople give to generate leads and provide information to prospective customers who are invited to the seminar by direct mail, word of mouth, or advertising on local television or radio.

multiattribute model

A procedure for evaluating suppliers and products that incorporates weighted averages across desired characteristics.

strategic prospecting

A process designed to identify, qualify, and prioritize sales opportunities, whether they represent potential new customers or opportunities to generate additional business from existing customers.

modified rebuy decision

A purchase decision that occurs when a buyer has experience in purchasing a product in the past but is interested in acquiring additional information regarding alternative products and/or suppliers.

outsourcing

A purchase decision that occurs when a buyer is purchasing a product or service for the first time. outsourcing

SPIN

A questioning system that sequences four types of questions designed to uncover a buyer's current situation and inherent problems, enhance the buyer's understanding of the consequences and implications of those problems, and lead to the proposed solution.

ADAPT

A questioning system that uses a logic-based funneling sequence of questions, beginning with broad and generalized inquiries designed to identify and assess the buyer's situation.

sales funnel or pipeline

A representation of the trust-based sales process and strategic sales prospecting process in the form of a funnel.

revenue producers

A role fulfilled by salespeople that brings in revenue or income to a firm or company.

strategic orchestrator

A role the salesperson plays in consultative selling where he or she arranges the use of the sales organization's resources in an effort to satisfy the customer.

long-term ally

A role the salesperson plays in consultative selling where he or she supports the customer, even when an immediate sale is not expected.

Business consultant

A role the salesperson plays in consultative selling where he or she uses internal and external (outside the sales organization) sources to become an expert on the customer's business. This role also involves educating customers on the sales firm's products and how these products compare with competitive offerings.

combination sales job

A sales job in which the salesperson performs multiple types of sales jobs within the framework of a single position.

noncompeting salespeople

A salesperson selling noncompeting products.

compatibility/likeability

A salesperson's commonalities with other individuals.

strategic prospecting plan

A salesperson's plan for gathering qualified prospects.

sales process

A series of interrelated steps beginning with locating qualified prospective customers. From there, the salesperson plans the sales presentation, makes an appointment to see the customer, completes the sale, and performs postsale activities.

outbound telemarketing

A source of locating prospects whereby the salesperson contacts the prospect by telephone.

desired states

A state of being based on what the buyer desires.

introduction

A variation of a referral where, in addition to requesting the names of prospects, the salesperson asks the prospect or customer to prepare a note or letter of introduction that can be sent to the potential customer.

express warranty

A way a salesperson can create product liabilities by giving a product warranty or guarantee that obligates the selling organization even if the salesperson does not intend to give the warranty.

order-getters

Also called hunters, these salespeople actively seek orders, usually in a highly competitive environment.

Discuss five alternative approaches to personal selling.

Alternative approaches to personal selling include stimulus response, mental states, need satisfaction, problem solving, and the consultative approach. Stimulus response selling often uses the same sales presentation for all customers. The mental states approach prescribes that the salesperson leads the buyer through stages in the buying process. Need satisfaction selling focuses on relating benefits of the seller's products or services to the buyer's particular situation. Problem-solving selling extends need satisfaction by concentrating on various alternatives available to the buyer. Consultative selling focuses on helping customers achieve strategic goals, not just meeting needs or solving problems.

AIDA

An acronym for the various mental states the salesperson must lead customers through when using mental states selling: attention, interest, desire, and action.

Mental states selling

An approach to personal selling that assumes that the buying process for most buyers is essentially identical and that buyers can be led through certain mental states, or steps, in the buying process; also called the formula approach.

need satisfaction selling

An approach to selling based on the notion that the customer is buying to satisfy a particular need or set of needs.

stimulus response selling

An approach to selling where the key idea is that various stimuli can elicit predictable responses from customers. Salespeople furnish the stimuli from a repertoire of words and actions designed to produce the desired response.

sales prospect

An individual or organization that has a need for the product or service, has the budget or financial resources to purchase the product or service, and has the authority to make the purchase decision.

social listening

An informal mode of listening that can be associated with day-to-day conversation and entertainment.

Understand the sales process as a series of interrelated steps.

As presented in the figure below, the sales process involves initiating, developing, and enhancing customer relationships. Salespeople must possess certain attributes to earn the trust of their customers and be able to adapt their selling strategies to different situations. Throughout the sales process, salespeople should focus on customer value, first by understanding what customer value is to the customer, then by working to create, communicate, and continually increase that value. Salespeople initiate customer relationships through strategic prospecting, assessing the prospect's situation, planning value-based sales dialogue, and activating the buying process. Relationships are then further developed through engaging prospects in a true dialogue to earn commitment from those prospects. Salespeople enhance customer relationships by following up after the sale, taking a leadership role, and sometimes working as part of a team to increase constantly the value received by the customer. The details of the sales process are covered in Chapters 5, 6, 7, 8, 9 and 10 in this book.

openness

Completely free from concealment: exposed to general view or knowledge.

service issues

Concerns of the buyer that the salesperson should address.

derived demand

Demand in business markets that is closely associated with the demand for consumer goods.

product knowledge

Detailed information on the manufacture of a product and knowing whether the company has up-to-date production methods.

directories

Electronic or print sources that provide contact and other information about many different companies or individuals.

negligence

False claim(s) made by a salesperson about the product or service he or she is trying to sell. openness predictability price knowledge

misrepresentation

False claim(s) made by a salesperson.

must-have attributes

Features of the core product that the customer takes for granted.

influencers

Individuals within an organization who guide the decision process by making recommendations and expressing preferences.

deciders

Individuals within an organization who have the ultimate responsibility of determining which product or service will be purchased.

users

Individuals within an organization who will actually use the product being purchased.

company records

Information about customers in a company database.

customer knowledge

Information about customers that is gathered over time and from very different sources that helps the salesperson determine customer needs to better serve them.

technology knowledge

Information salespeople must have about the latest technology.

market knowledge

Information salespeople must have if larger companies break their customers into distinct markets; salespeople must be familiar with these markets to tailor their sales presentations.

competitor knowledge

Knowledge of a competitor's strengths and weaknesses in the market.

price knowledge

Knowledge tools salespeople must have about pricing policies in order to quote prices and offer discounts on products.

promotion knowledge

Knowledge tools salespeople must possess to explain their firms' promotional programs. reliability

lead management services

Lists of targeted businesses with detailed contact and other information, as well as e-mail, direct mail, telephone, and Web-based marketing services, to connect with targeted leads.

gatekeepers

Members of an organization who are in the position to control the flow of information to and between vendors and other buying center members.

inside sales

Nonretail salespeople who remain in their employer's place of business while dealing with customers.

assessment questions

One of the five stages of questions in the ADAPT questioning system that do not seek conclusions but rather should address the buyer's company and operations, goals and objectives, market trends and customers, current suppliers, and even the buyer as an individual.

discovery questions

One of the five stages of questions in the ADAPT questioning system that follows up on the assessment questions; they should drill down and probe for further details needed to develop, clarify, and understand the nature of the buyer's problems fully.

activation questions

One of the five stages of questions in the ADAPT questioning system used to "activate" the customer's interest in solving discovered problems by helping him or her gain insight into the true ramifications of the problem and to realize that what might initially seem to be of little consequence is, in fact, of significant consequence.

projection questions

One of the five stages of questions in the ADAPT questioning system used to encourage and facilitate the buyer in "projecting" what it would be like without the problems that have been previously "discovered" and "activated."

transition questions

One of the five stages of questions in the ADAPT questioning system used to smooth the transition from needs discovery into the presentation and demonstration of the proposed solution's features and benefits.

implication questions

One of the four types of questions in the SPIN questioning system that follows and relates to the information flowing from problem questions; they are used to assist the buyer in thinking about the potential consequences of the problem and understanding the urgency of resolving the problem in a way that motivates him or her to seek a solution.

problem questions

One of the four types of questions in the SPIN questioning system that follows the more general situation questions to further probe for specific difficulties, developing problems, and areas of dissatisfaction that might be positively addressed by the salesperson's proposed sales offering.

need-payoff questions

One of the four types of questions in the SPIN questioning system that is based on the implications of a problem; they are used to propose a solution and develop commitment from the buyer.

situation questions

One of the four types of questions in the SPIN questioning system used early in the sales call that provides salespeople with leads to develop the buyer's needs and expectations fully.

Define personal selling and describe its unique characteristics as a marketing communications tool.

Personal selling, an important part of marketing, relies heavily on interpersonal interactions between buyers and sellers to initiate, develop, and enhance customer relationships. The interpersonal communications dimension sets personal selling apart from other marketing communications such as advertising and sales promotion. Personal selling is also distinguished from direct marketing and electronic marketing in that salespeople are talking with buyers before, during, and after the sale. This allows a high degree of immediate customer feedback, which becomes a strong advantage of personal selling over most other forms of marketing communications.

competitive depositioning

Providing information to evidence a more accurate picture of a competitor's attributes or qualities.

open-end questions

Questions designed to let the customer respond freely; the customer is not limited to one- or two-word answers but is encouraged to disclose personal and/or business information.

closed-end questions

Questions designed to limit the customer's responses to one or two words.

probing questions

Questions designed to penetrate below generalized or superficial information to elicit more articulate and precise details for use in needs discovery and solution identification.

reactive questions

Questions that refer to or directly result from information the other party previously provided.

tactical questions

Questions used to shift or redirect the topic of discussion when the discussion gets off course or when a line of questioning proves to be of little interest or value.

Explain the contributions of personal selling to society, business firms, and customers.

Salespeople contribute to society by acting as stimuli in the economic process and by assisting in the diffusion of innovation. They contribute to their employers by producing revenue, performing research and feedback activities, and comprising a pool of future managers. They contribute to customers by providing timely knowledge to assist in solving problems.

economic stimuli

Something that stimulates or incites activity in the economy.

trust-based sales communication

Talking with rather than at the customer. A collaborative and two-way form of communication that allows buyers and sellers to develop a better understanding of the need situation and work together to co-create the best response for resolving the customer's needs.

technical support salespeople

Technical specialists who may assist in the design and specification process, installation of equipment, training of customer's employees, and follow-up technical service.

adaptive selling

The ability of salespeople to alter their sales messages and behaviors during a sales presentation or as they encounter different sales situations and different customers.

expertise

The ability, knowledge, and resources to meet customer expectations.

customer orientation

The act of salespeople placing as much emphasis on the customer's interests as their own.

delighter attributes

The augmented features included in the total market offering that go beyond buyer's expectations and have a significant positive impact on customer satisfaction.

Understand sales professionalism as a key driver in the continued evolution of personal selling.

The business environment is becoming more complex, competition is intensifying, and buyer expectations are increasing. These factors are creating more focus on sales professionalism in progressive sales organizations. Sales professionalism requires truthful, nonmanipulative tactics to satisfy the long-term needs of both the customer and the selling firm. To improve sales professionalism, salespeople can embrace high ethical standards, participate in professional organizations, and work from a continually evolving knowledge base.

ideal customer profile

The characteristics of a firm's best customers or the perfect customer.

active listening

The cognitive process of actively sensing, interpreting, evaluating, and responding to the verbal and nonverbal messages of current or potential customers.

nonverbal communication

The conscious and unconscious reactions, movements, and utterances that people use in addition to the words and symbols associated with language.

customer value

The customer's perception of what they get for what they have to give up, for example, benefits from buying a product in exchange for money paid.

assertiveness

The degree to which a person holds opinions about issues and attempts to dominate or control situations by directing the thoughts and actions of others.

knowledge needs

The desire for personal development, information, and knowledge to increase thought and understanding as to how and why things happen.

responsiveness

The level of feelings and sociability an individual openly displays.

social needs

The need for acceptance from and association with others.

situational needs

The needs that are contingent on, and often a result of, conditions related to the specific environment, time, and place.

proxemics

The personal distance that individuals prefer to keep between themselves and other individuals; an important element of nonverbal communication.

consultative selling

The process of helping customers reach their strategic goals by using the products, services, and expertise of the sales organization.

diffusion of innovation

The process whereby new products, services, and ideas are distributed to the members of society.

ethics

The right and wrong conduct of individuals and institutions of which they are a part.

confidentiality

The state of being entrusted with information from a buyer that cannot be shared. contributions customer knowledge

supply chain management

The strategic coordination and integration of purchasing with other functions within the buying organization as well as external organizations.

electronic data interchange (EDI)

Transfer of data electronically between two computer systems.

basis of the bargain

When a buyer relies on the seller's statements in making a purchase decision.

acceleration principle

When demand increases (or decreases) in the consumer market, the business market reacts by accelerating the buildup (or reduction) of inventories and increasing (or decreasing) plant capacity.

candor

honesty of spoken word

Distinguish between transaction-focused traditional selling and trust-based relationship selling, with the latter focusing on customer value and sales dialogue.

trust-based selling focuses more on the customer than does transaction-focused selling. The salesperson will act as a consultant to the customer in trust-based selling, whereas transaction-based selling concentrates more on making sales calls and on closing sales. There is far more emphasis on postsales follow-up with relationship selling than with transaction selling, and salespeople must have a broader range of skills to practice relationship selling. Rather than pitching products to customers, trust-based selling focuses on establishing sales dialogue with customers, and salespeople not only communicate customer value but also help create and deliver customer value.