Chapter 2: Evolution of selling models that complement the marketing concept

Question 1

1. Discuss the evolution of personal selling models as an extension of the marketing concept.

Answer 1

▸Marketing concept: Philosophy that says the firm should co-ordinate all its activities to satisfy its customers while achieving its own goals.
*Salespeople are problem solvers who obtain participation of buyers in identifying their problems, which then can be translated into needs.

Question 2

2. Describe the evolution of consultative selling from the marketing era to the present.

Answer 2

*Marketing began looking at needs/wants and creating products/services to meet those (50’s)
▸Consultative selling: Approach to personal selling that is an extension of the marketing concept. Emphasis is placed on need identification, need satisfaction, and the building of a relationship that results in a repeat business (60’s & 70’s). Evolution of selling continued with strategic selling and partnering.
▸Transactional selling: Sales process that most effectively matches the needs of the value-conscious buyer, who is primarily in price and convenience.
*Consultative Sales Presentation Guide:
1.Need Discovery→2.Selection of the solution→3.Need satisfaction presentation→4.Servicing the sale.

Question 3

3. Define strategic selling and name the 4 broad strategic areas in the Strategic/Consultative Selling Model.

Answer 3

▸Strategic planning: Process that matches the firm’s resources to its market opportunities.
*Tactics: Techniques, practices, or methods that a salesperson uses during face to face interactions with customers.
*Strategies: Things that salespeople do as the result of pre call planning to ensure that they call on the right people, at the right time, and with right tactics to achieve positive results.
▸Adaptive selling: Altering sales behaviours during a customer interaction in order to improve communication.
▸Strategic/Consultative Selling Model:
1. Relationship Strategy: Plan for establishing, building, and maintaining quality relationships.
a. Relationship selling: Form of personal selling that involves securing, developing, and maintaining long-term relationships.
2. Product Strategy: Acquiring extensive product knowledge, learning to select and communicate appropriate product benefits that will appeal to the customer, and configuring value added solutions.
3. Customer Strategy: Maximum responsiveness for the customer’s needs.
4. Presentation Strategy: Preparing the sales presentation objectives, preparing a presentation plan that is needed to meet these objectives, and renewing one’s commitment to provide outstanding customer service.

Question 4

4. Describe the evolution of partnering and the nature of a strategic selling alliance.

Answer 4

▸Partnering: Strategically developed, long-term relationship that solves the customer’s problems. Long-term partnership is achieved when the salesperson apply the 4 major strategies of the Strategic/Consultative Selling Model and therefore add value.
▸Strategic selling alliance: Alliances achieved by teaming up with another company whose products or services fit well with your own. And is the highest form of partnering.
▸Customer Relationship Management (CRM): Process of building and maintaining strong customer relationships by providing customer value.

Question 5

5. Explain how value-added selling strategies enhance personal selling.

Answer 5

▸Value-added selling: Series of creative improvements within the sales process that enhance the customer experience. The information economy will reward those salespeople who have the skills, knowledge, and motivation to determine how to create value at every step of the sales process.