The pulte sales presentation format should emphasize

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ISBN-13: 978-0-13-447740-4 ISBN-10: 0-13-447740-5

Selling Today M A N N I N G A H E A R N E R E E C E

Fourteenth EditionPartnering to Create Value www.pearsonhighered.com

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Selling Today Partnering to Create Value

M A N N I N G A H E A R N E

R E E C E

Fourteenth Edition

PARTNERING TO CREATE VALUE

F O U R T E E N T H

E D I T I O N

Selling Today

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330 Hudson Street, NY NY 10013

PARTNERING TO CREATE VALUE

F O U R T E E N T H

E D I T I O N

Selling Today GERALD MANNING

Des Moines Area Community College

MICHAEL AHEARNE University of Houston

BARRY L . REECE Virginia Polytechnic Institute and State University

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Copyright © 2018, 2015, 2012 by Pearson Education, Inc. or its affiliates. All Rights Reserved. Manufactured in the United States of America. This publication is protected by copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise. For information regard- ing permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights and Permissions department, please visit www.pearsoned.com/permissions/.

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Library of Congress Cataloging-in-Publication Data Names: Manning, Gerald L., author. | Ahearne, Michael, author. | Reece, Barry L., author. Title: Selling today : partnering to create value / Gerald Manning, Des Moines Area Community College, Michael Ahearne, University of Houston, Barry L. Reece, Virginia Polytechnic Institute and State University. Description: Fourteenth edition. | New York, NY : Pearson, [2018] | Includes bibliographical references and index. Identifiers: LCCN 2016043126| ISBN 9780134477404 (hardcover) | ISBN 0134477405 (hardcover) Subjects: LCSH: Selling. Classification: LCC HF5438.25 .M35 2018 | DDC 658.85—dc23 LC record available at https://lccn.loc.gov/2016043126

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ISBN 10: 0-13-447740-5 ISBN 13: 978-0-13-447740-4

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To our wives (Beth Hall Manning and Vera Marie Reece) whose patience and support made our work possible.

—Jerry and Barry

To my wife Jessica and my children Molly and Jake. —Mike

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Brief Contents

Preface xix Acknowledgments xxviii About the Authors xxxii

Part 1 Developing a Personal Selling Philosophy 3 Chapter 1 Relationship Selling Opportunities in the Information

Economy 4 Chapter 2 Evolution of Selling Models That Complement the Marketing

Concept 29

Part 2 Developing a relationship Strategy 49 Chapter 3 Ethics: The Foundation for Partnering Relationships

That Create Value 50 Chapter 4 Creating Value with a Relationship Strategy 73 Chapter 5 Communication Styles: A Key to Adaptive Selling Today 91

Part 3 Developing a Product Strategy 115 Chapter 6 Creating Product Solutions 116 Chapter 7 Product-Selling Strategies That Add Value 134

Part 4 Developing a Customer Strategy 153 Chapter 8 The Buying Process and Buyer Behavior 154 Chapter 9 Developing and Qualifying Prospects and Accounts 174

Part 5 Developing a Presentation Strategy 199 Chapter 10 Approaching the Customer with Adaptive Selling 200 Chapter 11 Determining Customer Needs with a Consultative

Questioning Strategy 223 Chapter 12 Creating Value with the Consultative Presentation 247 Chapter 13 Negotiating Buyer Concerns 271 Chapter 14 Adapting the Close and Confirming the Partnership 293 Chapter 15 Servicing the Sale and Building the Partnership 311

Part 6 Management of Self and Others 333 Chapter 16 Opportunity Management: The Key to Greater Sales

Productivity 334 Chapter 17 Management of the Sales Force 353 appendix 1 Reality Selling Today Role Plays and Video Scenarios 371 appendix 2 CRM Reports 395 appendix 3 Selling Today 419

Endnotes 487 Glossary 505 Name Index 511 Subject Index 517

vii

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Contents

Preface xix Acknowledgments xxviii About the Authors xxxii

PART 1 Developing a Personal Selling Philosophy 3

Chapter 1 Relationship Selling Opportunities in the Information Economy 4 Personal Selling Today—A Definition and a Philosophy 5 Emergence of Relationship Selling in the Information Economy 5

Major Advances in Information Technology and Electronic Commerce 6 Strategic Resource Is Information 6 Business Is Defined by Customer Relationships 6 Sales Success Depends on Creating and Adding Value 7

Considerations for a Future in Personal Selling 7 Wide Range of Employment Opportunities 8 Activities Performed by Salespeople 8 Freedom to Manage One’s Own Time and Activities 9 Titles Used in Selling Today 9 Above-Average Income 9 Above-Average Psychic Income 10 Opportunity for Advancement 10 Opportunities for Women 10

Employment Settings in Selling Today 11 Selling through Channels 12 Career Opportunities in the Service Channel 12 Career Opportunities in the Business Goods Channel 14 Career Opportunities in the Consumer Goods Channel 15

Selling Skills—One of the “Master Skills for Success” in the Information Age 17

Knowledge Workers in the Information Economy 18 Managerial Personnel 18 Professionals 18 Entrepreneurs and Small Business Owners 19 Marketing Personnel and Customer Service Representatives 20

Learning to Sell 20 Corporate-Sponsored Training 20 Training Provided by Commercial Vendors 21 Certification Programs 21 College and University Courses 24

Chapter Learning Activities 25 • Reviewing Key Concepts 25 • Key Terms 25 • Review Questions 26 • Application Exercises 26 • Role-Play Exercise 27 • Reality Selling Case Problem—Alex Homer/Tom James Company 27 • Partnership Selling: A Role-Play 28

ix

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Chapter 2 Evolution of Selling Models That Complement the Marketing Concept 29 Marketing Concept Requires New Selling Models 30

Evolution of the Marketing Concept 31 Marketing Concept Yields Marketing Mix 32 Important Role of Personal Selling 32

Evolution of Consultative Selling 33 Evolution of Strategic Selling 35

Strategic/Consultative–Selling Model 35

Evolution of Partnering 40 Strategic Selling Alliances—The Highest Form of Partnering 40 Partnering Is Enhanced with High Ethical Standards 42 Partnering Is Enhanced with Customer Relationship Management 42

Value Creation—The New Selling Imperative 43 Chapter Learning Activities 43 • Reviewing Key Concepts 43 • Key Terms 44 • Review Questions 44 • Application Exercises 45 • Role-Play Exercise 45 • Reality Selling Video Case Problem—Ryan Guillory/ Independent Consultant (TWFG) 45

PART 2 Developing a Relationship Strategy 49

Chapter 3 Ethics: The Foundation for Partnering Relationships That Create Value 50 Developing a Relationship Strategy for Partnering Style Selling 51 Issues Challenging the Ethics of Salespeople 52 Factors Influencing Ethical Decision Making of Salespeople 53

Influences in a Global Economy 53 Influence of Senior Management 54 Influence of Company Policies and Practices 55 Influence of the Sales Manager 59 Influence of the Salesperson’s Personal Values 59 Influence of Laws, Contracts, and Agreements 60 Building Trust with the Transactional, Consultative and Strategic Alliance Buyer 61

Making Ethical Decisions That Build Selling Relationships 62

Influence of Character in Ethical Decision Making 62 The Erosion of Character on Ethical Decision Making 62

Developing a Personal Code of Ethics That Adds Value 65 Chapter Learning Activities 66 • Reviewing Key Concepts 66 • Key Terms 67 • Review Questions 67 • Ethics Application Exercises 68 • Role-Play Exercise 71 • Reality Selling Video Case Problem: Edith Botello/Mattress Firm 71

Chapter 4 Creating Value with a Relationship Strategy 73 Relationships Add Value 73

Partnering—The Highest-Quality Selling Relationship 74 Relationship Strategies Focus on Four Key Groups 75 Adapting the Relationship Strategy 76

Thought Processes That Enhance Your Selling Relationship Strategy 77

Self-Concept—An Important Dimension of the Relationship Strategy 77 The Win-Win Philosophy 78 Empathy and Ego Drive 78

x CONTENTS

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CONTENTS xi

Verbal and Nonverbal Strategies That Add Value to Your Selling Relationships 79

Adding Value with Nonverbal Messages 79 Impact of Appearance on Relationships 82 Impact of Voice Quality on Relationships 82 Impact of Etiquette on Your Relationships 83

Conversational Strategies That Enhance Relationships 84 Comments on Here and Now Observations 85 Compliments 85 Search for Mutual Acquaintances or Interests 85

Self-Improvement Strategies That Add Value 85 Chapter Learning Activities 86 • Reviewing Key Concepts 86 • Key Terms 87 • Review Questions 87 • Application Exercises 87 • Role-Play Exercise 89 • Reality Selling Video Case Problem—Susana Rosas/CB Richard Ellis 89

Chapter 5 Communication Styles: A Key to Adaptive Selling Today 91 Communication Styles—An Introduction to Adaptive Selling 92

Communication Style Bias 92 Communication Style Principles 93 Improving Your Relationship Selling Skills 93

Communication Style Model 94 Dominance Continuum 94 Sociability Continuum 95

Four Styles of Communication 96 Popularity of the Four-Style Model 102 Determining Your Communication Style 103 An Online Assessment of Your Communication Style 103

Minimizing Communication Style Bias 103 How Communication Style Bias Develops and Erodes Partnering Relationships 104 Adaptive Selling Requires Versatility That Builds Strong Relationships 104

Building Strong Relationships Through Style Flexing 107 Building Relationships with Emotive Customers 108 Building Relationships with Directive Customers 108 Building Relationships with Reflective Customers 109 Building Relationships with Supportive Customers 109 Word of Caution 109

Chapter Learning Activities 110 • Reviewing Key Concepts 110 • Key Terms 110 • Review Questions 111 • Application Exercises 111 • Role-Play Exercise 112 • Adaptive Selling Case Problem—Ray Perkins/Grant Real Estate 112

PART 3 Developing a Product Strategy 115

Chapter 6 Creating Product Solutions 116 Developing Product Solutions That Add Value 117

Selling Solutions 117 Explosion of Product Options 118 Creating Solutions with Product Configuration 118 Preparing Written Proposals 119

Becoming a Product Expert 119 Product Development and Quality Improvement Processes 120 Performance Data and Specifications 121 Maintenance and Service Contracts—Servicing the Sale 121 Pricing and Delivery 121

Become a Company Expert 123 Company Culture and Organization 123 Company Support for Product 124

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xii CONTENTS

Become the Industry Expert—Know Your Competition 124 Develop and Communicate a Healthy Attitude toward Your Competition 125

Sources of Product, Company and Industry Information 125 Web-Based Sources, Catalogs, and Marketing-Related Sales Support Information 126 Engage in Plant Tours 126 Build Strong Relationships with Internal Sales and Sales Support Team Members 126 Today’s Wired Customers Have a Lot of Product, Competitive, and Industry Knowledge 126 Researching and Using Products 127 Reading and Studying Publications 127 Word of Caution 127

Creating Value with a Feature–Benefit Strategy 127 Distinguish between Features and Benefits 128 Use Bridge Statements 128 Identify Features and Benefits 129 Avoiding Information Overload 129

Chapter Learning Activities 130 • Reviewing Key Concepts 130 • Review Questions 131 • Application Exercises 131 • Role-Play Exercise 132 • Reality Selling Video Case Problem—Amy Vandaveer/Texas Monthly 132 • Partnership Selling: A Role-Play 133

Chapter 7 Product-Selling Strategies That Add Value 134 Product Positioning—In a Competitive Marketplace 135

Essentials of Product Positioning 135 Salesperson’s Role in Product Differentiation 135 Custom Fitting and Communicating the Value Proposition 136

The Three-Dimensional (3-D) Product Solutions Selling Model 137 Product-Positioning Strategies to Sell New (vs. Mature), and Low-Priced (vs. Value-Added) Products 138

Selling New Products Versus Well-Established Products 139

Selling Products with a Price Strategy 142 Selling Your Product with the Value-Added Product-Selling Model 144

Value Creation Product Strategies for Transactional, Consultative, and Strategic Alliance Buyers 147

Chapter Learning Activities 148 • Reviewing Key Concepts 148 • Key Terms 148 • Review Questions 149 • Application Exercises 149 • Role-Play Exercise 149 • Reality Selling Case Problem: Selling New Products at Steelcase 150

PART 4 Developing a Customer Strategy 153

Chapter 8 The Buying Process and Buyer Behavior 154 Developing a Customer Strategy 155

Adding Value with a Customer Strategy 155 Complex Nature of Customer Behavior 156

Consumer Versus Business Buyers 156 Types of Business Buying Situations 157 Types of Consumer Buying Situations 158

Achieving Alignment with the Customer’s Buying Process 158 Steps in the Typical Buying Process 159

Understanding the Buying Process of the Transactional, Consultative, and Strategic Alliance Buyer 161

Transactional Process Buyer 161 Consultative Process Buyer 161 Strategic Alliance Process Buyer 162 The Buyer Resolution Theory 162

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Understanding Buyer Behavior 163 Basic Needs That Affect Buyer Behavior 163 Group Influences That Affect Buying Decisions 165 Perception—How Customer Needs Are Formed 166 Buying Motives 167

Chapter Learning Activities 170 •    Reviewing Key Concepts    170 •    Key Terms    170 •    Review Questions    171 •    Application Exercises    171 •    Role-Play Exercise    171 •    Reality Selling Video Case Problem—Ashley Pineda/ PulteGroup 172

Chapter 9 Developing and Qualifying Prospects and accounts 174 Prospecting and Account Development—an Introduction 175 Importance of Prospecting and Account Development 176

Prospecting and Account Development Requires Planning 177 Account Development and Prospecting Plans Must Be Assessed Often 178

Sources of Prospects and Accounts 178 Referrals    178 Centers of Influence, Friends, and Family Members    179 Directories 180 Trade Publications    180 Trade Shows and Special Events    180 Telemarketing and E-Mail    181 Direct-Response Advertising and Sales Letters    182 Website    182 Computerized Database    182 Cold Calling 183 Networking 184 Educational Seminars    185 Prospecting and Account Development by Nonsales Employees    185 Combination Approaches    186

Qualifying Prospects and Accounts 186 Collecting and Organizing Account and Prospect Information 187