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

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PARTNERING TO CREATE VALUE

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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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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

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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

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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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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

Sales Intelligence    187

Managing the Account and Prospect Base 189 Portfolio Models    189 Sales Process Models    190 Pipeline Management, Pipeline Analytics, and Pipeline Dashboards    191

Chapter Learning Activities    192 •    Reviewing Key Concepts    192 •    Key Terms    193 •    Review Questions    193 •    Application Exercises    193 •    Role-Play Exercise    194 •    Reality Selling Video Case Problem—Dave Levitt/ Salesforce.com    194 •    Regional Accounts Management Case Study Chapters 9–15  Real-World Sales Assignments!    195

Part 5 Developing a Presentation Strategy 199

Chapter 10 approaching the Customer with adaptive Selling 200 Developing The Presentation Strategy 201

Presentation Strategy Adds Value    202

Planning The Preapproach 202 Establishing Presentation Objectives    203

Team Selling Presentation Strategies 203 Strategies for Selling to a Buying Committee    205

Adaptive Selling: Builds on Four Strategic Areas of Personal Selling 205 Developing the Six-Step Presentation Plan 206

Planning the Presentation 207 Adapting the Presentation Plan to the Customer’s Buying Process 208

CONTENTS xiii

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xiv CONTENTS

The Approach 208 The Telephone Contact 209 The Social Contact—Building Rapport 211 The Business Contact 213

Converting the Prospect’s Attention and Arousing Interest 213 Agenda Approach 214 Product Demonstration Approach 214 Referral Approach 214 Customer Benefit Approach 214 Question Approach 215 Survey Approach 215 Premium Approach 216 Combination Approaches 217 Coping with Sales Call Reluctance 217 Selling to the Gatekeeper 218

Chapter Learning Activities 218 • Reviewing Key Concepts 218 • Key Terms 219 • Review Questions 219 • Application Exercises 220 • Role-Play Exercise 220 • Reality Selling Video Case Problem—Alim Hirani/Hilti Corporation 220 • Partnership Selling: A Role-Play 222

Chapter 11 Determining Customer Needs with a Consultative Questioning Strategy 223 The Consultative Sales Process Adds Value 224 The Four-Part Need-Satisfaction Model 225

Part One—Need Discovery 225 Part Two—Selection of the Solution 226 Part Three—Need Satisfaction Through Informing, Persuading, or Reminding 226 Part Four—Servicing the Sale 226

Creating Value with Need Discovery 227 Need Discovery—Asking Questions 228 The Four-Part Consultative Questioning Strategy 229 Qualifying to Eliminate Unnecessary Questions 235

Need Discovery—Listening and Acknowledging the Customer’s Response 235

Need Discovery—Establishing Buying Motives 237

Selecting Solutions that Create Value 237 Selecting Solutions—Match Specific Benefits with Buying Motives 238 Selecting Solutions—Product Configuration 238 Selecting Solutions—Make Appropriate Recommendations 239 Need Discovery and the Transactional Buyer 240 Involving the Prospect in the Need Discovery 240 Transitioning to the Presentation 241

Planning and Execution—Final Thoughts 241 Chapter Learning Activities 242 • Reviewing Key Concepts 242 • Key Terms 242 • Review Questions 243 • Role-Play Application Exercises for “Questioning” Video Series 243 • Reality Selling Case Problem—Debora Karish/ Amgen 244 • Partnership Selling: A Role-Play 246

Chapter 12 Creating Value with the Consultative Presentation 247 Need Satisfaction—Selecting a Consultative Presentation Strategy 248

Need Satisfaction—The Informative Presentation Strategy 248 Need Satisfaction—The Persuasive Presentation Strategy 249 Need Satisfaction—The Reminder Presentation Strategy 249

Guidelines for Creating a Presentation That Adds Value 250 Adapt the Presentation to Meet Unique Needs of the Customer 251 Cover One Idea at a Time and Use an Appropriate Amount of Detail 252

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CONTENTS xv

Use Proof Devices to Demonstrate Buyer Benefits 252 Appeal to as Many Senses as Appropriate 253 Balance Telling, Showing, and Involvement 253 Develop Creative Presentations 253 Consider the Use of Humor—in Moderation 254 Choose the Right Setting 254 Document the Value Proposition 254 Quantify the Solution 255 Check Sales Tools 255 Summarize Major Points 255

Guidelines for a Persuasive Presentation Strategy That Adds Value 255 Place Special Emphasis on the Relationship 256 Target Emotional Links and Use a Persuasive Vocabulary 256 Sell Specific Benefits and Obtain Customer Reactions 257 Use of Showmanship 257 Minimize the Negative Impact of Change 257 Place the Strongest Appeal at the Beginning or End 258 Use the Power of Association with Metaphors, Stories, and Testimonials 258

Guidelines for a Group Sales Presentation 258 Enhancing the Group Presentation with Mental Imagery 259 Video or Media Enhanced Presentation Fundamentals 259

Selling Tools for Effective Demonstrations 260 Product and Plant Tours 260 Models 261 Photos, Illustrations, and Brochures 261 Portfolios 261 Reprints 261 Catalogs 262 Graphs, Charts, and Test Results 262 Bound Paper Presentations 262 Tablets, Laptop Computers and Demonstration Software 263 Rehearse the Presentation 264 Plan for the Dynamic Nature of the Consultative Sales Presentation 264

Chapter Learning Activities 266 • Reviewing Key Concepts 266 • Key Terms 266 • Review Questions 267 • Application Exercises 267 • Role-Play Exercise 267 • Reality Selling Case Problem—Chris Wylie/Ecolab 267 • Partnership Selling: A Role-Play 269

Chapter 13 Negotiating Buyer Concerns 271 Formal Integrative Negotiation—Part of the Win-Win Relationship Strategy 272

Negotiation Is a Process 273 Planning for Formal Negotiations 274 Conducting the Negotiation Session 276 Know When to Walk Away 278

Common Types of Buyer Concerns 279 Concerns Related to Need for the Product 279 Concerns About the Product or Services 279 Concerns Related to Source 279 Concerns Related to Time 280 Concerns Related to Price 280

Specific Methods of Negotiating Buyer Concerns 281 Direct Denial 281 Indirect Denial 281 Questions 282 Superior Benefit 282

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Demonstration 282 Trial Offer 282 Third-Party Testimony 283 Postpone Method 283

Creating Value During Formal Negotiations 284 How to Deal with Price Concerns 284 Negotiating Price with a Low-Price Strategy 286

Working with Buyers Trained in Formal Negotiation 286 Budget Limitation Tactic 286 Take-It-or-Leave-It Tactic 286 Let-Us-Split-the-Difference Tactic 286 “If … Then” Tactic 286 “Sell Low Now, Make Profits Later” Tactic 287

Chapter Learning Activities 287 • Reviewing Key Concepts 287 • Key Terms 288 • Review Questions 288 • “Negotiations: Solving the Tough Problems” Video Application Exercises 288 • Role-Play Exercise 289 • Reality Selling Video Case Problem—Heather Ramsey/Marriott International 289 • Partnership Selling: A Role-Play 291

Chapter 14 Adapting the Close and Confirming the Partnership 293 Adapting the Close—an Attitude that Adds Value 293

Review the Value Proposition From the Prospect’s Point of View 294 Closing the Sale—The Beginning of the Partnership 295

Guidelines for Closing the Sale 295 Focus on Dominant Buying Motives 295 Longer Selling Cycles and Incremental Commitments 296 Negotiating the Tough Points Before Attempting the Close 297 Avoid Surprises at the Close 297 “Tough-Mindedness”—Displaying a High Degree of Self-Confidence at the Close 297 Ask for the Order More Than Once 297

Recognize Closing Clues 297 Specific Methods for Closing the Sale 299

Trial Close 299 Direct Appeal Close 300 Assumptive Close 300 Summary-of-Benefits Close 301 Special Concession Close 302 Multiple Options Close 302 Balance Sheet Close 302 Management Close 303 Impending Event Close 303 Combination Closes 303 Adapting to the Customer’s Communication Style 303 Practice Closing 304

Confirming the Partnership When the Buyer Says Yes 304 What to Do When the Buyer Says No 305

Chapter Learning Activities 306 • Reviewing Key Concepts 306 • Key Terms 307 • Review Questions 308 • Application Exercises 308 • Role-Play Exercise 308 • Reality Selling Video Case Problem—Heather Ramsey/ Marriott International 308

Chapter 15 Servicing the Sale and Building the Partnership 311 Building Long-Term Partnerships with Customer Service 312

Achieving Successive Sales 312 Responding to Increased Postsale Customer Expectations 313 High Cost of Customer Attrition 314

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CONTENTS xvii

Current Developments in Customer Service 315 Computer-Based Systems 316

Customer Service Methods that Strengthen the Partnership 316 Adding Value with Follow-Through 316 Preventing Postsale Problems 319 Adding Value with Customer Follow-Up 320

Adding Value with Expansion Selling 322 Preplan Your Service Strategy 323 Partnership-Building Strategies Should Encompass All Key People 323

Partnering with an Unhappy Customer 325 Chapter Learning Activities 326 • Reviewing Key Concepts 326 • Key Terms 326 • Review Questions 327 • Application Exercises 327 • Role-Play Exercise 327 • Reality Selling Video Case Problem—Khalid Naziruddin/ Sewell Auto 328 • Regional Accounts Management Case Study 329 • Partnership Selling: A Role-Play 329

PART 6 Management of Self and Others 333

Chapter 16 Opportunity Management: The Key to Greater Sales Productivity 334 Opportunity Management—A Four-Dimensional Process 335 Time Management 336

Time-Consuming Activities 336 Time Management Methods 337 Saving Time with Meetings in Cyberspace and Other Methods of Communication 340

Territory Management 340 What Does Territory Management Involve? 341 Sales Call Plans 342

Records Management 343 Common Records Kept by Salespeople 344 Maintaining Perspective 346

Stress Management 346 Develop a Stress-Free Home Office 347 Maintain an Optimistic Outlook 347 Practice Healthy Emotional Expression 347 Maintain a Healthy Lifestyle 347

Chapter Learning Activities 349 • Reviewing Key Concepts 349 • Key Terms 349 • Review Questions 350 • Application Exercises 350 • Role-Play Exercise 351 • Reality Case Problem—Jose Melara 351

Chapter 17 Management of the Sales Force 353 Applying Leadership Skills to Sales Management 354

Structure 355 Consideration 357 Situational Leadership 357

Coaching for Peak Performance 358 Recruitment and Selection of Salespeople 359

Determine Actual Job Requirements 359 Search Out Applicants from Several Sources 360 Select the Best-Qualified Applicant 360 Personality and Skills Testing 361

Orientation and Training 361 Sales Force Motivation 363

Effective Use of External Rewards 363

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Compensation Plans 364 Strategic Compensation Planning    365

Assessing Sales Force Productivity 366 Chapter Learning Activities 367 •    Reviewing Key Concepts    367 •    Key Terms    367 •    Review Questions    368 •    Application Exercises    368 •    Role-Play Exercise    369 •    Reality Sales Managment Case Problem—Assessing  Productivity    369

appendix 1 reality Selling Today role Plays and Video Scenarios 371

appendix 2 regional accounts Management Case Study 395

appendix 3 Partnership Selling: a role-Play for Selling Today 419

Endnotes 487 Glossary 505 Name Index 511 Subject Index 517

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Preface

Much of the Western world has experienced a rapid shift from a production-focused to a sales- and service-focused economy. Approximately one in nine people in the U.S. workforce hold sales- related positions. In fact, selling is the second largest employment category in the United States, offering an enormous variety of different employment contexts and opportunities to more than 21 million salespeople nationwide. Moreover, as sales researchers predict, this figure will go up by the year 2020, as more than two million more workers will be added to the sales profession. Despite these staggering numbers conveying the importance of the sales function, business education has been slow to act to the market’s increased demand for highly trained salespeople. Fortunately, in the last decade, many business schools have either developed or begun to develop specialized courses and programs in sales and sales management. Given the high demand for skilled sales profession- als, senior sales managers are highly enthusiastic about recruiting students from these programs, where many of these students are receiving multiple job offers with excellent earning potential.

Those seeking a job in sales are not the only ones who will benefit from learning how to sell. In fact, almost everyone these days uses traditional sales-related activities in their professional and social lives. People use a whole assortment of selling techniques in everyday life to persuade decision makers and advance their causes. According to Daniel Pink, the author of the recent best-selling book, To Sell Is Human, people are using about 40 percent of their time at work to engage in what he calls “non-sales selling”—persuading, convincing, influencing, and moving others in ways that do not involve anybody making a purchase. Moreover, people across a wide variety of professions spend about 24 minutes of every hour influencing or moving others, and they consider this time investment crucial to their suc- cess.1 Selling is increasingly becoming a master skill for success in the 21st century.

This paradigm shift in which selling has become an integral part of the social and business life has coincided with another major revolution—the dramatic change in which people access informa- tion. The information age has transferred the power from sellers to customers. Today’s customers can easily compare the offerings of different sellers through various online methods and choose those of- ferings that best suit their needs. For example, a recent Google shopper sciences study discovered that, on average, customers gather information from ten different sources before making a decision. In the business-to-business selling context, research estimates that approximately 60 percent of a customer’s buying decision has been completed digitally by decision makers before they reach out to a sales rep. Given this shift, the true value of a salesperson lies in the co-creation of value with the customer.

Another phenomenon that has received less attention in the press is the shift in sales force compo- sition from field sales to inside sales, thereby lowering the sales costs by more than 50% (on average, an outside sales call costs $308 whereas an inside sales call costs only $50). Research by ZS Associ- ates indicates that 40 percent of large companies in the technology arena are shifting from the field to inside sales. In the coming five years, the expected number of jobs to be created in inside sales is nearly three times the job creation for field sales. The primary enablers of this change are the new easy-to-use online videoconferencing and webinar communication tools, which are a good substitute for face-to-face meetings and give customers the comfort of purchasing and collaborating remotely.

The simultaneous shift towards co-creation of value and inside sales represents a dichotomy in sales function and is a manifestation of changing customer preferences. In order to lock their customers in and create and deliver superior value in times when customers have more choices and fewer switching costs, salespeople are adopting a partnering style of selling to build long-term, strategic relationships with their customers. Having these long-term relationships is important, as it is more profitable for companies to retain existing customers than it is to acquire new customers. The pivotal role of a partnering style of selling in today’s highly competitive business environment is a common theme throughout the 14th edition of Selling Today: Partnering to Create Value.

1 Daniel Pink, To Sell Is Human: The Surprising Truth about Persuading, Convincing, and Influencing Others. (NY: Riverhead Books, 2012), pp. 19–25.

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xx PREFACE

The primary goal of each revision of Selling Today is to develop the premier research-backed text available, and the most practical and applied text available in the marketplace. The revision process begins with a thorough review of several hundred articles, books, and research reports. The authors also study popular sales training programs such as Conceptual Selling, SPIN Selling, Integ- rity Selling, Trusted Advisor and Solution Selling. Major corporations throughout the world such as Microsoft, Marriott, Principal Financial Group, UPS, Wells Fargo, and Xerox use these training programs. Of course, reviews and suggestions by professors and students influence decisions made during the revision process as well.

Staying on the Cutting Edge: New to This Edition Since the 13th edition, the business environment and research on personal selling and sales force man- agement have experienced significant changes. Our primary goal as researchers, practitioners, and consultants in the field of selling is to provide a cutting-edge treatment of the field. The 14th edition of Selling Today describes what ramifications the information age has for the selling world and how sales professionals must cope with new issues arising from the information revolution with an ethical, customer-centered mindset. The most significant changes in the new edition include the following:

d Exclusive to 14e Selling Today! New Neil Rackham Selling Today/SPIN Selling Video. Utilizing the extensive research, writing, and worldwide consulting work of Neil Rackham, the authors have partnered with him to produce an exclusive video new to the 14th edition of Selling Today. Neil Rackham is one of the most recognized sales authors of all time. Celebrated for his pioneering book titled SPIN Selling, Neil is a sought-after expert who consults with global organizations on improving and streamlining their sales functions.

Presented in Chapter 11 “Determining Customer Needs with a Consultative Questioning Strategy,” this new to the Adaptive Selling Today Video Series that features Rackham provid- ing cutting-edge information on the effective use of questions in Selling Today. (Also see boxed insert on p. 228.) Additionally, Neil shares his insights on the changing role of salespeople in an increasingly competitive marketplace. He further emphasizes the importance of sales education in the business curriculum.

In addition to this being a “first custom-produced Neil Rackham video for a college text- book,” Selling Today was the first text to present an entire chapter on the critically important skill of using questions to partner with customers. Another first for Selling Today was an entire chapter devoted to the important process of building partnering relationships using communica- tion or behavioral style principles. This kind of relationship is important for developing the right context for the effective use of the questions Rackham advocates in his SPIN Selling research, writings, and consulting work.

d New Entrepreneurial and Inside Sales Reality Selling Videos for the 14th Edition With the rapid increase in college graduates starting careers in Entrepreneurship and Inside Sales, new Reality Selling Today Videos, with accompanying Case Problems and Role Plays, covering these important career areas were created for the 14th edition.

The new Chapter 2 Reality Selling Video features Entrepreneur Ryan Guillory, an owner/agent of an independent insurance agency. He is his company—responsible for building a successful organization that relies on developing and maintaining customer relationships, being an expert regarding both his many products and his competition, un- derstanding the needs of his clientele and partnering with them in finding and delivering value adding solutions to their buying problems. How well Ryan, a recent college graduate, executes and manages these important company functions will determine the future growth and success of his agency (see pp. 29–30 for more information).

The new Chapter 14 Reality Selling Video showcases Khalid Naziruddin, a big-ticket sales representative for a highly acclaimed luxury brand Audi automobile dealership that is “Obsessed with Service.” Khalid, a recent graduate of Texas Tech University, was tested by his company during the hiring process for intelligence and aptitude. The goal was to find the kind of individual, such as Kahlid, that is friendly, well groomed, highly trainable, and able to personalize and create value during the buying experience. Kahlid engages and partners with his clients in an attractive setting of fresh flowers, original art, an ultra clean facility, and a large

Neil Rackham Source: Michael Ahearne

Ryan Guillory Source: Michael Ahearne

Khalid Naziruddin Source: Michael Ahearne

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PREFACE xxi

inventory of high quality luxury products. His goal is to provide legendary customer service, create moments of magic, and develop a highly satisfied lifetime customer base (see p. 312 for more information).

Selling Today is the only personal selling text to bring this type of sales training support to the classroom. With these two new videos, there are now a total of 12 Reality Selling Today videos. These unique learning tools feature successful recent college gradu- ates making sales calls as they do on a daily basis in their professional personal selling ca- reers. The videotaped presentations are introduced in a chapter-opening vignette, related to the material presented in the chapter, applied with a case problem at the end of the chapter, and further used as a setting for detailed role play scenarios presented in Appendix 1. The two new videos were shot “on-site” in settings where these successful young salespeople make their sales presentations.

d Introducing CRM (Customer Relationship Management) Systems Boxed Inserts. The 14e CRM has been updated and enhanced by exposing users to a broad-based application of today’s best-selling CRM applications. The 14e introduces the use of popular CRM systems, such as Salesforce, NetSuite, Siebel, and Sugar CRM in Chapter 1 through our popular boxed inserts. Then in Chapter 2 we provide instructions for the use of a regularly updated 30-day Salesforce.com free trial, as well as access to training videos for the software. Additional CRM boxed inserts appearing throughout the text show how salespeople apply customer relationship management software to improve their partnering strategies.

Additionally, students can experience the importance of CRM Contact Reports and accompanying Notes Windows with the 20 regional accounts presented in Appendix 2, Regional Accounts Manage- ment Case Study. They soon realize the value of information entered into CRM systems as they analyze account metrics, prepare reports, and move their new accounts successfully through the sales process.

d Updated Social Media and Selling Today Boxed Inserts. Social media is playing a larger role in Selling Today. The 14e boxed inserts have been carefully updated and expanded to reflect strategies utilizing social media for selling in today’s information-driven business world.

d Latest Research and Trends from Academic Journals and Trade References. Extensive referencing of academic articles found in the Journal of Personal Selling and Sales Management, Journal of Marketing, Harvard Business Review, and others has been brought up to date. Topics and trends in selling garnered from numerous trade publications such as Selling Power, ThinkSales, Value Added 21 Selling, Sales and Marketing Management, and The American Salesperson have been integrated throughout the 14th edition.

d An updated glossary appears at the end of the book for quick reference. d Revised Set of Annotated PowerPoint Slides. These provide additional insights for presenting

important points in the text. d New Study Guides. These are added to maximize student learning when viewing both the

Reality Selling Today and Adaptive Selling Today videos. With more video support than any text on the market, these new study guides ensure in-depth student learning.

Building on Traditional Strengths Selling Today: Partnering to Create Value has been successful because the authors continue to build on strengths that have been enthusiastically praised by instructors and students. Speaking to these strengths, Selling Today has become the standard for personal-selling textbooks internationally, significantly exceeding all other textbooks in terms of worldwide sales. International editions of the book have been sold in over 30 different countries, including Canada, China, Croatia, Indonesia, the Netherlands, Mexico, and Spain. Selling Today is the premier research-backed textbook in the marketplace for personal selling.

Previous editions of Selling Today have evolved by tracing the trends in professional selling and highlighting the most critical areas for salesperson success. This edition provides new material on a number of evolving and important concepts.

1. The partnering era is described in detail. Partnership selling principles, so important to today’s successful selling and marketing strategies, are presented and clearly illustrated throughout the text. Strategic alliances—the highest form of partnering—are discussed in detail.

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2. Value-added selling strategies are presented throughout the text. Salespeople today are guided by a new principle of personal selling: Partnerships are established and maintained only when the salesperson creates customer value. Customers have fundamentally changed their expectations. They want to partner with salespeople who can create value, not just communicate it. Value creation involves a series of improvements in the sales process that enhance the customer’s experience.

3. Ethics as the Foundation of Selling Today Ethical selling is highlighted in Chapter 3, “Ethics: The Foundation for Partnering Relationships that Create Value,” as well as throughout the book. Chapter 3 addresses the many ethical lapses existing in the business world and emphasizes the need for a highly ethical interaction with customers as the starting point of all relationship development, if one is to build long-term, partnering-style selling relationships. Moreover, the ethics assessment at the end of the chapter and new text models are used to highlight an emphasis on ethical selling.

4. The NewNet Systems Regional Accounts Management Case Study. For the first time in a personal-selling textbook, students are exposed to the strategic sales-planning responsibilities associated with moving multiple accounts successfully through the sales process for a company called NewNet Systems. Appendix 2 features the challenges and responsibilities of a regional account manager selling to 20 accounts with a projected total sales of $1.8 million. Training future salespeople on these planning responsibilities is extremely important as the demand for account managers in today’s businesses is burgeoning. Moreover, a recent study suggests that account managers spend 74 percent of their time engaging in non-sales activities such as administrative tasks, traveling and waiting, and sales preparation. These figures attest to the fact that training and practicing effective management of these activities is crucial for future salespeople in today’s business context. These account management responsibilities are coded to each of the six chapters in Part 5, Developing a Presentation Strategy, a sales process unit which makes it easy for professors to assign and monitor, and excellent for in-class or online courses.

5. Popular Appendix 3 Role-Play. This revision includes an exciting luxury beachfront resort and convention center as the setting for the Partnership Role Play. A highly interactive simulated website is also included for use in student sales presentations. Selling Today is the only textbook that provides student exposure and experience to role-playing the entire consultative sales process from acquiring easy-to-learn product knowledge, initial building of sales relationships, discovering customer needs, and creating and delivering a technology-rich sales presentation. Appendix 3 is a perfect fit for both in-class or online courses. Serving as an excellent capstone experience, students develop the critical skills needed to apply relationship, product, customer, and presentation strategies.

6. Real-world examples, a hallmark of previous editions and a continued focus in this edition, build the reader’s interest in personal selling and promote an understanding of the major topics and concepts. With opening vignettes at the beginning of each chapter that put students in the shoes of the salesperson, and role-plays that allow students to utilize the skills they have learned, the real-world examples truly enrich the overall learning experience.

7. The Reality Selling Video Series features successful young salespeople, which provides real-world examples of sales careers and presentations. Additional real-selling examples have been obtained from a range of progressive organizations, large and small, such as Emeco Ltd., Whirlpool Corporation, UPS, BKM Total Office, Mutual of Omaha, Design Display, Inc., Baxter Healthcare, Marriott Hotels, and Nordstrom.

8. The Reality Selling Video Role-Plays, in addition to the role-play exercises and video case problems, remain an invaluable resource for instructors. Found in Appendix 1, each scenario gives students the chance to assume the role of a salesperson in selling scenarios that are relevant to today’s competitive environment. These role-play scenarios build on what students learned in the Reality Selling Video sales presentations and interviews. The detailed salesperson/customer role-play scenarios use the actual products and sales positions of the

Presentation Strategy

The Relationship Strategy

Ethics—The Foundation for Partnering Style Interactions that Create Value

Product Strategy

Customer Strategy

Park Shores Resort and Convention Center. Source: Courtesy of Beach Resort

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salespeople who appeared in the Reality Selling Videos. Websites of the companies the students will be using to role-play their sales presentations are supplied in order to learn appropriate amounts of product and company information. The Reality Selling Video interviews and sales presentations provide the necessary background and contextual information for students to use in both selecting the scenario and conducting the role-play. The Reality Selling Role-Plays are also specifically designed to prepare students for professional selling role-play competitions at annual college and university competitive event conventions. Refer to the following links for more information on the leading sales competitions at the college and university level:

d http://coles.kennesaw.edu/ncsc/ d www.universitysalescenteralliance.org/sales_competitions.html d https://www.deca.org/wp-content/uploads/2016/09/CGuide_2016-17_ProfSales.pdf d http://rbisaleschallenge.wpunj.edu/ d https://kelley.iu.edu/GlobalSales/students/competitions/page15657.html

9. The Professionally Produced Adaptive Selling Training Video Series is the only custom- produced video series available to accompany a textbook on selling. The four-part series is produced and directed by Arthur Bauer, a well-known and widely acclaimed award-winning training-video professional. Concepts in the text are presented based on carefully written scripts, utilization of professional actors, and are filmed in real, contemporary business settings. These high-cost, professionally produced videos available to professors who adopt the Selling Today text are also marketed and sold to sales training directors throughout the world, and are used to train their salespeople in the skills critical to success in the profession of selling.

The first video on building relationships, “Communication Styles: The Key to Adaptive Selling,” describes how to use behavioral psychology to build strong, mutually rewarding re- lationships. Designed to be shown when presenting Chapter 5, it discusses how to avoid style bias by understanding and flexing one’s style to adapt and communicate effectively with the customer’s style. A web-based style assessment exercise titled Communication Style Assess- ment at www.pearsonhighered.com is designed to discover one’s own preferred style, as well as to discover the styles of those clients in the prospect database. To access the Communication Style Assessment and share with your students, go to www.pearsonhighered.com, search for this text, click on Resources and locate the Student Resources supplement. The second video on “Questioning” presents a widely researched approach to discovering customer needs using the consultative model. Shown when covering Chapter 11, application exercises at the end of the chapter apply and enhance the development of this critical, consultative selling skill. Closely aligned with the four questions in the Spin Selling Model, professional actors show how each of these questions are effectively used in the sales process. The third Adaptive Selling Video titled “Negotiations: Solving the Tough Points,” supports the principles in Chapter 13 on negotiation. Using a medical equipment sales setting, professional negotiation strategies are dramatically presented for moving through the sometimes difficult process of answering customer concerns, moving the sale forward, and achieving a win-win solution. The fourth video titled “Ask for the Order and Get It” is built on the concepts in Chapter 14, “Adapting the Close and Confirming the Partnership.” This video is designed to visually and dramatically present the many methods for moving the sales process to a successful conclusion.

10. The following high-interest boxed inserts are updated for the 14th edition; new and interesting material regarding the role of social media selling as well as global selling has been added to the social media and global selling inserts:

d Selling Is Everyone’s Business. These real-world examples explain how selling skills affect the success of persons who do not consider themselves salespeople.

d Selling in Action. These concise inserts feature contemporary issues in selling to keep the readers of Selling Today abreast of the latest developments.

d Global Business Insight. These brief inserts provide practical tips on how to build global relationships. Each insert focuses on a different country.

d Customer Relationship Management with Technology. These application exercises help the student learn how to use technology to add value to the sales process.

d Social Media and Selling Today. Informing students how social networking applies to personal selling, these succinct inserts identify how social media networks, such as Facebook, Twitter, LinkedIn, and YouTube can be used effectively in the selling process.

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xxiv PREFACE

Organization of This Book The material in Selling Today continues to be organized around the four pillars of personal sell- ing: relationship strategy, product strategy, customer strategy, and presentation strategy. More- over, in the 14th edition, we emphasize ethical selling as an important factor within which all the four strategies should be embedded. Part 1, “Developing a Personal Selling Philosophy,” includes Chapters 1 and 2 and sets the stage for an in-depth study of these strategies. The first chapter provides a contemporary definition of selling and gives students the opportunity to explore career opportunities in the information age, while the second chapter describes the evolution of personal selling associated with the information revolution.

Research indicates that high-performance salespeople are better able to build and maintain re- lationships than are moderate performers. Part 2, “Developing a Relationship Strategy,” focuses on several important person-to-person relationship-building practices that contribute to success in personal selling. The influence of ethical selling as the foundation of successful relationships is discussed in Chapter 3. Creating value with a relationship strategy is discussed in Chapter 4. Chapter 5, “Commu- nication Styles: A Key to Adaptive Selling Today,” with its accompanying website style assessment at www.pearsonhighered.com introduces communication styles, explains how to build strong relation- ships with style flexing, and provides a web-based assessment that enables one to discover their own style and the style of others they will be working with. To access the Communication Styles: A Key to Adaptive Selling Today assessment and share with your students, go to www.pearsonhighered.com, search for this text, click on Resources and locate the Student Resources supplement.

Part 3, “Developing a Product Strategy,” examines the importance of complete and accurate product, company, and competitive knowledge in personal selling. A well-informed salesperson is in a strong position to configure value-added product solutions for a customer’s unique needs. The importance of having expert product knowledge as well as knowledge of competition and industry trends is discussed in Chapter 6, while Chapter 7 explains how to sell with a value-added strategy.

Part 4, “Developing a Customer Strategy,” presents information on why and how customers buy, and also explains how to identify prospects. With increased knowledge of the customer, salespeople are in a better position to understand a customer’s unique wants and needs and to create customer value in the multi-call, lifetime customer setting. Chapter 8 sheds light on consumer- and business-buying behav- iors, while Chapter 9 describes the strategies used to develop prospects and accounts. Appendix 2 pro- vides students the opportunity to assume a new sales position as Regional Account Manager, taking over an account base with 20 existing clients/prospects. Students assume responsibility for developing sales strategies and tactics to move these prospects through the six-step sales process presented in the text. Regional Account Management Case Study exercises at the end of Chapters 9–15 challenge students to properly apply the sales process they are studying to the their new role as a Regional Account Manager.

The concept of a salesperson as an advisor, consultant, value creator, and partner to buyers is stressed in Part 5, “Developing a Presentation Strategy.” Emphasis is placed on the need-satisfaction presentation model as well as on ways to provide outstanding service after the sale. Chapter 10 intro- duces the concept of adaptive selling as a useful strategy to approach customers. Chapter 11 explains how to identify customer needs with a consultative questioning strategy and Chapter 12 discusses the role of a consultative presentation in delivering value to the customers. The principles of formal negotiations as a part of a win-win strategy are discussed in Chapter 13, while Chapter 14 focuses on proper attitudes and strategies to close the sales. Chapter 15 finishes Part 5 by discussing the role of customer service in building sustaining, profitable relationships with the customer.

Personal selling is one of the few professions that inherently require a great deal of self-discipline. Part 6 focuses on managing self as well as others by discussing the four dimensions of opportunity management in Chapter 16 and the fundamentals of sales force management in Chapter 17.

The 14th edition features three appendices. Appendix 1, “The Reality Selling Today Role-Play and Video Scenarios,” includes 12 role-play scenarios that provide students with the opportunity to, of course, sell. Due to the rise of multiple-account management as one of the key sales roles in many organizations today, the 14e includes Appendix 2, which is devoted to a multi-chapter case study on regional account managers’ daily challenges and responsibilities.

The popular Appendix 3 allows students to integrate and apply what they have learned from this textbook in all four strategic areas of personal selling. The 14th edition features the luxury beachfront resort and convention center with an interactive simulated website for use in student sales presentations. To access additional materials for Appendix 3, go to www.pearsonhighered .com, search for this text, click on Resources and locate the Student Resources supplement.

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A Special Note to Students on How to Use the Book This 14th edition of Selling Today has several new features that distinguish it from other texts. Here we offer students of sales a few tips to make the most out of the materials presented in the new edition.

Selling is fun. That does not mean it is easy to close a deal. Each chapter in this new edition has been reorganized with the sole goal of providing you with a systematic summary of key concepts related to the topic area and ample application exercises. While there are different ways you can approach the text, we believe it is most effective to start each chapter with a concrete understanding of how the chapter fits into the big picture of selling through value creation, the overriding theme of this textbook. In this regard, we have extensively revised and updated the chapter previews, chapter summaries, key terms, review questions, and cross references among the chapters to assist you in integrating key concepts.

Practice makes perfect. We have created numerous role-play exercises that resemble real-life selling situations and applications to provide you with hands-on experience. From our experience, some students may dismiss these exercises as easy. Try one of the exercises, and you will see how these students could not be more wrong. Do not get us wrong. The exercises are not that difficult, but we do inject a great deal of reality into them to make them complex enough to provide you with the opportunity to hone your selling skills. So practice them with a friend, a family member, or in front of a video camera or mirror.

Observe, analyze, and think about your experiences with salespeople in everyday life. Use the concepts and themes you have learned from the text. Think about how those salespeople sell to you, or how you would do it differently if you were they.

We encourage you to write to us regarding your experience with this new edition.

Selling Today Supplements At www.pearsonhighered.com, instructors can access a variety of print, digital, and presentation resources available with this text in downloadable format. Registration is simple and gives you im- mediate access to new titles and new editions. As a registered faculty member, you can download resource files and receive immediate access and instructions for installing course management content on your campus server.

If you need assistance, our dedicated technical support team is ready to help with the media sup- plements that accompany this text. Visit support.pearson.com/getsupport for answers to frequently asked questions and toll-free user-support phone numbers.

The following supplements are available to adopting instructors:

d Instructor’s Manual. This downloadable Instructor’s Manual includes lecture outlines, answers to all end-of-chapter questions and case questions, detailed teaching instructions and answers for the three appendices, and additional activities and assignments for your students.

d Test Item File. This downloadable Test Item File contains over 1,200 questions, including multiple-choice, true/false, and essay-type questions. Each question is followed by the correct answer, the learning objective it ties to, the AACSB category when appropriate, the question type (concept, application, critical thinking, or synthesis), and a difficulty rating.

d PowerPoint Presentations. This downloadable deck of PowerPoint presentations includes basic outlines and key points with corresponding figures and art from each chapter. These presentations are ready to use or completely customizable for individual course needs. The notes section of each slide provides additional explanations written for your students.

d TestGen. Pearson Education’s test-generating software is PC/Mac compatible and preloaded with all of the Test Item File questions. You can manually or randomly view test questions and drag-and-drop to create a test. You can add or modify test-bank questions as needed.

d Learning Management Systems. Our TestGens are converted for use in BlackBoard, WebCT, Moodle, D2L, Angel, and Respondus. These conversions can be found on the Instructor’s Resource Center. Respondus can be downloaded by visiting www.respondus.com.

d Video Library. Pearson-lead content videos are featured within MyMarketingLab alongside four sets of text specific videos, illustrating the most important subject topics. These Selling Today videos include Adaptive Selling Today videos, Adaptive Selling Training videos, Reality Selling Today videos, and Reality Selling Today Role-Play videos.

d eBook: This title is available as an ebook and can be purchased at most ebook retailers.

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xxvi PREFACE

d Website for Appendix 3. Since its debut in previous editions, Appendix 3 has remained one of the most popular role-play supplements for any selling course. The 14th edition luxury beachfront resort and convention center role-play in this appendix provides an excellent opportunity for students to apply their understanding of the four major strate- gic areas of personal selling in a simulation of reality. In this 14th edition, this appendix is augmented with an interactive, simulated website assisting students in sales presenta- tions. This material prepares students to catch up with the new technology-rich selling techniques in the information age. To access this material to share with your students go to www.pearsonhighered.com, search for this text, click on Resources and locate the Student Resources supplement.

The Search for Wisdom in the Age of Information The search for the fundamentals of personal selling has become more difficult in the age of information. The glut of information (information explosion) threatens our ability to identify what is true, right, or lasting. The search for knowledge begins with a review of information, and wisdom is gleaned from knowledge. Books continue to be one of the best sources of wisdom as are online links and videos. We provide an excellent array of support videos for various parts such as the Reality Selling section, making the 14th edition more practical and hands-on than any other textbook in the market. Many new books, and several classics, were used as references for the 14th edition of Selling Today: Partnering to Create Value. A sample of the more than 40 books used to prepare this edition follows:

To Sell Is Human by Daniel H. Pink

Working with Emotional Intelligence by Daniel Goleman

The Tipping Point by Malcolm Gladwell

Integrity Selling for the 21st Century by Ron Willingham

The Platinum Rule by Tony Alessandra and Michael J. O’Connor

A Whole New Mind by Daniel H. Pink

Rethinking the Sales Force by Neil Rackham and John R. DeVincentis

Business Ethics by O. C. Ferrell, John Fraedrich, and Linda Ferrell

Negotiating Genius by Deepak Malhotra and Max H. Baserman

52 Sales Management Tips: The Sales Manager’s Success Guide by Steven Rosen

Blur: The Speed of Change in the Connected Economy by Stan Davis and Christopher Meyer

Close the Deal by Sam Deep and Lyle Sussman

Complete Business Etiquette Handbook by Barbara Pachter and Marjorie Brody

Effective Human Relations—Personal and Organizational Applications by Barry L. Reece and Monique Reece

Emotional Intelligence for Sales Success: Connect with Customers and Get Results by Colleen Stanley and Jill Konrath

First Impressions—What You Don’t Know About How Others See You by Ann Demarais and Valerie White

Hug Your Customers by Jack Mitchell

Insightful Selling: Learn the S.A.L.E.S. Formula to Differentiate Yourself and Create Customer Value by Adon T. Rigg

Keeping the Funnel Full by Don Thomson

LinkedIn Marketing: An Hour a Day by Viveka von Rosen

Marketing Imagination by Ted Levitt

Marketing—Real People, Real Choices by Michael R. Solomon, Greg W. Marshall, and Elnora W. Stuart.

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Megatrends by John Naisbitt

New Sales, Simplified: The Essential Handbook of Prospecting and New Business Development by Mike Weinberg and S. Anthony Iannarino

Personal Styles and Effective Performance by David W. Merrill and Roger H. Reid

Psycho-Cybernetics by Maxwell Maltz

Questions—The Answer to Sales by Duane Sparks

Re-Imagine! Business Excellence in a Disruptive Age by Tom Peters

Rules of the Hunt: Real-World Advice for Entrepreneurial and Business Success by Michael Dalton Johnson

Self Matters by Phillip C. McGraw

Selling Fearlessly: A Master Salesman’s Secrets for the One-Call-Close Salesperson by Robert Terson

Small Message, Big Impact: The Elevator Speech Effect by Terri L. Sjodin

SPIN Selling by Neil Rackham

SPIN Selling Fieldbook by Neil Rackham

Strategic Sales Presentations by Jack Malcolm

Strategic Selling by Robert B. Miller and Stephen E. Heiman

The 7 Habits of Highly Effective People by Stephen R. Covey

The Customer Revolution by Patricia Seybold

The Wow Factor by Tom Peters

The Double Win by Denis Waitley

The New Conceptual Selling by Stephen E. Heiman and Diane Sanchez

The New Professional Image by Susan Bixler and Nancy Nix-Rice

The New Solution Selling by Keith M. Eades

The Power of 5 by Harold H. Bloomfield and Robert K. Cooper

The Sedona Method by Hale Dwoskin

The Speed of Change in the Connected Economy by Stan Davis and Christopher Meyer

The Success Principles by Jack Canfield

To Sell Is Human: The Surprising Truth about Moving Others by Daniel H. Pink

Value-Added Selling by Tom Reilly

Winning the Battle for Sales: Lessons on Closing Every Deal from the World’s Greatest Military Victories by John Golden

Working with Emotional Intelligence by Daniel Goleman

Zero-Resistance Selling by Maxwell Maltz, Dan S. Kennedy, William T. Brooks, Matt Oechsli, Jeff Paul, and Pamela Yellen

Zero-Time Selling: 10 Essential Steps to Accelerate Every Company’s Sales by Andy Paul

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Acknowledgments

Many people have made contributions to the 14th edition of Selling Today: Partnering to Create Value. We are very appreciative of the creative assistance and design work Rick Giudicessi did on the new Park Shores Resort and Convention Center promotional sales tools in Appendix 3, and the design for the NewNet Systems logo. We also appreciate his work on the new hotel and convention center website, enabling users to prepare technology-rich sales tools and presentations.

We also are very grateful to Jack Linge for his original work on the Appendix 2 NewNet Systems database and Regional Accounts Management Case Study Exercises. We thank award- winning video producer Art Bauer for his creativity, dedication, and attention to detail in the production of the Adaptive Selling Training Video Series. We thank Shashank Vaid, Raguram Bommaraju, and Yashar Atefi for their help and contributions with the new 14th edition Reality Selling Video Series, Cases, and Role-Play exercises.

We would also like to thank all those who contributed to the revisions of the supplements for this edition. This includes Barbara Sue Faries, M.B.A., CEO, SciMed Partners, Inc. and Mission College for her work on the instructor’s manual, Richard A. Rocco, DePaul University for his work on the PowerPoint presentations, Magda Pecsenye for her work on the test bank, and Julie Boyles for accuracy checking this work and the MyLab content. A special thank you as well to our MyLab Contributors for this edition—Susan Carder, The W.A. Franke College of Business, Northern Arizona University; Dr Jefrey R Woodall, York College of Pennsylvania; S. Arlene Green; and Barbara Sue Faries, M.B.A., CEO, SciMed Partners, Inc. and Mission College, and thank you to Kim Norbuta for her project management!

Throughout the years the text has improved as a result of numerous helpful comments and recommendations by both students and faculty. We extend special appreciation to the following reviewers:

Kate Bailey, South Valley Bank and Trust

Jurgita Baltrusaitye, University of Illinois at Chicago

Susan Baxter, Bethune-Cookman University

Alex Birkholz, Wisconsin Indianhead Technical College

Robert Bochrath, Gateway Technical Institute

Jim Boespflug, Arapahoe Community College

Jerry Boles, Western Kentucky University

Jim Boles, Georgia State University

Jerry Bradley, Saint Joseph’s University

Duane Brickner, South Mountain Community College

Don Brumlow, St. John’s College

Jeff Bruns, Bacone College

Murray Brunton, Central Ohio Technical College

Larry P. Butts, Southwest Tennessee Community College

John C. Calhoun, State Community College, Alabama

Alan Canton, California State University, Fresno

John J. Carlisle, New Hampshire Community Technical College, Nashua

Mark Chock, Marian College

William R. Christensen, Community College of Denver (North Campus)

Patricia W. Clarke, Boston College

Cindy Claycomb, Wichita State University

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ACKNOWLEDGMENTS xxix

Gloria Cockerell, Collin College

Lori Connors, Delgado Community College

David Corbett, Ohio Valley University

Douglas A. Cords, California State University, Fresno

Robert Cosenza, The University of Mississippi

Larry Davis, Youngstown State University

Lynn Dawson, Louisiana Technical University—Ruston

De’Arno De’Armond, West Texas A&M University

Dayle Dietz, North Dakota State School of Science

Gary Donnelly, Casper College

Casey Donoho, Northern Arizona University

Robert Dunn, Cuesta Community College

Mimi Eglin, Fulton-Montgomery Community College

Susan Emens, Kent State University

Joyce Ezrow, Anne Arundel Community College

Wendal Ferguson, Richland College

Dean Flowers, Waukesha County Technical College

Stefanie Garcia, University of Central Florida

Deb Gaspard, Southeast Community College

Richard Geyer, Tiffin University

Connie Golden, Lakeland Community College

Victoria Griffis, University of South Florida

David Grypp, Milwaukee Area Technical College

Andrew Haaland, Tompkins Cortland Community College

Donald Hackett, Wichita State University

Robert Hausladen, University of Louisville

Jon Hawes, The University of Akron

Ken Hodge, Marketing Manager, Nordson

Norm Humble, Kirkwood Community College

Phil Hupfer, Elmhurst College

Kathy Illing, Greenville Technical College

Karen James, Louisiana State University, Shreveport

Mark Johlke, Bradley University

Michael Johnson, Chippewa Valley Tech College

Peter Johnson, Pace University

Richard Jones, Marshall University

Jim Kaempfer, Century College

Ali Kara, Pennsylvania State University, York

Jaciel Keltgen, Augustana College

Katy Kemp, Middle Tennessee State University

Davis King, Pennsylvania State University, Delaware County

Wesley Koch, Illinois Central College

Stephen Koernig, University of Illinois—Chicago

Bruce Kusch, Brigham Young University

Bernard Kyle, Westchester Community College

Wilburn Lane, Lambuth University

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xxx ACKNOWLEDGMENTS

James Lawson, Mississippi State University

R. Dale Lounsburg, Emporia State College

Marvin Lovett, University of Texas, Brownsville

George H. Lucas, Jr., Texas A&M University

Alice Lupinacci, University of Texas at Arlington

Jennifer Malarski, Lake Superior College

Lynnea Mallalieu, University of North Carolina—Wilmington

Jack Maroun, Herkimer County Community College

Leslie E. Martin, University of Wisconsin, Whitewater

Lee McCain, Seminole Community College

Tammy McCullough, Eastern Michigan University

Norman McElvany, Johnson State College

Kimberly McMahill, Carl Sandburg College

Bob McMahon, Appalachian State University

Robert McMurrian, University of Tampa

Darrel Millard, Kirkwood Community College

Chip Miller, Drake University

Ron Milliaman, Western Kentucky University

Irene Mittlemark, Kingsborough Community College

Rita Mix, Our Lady of the Lake University—Dallas

Russ Movritsem, Brigham Young University

Mark Mulder, Grand Rapids Junior College

Lynn Muller, University of South Dakota

Gordon Myron, Lucent Technologies

Lewis Neisner, University of Maryland

John Odell, Marketing Catalysts

Robert Owen, Texas A&M University, Texarkana

Mark Pantaleo, Pensacola Christian College

Jim Parr, Louisiana State University

Nancy Patterson, University of Arkansas Community College

Robert Perrella, Piedmont College

Ron Pimentel, California State University—Bakersfield

Richard Plank, University of Southern Florida

Ray Polchow, Zane State College

Quenton Pullman, Nashville Technical Community College

Walter Purvis, Coastal Carolina Community College

James Randall, Georgia Southern University

Adam Rapp, Kent State University

Peter Reday, Youngstown State University

Judy Reinders, Milwaukee Area Technical College

Daniel Ricica, Sinclair Community College

Richard Riesbeck, West Liberty State College

Carol Robarge, Chippewa Valley Technical College

Sandra Robertson, Thomas Nelson Community College

Mark Ryan, Hawkeye Community College

Stan Salzman, American River College

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ACKNOWLEDGMENTS xxxi

Nicholas A. Santarone, Penn State University, Abington

Gary Schirr, University of Illinois at Chicago

Donald T. Sedik, William Rainey Harper College

Rick Shannon, Western Kentucky University

C. David Shepherd, Kennesaw State University

Scott Sherwood, Metropolitan State College of Denver

Kent Sickmeyer, Kaskaskia College

Robert E. Smiley, Indiana State University, Terra Haute

C. Phillip Smith, State Community College, Alabama

Diane Smith, Henry Ford Community College

David Snyder, Canisius College

Karl Sooder, University of Central Florida

Forrest Stegelin, University of Georgia

Thomas Stevenson, University of North Carolina, Charlotte

Philip Stillitano, Stark State College

Phil Straniero, Western Michigan University

Carol Sullinger, University of Toledo

Michael Swenson, Brigham Young University

Leslie Thompson, Hutchinson Community College

Robert Thompson, Indiana State University

Ronald Tibbles, University of North Florida

Gary Tucker, Oklahoma City Community College

Sven Tuzovic, Murray State University

Rae Verity, Southern Alberta Institute of Technology

Douglas Vorhies, University of Mississippi

Donna Waldron, Manchester Community College

Jeff Walls, Indiana Tech

Joan Weiss, Bucks County Community College

Stanley “Martin” Welc, Saddleback College

Stacia Wert-Gray, University of Central Oklahoma

Scott Widmier, University of Akron

Jim Wilkinson, Stark State College

Thomas Williamson, Ohio State ATI

Raymond Wimer, Syracuse University

Susan Van Winkle, Milwaukee Area Technical College

Amy Wojciechowski, West Shore Community College

John Wolper, The University of Findlay

Andy Wood, West Virginia University

Lauren Wright, California State University, Chico

Curtis W. Youngman, Salt Lake Community College

Raymond Zagorski, University of Alaska/Kenai Penonsula College

Donald A. Zimmerman, University of Akron

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About the Authors (in alphabetical order)

Michael Ahearne University of Houston

Michael Ahearne is Professor of Marketing and C. T. Bauer Chair in Marketing at the University of Houston. He is also Executive Director of the Sales Excellence Institute (SEI). The SEI is widely recognized as the leading university-based sales institute in the world, training more than 2,000 sales students, placing Ph.D. students at top research universities and working with more than 200 major corporations annually. He earned his Ph.D. in marketing from Indiana University. He has also served on the faculty at the University of Connecticut and at Pennsylvania State University. In addition, he has lectured internationally about sales and sales management in such countries as Austria, Belgium, France, Germany, India, Italy, Russia, and Spain.

Dr. Ahearne’s research has focused primarily on improving the performance of salespeople and sales organizations. He has published over 40 articles in leading journals such as Journal of Marketing, Journal of Marketing Research, Management Science, Strategic Management Journal, Journal of Applied Psychology, and Organizational Behavior and Human Decision Processes. He was recently recognized by the American Marketing Association as one of the 20 most research-productive scholars in the field of marketing. His research has been profiled in the Wall Street Journal, Business 2.0, Business Investors Daily, Fox News, INC Magazine, and many other news outlets.

Before entering academia, Mike played professional baseball for the Montreal Expos and worked in marketing research and sales operations for Eli Lilly and PCS Healthcare. He actively consults in many industries including insurance, health care, consumer packaged goods, technology, and transportation.

Gerald L. Manning Des Moines Area Community College

Gerald Manning is an international author, consultant, speaker, and successful businessperson. Professor Manning’s book Selling Today: Partnering to Create Value, now in its 14th edition, is today’s international number-one selling textbook on negotiations and partnering. With Chinese, Spanish, International English–Speaking, Canadian, Croatian, and U.S. editions, millions have profited from the strategies and tactics presented. He is author of four additional books on management and sales, all published by large, international publishing companies.

Gerald Manning also serves as a sales and marketing consultant to senior management and owners of more than 500 businesses, including both national and international companies. He appears regularly as a speaker at national sales and management conferences, and is featured regularly in training videos on sales and management.

Professor Manning served as chair of the Marketing/Management Department of one of the leading colleges in the country for more than 30 years. In addition to his administrative duties, he has served as lead instructor in negotiations and sales. Mr. Manning received the “Outstanding Professor of the Year” award given annually by his college.

He has also applied numerous negotiation and personal selling principles and practices as owner of a very successful commercial and residential real estate investment, development, and management company.

Professor Manning’s speaking and classroom experience, along with his consulting and the management of his company, have provided him a unique opportunity to research, study, test, refine, and write about personal selling. With this background, and a long-term partnership-type relationship with acclaimed training video producer Arthur Bauer, the Adaptive Selling Training Video Series was produced.

xxxii

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ABOUT THE AUTHORS xxxiii

Barry Reece Virginia Polytechnic Institute and State University

Barry Reece is Professor Emeritus at Virginia Polytechnic Institute and State University. Prior to joining the faculty at Virginia Tech, he held faculty positions at Ellsworth Community College and the University of Northern Iowa. Over the years, he has served as visiting professor at the University of Iowa, University of Missouri, University of Nebraska, University of Colorado, and Wayne State College. He is the author or coauthor of six college textbooks that have been through a total of 41 editions since 1980.

Dr. Reece received his Ed.D. from the University of Nebraska. He has been actively involved in teaching, research, consulting, and designing training programs throughout his career. He has conducted more than 500 workshops and seminars devoted to leadership, hu- man relations, communications, sales, customer service, and small business operations. He has received the “Excellence in Teaching Award” for classroom teaching at Virginia Tech and the “Trainer of the Year Award” presented by the Valleys of Virginia Chapter of the American Society for Training and Development.

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Selling Today PARTNERING TO CREATE VALUE

F O U R T E E N T H

E D I T I O N

A01_MANN7404_14_SE_FM.indd 1 08/10/16 11:43 AM

PART1

Source: Monkey Business

Images/Shutterstock

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RELATIONSHIP STRATEGY

CUSTOMER STRATEGY

PR ES

EN TA

TI O

N ST

RA TE

G Y PRO

D U

CT STRATEG

Y

E TH

IC S

ETHICS ETHICS

PARTNERING TO CREATE

VALUE

DEVELOPING A PERSONAL SELLING PHILOSOPHY

The two chapters that make

up Part 1 establish a foun-

dation for the entire text-

book. Chapter 1 provides

a contemporary definition

and description of personal

selling and describes infor-

mation-age personal-selling

career opportunities. Sales-

training programs offered

by academic institutions,

sales-training companies,

and employer-provided

sales training are also

presented. Chapter 2, in

response to the develop-

ments associated with the

information economy, pres-

ents the evolution of con-

temporary selling models

that complement the mar-

keting concept. Chapter 2

also introduces the major

themes that connect all of

the chapters.

M01_MANN7404_14_SE_C01.indd 3 14/10/16 2:08 pm

MyMarketingLab™ Improve Your Grade!

Over 10 million students improved their results using the Pearson MyLabs. Visit mymktlab.com for simulations, tutorials, and end-of-chapter problems.

Relationship Selling Opportunities in the Information Economy

Learning Objectives

When you finish reading this

chapter, you should be able to

1.1 Define personal sell- ing and describe the three prescriptions of a personal selling philosophy

1.2 Describe the emer- gence of relationship selling in the age of information

1.3 Discuss the rewarding aspects of a career in selling today

1.4 Discuss the different employment settings in selling today

1.5 Explain how personal selling skills have become one of the master skills needed for success in the information age and how personal selling skills contribute to the work performed by knowledge workers

1.6 Identify the four major sources of sales training

Reality Selling Video—Alex Homer/Tom James Company

Job seekers who visit websites like Monster.com are usually surprised to discover that

sales careers represent one of the largest job-posting categories. The next big surprise comes

when they discover the great variety of companies that hire salespeople. Alex Homer (pictured

above) is a professional clothier for the Tom James Company (www.tomjames.com), one of

the world’s largest manufacturers and retailers of custom-made, luxury clothing. Each Tom

James client purchases directly from one of the company’s well-trained professional clothiers

who provide clients with wardrobe consultation on a variety of fashion topics such as ward-

robe coordination, current trends, proper fit, pattern and cloth selection, necessary collection

pieces, and attire for specific occasions. Tom James clothiers like Homer always come to their

clients, because appointments are conducted at the client’s location of choice.

Alex Homer discovered the Tom James Company after he placed second in the National

Collegiate Sales Competition as a student representing the University of Central Florida. Tom

James took interest in Homer, and Homer decided to learn more about Tom James by partici-

pating in ride-alongs with their existing sales representatives. He liked it and decided to accept

the job offer. Before starting to actually call on customers, Homer received training in selling,

product knowledge, and prospecting. Regarding career development, Tom James offers new

hires the necessary training to build a successful selling career regardless of their level of past

experience. They also offer opportunities for net worth building, such as profit sharing, 401(k),

and stock plans. In a recent report, 30 percent of Tom James sales professionals earned

$100,000 or more in commissions, leadership pay, bonuses, and stock dividends. d

4

Source: Michael Ahearn e

1

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http://www.tomjames.com
www.mymktlab.com
http://www.Monster.com
CHAPTER 1 • RElATionsHiP sElling oPPoRTuniTiEs in THE infoRmATion EConomy 5

Personal Selling Today—A Definition and a Philosophy Most people are aware of Arthur Miller’s very successful Pulitzer Prize–winning stage and screen- play, and its title “The Death of a Salesman.” The reality of personal selling today is that there is a “Rebirth of the Salesperson.” Between 2000 and today, when many thought the computer and Internet were causing a reduction in the need for salespeople, the number of selling jobs increased. Selling is the second-largest employment category in the United States (government jobs are the largest) and research indicates there will be two million more salespeople added to the U.S. sales force by 2020. One out of every nine people in the United States is employed in selling, a number that has remained constant for many years. According to Neil Rackham, author of the best-selling SPIN Selling and Rethinking the Sales Force, “personal selling today employs more people than any other business function—more than accounting, engineering and law put together.”1

This ratio of salespeople to the total number in the workforce is true for many devel- oped countries. In less developed countries such as China and Brazil, as their economies grow wealthier, the need for salespeople will increase substantially. One study done by McKinsey and Company projects that India’s growing pharmaceutical industry will triple its cadre of drug rep- resentatives to 300,000 by 2020.2

Personal selling occurs when a company representative interacts directly with a customer or prospective customer to present information about a product or service.3 It is a process of devel- oping relationships, discovering needs, matching the appropriate products with these needs, and communicating benefits through informing, reminding, or persuading. The term product should be broadly interpreted to encompass information, services, ideas, and issues. Increasingly, per- sonal selling is viewed as a process that adds value. In an ideal situation, the salesperson builds a mutually rewarding relationship, diagnoses the customer’s needs, and custom fits the product to meet these needs. Having knowledge of these customer needs will lead to higher customer satisfaction and willingness to purchase a product.4

Preparation for a career in personal selling begins with the development of a personal phi- losophy or set of beliefs that provides guidance. To some degree, this philosophy is like the rud- der that steers a ship. Without a rudder, the ship’s direction is unpredictable. Without a personal philosophy, the salesperson’s behavior also is unpredictable.

The development of a personal selling philosophy involves three prescriptions: adopt the marketing concept, value personal selling, and assume the role of a problem solver or partner in helping customers make informed and intelligent buying decisions (Figure 1.1). These three pre- scriptions for success in personal selling are presented here as part of the Strategic/Consultative– Selling Model. This model is expanded in future chapters to include additional strategic steps in the selling process. Chapter 2 will illustrate how the marketing concept has produced an evolving set of improvements to the sales process, moving it from peddling to value-added partnering.

Emergence of Relationship Selling in the Information Economy The restructuring of America from an industrial economy to an information economy began approximately 50 years ago (Figure 1.2). During this period, our economy began shifting from an emphasis on industrial activity to an emphasis on information processing. America was giving

1.1 Define personal selling and describe the three prescriptions of a personal selling philosophy

Strategic/Consultative Selling Model

Strategic Step

Develop a Personal Selling Philosophy

Prescription

Adopt Marketing Concept Value Personal Selling Become a Problem Solver/Partner

A V

1.2 Describe the emergence of relationship selling in the age of information

FIGURE 1.1 Today, salespeople use a strategic plan based on a personal philosophy that emphasizes adopting the marketing concept, valuing personal selling, and becoming a problem solver/ partner.

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6 PART 1 • DEVEloPing A PERsonAl sElling PHilosoPHy

way to a new society where most of us would work with information instead of producing goods.5 Today, we live in an age in which the effective exchange of information is the foundation of most economic transactions, and the implications for personal selling are profound. We will describe the four major developments that have shaped the information economy and discuss the implica- tions for personal selling.

Major Advances in Information Technology and Electronic Commerce The information age has spawned the information technology revolution. Technology as well as globalization and speed of change influence almost everything we do.6 Salespeople and other marketing-related players in today’s information age use personal computers, mobile phones, smartphones, websites, customer relationship management (CRM) applications with cloud com- puting, e-mail, instant messaging, blogging, and social media such as Facebook, YouTube, Twit- ter, and others. Frequently referred to today as Selling 2.0, these information technology tools, along with innovative sales practices, are used to create value for both the buyer and seller by im- proving the speed, collaboration, customer engagement, and accountability of the sales process.

The explosive growth of electronic commerce and other Internet activities has changed the way in which computers are used. Stan Davis, futurist and coauthor of Blur: The Speed of Change in the Connected Economy, notes that in today’s information economy we use computers less for data crunching and more for connecting. These connections involve people-to-people, company-to- customer, machine-to-machine, product-to-service, organization-to-organization, and all these in combination.7 The jobs of information-age workers depend on these connections. People who work extensively with information, such as salespeople, need these electronic connections to conduct their information gathering, information sharing, and information management responsibilities.

Strategic Resource Is Information Advances in information technology have increased the speed at which we acquire, process, and disseminate information. David Shenk, author of Data Smog: Surviving the Information Glut, notes that we have moved from a state of information scarcity to one of information overload.8 In an era of limitless data, informed salespeople can help us decide which information has value and which information should be ignored. Salespeople are the eyes and ears of today’s marketplace. They collect a wide range of product, customer, and competitive intelligence.9

Business Is Defined by Customer Relationships Michael Hammer, consultant and author of The Agenda, says the real new economy is the cus- tomer economy. As scarcity gave way to abundance, as supply exceeded demand, and as custom- ers became better informed, we have seen a power shift. Customers have taken more control of their own destinies.10

On the surface, the major focus of the age of information seems to be the accumulation of more and more information and the never-ending search for new forms of information tech- nology. It’s easy to overlook the importance of the human element. Humans, not computers, have the ability to think, feel, and create ideas. It is no coincidence that relationship selling and relationship marketing, which emphasize long-term, mutually satisfying buyer–seller partnering

Industrial Economy 1860–1960

Information Economy 1960–2020

• Major advances occur in manufacturing and transportation • Strategic resources are capital and natural resources • Business is defined by its products and factories • Sales success depends on meeting sales quotas

• Major advances occur in information technology • Strategic resource is information • Business is defined by customer relationships • Sales success depends on adding value

INCRE ASES

IN RE LATIO

NSHIP SELL

ING A ND RE

LATIO NSHIP

MAR KETIN

G

FIGURE 1.2 The age of information has greatly influenced personal selling. Today, salespeople use a variety of information technology tools to gather and process information of value to the customer. They recognize that information is a strategic resource and relationship skills are needed to build a conduit of trust for information acceptance.

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CHAPTER 1 • RElATionsHiP sElling oPPoRTuniTiEs in THE infoRmATion EConomy 7

relationships, began to gain support at the beginning of the information age. Companies such as DuPont, Kraft Foods, and General Electric have adopted a philosophy that focuses on customer satisfaction, team selling, and relationship selling.12

Sales Success Depends on Creating and Adding Value Value-added selling can be defined as a series of creative improvements within the sales process that enhance the customer experience. Salespeople can create value by developing a quality rela- tionship, carefully identifying the customer needs, and then configuring and presenting the best possible product solution. Value is also created when the salesperson provides excellent service after the sale. Neil Rackham, author of Rethinking the Sales Force, and other experts in sales and marketing say that success no longer depends on merely communicating the value of products and services. Success in personal selling rests on the critical ability to create value for customers.

The value added by salespeople today is increasingly derived from intangibles such as the qual- ity of the advice offered and the level of trust that underlies the relationship between the customer and the salesperson. The value of these intangibles can erode with shocking speed when the customer feels deceived or discovers that the competition is able to add more value to the sales process.13

Considerations for a Future in Personal Selling Job seekers who visit Monster.com or Careerbuilder.com are usually surprised to discover that sales careers represent one of the largest job-posting categories. Many thousands of entry-level sales positions are listed every day. The next big surprise comes when they discover the great variety of companies that hire salespeople. Some companies, such as Marriott and United Parcel Service (UPS), are well known throughout the nation. Other companies, such as SpeechPhone, LLC (www.speechphone.net), and World Golf Hospitality, Inc. (www.worldgolf.com), may be unfamiliar to the job seeker. SpeechPhone, LLC, sells call-forwarding, message retrieval, and other phone services. World Golf Hospitality, Inc., plans corporate-travel events and meetings that typically involve golf. The company has created travel programs for major events including the Masters, the Ryder Cup, and the U.S. Open tournaments.14

From a personal and economic standpoint, selling can be a rewarding career. Careers in sell- ing offer financial rewards, recognition, security, and opportunities for advancement to a degree that is unique, when compared with other occupations.

SOCIAL MEDIA AND SELL ING TODAY

Creating Customer Value with Social Media Popular business strategies such as “Selling Is a Contact Sport” and “Speed Is Life” describe the value of social media in the selling pro- cess. Being immediately available to a customer is essential to a salesperson’s success for many reasons, including providing infor- mation at the moment the customer needs it, responding to a cus- tomer’s relationship-building contact, and obtaining and following up on leads. Instant outreach to one or more customers is also criti- cal for high-performing salespeople. This instant contact capabil- ity empowers salespeople to quickly send notices of price changes, product modifications, product operation tips, service alerts, web- site updates, and invitations to business and social events.

Advances in communication technology enhance the value of salesperson availability and outreach by dramatically reducing the time required for salesperson and customer interactions. Among these advances is the category generally referred to as “social me- dia.” Facebook, Twitter, LinkedIn, YouTube, Whatsapp and smart- phones are frequently identified as key components of this category.

Facebook can be used by a salesperson to expand his or her personal information that may be found on the company’s web- site. Products or services are also found on Facebook, allowing

customers and others to learn about and discuss a salesperson’s offerings. LinkedIn allows registered users to maintain a list of con- tact details of people they know and trust in business. Social media may also be put to use for instant messaging (Twitter, Whatsapp etc.), live streaming (Periscope, Blab etc.), image sharing (Snap- chat), communication with B2B customers (Slack), etc. Other ways to streamline content is by letting customers, especially influencers, know that they have been mentioned in the content that has been created (Notifier helps connect with influencers), while apps such as Quuu.co and Crate help find and build curated content. Social media image creation tools such as Pablo 2.0 are particularly help- ful for image management apps such as Pinterest and Instagram. Smartphones and similar mobile devices allow communications to include still and moving images designed to improve recipients’ understanding and acceptance of the accompanying messages.

High-performing salespeople and their organizations are well advised to carefully study the continuous advances in communica- tion technologies and rapidly adopt the advantages they offer.11 Playing the serious “sport” of customer contact at the fastest pos- sible speed is now a critical necessity in a salesperson’s life.

1.3 Discuss the rewarding aspects of a career in selling today

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http://www.speechphone.net
http://www.worldgolf.com
www.Monster.com
www.Careerbuilder.com
8 PART 1 • DEVEloPing A PERsonAl sElling PHilosoPHy

Wide Range of Employment Opportunities The 500 largest sales forces in America employ more than 24 million salespeople.15 These com- panies will seek to recruit 500,000 college graduates. A large number of additional salespeople are employed by smaller companies. In addition, the number of new sales positions is consistently increasing and sales positions commonly rank among the jobs considered most in demand.16 A close examination of these positions reveals that there is no single “selling” occupation. Our labor force includes hundreds of different selling careers and, chances are, there are positions that match your interests, talents, and ambitions. The diversity within selling becomes apparent as you study the career options discussed in this chapter.

Although two-thirds of college graduates take jobs as salespeople,17 often it’s not their first career choice. Students tend to view sales as dynamic and active, but believe a selling career requires them to engage in deceitful or dishonest practices. The good news is that old stereotypes about sales are gradually going by the wayside. Students who study the careers of highly successful relationship salespeople discover that ethical sales practices represent the key to long-term success.

Activities Performed by Salespeople A professional selling position encompasses a wide range of tasks and, therefore, salespeople must possess a variety of skills. Figure 1.3 provides important insight about how many outside salespeople spend their time on the job. Note the time spent on administrative tasks, servicing, and telephoning. This, along with face-to-face selling and traveling time, provides a large amount of variety for sales- people. In some selling positions, such as retail selling, more time may be spent in face-to-face selling.

A salesperson representing Federal Express (FedEx) makes numerous sales calls each day in an attempt to establish new accounts and provide service to established accounts. A wide range of potential customers can use FedEx delivery services. A salesperson working for a Caterpillar

!

What Sales Reps Do with Their Time . . .

26% in face-to-face sales

Sales is the lifeblood of any business. According to 2008 Yankee Group research study titled “Mobile CRM Tipping Point Finally Arrives,” sales representatives spend their time on the following activities:

• Face-to-face selling 26% • Sales prep 16% • Administrative tasks 26% • Travel and waiting 32%

74% in sales prep, travel, waiting, and administrative tasks

FIGURE 1.3 How Salespeople Spend Their Time A professional selling position encompasses a wide range of tasks and, therefore, salespeople must possess a variety of skills.

Source: Data from Sybase Inc., www.sybase.com/files/Thankyou_Pages/Sybase_Mobile_Solutions_for_SAP_Sales_Reps_print.pdf (accessed June 21, 2010).

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http://www.sybase.com/files/Thankyou_Pages/Sybase_Mobile_Solutions_for_SAP_Sales_Reps_print.pdf
CHAPTER 1 • RElATionsHiP sElling oPPoRTuniTiEs in THE infoRmATion EConomy 9

construction equipment dealer may make only two or three sales calls per day. The products offered by the dealer are expensive and are not purchased frequently.

Freedom to Manage One’s Own Time and Activities Because of the wide range of activities, most selling positions allow salespeople to be in control of how they use their time, decide what activities they will prioritize in their work schedules, and interact with a wide range of people. This is in contrast to many careers where one is confined to a particular location and team of people, assigned very specific tasks, and directly supervised by others. This freedom to plan activities and prioritize the use of time, not unlike that of an entre- preneur, is high on the list of why many successful people have chosen sales as a career.

However, the ability to manage one’s time, set priorities, and execute successfully on these priorities is critical to success in selling. More on this subject of opportunity management will be presented in Chapter 16.

Titles Used in Selling Today Just as selling occupations differ, so do the titles by which salespeople are known. Many of these titles and careers are represented in the careers described in the Reality Selling Videos presented throughout the book. A survey of current job announcements indicates that companies are us- ing such titles as these (the abbreviations shown are commonly used by salespeople with these titles):

Account Executive (AE) Sales Consultant Account Representative Business Development Representative (BDR) Account Manager Sales Associate Relationship Manager Marketing Representative District Representative Territory Manager Marketing Partner Channel Partner Regional Accounts Manager (RAM) National Accounts Manager (NAM) Key Accounts Manager (KAM) Global Accounts Manager (GAM) Strategic Accounts Manager (SAM) Account Development Representative (ADR)

Two factors have contributed to the creation of new titles. First, we have seen a shift from “selling” to “consulting” and “partnering.” When salespeople assume a consulting or partnering role, the value of the relationship often exceeds the value of the transaction. Second, the new titles reflect a difference in education and skill sets needed for the position.18 Both of these fac- tors, along with the newer definition and philosophy of selling noted earlier in this chapter, have brought about the increasing use of the title “Account Manager” to describe the responsibilities of today’s sales personnel. The account manager’s role in creating and adding value has resulted in the Bureau of Labor Statistics projecting the Strategic Account Manager field as one of the fastest growing in the management, scientific, and technology industry. The bureau recently projected an 83 percent increase in employment in this field by the year 2018. It is important to recognize, however, that there is still a large number of individuals employed in selling who prefer, and are proud, to be called “salespeople.”

Salespeople, regardless of title, play an important role in sustaining the growth and prof- itability of organizations of all sizes. They also support the employment of many nonselling employees.

Above-Average Income Studies dealing with incomes in the business community indicate that salespeople earn signifi- cantly higher incomes than most other workers. Some salespeople actually earn more than their sales managers and other executives within the organization. In fact, a successful career in sales and sales management can result in earnings similar to doctors, lawyers, and chief executives. 19, 20 U.S. companies spend more than $800 billion on sales force compensation each year—three times what they spend on advertising.21 This high level of compensation (whether from base salary, bonus, or incentives) is justified for good performance. Table 1.1 provides a summary of a recent compensation survey by the Sales Account Management Association. Executive and sales force compensation continues to climb despite uncertain economic conditions.22

In recent years, we have seen new ways to report compensation for salespeople. The Hay Group, working with C&C Market Research, developed a reporting method that tracks earnings

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for different types of sales approaches. Research indicates that salespeople involved in transac- tional sales, which generally focus on selling products at the lowest price, also earned the lowest compensation.

Sales personnel involved in value-added sales earned the highest level of compensation. These highly paid salespeople created improvements and, therefore, value in the sales process that enhanced the customer experience.23

Above-Average Psychic Income Two major psychological needs common to all people are recognition and security. Psychic income, which consists of factors that provide psychological rewards, helps satisfy these important needs and motivates persons to achieve higher levels of performance. The need for recognition has been established in numerous studies that have examined human motivation. Workers from all employ- ment areas indicate that recognition for work well done is an important morale-building factor.

In selling, recognition occurs more frequently and with greater intensity than it does in most other occupations. Because selling contributes so visibly to the success of most business firms, the accomplishments of sales personnel seldom go unrecognized. Most people want to achieve some measure of security in their work. Selling is one of those occupations that usually provide job security during both good and bad times.

Opportunity for Advancement Each year, thousands of openings appear in the ranks of supervision and management. Because salespeople work in positions of high visibility, they are in an excellent position to be chosen for advancement to positions of greater responsibility. The top executives of many of today’s com- panies began their careers in the ranks of the sales force. As noted in a business article written by Theodore B. Kinni, “Today’s C-suites are literally bursting with sales professionals.”24

Of course, not all salespeople can become presidents of large corporations, but in the middle- management ranks there are numerous interesting and high-paying positions in which experience in selling is a prime requisite for advancement. Information on careers in sales management is presented in Chapter 17.

Opportunities for Women Prodded by a growing awareness that gender is not a barrier to success in selling, business firms are recruiting qualified women in growing numbers. The percentage of women in the sales force has increased considerably. In fact, in sales and related occupations, women comprise approximately 50 percent of the workforce.25 Although women are still relative newcomers to industrial sales, they have enjoyed expanded career opportunities in such areas as real estate, insurance, advertising ser- vices, investments, and travel services. A growing number of women are turning to sales employ- ment because it offers excellent economic rewards26 and, in many cases, a flexible work schedule. Flexible schedules are very appealing to women who want to balance career and family.

At Pitney Bowes, the nation’s largest provider of corporate mail services, about 24 percent of the top employees are women. Many of the top salespeople are women who were formerly teachers.27 Nationally, about 20 percent of all financial advisers are women.28

loW PERfoRmERs

AVERAgE PERfoRmERs

ToP PERfoRmERs

Salespeople $57,403 $ 73,213 $101,629

Sales Managers $68,887 $ 84,525 $111,922

Strategic Account Managers $99,133 $121,246 $161,627

TABLE 1.1 Sales Force Compensation

Source: Ahearne, Michael, Jeffrey Boichuk, Craig Chapman, and Thomas Steenburgh, “The 2012 Earnings Management Practices in Sales and Strategic Accounts Survey,” Strategic Account Management Association, April 2012, p. 43.

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In recent years, the labor market has become a place of churning dislocation caused by the heavy volume of mergers, acquisitions, business closings, bankruptcies, and downsizings. Personal-selling careers, as well as those career areas that value selling skills, have become attractive employment options to the thousands of professionals who walk away from—or are pushed out of—corporate jobs.

Employment Settings in Selling Today Careers in sales include both inside and outside sales positions. Inside salespeople are those who perform selling activities at the employer’s location, typically using the telephone and e-mail. Many manufacturers and wholesalers have developed inside sales forces to take orders, make calls on customers, and provide support for field salespeople. In some cases, the inside salespeople are called customer service representatives (CSRs) and provide a number of support services on behalf of field salespeople.

Inside sales can be either “inbound” or “outbound.” Inbound inside salespeople respond to calls initiated by the customer. For more insight on outside sales, see Appendix 2: The NewNet Systems Regional Accounts Management Case Study. Telemarketing is a common form of out- bound inside sales that serves several purposes, including sales and service. In some cases, this includes technical support personnel who provide technical information and answer questions. Some companies utilize sales assistants to confirm appointments, conduct credit checks, and follow up on deliveries.29 The use of telemarketing, websites, and the Internet has grown rapidly as businesses use these methods to contact potential new customers and to follow up on current customers or customers in distant areas.

Unlike inside sales, outside salespeople travel to meet prospects and customers in their places of business or residence. Information technology companies like Hewlett-Packard employ thousands of salespeople to sell computer systems, peripherals, and integrated technology solutions to other companies, large and small. Wholesalers, like Super Value, employ outside salespeople who, in addition to selling products, offer a variety of services to their customers, such as maintaining inventories, merchandising, providing promotional support, gathering and

SELL ING IN ACTION

Opportunities for Women in Sales In a world that is beginning to value diversity, we are seeing growing opportunities for women in sales. However, some misinformation concerning women in sales still exists. Four common myths follow:

Myth: Women will not relocate or stick around long enough to repay the firm’s hiring and training expenses. Today, working women make up nearly half of the workforce and they have made significant gains in a wide range of traditionally male- dominated areas. About 50 percent of the working women contribute more than half of their family’s income. Most of the women in this group, who also outnumber male students in many business schools today, need to work, want to work, and seek rewarding career opportunities.

Myth: Women earn significantly less in sales than their male counterparts. Although a pay gap between men and women exists in the field of sales, it is relatively small compared with the earnings gap for women who work full time in the work- force as a whole.

Myth: Buyers are less accepting of female salespeople. In the field of personal selling, perceived expertise, likability, and trustworthiness can have a major influence on purchase deci- sions. Women who project these qualities seldom face rejec- tion based on gender.

Myth: Women face special problems when assigned to sell- ing positions in foreign countries. The truth is that recent research suggests that businesswomen often enjoy a signifi- cant edge over their male counterparts when given overseas assignments.a

1.4 Discuss the different employment settings in selling today

Source: racorn/Shutterstock

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interpreting market information, extending credit, and distributing goods. In addition, many direct-to-consumer salespeople, such as interior designers, engage at least partially in outside sales; for example, financial services, life insurance, or direct sales.

Inside and outside salespeople for the same company often work together and rely heavily upon each other. For example, inside salespeople often prospect, generating and qualifying leads for outside salespeople to call on personally. Also, once an initial sale is made by an outside sales- person, inside salespeople are asked to provide ongoing customer contact and service, taking responsibility for meeting customer needs while being alert for opportunities to sell additional products or services.

Selling through Channels Many times, people mistakenly think of selling jobs as being limited to the interaction between the company and the end user of the good or service. However, goods and services flow from manufacturer to end user through a “channel of distribution.”

As can be seen in Figure 1.4, sales jobs exist throughout this supply chain.30 In fact, many of the most promising sales careers in terms of career advancement and compensation exist at the beginning of the channel flow in the form of business-to-business, or “B2B,” sales. Trade selling refers to the sale of a product or service to another member of the supply chain. For example, a manufacturer of household goods may employ sales representatives to sell his or her products to retailers. The manufacturer may instead (or also) sell the products to wholesalers who ware- house the product; in turn, the wholesaler employs sales representatives to sell these and other products to retailers whom the manufacturer does not want to service directly. In the latter part of the channel flow, we find retail salespeople and, in some cases, service salespeople selling to consumers. This is often referred to as “business-to-consumer,” or “B2C” sales. As you can see, selling careers may be classified in several ways.

Similar scenarios exist with industrial products where the end user is a business rather than an individual consumer, and with services where the end user is either a consumer or business user. Another example of B2B sales is missionary, or detail, sales. Rather than selling directly to the end user, the missionary salesperson attempts to generate goodwill and stimulate demand for the manufacturer’s product among channel members.

Career Opportunities in the Service Channel Sales careers in service sales include both business-to-business and business-to-consumer sales. Today, approximately 80 percent of the U.S. labor force is employed in some capacity in the service sector of the economy. The growth rate for the service industry is much higher than the growth rate for product companies. Service companies provide career opportunities in a variety of settings.

HOTEL, MOTEL, AND CONVENTION CENTER SERVICES Every year in the United States, thousands of seminars, conferences, weddings, and business meetings take place in hotels, motels, and convention centers. According to the JW Marriott chain, the MICE market (meetings, incentives, conferences, and exhibitions) is worth about $106 billion in sales revenue.31 The salespeople employed by these companies, often referred to as account managers, sales managers, or account executives, play important roles in attracting clients to utilize these facilities. Salespeople build relationships; carefully analyze needs; configure solutions; often upgrade services to sell room space, food, beverages, and entertainment; and can offer services to create an attractive atmosphere for potential clients. (For more insight into personal selling opportunities in the MICE market, refer to Appendix 3, Partnership Selling: A Role-Play.)

Typical of the salespeople employed in this service sector is Brian Moon, sales manager of the Renaissance Indian Wells Resort and Spa located in Indian Wells, California. This resort is a world-class facility located in the desert and includes exquisite swimming pools. 32 When Brian and his sales force encounter resistance from a client, they work diligently to identify the sources of the resistance, clarify the issues, and resolve the problems so as to consummate the sale. In the selling of hotel and convention center sales, as well as a number of the other types of service sell- ing, salespeople may be involved in both B2B and B2C selling, depending upon whether they are selling to a business or to an individual. Buying motives and selling strategies described in later chapters will vary considerably depending upon whether the sale is B2B or B2C.

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TELECOMMUNICATIONS SERVICES The deregulation of telephone service resulted in the fragmentation of major telephone companies and the creation of numerous new communications companies. This has led to an increased need for telecommunications salespeople. These individuals must have a thorough knowledge of their system and a good understanding of competing telecommunications systems.

FINANCIAL SERVICES Today there are more than one million sales jobs in the securities and financial service field and employment continues to increase. Banks, credit unions, brokerage

1. Services Channel

Service Provider Services

Salesperson

Consumer or Business User

3. Consumer Channels

Manufacturer Direct

Salesperson

Consumer

ConsumerManufacturer Retailer

Manufacturer Distributor Retailer Consumer

Retail Salesperson

Retail Salesperson

Trade Salesperson

Trade Salesperson

Trade Salesperson

2. Business-to-Business Channels

Manufacturer Industrial Salesperson

Industrial Customer

Industrial Customer

Distributor Salesperson

Manufacturer Distributor

Missionary Salesperson

Trade Salesperson

FIGURE 1.4 Shown here are salespeople in different channels.

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firms, and other businesses continue to expand, branch out, and diversify, selling a broader range of financial planning and investment services. Brad Duffy, financial service wholesaler for Riversource Investments, educates and advises financial advisors for American Express on new and existing products offered by his company.33

MEDIA SALES Revenue from both local and national advertising supports the radio, television, newspaper, and magazine industries and is also a major source of profit for the Internet. Each of these media forms must sell advertising to remain in business. In fact, newspapers and magazines generate far more revenue from the sales of advertising than from subscriptions. Amy Vandaveer, a sales representative featured in Chapter 6, sells advertising space for Texas Monthly. The wide variety of client needs and the task of meeting these needs make the work of media sales representatives interesting. Additionally, the requirement for the members of the media sales staff to develop or to help the client develop commercials makes this work very interesting.

REAL ESTATE The purchase of a home is usually the single-largest expenditure in the average person’s lifetime. The purchase of commercial property by individual investors or business firms also represents a major economic decision. Therefore, the 800,000 people who sell real estate assume an important responsibility.

Busy real estate salespeople often hire sales associates to conduct open houses or to perform other tasks. Real estate salespeople must obtain listings, advertise the properties, conduct visits by potential clients, and sell properties. Susana Rosas, a sales representative for CBRE featured in Chapter 4, stresses the need to create relationships with her clients.34 Honesty is essential in establishing and maintaining good relationships. Susana believes that if the experience is good for the client it will result in referrals to friends and members of the family, providing additional clients.

INSURANCE Selling insurance has often been a very rewarding career in sales. The types of insurance sold include fire, liability, health, automobile, casualty, homeowner, and business. There are two general types of insurance salespeople. One type consists of salespeople employed by major insurance companies such as Allstate, Farmers, Prudential, Travelers, State Farm, Geico, Hartford, and Mutual of Omaha. Salespeople for these companies sell both personal and commercial lines; however, all their product solutions are offered exclusively by their company. Ryan Guillory, whom we introduce in Chapter 2, is an excellent example of this type of salesperson who sells various insurance products but only for his company, The Woodlands Financial Group (TWFG). The second type consists of independent insurance agents who represent a number of various companies. The typical independent agency sells a very broad line of personal and commercial insurance services, offered by many companies.

BUSINESS SERVICES The great number of new businesses and the expansion of existing businesses have resulted in an increase in the demand for business services provided by outside contractors. Some of the services provided by outside contractors include computer programming, training, printing, credit reporting, payroll and accounting, payment processing, recruiting, transportation, and security. Many other sales careers involving the sale of services exist. This field is increasing at a rapid pace and sales positions become available in service sales every day.

Career Opportunities in the Business Goods Channel Manufacturers employ sales and sales-support personnel in a variety of different positions in outside and inside sales. Outside salespeople interact with potential customers on a face-to-face basis. Some of the categories of outside salespeople include field salespeople, sales or application engineers, and missionary salespeople. Inside salespeople include customer service representa- tives (CSRs), who rely primarily on the telephone and the Internet to communicate with custom- ers, to identify new prospects, and to carry out other sales activities.

INDUSTRIAL SALESPEOPLE Industrial salespeople include both technical salespeople (sales engineers or application engineers) and nontechnical salespeople. Sales engineers or technical salespeople sell heavy equipment, machinery, chemical products, aircraft, complex electronic equipment, and military equipment. Such salespeople must have a good technical understanding of their products and customer needs. Nontechnical salespeople generally sell office equipment; disposable goods such as adhesives, cleaners, and packaging; and office supplies.

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SALES ENGINEER OR APPLICATIONS ENGINEER Sales or applications engineers must possess a detailed and thorough technical knowledge of their products as well as competing products. These salespeople must be able to identify and analyze customer problems and develop solutions that meet the customer’s needs. These sales engineers must be technically proficient in all aspects of their products and in communicating the merits and advantages of the products to the customer.

Steve Tice, president of Sim Graphics Engineering Corporation, and Steve Glenn, vice president for new business development, are the primary sales engineers for the corporation.35 Sim Graphics develops automated graphic simulation systems for use in industries, hospitals, and educational institutions. Their company utilizes customized demonstration presentations for potential customers. Many potential customers fail to understand the complexity of the systems, so demonstrations are needed to show what actually is available. On some occasions, it is necessary to build and demonstrate a prototype or to make a full-blown presentation. Customers who do not understand the product will be reluctant to purchase something they don’t comprehend.

FIELD SALESPEOPLE Field salespeople interact with new customers and current customers. They must be able to identify customer needs and requirements and to recommend the proper product or service to meet the customer’s needs. Field salespeople who provide excellent service to their customers often receive information from their satisfied customers on new leads. These customers often provide recommendations to other potential customers for the field salesperson.

Betty Robertson, president of Lyncole Industries, is also the field sales representative for her company. Lyncole sells piping and associated supplies to contractors. Robertson states that follow- ing up on the installation of the equipment is very important. The contractors she sells to are poten- tial repeat customers; it is essential to follow up and make certain that the customer is satisfied.36

Missionary salespeople, also known as “detail salespeople,” serve to develop goodwill, provide information, and stimulate demand for the manufacturer’s products. A missionary sales- person does not sell the product but receives recognition for increasing the sale of products indi- rectly. Missionary salespeople must be able to provide technical product information and offer sound advice in areas including credit policies, pricing, display, layout, and storage.

Deborah Karish, a sales representative for Amgen, stresses relationship selling in her work with medical facilities while selling to both medical staff and physicians. She had to learn the technology of her products, how they were manufactured, and how the medicines could be uti- lized most effectively in treating patients. She went through a pairing program with physicians to learn how the products are used. Karish knows it is necessary to establish good relationships with the medical staff. Failing to establish good relationships generally means that the people will not work with the salesperson.

Career Opportunities in the Consumer Goods Channel Sales careers in the consumer goods channel, referred to earlier as “B2C” selling, include both retail-selling and direct-selling careers. Conventional retailers face increased competition from online retailers. Consumers spend billions of dollars on Internet purchases. Traditional retailers are forced to offer customers more than products in order to compete effectively against online sellers. Well-trained salespeople can add value to the traditional shopping experience.

RETAIL SELLING A large number of salespeople work in retail. Retail selling is probably an excellent area for gaining initial sales experience. Retail-selling careers abound in a number of product areas.

GLOBAL BUSINESS INS IGHT

What Motivates Salespeople? A recent study of more than 40,000 salespeople worldwide reported that 36 percent of U.S. salespeople and 33 percent of the salespeople in the United Kingdom say they work primarily to earn substantial incomes. The same statistic for New Zealand and Nor- way peers was only 9 percent and 11 percent, respectively. Unlike

their counterparts in other countries who considered sales a tem- porary step to being promoted to management, successful U.S. salespeople preferred to make more money in sales rather than be promoted into management.b

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Asbury Automotive Group employs 1,440 sales personnel. These salespeople take pride in their work and are rewarded with a promising career. Many of the sales personnel were recruited at college and university job fairs. Some work as management trainees, selling cars for 8 to 15 months, making $45,000 to $60,000 per year in salary plus bonus. Then they are trained and certified to work in the finance and insurance department. Next, some are promoted to new- or used-car manager, earning $100,000 to $150,000 per year. The final promotion opportunity is general manager of the dealership.37

Mike Patterson, the owner of MP Yacht Services, provides specialized electrical repairs and installations for boats. His easy sales approach and high technical performance have attracted a large group of repeat customers to whom he offers electrical services that competitors are unable to provide. Patterson firmly believes that one should never bad-mouth a competitor, and his phi- losophy has resulted in competitors referring customers to MP Yacht Services.38

The sales staff at Julian’s in Chapel Hill, North Carolina, take pride in their work. This family- owned business, founded in 1942, is located near the University of North Carolina (UNC). The store sells custom-order clothing to UNC alumni who live all over the South. Some buy private- label suits created by the founder’s son, Alexander Julian, who is a noted fashion designer.39

Direct salespeople are independent contractors who generally represent manufactur- ers. In 2014, Direct Selling News reported there are 18.2 million direct salespeople in the United States and 78.2 million outside this country.40 The top 15 countries each have more than $1 billion in direct sales revenue and are a combination of old and new markets. Together they account for $90.8 billion in annual revenues for the world’s direct-selling companies, which translates to almost 90 percent of the industry’s global sales. The United States is number one with $29.6 billion in revenues, Japan is a close second with $27 billion, and Korea is number three with $8 billion. According to Neil Offen, past-president of U.S. Direct Selling Associa- tion, the international growth rate of direct selling is exceeding domestic growth.

A rapidly growing form of direct sales is network (or multilevel) marketing. The three largest U.S.-based firms in direct marketing are Amway, Avon, and Mary Kay with $2.2 billion in sales

A well-trained retail salesperson can add significant value to the retail buying experience. Trainees after working 8 to 15 months for the Asbury Automotive Group earn between $45,000 and $60,000 per year in salary plus bonus. Significant management opportunities also exist for those who create value in the partnership selling process.

Source: goodluz/Fotolia

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and 1.1 million salespeople.41 In this form of distribution, manufacturers eschew advertising and other trade/promotional spending, relying instead on a large network of independent consultants or distributors to sell the product or service directly to consumers or businesses. The independent consultant builds his or her business not only through the direct sales of the product or service to consumers, but also by sponsoring new consultants to sell the company’s products or services. The sponsoring consultant then earns commissions on the product/service sales generated by the new consultant, in addition to what he or she personally sells. The number of levels on which a consultant is paid varies by company, but the benefit to the consultant is the ability to leverage his or her own efforts plus those of other consultants in his or her “downline.” These types of organi- zations are highly reliant on socialization, communication, and cooperation between consultants for successful sales results.42

Selling Skills—One of the “Master Skills for Success” in the Information Age In his best-selling book Megatrends, John Naisbitt noted “the game of life in the information age is people interacting with other people.”43 With its emphasis on effective and adaptive interpersonal interaction, selling has become one of the “master skills for success in the information economy.”

A study reported in Daniel Pink’s To Sell Is Human makes a similar observation concerning what he calls the rise of “nonsales selling.” He reports in his statistically correct sample of 7,000 individuals in the workforce:

1. People are now spending about 40 percent of their time at work engaged in nonsales selling—persuading, influencing, and convincing others in ways that don’t involve anyone making a purchase.

INTRODUCING CRM (CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS)

Learning about CRM Systems—Salesforce, NetSuite, Siebel, Sugar CRM, SalesLogic, etc.

Many technology tools are available to today’s salespeople and mar- keting personnel because there is so much information to manage. There is one category of software specifically designed for a sales- person’s responsibilities. Customer relationship management (CRM), sometimes referred to as “sales automation,” is software that records in one place the extensive information necessary to understand a customer and their needs and expectations. This type of software is becoming essential because it can be used to capture and rapidly display the information needed to work toward assuring the satisfaction of many customers at the same time. In addition to providing the basic data about a company and its products, CRM software offers information needed to build partnering relation- ships and add value throughout the sales process.

CRM enables its user to easily sort and store information so it can be quickly retrieved to enhance each customer contact. When a conversation is social, at a salesperson’s fingertips is the name of a customer’s spouse. One can be quickly reminded of a buyer’s favorites when arranging lunch or golf. Product delivery and credit preferences are available in case the topics are raised in an e-mail. CRM keeps a salesperson intimately involved in a sale by identifying the customer’s stage in the sales process, reminding the salesperson about tasks and due dates to move the sale along, keeping track of all previous steps in the process and information shared, and displaying personal information recorded about those involved in a purchase in order to improve relationships with them.

CRM has gone mobile. CRM mobile apps—predictive and less hierarchical in a big way—interact with map, image, content, and note-taking apps. The focus is on management of real-time data as salespeople lean towards showing demos, analytics, and dash- boards on mobile phones and towards integration of information across platforms focused on sales automation, analytics software, and sales accounting system. As the sales profession becomes even more specialized and industry focused, we should also expect more vertical CRMs that focus on industry-specific CRM solutions. Examples include Veeva, which focuses on pharma and healthcare; Vlocity, which focuses on communications, media and insurance; and OpenGov, which focuses on public sector.

Leading CRM software company websites include www .Salesforce.com, www.NetSuite.com, www.SugarCRM.com, www .SalesLogic.com, and www.Siebel.com. Each of these companies supplies training videos and, in some cases, free trial demos. Their training videos can also be accessed on YouTube. To learn about these companies, and to access their videos and free trials, click on their website. In Chapter 2, you will be provided instructions for signing up and accessing a free trial and videos for the Salesforce .com CRM Software. You will learn in future chapters how CRM enhances the effectiveness of high-performing salespeople in their efforts to establish relationships, partner with, and meet and exceed their customers’ needs and expectations.

1.5 Explain how personal selling skills have become one of the master skills needed for success in the information age and how personal selling skills contribute to the work performed by knowledge workers

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http://www.NetSuite.com
http://www.SugarCRM.com
http://www.Siebel.com
www.Salesforce.com
www.Salesforce.com
www.SalesLogic.com
www.SalesLogic.com
www.Salesforce.com
www.Salesforce.com
18 PART 1 • DEVEloPing A PERsonAl sElling PHilosoPHy

2. Across a range of professions, people are devoting roughly 24 minutes of every hour mov- ing others—what Pink refers to as “nonsales selling.”

3. Respondents consider moving others—that is, a nonsales-selling skill set—as crucial to their professional success.44

Knowledge Workers in the Information Economy Stanley Marcus, founder of the prestigious Neiman Marcus Company, said, “Sooner or later in business, everybody has to sell something to somebody.” He noted that even if you are not in sales, you must know how to sell a product, a service, an idea, or yourself.45 Marcus’s views have garnered a great deal of support among observers of the information age. Today’s work- force is made up of millions of knowledge workers who succeed only when they add value to information. Knowledge workers are individuals whose work effort is centered around creating, using, sharing, and applying knowledge. The information economy is about the growing value of knowledge, making it the most important ingredient of what people buy and sell.46 One way to add value to information is to collect it, organize it, clarify it, and present it in a convincing manner. This skill, used every day by professional salespeople, is invaluable in a world that is overloaded with information.

As noted earlier, relationships have become more important in the information age. In many cases, information does not have value unless people interact effectively. Creating networks with social ties allows knowledge workers to acquire and provide information more successfully.47 For example, a salesperson may possess information concerning an important new technology, but that information has no value until it is communicated effectively to an investor, a customer, or someone else who can benefit from knowing more about his product. A bank loan officer may have the resources needed to assist a prospective homeowner in reaching her dream, but in the absence of a good relationship, communications may break down. Thus, in the information age, it becomes important for firms to create structures to encourage knowledge sharing.48

Individuals who have developed skills associated with careers in sales are more likely to be successful when they decide to go out on their own because, more often than not, those skills translate very well to other businesses.49 Today, personal-selling skills contribute in a major way to four groups of knowledge workers who may not consider themselves salespeople:

d Managerial personnel d Professionals (accountants, consultants, lawyers, architects, engineers, etc.) d Entrepreneurs and small business owners d Marketing personnel and customer service representatives

Managerial Personnel People working in managerial occupations represent a large group of knowledge workers. They are given such titles as “executive,” “manager,” or “administrator.” Leaders are constantly in- volved in capturing, processing, and communicating information. Some of the most valuable information is acquired from customers. This helps explain the rapid growth in what is being described as “executive selling.” Chief executive officers and other executives often accompany salespeople on sales calls to learn more about customer needs and, in some cases, to assist with presentations. Manny Fernandez of the Gartner Group, a technology-consulting firm based in Stamford, Connecticut, spent more than half his time traveling on sales calls.50 Leaders also must articulate their ideas in a persuasive manner and win support for their vision. Brian Tracy, author of The 100 Absolutely Unbreakable Laws of Business Success, says, “People who cannot present their ideas or sell themselves effectively have very little influence and are not highly respected.”51

Professionals Today’s professional workers include lawyers, designers, programmers, engineers, consultants, dietitians, counselors, doctors, accountants, and many other specialized knowledge workers. Our labor force includes nearly 20 million professional service providers, persons who need many of the skills used by professional salespeople. Clients who purchase professional services are usually more interested in the person who delivers the service than in the firm that employs the professional. They seek expert diagnosticians who are truly interested in their needs. The

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professional must display good communication skills and be able to build a relationship built on trust.

Technical skills are not enough in the information age. Many employers expect the professional to bring in new business, often referred to as business or client development, in addition to keeping current customers satisfied. Employers often screen professional ap- plicants to determine their customer focus, ability to interact well with people, and business and client development skills.

Many firms are providing their professional staff with sales training. The accounting firm Ernst & Young sets aside several days each year to train its professional staff in personal selling. The National Law Firm Marketing Association featured Neil Rackham, author of SPIN Selling, as keynote speaker at one of their national conferences. The Wicker Corpora- tion, a manufacturer of equipment for the plastics industry, has initiated a program designed to motivate its researchers, engineers, and manufacturing staff members to get involved in sales. Faced with increased competition and more cost-conscious customers, a growing num- ber of law, accounting, engineering, and architectural firms are discovering the merits of personal selling as an auxiliary activity.52

Entrepreneurs and Small Business Owners About 400,000 people start new businesses each year in the United States.53 As noted previously, people who want to start a new business frequently need to sell their plan to investors and others who can help get the firm established. Once the firm is open, owners rely on personal selling to build their businesses.

James Koch, chief executive officer of the Boston Beer Company (brewer of Samuel Adams beer), makes a strong case for personal selling. Like most new companies, his started with no customers. To get the new company established, he assumed the role of salesperson and set a goal of establishing one new account each week.

Today Koch continues to spend time on the street, visiting convenience stores, supermar- kets, and taverns. Competition from popular craft beers such as Fat Tire and Magic Hat, and imports such as Stella Artois and Beck’s, present a major challenge. He’s also trying to get the attention of young men who think of Samuel Adams as their father’s beer. He readily admits that selling his beer is the most rewarding part of his job. Koch could have sold his company to a megabrewer long ago, but that option is not appealing to this wealthy entrepreneur who loves to sell.54

SELL ING IS EVERYONE’S BUSINESS

Successful Entrepreneur’s Early Start in Sales At the age of 12, Michael Dell, CEO of Dell Computer Corporation, was displaying the characteristics of an opportunistic entrepreneur. He turned his stamp-collecting hobby into a mail-order business that netted $2,000. This money was used to purchase his first com- puter. He also developed his personal-selling skills at an early age. At age 16, he was selling subscriptions to his hometown paper, the Houston Post. Later, he enrolled in college but had difficulty focus- ing on his coursework. He often cut classes in order to spend more time assembling and selling computers. When Dell’s parents dis- covered his newest enterprise, they pressured him to stay focused on completing his degree. Dell completed the spring semester and then spent the summer expanding his business. In the month prior to the fall semester, he sold $180,000 worth of computers. He did not return to college.c

Source: Bloomberg/Getty Images

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20 PART 1 • DEVEloPing A PERsonAl sElling PHilosoPHy

Marketing Personnel and Customer Service Representatives Because of the close working relationships with customers, it is imperative that marketing directors, product managers, marketing research specialists, warehouse and shipping specialists, and others within marketing and sales must understand and, in most cases, acquire the skills of personal selling. This generally results in a much more productive effort for the company, and a satisfied customer base.

The assignment of selling duties to employees with customer service responsibilities has become quite common today. The term customer service representative (CSR) is used to describe knowledge workers who process reservations, accept orders by phone or other means, deliver products, handle customer complaints, provide technical assistance, and assist full- time sales representatives. Some companies are teaming CSRs and salespeople. After the sale is closed, the CSR helps process paperwork, check on delivery of the product, and engage in other customer follow-up duties. In addition to increased service quality, the improved customer expertise from this process improves customer loyalty.55

Assigning sales duties to customer service representatives makes sense when you con- sider the number of contacts customers have with CSRs. When a customer seeks assistance with a problem or makes a reservation, the CSR learns more about the customer and often provides the customer with needed information. Customer needs often surface as both par- ties exchange information. It is important to keep in mind the advice offered by the authors of Selling the Invisible: “Every act is a marketing act. Make every employee a marketing person.”56

Increasingly, work in the information economy is understood as an expression of thought. At a time when people change their careers eight or more times during their lives, selling skills represent important transferable employment skills.

Learning to Sell “Are salespeople made or are they born?” This classic question seems to imply that some people are born with certain qualities that give them a special advantage in the selling field. This is not true. The principles of adaptive selling, listening, and customer orientation can be learned and applied by people whose personal characteristics are quite different.57

In the past few decades, sales training has been expanded on four fronts. These four sources of training are corporate-sponsored training, training provided by commercial vendors, certification programs, and courses provided by colleges and universities.

Corporate-Sponsored Training Hundreds of business organizations, such as Apple Computer, IBM, Maytag, Western Elec- tric, and Zenith, have established training programs. These large corporations spend millions of dollars each year to develop their salespeople. Training magazine, which conducts annual analyses of employer-provided training in U.S. organizations, indicates that salespeople are

SELL ING IS EVERYONE’S BUSINESS

Job Sharing at the Vice President Level—Teaching Sales Cynthia Cunningham and Shelley Murray worked 60-hour work- weeks to achieve success as BankBoston branch managers. They wanted more time with their children, but the long hours created a major barrier to motherhood. Then they came up with a novel plan: package themselves and share one job. Once the plan was de- veloped, the selling began. They wrote a letter that described their accomplishments, attached a résumé, and delivered the package

to several senior executives. Eventually they met with more than a dozen executives and finally hit pay dirt. They began sharing a vice president–level job that involved teaching branch personnel and small businesses how to sell their services to customers. Cunning- ham and Murray now work 20 to 25 hours each week at what has since become Fleet Bank.d

1.6 Identify the four major sources of sales training

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CHAPTER 1 • RElATionsHiP sElling oPPoRTuniTiEs in THE infoRmATion EConomy 21

among the most intensively trained employee groups. A new salesperson preparing for a consultative-selling position may spend a few months to a year or more in training. For many salespeople, the training is as close as their laptop computer. Lucent Technologies, for example, uses web-based training for about one-third of its training courses.58

Training Provided by Commercial Vendors The programs designed by firms specializing in the development of sales personnel are a second source of sales training. Some of the most popular courses are offered by Richard- son E Learning, Acclivus Corporation, Wilson Learning Corporation, Miller Heiman Inc., Dale Carnegie Training, and AchieveGlobal (see Table 1.2). The legendary Professional Selling Skills (PSS) course, developed by Gene Keluche, is still offered by AchieveGlobal. This carefully designed course, once owned by Xerox, has been completed by millions of salespeople.59

Certification Programs The trend toward increased professionalism in personal selling has been the stimulus for a third type of training and education initiative. Many salespeople are returning to the classroom to earn

ComPAny TRAining PRogRAms DEsCRiPTion

Sales Performance International www.spisales.com

• Solution Selling

• Opportunity Selling

Provides sales training based on con- cepts explained in The New Solution Selling, by Keith Eades

Integrity Systems, Inc. www.integritysystems .com

• Integrity Selling

• The Customer

Provides sales training based on con- cepts explained in Integrity Selling for the 21st Century, by Ron Willingham

• Spin Selling Certificate

• Creating Client Value

Provides sales training based on con- cepts in The SPIN Selling Fieldbook, by Neil Rackham

Miller Heiman, Inc. www.millerheimangroup .com/sales-ready

• Strategic Selling

• Conceptual Selling

Provides sales training based on con- cepts presented in Strategic Selling and The New Conceptual Selling

• Professional Selling

• Professional Sales

Provides the original Xerox Profes- sional Selling Skills (PSS) sales train- ing; Course Content Coaching has been updated

Wilson Learning Worldwide www.wilsonlearning.com

• The Versatile Salesperson

Provides updated sales training based on the original Larry Wilson Coun- selor Selling Training Program

Dale Carnegie Training, Inc. www.dalecarnegie.com

• Sales Advantage

• How to Sell Like a Pro

One of the largest international training companies providing sales training using many of the concepts presented in the Dale Carnegie books, such as How to Win Friends and Influence People

Richardson E Learning www.richardson.com

• Richardson Quick Learning

Richardson QuickSkills™ 5.0 incorpo- rates a set of online tools that allows for improved efficiency in developing and delivering customized and tailored online sales training courses

TABLE 1.2 Sales Training Offered by Commercial Vendors Training programs provided by commercial vendors are very popular. This table introduces a few of the well-established sales training programs offered throughout America.

M01_MANN7404_14_SE_C01.indd 21 14/10/16 2:09 pm

http://www.spisales.com
http://www.wilsonlearning.com
http://www.dalecarnegie.com
http://www.richardson.com
www.integritysystems.com
www.integritysystems.com
www.millerheimangroup.com/sales-ready
www.millerheimangroup.com/sales-ready
22 PART 1 • DEVEloPing A PERsonAl sElling PHilosoPHy

gRADuATE PRogRAm

sPECiAlTy AREA

ComPETiTion PARTiCiPAnT

inTERnsHiP REQuiRED

ToTAl fACulTy

% of JoB PlACEmEnT

Auburn University ▲ 2 *

Ball State University ▲ ▲ ▲ 4 90

Baylor University ▲ ▲ 5 100

Bradley University ▲ 3 100

California State University, Chico ▲ ▲ 9 90

California State University, Fullerton

▲ ▲ ▲ 5 90

Central Michigan University ▲ ▲ 5 100

Clemson University ▲ 3 100

The College of New Jersey ▲ ▲ 1 70

Concordia University, St. Paul ▲ ▲ * *

DePaul University ▲ ▲ ▲ ▲ 17 82

Douglas College ▲ ▲ * 90

Duquesne University ▲ ▲ 5 92

Elon University ▲ ▲ ▲ 3 90

Ferris State University ▲ ▲ ▲ 10 85

Florida State University ▲ ▲ ▲ ▲ 4 100

Georgia Southern University ▲ ▲ 4 90

Georgia State University ▲ ▲ ▲ 7 80

Illinois State University ▲ ▲ 4 100

Indiana State University ▲ ▲ ▲ 4 75

Indiana University ▲ ▲ 3 93

Kansas State University ▲ ▲ 11 88

Kennesaw State University ▲ ▲ 7 98

Michigan State University ▲ ▲ ▲ 4 100

Missouri State University ▲ 3 *

Nicholls State University ▲ ▲ 1 85

North Carolina A&T State University

▲ 3 90

Northern Illinois University ▲ ▲ 6 100

Nova Southeastern University ▲ ▲ 8 *

Ohio University ▲ ▲ 5 98

Plymouth State University ▲ ▲ 4 *

St. Catherine University ▲ ▲ ▲ 6 98

Texas State University (San Marcos)

▲ ▲ 4 95

Tuskegee University ▲ 6 66

University of Akron ▲ ▲ ▲ ▲ 5 100

University of Alabama ▲ ▲ ▲ 5 100

University of Alabama at Birmingham

▲ 7 80

TABLE 1.3 Sales Training Offered by a Sample of Universities A large number of two- and four-year colleges and universities have established extensive educational programs for students interested in sales. Sales programs have also recently become an important part of the MBA curriculum at several elite universities. This table from the Sales Education Foundation provides a representative sample of universities that offer a variety of sales-training program options.

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CHAPTER 1 • RElATionsHiP sElling oPPoRTuniTiEs in THE infoRmATion EConomy 23

gRADuATE PRogRAm

sPECiAlTy AREA

ComPETiTion PARTiCiPAnT

inTERnsHiP REQuiRED

ToTAl fACulTy

% of JoB PlACEmEnT

University of Arkansas at Little Rock

▲ 2 *

University of Central Florida ▲ 5 100

University of Central Missouri ▲ ▲ 2 *

University of Central Oklahoma ▲ ▲ 7 100

University of Cincinnati ▲ ▲ 10 95

University of Connecticut ▲ ▲ ▲ 4 100

University of Dayton ▲ ▲ 5 92

University of Georgia ▲ ▲ ▲ 2 100

University of Houston ▲ ▲ 11 98

University of Louisville ▲ ▲ ▲ 2 *

University of Nebraska at Kearney (IDSD)

▲ ▲ ▲ 4 100

University of Nebraska at Kearney (PBSMB)

2 62

University of New Haven, The ▲ ▲ ▲ 3 100

University of North Alabama ▲ ▲ ▲ 7 100

University of North Carolina: Kenan-Flagler Business School

▲ ▲ ▲ 2 90

University of Southern Mississippi, The

▲ ▲ 3 *

University of Toledo ▲ ▲ ▲ ▲ 10 100

University of Washington ▲ ▲ ▲ * 92

University of Wisconsin–Eau Claire

▲ ▲ 9 100

University of Wisconsin–Parkside ▲ ▲ 3 90

Virginia Tech ▲ ▲ 3 *

Washington State University ▲ ▲ 2 95

Weber State University ▲ ▲ ▲ 12 100

West Virginia University ▲ ▲ 4 100

Western Carolina University ▲ ▲ * *

Western Kentucky University ▲ 5 *

Western Michigan University ▲ 4 90

Widener University ▲ 1 80

William Paterson University ▲ ▲ 7 90

Winona State University ▲ 2 94

Xavier University of Louisiana ▲ 2 75

Source: Used with permission of the Chally Group Worldwide. Used with permission.

certification in a sales or sales-related area. In the pharmaceutical industry, many salespeople earn the Certified Medical Representative (CMR) designation. The CMR curriculum includes nearly 40 courses that are delivered to more than 9,000 students. The National Automobile Dealers As- sociation sponsors the Code of Conduct Certification program for automotive sales representa- tives. Both of these certification programs require extensive study of modules and the completion of rigorous examinations. Sales & Marketing Executives–International offers the Certified Sales Executive (CSE) designation to sales professionals who meet the highest standards of education, experience, and ethical conduct.

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24 PART 1 • DEVEloPing A PERsonAl sElling PHilosoPHy

Some companies have developed their own sales-training certification programs. The Pitney Bowes Certified Postal Consultant (CPC) program is designed to improve the level of assistance given to customers who want to upgrade their mail process. It is available to members of the 4,000-person Pitney Bowes sales force who sell both products (postage meters) and services. Freightliner developed a certification program for its 1,800-member sales force. The various courses include topics ranging from product knowledge to truck-selling skills.60

College and University Courses The fourth source of sales training is personal-selling courses offered by colleges and universi- ties throughout the United States (see Table 1.3). A large majority of the nation’s community colleges and undergraduate business schools offer this course, and it is attracting more interest among business majors. Sales training has become an important part of the MBA curriculum at several elite universities as well.61 Although there is no formulaic answer that can be applicable to all selling situations,62 these courses provide students with a repertoire of skills that help them become more effective. Some two- and four-year colleges have developed extensive educational programs for students interested in a sales career. The Sales Center Alliance (www.salescen- teralliance.com) was established to advance the sales profession through academic leadership. The University of Akron, the University of Houston, Ball State University, Baylor University, Kennesaw State University, and many other schools offer undergraduate programs for students who are preparing for a career in personal selling.

For over 35 years, the Certified Medical Representatives Institute has been empowering sales representatives who call on medical professionals. The CMR certification program is designed to increase sales performance.

Source: CMR Institute

M01_MANN7404_14_SE_C01.indd 24 14/10/16 2:09 pm

www.salescenteralliance.com
www.salescenteralliance.com
CHAPTER 1 • RElATionsHiP sElling oPPoRTuniTiEs in THE infoRmATion EConomy 25

Reviewing Key Concepts Define personal selling and describe the three prescriptions of a personal selling philosophy Personal selling occurs when a company representative interacts directly with a customer or prospective customer to present information about a product or service. Salespeople are encour- aged to develop a personal-selling philosophy based on three prescriptions: adopt the marketing concept, value personal selling, and assume the role of a problem solver or partner.

Describe the emergence of relationship selling in the age of information The restructuring of America from an industrial economy to an information economy began in the 1950s. We now live in an age in which the effective exchange of information is the founda- tion of most economic transactions. Salespeople use a variety of information technology tools to gather and process information of value to the customer.

Discuss the rewarding aspects of a career in selling today Selling careers offer many rewards not found in other occupations. Income, both monetary and psychic, is above average, and there are many opportunities for advancement. Salespeople enjoy job security, mobility, and independence. Opportunities in selling for members of minority groups and for women are growing. In addition, selling is very interesting work, because a salesperson is constantly in contact with people. The adage “no two people are alike” reminds us that sales work is never dull or routine.

Discuss the different employment settings in selling today The text describes each of the three major career options and employment opportunities in the field of personal selling, namely, services, business goods, and consumer goods. Keep in mind that each category features a wide range of selling positions, varying in terms of educational requirements, earning potential, and type of customer served. The discussion and examples should help you discover which kind of sales career best suits your talents and interests.

Explain how personal selling skills have become one of the master skills needed for success in the information age and how personal selling skills contribute to the work performed by knowledge workers Today’s workforce is made up of millions of knowledge workers who succeed only when they add value to information. The new economy rewards salespeople and other knowledge workers who collect, organize, clarify, and present information in a convincing manner. Selling skills contribute in a major way to four groups of knowledge workers who usually do not consider themselves salespeople: customer service representatives, professionals (accountants, consul- tants, lawyers, etc.), entrepreneurs, and managerial personnel.

Identify the four major sources of sales training Sales training can be acquired from four key sources: corporate-sponsored training, training provided by commercial vendors, certification programs, and courses offered by colleges and universities. Many MBA programs are now including professional selling and sales management in the curriculum.

CHAPTER LEARNING ACTIVITIES

Key Terms Personal selling, p. 5 Product, p. 5 Personal-selling philosophy,

p. 5

Information economy, p. 5 Selling, p. 6 Value-added selling, p. 7 Psychic income, p. 10

Inside salespeople, p. 11 Outside

salespeople, p. 11 Trade selling, p. 12

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26 PART 1 • DEVEloPing A PERsonAl sElling PHilosoPHy

Review Questions

1-1 Explain how personal selling can help solve the problem of information overload. 1-2 According to the Strategic/Consultative–Selling Model (see Figure 1.1), what are the

three prescriptions for developing a successful personal-selling philosophy? 1-3 List and describe the four employment settings for people who are considering a selling

career. 1-4 What future for women is there in selling? 1-5 Some salespeople have an opportunity to earn certification in a sales or sales-related area.

How can a salesperson benefit from certification? 1-6 Explain why high-performance value-added salespeople earn much more than high-

performance transactional salespeople. 1-7 List three titles commonly used to describe manufacturing salespeople. Describe the

duties of each. 1-8 Develop a list of eight selling-career opportunities in the service field. 1-9 List and briefly describe the four major sources of sales training.

Missionary, or detail, sales, p. 12

Field salespeople, p. 15 Missionary salespeople,

p. 15

Direct salespeople, p. 16 Customer relationship

management, p. 17 Knowledge workers,

p. 18

Business or client development, p. 19

Customer service representative (CSR), p. 20

MyMarketingLab To complete the problems with the in your MyLab, go to the EOC Discussion Questions.

Application Exercises

1-10 Examine a magazine or newspaper ad for a new product or service that you have never seen. Evaluate its chances for receiving wide customer acceptance. Does this product require a large amount of personal-selling effort? What types of salespeople (service, manufacturing, wholesale, or retail) are involved in selling this product?

1-11 For each of the following job classifications, name at least one person you know in that field: a. Full-time person who sells a service b. Full-time inside wholesale salesperson c. Full-time manufacturer’s salesperson d. Full-time retail salesperson

Interview one of the people you have listed, asking the following questions concerning their duties and responsibilities: a. What is your immediate supervisor’s title? b. What would be a general description of your position? c. What specific duties and responsibilities do you have? d. What is the compensation plan and salary range for a position like yours?

Write a job description from this information. 1-12 Shelly Jones, a vice president and partner in the Chicago office of the consulting firm

Korn/Ferry International, has looked into the future and sees some new challenges for salespeople. She recently shared the following predictions with Selling Power magazine: a. Salespeople will spend more time extending the range of applications or finding new

markets for the products they sell. b. The selling function will be less of pitching your product and more of integrating

your product into the business equation of your client. Understanding the business environment in which your client operates will be critical.

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CHAPTER 1 • RElATionsHiP sElling oPPoRTuniTiEs in THE infoRmATion EConomy 27

c. In the future, you will have to be a financial engineer for your client. You need to understand how your client makes money and be able to explain how your product or service contributes to profitable operation of the client’s firm.

Interview a salesperson who is involved in business-to-business selling—a manufac- turer’s representative, for example—and determine whether this person agrees with the views of Shelly Jones.

1-13 There are many information sources on selling careers and career opportunities on the Internet. Two examples include Monster.com and CareerBuilder.com. Search the Internet for information on selling careers.

Use your search engine to find career information on a pharmaceutical representative, a field sales engineer, and a retail salesperson.

Role-Play Exercise

This role-play will give you experience in selling your knowledge, skills, and experi- ence to a prospective employer. You will be meeting with a class member who will assume the role of an employer who is developing a new sales team. Prior to this interview, reflect on the courses you have completed, work experience, and other life experiences that may have value in the eyes of the employer. You may also want to reflect on any volunteer work you have completed and leadership roles you have

held. Be prepared to discuss the personal-selling skills you are developing in this course, skills you have learned in previous employment settings, and related skills you have learned in other courses you have taken, such as psychology, communications, sociology, and so forth.

Reality Selling Case Problem— Alex Homer/Tom James Company

Alex Homer, featured at the beginning of this chapter, works as a professional cloth- ier for the Tom James Company (www.tomjames.com). Alex sells a comprehensive collection of high-quality attire: formal (black tie/tuxedo), business (suits), business casual (sport coats, slacks, etc.), and weekend (jeans, sport shirts, shorts, khakis, etc.). His clients are typically gentlemen and ladies who do not have time to go to the

store, dislike the idea of store shopping, or have fit characteristics that present challenges for purchasing clothing “off-the-peg.”

For Alex, it is important to call on existing customers as well as prospects and to be aware of the different approaches used in each type of sales call. Typically, prior to visiting with an exist- ing customer, he puts together clothing ideas for the season that make sense for the client based on how she/he dresses and how much her/his closet is lacking in a particular area (e.g., shirts or slacks). For new prospects, Alex contacts them by telephone. Realizing that cold-calling is an antiquated way of building a long-standing and fruitful sales career, the Tom James Company emphasizes the importance of referrals to build a business. Referrals tend to be easier to contact by phone and they typically purchase more in person, due to the strength of the referrer’s name. All in all, referrals remove many obstacles to turning a person who is completely unaware of one’s business into a client.

According to Alex, the biggest challenge in his business is getting in front of people. This challenge stems from many possible sources: lack of time for the prospect, perceived price/value imbalance, lack of experience in in-office clothing shopping, and being perceived as a “suit” company rather than an all-inclusive clothing provider.

Especially for repeat clients, who represent 80 percent of the company’s annual business, Alex Homer describes solid call preparation as key for successful selling. If the salesperson is unprepared and shows up in the client’s office with bag-in-hand and a “what-are-you-buying- today?” attitude, clients can sense this and become frustrated. They understand that professional clothiers provide a service and expect them to be prepared as a partner/problem solver regarding their wardrobes. As Alex puts it, “Stores provide clothing. Tom James provides a service.”

M01_MANN7404_14_SE_C01.indd 27 14/10/16 2:09 pm

http://www.tomjames.com
www.Monster.com
www.CareerBuilder.com
28 PART 1 • DEVEloPing A PERsonAl sElling PHilosoPHy

When it comes to understanding the needs of a prospect, Alex follows a certain sales pro- cess: He first asks his clients what is most important to them when they go clothing shopping. For most of his clients, it is one of four things: price, quality, fit, and trend-sensitivity. Based on that, he determines what clothing the clients wear during the vital parts of their business (client meetings, board meetings, trial, close-the-sale presentations, speaking engagements, etc.). Then he asks how they would evaluate their closet (excellent, good, fair, or poor). Finally, if applicable, he finds out what it would take to make a slight improvement in their closet. (See the chapter opener on page 4 and Reality Selling Today Role-Play 1 in Appendix 1 for more information.)

Questions 1-14 Does it appear that Tom James and Alex Homer have a personal-selling philosophy

like that described in this chapter? Provide examples that support each of the three prescriptions.

1-15 Put yourself in the position of Alex Homer. What might be the most rewarding and the most adverse aspects of his sales job?

1-16 Describe how Alex uses personal-selling skills in utilizing existing knowledge and gather- ing new information from the customer in order to advance the sales process.

1-17 Discuss different ways in which Alex can actively generate good customer referrals. 1-18 What skills are particularly important for Alex’s sales job? Which of the four major sources

of sales training outlined in this chapter would you recommend for acquiring those skills?

Partnership Selling: A Role-Play (see Appendix 3, page 419)

Learning about the new Upscale Park Shores Resort and Convention Center, Partnership Selling Role-Play

[if your instructor has chosen to use the Partnership-selling Role-Play exercise that accompanies this text, these boxes alert you to your Role-Play assignments. your instructor will also provide you with needed information.]

Preview the role-play materials in Appendix 3. The role-play materials are pro- duced by the southern California beachfront Park shores Resort and Convention Center, and you will be using them in your role as a new salesperson (and, at times, as the customer) for the hotel and its convention services.

The role-play exercises begin in Chapter 6, as you begin to create your product strategy. However, in anticipation of the role-play, you can begin to imagine yourself in the role of an actual salesperson. start to think about how you can develop your personal-selling philosophy. What are some ethical guidelines that you may wish to adopt for yourself? (Ethics is also the subject of Chapter 3, “Ethics: The foundation for Relationships in selling.”) What skills do you need to develop to become a partner with your prospective customers? (Refer to the position description in Part i of Appendix 3.)

The Park shores has implemented a quality improvement process. How does this affect your role as a sales representative? (Refer to the Total Quality Customer service glossary in Part i of Appendix 3.)

MyMarketingLab Go to the Assignments section of your MyLab to complete these writing exercises.

1-19 Preparation for a career in personal selling begins with the development of a personal philosophy or set of beliefs that provide guidance. Discuss the develop- ment of the three prescriptions of a personal-selling philosophy and how these prescriptions apply to value-added selling.

1-20 The restructuring of America from an industrial economy to an information economy began approximately 60 years ago. Explain the key factors involved in the emergence of relationship selling in the information economy.

Park Shores Resort and Convention Center. Source: Courtesy of Beach Resort

M01_MANN7404_14_SE_C01.indd 28 14/10/16 2:09 pm

29

MyMarketingLab™ Improve Your Grade!

Over 10 million students improved their results using the Pearson MyLabs. Visit mymktlab.com for simulations, tutorials, and end-of-chapter problems.

Reality Selling Video—Ryan Guillory/Independent Consultant (TWFG)

Ryan Guillory, 33, a native of Houston, Texas, is a highly successful owner/agent of an

independent insurance agency and branch owner of The Woodlands Financial Group (TWFG)

(www.twfg.com), a privately held national firm that describes itself as a team of “caring, consci-

entious people” working through more than 300 TWFG retail branches and 3,000 independent

agents in 38 states across the United States.

As an owner/agent of an Independent insurance agency founded in 2014, Guillory writes

(sells) more than one insurance carrier. He represents about 75 different personal and commercial

lines insurance carriers, allowing him to partner with his clients and sell many products that may

not be directly associated with the main products he focuses on, that include home, auto, life,

and commercial insurance. The partnering ability to meet additional customer needs regarding

insurance protections is referred to as cross-selling.

Guillory’s business philosophy is to get his customers the very best coverage avail-

able at the best rate available. His unique customer insight into relationship-selling is that,

even though he may not always have the lowest price, going over the quote and policies with

customers in detail has its advantages. Through this consultative-selling approach Guillory

spends considerably more time discussing a client’s insurance needs with them than his com-

petitors might. He believes this helps the customer feel more comfortable buying the policies

that he recommends.

Evolution of Selling Models That Complement the Marketing Concept

Learning Objectives

When you finish reading

this chapter, you should

be able to

2.1 Discuss the evolution of personal selling models as an exten- sion of the marketing concept

2.2 Describe the evolution of consultative selling from the marketing era to the present

2.3 Define strategic sell- ing and name the four broad strategic areas in the Strategic/ Consultative–Selling Model

2.4 Describe the evolution of partnering and the nature of strategic account management

2.5 Explain how value-added selling strategies enhance personal selling

2

Source: Michael Ahearne

M02_MANN7404_14_SE_C02.indd 29 14/10/16 2:06 pm

http://www.twfg.com
www.mymktlab.com
30 PART 1 • DEVELOPING A PERSONAL SELLING PHILOSOPHY

Guillory’s strategy to beat competition is to keep a tab on market information on captive

agents (an agent who can only sell one carrier such as State Farm or Liberty Mutual) and com-

panies that do not have agents and sell directly to the customer such as Geico or Esurance. He

mainly markets to home owners while cross-selling the auto policy—the idea being that while

almost every home owner has an automobile that will need insurance, every customer who has an

automobile does not have a home as they may rent or live with parents

The first conversation with the customer is for gathering strategic information, mostly on the

customer’s property. Questions on personal details, past claims, acquaintances, experiences and

primary concerns follow soon after.

Product presentation is always in person so that the client and Guillory review the quote together.

Quotes are emailed before meetings that normally start by prodding the customer to ask questions to

start the conversation. Thereafter, both sides go over the quote thoroughly focusing on exactly what

the policy covers. To get additional information, Guillory peppers the meeting with open-ended ques-

tions. If the customer does not have any further questions, Guillory likes to say, “I can get this started

as early as tonight for you.” If the customer wants to think about the offer, he likes to get a commit-

ment on the day he can come back. As Guillory puts it, the goal is always to get a commitment which

will lead to the sell. d

Marketing Concept Requires New Selling Models A careful examination of personal selling practices during the past 50 years reveals some positive developments. We have seen the evolution of personal selling through several stages. The earlier “persuader stage” that was popular prior to the emergence of the marketing concept emphasized pushing or peddling products. At this stage, with little regard for long-term, mutually reward- ing customer relationships, salespeople attempted to convince any and all market members to buy products offered. Over the years, personal selling evolved to the “problem-solver stage”— obtaining the participation of buyers in identifying their problems, which could be translated into needs. At this stage, the salesperson attempts to present products that correspond with customer needs.1 Today, salespeople are no longer the flamboyant product “peddlers” of the past. Instead, they are increasingly becoming diagnosticians of customers’ needs and problems. A growing

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

Salespeople who build partnering relationships are rewarded with repeat business and referrals. These relationships require a strategic approach to selling.

Source: Konstantin Chagin/Shutterstock

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CHAPTER 2 • EVOLUTION OF SELLING MODELS THAT COMPLEMENT THE MARKETING CONCEPT 31

number of salespeople recognize that the quality of the partnerships they create is as important as the quality of the products they sell. This sweeping change in personal-selling models, from peddling to long-term consultative problem solving and value-added partnering, was prompted by the emergence of the marketing concept.

Evolution of the Marketing Concept What is the marketing concept? It is a principle that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired products. Under the marketing concept, customer focus and value are the paths to sales and profits.2

The era of marketing and the age of information began in the 1950s (Table 2.1). A General Electric executive is credited with making one of the earliest formal statements indicating cor- porate interest in the marketing concept. In a paper heralding a new management philosophy, he observed that the principal marketing function of a company is to determine what the customer wants and then develop the appropriate product or service. This view contrasted with the prevail- ing practice of that period, which was to develop products and then build customer interest in those products.3

The foundation for the marketing concept is a business philosophy that leaves no doubt in the mind of every employee that customer satisfaction is of primary importance. All energies are directed toward satisfying the customer. As Peter Drucker once observed, “The customers define the business.”

Although the marketing concept is a very basic business fundamental, some companies ig- nore it and suffer the consequences. Ford Motor Company was a leader in quality control during the 1980s and early 1990s but then seemed to shift its focus to other areas. The result was a drop in its J.D. Power and Associates quality rankings and a drop in sales. Ford also failed to stay in touch with consumer tastes.4 With renewed insight into the marketing concept, Ford now appears to be reconnecting with their customers.5

SALES AND MARKETING EMPHASIS SELLING EMPHASIS

Marketing Era Begins (1950s)

Organizations determine needs and wants of target markets and adapt themselves to delivering desired satisfaction; product orien- tation is replaced by a customer orientation

• More organizations recognize that the salesperson is in a position to collect product, market, and service information concerning the buyer’s needs

Consultative-Selling Era Emerges (Late 1960s to early 1970s)

Salespeople are becoming diagnosticians of customers’ needs as well as consultants offering well-considered recommendations; mass markets are breaking into target markets

• Buyer needs are identified through two-way communication

• Information giving and negotiation tactics replace manipulation

Strategic-Selling Era Emerges (Early 1980s)

The evolution of a more complex selling environment and greater emphasis on market niches create the need for greater structure and more emphasis on planning

• Strategy is given as much attention as selling tactics

• Product positioning is given more attention

• Greater emphasis on account management and team selling

Partnering Era Emerges (1990 to the present)

Salespeople are encouraged to think of everything they say or do in the context of their long-term, high-quality partnership with individual customers; sales force automation provides specific customer information

• Customer supplants the product as the driving force in sales

• Greater emphasis on strategies that create customer value

• Adaptive selling is given greater emphasis

TABLE 2.1 Evolution of Personal Selling (1950 to Present)

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32 PART 1 • DEVELOPING A PERSONAL SELLING PHILOSOPHY

Business firms vary in terms of how strongly they support the marketing concept. Some firms have gone the extra mile to satisfy the needs and wants of their customers:

d UPS founder Jim Casey adopted the marketing concept when the company was first estab- lished. He described the firm’s customer focus this way: “Our real, primary objective is to serve—to render perfect service to our stores and their customers. If we keep that objective constantly in mind, our reward in money can be beyond our fondest dreams.”6

d Marriott Hotels uses a blend of “high tech” and “high touch” to build customer goodwill and repeat business. Each of the 8,500 sales representatives can sell the services of 10 motel brands in Marriott’s portfolio. The customer with a small-meeting budget might be encouraged to consider a Fairfield Inn property. The customer seeking luxury accommoda- tions might be introduced to a Ritz-Carlton hotel (acquired a few years ago). All reserva- tions go through the same system, so if one Marriott hotel is full, the sales representative can cross-sell rooms in another Marriott hotel in the same city.7

Marketing Concept Yields Marketing Mix Once the marketing concept becomes an integral part of a firm’s philosophy, its management seeks to develop a network of marketing activities that maximize customer satisfaction and en- sure profitability. The combination of elements making up a program based on the marketing concept is known as the marketing mix (Figure 2.1). The marketing mix is a set of controllable, tactical marketing tools that consists of everything the firm can do to influence the demand for its product. The many possibilities can be organized into four groups of variables: product, price, place, and promotion.8

One of the four Ps shown in Figure 2.1—promotion—can be further subdivided into ad- vertising, public relations, sales promotion, and personal selling. When a company adopts the marketing concept, it must determine how some combination of these elements can result in maximum customer satisfaction.

Important Role of Personal Selling Every marketer must decide how much time and money to invest in each of the four areas of the marketing mix. The decision must be objective; no one can afford to invest money in a marketing strategy that does not provide a good return on money invested. Personal selling is often the major promotional method used—whether measured by people employed, by total expenditures, or by expenses as a percentage of sales. As noted in Chapter 1, there are more than 21 million field and retail salespeople in the United States. This represents about 11 percent of all of the people who are employed full time. Approximately 6 million of these salespeople have field responsibility. Full-time salespeople in the United States cost their companies more than a trillion dollars every year and represent by far the largest marketing expenditure. This is more than four times what is spent on advertising.9