The sales funnel model of classifying prospects involves

Summarize

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

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Selling Today Partnering to Create Value

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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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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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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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http://www.Salesforce.com
xxii PREFACE

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