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SalespeopleandSociety6 SalespeopleasEconomicStimuli6 SalespeopleandDiffusionofInnovation7 SalespeopleandtheEmployingFirm7 SalespeopleasRevenueProducers7 MarketResearchandFeedback7 SalespeopleasFutureManagers7 SalespeopleandtheCustomer8 ClassificationofPersonalSellingApproaches8
Noncustomer-OrientedBehavior49 HowAreCompaniesDealingwithSalesEthics?49 Summary51
MakingProfessionalSellingDecisions57
Case2.1:SchmidtBusinessForms57 Case2.2:SalesEthics:ACaseStudy58 Module3-UnderstandingBuyers61
UnderstandingYourBuyersIstheKey toSalesSuccess61 TypesofBuyers62
DistinguishingCharacteristicsofBusiness Markets64 ConcentratedDemand64 DerivedDemand64 HigherLevelsofDemandFluctuation64 PurchasingProfessionals64 MultipleBuyingInfluences65 CloseBuyer–SellerRelationships65 TheBuyingProcess65
PhaseOne—RecognitionoftheProblem orNeed:TheNeedsGap67 TypesofBuyerNeeds68
PhaseTwo—Determinationofthe CharacteristicsoftheItemandtheQuantity Needed69
PhaseThree—DescriptionoftheCharacteristics oftheItemandtheQuantityNeeded71
PhaseFour—SearchforandQualification ofPotentialSources71
PhaseFive—AcquisitionandAnalysis ofProposals71
ProceduresforEvaluatingSuppliersand Products71
AssessmentofProductorSupplier Performance72 AccountingforRelativeImportanceofEach Characteristic72
EmployingBuyerEvaluationProcedures toEnhanceSellingStrategies73
PhaseSix—EvaluationofProposalsandSelection ofSuppliers74
PhaseSeven—SelectionofanOrderRoutine74
PhaseEight—PerformanceFeedback andEvaluation75
UnderstandingPostpurchaseEvaluationand theFormationofSatisfaction75
TheGrowingImportanceofSalespeople inBuyer’sPostpurchaseEvaluation75
UnderstandingtheSuperiorityofPictures overWords120 ImpactofGrammarandLogicalSequencing121 NonverbalCommunication122 FacialExpressions122 EyeMovements122 PlacementandMovementsofHands,Arms, Head,andLegs123 BodyPostureandOrientation123 Proxemics123 VariationsinVoiceCharacteristics123 SpeakingRatesandPauseDuration124 PitchorFrequency124 IntensityandLoudness124 UsingNonverbalClusters125 Summary126
MakingProfessionalSellingDecisions134
Case4.1:Pre-Select,Inc.134 Case4.2:STAGAFinancialServices135
Part2-InitiatingCustomerRelationships137
Module5-StrategicProspectingandPreparing forSalesDialogue139
IdentifyingSalesOpportunities: ThreeExamples139 Prospecting:ImportanceandChallenges140 StrategicProspecting140 GeneratingSalesLeads141 DeterminingSalesProspects142 PrioritizingSalesProspects142 PreparingforSalesDialogue142 LocatingProspects142 ColdCanvassing142 Networking143 CompanySources144 PublishedSources145 StrategicProspectingPlan147 PreparingforSalesDialogue:Gathering andStudyingProspectInformation148 ObtainingInformationontheBuyer149 GatheringInformationontheProspect’s Organization150 SourcesofInformation150 DeterminingOtherBuyers’Influences151 Summary152 MakingProfessionalSellingDecisions157
Case5.1:HowtoProspect157
Case5.2:ProspectingandGainingProspect Information157
Module6-PlanningSalesDialoguesandPresentation159
Section1:ProspectInformation170
Section2:CustomerValueProposition170
Section3:SalesCallObjective171
Section4:LinkingBuyingMotives,Benefits, SupportInformation,andOtherReinforcement Methods172
Section5:CompetitiveSituation172
Section6:BeginningtheSalesDialogue173 InitiatingContact174
Section7:AnticipateQuestions andObjections174
Section8:EarnProspectCommitment175
Section9:BuildValuethroughFollow-Up Action175 EngagingtheCustomer175 Summary176 MakingProfessionalSellingDecisions180 Case6.1:TheNewSalesperson180
VoiceCharacteristics190 ExamplesandAnecdotes191 ComparisonsandAnalogies191 SalesCallSetting192 Location192
PositioningandSeatingArrangements192 Disruptions193 ProofProviders194 Statistics194 Testimonials194 CaseHistories195 VisualAids195 ProductDemonstrationsandModels195 PrintedMaterials196 PhotographsandIllustrations196 ChartsandGraphs197 ElectronicMedia197 Computer-BasedPresentations197 Video197 Slides198 OverheadTransparencies198 UsingToolsandSalesAids inthePresentation198 StatetheSellingPointandIntroduce theSalesAid198 PresenttheSalesAid198 ExplaintheSalesAid198 Summarize199 GroupSalesPresentations199 SalesTacticsforSellingtoGroups200 ArrivalTactics199 EyeContact200 CommunicationsTips200 HandlingQuestionsinGroup Presentations201 Summary203 MakingProfessionalSellingDecisions208
Case7.1:TexasPaint&Coatings(TPC)208
Case7.2:AllRiskInsurance andNationalNetworks208
Module8-AddressingConcernsandEarning Commitment211
FewerEarningCommitmentTechniques Work!211 AddressingConcerns211 AnticipateandNegotiateConcerns andResistance211
BuildtheRelationshiptothePointThatYour CustomersAreComfortableComplaining247 ListenCarefullyandGettheWholeStory247 AskCustomersHowTheyWouldLikeTheir ComplaintResolved247 GainAgreementonaSolution248 TakeAction—EducatetheCustomer248 Follow-throughonAllPromises—AddValue248 MaintainOpen,Two-WayCommunication249 ExpandCollaborativeInvolvement249 WorktoAddValueandEnhance MutualOpportunities249 ProvideQualityCustomerService249 CustomerExpectations251 DevelopaServiceStrategy251 CustomerServiceDimensions252 Summary252
MakingProfessionalSellingDecisions258
Case9.1:TheReluctantSalesForce258 Case9.2:WhateverItTakestoGettheOrder258
Module10-AddingValue:Self-Leadership andTeamwork261
The3TsofSalesSuccess:Task-Oriented Planning,Technology,andTeamwork261 EffectiveSelf-Leadership262
StageOne:SettingGoalsandObjectives263 WhatMakesaGoodGoal?263 WorkingwithDifferentLevelsandTypes ofGoals265
StageTwo:TerritoryAnalysis andAccountClassification265 AccountClassification266 Single-FactorAnalysis266 PortfolioAnalysis267
StageThree:DevelopmentandImplementation ofStrategiesandPlans269 EstablishingandImplementingSellingTask andActivityPlans269 EstablishingTerritoryRoutingPlans270 StraightLine272 Cloverleaf272 Circular273 Leapfrog273 MajorCity274
StageFour:TappingTechnology andAutomation275 Computers276
4.1ActivatingtheADAPTProcess forDevelopingandConfirming CustomerNeeds348
4.2RolePlaysforADAPTive Questioning351
4.3EffectiveQuestioning355
4.4Thank-YouLetters358
5.1AssessingtheEffectiveness ofDifferentCustomerContact Methods362
5.2AssessingtheLifetimeValue ofaCustomer365
5.3ProspectingEffectiveness367
6.1DevelopingFeatureand BenefitStatementsfor YourSchool369
6.2PresentationEffectiveness— DiscussionQuestions372
6.3SalesCallPlanningReport373
7.1HelpfulHintsforSales Presentations379
7.2GeneratingBuyerInvolvement381
8.1WhySalespeopleFail toGainCommitment385
8.2GainingCommitment— CautionSignals386
8.3ReasonsforSalesResistance388
8.4NegotiatingBuyerResistance392
9.1PostpresentationFollow-up: AnalyzingaSalesCall394
9.2WhattoDoafterGaining Commitment397
9.3EnhancingCustomer Relationships399
10.1WrittenSalesProposals— SummarizingQuantitative Data401
10.2GainingCommitmentwith BuyingTeams403 Glossary-407 Notes-417 Index-423
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Thefourtheditionof ProfessionalSelling:ATrust-BasedApproach isintendedtocontinuetoprovidestudentsandprofessorswithcomprehensivecoverageofcontemporary professionalsellinginaninterestingandchallengingmanner.Weintegratethemost recentsalesresearchandleadingpersonalsellingpracticeintooureffectiveandtimetestedpedagogicalformat.Themajorprofessionalsellingtopicsareorganizedinto tenmodulesandpresentedinalogicalsequencefromtheperspectiveofaprofessional salesperson.Theten-moduleformatmakesiteasyforprofessorstocoverthemodules inasemesterorquarterandhaveplentyoftimeforroleplaysandotherexperiential exercises.Thismakesitpossibleforstudentstolearntheimportantconceptsandprocessesfromthetextandthenapplytheminvarioustypesofactive-learningactivities.
Themostexcitingaspectofthefourtheditionof ProfessionalSelling:ATrustBasedApproach isthenewtrust-basedsalesprocess.Theofficialdefinitionofmarketingwasrecentlyrevisedwithafocusoncrea ting,communic ating,anddelivering value,andmanagingcustomerrelationships.Wethinkthisnewdefinitionhasimportantimplicationsforprofessionalselling,sincesalespeopleplayakeyroleinvaluecreation,communication,anddelivery,andinm anagingcustomerrelationships.In addition,mostsalesproc essesimplythatsalespeopledeliverasalespresentation thatislargelyamonologue.Yet,mostsuccessfulsalesinteractionsareanactivedialoguebetweenthebuyerandseller.Thus,ournewtrust-basedsalesprocessemphasizescreating,communicating,anddeliveringvalue;initiating,developing,and enhancingcustomerrelationships;andcollaborativesalesdialoguethroughoutthe entireprocess.ThisnewmodelispresentedinModule1andemphasizedinthe remainingmodules.Wehavechangedthenamesofseveralmodulestoreflect thefocusonvalue,relationships,anddialogue.Ournewtrust-basedsalesprocess hasbeentestedinourclassesandstudentsreallylikeit.Ithelpstoovercomethenegativestereotypesmanystudentshaveaboutpersonalselling.Studentsseemto embraceaconceptofprofessionalsellingbasedonvalue,relationships,anddialogue. Wearedelightedwithstudentresponsetoournewsalesprocessmodel.
STRENGTHSOFTHISEDITION Wehavemaintainedwhathasworkedwellinpreviouseditions,revisedallmodulesto incorporatethelatestdevelopmentsinsalesthoughtandpractice,andaddednew contentandpedagogy.Thekeystrengthsofthefourtheditionof ProfessionalSelling: ATrust-BasedApproach are:
Thenewtrust-basedsalesprocessasthemajororganizingframeworkforthe entiretext.TheoverallmodelispresentedinModule1andallremainingmodules arelinkedtoit.Thisprovidesacoherent,organizedframeworkforthetextandfor aprofessionalsellingclass.
Oneofthewayswepresentleadingprofessionalsellingpracticeisthroughcomments madeineachmodulefromourProfessionalSellingPanel.Wehaveaddedseveral newsalesprofessionalstothispanel.Thesesalesprofessionalsrepresentavariety
ofdifferentindustries.Theysharewhattheyandtheircompaniesaredoingnow. These‘‘ProfessionalSellinginthe21stCentury’’boxesgivestudentsanaccurate pictureofthe‘‘realworld’’ofprofessionalsellingintoday’sbusinessenvironment. TheOpeningVignettesforallmodulesarenew.Thepurposeofthesevignettesis toengagestudentsbygeneratinginterestinthematerialtobecoveredina module.Thesevignettestypicallypresentwell-knownfirmsandtheirup-to-date professionalsellingpractices.
Numerousroleplaysareineverymodule.Aniconinthemarginindicateseach roleplay.Theroleplaysarenormallytiedtothe‘‘EthicalDilemma’’boxes, exercisesinthe‘‘BuildingProfessionalSellingSkills’’sectionattheendofeach module,andtheshortcasesinthe‘‘MakingProfessionalSellingDecisions’’ sectionattheendofeachmodule.Eachroleplayprovidesthecharacters,the scene,specificdirections,andquestionstoguideadiscussionofcompleted rolesplays.Weusetheseroleplaysinourclassesandstudentslearnagreatdeal fromparticipatinganddiscussingthem.
Attheendofthetextweprovideacompletesectionof‘‘ExperientialExercises.’’ Theseexercisesareinadditiontothosefoundattheendofeachmodule.The ‘‘ExperientialExercises’’arenumberedtoreflecttheappropriatemoduleforthe exercise.Wehavetriedtoprovidealargenumberofdifferenttypesofexercisesso thatprofessorscanfindonesthatmeettheirneedsthebest.
Thevideopackagewasdevelopedspecificallyforthetext.Therefore,itdemonstratesandteachesthespecificconceptsandskillscoveredinthetext.Experienced actorspresentclearexamplesofimportantconceptsandskills.Anoff-camera spokespersonprovidesnarrativeexplanationsandasksavarietyofquestionsfor studentstothinkaboutandanswer.Wehavefoundthevideopackagetobean effectivelearningaidinourprofessionalsellingclasses.
Weareexcitedaboutthefourtheditionof ProfessionalSelling:ATrust-Based Approach.Wehaveusedthetextsuccessfullyinourprofessionalsellingclasses.Studentsfindthebooktobereadableandinteresting,likethemanyexamplesand active-learningexercises,andmanyindicate theyaregoingtokeepthebookto useintheircareer.Moststudentscompletethecoursewithamorefavorableattitude towardprofessionalsellingandmanydecidetopursuesalesjobsandcareers.The positiveimpactthat ProfessionalSelling:ATrust-BasedApproach hashadonstudents overtheyearsisasourceofimmensesatisfactionforus.
MODULEPEDAGOGY Thefollowingpedagogicalformatisusedforeachmoduletofacilitatethestudent learningprocess.
Objectives. Specificlearningobjectivesforthemodulearestatedinbehavioralterms sothatstudentswillknowwhattheyshouldbeabletodoafterthemodulehasbeen covered.
OpeningVignettes. Allmodulesareintroducedbyanopeningvignettethattypicallyconsistsofarecent,real-worldcompanyexampleaddressingmanyofthekey pointstobediscussedinthemodule.Theseopeningvignettesareintendedtogeneratestudentinterestinthetopicstobecoveredandtoillustratethepracticalityof themodulecoverage.
KeyWords. Keywordsarehighlightedinboldtypethroughouteachmoduleand summarizedin‘‘UnderstandingProfessionalSellingTerms’’attheendofthemoduletoalertstudentstotheirimportance.
BoxedInserts. Eachmodulecontainstwoboxedinsertstitled‘‘ProfessionalSelling inthe21stCentury.’’Thecommentsintheseboxesareprovidedbymembersofour ProfessionalSellingPanelandweredevelopedspecificallyforourtext.
FigureCaptions. Everyfigureinthetextincludesasummarizingcaptiondesigned tomakethefigureunderstandablewithoutreferencetothemodulediscussion.
ModuleSummaries. Amodulesummaryrecapsthekeypointscoveredinthemodulebyrestatingandansweringquestionspresentedinthelearningobjectivesatthe beginningofthemodule.
DevelopingProfessionalSellingKnowledge. Tendiscussionquestionsarepresentedattheendofeachmoduletoreviewkeyconceptscoveredinthemodule. Someofthequestionsrequirestudentstosummarizewhathasbeencovered,while othersaredesignedtobemorethoughtprovokingandextendbeyondmodule coverage.
BuildingProfession alSellingSkills. Applicationexercisesare suppliedforeach module,requiringstudentstoapplywhathasbeenlearnedinthemoduletospecific personalsellingsituations.Manyoftheseexercisesallowstudentstorecordresponses directlyinthebook.Thisencouragesactivelearninginaworkbookformat.
MakingProfessionalSellingDecisions. Eachmoduleconcludeswithtwoshort cases.Mostofthesecasesrepresentrealisticandinterestingprofessionalsellingsituations.Manyaredesignedsothatstudentscanroleplaytheirsolutions.
SUPPLEMENTS Instructor’sResourceCD(IRCD) TheInstructor’sResourceCDdeliversallthetraditionalinstructorsupportmaterials inonehandyplace:aCD.ElectronicfilesareincludedontheCDforthecomplete Instructor’sManual,TestBank,co mputerizedTestBankandcomputerizedTest Banksoftware(ExamView),andchapter-by-chapterPowerPointpresentationfiles thatcanbeusedtoenhancein-classlectures.
Instructor’sManual
TheInstructor’sManualforthefourtheditionof ProfessionalSelling:ATrustBasedApproach containsmanyhelpfulteachingsuggestionsandsolutionstotext exercisestohelpinstructorssuccessfullyintegrateallofthematerialsofferedwith thistextintotheirclass.Eachmoduleincludesthefollowingmaterialsdesignedto meettheinstructor’sneeds.
Learningobjectives
Moduleoutlineandsummary
Ideasforstudentinvolvement
Possibleanswerstoreviewsectionsinthetext,‘‘DevelopingProfessional SellingKnowledge’’and‘‘BuildingProfessionalSellingSkills’’ Ideasforhowtoincorporatethe‘‘RolePlay’’exercisesfoundinthetextinto theclassroomsetting,aswellassuggestionsforgradingthe‘‘RolePlays’’ Suggestionsonhowtoeffectivelyintegratethevideopackageintothe classroomdiscussion
TheInstructor’sManualfilesarelocatedontheIRCDinMicrosoftWordformat. TestBank
TherevisedandupdatedTestBankincludesavarietyofmultiplechoiceandtrue/ falsequestions,whichemphasizetheimportantconceptspresentedineach chapter.TheTestBankquestionsvaryinlevelsofdifficultysothateachinstructor cantailorhisorhertestingtomeethisorherspecificneeds.TheTestBankfiles arelocatedontheIRCDinMicrosoftWordformat.
ExamView(Computerized)TestBank
TheTestBankisalsoavailableontheIRCDincomputerizedformat(ExamView), allowinginstructorstoselectproblemsatrandombylevelofdifficultyortype,
customizeoraddtestquestions,andscramblequestionstocreatenumerous versionsofthesametest.
PowerPointPresentationSlides CreatedbyScottInksofBallStateUniversity,thispackagebringsclassroom lecturesanddiscussionstolifewiththeMicrosoftPowerPointpresentationtool. Extremelyprofessorfriendlyandorganizedbychapter,thesechapter-by-chapter presentationsoutlinechaptercontent.Theeye-appealingandeasy-to-readslidesare tailoredspecificallytothe ProfessionalSelling textfromtheIngramauthorteam. ThePowerPointpresentationslidesareavailableontheIRCDandasdownloadable filesonthetextsupportsite(www.thomsonedu.com/marketing/imgram).
WebSite VisitthetextWebsiteatwww.thomsonedu.com/marketing/ingram tofind instructor’ssupportmaterialsaswellasstudyresourcesthatwillhelpstudents practiceandapplytheconceptstheyhavelearnedinclass.
StudentResources OnlinequizzesforeachchapterareavailableontheWebsiteforthosestudents whowouldlikeadditionalstudymaterials.Aftereachquizissubmitted, automaticfeedbacktellsthestudentshowtheyscoredandwhatthecorrect answersaretothequestionstheymissed.Studentsarethenabletoe-mailtheir resultsdirectlytothetheirinstructorifdesired. Crosswordquizzingofglossarytermsanddefinitionsarrangedbychapteris alsoavailableforextrareviewofkeytermsfoundinthetext. StudentscandownloadthePowerPointpresentationslidesfromtheWebsite. InstructorResources
DownloadableInstructor’sManualfilesareavailableinMicrosoftWord formatandAdobeAcrobatformat.
DownloadablePowerPointpresentationfilesareavailableinMicrosoft PowerPointformat.
Videos Inresponsetomanyrequestsforcontemporary,relevant,andup-to-datevideos,the authorsandateamofexperiencedsellingeducatorshaveupdatedthevideopackage specificallydesignedfor ProfessionalSelling:ATrust-BasedApproach,FourthEdition Thevideosillustratetheconceptsandskillsofrelationshipandconsultativeselling. Eachvideohasbeendevelopedtoaccuratelyandeffectivelydemonstrateandteach specificsellingconcepts.Experiencedactorsprovideclearexamplesandanoff-cameraspokespersonprovidesanarrativeexplanationandreinforcement.Studentsare askedtoconsiderandansweravarietyofteaching-relatedquestions.
ACKNOWLEDGMENTS Thewritingofabookisalongandarduoustaskthatrequiresthededicatedeffortsof manyindividuals.Thecontributionsoftheseindividualsaregreatlyappreciatedand deservespecialrecognition.Weareespeciallygratefulfortheeffortsofthereviewers whocontinuetohelpusmakethisagreattext.
AsubstantialamountofcreditforthisbookshouldgotoallofthewonderfulpeopleatThomsonSouth-Western.Theirexpertise,support,andconstantencouragementturnedanextremelydifficulttaskintoaveryenjoyableone.Wewouldliketo recognizespecificallythetremendouseffortsofthefollowingprofessionalsandfriends: NeilMarquardt,MikeGuendelsberger,PatrickCosgrove,ClaraKuhlman,SarahRose, andStacyShirley.Withouttheireffortsthefourtheditionwouldnothavebeen
possible.Wealsowishtothankthemanyindividualswithwhomwedidnothave directcontactbutwhoassistedinthedevelopmentandproductionofthisbook.
WearealsoveryappreciativeofthesupportprovidedbyourcolleaguesatColoradoStateUniversity,theUniversityofLouisville,CentralMissouriStateUniversity, BallStateUniversity,andIllinoisStateUniversity.Wealsowishtoextendaspecial thankstoScottA.InksofBallStateUniversity.
ThomasA.Ingram
RaymondW.LaForge
RamonA.Avila
CharlesH.Schwepker,Jr. MichaelR.Williams.
MODULEFORMAT ProfessionalSelling:ATrust-BasedApproach waswrittenforstudents.Therefore,its aimistoprovidecomprehensivecoverageofprofessionalsellinginamannerthatyou willfindinterestingandreadable.Eachmoduleblendsrecentresearchresultswith currentprofessionalsellingpracticeinaformatdesignedtofacilitatelearning.
Atthebeginningofeachmodule,‘‘Objectives’’highlightthebasicmaterialthat thestudentshouldexpecttolearn.Theselearningobjectivesarehelpfulinreviewing modulesforfuturestudy.Anopeningvignettethenillustratesmanyoftheimportant ideastobecoveredinthemodule,usingexamplesofcompaniesinvariousindustries toillustratethediversityandcomplexityofprofessionalselling.Mostofthecompaniesdescribedinthevignettesarewellknown,andmostofthesituationsrepresent recentactionsbythesefirms.
Keywordsinthebodyofeachmoduleareprintedinboldletters,andfiguresand exhibitsareusedliberallytoillustrateandamplifythediscussioninthetext.Everyfigurecontainsanexplanationsothatitcanbeunderstoodwithoutreferencetothetext. Eachmodulecontainstwoboxedinsertsentitled ProfessionalSellinginthe21st Century.Theexamplesinbothboxeshavebeenprovidedspecificallyforthistextbookbysalesexecutivesfromvariousco mpanieswhomwerecruitedtoserveasa ProfessionalSellingPanel.Toensurethatthetextbookincludesthelatestpractices fromleadingsalesorganizations,eachexecutivewasaskedtoprovidespecificexamplesof‘‘bestpractices’’intheircompany. Backgroundsofeachexecutiveareprovidedattheendofthissection.
Salespeopleareconfrontedwithvariousethicalissueswhenperformingtheirjob activities.Manyoftheseethicalissuesareaddressedin AnEthicalDilemma boxes thatappearthroughoutthemodules.Youwillbepresentedwithrealisticethicalsituationsfacedbysalespeopleandyouwillbeaskedtorecommendappropriatecoursesof action.
Amodulesummaryisgearedtothelearningobjectivespresentedatthebeginningofthemodule. UnderstandingProfessionalSellingTerms liststhekey wordsthatappearinboldthroughoutthemodule. DevelopingProfessionalSellingKnowledge presentstenquestionstohelpyoudevelopanunderstandingof importantprofessionalsellingissuesandrelationships. BuildingProfessionalSellingSkills consistsofthreeexercisesinwhichyoucanapplytheprofessionalselling knowledgelearnedinthemodule. MakingProfessionalSellingDecisions includestwointeresting casesituationsthatallowyoutomakeimportantprofessionalsellingdecisions.Ifyouunderstandprofessionalsellingterms,developprofessionalsellingknowledge,andbuildprofessionalsellingskills,youwillbeprepared tomakesuccessfulprofessionalsellingdecisions.Opportunitiesforstudentroleplays areidentifiedwiththisicon:
PROFESSIONALSELLINGPANEL TomAvila’s titleofsalesengineerforDavisand Davishashimrepresentingapproximately20differentcompaniesinprotectedterritoriesintheprocesscontrolindustry.BasedinDenver,Colorado,Tom holdsaB.S.inbusinesswithafocusinfinance,management,andmarketingfromBallStateUniversity.
DarrellBeaty ismanagerofbusinessdevelopment forOntarioSystems.Inhisposition,heprovides leadershipanddirectiontomembersofthebusiness developmentgroup.Theprimaryresponsibilityof thegroupistobuildstrongrelationshipswithstrategicclientsandassistwithstrategicgoalsof OntarioSystems.Darrell attendedBallState University.
GregBurchett isadistrictsalesmanagerforWallaceComputerServicesinFt.Wayne,Indiana.He supervisesfoursalespeoplewhosellcommercial printingandsuppliestob usinessesandorganizationalcustomers.GreghasaB.S.inmarketing fromIndianaUniversity,Bloomington.
KariDarding isamanageratWellsFargoFinancial.Kariandhersalesteamutilizethetrustbased,collaborativesellingprocesstoprovidea diversearrayoffinancialproductsdesignedto meetthespecificneedsofeachindividualcustomer. KarigraduatedfromIllinoisStateUniversitywitha degreeinmarketing.
KimDavenport isaseniordistrictsalesmanager forShering-PloughLabs.Hemanages16pharmaceuticalsalesrepresentativesinArizonaandNew Mexico.KimholdsaB.S.inmarketingandgeneral businessadministrationfromBallStateUniversity.
JohnHaack istheseniorvicepresidentofsalesand marketingforBallFosterGlass.Hehasheldvarious salesandmarketingmanagementpositionsinthe packagingindustrythroughouthiscareer.John holdsaB.S.inbusinessfromBallStateUniversity.
JerryHeffel startedwithTheSouthwesternCompanyasacollegestudentsalespersonin1965,and hasbeenpresidentofthecompanysince1980. Heisresponsibleforcurrentprofitabilityandsettingthefuturedirectionforthecompany.Jerry hasaB.A.inhistoryfromOklahomaStateUniversity,andanM.B.A.fromtheUniversityof Oklahoma.
JamieHoward isthevicepresidentofChicagobasedActiveSolutionswherehehasdirectresponsibilityformanagingtheorganization’ssalesand marketingprogramsandpersonnel.Jamiehas achievedasolidrecordofsalessuccessinthehighly competitivecontractfurnitureindustry,includinga
hostofnationalandregionaltopperformance awards.Heprovideshissalesforcewiththebenefits ofhisexceptionalknowledgeandexpertiseintrustbasedselling.Widelyknownforhisproficiencyin salestraininganddevelopment,Jamieregularly giveshistimetoworkwithuniversitysalesclasses andmentorup-and-comingsalesprofessionals. JamieholdsaB.S.inbusinesswithamajorinmarketingfromIllinoisStateUniversity.
JohnKlich isafinancialrepresentativeandcollege unitdirectorforNorthwesternMutualFinancial Network.BasedinSchaumburg,Illinois,Johnhas establishedasuccessfulcareerinlifeinsurance, investments,andfinancialplanning.Heisalso activeinandresponsibleforthedevelopmentof careeragentsandmanagesatop-rankedcollege internshipprogram.
SteveKehoe ,CFP,CLU,ispresidentofKehoe FinancialServicesLLCin Cincinnati,Ohio.Steve providesfinancialservicestomorethan1,300clients.HehasaB.S.fromBallStateUniversityand aMaster’sofSciencefromIndianaUniversity.
DavidLaube isthesecuritiesprincipalattheBloomington,IllinoisofficeofGCGFinancial.David hasbuiltasuccessfulsalesandsalesmanagement careeroverthepast20yearsbyhelpinghisclients solvecomplicatedfinanc ialproblemswithinnovativeandcustomizedsolutions.Heactivelyworks withhisdiversebaseofclients,mentors,and coacheshissalesteam,servesontheboardsof twouniversities,andhasbeenaqualifyingmember oftheMillionDollarRoundTablesince1998.In additiontohisprofessionaldesignationsofCharteredLifeUnderwriter(CLU),CertifiedFunds Specialist(CFS),andCharteredFinancialConsultant(ChFC),DavidholdsanM.A.incommunicationfromtheUniversityoflowaandaB.A.in English/speechfromtheUniversityofNorthern lowa.HeisalsoagraduateofthePurdueCollege ofManagementatPurdueUniversityandtheLeadershipForumfromtheAmericanCollegeinBryn Mawr,Pennsylvania.
JohnK.Marcum ,CFM,isvicepresident,senior financialadvisor,forMerrillLynchinIndianapolis, Indiana.JohnhasaB.S.fromBallStateUniversity.
JimMicklos isaSeniorAccountManagerwith MotivationExcellence,Inc.,Schaumburg,Illinois. Jimhasmorethan30yearssalesexperience.He startedhiscareerwiththeBeldenCorporation. JimhasaB.S.inbusinessfromBallState University.
L.A.Mitchell issalesplannerofbusinessmanagementforLucentTechnologies.Sheworkswith thesalesteamasastrategicfinancialpartnerwith thesalesdirectors,whichinvolvesfinancialanalysis, forecasting,andtheidentificationofsalesopportunities.L.A.hasaB.S.B.A.inmarketingandanM.S. inmarketingfromColoradoStateUniversity.
KellyOsterling isasalesrepresentativewithRR. DonnellyinIndianapolis,Indiana.Shehasrecently beenresponsibleforstrategicsalesplanninginher region.KellyhasaB.S.inmarketingfromBall StateUniversity.
ColeProper isthedirectorofbusinessdevelopmentatAFFINA—theCustomerRelationship CompanywherehemanagesthesalesandmarketingofAFFINA’ssuiteofoutsourcedcontactcenter servicesto Fortune500,midsize,andgovernment organizations.Coleattributeshisconsistentrecord ofsalessuccesstohisfocusoncreatingunique, valueaddedsolutionsforbusinessclients.Coleis agraduateofIllinoisStateUniversitywherehemajoredinmarketing.
SteveRoe isasalesrepresentativeforKingSystems (MedicalSupplies)Indianapo lis,Indiana.Hehas over30yearsofsalesexpe rience.StevehasaB.S. inBusinessfromBallStateUniversity.
AaronSimmons isanagentforStateFarmInsurance.Hehassucceededinestablishingandbuilding ahighlysuccessfulinsuranceandfinancialservices business.Withfullrespon sibilityforallsalesand marketingstrategiesandactivitiesrelatedtohis central-Illinois-basedagency,Aaronworksclosely withawidevarietyofconsumeraswellasbusiness clients.PriortojoiningStateFarm,Aaronwasatop performingsalespersonanddistrictmanagerwith Wallace.Hiscombinedexperiencesinsalesand marketingprovidehimwitharichbackgroundof valuablebusinessexperience,whichhereadily shareswithothersintrainingprogramsanduniversity-levelclasses.AaronisagraduateofIllinoisState University.
AdamSpangler isaninvestmentrepresentativefor EdwardD.Jones&Co.Hissalesofficeislocatedin centralIllinoiswherehehasdevelopedastrong 100-plusclientbaseconsistingofindividuals,families,andbusinesses.Hemanagesover $9,000,000inassets.AdamholdsaB.S.inbusiness withamajorinmarketingfromIllinoisState University.
MissyHarbitRust isanexecutivesalesrepresentativeforGlaxoWellcome,Inc.Herpharmaceutical accountsterritoryisincentralIndiana.Missy attendedBallStateUniversityandhasaB.S.in marketingandfashionmerchandising.
StephanieUrich isanareamanagerforHormel FoodsCorporation.Herunitisresponsiblefor foodservicesalestoinstitutionalcustomersinthe Chicagoarea.StephaniehasaB.S.inmarketing fromBallStateUniversity.
DavidWaugh isanationalaccountexecutivewith ConfioSoftwareinBoulder,Colorado.Inashort periodoftwelveyears,Davidhasestablisheda solidrecordofsuccessinsalesandmarketing rolesforcompaniessuchasADP,PlatinumTechnology,andIBM.DavidgraduatedfromIllinois StateUniversityasamarketingmajorwithaconcentrationinpersonalsellingandsales management.
DaveWheat isanareamanagerforTransWestern PublishinginMuncie,Indiana.Hehasheldvarious salesandmarketingpositionsthroughouthis career.DavehasaB.S.inmarketingfromBall StateUniversity.
JonYoung isaNationalAccountManagerwith OntarioSystemsCorporation,Muncie,Indiana. HeisresponsibleforthewesternhalfoftheUnited States.JonhasaB.S.andMBAfromBallState University.
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ThomasN.Ingram (Ph.D.,GeorgiaStateUniversity)isprofessorofmarketingand FirstBankProfessorofBusinessAdmini strationsatColoradoStateUniversity. Beforecommencinghisacademiccareer,heworkedinsales,productmanagement, andsalesmanagementwithExxonandMobil.TomisarecipientoftheMarketing EducatoroftheYearawardgivenbySalesandMarketingExecutivesInternational (SMEI).HewashonoredasthefirstrecipientoftheMuKappaTauNationalMarketingHonorSocietyrecognitionawardforOutstandingScholarlyContributionsto theSalesDiscipline.Onseveraloccasions,hehasbeenrecognizedattheuniversity andcollegelevelforoutstandingteaching.Tomhasservedastheeditorofthe JournalofPersonalSelling&SalesManagement,chairoftheSMEIAccreditationInstitute,andasamemberoftheBoardofDirectorsofSMEI.Heistheformereditorof the JournalofMarketingTheory&Practice.Tom’sprimaryresearchisinpersonal sellingandsalesmanagement.Hisworkhasappearedinthe JournalofMarketing, JournalofMarketingResearch , JournalofPersonalSelling&SalesManagement , andthe JournaloftheAcademyofMarketingScience,amongothers.Heisthecoauthorofoneofthe‘‘TenMostInfluentialArticlesofthe20thCentury’’asdesignated bytheSalesandSalesManagementSpecialInterestGroupoftheAmericanMarketingAssociation.
RaymondW.(Buddy)LaForge istheBrown-FormanProfessorofMarketingatthe UniversityofLouisville.Heisthefoundingexecutiveeditorofthe MarketingEducationReview,foundingexecutiveeditoroftheSalesEducatorNetwork,hasserved asassociateeditorfortheSalesEducationandTrainingsectionofthe JournalofPersonalSelling&SalesManagement,hascoauthored Marketing:Principles&Perspectives, SalesManagement:AnalysisandDecisionMaking, ProfessionalSelling:ATrustBasedApproach , TheProfessionalSellingSkillsWorkbook ,andcoedited Emerging TrendsinSalesThoughtandPractice .Hisresearchispublishedinmanyjournals includingthe JournalofMarketing, JournalofMarketingResearch, DecisionSciences, JournaloftheAcademyofMarketingScience,andthe JournalofPersonalSelling& SalesManagement.Buddyhasservedasvicepresident/marketingfortheAcademy ofBusinessEducation,vicepresidentof marketing,teaching,andconferencesfor theAmericanMarketingAssociationAcademicCouncil,chairoftheAmericanMarketingAssociationSalesInterestGroup,andontheDirectSellingEducationFoundationBoardofDirectorsandAcademicProgramCommittee,DuPontCorporate MarketingFacultyAdvisoryTeamfortheSalesEnhancementProcess,FamilyBusinessCenterAdvisoryBoard,andStrategicPl anningCommitteefortheNational ConferenceonSalesManagement.Hecurrentlyservesasvicechairforawardsand recognitionfortheAMASalesSIGandadministerstheAMASalesSIG/DSEF SalesDissertationGrants.
CharlesH.Schwepker,Jr. (Ph.D.,UniversityofMemphis)isProfessorofMarketingattheUniversityofCentralMissouri.Hehasexperienceinwholesaleandretail sales.Hisprimaryresearchinterestsareinsalesmanagement,personalselling,and marketingethics.Hisarticleshaveappearedinthe JournaloftheAcademyofMarketingScience ,the JournalofBusinessResearch ,the JournalofPublicPolicyand
Marketing , JournalofPersonalSelling&SalesManagement , JournalofService Research,andthe JournalofBusinessEthics,amongotherjournals,variousnational andregionalproceedings,andbooksincluding MarketingCommunicationsClassics and EnvironmentalMarketing.Hehasreceivedbothteachingandresearchawards, includingtheJamesComerAwardforbestcontributiontosellingandsalesmanagementtheoryawardedbythe JournalofPersonalSelling&SalesManagement andtwo ‘‘OutstandingPaper’’awardsattheNation alConferenceinSalesManagement, amongothers.Heisontheeditorialreviewboardsofthe JournalofPersonalSelling &SalesManagement, JournalofMarketingTheory&Practice, JournalofBusiness& IndustrialMarketing , JournalofRelationshipMarketing , JournalofSellingand MajorAccountManagement,andthe SouthernBusinessReview,andhastwicewon awardsforoutstandingreviewer.Heisacoauthorof SalesManagement:Analysis andDecisionMaking
RamonA.Avila (Ph.D.,VirginiaTechUniversity)istheGeorgeandFrancesBall DistinguishedProfessorofMarketingatBallStateUniversity.Beforecomingto BallState,heworkedinsaleswiththeBurroughsCorporation.HehasheldtwovisitingprofessorshipsattheUniversityofHawaiiandanotherattheKelleySchoolof BusinessatIndianaUniversity.In2003,RamonearnedBallState’sOutstandingFacultyAward.InApril2002,RamonreceivedaLeaveyAward.Thisawardwasgivenfor innovationintheclassroomwithhisadvancedsellingclass.Ramonwaspresentedthe 1999MuKappaTau’sOutstandingContributortotheSalesProfession.Heisonly thethirdrecipientofthisaward.RamonhasalsoreceivedtheUniversity’sOutstandingServiceaward,theUniversity’sOutstandingJuniorFacultyaward,theCollegeof BusinessProfessoroftheYear,andtheDean’sTeachingawardeveryyearsinceits inceptionin1987.Ramonalsositsonfiveeditorialreviewboards.Ramon’sprimary researchisinpersonalsellingandsalesmanagement.Hisworkhasappearedinthe JournalofMarketingResearch , JournalofPersonalSelling&SalesManagement , TheJournalofManagement , IndustrialMarketingManagement , TheMarketing ManagementJournal ,andthe JournalofMarketingTheory&Practice ,among others.Heisthecoauthorof TheProfessionalSellingSkillsWorkbook
MichaelR.Williams (Ph.D.,OklahomaStateUniversity)isprofessorofmarketing anddirectoroftheProfessionalSalesInstituteatIllinoisStateUniversity.Priortohis academiccareer,Mikeestablishedasuccessful30-plusyearcareerinindustrialsales, marketresearch,andsalesmanagementandcontinuestoconsultandworkwitha widerangeofbusinessorganizations.Hehasco-authored TheProfessionalSelling SkillsWorkbook,SalesManagement:AnalysisandDecisionMaking,andavarietyof executivemonographsandwhite-papersonsalesperformancetopics.Mike’sresearch hasbeenpublishedinmanydifferentnationalandinternationaljournalsincluding the JournalofPersonalSelling&SalesManagement, InternationalJournalofPurchasingandMaterialsManagement, JournalofBusinessandIndustrialMarketing, QualityManagementJournal,and JournalofIndustrialTechnology. Hisworkhas alsoreceivednumeroushonors,includingOutstandingArticlefortheYearin Journal ofBusinessandIndustrialMarketing,theAACSB’sLeadershipinInnovativeBusinessEducationAward,andtheMarketingScienceInstitute’sAldenG.Clayton Competition.In2004,MikewashonoredwiththeMuKappaTauMarketingSocietyrecognitionawardforOutstandingScholarlyContributortotheSalesDiscipline. Hehasalsobeenhonoredwithnumerousuniversity,college,andcorporateteaching andresearchawardsincludingOldRepublicResearchScholar,thepresentationofa seminaratOxford’sBraesnoseColl ege,Who’sWhoinAmericanEducation,and Who’sWhoinAmerica.Mikehasandcontinuestoserveinleadershiprolesasan advisorandboardmemberforsalesandsalesmanagementassociationsandorganizationsincludingtheUniversitySalesCenterAlliance,NationalConferenceinSales andSalesManagement,andVectorMarketing.
MODULE 1 Objectives Aftercompletingthismodule, youshouldbeableto
1Describetheevolution ofpersonalsellingfrom ancienttimestothe modernera.
2Explainthecontributions ofpersonalsellingto society,businessfirms, andcustomers.
3Distinguishbetween transaction-focused traditionalsellingand trust-basedrelationship selling.
4Discussfivealternative approachestopersonal selling.
5Describethethree primaryrolesfulfilledby consultativesalespeople.
6Understandthesales processasaseries ofinterrelatedsteps.
EVOLUTIONOFPERSONALSELLING Thesuccessfulprofessionalsalespersonoftodayandthefutureislikelyabetterlistener thanatalker,ismoreorientedtowarddevelopinglong-termrelationshipswithcustomersthanplacinganemphasisonhigh-pressure,short-termsalestechniques,and hastheskillsandpatiencetoendurelengthy,complexsalesprocesses.Likethesalespeopleintheopeningvignette,today’ssalespersonstrivestodeliverrelevantpresentationsbasedonuniquecustomerneeds,andmeetingthosecustomerneedsrequires teamworkbetweensalespeopleandothersintheorganization.Formoreonteamwork, see‘‘ProfessionalSellinginthe21stCentury:TheImportanceofTeamworkinSales.’’ Personalselling isanimportantpartof marketing,whichisusuallyaseparateorganizationalfunctionthatcreates,communicates,anddeliversvaluetocustomersandmanagescustomerrelationshipsinwaysthatbenefitboththeorganizationandits
TheImportanceofTeamworkinSales JerryHeffel,presidentoftheSouthwestern Company,offershisperspectiveonteamwork:
Sometimesthesalespersonisreferredtoasthelead carinthebusinesstrain.Butjusthavingaleadcar doesn’tmakeatrain.Forthisreason,asalesperson whoiseffectivelongtermisalsoaneffectiveteam player—heorsherealizestheyneedcoordinated involvementfrommanydifferentpartsofthe
organizationinordertoservethecustomer.Atthe sametime,whenevertheyseethemselvesaspartofthe customer’steam,andthattheyarebothstrivingfor thesameoutcome,theybecomeanindispensablepart ofthevaluechainforthatcustomer.Southwestern’s salestrainingphilosophystress esthisteamaspect: Wetelloursalespeoplethattheyarethegasandoilof thefreeenterprisesystem,buttheyalsoneedthetires, thecarbody,thedrivetrain,andwhat’sinthetrunk togetanywheresignificant.
stakeholders.1 Personalsellingalsoinvolvescreating,communicating,and deliveringcustomervalue,and trust-basedprofessionalselling (aformofpersonalselling)focusesprimarilyoninterpersonalcommunicationbetweenbuyersandsellerstoinitiate,developandenhancecustomerrelationships.Itrequiresthatsalespeopleearn customertrustandthattheirsellingstrategymeetscustomerneedsanddeliversvalue.
Theinterpersonalcommunicationsdimensionsetspersonalsellingapartfromother marketingcommunicationssuchasadvertisingandsalespromotion,whicharedirected atmassmarkets.Personalsellingisalsodistinguishedfromdirectmarketingandelectronic marketinginthatsalespeoplearetalkingwithbuyersbefore,during,andafterthesale. Thisallowsahighdegreeofimmediatecustomerfeedback,whichbecomesastrong advantageofpersonalsellingovermost otherformsofmarketing communications.
Althoughadvertisingisfarmorevisibletothegeneralpublic,personalsellingis actuallythemostimportantpartofmarketingcommunicationsformostbusinesses. Thisisparticularlytrueinfirmsthatengageinbusiness-to-businessmarketing,where moremoneyisspentonpersonalsellingthanonadvertising,salespromotion,publicity,orpublicrelations.Inthisbook,wetypicallydescribepersonalsellinginthis business-to-businesscontext,inwhichasalespersonorsalesteaminteractswith oneormoreindividualsfromanotherorganization.
Aspersonalsellingcontinuestoevolve,itismoreimportantthaneverthatsalespeoplefocusondeliveringcustomervaluewhileinitiating,developing,andenhancing customerrelationships.Whatconstitutesvaluewilllikelyvaryfromonecustomerto thenextdependingonthecustomer’ssituation,needs,andpriorities,but customer value willalwaysbedeterminedbycustomers’perceptionofwhattheygetin exchangeforwhattheyhavetogiveup.Inthesimplestsituations,customersbuya productinexchangeformoney.Inmostsituations,however,customersdefine valueinamorecomplexmanner,byaddressingquestionssuchas:
Doesthesalespersondoagoodjobinhelpingmemakeorsavemoney?
Isthissalespersondependable?
Doesthissalespersonhelpmeachievemystrategicpriorities?
Isthesalesperson’scompanyeasytoworkwith,i.e.,hassle-free?
Doesthesalespersonenlistothersinhisorherorganizationwhenneededtocreate valueforme?
Doesthesalesrepresentativeunderstandmybusinessandmyindustry?
Anotherimportantdevelopmentinpersonalsellingistherecognitionthatcustomerswanttobeheardloudandclearwhenexpressingwhattheywantfromsuppliersandtheirsalespeople.Indaysgoneby,asillustratedintheopeningvignette, personalsellingoftenconsistedofdeliveri ngamessageormakingapitch.That approachwastypicallyassociatedwitha‘‘productpush’’strategyinwhichcustomers werepressuredtobuywithoutmuchappreciationfortheirrealneeds.Today’sales organizationsarefarmoreinterestedinestablishingaproductivedialoguewithcustomersthaninsimplypitchingproductsthatcustomersmayormaynotwantor
need.Inourhighlycompetitiveworld,professionalbuyershavelittletolerancefor aggressive,pushysalespeople.
Salesdialogue referstotheseriesofconversationsbetweenbuyersandsellersthat takeplaceovertimeinanattempttobuildrelationships.Thepurposesoftheseconversationsareto:
determineifaprospectivecustomershouldbetargetedforfurthersalesattention. clarifytheprospectivecustomer’ssituationandbuyingprocesses. discovertheprospectivecustomer’suniqueneedsandrequirements. determinetheprospectivecustomer’sstrategicpriorities. communicatehowthesalesorganizationcancreateanddelivercustomervalue. negotiateabusinessdealandearnacommitmentfromthecustomer. makethecustomerawareofadditionalopportunitiestoincreasethevalue received.
assesssalesorganizationandsalespersonperformancesothatcustomervalueis continuouslyimproved.
Asyoucansee,salesdialogueisfarmorethanidlechitchat.Thebusinessconversationsthatconstitutethedialoguearecustomer-focusedandhaveaclearpurpose; otherwisetherewouldbeahighprobabilityofwastingboththecustomer’sand thesalesperson’stime,whichnoonecanafford intoday’sbusin essenvironment. Whetherthesalesdialoguefeaturesaquestion-and-answerformat,aconversation dominatedbythebuyerconveyinginformationandrequirements,oraformalsales presentationinwhichthesalespersonrespondstobuyerfeedbackthroughout,the keyideaisthatbothpartiesparticipateinandbenefitfromtheprocess.
Throughoutthiscourse,youlearnaboutnewtechnologiesandtechniquesthat havecontributedtotheevolutionofthe practiceofpersonalselling.Thismodule providesanoverviewofpersonalselling,affordinginsightintotheoperatingrationaleoftoday’ssalespeopleandsalesmanagers.Italsodescribesdifferentapproachesto personalsellingandpresentsthesalesprocessasaseriesofinterrelatedsteps.The appendixattheendofthemodulediscussesseveralimportantaspectsofsalescareers, includingtypesofsellingjobsandcharacteristicsandskillsneededforsalessuccess. Inthehighlycompetitive,complexenvironmentoftheworldbusinesscommunity, personalsellingandsalesmanagementhaveneverplayedmorecriticalroles.
OriginsofPersonalSelling AncientGreekhistorydocumentssellingasanexchangeactivity,andtheterm salesman appearsinthewritingsofPlato.2 However,truesalespeople,thosewhoearneda livingonlybyselling,didnotexistinanysizablenumberuntiltheIndustrialRevolutioninEngland,fromthemid-eighteenthcenturytothemid-nineteenthcentury. Priortothistime,traders,merchants,andartisansfilledthesellingfunction.These predecessorsofcontemporarymarketerswere generallyviewedwithcontempt becausedeceptionwasoftenusedinthesaleofgoods.3
InthelatterphaseoftheMiddl eAges,thefirstdoor-to-doorsalesperson appearedintheformofthepeddler.Peddlerscollectedproducefromlocalfarmers, soldittotownspeople,and,inturn,boughtmanufacturedgoodsintownforsubsequentsaleinruralareas. 4 Likemanyotherearlysalespeople,theyperformedother importantmarketingfunctions—inthiscase,purchasing,assembling,sorting,and redistributingofgoods.
IndustrialRevolutionEra AstheIndustrialRevolutionbegantoblossominthemiddleoftheeighteenthcentury,theeconomicjustificationforsalespeoplegainedmomentum.Localeconomies werenolongerself-sufficient,andasintercityandinternationaltradebegantoflourish,economiesofscaleinproductionspurredthegrowthofmassmarketsingeographicallydispersedareas.Thecontinualneedtoreachnewcustomersinthese dispersedmarketscalledforanincreasingnumberofsalespeople.
Itisinterestingtonotethejobactivitiesofthefirstwaveofsalespeopleintheera oftheIndustrialRevolution.Thefollowingquotationdescribesasalespersonwho servedthecustomerinconjunctionwithaproducer:
Thus,asalesmanrepresentingtheproducingfirm,armedwithsamplesof thefirm’sproducts,couldbringthelattertotheattentionofalargenumberofpotentialcustomers—whetherbuyingforsaletoothersorfortheir ownproductionrequirements—whomightnot,withoutthesalesman’s visit,havelearntoftheproduct’sexistence,andgivethemtheopportunityofexamininganddiscussingitwi thouthavingtogooutoftheir waytodoso .Evenifthesalesmandidnotsucceedinobtainingan order,hefrequentlypickedupvaluableinformationonthestateofthe market,sometimestheveryreasonsforrefusal ... .Thisinformation couldbeveryusefultotheproducer.5
Post–IndustrialRevolutionEra Bytheearly1800s,personalsellingwaswell-establishedinEnglandbutjustbeginningtodevelopintheUnitedStates.6 Thissituationchangednoticeablyafter1850, andbythelatterpartofthecentury,salespeoplewereawell-establishedpartofbusinesspracticeintheUnitedStates.Forexample,onewholesalerintheDetroitarea reportedsendingout400travelingsalespeopleinthe1880s.7
Atthedawningofthetwentiethcentury,anexcitingtimeintheeconomichistory oftheUnitedStates,itbecameapparentthatmarketing,especiallyadvertisingand personalselling,wouldplayacrucial roleintherapidtransitionoftheeconomy fromanagrarianbasetooneofmassproductionandefficienttransportation.
Glimpsesofthelivesofsalespeopleintheearly1900s,gainedfromliteratureof thatperiod,revealanadventuresome,aggressive,andvaluablegroupofemployees oftenworkingonthefrontierofnewmarkets.Already,however,theindependent mavericksalespeoplewhohadblazedtheearlytrailstonewmarketswerebeginning todisappear.Oneclearindicationthatsellingwasbecomingamorestructuredactivitywasthedevelopmentofa cannedsalespresentation byJohnH.Pattersonofthe NationalCashRegisterCompany(NCR).Thispresentation,avirtualscripttoguide NCRsalespeopleonhowtosellcashregisters,wasbasedonthepremisethatsalespeoplearenot‘‘born,butrathertheyaremade.’’8
Saleshistoriansnotedthechangesoccurringinpersonalsellingintheearlytwentiethcentury.CharlesW.Hoyt,authorofoneofthefirsttextbooksonsalesmanagement,chronicledthistransitionin1912,notingtwotypesofsalespeople:
Theoldkindofsalesmanisthe‘‘bigme’’species .Heworksforhimself and,sofaraspossible,accordingtohisownideas .Thereisanother typeofsalesman.Heisthenewkind.Atpresentheisintheminority, butheworksforthefastestgrowingandmostsuccessfulhousesofthe day.Heworksforthehouse,andthehouseworksforhim.Hewelcomes anduseseverybitofhelpthehousesendstohim.9
Hoyt’sobservationsaboutthe‘‘old’’andthe‘‘new’’salespersonsummedupthe changingroleofpersonalselling.Them anagementsoffirmsintheUnitedStates werebeginningtounderstandthetremendouspotentialofpersonalsellingand, simultaneously,theneedtoshapethegrowthofthesalesfunction.Inparticular,a widespreadinterestaroseinhowtoreducethecostofsales.AccordingtoHoyt, thisdidnotmeanhiringlower-costsalespeople,butinsteadcalledfor‘‘distributing muchlargerquantitiesofgoodswithlessmotion.’’10
WarandDepressionEra The30-yearspanfrom1915to1945wasmarkedbythreeoverwhelmingevents— twoworldwarsandtheGreatDepressionintheUnitedStates.Becauseeconomic
activityconcentratedonthewarefforts,newsalesmethodsdidnotdevelopquickly duringthoseperiods.DuringtheGreatDepression,however,businessfirms,starved forsalesvolume,oftenemployedaggressivesalespeopletoproducebadlyneededrevenue.Then,withrenewedprosperityinthepost–WorldWarIIera,salespeople emergedasimportantemployeesforanincreasingnumberoffirmsthatwerebeginningtorealizethebenefitsofresearch-basedintegratedmarketingprograms.
Professionalism:TheModernEra Inthemiddle1940s,personalsellingbecamemoreprofessional.Notonlydidbuyers begintodemandmorefromsalespeople,buttheyalsogrewintolerantofhigh-pressure, fast-talkingsalespeople,preferringinsteadawell-informed,customer-orientedsalesperson.In1947,the HarvardBusinessReview published‘‘Low-PressureSelling,’’11 aclassic articlefollowedbymanyothersthatcalledforsalespeopletoincreasetheeffectivenessof theirsaleseffortsbyimprovingtheirprofessionaldemeanor.
Anemphasison salesprofessionalism isthekeynoteofthecurrentera.Theterm hasvariedmeanings,butinthisc ontextweuseittomeanacustomer-oriented approachthatusestruthful,nonmanipulativetacticstosatisfythelong-termneeds ofboththecustomerandthesellingfirm.Theeffectivesalespersonoftodayisno longeramerepresenterofinformationbut nowmuststandequippedtorespond toavarietyofcustomerneedsbefore,during,andafterthesale.Inaddition,salespeoplemustbeabletoworkeffectivelywithothersintheirorganizationstomeet orexceedcustomerexpectations.
Inexaminingthestatusofsalesasatrueprofession,onestudyfoundthatsales meetsfourofthesixcriteriathatdefineprofessions,andthatprogressisstillneeded ontheothertwodimensions.12 Thisstudyconcludedthatsalesmeetsthecriterion ofoperatingfromasubstantialknowledgebasethathasbeendevelopedbyacademics,corporatetrainersandexecutives,andprofessionalorganizations.Salesalso meetsthecriterionofmakingasignificantcon tributiontosociety,whichisdiscussedinthenextsectionofthismodule.Third,throughprofessionalorganizations suchastheStrategicAccountManage mentAssociation(SAMA)andthrougha commonsalesvocabularysuchasthatf oundintextbooksand trainingmaterials, salesmeetstheprofessionalcriterionofhavingadefinedcultureandorganization ofcolleagues.Fourth,s alesdoeshaveauniquesetofprofessionalskills,though theseskillsvarydependingonthespecificnatureofagivensalesposition.
Twoareasinthestudyindicatedthatsalesneedsadditionalprogresstobeviewedas aprofessiononaparwithlaw,medicine,andotherlong-recognizedprofessions.The firstareahastodowithhowmuchautonomysalespeoplehavetomakedecisionsand theamountofpublictrustgrantedtosalespeople.Whilemanybusiness-to-business salespeoplehaveconsiderabledecision-makingautonomy,othershaveverylittle.PublictrustcouldbeimprovedbyawidelyacceptedcertificationprogramsuchastheCPA designationforaccountants.Atpresent,however,veryfewsalespeoplehaveprofessionalcertificationcredentials.Whilemanysalespeopledohaveconsiderableautonomy, publictrustincertificationprogramsismodest;thustheresultsaremixedasto whetherthesalesprofessionmeetsthisprofessionalcriterion.
Thefinalareawheresalesneedstoimproveistoadheretoauniformethicalcode. Whilemanycompanieshaveethicalcodesandsomeprofessionalorganizationshave ethicalcodesforsalespeople,thereisnouniversalcodeofethicswithamechanism fordealingwithviolators.Untilsuchacodeisdevelopedandwidelyacceptedinbusiness,somemembersofsocietywillnotviewsalesasatrueprofession.
Whetherornotsalesisviewedasatrueprofession,comparabletolawandmedicine,salespeoplecanbenefittremendouslybyembracinghighethicalstandards,participatinginprofessi onalorganizations,andworking fromacontinuallyevolving knowledgebase.Insodoing,theywillnot onlybemoreeffective,theywillalso helpadvancesalesasatrueprofession.
Futureevolutionisinevitableastomorrow’sprofessionalsalespersonrespondsto amorecomplex,dynamicenvironment.Also,increasedsophisticationofbuyersand
EXHIBIT1.1 ChangeSalesforceResponse IntensifiedcompetitionMoreemphasisondevelopingandmaintainingtrust-based, long-termcustomerrelationships
Moreemphasisonimproving salesproductivity
Fragmentationoftraditional customerbases
Customersdictatingquality standardsandinventory/ shippingprocedurestobe metbyvendors
Demandforin-depth, specializedknowledgeasan inputtopurchasedecisions
Morefocusoncreatinganddeliveringcustomervalue
Increaseduseoftechnology(e.g.,laptopcomputers,electronic mail,databases,customerrelationshipmanagementsoftware)
Increaseduseoflower-cost-per-contactmethods (e.g.,telemarketingforsomecustomers)
Moreemphasisonprofitability(e.g.,grossmargin)objectives
Salesspecialistsforspecificcustomertypes
Multiplesaleschannels(e.g.,majoraccountsprograms, telemarketing,electronicnetworks)
Globalizationofsalesefforts
Teamselling
Salesforcecompensationsometimesbasedoncustomer satisfactionandteamperformance
Moreemphasisonsalesdialoguesratherthansalespitches
Teamselling
Moreemphasisoncustomer-orientedsalestraining
ofnewtechnologieswilldemandmorefro mthenextgenerationofsalespeople. Exhibit1.1summarizessomeofthelikelyeventsofthefuture.13
CONTRIBUTIONSOFPERSONALSELLING Asmentionedearlierinthismodule,moremoneyisspentonpersonalsellingthanon anyotherformofmarketingcommunicati ons.Salespeopleareusuallywellcompensated,andsalesforcesofmajorcompani esoftennumberinthethousands. Forexample,Microsofthas16,000salespeople,AmericanExpresshas23,000,and Pepsicohas36,000.14
Wenowtakealookathowthisinvestmentisjustifiedbyreviewingthecontributionsofpersonalsellingtosocietyingeneral,totheemployingfirm,andto customers.
SalespeopleandSociety Salespeoplecontributetotheirnations’economicgrowthintwobasicways.Theyact asstimuliforeconomictransactions,andtheyfurtherthediffusionofinnovation.
SalespeopleasEconomicStimuli Salespeopleareexpectedtostimulateactionin thebusinessworld—hencetheterm economicstimuli.Inafluctuatingeconomy,salespeoplemakeinvaluablecontributionsbyassistinginrecov erycyclesandbyhelping tosustainperiodsofrelative prosperity.Astheworldeconomicsystemdealsw ithissuessuchasincreasedglobalizationofbusiness,moreemphasisoncustomersatisfaction,andbuildingcompetitivenessthroughqualityimprovementprograms,itisexpectedthatsalespeoplewill berecognizedasakeyforceinexecutingthea ppropriatestrategiesandtacticsnecessaryforsurvivalandgrowth.
