Professional Salesmanship-Chap02.ppt

8/12/2019 Professional Salesmanship-Chap02.ppt

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FUNDAMENTALS OF SELLINGCustomers For Life Through Service

13th

Edition

Charles M Futrell


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Relationship Marketing:

Where Personal SellingFits

Chapter

2


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Chapter

2

2-3


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The Purpose of Business is to:

Increase the general well being of humankind

through the sales of goods and services


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This Requires

Making a profit in order to operate the

business and to provide beneficial products

to the marketplace


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Profit is a Means to an End

Profit is needed to serve humankind

Profit is needed to operate the business

Profit is needed to provide products to the

marketplace


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The Two Basic Functions and Goal

of Business

Two Basic Functions of Business

Production of goods or creating of services

Marketing those goods and services

The Primary Goal of Business

Transform marketplace and workplace into an

environment where everyone is treated fairly


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What is Marketing? Marketing is the activity, set of institutions, and

processes for creating, communicating,

delivering, and exchanging offerings that have

value for customers, clients, partners, andsociety at large.


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The Production Concept

Companies are production oriented

We know what

people want theywant our product.


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The Selling Concept

Characterized by product demonstrations and

unsophisticated sales techniques

Emphasis on the product

Product created and then sold

Management is sales-volume oriented

Stresses needs of the seller


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The Marketing Concept

Emphasis is on customers wants

Customers wants drive production

Management is profit-oriented

Planning is long-term

Stresses wants of buyers


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Marketings Importance in the

Firm

Marketers have four main objectives:

Maximize the sales for existing products in

existing markets

Develop and sell new products

Develop new markets for existing or new

products

Provide quality service to ensure repeatbusiness


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Exhibit 2.2: The Marketing Group is the Link

Between Customers and the Organization


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Product: Its More Than You Think

A goodis a physical object that can be

purchased

A serviceis an action or activity performed

for a fee

Value-added refers to benefits received that

are not included in the purchase price of a

good or service


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Exhibit 2.3: Four Elements of the Marketing

Mix and Four Promotion Activities


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What is Meant by the Term

Product?A productis a bundle of tangible and

intangible attributes, including package, color,

and brand, plus the services and even the

reputation of the seller


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The Term Product May Refer to a

Good or Service

Examples

Goods - a physical object for sale

Automobile

Cell phone Prescription medicine

Services - an action or activity done for

others for a fee

Automobile repair

Wireless phone plan

Health insurance


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The Good and the Service:

Automobile - repair services

Cell phone - wireless phone plane

Prescription medicine - health insurance


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We Will Use the Terms Follow-up and

Service. What do They Mean?

Follow-uprefers to maintaining contact with acustomer in order to evaluate the

effectiveness of the product and the

satisfaction of the customer (More on this inChapter 14)


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The Term Service May Refer to A:

Product, as insurance and advertise which issold by someone

Service, as customer servicewhich is an

activity offered by a seller in conjunction withthe purchase of a product, such as delivery,

repair, credit cards accepted, 800 telephone

number, web site, salesperson available tohelp customer (More on this in Chapter 14)


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Customer Service by the Salesperson

Include:

Salesperson goes to customers business tohelp:

Resell products

Customer use productHandling complaints

Return damaged products

Provide samples

Suggest further business opportunities

(Above discussed in Chapter 1)


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People Buy More Than the Product

People buy want-satisfaction as

Image of owning as a

Polo shirt vs. Wal-Mart shirt

Dodge Viper* vs. Volkswagen Vanagon*What the product will do

Its quality

*products and associated images used for illustrative purposes only


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What is a consumer product?

A consumer product is produced for, and

purchased by, households or end consumers

for their personal use What is an example of a consumer product?

Toothpaste

TelevisionClothes

There Are Two General Types of Products -

Consumer and Industrial Products


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There Are Two General Types of Products-

Consumer and Industrial Products Cont

What is industrial product?

An industrial product is sold primarily for use

in producing other products. Industrial users

are profit/nonprofit organizations that buygood and services for one of three purposes

1.To make other goods and services

2.To sell to consumer or other industrial users3.To conduct the organizations operations


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The Key Phrases That Differentiate Between

Consumer and Industrial Products are:

Consumer product - personal use

Industrial product - producing other products

What is an example of an industrial product?

Airlines purchase airplanes

Boeing sells their airplanes to airlines

University buys computers


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Price: Its Important to Success

Price refers to the value or worth of a productthat attracts the buyer to exchange money or

something of value for the product


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Distribution Moves

Products to Customers

Three Customer Groups

A householdrefers to a decision-making unit

that buys for personal use

A firm is an organization that produces goods

and services

A government is an organization that has two

functions: The provision of goods and services to households and

firms

The redistribution of income and wealth

Cons mer and Ind strial Prod cts are


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Consumer and Industrial Products are

Often Distributed Through Resellers

What are Resellers?

Resellers, such as wholesalers or retailers,

purchase products and then sell to

organizations and/or individuals


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What Is a Wholesaler? The Wholesaler

(May Be Referred to as a Distributor)

Primarily engaged in buying, taking title to,

usually storing and physically handling goods

in large quantities, and reselling the goods,

usually in smaller quantities to

Retailers

Wholesalers

Manufacturers


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Exhibit 2.5: Examples of Distribution Channels for

Consumer and Industrial Products


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Promotion Tells People

Promotion increases sales by communicatingproduct information to potential customers

The four basic components of a firms

promotional effort are: (PAPS)Personal selling

Advertising

PublicitySales promotion


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Exhibit 2.7: Examples of Each

Marketing Mix Element


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Relationship Marketing

Relationship marketing is thecreation of customer loyalty

Targets a major customer

that it wants to sell to nowand in the future

Establishes a long-term

collaborative relationship

R l ti hi M k ti d


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implement

relationship

marketing

Relationship Marketing and

the Sales Force

Salespeople

Th L l f R l ti hi


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Three Levels of Relationship

Marketing

Transaction selling: customers are sold to

and not contacted again

Relationship selling: the seller contacts

customers after the purchase to determine if

they are satisfied and have future needs

Partnering: the seller works continually to

improve its customers operations, sales, and

profits

P i i h C


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Partnering with Customers

Encourages both thebuyer and seller to

share information

Two companies worktoward the same

objective

C lt ti S lli


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Consultative Selling

The process of helping the customer achievestrategic short and long-term goals through

the use of the sellers goods and/or services

A highly interactive dialogue between asalesperson and a customer

A balanced exchange of information


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Three Consultative Selling Roles for

the 21stCentury

Exhibit 2 11: Marketing and Personal


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Exhibit 2.11: Marketing and Personal

Selling Provide Service to Customers

Documents

Professional Salesmanship-Chap02.ppt