MKTG476:

Lesson Overview

Throughout this lesson, we will focus on strategies that takes us through the personal selling process as we learn how to discover customers' needs and subsequently provide a presentation about matching features, finishes, and benefits to help satisfy those needs. Modern salespeople think of themselves more like consultants than salespeople—there to help prospects rather than only to sell them something. This is relevant not only from an ethical standpoint but also from the perspective of creating lifetime customers and generating referrals. If we practice a personal selling strategy, we will not only get return customers but also word-of-mouth referrals, which are the strongest form of positive communication involved with our marketing efforts.  Nonetheless, sometimes we may not make the sale. However, with a qualified rejection, the prospect may be likely to spread the news about what we have to offer, and therefore we may increase our customer base in that way.

Personal selling is indispensable to marketing. In this lesson, we will learn how personal selling’s significance in marketing and how key salespeople roles (i.e., financial contributors, change agents, communication agents and customer value agents) are substantial roles in a team. We will also explore the difference between a trust-based relationship selling process and transactional selling. In line with that, we will discuss the selling strategies and the key elements of customer value, together with alternative personal selling approaches. These alternative approaches and adaptive selling methods are stimulus response, mental states, problem solving, needs satisfaction, and consultative. Finally, we will discuss the current trends in professionalism, which are complexity, collaboration, and accountability.

Lesson Objectives

After completing this lesson, you should be able to do the following:

• Describe the role of personal selling in marketing.

• Discuss the key roles of salespeople as financial contributors, change agents, communications agents, and customer value agents.

• Explain the trust-based relationship selling process and how it differs from transactional selling.

• Explain the concept of selling strategy with its key elements of customer value and alternative personal selling approaches.

• Explain adaptive selling and the five alternative approaches to selling: stimulus response, mental states, problem solving, needs satisfaction, and consultative.
• Discuss current trends in sales professionalism: complexity, collaboration, and accountability.

Lesson Road Map

By the end of this lesson, make sure you have completed the readings and activities found in the Lesson 2 Course Schedule.

Five Approaches to Personal Selling and Skills

Ingram et al. (2015) indicate that personal selling is especially critical for companies that sell to other businesses, and they explain that this does not mean that personal selling is unimportant to retailers and others who sell directly to ultimate consumers. Instead, they state,

Salespeople are used in a variety of sectors, including retailing, automotive, real estate, insurance and financial services, among others. They are particularly useful for selling high dollar items and relatively expensive unsought goods and services. In the case of a company such as Tupperware, they provide an alternative means for distributing product to consumers. (Chapter 2, p. 5)

Figure 2.1 shows five approaches to personal selling

As the text explains, as the level of need and strategic priorities increases, an inceasing level of adaptive selling is required. Customers should be prioritized in terms of salesforce focus and effort to cater to consultative selling of the prospects that are most promising in terms of customer lifetime value. However, although this is generally the case, this depends on the goals of the organization and corporate mission, as some organizations may be more focused on transactions and high volume, they may not want to invest resources in collaborative selling.

1. stimulus response,
2. mental states,
3. problem solving,
4. need satisfaction, and
5. consultative selling.

Listening and Questioning Skills

Ingram et al. (2015) discuss that different approaches require different skills. In terms of listening and questioning skills, they point out that "listening and questioning skills are most often utilized in need satisfaction, problem-solving and consultative selling approaches" (Chapter 2, p. 6).

Below is their explanation how those two skills are needed in those approaches:

• Need satisfaction selling focuses on the customer. Salespeople use questions to uncover buyer needs, and the customer typically dominates the sales interaction until needs have been established. At that point, the salesperson moves to a more active selling role, describing how their offering can satisfy the buyer’s needs.
• Problem-solving selling extends need satisfaction selling beyond identifying needs to developing alternative solutions for satisfying these needs. This typically requires extensive questioning and listening very carefully to customer concerns.
• Consultative selling is the process of helping customers reach their strategic goals by using the products, services, and expertise of the sales organization. Consultative selling requires that the salesperson be an expert on the customer’s business, competitors, and market developments. (Ingram et al., 2015, Chapter 2, p. 6)

Ingram et al. (2015) emphasize that "to truly understand a customer’s business, the salesperson must be heavily involved in questioning and listening. Questioning and listening is also important as salespeople often must garner the support of others within their organization to help solve customer problems" (Chapter 5, p. 6).

Sales Dialogue

Ingram et al. (2015) also point out that the three approaches mentioned above (need satisfaction selling, problem-solving selling, and consultative selling) are most likely to involve sales dialogue. They provide the following explanation:

Sales dialogue involves business conversations that take place over time as salespeople attempt to initiate, develop, and enhance relationships with customers. It features a back-and-forth, two-way conversation between buyers and sellers, with both parties benefiting from their participation. Common sales dialogues include:

• determining if a prospective customer has the financial resources and an adequate interest in making a future purchase to warrant additional follow-up
• assessing the prospective customer’s situation and buying processes
• discovering the prospective customer’s specific needs and requirements
• confirming the prospective customer’s strategic priorities
• illustrating how the sales organization can create and deliver customer value
• negotiating an agreement to do business
• building customer value by providing additional opportunities
• assessing the extent to which the customer is satisfied with the value received. (Chapter 2, p. 6)

 

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Reference

Ingram, T. N., LaForge, R. W., Avila, R. A., Schwepker, C. H., Jr., & Williams, M. R. (2015). Instructor manual for Sales management: Analysis and decision making (9th ed.). New York, NY: Routledge.

Key Roles of Salespeople

Ingram et al. (2015) are aware that fielding a large sales force is an expensive proposition, and they provide their suggestion on how companies make this investment pay off in terms of the key roles fulfilled by salespeople:

Companies expect salespeople to fulfill four key roles: financial contributor, change agent, communications agent and customer value agent. As financial contributors, salespeople generate company revenue by making sales, increasingly in a productive manner. Acting as change agents, salespeople help with the diffusion of innovation and contribute to improved business practices. While serving as communications agents, salespeople facilitate communication between their company and its customers, while impacting the value received by customers. Finally, through customer problem solving and ongoing customer service, salespeople serve as customer value agents by enhancing the value of customers. (Chapter 2, p. 5)

The Four Types of Sales Professionals

The following is an interesting categorization about the types of salespersons according to The 4 Types of Sales Professional by Geoffrey James on CBS Moneywatch.

It's a myth that there is a "universal salesperson." While ALL salespeople must, for example, be able to have a conversation with a customer, different sales jobs demand different personality types and skill sets, according to Howard Stevens, CEO at the Chally Group. He's identified four primary types of sales jobs and an ideal type that adapts well to those jobs.

This post describes these four basic types. Which type are you?

   

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References

Ingram, T. N., LaForge, R. W., Avila, R. A., Schwepker, C. H., Jr., & Williams, M. R. (2015). Instructor manual for Sales management: Analysis and decision making (9th ed.). New York, NY: Routledge.

James, G. (2011). The 4 types of sales professional. CBS Moneywatch. Retrieved from http://www.cbsnews.com/news/the-4-types-of-sales-professional/ 

Trust-Based Relationship Selling Process

Besides knowledge and skills, trust building is one of the important selling foundations.

Table 2.1. Selling Foundations

Knowledge	Product, market Customer, competitor
Skills	Questioning, listening Presentations, dialogue
Trust building	Customer orientation, dependability Competence, compatibility, candor

Ingram et al. (2015) list five key attributes indicated in research to explain how salespeople can earn the trust of their customers:

• Customer orientation: A customer orientation can be demonstrated through certain behaviors such as determining the buyer’s unique needs before recommending a purchase, preventing and correcting problems, and sincere listening during sales calls.
• Competence or expertise: Salesperson competence, or expertise, is another important dimension required to build customer trust. Customers expect salespeople to know what they are doing and to get answers if they don’t already know the answer.
• Dependability: Dependability involves salespeople simply doing what they say they will do.
• Candor or honesty: In any interpersonal relationship, whether it is in the business world or not, candor, or honesty, is essential. Failure to be honest will likely ruin a customer relationship.
• Compatibility: Finally, customer compatibility can help build trust. Compatibility concerns the salesperson being viewed as a good person with whom to do business. While some personal characteristics (e.g., pleasant personality and a positive attitude) can enhance compatibility, professionalism and making it easy for the customer to do business with the selling firm also determine compatibility. (Chapter 2, p. 6–7 [reformatted])

ADAPT and SPIN Questioning Methods

The ADAPT and SPIN questioning methods are related to the trust-based relationship selling process because they are essential techniques to drive engagement and interaction, which are key to building a trusting relationship. How can you have trust without two-way interaction? These proven techniques are a perfect process to facilitate engaging sales conversations.

Ingram et al. (2015) describe how the ADAPT and SPIN questioning methods can be used in the sales process:

Both questioning techniques are helpful to salespeople in determining relevant customer questions that can ultimately lead to productive interactions with buyers. The ADAPT method suggests that questions should be used to:

• Assess the buyer’s situation,
• Discover the buyer’s needs,
• Activate the buying process,
• Project the impact of solving a problem or realizing an opportunity, and
• make a Transition to the sales presentation or the next step in the buying process.

One purpose of the ADAPT method is to develop an efficient, relevant line of questioning that will help both the salesperson and the buyer find common ground for sales dialogue and sales presentations.

With SPIN selling, the salesperson

• investigates the customer’s Situation,
• determines a Problem,
• discusses the Implications of the problem if it is left unattended, and
• shows how the salesperson’s offering can solve the problem (Need payoff).

An important reality for salespeople using problem-solving selling in a business world with competing priorities and limited resources is that not all customer problems are worth solving—at least in the short term. To be effective, the SPIN method and other problem-solving approaches typically require that salespeople clearly illustrate the significance of the existing problem and how the customer can receive significant customer value from the problem solution. (Chapter 2, p. 7 [reformatted])

Ingram et al. (2015) further explain how the two methods are similar and different:

Both approaches use questioning to assess buyer needs, uncover buyer problems, project implications resulting from the problem, and the results from solving the problem or satisfying a need. While the ADAPT technique focuses on finding common ground for sales dialogue, the SPIN technique is useful for drawing out a customer’s problem(s). (Chapter 2, p. 7)

 

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Reference

Ingram, T. N., LaForge, R. W., Avila, R. A., Schwepker, C. H., Jr., & Williams, M. R. (2015). Instructor Manual for Sales management: Analysis and decision making (9th ed.). New York, NY: Routledge.

Selling Strategy

Any selling strategy, regardless of the approach (based on the situational and customer-centric definition or situational representation of value), tactic, or technique, should put customer value first.

Ingram et al. (2015) describe customer value as follows:

Customer value depends on the buyer’s situations, needs, and priorities, but essentially it can be defined as the customer’s perception of what they receive (e.g., products, services, information) in exchange for what they give up (e.g., time, effort, and money). (Chapter 2, p. 5)

So there could be a variety of selling situations, like a buyer that requires very little facilitation or one that requires constant contact and support. Regardless, the objective is to figure out what value is to that customer.

When explaining how salespeople can add to the value received by customers, Ingram et al. (2015) make the following statements:

Customer value is determined in part by product/service capabilities and the support given by the sales organization to the customer. In addition, salespeople’s expertise and behaviors can also be an important dimension of customer value. Salespeople can add to or detract from customer value depending on criteria such as:

• Customer and market knowledge: is the salesperson knowledgeable about the customer’s business, competition, and market conditions?
• Coordination: does the salesperson coordinate with others in their company to solve customer problems or provide opportunities to the customer
• Efficiency: is time spent with this salesperson worthwhile, and can he or she get things done?
• Strategic alignment: does the salesperson understand and contribute to achieving the customer’s strategic priorities?
• Trustworthiness: can the salesperson be trusted, i.e., is this person competent, customer-oriented, honest, dependable and compatible with customers? (Chapter 2, pp. 5–6)

 

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Reference

Ingram, T. N., LaForge, R. W., Avila, R. A., Schwepker, C. H., Jr., & Williams, M. R. (2015). Instructor manual for Sales management: Analysis and decision making (9th ed.). New York, NY: Routledge.

Adaptive Selling

Ingram et al. (2015a) explain adaptive selling as follows:

Adaptive selling takes place when salespeople modify their sales messages and behaviors during sales presentations and sales dialogues, or when they encounter unique sales situations and customers. Adaptive selling might draw from one or more of the basic approaches to personal selling, or the adaptive salesperson might develop a unique selling approach in a given sales situation. (Chapter 2, pp. 7–8)

They further explore whether a salesperson can practice consultative selling without practicing adaptive selling. Their position is that "given the nature of consultative selling, which typically involves unique sales situations, a salesperson would need to be adept at adaptive selling to successfully practice consultative selling" (Chapter 2, p. 8).

Adaptive selling can be conceptualized and exemplified by examining the five alternative approaches to selling. By understanding the customer through engagement and interaction, the salesperson can adapt by choosing which of the approaches to employ. Often, a hybrid may be necessary or the approach may evolve, as does the selling relationship.

Consultative Selling and Problem-Solving Selling

Ingram et al. (2015a) point out how consultative selling is complimented by problem-solving selling:

Consultative selling is a more comprehensive approach to selling involving the use of products, services and expertise of the sales organization to help customers reach their strategic goals. In consultative selling, the salesperson must be an expert on the customer’s business, competitors, and market developments and use this expertise to provide important advice to customers. (Chapter 2, p. 8) 

To help customers reach their strategic goals salespersons can use a problem-solving approach to better understand needs so they may provide comprehensive customer solutions. So a problem-solving approach could be a first step toward a consultative selling relationship.

 

Stimulus Response Selling

+ Figure 2.4 Text Description

Stimulus Response Selling consists of the following steps:

1. Salesperson Provides Stimuli
2. Buyer Responses Sought
3. Continue Process Until Purchase Decision

Ingram et al. (2015a) express their ideas about when stimulus response selling would be most effective:

Using the stimulus response approach, salespeople furnish the stimuli (words and actions) to produce the desired response (a customer purchase). Stimulus response selling is the dominant approach used by telemarketing salespeople, who work from a script or use a memorized canned sales presentation. This approach appears most suitable for relatively unimportant purchase decisions, when time is severely constrained and when professional buyers are not the prospects. Stimulus response methods are also more effective when the sales proposition is narrowly defined, for example, selling a single product rather than introducing an entire product line. (Chapter 2, p. 8)

Collaboration and Consultative Selling

+ Figure 2.5 Text Description

The Salesperson's Expertise, Goods and Services, and Organizational Resources work together to achieve the customer's strategic goals.

Ingram et al. (2015a) discuss the importance of collaboration with the customer and within the sales organization in consultative selling:

Collaboration with the customer and within the sales organization is particularly important in consultative selling, whereby selling is viewed as a consultative, educational process. Members of the sales team must work with the customer to help solve their problems and satisfy their needs. Working as a team, the strategic goals of the buyer can be met. In consultative selling, the salesperson arranges the use of the sales organization’s resources in an effort to satisfy the customer. Teamwork and collaboration are necessary since this usually calls for involving other individuals in the sales organization. For example, the salesperson may need expert advice from production or logistics personnel to fully address a customer problem or opportunity. (Chapter 2, p. 8)

Ingram et al. (2015a) describes needs satisfaction selling as the logic that "customers will be motivated to buy to satisfy particular needs. Using this approach, salespeople help customers identify their needs if they are not already aware of them, and then sell customers product and services to meet their needs" (Chapter 2, p. 10).

Ingram et al. (2015a) provide an example using the Best Buy website to demonstrate that many major corporations provide useful information on their Web sites for potential vendors. The following questions are asked in their new merchandise vendors inquiry form on the Best Buy Web site for the vendors:

• What kind of product and service do you offer?
• Briefly explain your product's competitive advantage.
• What special capabilities and sales support programs do you have to partner with Best Buy to market your product?
• Explain any new technologies that enhance your market position.
• What other national retailers do you currently sell to?
• Do you currently sell your product in other countries and if so where?
• In what country(s) is your product manufactured?(Chapter 2, p.9)

A  need satisfaction selling approach is likely to be most appropriate for selling to Best Buy . Ingram et al. (2015a) describe it this way: 

Based on the list of questions on the Best Buy website, it appears that Best Buy has a set of well defined needs. For instance, Best Buy wants to stock products their customers want that are also in a growing market. They want to know how the seller can help them move the product to assist them in gaining market share, while cutting costs to maximize their sales. Best Buy is looking for technologically advanced products with a track record that can add value to their product selection and positively impact the sale of other Best Buy products. (Chapter 2, p. 10)

Need satisfaction selling focuses on the customer. Salespeople use questions to uncover buyer needs, and the customer typically dominates the sales interaction until needs have been established. At that point, the salesperson moves to a more active selling role, describing how his or her offering can satisfy the buyer’s needs.

 

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References

Ingram, T. N., LaForge, R. W., Avila, R. A., Schwepker, C. H., Jr., & Williams, M. R. (2015a). Instructor manual for Sales management: Analysis and decision making (9th ed.). New York, NY: Routledge.

Ingram, T. N., LaForge, R. W., Avila, R. A., Schwepker, C. H., Jr., & Williams, M. R. (2015b). Sales management: Analysis and decision making (9th ed.). New York, NY: Routledge.

Current Trends in Sales Professionalism

Ingram et al. (2015) indicate that the sales organization must successfully address the trends in complexity, collaboration, and accountability:

• An increasingly complex business environment
• A greater reliance on collaboration
• Greater accountability for actions and results

 

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Reference

Ingram, T. N., LaForge, R. W., Avila, R. A., Schwepker, C. H., Jr., & Williams, M. R. (2015). Sales management: Analysis and decision making (9th ed.). New York, NY: Routledge.

Concluding Remarks

In this lesson we have discussed one of the more important topics in the course. This is because being a great sales manager requires having a solid understanding of the personal selling process. One of the most important aspects of personal selling is understanding customer needs and understanding the need behind the need. The old-school way of selling was to pitch features and dazzle clients with knowledge about the product and offering. However, modern salespeople educated with research understand the importance of discovering the needs of the client before attempting to satisfy those needs with the offering. This ultimately involves a questioning strategy in which the sales person is in fact listening and inquiring such that the prospect is often doing most of the talking. By starting with a general questioning strategy, the salesperson can begin to uncover the needs of the prospect and move toward a more specific questioning strategy. Once this process is implemented, the salesperson may go through with the presentation, focusing on features, advantages, and benefits.

To conclude this lesson, we should remember that we cannot stop with the level of knowledge we have obtained when it comes to personal selling skills. Personal selling skills are important not only to facilitate the exchange of value but also to function in our everyday lives. When you think about it, we are constantly facilitating transactions as we interact with other people, rather than trying to be manipulative. Therefore, our continuous development as businesspeople is important: taking part in training on a continual basis, trying to gain feedback doing role-play scenarios with others, and even taking personal selling classes and seminars, which will help us in our interactions with people in our business and in our personal lives.