Personal Selling – Chapter 2

Exhibit 2.1 (p. 44)

*The Difference between selling and Marketing Concepts*

Selling Concepts:
1) Emphasis is on the product
2) Company first makes the product and then figures out how to sell it
3) Management is sales-volume oriented
4) Planning is short-run, in terms of today’s products and markets
5) Stresses needs for sellers

Marketing Concepts:
1) Emphasis is on customer’s wants
2) Company first determines customers’ wants and then figures out how to make and deliver a product to satisfy those wants
3) Management is profit oriented
4) Planning is long-run, in terms of new products, tomorrow’s markets, and future growth
5) Stresses wants of buyers

Exhibit 2.2 (p. 45)

*The marketing group is the link between customers and the organization*

Top Management:

Functional Departments:
-*Marketing*
-Production
-Human Resources

Salespeople:

Customers:
-Manufacturers
-Service
-Wholesalers
-Retailers
-Consumers

Exhibit 2.3 (p. 46)

*Four Elements to the marketing mix and four promotion activities*

Marketing Mix (All) –>

Product, Price, Place, Promotion (Public Relations) –>

Public Relations, Advertising, Sales Promotion, Personal Selling

Exhibit 2.4 (p. 47)

*Examples of business-to-business value-adding*

*Help customer reduce process costs:*
-Improve yields
-Reduce waste (through recycling, etc.)
-Reduce rework
-Reduce direct labor
-Reduce indirect labor (inspection, handling)
-Reduce energy costs

*Help customer reduce inventory:*
-Consignment
-Just in time delivery
-Reduced cycle time

*Help customer reduce administrative costs:*
-Simplify billing
-Improve traceability
-Use electronic data interchange

*Improve safety:*
-Reduce price to the customer
-Substitute certain product components
-Improve company processes and supplier processes

Exhibit 2.5 (p. 48)

*Examples of distribution channels for consumer and industrial products*

*Consumer Products:*
Manufacturer –>
Household consumer
Retailer——————>
Wholesaler————->
Household Consumer
Retailer——————->
Household consumer

*Industrial Products:*
Manufacturer–>
Industrial
Wholesaler—–>
Industrial

Exhibit 2.9 (p. 55)

*Dependence increases as relationships become more important*

Transactional -> Relationship -> Partnership
Exhibit 2.11 (p.60)

*Marketing and personal selling provide service to customers*

Level 1 (Outside):
-Product
-Price
-Placement
-Promotion

Level 2 (Middle) *ABC’S*
-Analyze needs
-present product Benefits
-gain Commitment
-Service

Level 3 (Center)
-Customer

Marketing
Activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Exchange
Act of obtaining a desired product from someone by offering something in return
Transaction
A trade of values between two parties; it forms a relationship between buyer and seller
Marketing Concept
A business philosophy that says the customers’ want-satisfaction is the economic and social justification for a firm’s existence
Marketing Mix
4 Elements:
-Product
-Price
-Placement
-Promotion
Good
Physical objects that can be purchased
Service
An action or activity done for others for a fee
Idea
Concept, Image, Issue, or philosophy
Value-Added
Benefits received that are not included in the purchase price of the individual goods, service, or idea
Product
A bundle of tangible and intangible attributes, including packaging, color, and brand, plus the services and even the reputation of the seller
Consumer Products
Things produced for and purchased by households or end consumers for their personal use
Industrial Products
Things sold primarily for use in producing other products
Price
Value or Worth of a product that attracts the buyer to exchange money or something of value for the product
Distribution
The channel structure used to transfer products from an organization to its customers
Household
A decision-making unit buying for personal use
Firm
An organization that produces goods and services
Government
An organization that has two functions:
1) The provision of goods and services to household and firms
2) The redistribution of income and wealth
Resellers
Purchase products and then sell them to organizations and/or individuals
Promotion
Increases company sales by communicating product information to potential customers
Personal Selling
Personal communication of information to unselfishly persuade a prospective customer to buy something goods, service, idea or something else, that satisfies an individual’s needs
Advertising
Non-personal communication of information paid for by an identified sponsor such as an individual or an organization
Public Relations
Non-personal communication of information that is not paid for by an individual or organization
Sales Promotion
Involves activities or materials used to create sales for goods or services
Relationship Marketing
Creation of customer loyalty
Service Quality
Subjective satisfaction assessment that customers arrive at by comparing the service level they believe an organization ought to deliver to the service level that they perceive being delievered
Transaction Selling
Customers are sold to and not contacted again
Partnering
The seller contacts customers after the purchase to determine if they are satisfied and have future needs
80/20 Principle
80% of sales often come from 20% of the company’s customers
Consultative Selling
The process of helping the customer achieve strategic short- and long-term goals through the use of the seller’s good and/or service
Buying Teams
Composed of multi-functional specialists who ensure their organizations accurately convey their complex needs to the seller and thoroughly assess the accuracy of the supplier’s reccomendations
Team leaders
A salesperson coordinates all of the information, resources, and activities needed to support customers before, during, and after the sale
Team Selling
Brings together the appropriate people and resources needed to make the sales call
E-Sales Call
Salesperson or a team of sales people, will be positioned in front of a computer interacting with the buyer or buying team
Top-to-Top
Meeting where only the top executives or persons with purchase power of two or more companies meet
Business Consultant
Salesperson gives advice and service
Long-term Ally
The salesperson acts as a helper in meeting the customer’s needs
Relationship Gap
The difference between the salesperson’s pre- and post-sale concern for the customer
4 P’s of Marketing
Product: A bundle of tangible and intangible attributes, including packaging, color, and brand, plus the services and even the reputation of the seller

Price: Value or Worth of a product that attracts the buyer to exchange money or something of value for the product

Place: Physical location of the good and/or service

Promotion: Increases company sales by communicating product information to potential customers