CHAPTER 1: PERSONAL SELLING INTRODUCTION

1.0. PERSONAL SELLING - INTRODUCTION

Selling is the process of discovering needs and satisfying them. This process can be very simple, as when a customer knows what is wanted and the salesperson simply provides the item and rings up the sale, or very complex. Uncomplicated sales transactions occur millions of times each day. Todays customers are sophisticated and knowledgeable, and salespeople must act as both problem solvers and marketing experts. Personal selling is a person to person process that promotes the exchange of goods, services, or ideas for the purpose of making sales and building customer relationships. Personal selling refers to the personal communication of information to unselfishly persuade a prospective customer to buy something a good, a service, an idea, or something else that satisfies that individuals needs. Relationship marketing: The creation of customer loyalty Relationship selling: When the seller contacts the customer after the purchase to determine if the customer is satisfied and has future needs. Sellers nowadays are consultant, partners and problem solvers for customers. Their goal is to build a long term relationship with clients.

1.2 EVERYBODY SELLS

Each of us develops communication techniques for trying to get our way in life You are involved in selling when you want someone to do something You use persuasion skills to persuade someone to act

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Salesperson Past & Present Traditional salespeople Do what they think they can get away with. Guided by self interests Attribute results to personal efforts. Professional salespeople Do what they are legally required to do. Take care of customers Attribute results to personal efforts, employer, customers, economy. Enjoy recognition, may share if it suits their purpose. Pride and ego driven Money is important, but not to the customers detriment Golden rule salespeople Do the right thing

Find others interests most important. Attribute results to others

Seek recognition for effort: sharing not important. Pride and ego driven Money is lifes main motivator.

Feel that an individuals performance is due to others, thus not motivated by pride and ego. Service most important; money is to be shared

1.3 WHY CHOOSE A SALES CAREER?

Major Reasons For Choosing A Sales Career A. Service to others B. Variety of sales jobs C. Freedom D. Challenge E. Advancement F. Rewards

A. The opportunity to provide service to others. Providing service means helping others. A sales career provides the opportunity for service and an emotional purpose in life gained from helping others. For many, service is the number one reason for choosing a sales career. SUHAILY 2 PPM 223/PMK 2033

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Service refers to making a contribution to the welfare of others Would you like to help others? What could a person be sold that would help the individual/family? o Car, gas, repairs o House o Insurance o Food o Medicine

B. The variety of jobs available. Types of sales jobs: i. Selling in retail A retail salesperson sells goods or services to consumers for their personal, non-business use. Three common types of retail sellers: in-store salesperson, direct sellers who sell face-to-face away from a fixed location and telephone salespersons.

ii. Selling for a wholesaler Wholesalers buy products from manufacturers and other wholesalers and sell to other organizations. A wholesaler salesperson sells products to parties for: resale, use in producing other goods or services and operating an organization Firms engaged in wholesaling are called wholesaling middlemen. They vary greatly in the products they sell, the markets to which they sell and their methods of operation.

iii. Selling for a manufacturer Manufacturers sales representatives a. Account representatives - call on a large number of already established customers. b. A detail salesperson - concentrates on performing promotional activities and introducing new products rather than directly soliciting orders.

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c. A sales engineer - sells products that call for technical know-how. d. An industrial products salesperson (non-technical) sells tangible products to industrial buyers. e. A service salesperson - sells intangible products such as financial services, advertising, or computer repair services.

Order taker versus Order getter

Order Getter - The salesperson gets new and repeat business using creative sales strategy and a well-executed sales presentation. An order getter has two selling challenges:

Must often create discontent with what the prospect already has before beginning to sell constructively. Often has to overcome the most powerful and obstinate resistance.

C. Freedom of being on your own. Youre on your own with very little direct supervision.

D. The challenge of selling. The job challenge is always there which means great responsibility. Salespeople often deal with variety of people and firms over time.

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E. The opportunity for advancement. Some companies promote salespeople to managerial positions very quickly. For most companies the path to a sales management position begins with an entry level position.

F. The rewards from a sales career. Two types of rewards: Non-financial (psychological income or intrinsic rewards) Feeling of self-worth and accomplishment. Realization that the job is important. Financial: The opportunity to earn large salaries. Rewarded on basis of performance. Comparatively large beginning salaries. Overall, salaries for field sales personnel have been moving rapidly upward.

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1.4 CHARACTERISTICS OF SUCCESSFUL SALESPERSON

Below are highlights of some characteristics commonly found in successful salespeople: Caring for customers Joy in helping A true salesperson cares for their customer needs and tries to solve those needs. Through caring comes the joy of helping others. Customers can recognize when a person clearly cares. The caring attitude helps to create harmony in the relationship between salesperson and customers. Salespeople need to have the personal characteristic that allows them to place the customers first. Salesperson need to be able handle pressure of selling by demonstrating patience in the working relationship with the customer. Ethical salesperson will be respected and trusted by everyone. This characteristic is very important to build long lasting relationship with customers. The salesperson will spend the time necessary to help, not just make the sale and never be heard from again until the next sales call.

Harmony in relationship

Patience & kind

Moral ethics

Faithful to word

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Fairness in the sale Self control in emotions

The salespersons have to negotiate fairly and strive for win-win situation. Self control concerns emotions, passions and desires. It refers to the needed discipline to rise early, work late, and prepare for the next day in the evening.

1.5 SALES JOBS ARE DIFFERENT FROM OTHER JOBS IN SEVERAL WAYS.

A. Since salespeople represent their company, opinions of a company and its products are often based on the salespeople. B. The outside salesperson typically operates with little direct supervision and needs a high degree of motivation. C. Salespeople probably need more tact, diplomacy, and social poise. D. Salespeople are authorized to spend company funds on entertainment, transportation, and other business expenses. E. Selling requires mental toughness and physical stamina.

1.6

WHAT DOES PROESSIONAL SALESPERSON DO?

A. Creates new customers. Salespersons locate people and/or organizations that have the potential to buy their products in order to increase sales and replace customers that will be lost over time. B. Sells more to current customers. The key to get the current customers to buy repeatedly is to satisfy them. C. Builds long-term relationships with customers Earning the opportunity to sell a present customer more products means the salesperson must have a professional relationship with people and organizations. D. Helps customers use products after purchase The customers must be shown how to obtain full benefit from the products.

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E. Provides solutions to customers problems Salespeople show how problems can be solved through the purchase of certain products and services. F. Provides service to customers such as handling complaints returning damaged merchandise providing samples suggesting business opportunities recommending promotional techniques working at the customers business in store demonstrations accompany distributor G. Helps customers resell products to their customers. Salespersons help wholesalers customers sell products to retail customers and helps retail customers sell products to consumers. They also develops promotional programs for retail customers such as advertising materials, store demonstration and setting product displays H. Builds goodwill with customers Salespersons need to develop a personal, friendly, business relationship with anyone who may influence a buying decision. I. Provides company with market information such as: Competitors activities. Customers reactions to new products. Complaints about products and policies. Market opportunities. His own job activities.

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1.7 THE FUTURE FOR SALESPEOPLE

A. Learning Selling Skills A salespersons job is diverse and complex, it requires a range of skills. necessary skills can be summarized in three categories: The

i. Conceptual skills It refers to the cognitive ability to see the selling process as a whole and the relationship among its parts. It involves the sellers thinking and planning abilities and allows the seller to think strategically.

ii. Human skills It refers to the sellers ability to work with and through other people. It is very important in building relationship with customer and people within organization.

iii. Technical skills It refers the salespersons understanding of and proficiency in the performance of specific tasks. The skill involves mastery of the methods, techniques and equipment involved in selling such as presentation skills and uses of ones products. B. Preparing for the 21st Century Changes are occurring which will require salespeople to be knowledgeable in new areas such as: International dealings. Sales forces reflecting customer diversity. Customer partnering to keep current customers. Success based on customer satisfaction. Increasing use of technology (e-selling).

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C. Success in selling comes from: Training Applying knowledge Developing skills Working hard Wanting to succeed Maintaining a positive outlook Effective time management All to take care of the customer

EXERCISES

MULTIPLE CHOICE QUESTIONS 1. ______ is traditionally defined as the personal communication of information to persuade a prospective customer to buy something which satisfies that individual's needs. A. marketing communications C. advertising B. personal selling D. promotion 2. Personal selling: A. refers only to sales made to individuals, not those made to businesses B. describes the process during which someone is persuaded to buy something which they may not want or need C. is synonymous with marketing D. is accurately defined by none of the above 3. Which of the following statements about the importance of salespeople and selling is true? A. Salespeople are responsible for the success of new products, but have little to do with keeping existing products in the marketplace. B. Only the medical profession generates more revenue in our economy than the selling profession. C. Salespeople have a direct impact on the opening of new businesses and whether those businesses are successful. D. Salespeople are responsible for keeping existing products in the marketplace, but have little to do with the success of new products. 4. Which of the following statements about selling is true? A. You are not involved in sales when you go to an interview with a potential employer. SUHAILY 10 PPM 223/PMK 2033

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B. Unlike other professions, journalists do not engage in selling activities. C. Everyone sells at their place of work, but not when at home with their families. D. You are involved in selling when you ask someone to accompany you on a shopping trip. 5. Selling occurs: A. when you go to an interview with a potential employer B. when lawyers try to convince clients to sue C. when a journalist is trying to get an interview with Siti Nurhaliza D. in all of the above incidences 6. In which of the following situations is the individual described engaged in selling? A. You are involved in sales when you go to an interview with a potential employer. B. Your are trying to convince your lecturer that you deserve an A. C. You are involved in selling when you ask someone to accompany you on a shopping trip. D. Selling is occurring in all of the above situations. 7. A person may choose a sales career because he or she desires: A. the limited variety of jobs available B. rewards offered by a career in sales C. the freedom of being self-employed D. restricted opportunities for advancement 8. A person may choose a sales career because he or she desires: A. the limited variety of jobs available B. rewards offered by a career in sales C. restricted opportunities for advancement D. overt permission to procrastinate 9. As a salesperson for a plumbing supply wholesaler, Titus would NOT sell products to: A. a final consumer B. a small company that manufactures lawn furniture out of PVC pipes C. a plumbing contractor who is working on a new motel D. a hospital maintenance department 10. In which of the following industries are you most likely to find a sales engineer being used? A. apparel C. small appliance B. heavy equipment D. pet supplies

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11. Which of the following is not a type of manufacturers sales representative? A. detail salesperson C. sales engineer B. account representative D. direct salesperson 12. Ahmad Kamil is a(n) _____ for a manufacturer of restaurant appliances. He does not directly solicit orders. His primary duties involve promotional activities such as introducing and demonstrating new products at trade shows. A. retail salesperson C. sales engineer B. detail salesperson D. service salesperson 13. Insurance, gym memberships, and cruise vacations would be sold by: A. detail salespeople C. sales engineers B. account representatives D. service salespeople 14. Salespeople who are order-_____ obtain new and repeat business using a creative sales strategy and a well-executed sales presentation. A. collectors C. getters B. takers D. creators 15. Order-takers: A. use creative sales strategies. B. usually earn much more than order-getters. C. rely on well-executed sales presentations. D. are accurately described by none of the above. 16. Salespeople receive _____ rewards from their jobs. A. financial and nonfinancial C. technical and nontechnical B. psychological and intrinsic D. pay and benefits 17. All of the following are related to the nonfinancial rewards that you as a salesperson receives EXCEPT: A. knowing your job is important B. intrinsic rewards C. customer entertainment allowances D. a feeling of self-worth 18. Which of the following is NOT identified as one of the eight work characteristics needed for sales success? A. sales knowledge C. communication skills B. e-management skills D. stamina for the job

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19. In order to be knowledgeable, a salesperson must: A. have product knowledge B. have general business knowledge C. be aware of the most up-to-date selling techniques D. do all of the above 20. _____ skills refer to the seller's understanding and proficiency in the performance of specific tasks. A. Conceptual C. Nonhuman B. Human D. Technical 21. Sales jobs differ from other jobs because sales jobs require: A. considerable traveling B. little direct supervision C. more physical stamina and mental toughness than most other types of jobs D. all of the above 22. The three categories of skills needed by the successful salesperson can be summarized as: A. conceptual, human, and technical skills B. personal, mental, and spiritual skills C. sales features, advantages, and benefits D. order-getting, order-taking, and service-providing skills 23. The skills a salesperson needs to perform his or her job can be categorized into three areas. Which of the following is as an example of a technical skill? A. analytical ability C. planning abilities B. strategic thinking D. working through other people 24. The skills a salesperson needs to perform his or her job can be categorized into three areas. Which of the following is identified by the text as an example of a conceptual skill? A. analytical ability B. strategic thinking C. ability to use selling tools D. working through other people 25. _____ skills refer to the seller's understanding and proficiency in the performance of specific tasks. A. Conceptual C. Automated B. Human D. Technical

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26. Some of the changes that will impact salespeople in the 21st century include: A. the need for global experience C. e-selling B. diverse customers D. all of the above

ESSAY QUESTIONS 1. 2. 3. 4. 5. 6. 7. 8. 9. Define personal selling Describe five major reasons for choosing a sales career. Describes five characteristic commonly found in successful salespeople. Describe five tasks of sales person. In your opinion, what makes a sales job different from other jobs? Describe four reasons. The term salesperson refers to many types of sales jobs. What are the major types of sales jobs available? Briefly explain the differences between order-takers and order getter. Describe three categories of important skills that are necessary for a salesperson's success. Comment on the following statement, "Only professional salespeople sell."

10. What are the two types of rewards that salespeople can earn? Give two examples of each.

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