CH-1-3 Overview of Personal Selling – SELL: Trust Based Professional Selling : Book Guide

This Document Contains Chapters 1 to 3 Chapter One—Overview of Personal Selling Learning Outcomes After completing this chapter, you should be able to: 1. define personal selling and describe its unique characteristics as a marketing communications tool. 2. distinguish between transaction-focused traditional selling and trust-based relationship selling, with the latter focusing on customer value and sales dialogue. 3. understand sales professionalism as a key driver in the continued evolution of personal selling. 4. explain the contributions of personal selling to society, business firms, and customers. 5. discuss five alternative approaches to personal selling. 6. understand the sales process as a series of interrelated steps. 7. describe several aspects of sales careers, types of selling jobs, and the key qualifications needed for sales success. Chapter Outline I. Introduction II. Personal Selling Defined III. Trust-Based Relationship Selling A. Importance of Customer Value B. Importance of Sales Dialogue IV. Evolution of Professional Selling V. Contributions of Personal Selling A. Salespeople and Society Salespeople as Economic Stimuli Salespeople and Diffusion of Innovation B. Salespeople and the Employing Firm Salespeople as Revenue Producers Market Research and Feedback Salespeople as Future Managers C. Salespeople and the Customer VI. Alternative Personal Selling Approaches A. Stimulus Response Selling B. Mental States Selling C. Need Satisfaction Selling D. Problem-Solving Selling E. Consultative Selling VII. The Trust-Based Sales Process VIII. Sales Careers A. Characteristics of Sales Careers Occupational Outlook Advancement Opportunities Immediate Feedback Job Variety Independence Compensation B. Classification of Personal Selling Jobs C. Sales Support D. New Business E. Existing Business F. Inside Sales G. Direct-to-Consumer Sales H. Combination Sales Jobs I. Qualifications and Skills Required for Success by Salespeople Exercises Developing Professional Selling Knowledge 1. How is personal selling different from other forms of marketing communications? Answer: The primary difference between personal selling and other forms of marketing communications is that it is not directed at mass markets. It involves salespeople talking with their buyers before, during, and after the sale. 2. What are the key differences between transaction-focused traditional selling and trust-based relationship selling? Answer: In transaction-focused traditional selling, salespeople are focused on maximizing sales in the short run and are self-oriented rather than customer-oriented. Little attention is given to uncovering the needs or providing customized solutions. Selling tactics focus on closing the sales and getting order volume. Little to no post-sale follow-up is provided by the salesperson unless it is focused on another transaction. In contrast, trust-based relationship selling strategies focus on initiating, developing, and enhancing long-run mutually beneficial relationships with the customers. Selling methods are customer-oriented, focusing on need discovery and presentation of customized solutions. Post-sale follow-up is considered an important part of the relationship development process. 3. What factors will influence the continued evolution of personal selling? Answer: The continued evolution of personal selling as a profession is necessary in response to the ever-growing complexity of the dynamic environment. Factors that will influence this evolution include the increased sophistication of buyers, economic uncertainties, and new computer technologies. Other issues include the following: intensified competition; more emphasis on improving sales productivity; fragmentation of traditional customer bases; customers dictating quality standards and other procedures to be met by vendors; and greater demand for in-depth, specialized knowledge as an input to purchase decisions. 4. How do salespeople contribute to our society? Are there negative aspects of personal selling from a societal perspective? Answer: Salespeople contribute to society’s goal of economic growth in two basic ways. They stimulate economic transactions and further the diffusion of innovation—the process whereby new products, services, and ideas are distributed to the members of society. In a fluctuating economy, salespeople make invaluable contributions by assisting during recovery cycles and by helping to sustain periods of relative prosperity. Consumers who are likely to be early adopters of an innovation often rely on salespeople as a primary source of information. Consumers often exhibit strong resistance to change, but change is necessary in the long run for the continued progress and/or survival of the society. By encouraging the adoption of innovative products and services, salespeople make a positive contribution to the society. The negative aspects of personal selling can become apparent when salespeople allow themselves to exhibit unethical conduct. If salespeople mislead a consumer regarding a product or service for their own or their company’s benefit, then society is negatively impacted. Society’s perception of personal selling as a professional and ethical occupation is adversely affected, and salespeople’s credibility as accurate sources of new information is damaged. 5. What are the primary contributions made by salespeople to their employers? Answer: Salespeople make three important contributions to their firms. First, they are the direct producers of revenue in most business firms. Second, they play an important role in market research and in providing feedback to their firms. For instance, salespeople can provide information about customer requested additions to the product line. One further contribution that salespeople make to their firm is that they serve as a pool of candidates for promotion into management positions. The sales job is often considered an entry level position providing the right foundation for future management assignments. 6. Most businesses would have a difficult time surviving without the benefits of the salespeople who call on them. Do you agree? Answer: Yes, because customers benefit from salespeople in many ways. Buyers expect salespeople to contribute to the success of the buyer’s firm. Salespeople do so by providing valuable information to buyers and using their problem solving skills to benefit the buyer’s firm. 7. How are need satisfaction and problem-solving selling related? How do they differ? Answer: Need satisfaction and problem-solving selling are related in that each seeks to uncover and satisfy the needs of the buyer. Problem-solving selling differs from need satisfaction selling in that it seeks to identify a set of alternative solutions, which may include a competitor’s product, to satisfy the buyer’s needs. 8. How does the consultative selling approach differ from problem-solving and need satisfaction selling? Explain the three key roles of consultative salespersons. Answer: Consultative selling differs from problem-solving selling in that this type of selling is focused on helping customers reach their strategic goals, not merely solving immediate problems or filling immediate needs. To engage in consultative selling, the salesperson must possess a great deal of knowledge about the customer’s business and industry. This is necessary so that the salesperson can provide the customers with insight into all areas of their business that influence their abilities to reach their strategic goals. The three key roles of consultative salespeople include the strategic orchestrator, the business consultant, and the long-term ally. As the strategic orchestrator, the salesperson’s primary job is to utilize the resources of the sales organization and to help the customer obtain his/her strategic objectives in an effort to satisfy the customer. As the business consultant, the salesperson’s job is to become an expert on the customer’s business and industry. This often entails seeking internal and external resources to become better educated about the customer’s business. As a long-term ally, the salesperson’s job is to support the customer even if a sale is not expected in the short term. 9. How important is teamwork between the customer and the sales organization in practicing consultative selling? How does teamwork within the sales organization factor into consultative selling? Answer: Teamwork between the customer and sales organization is essential if consultative selling is to be successful. This is especially true when the salesperson is assuming the role of a strategic orchestrator and a long-term ally. Teamwork within the sales organization is also essential given that internal resources must be directed toward helping the organization’s customers achieve their strategic goals. 10. Discuss the final step of the sales process (enhancing customer relationships) as related to the continuing evolution of personal selling. Answer: The final step of the sales process is enhancing customer relationships, and it is an important part of the continuing evolution of personal selling. As personal selling evolves from a transaction-oriented process into a relationship management process, the ability of the salesperson to enhance relationships will become increasingly important. Group Activity Word Association: The Image of Salespeople Before placing students into teams, ask them to spend two minutes thinking of positive and/or negative words that come to mind when they hear the word “salespeople.” Instruct the students to make a list of these words. Now put the students into three-person teams. Allow 10 minutes for each team to compare thoughts and develop a list of words associated with the word “salespeople.” Next, ask each team to share their list with the class. Record these responses on the board in two columns, one positive and the other negative. Continue recording responses from each team, then discuss the findings. Many students often negatively stereotype salespeople. This is typically a result of perceptions they have formed about salespeople from their encounters with retail salespeople, movies negatively portraying salespeople, and accounts of salespeople in the popular press. Discussion can focus on the characteristics a professional salesperson should possess and how the negative stereotypes of salespeople can be overcome. The purpose of this exercise is to bring to the surface negative stereotypes associated with salespeople and selling. Most students will have at least some negative attitudes toward salespeople and selling because of their limited exposure to professional selling. Instructors should use this exercise as an opportunity to assure the students that the focus of the course is on trust-based relationship selling, a type of selling that is markedly different from the stereotypes permeated by the media and door-to-door selling. Experiential Exercises 1. Understanding What It Takes to Succeed in Sales Objective: Build awareness that sales requires a high knowledge and skill level and that salespeople must be well-prepared when calling on customers. Time Required: Two hours outside of class (one hour to conduct an interview with a sales professional, one hour to write an interview summary). Teaching Tip: In some instances, this assignment will be better suited to a team approach with 2-3 students per team. Salespeople from organizations that recruit on campus can be a good source of interview candidates. Have students interview a salesperson to better understand what it takes to be successful in professional selling. In addition to the following interview questions, require students to develop two additional questions for their interviews. 1. What are the key skills required in your job? Answer: • Key skills include effective communication, active listening, negotiation, and problem-solving. Additionally, the ability to build relationships, manage time efficiently, and adapt to client needs are crucial for success. 2. What do you need to know about your products/services in order to succeed? Answer: • A deep understanding of product features, benefits, and competitive advantages is essential. Sales professionals must also grasp how their solutions address customer pain points and stay informed about industry trends and customer needs. 3. How has professional selling changed in the past few years? Answer: • Sales has evolved with increased use of technology, including CRM systems and data analytics. There's a greater emphasis on consultative and solution-based selling rather than just transactional approaches, and digital communication channels have become more prominent. 4. How do you prepare for sales calls with new customers? Answer: • Preparation involves researching the customer's business, understanding their industry challenges, and tailoring the sales pitch to their specific needs. It also includes reviewing the customer’s history with the company, setting clear objectives for the call, and preparing relevant questions to engage the client effectively. Students should write a summary report of their interviews and be prepared to discuss their key conclusions in class. Chapter 1 Case Specialty Sports Inc. Background Specialty Sports Inc. (SSI) is a California-based supplier of custom-made novelty sports items such as bobble-head figures, caps, sunglasses, and sweatshirts. Most of SSI’s sales are to medium-sized businesses that use SSI products in employee motivation programs or as specialty advertising giveaways. SSI has been in business for 40 years, and has an excellent reputation as a reliable, competitive supplier. SSI has built a successful business across the United States. SSI sales representatives are knowledgeable and can advise their customers about how to use specialty advertising to build employee morale, introduce new products, and reinforce brand images. Current Situation Jeff Weatherby had recently been assigned to the Indianapolis territory. Although this was his first sales job, he felt confident and was eager to begin. Jeff had just completed SSI’s training program and had a good understanding of SSI’s products and the sales process. For most sales situations, SSI’s sales trainers had recommended the use of an organized sales presentation in which the salesperson organizes the key points into a planned sequence that allows for adaptive behavior by the salesperson as the sales call progresses. Jeff had been in his territory for 60 days, and he was enjoying his job. Days passed quickly, and he was never bored. He had landed some major customers, but was frustrated at how long it took some customers to make a buying decision. Overall, he thought he was doing a good job and the feedback form Felicia Jameson, his sales manager, had been consistently positive. Jeff tried to be honest with himself as a way of improving his performance, and he was not happy as he reviewed today’s last sales call. Jeff had called on H2G, a large manufacturer of garden tools. He intended to sell H2G several specialty advertising items to be used as giveaways at major trade shows in the coming year. After researching H2G on the Internet, he arranged a 4:00 pm meeting with Greg Cox, the director of marketing. Throughout the day, Jeff was running late due to an unexpected snow storm and heavy traffic. He called to let Greg know that he would be late, but the best he could do was to leave a message. Jeff arrived 15 minutes late, and was relieved to be shown into Greg’s office without delay. Jeff apologized to Greg about running late, and was surprised to learn that Greg had not received his message. Jeff was irritated that his message had not been passed along, but Greg did not seem to mind, indicating that he had plenty of time to meet with Jeff. Given this signal, Jeff decided to give Greg an overview of SSI’s capabilities and success stories. Fifteen minutes later, Greg interrupted Jeff and the following dialogue ensued. Greg: Thanks for the overview, Jeff. I had a pretty good idea what SSI offers, but some of what you told me might be helpful. What have you learned about H2G that makes you think that SSI would be a good fit for our trade show programs? Jeff: Well, I know that H2G participates in two national shows and several regional shows every year. Greg: That’s right, and we work really hard to stand out at those shows. Jeff: What works well for you in terms of standing out at the shows? Greg: Having a terrific, eye-catching product display is key. Doing a lot of pre-show communications to be sure key buyers visit our booths, and being sure we have enough people on hand to sustain a high-energy atmosphere during the show. Jeff: How about specialty advertising to spice things up, maybe add to the fun element? Greg: I am not sure what you mean. We have wasted a lot of money on giveaways in the past and I don’t believe that it differentiates us from our competitors. Jeff: That’s because you haven’t worked with SSI. We’re the best and I can fill you in on how we can add sizzle to your trade shows. Greg: O.K., but I just remembered that I need to pick my daughter up after her piano lesson. With the snow and traffic, that leaves us about 15 minutes. Jeff proceeded to describe how SSI works with most of their customers to supplement trade show communications. He felt rushed, as there were a lot of alternatives depending on the customer’s budget and objectives for each trade show. About 10 minutes into his monologue, Greg told Jeff: “Thanks for coming today. We will talk about this internally and I will get back with you if we decide to do more with specialty advertising this year. I really do have to run now. Sorry.” As Jeff drove home, he realized that he had never asked Greg about H2G’s trade show objectives or their budget. With the abrupt end to the meeting, he also failed to try to get another appointment with Greg Cox. Jeff realized that his call with H2G was not his best performance. Questions 1. What problems do you see with Jeff’s H2G sales call? Answer: Following are the problems seen in Jeff’s H2G sales call: • He failed to confirm if the message to Greg was delivered. • He spent too much time early in the call talking about SSI without asking Jeff what he knew about SSI. • He did not ask enough questions to determine Greg’s needs. • He did not ask Greg to discuss why he felt they had “wasted a lot of money on giveaways in the past,” or why it was important for H2G to differentiate itself from its competitors during the tradeshow. • He did not ask about H2G’s trade show objectives. • He did not ask about H2G’s trade show budget. • He failed to try to get another appointment. 2. If you were Jeff’s sales manager, what would you recommend he do to improve his chances of succeeding? Answer: First, Jeff should pay attention to conditions that may create delays and plan accordingly. If he is going to run late, Jeff should make sure his customers know about the delay. Jeff should reschedule appointments if he believes doing so is necessary for him to have adequate time to conduct his sales call. Jeff needs to remember that his goal is to develop a trust-based relationship and that such a relationship is developed through a sales dialogue, not a sales monolog. During the early stages of the sales process, Jeff should make sure that he asks the customer questions that will help him learn about the customer’s unique needs. This means the customer should be doing most of the talking early on. It is only after he understands the customer’s unique needs that he will be able to discuss how his company can deliver customer value. Finally, Jeff should be prepared for abrupt endings to meetings resulting from unforeseen circumstances. He should have a well-rehearsed contingency plan in place so that he can end the meeting professionally and with a certain degree of commitment to a “next step.” Role Play Characters: Jeff Weatherby and four other SSI sales representatives; Felicia Jameson, SSI sales manager. Scene: Location—SSI’s Indianapolis office during a weekly sales meeting shortly after his sales call with H2G. Action—Jeff reviews his H2G sales call with other SSI sales representatives and their sales manager, Felicia Jameson. This is a regular feature of the weekly meetings, with the idea being that all sales representatives can learn from the experiences of others. Jeff has decided to compare his call on H2G to some of the material from his sales training with SSI. This material, which contrasts transaction-focused selling with trust-based relationship selling, is shown in Exhibit 1.1. His review will analyze whether he did or did not practice trust-based relationship selling during his call with Greg Cox at H2G. Upon completion of the role play, address the following questions: 1. Is Jeff’s review of his sales call accurate? Answer: Jeff’s review of his sales call is accurate in identifying areas where he adhered to transaction-focused selling rather than trust-based relationship selling. He noted moments where he missed opportunities to build a deeper connection and understanding with Greg Cox. 2. What steps should Jeff take to begin to develop a strong relationship with Greg Cox at H2G? Answer: To develop a strong relationship with Greg Cox, Jeff should follow up with a personalized message addressing specific needs discussed during the call, schedule regular check-ins, provide valuable insights and solutions beyond the immediate sale, and demonstrate a genuine interest in H2G's long-term success. Chapter 1 Role Play Overview of Personal Selling Stars, Inc. Sales Stars, Inc (SSI) was founded five years ago by Mark Eaton and Sandra Orr as an employment agency specializing in the placement of professional sales representatives and sales trainees in a wide variety of industries. SSI is paid by the hiring companies, and job candidates are never charged fees for SSI’s services. SSI represents college-educated individuals with sales experience levels ranging from zero (sales trainees) to several years of experience. For SSI to succeed, the company has to consistently do two things: (1) adapt to the hiring companies’ needs and specific job descriptions in the sales area; and (2) save the hiring companies time and money in the hiring process by recommending only prescreened, highly qualified candidates. By focusing on these core competencies, SSI had grown to a company with fifty employees in five regional offices across the United States. SSI’s revenues were increasing at an annual rate of 15 percent, which far outpaced revenue growth in the broadly defined employment agency sector. Mark Eaton and Sandra Orr have a good feel for how SSI can save hiring companies time and money by recommending only pre-screened, highly qualified job candidates. Now that SSI was getting to be a larger company, Mark and Sandra needed to spread their knowledge to other SSI staff members who would also be involved in pre-screening sales job candidates. In addition to their own experience over the years, Mark and Sandra had conducted research on the qualifications and skills needed for success in professional selling. Interestingly, there is a high correlation between their research findings and the research presented on pages 22–23 of this textbook. Mark and Sandra noted that some skills needed for sales success would be hard to assess until the salesperson had been on the job for a while. For example, being honest and ethical would probably take more time to assess. Even though a complete assessment of all of the attributes needed for sales success might extend past the job placement process, Mark and Sandra decided to identify key indicators for each of the twelve attributes shown on pages 22–23: 1. Active listening—to include asking appropriate questions and not interrupting at inappropriate times. 2. Service orientation—actively seeking ways to help customers. 3. Oral communications skills—including persuasive communications. 4. Coordination and problem solving—to include bringing others together and reconciling differences. 5. Written communications skills—including computer and other technologically facilitated communications. 6. Logical reasoning resulting in rational reasons to take action. 7. Strategic and organizational skills so that work can be planned and executed efficiently. 8. Dependability and attention to detail. 9. Motivation and persistence in the face of obstacles. 10. Integrity—honest and ethical. 11. Initiative—willing to take on responsibilities and challenges. 12. Adaptability—open to change and devoted to continual learning. In the coming weeks, Mark and Sandra planned to work independently to identify a minimum of two to three indicators for each of the twelve qualifications and skills needed for sales success. They would then meet and select the best three indicators for each of the twelve success attributes and decide how and when each attribute would be assessed as they screened job candidates. For example, what could be assessed in personal interviews with job candidates? Alternatively, could some of these attributes be assessed from candidate resumes? Mark and Sandra were confident that if they could come up with the key indicators for each of the twelve success attributes, they would be able to train other SSI personnel to effectively pre-screen job candidates and thus contribute to SSI’s future growth. Role Play Situation: Review the above SSI case. Working in teams of two, select at least two success attributes from the list of twelve. Characters: Mark Eaton and Sandra Orr, cofounders of SSI, Inc. Scene 1: After Mark and Sandra have independently developed two to three indicators for two of the twelve success factors, they meet to choose the best three indicators for each success factor and to determine how and when each indicator will be assessed. Both Mark and Sandra should distribute their written lists to each other and to others who will observe the role-play. Upon completion of the role-play, address the following questions: 1. How would you rate Mark and Sandra in terms of preparedness? Can you identify any overlooked indicators for the chosen sales success attributes? Answer: Students’ answer to this question will vary. Students answer should point that the research done by Sandra and Mark gives them a higher rating when it comes to preparedness. Students might find different attributes that they think are overlooked. The instructor should point out that some attributes can be generalized (applicable under all circumstances), while some are specific to a particular job profile. Mark and Sandra appear well-prepared, having each independently developed indicators for the selected success factors and then collaboratively chosen the best ones. They should ensure that their final indicators are clear, actionable, and measurable. Overlooked indicators might include specific metrics for tracking customer engagement or long-term relationship-building efforts, which are crucial for assessing trust-based selling effectiveness. 2. How well did Mark and Sandra work together to find the three best indicators for each success attribute? Answer: Mark and Sandra worked effectively together by combining their independent analyses to select the best indicators for each success attribute. Their collaborative approach ensured a thorough evaluation of the success factors, leading to well-defined and actionable indicators. They should ensure the chosen indicators are measurable and directly aligned with their strategic goals. Any gaps in their indicators might involve missing metrics related to customer satisfaction or long-term relationship development. Chapter 1 Continuing Case Introduction The National Copier Company (NCC) sells a variety of copiers to small and medium-sized businesses. NCC has been in business for five years and has been growing at a steady pace. NCC differentiates itself from other copier companies by customizing its products to meet the specific needs of each customer and by providing excellent customer service. The company’s salesforce plays a key role in creating value and managing customer relationships. Brenda Smith has been a NCC salesperson for the past three years. She has steadily improved her sales performance during her time with NCC, and now is in the top one-fourth of all NCC sales representatives as measured by two key metrics: overall sales volume and customer satisfaction. Brenda has been especially successful with small professional firms, such as attorneys, architects, accountants, and medical professionals. She is excited to begin her fourth year with NCC and has established challenging goals to increase sales from existing customers and to generate new customers. Brenda recently met with Pat Brady, her sales manager and was quite excited about the upcoming year. Pat had told Brenda that she was progressing toward a possible promotion into sales training if she had another good year in her sales position. In addition, Pat gave Brenda this feedback: “Brenda, I think you are doing a fine job with your customers, but I would like to see you become more of a consultative salesperson in the coming year. I would also like for you to sharpen your group communications skills, as that will be important if you are promoted into sales training. We will talk about the specifics more as the year goes along. Meanwhile, thanks for your results to date and good luck with the upcoming year.” Questions 1. Brenda had been thinking about Pat Brady’s feedback that directed her to become more of a consultative salesperson. In thinking about her own selling approaches, she knew that she had been concentrating on the needs satisfaction and problem-solving approaches. What must Brenda do to become a more consultative salesperson? Answer: To become more of a consultative salesperson, Brenda needs to shift her focus from helping her customers solve copier-related problems to helping her customers reach their strategic objectives. This will require her to expand her involvement with her customers, looking for opportunities to help her customers obtain their strategic objectives through the products she sells as well as the business expertise and other resources she and her company can provide. Brenda will need to serve as a strategic orchestrator, a business consultant, and a long-term ally. To fill these roles, Brenda will need to become an expert with respect to her company’s capabilities and the industries in which her customers compete. She will also need to demonstrate the trustworthiness necessary for organizations to share with her their strategic goals. 2. Three months later, Brenda was having mixed results with the consultative selling approach. She was finding that some of her customers just wanted the convenience of having a copier in their offices and did not seem eager to discuss their strategic goals. She was beginning to wonder about the consultative selling model, thinking it was not such a good idea after all. What recommendations do you have for Brenda? Answer: First, Brenda needs to maintain a consultative relationship with only those customers with whom she is likely to generate enough revenue (now or in the future) or to make the consultative approach profitable (at least in the long run). Given the appropriate set of customers, Brenda needs to respect and appreciate the relationship-orientation of each of those customers. Some will desire a consultative relationship and others will not. Further, developing and maintaining a consultative relationship requires greater effort and time. It’s unlikely she would be able to effectively maintain a consultative relationship with all of her customers. Finally, as she gains experience, competence, confidence, and a successful track record in her role as a consultative salesperson, she will be better able to win over some of the customers who are currently not interested in that sort of relationship. 3. A month before the annual meeting for all NCC sales representatives, Pat Brady told Brenda, “For the upcoming meeting, I want you to prepare a 10-minute presentation about the pros and cons of the basic selling approaches that we use at NCC compared to our competitors.” NCC’s sales training program advocated the use of needs satisfaction, problem solving, and consultative selling. Many of NCC’s key competitors used the same approaches. However some of the toughest competitors used stimulus response and mental states (AIDA) approaches. This latter category of competitors often stressed lower prices and utilized telemarketing instead of field sales representatives in selling their products. Put yourself in Brenda’s role and prepare the presentation requested by Pat Brady. Answer: Students’ answers will vary, but they should include some discussion of the idea that stimulus response and mental states approaches are transaction-focused traditional selling approaches and not trust-based relationship approaches. These approaches combined with lower prices and less interpersonal interaction tend to produce price-loyal customers. This represents a disadvantage for NCC, especially if the market begins to commoditize copiers (i.e., fails to recognize any difference between competing offers). Another disadvantage of the problem-solving, need satisfaction, and consultative selling approaches are that they require a greater investment in sales training and, subsequently, are more expensive to utilize (relative to telemarketing and other non-interpersonal forms of sales communication). The primary advantage of the trust-based relationship approaches (i.e. problem-solving, need satisfaction, and consultative selling) is that they tend to build loyal customers and provide a certain degree of insulation against price competition. In addition, by working more closely with their customers through interpersonal interaction, NCC salespeople are in a better position to identify other opportunities (e.g. identify problems that the customer may not be aware of) and provide more customized solutions. 1. Presentation Outline: Pros and Cons of Basic Selling Approaches 1. Needs Satisfaction, Problem Solving, and Consultative Selling • Pros: Builds long-term customer relationships, tailors solutions to specific needs, fosters trust and loyalty. • Cons: Time-consuming, requires in-depth customer interaction, may not be as effective for quick sales. 2. Stimulus Response and Mental States (AIDA) Approaches • Pros: Effective for high-volume, low-margin sales, quick decision-making, lower cost via telemarketing. • Cons: Less personalized, can lead to lower customer satisfaction, focuses on immediate sales rather than relationship building. 4. Early in the year, Pat Brady told Brenda that her efforts were needed to gain more exposure for NCC’s college recruiting program: “Brenda, I want you to be part of a two-person team to help with recruiting on two college campuses in your territory. The other team member will be an experienced recruiter who had sales experience before moving into recruiting. The two of you should seek out opportunities as guest speakers for classes and student organizations. Your role will be to talk about how sales can be a great place to start a career, and for some, a great career path. Think about the future of selling and what it takes to be successful and share your thoughts with students.” Acting as Brenda, make note of ten key points you would like to make about the future of professional selling and what it takes to be successful. (Hint: Be sure you read the online Appendix to Chapter 1 along with Chapter 1 before you undertake this task.) Answer: Students’ answers will vary, but it may include the following: Advantages resulting from job security, advancement opportunities, immediate feedback, prestige, job variety, independence, and high compensation. Empathy, strong ego drive, self-motivation, ethical behavior, strong interpersonal communication skills might be some of the attributes that help one in being successful. 1. Embrace Technological Advancements: Sales professionals must adapt to new technologies and data analytics to stay competitive. 2. Focus on Relationship Building: Building trust and long-term relationships with clients remains crucial for sustained success. 3. Develop Consultative Skills: Understanding client needs and providing tailored solutions is essential in today’s complex sales environment. 4. Adapt to Changing Buyer Behavior: Sales strategies must evolve with shifts in how buyers research and make purchasing decisions. 5. Leverage Social Selling: Utilize social media to engage with prospects and build a personal brand. 6. Commit to Lifelong Learning: Continuous education and skill development are vital to keep up with industry changes. 7. Enhance Communication Skills: Effective listening and clear communication are key to understanding and meeting client needs. 8. Adopt a Customer-Centric Approach: Prioritize customer experience and satisfaction to drive long-term loyalty. 9. Emphasize Ethical Selling: Integrity and ethical practices build trust and credibility in the sales profession. 10. Prepare for Data-Driven Decision Making: Use data to inform strategies and measure performance for better outcomes. Chapter Two—Building Trust and Sales Ethics Learning Outcomes After completing this chapter, you should be able to explain and understand: 1. what trust is. 2. why trust is important. 3. how to earn trust. 4. knowledge bases help build trust and relationships. 5. sales ethics. Chapter Outline I. Introduction II. What is Trust? III. Why is Trust Important? IV. How to Earn Trust A. Expertise B. Dependability C. Candor D. Customer Orientation E. Compatibility/Likability V. Knowledge Bases Help Build Trust and Relationships A. Industry and Company Knowledge B. Product Knowledge C. Service D. Promotion and Price E. Market and Customer Knowledge F. Competitor Knowledge G. Technology Knowledge VI. Sales Ethics A. Image of Salespeople and Sales Executives B. Deceptive Practices C. Illegal Activities D. Non-Customer-Oriented Behavior E. How Are Companies Dealing with Sales Ethics? Exercises Developing Professional Selling Knowledge 1. What is the essence of trust for a salesperson? Answer: Students’ answers will vary. The answers should include some description of the buyer relying on the salesperson’s words or actions in situations where such reliance involves risk to the buyer. The essence of trust for a salesperson lies in consistently demonstrating reliability, honesty, and integrity. Trust is built through transparent communication, keeping promises, and genuinely prioritizing the customer's needs. It involves being empathetic and dependable, which fosters long-term relationships and encourages customers to rely on the salesperson’s recommendations and solutions. 2. If trust means different things to different buyers, how is a salesperson to determine what trust means for each buyer? Answer: The salesperson must determine what trust means for each buyer by asking questions, listening to the responses, and making general observations. This is the only way the salesperson will be able to learn what trust attributes are critical to relationship-building for a specific buyer. 3. Why is trust important to a salesperson? Answer: Today’s customers are more sophisticated, more informed (or, at least, have access to more information), and are more aware of traditional manipulative “sales tactics.” In addition, buying organizations are interested in taking advantage of efficiencies associated with using a smaller number of suppliers. Salespeople who understand this know that the stereotypical type of selling (e.g., manipulative, pushy, and aggressive) is ineffective and that building mutually beneficial relationships with their customers is the only way to compete in the new millennium. Trust is important to a salesperson because it is essential for building these long-term relationships. 4. How might a salesperson go about earning trust? Answer: Students’ answers will vary, but they should include a discussion of the basic building blocks of trust, which include expertise, dependability, candor, customer orientation, and compatibility/likability. A salesperson can earn trust by actively listening to the customer's needs and providing honest, transparent information. Building credibility through consistent follow-through on promises and delivering high-quality service is crucial. Demonstrating expertise and offering tailored solutions that genuinely address the customer's problems further reinforces trust. Additionally, showing empathy and a genuine interest in the customer's success helps solidify a trustworthy relationship. 5. What does it mean for a salesperson to have a customer orientation? Answer: Customer orientation means that the salesperson is as concerned about his or her customers’ interests as his or her own. It means truly understanding the customer’s situation and then presenting fair and balanced solutions addressing the customer’s needs. In other words, it means looking out for the customer. This requires salespeople to be honest, candid, and fair when dealing with the customer. 6. How would you rank the five trust builders in order of importance? Answer: Students’ answers will vary, but should include all the five components (expertise, dependability, customer-orientation, candor, and compatibility). The five trust builders can be ranked in this order of importance: 1. Reliability• Consistently delivering on promises establishes a foundation of trust. 2. Honesty• Transparent and truthful communication builds credibility. 3. Competence• Demonstrating expertise reassures customers of your capability. 4. Empathy• Understanding and addressing customer needs fosters a deeper connection. 5. Authenticity• Being genuine and sincere strengthens trust and rapport. 7. Explain why expertise is such an important relationship builder. Answer: Expertise is such an important relationship builder because it gives the salesperson credibility and is associated with several the other trust builders. Credibility affords the salesperson a degree of the buyer’s trust prior to the salesperson actually earning it. Expertise may also help the salesperson earn the buyer’s trust through the other trust builders. For example, salespeople with greater expertise are more likely to have greater competence and/or make more significant contributions. 8. How do knowledge bases help build trust and relationships? Answer: Knowledge bases help build trust and relationships because they empower the salesperson to use the trust-building variables more effectively. For example, as salespeople gain more product knowledge, they are better able to demonstrate expertise and customer orientation (by more precise matching of solutions to needs) and make a stronger contribution. 9. Do you think certain knowledge bases are more important than others? Why? Answer: Students’ answers will vary, but they should include an appropriate rationale based on the chapter content. The knowledge bases that are viewed as more important may vary depending upon the buyer-seller relationship and the type of selling situation. Yes, certain knowledge bases are more important because they directly impact a salesperson's ability to address customer needs effectively. Product knowledge is crucial for providing accurate information and demonstrating value, while industry knowledge helps in understanding broader customer challenges. Customer knowledge is also vital, as it enables personalized solutions and strengthens relationships. Prioritizing these areas ensures a more impactful and credible sales approach. 10. What are the three areas of unethical behavior? Discuss each. Answer: The three areas of unethical behavior are deceptive practices, illegal activities, and non-customer-oriented behavior. Deceptive practices refer to any attempt by the salesperson to mislead or otherwise deceive the buyer. For example, a salesperson may exaggerate a product’s benefits knowing that the buyer’s decision will be based on (or that the buyer is relying on) those exaggerations. Illegal activities refer to a variety of activities in which the salesperson knowingly breaks the law. A salesperson padding an expense reimbursement report is an example of breaking the law. Non-customer-oriented behaviors are practiced by salespeople and companies that concentrate on short-term goals. They allow the practice of outmoded sales tactics. Group Activity Ask students to think about their experiences with salespeople. Have them write down a short list of things salespeople have done that built trust and a short list of things salespeople have done that have damaged trust. Next, divide the class into small groups and have them discuss and combine their lists. Ask each group to present its list. The purpose of this exercise is to help students better understand trust-building and trust-damaging behaviors through shared experiences. Try to get students to share stories and identify how the behaviors described in those stories match one or more of the five components of trust. Experiential Exercises Building Relationships after the Sale Objective: Your students will discover the importance of follow-up activities in building relationships. Time Required: 10 to 15 minutes, or longer if working in groups. Teaching Tip: Have students work in small groups to develop answers to the questions. Then let each group present its answers to the rest of the class. Not many years ago, salespeople often thought that their jobs were complete once the order was signed. Today, for a business to survive, repeat business is critical. A greater emphasis has been placed on the follow-up stage of the selling process. Continued building of the relationship should be your goal well after the sale. 1. Show appreciation after the sale. How might you accomplish this? Answer: Some suggestions include the following: a thank you card/letter/email, a follow-up phone call, a follow-up visit, or some other small but significant act; the sales person should not only thank the customer for the business but should also reassure the customer that he/she made the right decision. 2. Monitor delivery and installation. Why is this important? Answer: Answers should include some discussion of the following. First, monitoring delivery and installation demonstrates a customer orientation that helps to build trust. In addition, it gives the salesperson an opportunity to ensure that delivery and implementation are without incident, and the opportunity to quickly address incidents that arise. Monitoring delivery and installation is crucial because it ensures that the product or service meets the customer’s expectations and is delivered as promised. This follow-up demonstrates commitment to quality and customer satisfaction, helping to prevent issues and address any concerns promptly. It also reinforces the salesperson's reliability and fosters a positive relationship, increasing the likelihood of repeat business and referrals. 3. Learn the names of the switchboard operator, receptionists, office manager, users of the product, etc. How might you accomplish this and why is it important? Answer: A salesperson can learn the names of people in the customer’s organization by asking for names, obtaining business cards, reading name tags, reading nameplates, and then keeping records to ensure retention of the information. Knowing and using people’s names help the salesperson demonstrate customer orientation, dependability, compatibility, and competence, each of which helps to build trust. Trust is essential for initiating, developing, and maintaining successful relationships. Chapter 2 Case Kelly Meyers’ Dilemma Background Kelly Myers has spent the past three months trying to gather all the information she needs to submit a bid on an order that is very important to her company. Bids are due tomorrow and the decision will be made within a week. She has made a great impression on the purchasing agent, Janet Williams, and she has just ended a conversation with her sales manager who believes Kelly needs to make one more call on Williams to see if she can find out any additional information that might help her prepare the bid. Kelly’s boss specifically wants to know who the other bidders are. Current Situation Later that day, Kelly visited with Janet Williams. During the course of the conversation with Williams, Kelly asked who the other bidders were. Williams beat around the bush for a while, but she did not reveal the other bidders. She did mention the other bids were in and pulled the folder out of the filing cabinet where they were kept. Janet opened the file and looked over the bids in front of Kelly. There was a knock on the door and Janet’s boss asked if he could see her for a minute and she walked down the hall with her boss. Kelly realized all the bids were left out in front of her. There was a summary sheet of all of the bids on top and she could easily see all the bids. When Williams returned she returned the folder to the file and the two made some small talk and ended their conversation. Kelly returned to her office and completed her bid and turned it in to Janet Williams the next morning. Kelly knew her bid would be the lowest by $500.00. One week later Kelly learned she won the bid. Questions 1. What are the ethical issues involved in this situation? Answer: Disclosure of confidential data by Janet Williams to Kelly would be unethical. The ethical issues include the potential misuse of confidential information, as Kelly inadvertently viewed competitors' bids, which could influence future negotiations. Additionally, Kelly's actions could be seen as taking advantage of an unintentional disclosure, raising concerns about fairness and integrity in the bidding process. 2. If you were Kelly Myers, do you think Janet Williams intended for you to see the competitive bids? What would you have done given this situation? Why? Answer: Janet Williams pulled the folder out of the filing cabinet that contained the bids with an intention to reveal the bids to Kelly. Kelly should have avoided looking into the bids, thus gaining the purchasing agent’s trust. Students’ answers will vary. However, they should address the points mentioned above. Chapter 2 Role Play Brisbane Uniform Company Case Background Brisbane Uniform Company (BUC) specializes in providing uniforms to hotels and restaurants. BUC is a new company from Australia trying to break into the U.S. market. They have had trouble breaking into larger accounts (Marriott, Hilton, Sheraton) because as a new company, they don’t have the name recognition in the United States. As the account exec in the area, you have been working on a new Hilton hotel with over 5,000 rooms and 500 employees. Recently you submitted a proposal and the buyer, Mark Dunn, has told you he is leaning your way with the order. He also told you that this order must come off without a hitch as his hide is on the line if things go wrong. You know there could be a problem down the road as one of your unions has been negotiating a contract that is about to expire. The last time this contract came up, there was a strike and orders were backlogged for weeks. The hotel has many customized uniforms and has to have these for their grand opening in three months. What is your obligation to the hotel having this information? This order will make your year and probably send you on a trip to Rome for exceeding quota. Role Play Activity Location: Mark Dunn’s Office Action: Role play a sales call with Mark Dunn addressing the issues in the case. Chapter 2 Continuing Case Building Trust Because the National Copier Company (NCC) has only been in business for five years, Brenda Smith is concerned that most of her competitors are older than she is. The prospective customers she has been calling on state that they know they can count on her competitors because they have a long track record. As NCC expands into new markets some of her prospects are not familiar with her company. One prospective customer, who works for one of the most prestigious and largest medical offices (30 doctors) in the area, told her he has been buying copiers from the same company for over twenty-five years. He also told her that his sales representative for the company has been calling on him for over seven years, and he knows when he calls on his copier supplier for advice he can count on him for a solid recommendation. Brenda realizes these are going to be tough accounts to crack. Brenda does have an advantage due to the high quality of NCC products. In a recent trade publication, NCC’s copiers tied for first in the industry on ratings of copier quality and dependability. NCC was also given a high rating for service. Brenda has had this information for two weeks now and has brought it up in conversations with her prospective customers without much success. To make matters worse, one of her competitors must have started rumors about NCC. In the past month, she has heard the following rumors: “NCC is going out of business because of financial troubles.” “NCC has missed several delivery deadlines with customers.” “NCC’s copiers have a software glitch that cannot be corrected.” “NCC has cut its service staff.” Brenda knows these rumors are not true, but prospects might believe the rumors. At a recent sales meeting, Brenda’s manager suggested that their competitors must be getting nervous about NCC’s success, causing them to start such vicious rumors. Brenda is sitting at her desk trying to figure out what to do next and she is not exactly sure how to proceed. Questions 1. What would you recommend Brenda do to handle the challenges she faces? Answer: Students’ answers will vary, but they should focus on trust-building activities. In particular, Brenda needs to build her knowledge base—including knowledge of her industry, company, products, services, prices, markets, customers, competitors, and technology. By doing this, Brenda will improve her confidence and credibility within her territory. Brenda should focus on building trust through transparency and proof. She should proactively address the rumors by providing clear, factual information and offering evidence of NCC’s strong financial health, reliable delivery, and effective service. Leverage the high ratings in industry publications to bolster credibility and arrange demonstrations or testimonials to showcase product quality and performance. Engaging directly with prospects to counter misinformation and highlighting NCC’s unique strengths can help shift their perceptions. 2. Brenda appears to have an advantage with her products and services. Develop a plan for Brenda to build trust in NCC with prospective customers. Answer: Students’ answers will vary. However, the plans students develop should include a heavy reliance on activities designed to demonstrate competence, dependability, and customer orientation. 1. Showcase Product Quality: Arrange live demonstrations or offer trial periods for prospects to experience NCC's high-quality copiers firsthand, backed by the industry ratings. 2. Provide Testimonials: Collect and present positive feedback from satisfied customers to validate NCC's reliability and service excellence. 3. Address Rumors Directly: Create a detailed FAQ or fact sheet to refute specific rumors and demonstrate NCC's strong performance and financial stability. 4. Engage in Personal Outreach: Schedule face-to-face meetings or virtual consultations to build rapport, understand customer concerns, and reinforce NCC’s commitment to customer satisfaction. 3. What do you recommend Brenda do to compete effectively against competitors that have a long and successful track record? Answer: First, Brenda needs to engage in activities designed to develop a sense of compatibility with her customers. This will help her gain access and build trust. In addition, Brenda needs to become an expert in her industry and market, knowing exactly how her products compare with those of her competitors. Using this information, Brenda needs to look for opportunities based on her products’ (and the company’s) competitive advantages, and/or her customers’ dissatisfaction with their copier providers. 4. How should Brenda go about handling the rumor mill? Answer: Because the text contains no specific recommendations or guidelines for this sort of situation, students’ answers will vary. However, the recommendations should center on strategies for correcting the misinformation and building trust. Recommendations should not include any behavior that may be considered unethical, such as making disparaging statements about the competitors. Chapter Three—Understanding Buyers Learning Outcomes After completing this chapter, you should be able to: 1. categorize primary types of buyers. 2. discuss the distinguishing characteristics of business markets. 3. list the different steps in the business-to-business buying process. 4. discuss the different types of buyer needs. 5. describe how buyers evaluate suppliers and alternative sales offerings by using the multi-attribute model of evaluation. 6. explain the two-factor model that buyers use to evaluate the performance of sales offerings and develop satisfaction. 7. explain the different types of purchasing decisions. 8. describe the four communication styles and how salespeople must adapt and flex their own styles to maximize communication. 9. explain the concept of buying teams and specify the different member roles. 10. understand means for engaging customers. Chapter Outline I. Introduction II. Types of Buyers III. Distinguishing Characteristics of Business Markets A. Concentrated Demand B. Derived Demand C. Higher Levels of Demand Fluctuation D. Purchasing Professionals E. Multiple Buying Influences F. Collaborative Buyer-Seller Relationships IV. The Buying Process A. Phase One—Recognition of the Problem or Need: The Needs Gap V. Types of Buyer Needs A. Phase Two—Determination of the Characteristics of the Item and the Quantity Needed B. Phase Three—Description of the Characteristics of the Item and the Quantity Needed C. Phase Four—Search for and Qualification of Potential Sources D. Phase Five—Acquisition and Analysis of Proposals VI. Procedures for Evaluating Suppliers and Products A. Assessment of Product or Supplier Performance B. Accounting for Relative Importance of Each Characteristic C. Employing Buyer Evaluation Procedures to Enhance Selling Strategies D. Phase Six—Evaluation of Proposals and Selection of Suppliers E. Phase Seven—Selection of an Order Routine F. Phase Eight—Performance Feedback and Evaluation VII. Understanding Post purchase Evaluation and the Formation of Satisfaction A. The Growing Importance of Salespeople in Buyers’ Post purchase Evaluations VIII. Types of Purchasing Decisions A. Straight Rebuys B. New Tasks C. Modified Rebuys IX. Understanding Communication Styles A. Mastering Communication Style Flexing X. Buying Teams XI. Engaging Customers A. Focusing On the Customer Experience B. The Role of Information Technology C. Buyers’ Demand for Access to Relevant Information D. The Need for Adding Value Exercises Developing Professional Selling Knowledge 1. How might the following characteristics of business-to-business markets affect the relational selling activities of salespeople: Larger, but fewer, buyers? Derived demand? Higher levels of demand fluctuation? Answer: If the market consists of larger, but fewer, buyers, then each customer (or potential customer) relationship might be extremely important. This means salespeople will need to be more flexible and allocate more resources (i.e., time and money) to develop and maintain the relationship. If the markets are characterized by derived demand, then salespeople selling products need to monitor the markets from which the demand for their product is derived. This will allow salespeople to anticipate demand shifts and then help their customers plan accordingly. If the markets show higher levels of demand fluctuations, then salespeople will need to anticipate such fluctuations and then help their customers plan for these fluctuations by adjusting inventory accordingly (this is similar to the approach toward derived demand). Customers value salespeople who can help them avoid having too much or too little inventory. The ability to anticipate demand fluctuations correctly will help salespeople forge strong relationships. 2. How do the three different types of purchasing decisions (straight rebuy, modified rebuy, new task) influence the time and effort a buyer might allocate to the different steps of the purchase decision process? Answer: Generally speaking, as the type of purchasing decision moves from a straight rebuy to a modified rebuy to a new task, the amount of time and effort spent in the purchase decision process increases. In straight rebuy situations, it is not uncommon for the purchase decision to immediately follow the recognition of the need. For example, a taxi driver low on fuel will stop at a gas station with little consideration given to the different brands or types (e.g., octane rating) of fuels available. A buyer enters into a modified rebuy type of purchase decision simply to check the competitiveness of existing suppliers in terms of the product offering and pricing levels. This again adds on to the time and effort spent in the purchase decision process. In new task situations, the person recognizing the need often does not know how to fulfill the need. Consequently, he or she will spend much more time gathering information and evaluating alternatives. For example, businesses buying new phone systems will often spend weeks (or months) trying to determine their telecommunication needs (the first step in the purchase decision process). 3. List and compare the probable functional, situational, psychological, social, and knowledge needs of (a) a large financial investment office and (b) a college student, both of whom are looking to purchase a new computer printer. Answer: Answers to this question will vary. Students should, however, demonstrate an understanding of how the various needs of a business organization differ from those of a college student. For example, the business organization may have a functional need for large prints, while the college student may have a need (functional as well) for small prints. Large Financial Investment Office: • Functional Needs: High-speed, high-capacity printing, secure document handling, and integration with office networks. • Situational Needs: Reliable service and support, minimal downtime, and compatibility with existing systems. • Psychological Needs: Confidence in the printer's performance and the company’s reliability. • Social Needs: Perception of professionalism and efficiency in the office. • Knowledge Needs: Detailed specifications, maintenance requirements, and cost of ownership. College Student: • Functional Needs: Affordable, compact, and capable of handling various types of documents and occasional high-quality prints. • Situational Needs: Portability, ease of use, and low maintenance. • Psychological Needs: Value for money and a sense of practicality. • Social Needs: Consideration of brand reputation and peer recommendations. • Knowledge Needs: Basic features, cost of consumables, and setup instructions. 4. How might a salesperson work with and assist a business buyer in each step of the buying process: Recognition of the problem or need? Determination of the characteristics of the item and the quantity needed? Description of the characteristics of the item and the quantity needed. Search for and qualification of potential sources? Acquisition and analysis of proposals? Evaluation of proposals and selection of suppliers? Selection of an order routine? Performance feedback and evaluation? Answer: The role of many salespeople is to help potential buyers recognize their needs. A salesperson can accomplish this task by asking questions that help in identifying these needs (covered later in the text). They should closely listen to the buyer’s answers and control the flow of the conversation. After helping a buyer recognize the need, the salesperson may be in a position to help him or her determine the characteristics of the item and the quantity needed. For a salesperson to be effective in this role, the buyer must perceive the salesperson as possessing expertise in the related area. A salesperson with related expertise may help the buyer develop detailed specifications for the solution and also help the buyer determine the quantity of the product. As mentioned above, this would require the buyer to have a great deal of trust in the salesperson’s expertise. Salespeople often serve as an important source of information for buyers; salespeople help buyers in their search for and qualification of potential sources for the proposed solution. Of course, the objective of the salesperson is to make sure his or her organization is considered one of the sources that can provide an appropriate solution. Salespeople help in the acquisition and analysis of a proposal. To do this, they need to understand the evaluation criteria so they can present their proposal in the best light possible. Better yet, salespeople who work closely with the buyer through the earlier stages may have the opportunity to help shape the evaluation criteria. Then, they must make sure that their proposed solution meets or exceeds those criteria. A trusted salesperson may be able to influence the evaluation of the proposals and selection of the suppliers. However, a salesperson in such a trusted position has an ethical obligation to ensure that the best interests of the buyers supersede his or her own interests. Once identified as the selected solution provider, the salesperson may work with a buyer to determine the best order routine. The salesperson must ensure that both the buyer and the selling organization understand and are able to meet their respective obligations associated with the delivery process. This performance feedback and evaluation stage requires salespeople to follow up with their customers (after purchase) to ensure the buyer’s expectations have been met or exceeded. If not, the salesperson needs to address the unmet expectations immediately. This stage is crucial for the long-term success of the relationship. 5. Explain the role of functional attributes and psychological attributes in the Post purchase determination of customer satisfaction. Answer: Functional attributes refer to the features that allow a product to do what it is supposed to do and to the extent to which it does as expected. Products that do not perform as expected will have a negative effect on customer satisfaction. Products that perform better than expected will have a positive effect on customer satisfaction. Psychological attributes refer to the things in the market that shape the buyer’s feelings about the acquisition process and the relationship with the salesperson. For example, at the buyer’s request, the salesperson may make last minute delivery schedule changes that he or she is not otherwise obligated to do. Generally speaking, the stronger the psychological attributes, the greater the customer satisfaction. 6. How might salespeople use their knowledge of the multi-attribute evaluation model to plan and deliver their sales presentations to a buyer? Answer: Salespeople may use their knowledge of the multi-attribute evaluation model in several ways to help plan and deliver their sales presentations to a buyer. For example, salespeople may adjust their presentation so that they highlight the important attributes and reduce the time spent on less important attributes. Other ways in which salespeople may use this information include the following: • Modifying the product offering being proposed • Altering the buyer’s beliefs about the proposed offering • Altering the buyer’s beliefs about the competitor’s offering • Altering the importance weights • Calling attention to neglected attributes 7. What are the implications for a salesperson if, when making a sales call, he or she discovers that there is no needs gap present? Illustrate your answer with an example. Answer: Answers to the question will vary. However, the student should demonstrate an understanding of the salesperson’s ability to help buyers uncover needs that they had not recognized previously. Salespeople often call on customers who do not yet realize that they have a need for the salesperson’s product. If a salesperson discovers there is no needs gap, it implies that the prospect's current solution fully meets their requirements, reducing the likelihood of a sale. For example, if a salesperson is selling advanced printers and finds that a company’s existing printers are already meeting their needs efficiently, the salesperson must pivot to discussing potential future needs or improvements. They might focus on building a relationship or offering value-added services rather than pushing for an immediate sale. 8. Why have knowledge and the capability to creatively apply that knowledge in creating unique solutions become so important for today’s salesperson in the business-to-business marketplace? Answer: As markets become more competitive and technology (e.g., e-commerce) improves, salespeople will have to “add value” to their relationship with the customers to be successful. The ability of salespeople to solve problems plays an important role in adding value to their customer relationships. In addition, the increased competition brought by globalization requires salespeople to be more creative so that they can meaningfully differentiate their market offers. 9. Explain the concept of communication styles and how a salesperson might flex his or her own style to better match the style of the buyer. How would the salesperson’s behaviors and activities differ as he or she advances through the different stages of the selling process? Illustrate your answer with examples. Answer: The concept of communication styles suggests that individuals possess different psychological predispositions to communication. The text covers four categories that individuals can be sorted into based on two dimensions—assertiveness and responsiveness. The resulting four communication styles are amiables—low on assertiveness and high on responsiveness; expressives—high on both responsiveness and assertiveness; drivers—low on responsiveness and high on assertiveness; and analyticals—low on both responsiveness and assertiveness. The salesperson needs to flex his or her communication style based on the communication style of the buyer. This does not mean mirroring the buyer, necessarily; rather, it means adopting a style that enhances communication and moves the sales process in the desired direction. Students’ examples will vary. Communication styles refer to the distinct ways individuals prefer to exchange information, such as being direct or indirect, detail-oriented or big-picture-focused. A salesperson might flex their style by adapting to the buyer's preferences, such as being more detailed and data-driven for a buyer who values thoroughness or being more conversational and big-picture-focused for a buyer who prefers a broad overview. In the initial stages, the salesperson might focus on building rapport and mirroring the buyer’s style. During needs assessment, they would tailor questions and responses to align with the buyer’s communication preferences. In the closing stage, the salesperson would adjust their approach to match the buyer’s decision-making style, whether through detailed proposals or succinct summaries. For example, if a buyer is very analytical, the salesperson should provide comprehensive data and evidence, while a buyer who values relationships might respond better to a personal touch and relationship-building efforts. 10. What are the implications of buying teams for a salesperson selling complex production equipment to a manufacturer firm? Develop an example to explain further and illustrate your answer. Answer: Answers to this question will vary. However, students’ answers should demonstrate their understanding of a buying center. Buying team members are described in terms of their roles and responsibilities within the team. Salespeople need to adjust and interact with each member in those roles. Buying teams imply that a salesperson must address the diverse needs and priorities of multiple stakeholders involved in the decision-making process. For example, if selling a complex production machine, the salesperson must engage with technical experts for equipment specs, financial managers for cost justification, and operations managers for integration and usability concerns. The salesperson must tailor their pitch to address each team member’s specific concerns, provide detailed technical and financial documentation, and facilitate collaborative discussions to align the team’s consensus and secure the sale. Group Activity In many ways recruiting is a lot like buying a product. Accordingly, the recruiting process is very similar to the buying process. The purpose of this section of the guide is to help students understand the recruiting process from the recruiters’ perspective. To complete this section, students need to do two things. First, they need to identify the type of job they would like to obtain after graduation. Second, they are to describe each of the phases of the buying process (outlined in the chapter) in the context of recruiting for their desired position. For example, in phase one, they would describe how the position became available. In phase two, they would describe the qualifications and desirable characteristics the recruiter will look for in candidates. Students should continue the exercise all of the way through phase eight, describing the impact of their first year’s performance on the recruiters’ assessment of other graduates of their institution. The purpose of this exercise is to help students think through the buying decision process in a way that is or will be meaningful to them. In addition, this exercise should better prepare students for the job search process. Experiential Exercises Key Questions during the Buying Decision Process Objective: Your students will be able to understand the importance of good, effective questioning. Time Required: 10 to 15 minutes. Teaching Tip: Have students work individually or in small groups to answer the questions. For each question, have students explain why the question is important. 1. Who, besides you, will be making the decision to buy? Answer: The salesperson’s goal is to determine the various individuals who will be influential in the purchase decision process. This will give the salesperson greater insight into who he/she needs to interact with during the sales process. 2. What problems do you foresee in changing suppliers? Answer: The answer to this question will help the salesperson understand the probability that the buyer will be able to change suppliers. In addition, it provides the salesperson insight into the barriers he/she will have to overcome to move the sales process forward. 3. What do we need to do to win the support of others? Answer: The answer to this question will help the salesperson gain insight into the additional steps that he or she will have to take (e.g., other people in the organization the salesperson will have to meet and win over) to gain the sales. 4. When would you plan to make the purchase decision? Answer; The answer to this question will give the salesperson a timetable for the purchase decision, as well as a benchmark to evaluate his or her ability to meet the deadline. 5. What sense of urgency do you feel about this buying decision? Answer: The answer to this question will allow the salesperson to prioritize his or her allocation of effort and resources to the current, as well as to other, accounts. 6. Other important questions? Answer: Other important questions include: 1. "What are your long-term goals and how does this purchase fit into them?"• This question helps understand the buyer's broader objectives and ensures that the solution aligns with their future plans. 2. "Who else will be involved in the decision-making process?"• Identifying other stakeholders helps address all relevant concerns and build support across the buying team. 3. "What criteria will you use to evaluate potential solutions?"• Understanding the evaluation criteria ensures that the salesperson can emphasize the product’s strengths that align with the buyer’s priorities. Chapter 3 Case Selling for Relationships First, Inc.: Understanding Communication Style, Buying Teams, and Buying Needs Background Relationships First, Inc. is a relatively new entrant in the cloud computing business management software industry, having been in existence for a little over four years. It specializes in providing Web-based customizable customer relationship management software solutions that support an entire company, from accounting to Web capabilities. Its software is constructed around an individual customer record so that accounting, sales, support, shipping, and billing all access identical information for each interaction. The company currently serves a variety of businesses across a number of industries. Customer satisfaction is the company’s top priority and it acts with integrity to fulfill this mission. Its technology is easy to learn and easy to use, and its information technology staff is extremely knowledgeable and customer friendly. The company currently employs more than 75 salespeople who call directly on businesses and organizations throughout the United States. Salespeople are trained to be customer-oriented problem solvers who seek to establish long-term relationships with customers. This approach has allowed Relationships First to experience steady sales gains since its beginning and it hopes to continue its upward growth trajectory. Current Situation Dawn, a recent college graduate who just completed the sales rep training program at Relationships First, is excited about her upcoming meeting with Green Meadows Nursery and Landscape, LLC of Kansas City, Missouri. Privately owned, Green Meadows serves the nursery and landscaping needs of its customers through its two large metro retail locations. Each location has a store manager, and several full -and part-time employees to assist with sales and operations. The company’s owner serves as president and they also employ a director of marketing and sales, who among other things oversees a staff of five outside salespeople, a director of operations, a director of information technology (whose primary responsibility is to run the Web side of their business), and a director of accounting and finance. The outside sales force solicits both residential and commercial accounts and in large part is responsible for growing the non-retail business for Green Meadows. A good friend of Dawn’s, Taylor Shift, happens to be neighbors with Stewart Strong, Green Meadows director of marketing and sales. In a recent conversation with Stewart, Taylor mentioned Dawn and how she might be able to help him at Green Meadows. Stewart suggested that Taylor have Dawn give him a call and subsequently Dawn was able to secure a meeting with Stewart Strong the following Tuesday morning. Dawn was delighted that Taylor provided her with this prospect and was confident that this would help her get off to a fast start at Relationships First. Dawn has been friends with Taylor since grade school. This is not unusual for Dawn, who has many friends and close relationships, likely because she shows such a sincere interest in others, particularly in their hobbies, interests, family, and mutual friends. She enjoys listening to the opinions of others and seems to get along with most everyone, generally avoiding conflict rather than submitting to others. Dawn credits her ability to communicate well orally (she loves to talk and socialize), get along well with others, and build a consensus, in part, for her landing a position in sales at Relationships First. Prior to her meeting with Stewart Strong, Dawn asked Taylor if she could meet her for lunch to find out a little more about Stewart and Green Meadows. When Dawn finally arrived for lunch, late as usual, she wasn’t able to learn as much about Green Meadows as she would have liked, but she did learn the following about Stewart. Taylor indicated that Stewart was a good neighbor, but he certainly wasn’t a friendly, outgoing relationship builder such as Dawn. In fact, he tended to be rather cool, tough, and competitive when it came to relationships. He liked to be in charge of people and situations and was not willing to let others stand in the way of achieving his goals. Stewart manages his time well, is impatient with others, and tends to be very businesslike. He likes extreme sports and appears to have a penchant for taking risks. According to Taylor, at annual home owners’ association meetings, Stewart tends to be the most outspoken individual in attendance. While opinionated, Stewart rarely takes advice from others and prefers to make his own decisions. Although Dawn believed she still had additional work to do before meeting with Stewart, she was at least glad to know a little bit about the person she would be meeting. The more she knew about her buyer, she surmised, the better she could tailor her offering to meet his needs. Questions 1. Based on your understanding of both Dawn and Stewart, how would you characterize the communication style of each? Answer: Dawn has an amiable communication style. She is low on assertiveness and high on responsiveness. Stewart has a driver communication style. He is high on assertiveness and low on responsiveness. 2. What, if any, preparations and style flexing should Dawn make to better relate to and communicate with Stewart Strong? Answer: Students’ answers will vary, but they should include Dawn’s recognition that Stewart has a driver communication style. Accordingly, Dawn must work on becoming more businesslike—being punctual and reducing or eliminating discussion unrelated to the task at hand. When communicating, Dawn must make sure her messages are clear and concise. She should describe solutions in terms of “results” that are important to Stewart. When presenting supporting evidence, she should stick to facts and figures and avoid using opinions of others (e.g., testimonials). She should recognize that Stewart is a risk-taker and give him the opportunity to make decisions quickly. She must also not be offended or discouraged by Stewart’s cold/controlling behavior. Finally, she must guard against being “pushed around” by Stewart when it comes to earning commitment and negotiation. Dawn should prepare by adopting a more **businesslike and direct communication style** to align with Stewart's preference for efficiency and decisiveness. She should focus on providing concise, data-driven information and avoid overly personal or relational approaches, emphasizing how her solutions can meet Stewart's competitive goals and streamline operations. 3. Who all might be involved in the buying decision for Green Meadows with regard to Dawn’s offering? For each, explain why and how? Answer: Students’ answers will vary, but they should mention the involvement of the president (owner), the director of operations, the director of information technology, and the director of accounting and finance in the buying decision for Green Meadows. Students may mention the store managers and salespeople, but their participation in the buying decision would most likely be negligible. It’s likely that the president will be the decision maker with various directors serving as users and influencers. Stewart will likely serve as a user, gatekeeper, and influencer. Few students might also point out that the extent to which the other directors are involved would depend on their respective social styles. 1. Stewart Strong (Director of Marketing and Sales): As the decision-maker overseeing sales and marketing, Stewart will assess how Dawn’s offering aligns with Green Meadows' growth objectives and market strategies. 2. Director of Operations: This person will evaluate how the offering impacts operational efficiency and integration with existing processes. 3. Director of Information Technology: Responsible for technology integration, they will review how the offering fits with the company’s IT infrastructure and online systems. 4. Director of Accounting and Finance: They will consider the financial implications, including cost, budget impact, and return on investment. 4. Explain at least two needs that might be met by Green Meadows by purchasing the software offered by Relationships First. Answer: Students’ answer will vary but should be consistent with the Relationships First’s value proposition. 1. Efficiency in Operations: The software could streamline internal processes such as inventory management, order processing, and customer relationship management, leading to improved operational efficiency and reduced manual effort. 2. Enhanced Customer Engagement: By providing tools for better tracking of customer interactions and preferences, the software could improve Green Meadows' ability to personalize marketing efforts and enhance customer service, potentially increasing customer satisfaction and loyalty. Role Play Situation: Read the case. Characters: Dawn, sales rep for Relationships First, Inc.; Stewart Strong, director of marketing and sales, Green Meadows Nursery and Landscape, LLC. Scene: Location— Stewart Strong’s office at Green Meadows. Action—Dawn meets with Stewart to find out more about Green Meadows operations and needs to see if she can help them. She is also trying to determine who else might be involved in the buying decision and what influence each might have. She has no plans to make a sale on this call. Chapter 3 Role Play Shoes Unlimited Background You are a sales representative for Shoes Unlimited, a manufacturer and marketer of an array of styles of men’s and women’s casual shoes, located in southern Texas. You are responsible for calling on a variety of accounts throughout the midwestern U.S., many of which are independently owned shoe retailers, often in small cities and towns. Current Situation You recently scheduled a meeting with Joe Jackson, owner of Fantastic Footwear, an independent retail shoe store located in a small rural community in southeast Missouri. Joe contacted you after finding your company on the Internet. He is in the process of evaluating several suppliers for his soon-to-be-opened shoe store. Before meeting with Joe, you have decided to prepare a series of questions to ask Joe to identify his situational, functional, social, psychological, and knowledge needs. When meeting with Joe you want to ask him several questions so that you can fully understand his needs and then demonstrate to him how you and your company can best satisfy those needs. Role Play Location: Joe Jackson’s office at Fantastic Footwear Characters: You, Shoes Unlimited sales representative; Joe Jackson, and owner of Fantastic Footwear. Action: Using the questions you developed, have a conversation with Joe to assess his five general types of needs (ask at least one to two questions to assess each need). Chapter 3 Continuing Case Understanding Tom Penders It was Monday afternoon and Brenda Smith was very excited. She just got off the phone with Tom Penders, the administrator in charge of a large medical office in her territory. After an introductory letter and several follow-up phone calls, Tom Penders finally agreed to meet with Brenda next Friday to discuss the possibility of replacing his organization’s old copiers, as well as adding new copiers to keep pace with his organization’s rapid growth. The primary purpose of the meeting was for Tom to learn more about the National Copier Company and its products and for Brenda to learn more about Tom’s company and its specific needs. When Brenda arrived about 10 minutes early for her meeting with Tom Penders at the medical offices on Friday, she was greeted by a receptionist who asked her to be seated. Ten minutes passed and Brenda was promptly shown to Tom’s office. Brenda couldn’t help but notice how organized Tom’s office was. It appeared to Brenda that Tom was a man of detail. First, Tom explained that the medical offices housed over 25 doctors specializing in a variety of fields. They occupied two floors and were planning to expand to the vacant third floor in the near future. Currently, they were organized into four divisions with an office professional assigned to approximately six doctors for each division. Each division ran its own “office” with a separate copier and administrative facilities. Tom also had an assistant and a copier. Upon concluding his overview, Tom provided Brenda with an opportunity to ask questions. After this, Tom systematically went down a list of questions he had about NCC, its products, and Brenda herself. Following this, Tom had his assistant take Brenda on a tour of the facility so she could overview their processes. Before leaving, Tom agreed to meet with Brenda in two weeks. Based on her conversation with Tom, Brenda did not find Tom to be a particularly personable individual. In fact, she found him to be somewhat cool and aloof, both deliberate in his communication and actions. Yet, Tom was willing to learn how NCC could help his medical office. While Brenda preferred communicating with someone more personable and open, such as herself, she was determined to find a way to win Tom’s business. Questions 1. What type of communication style do you believe that Tom exhibits? What are the characteristics of this communication style? Answer: Students should conclude that Tom exhibits an analytical communication style—low on responsiveness and assertiveness. Tom is extremely well organized, inflexible regarding time, slow-paced, and “cool and aloof.” He is also, as Brenda puts it, deliberate in his communications and actions. Tom exhibits a "Analytical" communication style. Characteristics include a focus on details, systematic and deliberate communication, and a preference for data and structured information. Tom values thoroughness and precision and maintains a professional, reserved demeanor. 2. Based on your understanding of Tom’s communication style, outline a plan for selling to Tom Penders. Answer: Students’ answers will vary, but they should include some reference about the need to let Tom make the decision at his pace based on facts rather than opinions. In addition, sales material and the sales person must be logical and well organized. Plan for Selling to Tom: • Prepare Detailed Proposals: Offer clear, data-driven presentations that address Tom's specific needs and organizational structure. • Emphasize Efficiency and Reliability: Highlight how NCC’s products can enhance operational efficiency and meet the detailed requirements of the expanding medical office. • Be Structured and Professional: Maintain a formal tone, provide thorough documentation, and follow a systematic approach to address his questions and concerns. 3. Identify other members of Tom Penders’ organization that may play a role in the buying decision and explain the role they might play. How should Brenda handle these individuals? Answer: Tom’s assistant, along with the other office personnel from the four divisions, may play some role in the process. Tom’s assistant is likely to be the primary gatekeeper. Accordingly, Brenda should make sure to keep him or her happy. Other personnel with whom Brenda may want to connect are the “users.” She would want to work with these people to better determine their needs. However, she needs to be careful when sharing what she learns with Tom. Tom won’t be interested in what others think. He will only be interested in factual information (e.g., usage data, cost data, and so forth) that will help him make the right decision. Students’ answers will vary. However, they should address the points mentioned above. Other Key Members: • Office Managers and Division Heads: They will provide input on specific operational needs and how the copiers will be used in daily activities. • IT Staff: They will evaluate technical compatibility and integration with existing systems. • Finance Department: They will assess budget impact and cost-effectiveness. Brenda should engage these individuals by addressing their specific concerns and providing tailored information relevant to their roles. 4. Explain the types of buyer needs that will be most important in this selling situation. Answer: Students’ answers will vary, but they should focus on functional, psychological, and knowledge needs. The psychological needs should include the need for risk-reduction (e.g., warranties, performance data, and so forth). Tom will likely not experience much in the way of situational or social needs. Important Buyer Needs: • Efficiency and Integration: Copiers must enhance operational workflow and integrate seamlessly with current processes. • Cost-effectiveness and Reliability: The solution should offer long-term value and minimal maintenance issues. • Scalability: The copiers should support future growth and expansion of the medical office. Solution Manual for SELL: Trust Based Professional Selling Thomas N. Ingram, Raymond (Buddy) W. LaForge, Ramon A. Avila, Charles H. Schwepker, Michael R. Williams 9781305662094, 9781305662087