Mc Graw Hill Education

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1 SELLING Building Partnerships Stephen B. Castleberry University of Minnesota Dulutk John F. Tanner, Jr. Baylor University Mc Graw Hill Education

2 CONTENTS Preface vi Acknowledgments ix About the Authors xiii Chapter 1 Selling and Salespeople 2 Why Learn about Personal Selling? 4 Everyone Sells 5 Creating Value: The Role of Salespeople in a Business 6 What Do Salespeople Do? 8 Client Relationship Manager 8 Account Team Manager 9 Supply Chain Logistics and Channel Manager 9 Information Provider to Their Firm 10 Types of Salespeople 10 Selling and Distribution Channels 10 Describing Sales Jobs 13 The Sales Jobs Continuum 15 Examples of Sales Jobs 15 Characteristics of Successful Salespeople 16 Self-Motivated 16 Dependability and Trustworthiness 16 Ethical Sales Behavior 18 Customer and Product Knowledge 1 8 Analytical Skills and the Ability to Use Information Technology 1 8 Communication Skills 1 8 Flexibility and Agility 18 Creativity 18 Confidence and Optimism 1 8 Emotional Intelligence 19 Are Salespeople Born or Made? 19 Rewards in Selling 19 Independence and Responsibility 20 Financial Rewards 20 Management Opportunities 20 The Building Partnerships Model 20 Selling Yourself 21 part 1 Summary 22 Key Terms 23 Questions and Problems 24 Case Problems 24 Additional References 26 KNOWLEDGE AND SKILL REQUIREMENTS 28 Chapter 2 Ethical and Legal Issues in Selling 28 Ethics and Professional Selling 30 The Evolution of Selling 30 Ethics and Partnering Relationships 31 Factors Influencing the Ethical Behavior of Salespeople 33 Selling Ethics and Relationships 37 Relationships with Customers 37 Relationships with the Salesperson's Company Relationships with Colleagues 43 Relationships with Competitors 44 Legal Issues 45 Uniform Commercial Code 45 Misrepresentation or Sales Puffery 47 Illegal Business Practices 48 International Ethical and Legal Issues 51 Resolving Cultural Differences 51 Legal Issues 52 Selling Yourself 52 Summary 53 Key Terms 54 Questions and Problems 54 Case Problems 55 Additional References 57

3 Chapter 3 Buying Behavior and the Buying Process 58 Why People Buy 60 Types of Customers 60 Producers 61 Resellers 62 OEM Purchasers 61 End Users 61 Government Agencies 63 Institutions 64 Consumers 64 Organizational Buying and Selling 64 Complexity of the Organizational Buying Process 64 Derived versus Direct Demand 65 How Do Organizations Make Buying Decisions? 65 Steps in the Buying Process 65 Creeping Commitment 68 Types of Organizational Buying Decisions 68 New Tasks 68 Straight Rebuys 69 Modified Rebuys 70 Who Makes the Buying Decision? 70 Users 71 Initiators 71 Influences 71 Gatekeepers 72 Deciders 72 Supplier Evaluation and Choice 73 Organizational Needs and Criteria 73 Individual Needs of Buying Center Members 76 Professional Purchasing's Growing Importance 78 Supply Chain Management 79 Supplier Relationship Management 80 Multiattribute Model of Product Evaluation and Choice 83 Performance Evaluation of Characteristics 83 Importance Weights 84 Overall Evaluation 84 Value Offered 85 Supplier Selection 85 Implications for Salespeople 86 Selling Yourself 87 Summary 88 Key Terms 88 Questions and Problems 89 Case Problems 90 Additional References 92 Chapter 4 Using Communication Principles to Build Relationships 94 Building Relationships through Two-Way Communication 96 The Communication Process 96 Communication Breakdowns 96 Sending Verbal Messages Effectively 97 Choice of Words 98 Voice Characteristics 98 Stories 99 Keep Open Lines of Communication 99 Active Listening 100 Repeating Information 102 Restating or Rephrasing Information 103 Clarifying Information 103 Summarizing the Conversation 103 Tolerating Silences 104 Concentrating on the Ideas Being Communicated 104 Reading Nonverbal Messages from Customers 104 Body Angle 105 Face 105 Arms 106 Hands 106 Legs 107 Body Language Patterns 107 Sending Messages with Nonverbal Communication 108 Using Body Language 108 The Role of Space and Physical Contact 110 Appearance 111 Communicating via Technology 113 Telephone and Voice Mail Communications 113 Communications 114 Social Networking 1 15 Adjusting for Cultural Differences 117 Selling Yourself 118 Summary 119 Key Terms 120 Questions and Problems 120 Case Problems 121 Additional References 122 Chapter 5 Adaptive Selling for Relationship Building 124 Types of Presentations 126 Standard Memorized Presentation 126 Outlined Presentation 127 Customized Presentation 127 xxiv

4 Adaptive Selling and Sales Success 128 Adaptive Selling: The Importance of Knowledge 129 Product and Company Knowledge 130 Knowledge about Sales Situations and Customers 130 How to Create Knowledge 130 Retrieving Knowledge from the Knowledge Management System 131 The Social Style Matrix: A Training Program for Building Adaptive Selling Skills 131 Dimensions of Social Styles 132 Categories of Social Styles 134 Identifying Customers' Social Styles 136 Social Styles and Sales Presentations 137 Versatility 139 Recap: The Role of Knowledge in Adapting 139 Systems for Developing Adaptive Selling Skills 140 Selling Yourself 140 part 2 Summary 141 Key Terms 142 Questions and Problems 142 Case Problems 143 Additional References 144 THE PARTNERSHIP PROCESS 146 Chapter 6 Prospecting 146 The Importance of Prospecting 148 Characteristics of a Good Prospect 148 Does a Want or Need Exist? 149 Does the Lead Have the Ability to Pay? 149 Does the Lead Have the Authority to Buy? 149 Can the Lead Be Approached Favorably? 149 Is the Lead Eligible to Buy? 150 Other Criteria 150 How and Where to Obtain Prospects 150 Satisfied Customers 151 Endless-Chain Method 152 Networking 152 Social Media 155 Other Internet Uses 157 Ads and Direct Mail 157 Shows, Fairs, and Merchandise Markets 158 Webinars and Seminars 159 Lists and Directories 159 Databases and Data Mining 159 Cold Calling 160 Spotters 161 Telemarketing 161 Becoming an Expert 162 Sales Letters 162 Other Sources of Leads 164 Lead Qualification and Management Systems 165 Overcoming a Reluctance to Prospect 166 Selling Yourself 167 Summary 168 Key Terms 168 Questions and Problems 169 Case Problems 169 Role Play Case 170 Additional References 171 Chapter 7 Planning the Sales Call 172 Why Plan the Sales Call? 174 Obtaining Precall Information 174 The Prospect/Customer as an Individual 175 The Prospect's/Customer's Organization 175 Sources of Information 177 Resources within Your Company 177 The Internet 178 Secretaries and Receptionists 178 Noncompeting Salespeople 179 Traditional Secondary Sources 179 The Prospect 179 Other Sources 179 Setting Call Objectives 179 Criteria for Effective Objectives 1 80 Setting More Than One Call Objective 181 Setting Objectives for Several Calls 182 Buyers Are Setting Goals Also 184 Making an Appointment 1 84 The Right Person 185 The Right Time 185 The Right Place 186 With Subordinates 187 Telephoning for Appointments 188 Additional Planning 188 Selling Yourself 189 Summary 190 Key Terms 190 Questions and Problems 190 xx

5 Case Problems 191 Role Play Case 193 Additional References 193 Chapter 8 Making the Sales Call 194 Making a Good Impression 196 Waiting for the Prospect 196 First Impressions 197 Selecting a Seat 198 Getting the Customer's Attention 198 Developing Rapport 200 When Things Go Wrong 202 Identifying the Prospect's Needs: The Power of Asking Questions 202 Asking Open and Closed Questions 203 Spin Technique 204 Reiterating Needs You Identified before the Meeting 209 Additional Considerations 209 Developing a Strategy for the Presentation 209 Offering Value: The Solution to the Buyer's Needs 210 Relating Features to Benefits 210 Assessing Reactions 212 Building Credibility during the Call 214 Selling to Groups 216 Selling Yourself 217 Summary 218 Key Terms 219 Questions and Problems 220 Case Problems 220 Role Ploy Case 221 Additional References 222 Chapter 9 Strengthening the Presentation 224 Characteristics of a Strong Presentation 226 Keeps the Buyer's Attention 226 Improves the Buyer's Understanding 226 Helps the Buyer Remember What Was Said 226 Offers Proof of the Salesperson's Assertions 227 Creates a Sense of Value 228 How to Strengthen the Presentation 228 Verbal Tools 228 Visual Tools 229 Product Demonstrations 235 Handouts 236 Written Proposals 237 Value Analysis: Quantifying the Solution 238 Dealing with the Jitters 245 Selling Yourself 246 Summary 247 Key Terms 247 Questions and Problems 248 Case Problems 248 Role Play Case 250 Additional References 250 Chapter 10 Responding to Objections 252 The Goal Is to Build Relationships and Sell Value 254 When Do Buyers Raise Objections? 254 Setting Up an Initial Appointment 255 The Presentation 255 Attempting to Obtain Commitment 255 After the Sale 255 Common Objections 256 Objections Related to Needs 256 Objections Related to the Product 257 Objections Related to the Source 257 Objections Related to the Price 258 Objections Related to Time 259 Other Objections 259 Behaviors of Successful Salespeople 260 Anticipate Objections 260 Forestall Known Concerns 260 Relax and Listen Do Not Interrupt 262 Evaluate Objections 263 Always Tell the Truth 263 Effective Response Methods 264 Direct Denial 265 Indirect Denial 266 Compensation Method 266 Referral Method 268 Revisit Method 268 Acknowledge Method 269 Postpone Method 269 Using the Methods 270 Confirming that the Objection has been Answered 271 Objections When Selling to a Group of Buyers 272 The Price Objection 272 Use Up-to-Date Information 272 Establish the Value 272 Use Communication Tools Effectively 275 Dealing with Tough Customers 275 Selling Yourself 276 xxvi

6 Summary 277 Key Terms 277 Questions and Problems 278 Case Problems 279 Role Play Case 280 Additional References 281 Chapter 11 Obtaining Commitment 282 Securing Commitment Today 284 Part of the Process 284 The Importance of Securing Commitment 286 Financial Terms and Conditions 287 Discounts 287 Credit Terms 287 Shipping Costs 289 Presenting Price 289 When to Attempt to Obtain Commitment 290 Buyer Comments 290 Nonverbal Cues 292 How to Successfully Obtain Commitment 293 Maintain a Positive Attitude 293 Let the Customer Set the Pace 293 Be Assertive, Not Aggressive 293 Sell the Right Item in the Right Amounts 294 Effective Methods 295 Direct Request 295 Benefit Summary 295 Balance Sheet Method 296 Probing Method 297 Alternative Choice 298 Trial Offers 298 Other Methods 299 If Commitment Is Obtained 300 No Surprises 300 Confirm the Customer's Choice 300 Get the Signature 300 Show Appreciation 301 Cultivate for Future Calls 301 Review the Actions to Be Taken 301 If Commitment Is Not Obtained 301 Some Reasons for Lost Opportunities 302 Discovering the Cause 303 Suggestions for Dealing with Rejection 303 Bringing the Interview to a Close 305 Selling Yourself 305 Summary 306 Key Terms 307 Ethics Problems 307 Questions and Problems 307 Case Problems 308 Role Play Case 311 Additional References 311 Chapter 12 Formal Negotiating 312 The Nature of Negotiation 314 Negotiation versus Nonnegotiation Selling 314 What Can Be Negotiated? 315 Are You a Good Negotiator? 315 Planning for the Negotiation Session 316 Location 316 Time Allotment 317 Negotiation Objectives 317 Team Selection and Management 320 Individual Behavior Patterns 322 Information Control 324 The Negotiation Meeting 324 Preliminaries 325 General Guidelines 326 Dealing with Win-Lose Negotiators 327 Making Concessions 331 Recap of a Successful Negotiation Meeting 333 Selling Yourself 334 Summary 335 Key Terms 335 Questions and Problems 336 Case Problems 337 Role Play Case 338 Additional References 339 Chapter 13 Building Partnering Relationships 340 The Value of Customers 342 Relationships and Selling 343 Types of Relationships 344 Market Exchanges 344 Partnerships 346 Managing Relationships and Partnering 349 Choosing the Right Relationship 349 Using Technology to Increase Efficiency 351 Phases of Relationship Development 351 Awareness 352 Exploration 352 Expansion 352 Commitment 353 Dissolution 353 xxvii

7 Characteristics of Successful Partnerships 353 Mutual Trust 353 Open Communication 357 Common Goals 358 Commitment to Mutual Gain 358 Organizational Support 359 Selling Yourself 360 Summary 360 Key Terms 361 Questions and Problems 361 Case Problems 362 Role Play Case 364 Additional References 364 Chapter 14 Building Long-Term Partnerships 366 Exploration 368 Set the Right Expectations 368 Monitor Order Processing 368 Ensure Proper Initial Use of the Product or Service 369 Follow Up 370 Handle Customer Complaints 371 Expansion 376 Generating Repeat Orders 377 Upgrading 379 Full-Line Selling 380 Cross-Selling 380 Commitment 380 Securing Commitment to a Partnership 381 Commitment Must Be Complete 382 Communication 383 Corporate Culture 383 The Salesperson as Change Agent 385 Dissolution 387 Limited Personal Relationships 387 Failing to Monitor Competitor Actions 388 Failing to Monitor the Industry 388 Falling into Complacency 388 Conflict 389 Selling Yourself 390 Summary 391 Key Terms 392 Questions and Problems 392 Case Problems 393 Role Play Case 394 Additional References 395 part J THE SALESPERSON AS MANAGER 396 Chapter 15 Managing Your Time and Territory 396 The Value of Time 398 The Self-Management Process 398 Setting Goals 399 The Need for Goals 399 The Nature of Goals 399 Types of Sales Goals 401 Setting Sales Goals 403 Allocating Resources 403 Resources to Be Allocated 403 Where to Allocate Resources 403 Account Classification and Resource Allocation 404 Investing in Accounts 407 Implementing the Time Management Strategy 408 Daily Activity Planning 410 Guidelines 410 Planning Process 410 Making More Calls 412 Handling Paperwork and Reports 415 Evaluating Performance 416 Postcall Analysis 416 Activity Analysis 417 Performance Analysis 417 Productivity Analysis 418 Selling Yourself 419 Summary 419 Key Terms 420 Questions and Problems 420 Case Problems 421 Role Play Case 423 Additional References 423 Chapter 16 Managing within Your Company 424 Building Internal Partnerships 426 The Importance of Internal Partnerships 426 The Role of Sales 426 Selling Internally 427 Company Areas Important to Salespeople 429 Manufacturing 429 Administration 430 Shipping 430 xxviii

8 Customer Service 430 Marketing 431 Sales 431 Partners in the Sales Organization 432 Sales Management 432 Field Sales Managers 437 Managing Ethics in Sales 438 Ethics and the Sales Executive 438 Ethics and the Field Sales Manager 439 Responding to Unethical Requests 439 Salespeople as Partners 440 Geographic Salespeople 440 Account Salespeople 441 Product Specialists 442 Inside versus Outside 443 Sales Teams 444 Selling Yourself 446 Summary 447 Key Terms 448 Questions and Problems 448 Case Problems 449 Role Play Case 452 Additional References 452 Chapter 17 Managing Your Career 454 Opportunities in Selling 456 Making a Good Match 456 Understanding Yourself 457 Understanding the Company 458 The Recruiting Process 461 Selecting Salespeople 461 Applicant Information Sources 461 Selling Your Capabilities 463 Preparing the Resume 463 Gaining the Interview 464 The Interview 468 Special Types of Interviews 471 Follow-Up 473 Interviewing Never Ends 473 Managing Your Career Goals 473 Making the Transition from College to Career 473 Dual Career Path 475 Continue to Develop Your KSAs 475 Managing Stress 478 Situational Stress 479 Felt Stress 480 Selling Yourself 481 Summary 482 Key Terms 483 Questions and Problems 483 Case Problems 484 Role Play Case 486 Additional References 486 Role Play Case 1: Stubb's Bar-B-Q RP 488 Role Play Case 2: NetSuite RP 492 Photo Credits 495 Endnotes EN-1 Glossary G-l Indexes 1-1 1

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