Do a Sales Presentation and Report Instructions and Submission Assignment 5 is the final assignment in the series relating to your chosen product

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Library and Archives Canada Cataloguing in Publication

Manning, Gerald L., author Selling today : partnering to create value / Gerald L. Manning , Michael Ahearne, Barry L. Reece, H.F. (Herb) MacKenzie. — Seventh Canadian edition.

Includes index. Revision of: Selling today : partnering to create value / Gerald L. Manning … [et al.] 6th Canadian ed. Toronto : Pearson Canada, 2013. ISBN 978-0-13-315685-0 (pbk.)

1. Selling—Textbooks. I. Ahearne, Michael, author II. Reece, Barry L., author III. MacKenzie, H. F., author IV. Title.

HF5438.25.M35 2015 658.85 C2014-904175-6

ISBN 978-0-13-315685-0

v

Part I Developing a Personal Selling Philosophy 1

1 Relationship Selling Opportunities in the Information Economy 1

2 Evolution of Selling Models That Complement the Marketing Concept 29

Part II Developing a Relationship Strategy 50

3 Ethics: The Foundation for Relationships That Create Value 50

4 Creating Value with a Relationship Strategy 76

5 Communication Styles: A Key to Adaptive Selling Today 98

Part III Developing a Product Strategy 124

6 Creating Product Solutions 124 7 Product-Selling Strategies That Add

Value 148

Part IV Developing a Customer Strategy 169

8 The Buying Process and Buyer Behaviour 169

9 Developing and Qualifying Prospects and Accounts 195

Part V Developing a Presentation Strategy 225

10 Approaching the Customer with Adaptive Selling 225

11 Determining Customer Needs with a Consultative Questioning Strategy 252

12 Creating Value with the Consultative Presentation 280

13 Negotiating Buyer Concerns 308 14 Adapting the Close and Confirming

the Partnership 334 15 Servicing the Sale and Building

the Partnership 356

Part VI Management of Self and Others 380

16 Opportunity Management: The Key to Greater Sales Productivity 380

17 Management of the Sales Force 402

Appendix 424 Endnotes 442 Name Index 461 Subject Index 465

Brief Contents

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vii

Preface xv About the Authors xxv

Part I Developing a Personal Selling Philosophy 1

1 Relationship Selling Opportunities in the Information Economy 1

Personal Selling Today—A Definition and a Philosophy 2

Emergence of Relationship Selling in the Information Economy 3

Considerations for a Future in Personal Selling 6

Wide Range of Employment Opportunities 6 Activities Performed by Salespeople 7 Above-Average Income 9 Above-Average Psychic Income 10 Opportunity for Advancement 10 Opportunities for Women 11 Employment Settings in Selling Today 11 Selling through Channels 12 Career Opportunities in the Service Channel 12 Career Opportunities in the Business Goods Channel 15 Career Opportunities in the Consumer Goods

Channel 17 Selling Skills—One of the “Master Skills for

Success” in the Information Age 18 Knowledge Workers in the Information Economy 19 Managerial Personnel 20 Professionals 20 Entrepreneurs 21 Marketing Personnel and Customer Service

Representatives 21 Learning to Sell 22 Corporate-Sponsored Training 22 Training Provided by Commercial Vendors 22 Certification Programs 24 College and University Courses 24

Reviewing Key Concepts 25 Key Terms 26 Review Questions 26 Application Exercises 26

Role-Play Exercise 27 Reality Selling Video Case Problem 27 Partnership Selling: A Role Play/Simulation 28

2 Evolution of Selling Models That Complement the Marketing Concept 29

Marketing Concept Requires New Selling Models 30

Evolution of the Marketing Concept 31 Marketing Concept Yields Marketing Mix 32 Important Role of Personal Selling 33 Evolution of Consultative Selling 33 Evolution of Strategic Selling 35 The Strategic/Consultative Selling Model 36 Evolution of Partnering 42 Strategic Selling Alliances—The Highest Form of

Partnering 43 Partnering Is Enhanced with High Ethical

Standards 44 Partnering Is Enhanced with Customer Relationship

Management 45 Value Creation—The New Selling

Imperative 45

Reviewing Key Concepts 46 Key Terms 47 Review Questions 47 Application Exercises 48 Role-Play Exercise 48 Reality Selling Video Case Problem 48 Part I Role-Play Exercise 49

Part II Developing a Relationship Strategy 50

3 Ethics: The Foundation for Relationships That Create Value 50

Developing a Relationship Strategy for Partnering-Style Selling 51

Emotional Intelligence 51 Issues Challenging the Ethics of Salespeople 52 Factors Influencing Ethical Decision Making of

Salespeople 54 Influences in a Global Economy 55

Contents

viii C o n t e n t s

Influence of Company Policies and Practices 57 Influence of the Sales Manager 61 Influence of the Salesperson’s Personal Values 61 Influence of Laws, Contracts, and Agreements 63 Building Trust with The Transactional,

Consultative, and Strategic Alliance Buyer 64

Making Ethical Decisions That Build Selling Relationships 64

Influence of Character in Ethical Decision Making 66 The Erosion of Character on Ethical Decision

Making 66 Developing a Personal Code of Ethics

That Adds Value 69

Reviewing Key Concepts 70 Key Terms 71 Review Questions 72 Application Exercises 72 Role-Play Exercise 74 Reality Selling Video Case Problem 74

4 Creating Value with a Relationship Strategy 76

Relationships Add Value 77 Partnering—The Highest-Quality Selling

Relationship 78 Relationship Strategies Focus on Four Key Groups 80 Adapting the Relationship Strategy 81 Thought Processes that Enhance Your Selling

Relationship Strategy 81 Self-Concept—An Important Dimension of the

Relationship Strategy 81 The Win-Win Philosophy 82 Empathy and Ego Drive 84 Verbal and Nonverbal Strategies that Add Value

to Your Selling Relationships 84 Adding Value with Nonverbal Messages 85 Impact of Appearance on Relationships 88 Effect of Voice Quality on Relationships 89 Effect of Etiquette on Your Relationships 90 Conversational Strategies that Enhance Selling

Relationships 91 Comments on Here and Now Observations 91 Compliments 92 Search for Mutual Acquaintances or Interests 92 Self-Improvement Strategies that

Add Value 92

Reviewing Key Concepts 94 Key Terms 94

Review Questions 95 Application Exercises 95 Role-Play Exercise 96 Reality Selling Video Case Problem 97

5 Communication Styles: A Key to Adaptive Selling Today 98

Communication Styles—An Introduction to Managing Selling Relationships 99

Communication-Style Bias 100 Communication-Style Principles 101 Improving Your Relationship Selling Skills 102 Communication-Style Model 102 Dominance Continuum 102 Sociability Continuum 104 Four Styles of Communication 105 Popularity of the Four-Style Model 112 Determining Your Communication Style 113 Minimizing Communication-Style Bias 113 How Communication-Style Bias Develops 114 Adaptive Selling Requires Versatility 114 Building Strong Relationships Through

Style Flexing 118 Building Relationships with Emotive Customers 118 Building Relationships with Directive Customers 119 Building Relationships with Reflective

Customers 119 Building Relationships with Supportive

Customers 119 Word of Caution 119

Reviewing Key Concepts 120 Key Terms 120 Review Questions 121 Application Exercises 121 Role-Play Exercise 122 Reality Selling Video Case Problem 122 Part II Role-Play Exercise 123

Part III Developing a Product Strategy 124

6 Creating Product Solutions 124 Developing a Product Solution that Adds

Value 125 Selling Solutions 126 Explosion of Product Options 127 Creating Solutions with Product Configuration 128 Preparing Written Proposals 128

ixC o n t e n t s

Become a Product Expert 129 Product Development and Quality Improvement

Processes 131 Performance Data and Specifications 131 Maintenance and Service Contracts 132 Price and Delivery 133 Become a Company Expert 133 Company Culture and Organization 135 Company Support for Product 136 Become the Industry Expert—Know Your

Competition 137 Develop and Communicate a Healthy Attitude

toward Your Competition 137 Sources of Product, Company, and Industry

Information 138 Web-Based Sources, Catalogues, and Marketing-

Related Sales Support Information 138 Engage in Plant Tours 138 Build Strong Relationships with Internal Sales and

Sales Support Team Members 139 Today’s Wired Customers Have a Lot of Product,

Competitive, and Industry Knowledge 139 Researching and Using Products 140 Reading and Studying Publications 140 Word of Caution 140 Creating Value with a Feature–Benefit

Strategy 141 Distinguish between Features and Benefits 141 Use Bridge Statements 142 Identify Features and Benefits 142 Avoid Information Overload 143

Reviewing Key Concepts 144 Key Terms 144 Review Questions 145 Application Exercises 145 Role-Play Exercise 146 Reality Selling Video Case Problem 146 Partnership Selling: A Role Play/Simulation 147

7 Product-Selling Strategies That Add Value 148

Product Positioning—In a Competitive Marketplace 149

Essentials of Product Positioning 150 Salesperson’s Role in Product Differentiation 150 Custom-Fitting and Communicating the Value

Proposition 151 The Three-Dimension (3-D) Product Solutions

Selling Model 151

Product-Positioning Strategies to Sell New (Vs. Mature) and Low-Priced (Vs. Value-Added) Products 155

Selling New Products versus Well-Established Products 155

Selling Products with a Price Strategy 157 Selling Your Product with a Value-Added Strategy 159 Value Creation Investments for Transactional,

Consultative, and Strategic Alliance Buyers 163

Reviewing Key Concepts 164 Key Terms 165 Review Questions 165 Application Exercises 165 Role-Play Exercise 166 Reality Selling Video Case Problem 166 Part III Role-Play Exercise 167

Part IV Developing a Customer Strategy 169

8 The Buying Process and Buyer Behaviour 169

Developing a Customer Strategy 170 Adding Value with a Customer Strategy 171 Complex Nature of Customer Behaviour 172 Consumer Versus Business Buyers 173 Types of Business Buying Situations 173 Types of Consumer Buying Situations 175 Achieving Alignment with the Customer’s

Buying Process 176 Steps in the Typical Buying Process 176 Understanding the Buying Process of the

Transactional, Consultative, and Strategic Alliance Buyer 179

Transactional Process Buyer 179 Consultative Process Buyer 179 Strategic Alliance Process Buyer 180 The Buyer Resolution Theory 180 Understanding Buyer Behaviour 182 Basic Needs That Influence Buyer Behaviour 182 Group Influences That Affect Buying Decisions 184 Perception—How Customer Needs Are Formed 187 Buying Motives 188

Reviewing Key Concepts 191 Key Terms 192 Review Questions 192 Application Exercises 192 Role-Play Exercise 193 Reality Selling Video Case Problem 193

x C o n t e n t s

9 Developing and Qualifying Prospects and Accounts 195

Prospecting and Account Development—An Introduction 196

Importance of Prospecting and Account Development 198

Prospecting Requires Planning 198 Account Development and Prospecting Plans Must Be

Assessed Often 200 Sources of Prospects 200 Referrals 201 Centres of Influence, Friends, and Family

Members 202 Directories 202 Trade Publications 203 Trade Shows and Special Events 204 Telemarketing and Email 205 Direct-Response Advertising and Sales Letters 206 Websites 206 Computerized Databases 206 Cold Calling 208 Networking 209 Educational Seminars 211 Prospecting and Account Development

by Non-Sales Employees 211 Combination Approaches 212 Qualifying Prospects and Accounts 212 Collecting and Organizing Prospect

Information 213 Sales Intelligence 214 Managing the Prospect Base 216 Portfolio Models 217 Sales Process Models 218 Pipeline Management, Pipeline Analytics, and Pipeline

Dashboards 219

Reviewing Key Concepts 221 Key Terms 221 Review Questions 221 Application Exercises 222 Role-Play Exercise 222 Reality Selling Video Case Problem 223 Part IV Role-Play Exercise 224

Part V Developing a Presentation Strategy 225

10 Approaching the Customer with Adaptive Selling 225

Developing the Presentation Strategy 226

Presentation Strategy Adds Value 227 Planning the Preapproach 228 Establishing Presentation Objectives 229 Team Presentation Strategies 230 Strategies for Selling to a Buying Committee 231 Adaptive Selling: Builds on Four Strategic Areas of

Personal Selling 232 Developing the Six-Step Presentation Plan 233 Planning the Presentation 234 Adapting the Presentation Plan to the Customer’s

Buying Process 235 The Approach 235 The Telephone Contact 236 The Social Contact—Building Rapport 239 The Business Contact 241 Converting the Buyer’s Attention and Arousing

Interest 241 Coping with Sales Call Reluctance 246 Selling to the Gatekeeper 247

Reviewing Key Concepts 247 Key Terms 248 Review Questions 248 Application Exercises 249 Role-Play Exercise 249 Reality Selling Video Case Problem 250 Partnership Selling: A Role Play/Simulation 250

11 Determining Customer Needs with a Consultative Questioning Strategy 252

The Consultative Sales Process Adds Value 254

The Four-Part Need-Satisfaction Model 256 Part One—Need Discovery 256 Part Two—Selection of the Solution 256 Part Three—Need Satisfaction through Informing,

Persuading, and/or Reminding 257 Part Four—Servicing the Sale 258 Creating Value with Need Discovery 258 Need Discovery—Asking Questions 259 The Four-Part Consultative Questioning Strategy 261 Qualifying to Eliminate Unnecessary Questions 267 Need Discovery—Listening to and

Acknowledging the Customer’s Response 268 Need Discovery—Establishing Buying Motives 269 Selecting Solutions that Create Value 269 Selecting Solutions—Match Specific Benefits with

Buying Motives 270 Selecting Solutions—Product Configuration 271

xiC o n t e n t s

Selecting Solutions—Make Appropriate Recommendations 272

Need Discovery and the Transactional Buyer 273 Involving the Prospect in the Need Discovery 273 Transitioning to the Presentation 273 Planning and Execution—Final Thoughts 274 Reviewing Key Concepts 275 Key Terms 276 Review Questions 276 Role-Play Application Exercises for the Questions,

Questions, Questions Video Series 276 Reality Selling Video Case Problem 277 Partnership Selling: A Role Play/Simulation 278

12 Creating Value with the Consultative Presentation 280

Need Satisfaction—Selecting a Presentation Strategy 282

Need Satisfaction—The Informative Presentation Strategy 283

Need Satisfaction—The Persuasive Presentation Strategy 283

Need Satisfaction—The Reminder Presentation Strategy 284

Guidelines for Creating a Presentation that Adds Value 285

Adapt the Presentation to Meet the Unique Needs of the Customer 285

Cover One Idea at a Time and Use an Appropriate Amount of Detail 287

Use Proof Devices to Demonstrate Buyer Benefits 287 Appeal to As Many Senses as Appropriate 288 Balance Telling, Showing, and Involvement 289 Develop Creative Presentations 290 Consider the Use of Humour—in Moderation 290 Choose the Right Setting 290 Document the Value Proposition 290 Quantifying the Solution 291 Check Sales Tools 291 Summarize Major Points 291 Guidelines for a Persuasive Presentation Strategy

that Adds Value 292 Place Special Emphasis on the Relationship 292 Target Emotional Links and Use a Persuasive

Vocabulary 293 Sell Specific Benefits and Obtain Customer

Reactions 293 Use of Showmanship 294 Minimize the Negative Impact of Change 294 Place the Strongest Appeal at the Beginning or End 295

Use the Power of Association with Metaphors, Stories, and Testimonials 295

Guidelines for a Group Sales Presentation 296 Enhancing the Group Presentation with Mental

Imagery 296 Audiovisual Presentation Fundamentals 297 Selling Tools for Effective Demonstrations 298 Product and Plant Tours 298 Models 298 Photos, Illustrations, and Brochures 299 Portfolios 299 Reprints 299 Catalogues 300 Graphs, Charts, and Test Results 300 Bound Paper Presentations 300 Laptop Computers and Demonstration Software 300 Rehearse the Presentation 302 Plan for the Dynamic Nature of Selling 302

Reviewing Key Concepts 304 Key Terms 304 Review Questions 305 Application Exercises 305 Role-Play Exercise 305 Reality Selling Video Case Problem 306 Partnership Selling: A Role Play/Simulation 307

13 Negotiating Buyer Concerns 308 Negotiating Buyer Concerns and Problems 309 Formal Integrative Negotiation—Part of the

Win-Win Relationship Strategy 310 Negotiation Is a Process 311 Planning for Formal Negotiations 313 Conducting the Negotiation Session 316 Know When to Walk Away 317 Common Types of Buyer Concerns 318 Concerns Related to Need for the Product 318 Concerns about the Product or Service 318 Concerns Related to Source 319 Concerns Related to Time 320 Concerns Related to Price 320 Specific Methods of Negotiating Buyer

Concerns 320 Direct Denial 320 Indirect Denial 321 Questions 322 Superior Benefit 322 Demonstration 322 Trial Offer 322 Third-Party Testimony 323 Postpone Method 323

xii C o n t e n t s

Creating Value During Formal Negotiations 324

How to Deal with Price Concerns 324 Negotiating Price with a Low-Price Strategy 326 Working with Buyers Who are Trained in

Negotiation 327 Budget Limitation Tactic 327 Take-It-or-Leave-It Tactic 328 Let-Us-Split-the-Difference Tactic 328 “If … Then” Tactic 328 “Sell Low Now, Make Profits Later” Tactic 329

Reviewing Key Concepts 329 Key Terms 330 Review Questions 330 Application Exercises 331 Role-Play Exercise 331 Reality Selling Video Case Problem 331 Partnership Selling: A Role Play/Simulation 333

14 Adapting the Close and Confirming the Partnership 334

Adapting the Close—An Attitude that Adds Value 335

Review the Value Proposition from the Prospect’s Point of View 337

Closing the Sale—The Beginning of the Partnership 337

Guidelines for Closing the Sale 337 Focus on Dominant Buying Motives 337 Longer Selling Cycles and Incremental

Commitments 338 Negotiate the Tough Points before Attempting the

Close 339 Avoid Surprises at the Close 339 “Tough-Mindedness”—Display a High Degree of

Self-Confidence at the Close 340 Ask for the Order More Than Once 340 Recognize Closing Clues 340 Specific Methods for Closing the Sale 342 Trial Close 343 Direct Appeal Close 343 Assumptive Close 343 Summary-of-Benefits Close 345 Special Concession Close 346 Multiple Options Close 346 Balance Sheet Close 346 Management Close 347 Impending Event Close 347 Combination Closes 348

Adapting to the Customer’s Communication Style 348 Practise Closing 349 Confirming the Partnership when the Buyer Says

Yes 350 What to Do When the Buyer Says No 350

Reviewing Key Concepts 352 Key Terms 352 Review Questions 353 Application Exercises 353 Role-Play Exercise 354 Reality Selling Video Case Problem 354 Partnership Selling: A Role Play/Simulation 355

15 Servicing the Sale and Building the Partnership 356

Building Long-Term Partnerships with Customer Service 357

Achieving Successive Sales 358 Responding to Increased Postsale Customer

Expectations 359 High Cost of Customer Attrition 360 Current Developments in Customer

Service 361 Computer-Based Systems 362 Customer Service Methods that Strengthen

the Partnership 362 Adding Value with Follow-Through 362 Preventing Postsale Problems 365 Adding Value with Customer Follow-Up 365 Adding Value with Expansion Selling 369 Preplan Your Service Strategy 371 Partnership-Building Strategies Should Encompass All

Key People 372 Partnering with an Unhappy Customer 372

Reviewing Key Concepts 374 Key Terms 375 Review Questions 375 Application Exercises 375 Role-Play Exercise 376 Reality Selling Video Case Problem 376 Partnership Selling: A Role Play/Simulation 378 Part V Role-Play Exercise 378

Part VI Management of Self and Others 380

16 Opportunity Management: The Key to Greater Sales Productivity 380

xiiiC o n t e n t s

Opportunity Management—A Four-Dimensional Process 381

Time Management 382 Time-Consuming Activities 382 Time Management Methods 384 Saving Time with Meetings in Cyberspace and Other

Methods of Communication 386 Territory Management 389 What Does Territory Management Involve? 389 Sales Call Plans 391 Records Management 392 Common Records Kept by Salespeople 393 Maintaining Perspective 395 Stress Management 395 Develop a Stress-Free Home Office 396 Maintain an Optimistic Outlook 397 Practise Healthy Emotional Expression 397 Maintain a Healthy Lifestyle 398

Reviewing Key Concepts 399 Key Terms 399 Review Questions 399 Application Exercises 400 Role-Play Exercise 400 Reality Selling Video Case Problem 400

17 Management of the Sales Force 402 Applying Leadership Skills to Sales

Management 403

Structure 405 Consideration 406 Situational Leadership 408 Coaching for Peak Performance 408 Recruitment and Selection of Salespeople 410 Determine Actual Job Requirements 410 Search Out Applicants from Several Sources 411 Select the Best-Qualified Applicant 412 Personality and Skills Testing 412 Orientation and Training 413 Sales Force Motivation 415 Effective Use of External Rewards 416 Compensation Plans 417 Strategic Compensation Planning 418 Assessing Sales Force Productivity 419

Reviewing Key Concepts 420 Key Terms 421 Review Questions 421 Application Exercises 422 Role-Play Exercise 422 Reality Selling Video Case Problem 422

Appendix 424 Endnotes 442 Name Index 461

Subject Index 465

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Today, the profession of selling enjoys unprecedented growth in importance as the western world completes its transition from a production-focused to a sales- and service- focused economy. There are well over a million people employed in sales positions across Canada: more than 10 percent of the workforce. This increasingly sales-oriented economy calls for a more professional and customer-oriented selling attitude. This in turn neces- sitates learning and teaching selling strategies and skills in a more systematic fashion. The role of sales representative is pred

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