FUNDAMENTALS OF SELLING Customers For Life Through Service 13 th Edition Charles M. Futrell

1. FUNDAMENTALS OF SELLING Customers For Life Through Service 13th Edition Charles M. Futrell

2. Relationship Marketing: Where Personal Selling Fits Chapter 2

3. 2 Chapter 2-3

4. The Purpose of Business is to: Increase the general well being of humankind through the sales of goods and services

5. This Requires Making a profit in order to operate the business and to provide beneficial products to the marketplace

6. Profit is a Means to an End Profit is needed to serve humankind Profit is needed to operate the business Profit is needed to provide products to the marketplace

7. The Two Basic Functions and Goal of Business Two Basic Functions of Business Production of goods or creating of services Marketing those goods and services The Primary Goal of Business Transform marketplace and workplace into an environment where everyone is treated fairly

8. What is Marketing? Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

9. The Production Concept Companies are production oriented We know what people want – they want our product.

10. The Selling Concept Characterized by product demonstrations and unsophisticated sales techniques Emphasis on the product Product created and then sold Management is sales-volume oriented Stresses needs of the seller

11. The Marketing Concept Emphasis is on customer’s wants Customer’s wants drive production Management is profit-oriented Planning is long-term Stresses wants of buyers

12. Marketing’s Importance in the Firm Marketers have four main objectives: Maximize the sales for existing products in existing markets Develop and sell new products Develop new markets for existing or new products Provide quality service to ensure repeat business

13. Exhibit 2.2: The Marketing Group is the Link Between Customers and the Organization

14. Product: It’s More Than You Think A good is a physical object that can be purchased A service is an action or activity performed for a fee Value-added refers to benefits received that are not included in the purchase price of a good or service

15. Exhibit 2.3: Four Elements of the Marketing Mix and Four Promotion Activities

16. What is Meant by the Term “Product?” A product is a bundle of tangible and intangible attributes, including package, color, and brand, plus the services and even the reputation of the seller

17. The Term “Product” May Refer to a Good or Service Examples Goods - a physical object for sale Automobile Cell phone Prescription medicine Services - an action or activity done for others for a fee Automobile repair Wireless phone plan Health insurance

18. The Good and the Service: Automobile - repair services Cell phone - wireless phone plane Prescription medicine - health insurance

19. We Will Use the Terms Follow-up and Service. What do They Mean? Follow-up refers to maintaining contact with a customer in order to evaluate the effectiveness of the product and the satisfaction of the customer (More on this in Chapter 14)

20. The Term “Service” May Refer to A: Product, as insurance and advertise which is sold by someone Service, as customer service which is an activity offered by a seller in conjunction with the purchase of a product, such as delivery, repair, credit cards accepted, 800 telephone number, web site, salesperson available to help customer (More on this in Chapter 14)

21. Customer Service by the Salesperson Include: Salesperson goes to customer’s business to help: Resell products Customer use product Handling complaints Return damaged products Provide samples Suggest further business opportunities (Above discussed in Chapter 1)

22. People Buy More Than the Product People buy want-satisfaction as Image of owning as a Polo shirt vs. Wal-Mart shirt Dodge Viper* vs. Volkswagen Vanagon* What the product will do Its quality *products and associated images used for illustrative purposes only

23. What is a consumer product? A consumer product is produced for, and purchased by, households or end consumers for their personal use What is an example of a consumer product? Toothpaste Television Clothes There Are Two General Types of Products - Consumer and Industrial Products

24. There Are Two General Types of Products- Consumer and Industrial Products Cont… What is industrial product? An industrial product is sold primarily for use in producing other products. Industrial users are profit/nonprofit organizations that buy good and services for one of three purposes To make other goods and services To sell to consumer or other industrial users To conduct the organization’s operations

25. The Key Phrases That Differentiate Between Consumer and Industrial Products are: Consumer product - personal use Industrial product - producing other products What is an example of an industrial product? Airlines purchase airplanes Boeing sells their airplanes to airlines University buys computers

26. What Is Another Name for an Industrial Product? Business product Organizational product

27. Price: It’s Important to Success Price refers to the value or worth of a product that attracts the buyer to exchange money or something of value for the product

28. Distribution Moves Products to Customers Three Customer Groups A household refers to a decision-making unit that buys for personal use A firm is an organization that produces goods and services A government is an organization that has two functions: The provision of goods and services to households and firms The redistribution of income and wealth

29. Consumer and Industrial Products are Often Distributed Through Resellers What are Resellers? Resellers, such as wholesalers or retailers, purchase products and then sell to organizations and/or individuals

30. What Is a Wholesaler? The Wholesaler (May Be Referred to as a Distributor) Primarily engaged in buying, taking title to, usually storing and physically handling goods in large quantities, and reselling the goods, usually in smaller quantities to Retailers Wholesalers Manufacturers

31. Exhibit 2.5: Examples of Distribution Channels for Consumer and Industrial Products

32. Promotion Tells People Promotion increases sales by communicating product information to potential customers The four basic components of a firm’s promotional effort are: (PAPS) Personal selling Advertising Publicity Sales promotion

33. Exhibit 2.7: Examples of Each Marketing Mix Element

34. Relationship Marketing Relationship marketing is the creation of customer loyalty Targets a major customer that it wants to sell to now and in the future Establishes a long-term collaborative relationship

35. implement relationship marketing Relationship Marketing andthe Sales Force • Salespeople

36. Three Levels of Relationship Marketing Transaction selling: customers are sold to and not contacted again Relationship selling: the seller contacts customers after the purchase to determine if they are satisfied and have future needs Partnering: the seller works continually to improve its customers’ operations, sales, and profits

37. Partnering with Customers Encourages both the buyer and seller to share information Two companies work toward the same objective

38. Consultative Selling The process of helping the customer achieve strategic short and long-term goals through the use of the seller’s goods and/or services A highly interactive dialogue between a salesperson and a customer A balanced exchange of information

39. Three Consultative Selling Roles for the 21st Century

40. Exhibit 2.11: Marketing and Personal Selling Provide Service to Customers