Evolution of Personal Selling

Evolution of Selling and

Sales Management

Dr. Anoop Kumar Gupta

MAIT
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Evolution of Personal Selling Evolution of Personal Selling

 

► The selling function has been a part of ► Forward‐thinking companies such as NCR and
humankind since the beginning, perhaps when Singer Sewing Machines hired salespeople,
one person traded meat for wheat. called drummers or peddlers, and sent them
► With the arrival of the Industrial Revolution in across the country (U.S.) to sell.
the 1800s, companies began to make more ► Then the companies brought the most effective
goods more cheaply. salespeople back into the company office and
► Even so, demand outstripped supply, and for wrote down their sales pitches.
many companies, the key issue in selling was to ► These canned sales pitches were distributed to
make people aware of the product and what it all salespeople, who were expected to follow the
could do. scripts every time without deviation.
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 Evolution of Personal Selling Evolution of Personal Selling
 

► Since that time things have changed greatly. The ► For example, inbound telephone salespeople working for a
retailer are providers with a production orientation. They
nature of business evolved, necessarily changing simply take orders over the telephone and arrange ordered
how people sell. items at your doorstep.
► Exhibit illustrates how the role of the salesperson ► Many outbound telephone, real estate, and insurance
has evolved from taking orders through salespeople are persuaders with a sales orientation.
persuading customers to building partnerships. ► Partnering‐oriented selling is becoming more common as
companies make strategic choices about the type of selling
► As Exhibit shows, the orientations of salespeople best suited to their situation, but recent research indicates
emerged in different periods. However, all these that even within partnerships, there are times when the
selling orientations still exist in business today. buyer needs to hear persuasive messages that might be
scripted.
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Evolution of Personal Selling: Evolution of Personal Selling:

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Evolution of Personal Selling: Evolution of Personal Selling:
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Market Exchange Selling as Compared Market Exchange Selling as Compared

to Long-term Relationship Selling to Long-term Relationship Selling
Developing the
Making Contact Initiating the Relationship Closing the Sale
Relationship
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Market Exchange Selling as Compared What are the foundations
to Long-term Relationship Selling of successful relationships?
Enhancing the
Following Through
Relationship
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Developing Trust: Developing Trust:

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Dependability Competence
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Dependability Competence
The buyer’s perception that the Salespeople demonstrate
salesperson, and the product and competence when they can
company he or she represents, will show that they know what
live up to the promises made. they are talking about.
Promises must be made and then kept.
Consider using: Requires knowledge of:
Third-party references The customer
Product demonstrations, plant tours, The product
and other special types of
The industry
presentations.
Proof of prior experience and training. The competition

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 Developing Trust: Developing Trust:
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Customer Orientation Customer Orientation

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Customer Orientation
The degree to which the
salesperson puts the Honesty is both truthfulness
customer’s needs first. and sincerity.
Salespeople who think only of Giving both pros and cons can
making sales are sales increase perceptions of
oriented rather than customer honesty.
oriented.
Buyers perceive salespeople as
Salespeople must also be
customer-oriented when willing to admit that they do
sellers stress benefits, and not know something rather
solutions to problems, over than trying to fake it.
features.
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Developing Trust:
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Is communication an important part of

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Likability developing successful relationships?

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Likability refers to behaving in Compare the quality of

a friendly manner and communication, especially
finding a common ground how much you know about
between buyer and seller. those with whom you’ve
had a close relationship, to
Likability can be influenced
the communication in
with personal
communications such as
those relationships with
birthday cards, hand-written those you don’t know so
notes, and so forth. well.

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 A Commitment
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to Mutual Gain
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Salespeople and
customers must have If both parties share
common goals for a about the same
amount of power,
successful relationship they can spend their
to develop. time figuring out
Shared goals give both how to expand the
members of the pie instead of how
to divide it.
relationship a strong
incentive to pool their
strengths and abilities.

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How do relationships develop? How do relationships develop?

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([SORUDWLRQ Exploration
Salespeople locate and qualify This is a search and trial phase.
prospects. Both parties explore the potential
Buyers consider various sources of benefits and costs involved in a
supply relationship.

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How do relationships develop? How do relationships develop?
Expansion ([SDQVLRQ

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The customer and the salesperson
Significant efforts are made by both
have implicitly or explicitly
parties to investigate the potential
pledged to continue the
benefits of a long-term
relationship for an extended period
relationship.
of time.

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How do relationships develop? Updating the Roles of Salespeople

([SDQVLRQ ► With readily available information, customers

have become empowered.
&RP P LWP HQW ► They expect greater value at lower prices while

([SORUDWLRQ demanding better service.

This can occur at any time during the
relationship building process. ► Salespeople face sophisticated buyers with high
It can have a major impact on many expectations.
people inside and outside of the
companies involved. ► Present‐day salespeople are also developing a
new level of professionalism as they face
$Z DUHQHVV Dissolution sophisticated buyers with high expectations.
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