The Consultative Selling Approach in the Information Economy

Posted on Jun 5, 2024 in Other subjects

The Information Economy

C-1, information economy – an economy where there is an emphasis on information processing.

4 Major Developments:

  • Major advances occur in information technology & electronic commerce.
  • Information is a strategic resource.
  • Business is defined by customer relationships.
  • Sales success depends on adding value.

Value-Added Selling

Value-added selling – improving the sales process to create value for the customer.

Inside Salesperson

Inside salesperson – performs selling activities at the employer’s location, typically using the telephone and email.

Customer Relationship Management (CRM)

Customer relationship management (CRM) is a critical aspect of modern selling.

The Marketing Concept and Consultative Selling

C-2, marketing concept – a principle that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired products.

Marketing Mix

Marketing mix – product, place, price, and promotion.

Consultative Selling

Consultative selling – an approach to personal selling that is an extension of the marketing concept.

Strategic Planning

Strategic planning – process that matches the firm’s resources to its market opportunities.

Strategic/Consultative Selling Model

  1. Personal Selling Philosophy: Define your core selling beliefs.
  2. Relationship Selling: Plan for establishing, building, and maintaining long-term quality relationships to create rapport, trust, and mutual respect, while maintaining high ethical standards.
  3. Product Strategy: Acquire extensive product knowledge.
  4. Customer Strategy: Develop a carefully conceived plan that results in maximum responsiveness to the customer’s needs.
  5. Presentation Strategy: Create a well-developed plan that includes preparing the sales presentation objectives and renewing one’s commitment to providing outstanding customer service.

Partnering

Partnering – a strategically developed, long-term relationship that solves the customer’s problems.

Strategic Selling Alliance

Strategic selling alliance – the goal is to achieve a marketplace advantage by teaming up with another company whose products or services fit well with your own (a win-win relationship).

Relationship Challenges and Ethics

C-3, 3 Major Relationship Challenges:

  1. Building new relationships.
  2. Transforming from a personal level to a business level.
  3. Management of the relationship.

Business Ethics

Business ethics – comprise principles and standards that guide behavior in the world of business.

Adding Value in Relationships

In relationship building, the major player will be the empathizer – one who has the ability to imagine themselves in someone else’s position and understand what that person is feeling.

Relationship Strategies Focus on 4 Key Groups:

  1. Customers
  2. Secondary decision-makers
  3. Company support staff
  4. Management personnel

Effect of Etiquette on Your Relationship

  1. Avoid the temptation to address a new prospect by their first name.
  2. Avoid offensive comments or stories.
  3. Recognize the importance of punctuality.
  4. When you invite a customer to lunch, do not discuss business before the meal is ordered unless the client initiates the subject.
  5. Voice – maintain a clear and concise message.
  6. Avoid cellular phone contempt.

Adaptive Selling and Communication Styles

C-5, adaptive selling – altering sales behaviors during a customer interaction in order to improve communication.

Communication Style Bias

Communication style bias – a state of mind we often experience when we have contact with another person whose communication style is different from our own. For example, it can make building rapport difficult.

Style Flexing

Style flexing – deliberate adjustment of one’s communication style to accommodate the needs of the other person.

4 Styles of Communication

  1. Emotive Style: Characterized by specific verbal and nonverbal cues.
  2. Director Style: Frank, demanding, assertive, and determined.
  3. Reflective Style: Stickler for detail, reserved, and cautious.
  4. Supportive Style: Lighthearted, quiet, and unassuming.

Product Knowledge and Differentiation

C-6, product configuration – the solution of complex buying needs, when the salesperson brings together many different parts of the company’s product mix or uses specialized software to develop a custom-fitted solution.

Product knowledge has been ranked as the #1 characteristic of salespeople who are able to build trust.

Product Development

Product development – the testing, modifying, and retesting of an idea for a product several times.

Quality Control

Quality control – evaluation or testing of a product against established standards.

Differentiation and Value Proposition

C-7, differentiation – the ability to separate yourself and your product from that of your competitors.

Value Proposition

Value proposition – the set of benefits and values the company promises to deliver to customers to satisfy their needs.

Selling Products with a Price Strategy

  • Quantity Discount: Price reduction made to encourage a larger volume purchase than would otherwise be expected.
  • Seasonal Discount: Adjusting prices up or down during specific times to spur or acknowledge changes in demand.
  • Promotional Allowance: Price reduction given to a customer who participates in an advertising or sales support program.
  • Trade or Functional Discount: Discount given to channel intermediaries to cover the cost of the services they provide.
  • “Unbundle” Features: Reduce price with the removal of some elements of the solution.

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