Evolution of Strategic Selling

  1. 2.3 Define strategic selling and name the four broad strategic areas in the Strategic/Consultative–Selling Model

Strategic selling began receiving considerable attention during the 1980s (see Table 2.1). During this period, we witnessed the beginning of several trends that resulted in a more complex selling environment. These trends, which include increased global competition, broader and more diverse product lines, more decision makers involved in major purchases, and greater demand for specific, custom-made solutions, continue to influence personal selling and sales training in the age of information.

As companies face increased levels of complexity in the marketplace, they must give more attention to strategic planning. The strategic planning done by salespeople is often influenced by the information included in their company’s strategic market plan. Strategic planning is the process that matches the firm’s resources to its market opportunities. It takes into consideration the various functional areas of the business that must be coordinated, such as financial assets, workforce, production capabilities, and marketing.15 Almost every aspect of strategic planning directly or indirectly influences sales and marketing.

The strategic plan should be a guide for a strategic-selling plan. This plan includes strategies that you use to position yourself with the customer before the sales call even begins. The authors of Strategic Selling point out that there is a difference between a tactic and a strategy.16 Tactics are techniques, practices, or methods you use when you are face-to-face with a customer. Examples are the use of questions to identify needs, presentation skills, and various types of closes. These and other tactics are discussed in Chapters 10 to 15.

A strategy, on the other hand, is a prerequisite to tactical success. If you develop the correct strategies, you are more likely to make your sales presentation to the right person, at the right time, and in a manner most likely to achieve positive results.

A selling strategy is a carefully conceived plan that is needed to accomplish a sales objective. Let’s assume you are a sales representative employed by a pharmaceutical company. In an ideal situation, you want to establish a dialogue with the physician and learn about the types of patients she sees, diseases she treats, and challenges facing her practice. However, you do not want to call on busy doctors who may have no use for the drugs offered by your company. A strategy might include a careful study of the entire physician population in your territory. This analysis will help you identify those who need information about the drugs your company offers.17 With this information, you can select the most appropriate selling tactic (method), which might be to present samples to doctors who are not currently prescribing your drug.

Strategic planning, an important element of the “problem-solver stage,” sets the groundwork for a value-added form of consultative selling that is more structured, more focused, and more efficient. The result is better time allocation, more precise problem solving, and a greater chance that there will be a good match between your product and the customer’s needs.

Adaptive selling is another key element of the “problem-solver stage.” Adaptive selling can be defined as altering sales behaviors during a customer interaction in order to improve communication. It relates to a salesperson’s ability to collect information regarding the customer’s needs and responding appropriately. Adaptive selling frequently requires complex behavioral adjustments.18

A photo shows two men and a woman looking into the computer screen in front of them.

Adaptive selling requires a strategic selling plan. Adaptive selling can be defined as altering sales behaviors during a customer interaction in order to improve communication. It relates to a salesperson’s ability to collect information regarding the customer’s needs and responding appropriately. Adaptive selling frequently requires complex behavioral adjustments.

Source: Rehan Qureshi/Shutterstock

Many companies have discovered that specialized sales training is an effective strategy. When Microsoft wanted to build a stronger partnership with its customers, all 5,000 sales professionals completed the Solution Selling sales training course. This training, based on concepts presented in The New Solution Selling, by Keith Eades, helped Microsoft salespeople create greater value for its customers.19

Strategic/Consultative–Selling Model

When you study a value-added approach to personal selling that combines strategic planning, consultative-selling practices, and partnering principles, you experience a mental exercise that is similar to solving a jigsaw puzzle. You are given many pieces of information that ultimately must form a complete picture. Putting the parts together isn’t nearly as difficult if you can see the total picture at the beginning. Therefore, a single model has been developed to serve as a source of reference throughout the entire text. Figure 2.3 shows this model.

An illustration shows that the strategic/consultative selling model extends from a two-by-two matrix consisting of product, place, price, and promotion.

Figure 2.3

The Strategic/Consultative–Selling Model is an extension of the marketing concept.

The Strategic/Consultative–Selling Model features five steps, and each step is based on three prescriptions. The first step involves the development of a personal-selling philosophy, which was introduced in Chapter 1. Each of the other four steps relates to a broad strategic area of personal selling. Each step makes an important and unique contribution to the selling/buying process.

Developing a Relationship Strategy

Success in selling depends heavily on the salesperson’s ability to develop, manage, and enhance interpersonal relations with the customer. People seldom buy products or services from someone they dislike or distrust. Harvey B. Mackay, founder of Mackay Envelope Corporation, says, “People don’t care how much you know until they know how much you care.” Most customers are more apt to openly discuss their needs and wants with a salesperson with whom they feel comfortable.

A relationship strategy is a well-thought-out plan for establishing, building, and maintaining quality relationships. This type of plan is essential for success in today’s marketplace, which is characterized by vigorous competition, look-alike products, and customer loyalty dependent on quality relationships as well as quality products. The relationship strategy must encompass every aspect of selling from the first contact with a prospect to servicing the sale once this prospect becomes an established customer. The relationship strategy is an integral dimension of relationship selling. Relationship selling is a form of personal selling that involves securing, developing, and maintaining long-term relationships with customers.20 Increased support for relationship selling recognizes the growing importance of partnerships in selling. The primary goal of the relationship strategy is to create rapport, trust, and mutual respect, which ensures a long-term partnership. To establish this type of relationship, salespeople must maintain high ethical standards, which forms the very foundation for long-term partnerships. They must project and maintain high ethical standards, project a professional image and manage their relationships by adapting their communication style (see Figure 3.1). Chapters 3, 4, and 5 provide important information on development of the relationship strategy.

Some people think that the concept of “relationships” is too soft and too emotional for a business application; these people think that it’s too difficult to think about relationships in strategic terms. In fact, this is not the case at all. Every salesperson can and should formulate a strategic plan that builds and enhances relationships.

A photo of Patricia Seybold

Patricia Seybold, CEO and founder of the Patricia Seybold Group, and best-selling author of The Customer Revolution, says we are in the midst of a profound revolution—the customer revolution.

Source: Patricia Seybold, President, Patricia Seybold Group, Inc.

Developing a Product Strategy

Products and services represent problem-solving tools. The product strategy is a plan that helps salespeople make correct decisions concerning the selection and positioning of products to meet identified customer needs. The three prescriptions for the product strategy are become a product expert, sell benefits, and configure value-added solutions. The development of a product strategy begins with a thorough study of one’s product (see Figure 2.3) using a feature–benefit analysis approach. Product features such as technical superiority, reliability, fashionableness, design integrity, or guaranteed availability should be converted to benefits that appeal to the customer. Today’s high-performance salespeople strive to become product experts. Chapter 6 focuses on company, product, and competition knowledge needed by salespeople.

Product knowledge is not the only important element of a product strategy. In fact, salespeople who are too focused on selling products often fail to identify complete solutions to the customer’s problem. Stephen Covey, author of the best-selling book, The Seven Habits of Highly Effective People, says, “Diagnose before you prescribe.” If the salesperson does not deeply engage the customer and fails to diagnose the problem correctly, chances are the solution recommended may not be the best one.21

The development of a product strategy often requires thoughtful decision making. Today’s more knowledgeable customers seek a cluster of satisfactions that arise from the product itself, from the manufacturer or distributor of the product, and from the salesperson. The “new” product that customers are buying today is the sum total of the satisfactions that emerge from all three sources. The cluster-of-satisfactions concept is discussed in more detail in Chapter 7.

Developing a Customer Strategy

Patricia Seybold, author of The Customer Revolution, says we are in the midst of a profound revolution—the customer revolution. And it’s bigger than the Internet revolution:

Customers have taken control of our companies’ destinies. Customers are transforming our industries. And customers’ loyalty—or lack thereof—has become increasingly important. . . . 22

Customers have become increasingly sophisticated in their buying strategies. More and more, they have come to expect value-added products and services and long-term commitments. Selling to today’s customers starts with getting on the customers’ agenda and carefully identifying their needs, wants, and buying conditions. Salespeople who have a better understanding of customer needs are better able to produce satisfied customers who are willing to pay more!23

A customer strategy is a carefully conceived plan that results in maximum responsiveness to the customer’s needs. This strategy is based on the fact that success in personal selling depends, in no small measure, on the salesperson’s ability to learn as much as possible about the prospect. It involves the collection and analysis of specific information on each customer. When developing a customer strategy, the salesperson should develop an understanding of the customer’s buying process, understand buyer behavior, and develop a prospect base. The first two parts of the customer strategy are introduced in Chapter 8. Suggestions concerning ways to develop and manage a solid prospect base are discussed in Chapter 9.

The customer strategy is dictated by the needs of the customer. For example, it’s best to consider relationship formation from the customer’s perspective. When a consultative-selling approach is required, the customer strategy will usually encompass a long-term relationship and ongoing collaboration. If a transactional approach is required, the customer strategy would not, in most cases, emphasize need assessment, problem solving, relationship building, and sales follow-up.24

Developing a Presentation Strategy

Typical salespeople spend about 30 percent of their time in actual face-to-face selling situations. However, the sales presentation is a critical part of the selling process. The presentation strategy is a well-developed plan that includes preparing the sales presentation objectives, preparing a presentation plan that is needed to meet these objectives, and renewing one’s commitment to provide outstanding customer service (see Figure 2.3).

The presentation strategy usually involves developing one or more objectives for each sales call. For example, a salesperson might update personal information about the customer, provide information on a new product, and close a sale during one sales call. Multiple-objective sales presentations, which are becoming more common, are discussed in Chapter 10.

Presale presentation plans give salespeople the opportunity to consider those activities that take place during the sales presentation. For example, a salesperson might preplan a demonstration of product features to use when meeting with the customer. Presale planning ensures that salespeople are well organized during the sales presentation and prepared to offer outstanding service.

Interrelationship of Basic Strategies

The major strategies that form the Strategic/Consultative–Selling Model are by no means independent. The relationship, product, and customer strategies all influence development of the presentation strategy (Figure 2.4). For example, one relationship-building practice might be developed for use during the initial face-to-face meeting with the customer and another for possible use during the negotiation of buyer resistance. Another relationship-building method might be developed for use after the sale has been closed. The discovery of customer needs (part of the customer strategy) greatly influences planning for the sales presentation.

A diagram shows “Personal Selling Philosophy.”

Figure 2.4

The major strategies that form the Strategic/Consultative–Selling Model are by no means independent of one another. The focus of each strategy is to satisfy customer needs and build quality partnerships.

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