Consultative selling, which emerged in the late 1960s and early 1970s, is an extension of the marketing concept (see Table 2.1). This approach emphasizes need identification, which is achieved through effective communication between the salesperson and the customer. The salesperson establishes two-way communication by asking appropriate questions and listening carefully to the customer’s responses. The salesperson assumes the role of consultant and offers well-considered recommendations. Negotiation replaces manipulation as the salesperson sets the stage for a long-term partnership. Salespeople who have adopted consultative selling possess a keen ability to listen, define the customer’s problems, and offer one or more solutions.

Although consultative selling is emphasized throughout this text, it is helpful to understand the role of transactional selling in our economy. Transactional selling is a sales process that most effectively matches the needs of the value-conscious buyer who is primarily interested in price and convenience. Because of the emergence of e-commerce, most transactional buyers are well aware of their needs and may already know a great deal about the products or services they intend to purchase. Because the transaction-based buyer tends to focus primarily on low price, some marketers are adopting lower-cost selling channels. This approach to selling is usually used by marketers who do not see the need to spend very much time on customer need assessment, problem solving, relationship building, or sales follow-up.10^,11

The decline in popularity of transactional sales approaches is due to two industry trends: the rise of e-commerce, which displaces transactional sales managed by people; and the increasing complexity of businesses. As more business supplier–related transactions are managed through portals and online bidding, businesses have a diminished demand for salespeople to manage the transactional sale.12

Service, retail, manufacturing, and wholesale firms that embrace the marketing concept already have adopted or are currently adopting consultative-selling practices. The major features of consultative selling are as follows:

1. The customer is seen as a person to be served, not a prospect to be sold. Consultative salespeople believe their function is to help the buyer make an intelligent decision. They use a four-step process that includes need discovery, selection of a solution, a need–satisfaction presentation, and servicing the sale (Figure 2.2). These customer-centered strategies are fully developed and explained in Chapters 10 to 15.

   

   Figure 2.2 Full Alternative Text

2. The consultative salesperson, unlike the peddler of an earlier era, does not try to overpower the customer with a high-pressure sales presentation. Instead, the buyer’s needs are identified through two-way communication. The salesperson conducts precall research and asks questions during the sales call in an attempt to develop a relationship and learn as much as possible about the person’s needs and perceptions.

3. Consultative selling emphasizes need identification, problem solving, and negotiation instead of manipulation. This approach is very compatible with the “problem-solver stage” of personal selling discussed in Chapter 1.13 Helping the buyer make an informed and intelligent buying decision adds value to the sales process.

4. Consultative selling emphasizes service at every phase of the personal-selling process. Several important research studies indicate the strong, positive impact of customer satisfaction on company profits.14 The relationship between a seller and a buyer seldom ends when the sale is made. In most cases, customer expectations increase after the sale.

At first glance, it may appear that consultative-selling practices can be easily mastered. The truth is that consultative selling is a complex process that puts great demands on sales personnel. This approach to personal selling requires an understanding of concepts and principles borrowed from the fields of psychology, communications, and sociology. It takes a great deal of personal commitment and self-discipline to become a sales consultant/adviser.