y\ % 23

ABC's of Relationship Selling

Through Service

TWELFTH EDITION

CHARLES M. FUTRELL
Texas A & M University

McGraw-Hill
Irwin

PARTI
Selling as a Profession 3
CHAPTER 1
The Life, Times, and Career of the Professional
Salesperson 4
What Is the Purpose of Business? 5
The Primary Goal of Business 5
Marketing's Definition 6
Essentials of a Firm's Marketing Effort 6
Product: It's More than You Think 6
Price: It's Important to Success 6
Distribution: It Has to Be Available 7
Promotion: You Have to Tell People about It 7
What Is Selling? 7
A New Definition of Personal Selling 8
The Golden Rule of Personal Selling 8
Salesperson Differences 9
Everybody Sells! 10
What Salespeople Are Paid to Do 10
Why Choose a Sales Career? 10
Service: Helping Others 11
A Variety of Sales lobs Are Available 11
Freedom of Action: You're on Your Own 14
lob Challenge Is Always There 14
Opportunities for Advancement Are Great 14
Rewards: The Sky's the Limit 16
You Can Move Quickly into Management 16
Is a Sales Career Right for You? 17
Success in Selling—What Does It Take? 17
S—Success Begins with Love 17
S—Service to Others 17
U—Use the Golden Rule of Selling 18
C—Communication Ability 18
C—Characteristics for the Job 19
E—Excels at Strategic Thinking 19
S—Sales Knowledge at the M.D. Level 19
S—Stamina for the Challenge 19
C—Characteristics for the Job Examined 19
Caring, Joy, Harmony 19
Patience, Kindness, Moral Ethics 20
Faithful, Fair, Self-Control 20
Relationship Selling 21
Sales Jobs Are Different 22
What Does a Professional Salesperson Do? 23
Reflect Back 25
The Future for Salespeople 25
Learning Selling Skills 26
N
Preparing for the 21st Century 27
An Ethical Megatrend Shaping Sales and Business 27
E-Selling: Technology and Information Build
Relationships 28
Selling Is for Large and Small Organizations 29
The Plan of This Textbook 29
Building Relationships Through The Sales Process 30
Summary of Major Selling Issues 32
Key Terms for Selling 32
Sales Application Questions 33
Further Exploring the Sales World 33
Selling Experiential Exercise 33
Aerobic, Strength, and Flexibility Exercise Guidelines 33
CASE
1.1 What They Didn't Teach Us in Sales Class 34
APPENDIX:
The Golden Rule of Personal Selling as Told by a
Salesperson 36
The Golden Rule of Selling 36
Others Includes Competitors 36
Sales Is Your Calling to Serve 36
To Serve, You Need Knowledge 37
Customers Notice Integrity 37
Personal Gain Is Not Your Goal 38
Others Come First 38
xxiv Contents
The Golden Rule Is Not 38
Corruptible It Is Not 38
Self-Serving It Is Not 39
Comprehensive It Is Not 39
Easy to Follow It Is Not 39
The Great Harvest Law of Sales 39
A Corny Example 39
The Common Denominator of Sales Success 40
The Fruit of the Selling Spirit 40
CHAPTER 2
Ethics First... Then Customer Relationships 41
What Influences Ethical Behavior? 42
The Individual's Role 42
The Organization's Role 44
Are There Any Ethical Guidelines? 44
What Does the Research Say? 44
What Does One Do? 44
Is Your Conscience Reliable? 45
Sources of Significant Influence 46
Three Guidelines for Making
Ethical Decisions 46
Will the Golden Rule Help? 47
Management's Ethical Responsibilities 47
What Is Ethical Behavior? 48
What Is an Ethical Dilemma? 48
Ethics In Dealing With Salespeople 49
Level of Sales Pressure 49
Decisions Affecting Territory 50
To Tell the Truth? 50
The 111 Salesperson 51
Employee Rights 51
Salespeople's Ethics in Dealing with Their
Employers 53
Misusing Company Assets 53
Moonlighting 53
Cheating 53
Affecting Other Salespeople 53
Technology Theft 54
Ethics in Dealing with Customers 54
Bribes 54
Misrepresentation 54
Price Discrimination 59
Tie-in Sales 59
Exclusive Dealership 59
Reciprocity 59
Sales Restrictions 59
The International Side of Ethics 60
Managing Sales Ethics 61
Follow the Leader 61
Leader Selection Is Important 61
Establish a Code of Ethics 61
Create Ethical Structures 62
Encourage Whistle-Blowing 62
Create an Ethical Sales Climate 62
Establish Control Systems 63
Ethics in Business and Sales 63
Helpful Hints in Making Career Decisions 63
Do Your Research! 64
Golden Rule of Personal Selling 66
Ethics Rule Business 66
Summary of Major Selling Issues 67
Key Terms for Selling 67
Sales Application Questions 67
Further Exploring the Sales World 68
Selling Experiential Exercise 68
Ethical Work Climates 68
CASE
3.1 Ethical Selling at Perfect Solutions: The Case of
the Delayed Product with video 69
3.2 Sales Hype: To Tell the Truth or Stretch It, That Is
the Question with video 71
PART II
Preparation for Relationship
Selling 73
CHAPTER 3
The Psychology of Selling: Why People Buy 74
The Golden Rule: Benefits 75
Why People Buy—The Black Box Approach 75
Psychological Influences on Buying 76
Motivation to Buy Must Be There 76
Economic Needs: The Best Value for the Money 76
Awareness of Needs: Some Buyers Are Unsure 77
A MBulous Approach to Buyer Need Satisfaction 78
The Product's Features: So What? 78
The Product's Advantages: Prove It! 78
The Product's Benefits: What's in It for Me? 79
How to Determine Important Buying
Needs—A Key to Success 81
The Trial Close—A Great Way to Uncover
Needs and Sell 82
Sell Sequence 83
You Can Classify Buying Situations 85
Some Decisions Are Routine 86
Some Decisions Are Limited 86
Some Decisions1 Are Extensive 86

Technology Provides Information 87
View Buyers as Decision Makers 87
Need Arousal 88
Collection of Information 88
Information Evaluation 88
Purchase Decision 89
Postpurchase 90
Satisfied Customers Are Easier to Sell To 91
To Buy or Not to Buy—A Choice Decision 91
Summary of Major Selling Issues 93
Key Terms for Selling 94
Sales Application Questions 94
Further Exploring the Sales World 97
Student Application Learning Exercises (Sales) 98
Sale 1 of 7—Chapter 3 98
Selling Experiential Exercise 98
Is Organizational Selling for You? 98
CASE
3.1 Economy Ceiling Fans, Inc. 99
3.2 McDonald's Ford Dealership 99
CHAPTER 4
Communication for Relationship Building:
It's Not All Talk 101
The Golden Rule: Communication 102
Communication: It Takes Two 103
Salesperson-Buyer Communication Process Requires
Feedback 103
The Buyer's Personality Should Be Considered 105
Self-Concept 105
Adaptive Selling Based on Buyer's Personality Style 105
Personality Typing 105
Adapt Your Presentation to the Buyer's Style 107
Nonverbal Communication: Watch for It 109
Concept of Space 109
Communication through Appearance and the
Handshake 111
Body Language Gives You Clues 114
Master Persuasive Communication to Maintain
Control 117
Feedback Guides Your Presentation 117
Remember the Trial Close 118
Empathy Puts You in Your Customer's Shoes 118
Keep It Simple 119
Creating Mutual Trust Develops Friendship 120
Listening Clues You In 120
Your Attitude Makes the Difference 123
Proof Statements Make You Believable 124
Summary of Major Selling Issues 124
Key Terms for Selling 125
Sales Application Questions 126
Contents xxv
Further Exploring the Sales World 127
Selling Experiential Exercise 127
Listening Self-Inventory 127
CASE
4.1 Skaggs Manufacturing 128
4.2 Alabama Office Supply 129
4.3 Vernex, with video Inc. 129
APPENDIX:
Dress for Success... and to Impress for Business
Professional and Business Casual Occasions! 131
CHAPTER 5
Sales Knowledge: Customers, Products,
Technologies 135
The Golden Rule: Knowledge 136
Sources of Sales Knowledge 136
Knowledge Builds Relationships 137
Knowledge Increases Confidence in Salespeople . . . 137
. . . and in Buyers 137
Relationships Increase Sales 138
Know Your Customers 138
Know Your Company 138
General Company Information 138
Know Your Product 139
Know Your Resellers 140
Advertising Aids Salespeople 140
Types of Advertising Differ 141
Why Spend Money on Advertising? 142
Sales Promotion Generates Sales 143
Point-of-Purchase Displays: Get Them Out There 143
Shelf Positioning Is Important to Your Success 143
Premiums 144
What's It Worth? Pricing Your Product 144
Know Your Competition, Industry, and Economy 145
Personal Computers and Selling 147
Knowledge of Technology Enhances Sales
and Customer Service 147
Personal Productivity 148
Communications with Customers and Employer 150
Customer Order Processing and Service Support 152
Sales: Internet and the World Wide Web 153
The Internet 153
World Wide Web 153
Global Technology Provides Service 154
Technology Etiquette 155
Netiquette 155
Cell Phones 156
Voice Mail 156
Faxes 157
Speakerphones and Conference Calls 157
xxvi Contents
Summary of Major Selling Issues 157
Key Terms for Selling 158
Sales Application Questions 158
Further Exploring the Sales World 159
Selling Experiential Exercise 159
How Is Your Self-Confidence? 160
APPENDIX:
Sales Arithmetic and Pricing 161
Types of Prices 161
Discounts Lower the Price 162
Quantity Discounts: Buy More, Pay Less 162
Cash Discounts Entice the Customer to Pay
on Time 162
Trade Discounts Attract Channel Members'
Attention 163
Consumer Discounts Increase Sales 163
Resellers: Markup and Profit 164
Markup and Unit Price 165
Markup and Return on Investment 165
Organizations: Value and ROI 167
Compare Product Costs to True Value 168
Unit Costs Break Down Price 169
Return on Investment Is Listened To 169
Key Terms for Selling 169
Sales Application Questions 169
Student Application Learning Exercises
(Sales) 171
Sale 2 of 7—Chapter 5 171
CASE
5A.1 Claire Cosmetics 171
5A.2 McBath Women's Apparel 172
5A.3 Electric Generator'Corporation 173
5A.4 Frank's Drilling Service 173
5A.5 FruitFresh, Inc. with video 174
PART
The Relationship Selling
Process 177
CHAPTER 6
Prospecting—The Lifeblood of Selling 178
The Golden Rule: Prospecting 179
The Sales Process Has 10 Steps 180
Steps before the Sales Presentation 180
Prospecting—The Lifeblood of Selling 181
The Leaking Bucket Customer Concept 182
Where to Find Prospects 182
Planning a Prospecting Strategy 182
Prospecting Methods 183
E-Prospecting on the Web 183
Cold Canvassing 184
Endless Chain Customer Referral 184
Orphaned Customers 185
Sales Lead Clubs 185
Prospect Lists 185
Getting Published 186
Public Exhibitions and Demonstrations 186
Center of Influence 187
Direct Mail 188
Telephone and Telemarketing 188
Observation 188
Networking 189
Prospecting Guidelines 190
Referrals Used in Most Prospecting Methods 191
The Prospect Pool 191
The Referral Cycle 192
The Parallel Referral Sale 192
The Secret Is to Ask Correctly 192
The Preapproach 193
The Presentation 194
Product Delivery 194
Service and Follow-Up 195
Don't Mistreat the Referral 195
Call Reluctance Costs You Money! 196
Obtaining the Sales Interview 196
The Benefits of Appointment Making 196
Wireless E-Mail Helps You Keep in Contact And
Prospect 200
Summary of Major Selling Issues 201
Key Terms for Selling 201
Sales Application Questions 202
Further Exploring the Sales World 202
Selling Experiential Exercise 202
Your Attitude toward Selling 203
CASE
6.1 Canadian Equipment Corporation 204
6.2 Montreal Satellites 204
CHAPTER 7
Planning the Sales Call Is a Must! 205
The Golden Rule: Planning 206
Begin Your Plan with Purpose! 206
Plan to Achieve Your Purpose 206
What's a Plan? 207
What Is Success? 207

Strategic Customer Sales Planning—The
Preapproach 209 ' Select the Presentation Method, then the
Strategic Needs 210
Creative Solutions 210
Mutually Beneficial Agreements 210
The Customer Relationship Model 210
Reasons for Planning the Sales Call 210
Elements of Sales Call Planning 212
Always Have a Sales Call Objective 212
The Prospect's Mental Steps 218
Attention 218
Interest 219
Desire 219
Conviction 219
Purchase or Action 219
Overview of the Selling Process 220
Summary of Major Selling Issues 220
Key Terms for Selling 221
Sales Application Questions 221
Further Exploring The Sales World 222
Selling Experiential Exercise 222
SMART Course Objective Setting 222
Student Application Learning Exercises (Sales) 223
SALE 3 of 7—Chapter 7 223
CASE
7.1 Ms. Hansen's Mental Steps in Buying Your
Product 224
7.2 Machinery Lubricants, Inc. 225
7.3 Telemax, Inc. with video 225
CHAPTER 8
Carefully Select Which Sales Presentation
Method to Use 226
The Golden Rule: Presentation 227
Sales Presentation Strategy 228
Sales Presentation Methods—Select One Carefully 229
The Memorized Sales Presentation 229
The Formula Presentation 231
The Need-Satisfaction Presentation 233
The Problem-Solution Presentation 236
Comparison of Presentation Methods 236
What Is the Best Presentation Method? 237
The Group Presentation 237
Give a Proper Introduction 238
Establish Credibility 238
Provide an Account List 238
State Your Competitive Advantages 238
Give Quality Assurances and Qualifications 238
Cater to the Group's Behavioral Style 238
Negotiating So Everyone Wins 240
Phases of Negotiation 241
Contents xxvii
Sales Presentations Go High-Tech 243
Approach 243
The Parallel Dimensions of Selling 244
First Column 245
Second Column 245
Third Column 245
Fourth Column 245
The Sales Presentation and Techniques 245
Your Sales Presentation 246
The Golden Rule Makes Sense 249
Dale Carnegie Gives a Word of Warning! 249
Practice and Time 250
Summary of Major Selling Issues 250
Key Terms for Selling 251
Sales Application Questions 251
Further Exploring the Sales World 252
Selling Experiential Exercise 252
What Are Your Negotiation Skills? 252
CASE
8.1 Cascade Soap Company 253
8.2 A Retail Sales Presentation 253
8.3 Negotiating with a Friend 254
CHAPTER 9
Begin Your Presentation Strategically 256
The Golden Rule: The Beginning 257
What Is the Approach? 257
The Right to Approach 259
The Approach—Opening the Sales Presentation 259
Your Attitude during the Approach 259
The First Impression You Make Is
Critical to Success 261
Approach Techniques and Objectives 262
Small Talk Warms 'em Up 262
The Situational Approach 262
Opening with Statements 263
Demonstration Openings 265
Opening with Questions 266
Technology in the Approach 273
Is the Approach Important? 273
Using Questions Results in Sales Success 273
The Direct Question 274
The Nondirective Question 275
The Rephrasing Question 275
The Redirect Question 275
Three Rules for Using Questions 276
Is the Prospect Still Not Listening? 276
Be Flexible in Your Approach 277
Summary of Major Selling Issues 278
Key Terms for Selling 279
xxviii Contents
Sales Application Questions 279
Further Exploring the Sales World 281
Selling Experiential Exercise 281
Plan Your Appearance—It Projects Your Image! 282
Student Application Learning Exercises (Sales) 282
SALE 4 of 7—Chapter 9 282
CASE
9.1 The Thompson Company 283
9.2 The Copy Corporation 283
9.3 Electronic Office Security Corporation 284
CHAPTER 10
Elements of a Great Sales Presentation 287
The Golden Rule: Presentation 289
The Purpose of the Presentation 289
Three Essential Stejts within the Presentation 291
Remember Your FABs! 292
The Sales Presentation Mix 292
Persuasive Communication 293
Participation Is Essential to Success 297
Proof Statements Build Believability 298
The Visual Presentation—Show and Tell 300
Visual Aids Help Tell the Story 301
Dramatization Improves Your Chances 301
George Wynn the Showman 302
Demonstrations Prove It 303
A Demonstration Checklist 304
Use Participation in Your Demonstration 304
Reasons for Using Visual Aids, Dramatics, and
Demonstrations 305
Guidelines for Using Visual Aids, Dramatics, and
Demonstrations 305
Technology Can Help! 306
The Sales Presentation Goal Model 306
The Ideal Presentation 307
Be Prepared for Presentation Difficulties 307
How to Handle Interruptions 307
Should You Discuss the Competition? 308
Where the Presentation Takes Place 310
Diagnose the Prospect to Determine Your Sales
Presentation 310
Summary of Major Selling Issues 310
Key Terms for Selling 311
Sales Application Questions 311
Further Exploring the Sales World 312
Student Application Learning Exercises (Sales) 313
SALE 5 of 7—Chapter 10 313
CASE
10.1 Dyno Electric Cart Company 314
10.2 Major Oil, Inc. 314
10.3 Dumping Inventory: Should This Be Part of Your
Presentation? with video 317
CHAPTER 11
Welcome Your Prospect's Objections 319
The Golden Rule: Objections 320
Welcome Objections! 320
What Are Objections? 321
When Do Prospects Object? 321
Objections and the Sales Process 321
Basic Points to Consider in Meeting Objections 322
Plan for Objections 323
Anticipate and Forestall 323
Handle Objections as They Arise 324 ,
Be Positive 324
Listen—Hear Them Out 324
Understand Objections 324
Six Major Categories of Objections 327
The Hidden Objection 327
The Stalling Objection 328
The No-Need Objection 330
The Money Objection 331
The Product Objection 334
The Source Objection 334
Techniques for Meeting Objections 336
The Dodge Neither Denies, Answers, nor Ignores 336
Don't Be Afraid to Pass Up an Objection 336
Rephrase an Objection as a Question 337
Postponing Objections Is Sometimes Necessary 338
Send It Back with the Boomerang Method 339
Ask Questions to Smoke Out Objections 340
Use Direct Denial Tactfully 343
The Indirect Denial Works 343
Compensation or Counterbalance Method 344
Let a Third Party Answer 344
Technology Can Effectively Help Respond to
Objections! 345
After Meeting the Objection—What to Do? 345
First, Use a Trial Close—Ask for Opinion 345
Move Back into Your Presentation 346
Move to Close Your Sale 347
If You Cannot Overcome the Objection 347
In All Things Be Guided by the Golden Rule 348
Summary of Major Selling Issues 348
Key Terms for Selling 349

Sales Application Questions 349
Further Exploring the Sales World 350
Student Application Learning Exercises (Sales) 351
SALE 6 of 7—Chapter 11 351
CASE
11.1 Ace Building Supplies 351
11.2 Electric Generator Corporation (B) 352
CHAPTER 12
Closing Begins the Relationship 353
The Golden Rule: Closing 354
When Should I Pop the Question? 355
Reading Buying Signals 355
What Makes a Good Closer? 356
Ask for the Order and Be Quiet 357
Get the Order—Then Move On! 357
How Many Times Should You Close? 357
Example of Closing More than Once 358
Closing Under Fire 358
Difficulties with Closing 360
Essentials of Closing Sales 360
Prepare Several Closing Techniques 362
The Alternative-Choice Close Is an Old Favorite 363
The Assumptive Close 364
The Compliment Close Inflates the Ego 364
The Summary-of- Benefits Close Is Most Popular 365
The Continuous-Yes Close Generates Positive
Responses 366
The Minor-Points Close Is Not Threatening 366
The T-Account or Balance-Sheet Close Was Ben
Franklin's Favorite 367
The Standing-Room-Only Close Gets Action 369
The Probability Close 369
The Negotiation Close 370
The Technology Close 370
Prepare a Multiple-Close Sequence 371
Close Based on The Situation 371
Research Reinforces These Sales Success Strategies 371
Keys to Improved Selling 375
The Business Proposition and the Close 375
Use a Visual Aid to Close 375
Closing Begins the Relationship 375
When You Do Not Make the Sale 377
Summary of Major Selling Issues 378
Key Terms for Selling 379
Sales Application Questions 379
Further Exploring the Sales World 381
Contents xxix
Student Application Learning Exercises (Sales) 382
SALE 7 of 7—Chapter 13 382
CASE
12.1 Skaggs Omega 383
12.2 Central Hardware Supply 383
12.3 Furmanite Service Company—A Multiple-Close
Sequence 384
12.4 Steve Santana: Pressured to Close a Big Deal with
video 385
CHAPTER 13
Service and Follow-Up for Customer Retention 386
The Golden Rule: Service 387
The Importance of Service and Follow-Up 388
Words of Sales Wisdom 389
True Caring Builds Relationships and Sales 390
Building a Long-Term Business Friendship 391
What Is a Business Friendship? 391
How to Build a Business Friendship 391
What Is Most Important? 393
How Many Friends? 394
Relationship Marketing and Customer Retention 394
Relationship Marketing Builds Friendships 394
The Product and Its Service Component 394
Expectations Determine Service Quality 395
Customer Satisfaction and Retention 395
Excellent Customer Service and Satisfaction Require
Technology 396
So, How Does Service Increase Your Sales? 396
Turn Follow-Up and Service Into a Sale 397
Account Penetration Is a Secret to Success 398
Service Can Keep Your Customers 399
You Lose a Customer—Keep on Trucking 402
Returned Goods Make You a Hero 403
Handle Complaints Fairly 403
Is the Customer Always Right? 403
This Customer Is Not in the Right! 403
Dress in Your Armor 404
Build a Professional Reputation 404
Do's and Don'ts for Business Salespeople 405
The Path to Sales Success: Seek, Knock, Ask, Serve 406
Summary of Major Selling Issues 408
Key Terms for Selling 409
Sales Application Questions 409
Further Exploring the Sales World 409
Selling Experiential Exercise 410
What's Your Attitude toward Customer Service? 410
xxx Contents
CASE
13.1 California Adhesives Corporation 411
13.2 Sport Shoe Corporation 411
13.3 Wingate Paper with video 412
PART IV
Time and Territory
Management: Keys to
Success 415
CHAPTER 14
Time, Territory, and Self-Management: Keys to
Success 416
The Golden Rule: Time 417
Customers Form Sales Territories 418
Why Establish Sales Territories? 418
Why Sales Territories May Not Be Developed 419
Elements of Time and Territory Management 419
Salesperson's Sales Quota 420
Account Analysis 420
Develop Account Objectives and
Sales Quotas 423
Territory-Time Allocation 423
Return on Time Invested 424
Customer Sales Planning 427
Scheduling and Routing 428
Using the Telephone for Territorial Coverage 430
Territory and Customer Evaluation 431
Summary of Major Selling Issues 432
Key Terms for Selling 433
Sales Application Questions 433
Selling Experiential Exercise 434
Further Exploring the Sales World 435
CASE
14.1 Your Selling Day: A Time and Territory
Game 435
14.2 Sally Malone's District—Development of an
Account Segmentation Plan 436
APPENDIX A:
Sales Call Role-Plays 439
Role-Play One: Consumer Sales 439
Role-Play Two: Distributor Sales 441
Your Sales Call 443
Role-Play Three: Business-To-Business 445
Role-Play Four: Business-To-Business
Sales XDT's Robophone+ (XDT) 449
APPENDIX B:
Personal Selling Experiential Exercises 457
Sell Yourself On A Job Interview 457
Resume, Follow-Up Letter, E-Mail 459
How to Create a Portfolio 467
What's Your Style—Senser, Intuitor,
Thinker, Feeler? 470
Glossary of Selling Terms 473
Notes 482
Photo Credits 486
Index 488