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SELL, Canadian Edition Lecture Notes

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    i NETA E NGAGEMENT Instructor’s Guide to accompany Second Canadian edition p repared by Kirby Shannahan, Memorial University of Newfoundland

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    Instructor ’ s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan ii Preface Introduction The purpose of this section of the guide is to provide materials to assist in planning and implementing interesting class sessions. Each Chapter consists of the following:  Learning Objectives  Chapter Outline  Developing Professional Selling Knowledge  Group Activity  Experiential Exercises  Video Exercises  Chapter Case  Chapter Role Pay  Continuing Case The Learning Outcomes section restates the learning outcomes for each chapter so that you do not have to refer to the text when planning class sessions. The Chapter Outline section presents an outline containing the major headings and subheadings in a chapter. This is intended to make it easier for you to plan the structure and topic sequence for each class. The Developing Professional Selling Knowledge sections provide examples of answers to the end - of - chapter discussion questions. The Group Activity section contains an in - class group activity created to reinforce concepts presented in the chapter. The Experiential Exercises offer various types of in - class exercises that allow the students to put into practice what they are learning from the book and class lecture. Each of these exercises contains a stated learning objective, and most of the exercises contain an estimated ti me frame and tips for the instructor. The instructor may assign these exercises to individuals or groups and as either an in - class (time permitting) exercises or as homework. The Video Exercises accompany the six video clips found on the book’s website using your Single Sign On (SSO) account ( http://www.n elson.com/instructor ). Successfully answering the questions requires students to watch the corresponding video clips, reflect on the content, and then apply what they’ve learned from the text. The Chapter Case s that accompany each chapter provide a real - world situation involving concepts presented in the corresponding chapter. Working through the case questions will help students get a better grasp on the concepts presented in the corresponding chapters. Note: Many of the cases include a brief role play exercise.

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    Instructor ’ s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan iii The Chapter Role Plays were created to involve students directly in the modeling and learning process. Participating in the role plays will give students the opportunity to “learn - by - doing” and serve to reinforce concepts presented in the chapter. The Continuing Cases at the end of the chapters share the same central character, but each situation is contextually consistent with the material presented in the corresponding chapter. As you progress through the text students will become familiar with the central character which should allow them to better participate in the role plays and learn from each. Test Bank The Test Bank contains over 1200 multiple - choice, true - false, and fill - in the blank questions. Each question contains the answer choices, the correct answer, the page reference, the associated learning objective, and a difficulty rating. A computerized version of the test bank is available for use with the Microsoft Windows and Mac operating systems. The computerized version allows you to preview, edit, or add test questions, and to print “scrambled” forms of tests and answer keys. Sample Course Schedules Traditional – Following the Chapters as Presented Week 15 Week Semester 10 Week Quarter 8 Week Summer Session 1 Chapters 1, 2 Chapter 1 Chapters 1, 2 2 Chapter 2 Chapter 2 Chapter 3

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    Instructor ’ s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan iv 3 Chapter 3 Chapter 3 Chapter 4 4 Chapters 3, 4 Chapter 4 Chapter 5 5 Chapter 4 Chapter 5 Chapter 6 6 Chapter 4, 5 Chapter 6 Chapter 7, 7A 7 Chapter 5 Chapter 7 Chapters 8 8 Chapter 5,6 Chapter 7A Chapters 9, 10 9 Chapters 6 Chapter 8 10 Chapter 6,7 Chapter 9, 10 11 Chapter 7 12 Chapters 7,8 13 Chapters 8 14 Chapters 8, 9 15 Chapter 9, 10 Sales Process First – This sequence covers the sales process first and is an option for faculty who would like to have students conducting sales calls (e.g., role plays) earlier in the semester. Week 15 Week Semester 10 Week Quarter 8 Week Summer Session 1 Chapters 5 Chapter 5 Chapters 5, 4 2 Chapter 5, 4 Chapter 4 Chapter 6, 7 3 Chapter 4, 6 Chapter 6 Chapter 8, 9 4 Chapters 6 Chapter 7 Chapter 9,2 5 Chapter 7 Chapter 8 Chapter 2, 3 6 Chapter 7, 8 Chapter 9 Chapter 3, 10 7 Chapter 8 Chapter 2 Chapters 10, 11 8 Chapter 9 Chapter 3 Chapters 11, 1 9 Chapters 9, 2 Chapter 10, 11 10 Chapter 2 Chapter 11, 1 11 Chapter 3 12 Chapters 3, 10 13 Chapters 10, 11 14 Chapters 11 15 Chapter 1

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    Instructor ’ s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan 1 - 1 INSTRUCTOR ’ S GUIDE Chapter One — Overview of Personal Selling Introduction As suggested by the title, the first chapter provides an overview of what personal selling is all about, which tends to be an eye - opener for most students with little to no sales experience . A lack of knowledge or a distorted view of personal selling due to past experience can be a source of a negative attitude amongst students regarding selling as a career choice . A number of questions can be used to start the discussion for this chapter, such as: What does personal selling mean to you? Based on your experience as a consumer, what makes a good sales person? A bad one? Where does personal selling fit within the overall marketing mix of an organization? Learning Objectives 1 - 1 Define personal selling and describe its unique characteristics as a marketing communications tool. 1 - 2 Distinguish between transaction - focused traditional selling and trust - based relationship selling, with the latter focusing on customer value and sales dialogue. 1 - 3 Describe the evolution of personal selling from ancient times to the modern era. 1 - 4 Explain the contributions of personal selling to society, business firms , and customers. 1 - 5 Discuss five alternative approaches to personal selling. 1 - 6 Understand the sales process as a series of interrelated steps. Chapter Outline Introduction - 3 1 - 1 Personal Selling Defined - 4 1 - 2 Trust - Based Relationship Selling - 4 Importance of Customer Value - 4 Importance of Sales Dialogue - 6 1 - 3 Evolution of Personal Selling - 7 Industrial Revolution Era - 7 Post - Industrial Revolution Era - 7 War and Depression Era - 7 Professionalism: The Modern Era - 7 1 - 4 Contributions of Personal Selling - 8 Salespeople and Society - 9 Salespeople and the Employing Firm - 10 Salespeople and the Customer - 11 1 - 5 Alternative Personal Selling Approaches - 12 S timulus - Response Selling - 12 Mental States Selling - 13

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    Instructor ’ s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan 1 - 2 Need Satisfaction Selling - 14 Problem - Solving Selling - 15 Consultative Selling - 15 1 - 6 The Trust - Based Sales Process - 16 Appendix Chapter 1: Sales Careers - 20 Characteristics of Sales Careers - 20 Classification of Personal Selling Jobs - 21 Qualifications and Skills Required for Success by Salespeople - 24 Supplemental Internet Resources A. The Canadian Professional Sales Association (CPSA) W ebsite www.cpsa.com is a good resource for information on professionalism and ethics in selling . B. Sales Jobs Canada http://ca.salescareersonline.com/ is one example of a job listing service for employers looking to hire sales people . Students can review job descriptions for different types of sales positions and the qualifications employers are looking for in candidates. C. The Journal of Personal Selling and Sales Management at http://jpssm.org is a good example of an academic journal dedicated to topics in personal selling which is available through most school library online databases. D. The Professional Sales Academy W ebsite www.salesacademy.ca is one example of the many different sources of sales training programs and materials that are available to someone interested in becoming a salesperson . The business of providing sales training is a very large industry that is largely unregulated, which can make it difficult for customers to make an informed choice. Exercises Developing Professional Selling Knowledge Download the Instructor ’ s Guide — Solutions and Discussions for responses and discussions to these exercises. 1. How is personal selling different from other forms of marketing communications? 2. What are the key differences between transaction - focused traditional selling and trust - based relationship selling? 3 . What factors will influence the continued evolution of personal selling? 4 . How do salespeople contribute to our society? Are there negative aspects of personal selling from a societal perspective? 5 . What are the primary contributions made by salespeople to their employers? 6 . Most businesses would have a difficult time surviving without the benefits of the salespeople who call on them. Do you agree? 7 . How are need satisfaction and problem - solving selling related? How do they differ? 8 . How does the consultative selling approach differ from problem - solving and need satisfaction selling? Explain the three key roles of consultative salespersons. 9 . How important is teamwork between the customer and the sales organization in practicing consultative selling? How does teamwork within the sales organization factor into consultative selling? 10. Discuss the final step of the sales process (enhancing customer relationships) as it relate s to the continuing evolution of personal selling.

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    Instructor ’ s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan 1 - 3 Group Activity Word Association: The Image of Salespeople Before placing students into teams, ask them to spend two minutes thinking of positive and/or negative words that come to mind when they hear the word “ salespeople. ” Instruct the students to make a list of these words. Now put the students into three - person teams. Allow 10 minutes for each team to compare thoughts and develop a list of words associated with the word “ salespeople. ” Next, ask each one team to share their list with the class. Record these responses on the board in two columns, one “ positive ” a nd the other “ negative . ” Continue recording responses from each team, and then discuss the findings. Many students often negatively stereotype salespeople. This is typically a result of perceptions they have formed about salespeople from their encounters with retail salespeople, movies negatively portraying salespeople, and acco unts of salespeople in the popular press. Discussion can focus on the characteristics that a professional salesperson should possess and how the negative stereotypes of salespeople can be overcome. The purpose of this exercise is to bring to the surface negative stereotypes associated with salespeople and selling . Most students will have at least some negative attitudes toward salespeople and selling because of their limited exposure to professional selling . Instructors should use this exercise as an opportunity to assure the students that the focus of the course is on trust - based relationship selling , a type of selling that is markedly different from the stereotypes permeated by the media and door - to - door selling. Experiential Exercises Understanding What It Takes to Succeed in Sales Objective: Build awareness that a career in sales requires a high working knowledge and skill level , and that salespeople must be well prepared when calling on customers. Time Required: Two hours outside of class (one hour to conduct an interview with a sales p rofessional, and one hour to write an interview summary). Teaching Tip: In some instances, this assignment will be better suited to a team approach with 2 – 3 students per team. Salespeople from organizations that recruit on campus can be a good source for finding interview candidates. Have students interview a salesperson to better understand what it takes to be successful in professional selling. In addition to the following interview questions, require students to develop two additional questions for their interviews. 1. What are some of the key skills required in your job? 2. What do you need to know about your products/services in order to succeed? 3. How has professional selling changed in the past few years? 4. How do you prepare for sales calls with new customers? Students should write a summary report of their interviews and be prepared to discuss their key conclusions in class.

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    Instructor ’ s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan 1 - 4 Video Exercises Overview of Personal Selling Preview all six scenes. Empathy, ego drive, strong interpersonal communication, and enthusiasm are some of the qualities required to be a successful sales professional. As you progress through this course , it will be beneficial to keep some of these qualities as an organizing framework to refine and build your skill set. Mark – Manager for Player One Lisa – Sales Rep for Alpha Tech , Security system provider trying to earn the customer away from Goodman Jim – Sales Rep for Goodman , Current provider of security system Ask your students: 1. Review the videos and comment on the sales professional ’ s performance in areas mentioned above. 2. Comment on the role that these sales people contribute to society. 3. What managerial roles do you see in the clip? Chapter 1 Case Summary: Craig Robertson is a sales representative for Slavik ’ s Sports Inc. (SSI), a Vancouver - based supplier of custom - made novelty sports items such as bobble - head figures, caps, sunglasses, and sweatshirts . Craig was recently relocated to Vancouver and was eager to grow his territory . By most indications, Craig was a good salesperson and had received nothing but positive feedback from his sales manager, Felicia J ameson . During his first 60 days in Vancouver , Craig landed some major customers and was optimistic about landing another important account, H2G, a large manufacturer of garden tools. Craig did his research on H2G in preparation for his sales call with Cam Evans , Director of Marketing for H2G, but the call did not go well . An unexpected snow storm had created traffic delays throughout the area, and consequently, Craig was late for his meeting with Cam . As the sales call progressed, Craig did most of the talking , telling Cam about SSI and its capabilities . While Craig and Cam did discuss H2G ’ s regular use of tradeshows as a tool to stimulate sales, Craig asked only one question (What work s well for you in terms of standing out at those shows?) related to H2G ’ s tradeshow strategy . He did not ask about H2G ’ s t radeshow objectives or budget. Cam ’ s interest in continuing the call waned and he ended the meeting abruptly, indicating he would contact Craig if H2G developed an interest in what SSI offered. Craig left without making another appointment. Discussion Questions 1. What problems do you see with Craig ’ s H2G sales call? 2. If you were Craig ’ s sales manager, what would you recommend he do to improve his chances of succeeding? Role Play Ask six students to participate in a role play (one playing Craig , four playing other SSI Sales Representatives, and one playing Jeff ’ s Manager Felicia) in which Craig describes to his colleagues and his sales manager his sales call with Cam . The description should focus on how his sales call matches up with transaction - focused or trust - based focused selling behavio u rs (see Exhibit 1.1) . When finished, have the class discuss the following: 1. Is Craig ’ s review of his sales call accurate? 2. What steps should Craig take to begin to develop a strong relationship with Cam Evans at H2G?

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    Instructor ’ s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan 1 - 5 Chapter 1 Continuing Case Introduction The National Copier Company (NCC) sells a variety of copiers to small and medium - sized businesses. NCC has been in business for five years and has been growing at a steady pace . NCC differentiates itself from other copier companies by customizing its products to meet the specific needs of each customer and by providing excellent customer service. The company ’ s salesforce plays a key role in creating value and managing customer relationships . Brenda Smith has been a NCC salesperson for the past three years. She has steadily improved her sales performance during her time with NCC, and now is in the top 25 percent of all N CC sales representatives , as measured by two key metrics: overall sales volume and customer satisfaction. Brenda has been especially successful with small professional firms, such as attorneys, architects, accountants, and medical professionals. She is excited to begin her fourth year with NCC and has established challenging goals to increase sales from existing customers and to generate new customers. Brenda recently met with Jin Tan , her sales manager , and was quite excited about the upcoming year. Jin had told Brenda that she was progressing toward a possible promotion into sales training if she had another good year in her sales position. In addition, Jin gave Brenda this feedback: “ Brenda, I think you are doing a fine job with your customers, but I would like to see you become more of a consultative salesperson in the coming year. I would also like for you to sharpen your group communications skills, as that will be important if you are promoted into sales training. We will talk about the specifics more as the year goes along. Meanwhile, thanks for your results to date and good luck with the upcoming year. ” Questions 1. Brenda had been thinking about Jin Tan ’ s feedback that directed her to become more of a consultative salesperson. In thinking about her own selling approaches, she knew that she had been concentrating on the needs satisfaction and problem - solving approaches . What must Brenda do to become a more consultative salesperson? 2. Three months later, Brenda was having mixed results with the consultative selling approach. She was finding that some of her customers just wanted the convenience of having a copier in their offices, and did not seem eager to discuss their strategic goals. She was beginning to wonder about the consultative selling model, thinking it was not such a good idea after all. W hat recommendations do you have for Brenda? 3. A month before the annual meeting for all NCC sales representatives, Jin Tan told Brenda, “ For the upcoming meeting, I want you to prepare a 10 minute presentation about the pros and cons of the basic selling approaches that we use at NCC compared to our competitors. ” NCC ’ s sales training program advocated the use of needs satisfaction, problem - solving, and consultative selling. Many of NCC ’ s key competitors used the same approaches. However some of the toughest competitors used stimulus response and men tal states (AIDA) approaches. This latter category of competitors often stressed lower prices and utilized telemarketing instead of field sales representatives in selling their products. Put yourself in Brenda ’ s role and prepare the presentation requested by Jin Tan . 4. Early in the year, Jin Tan told Brenda that her efforts were needed to gain more exposure for NCC ’ s college recruiting program: “ Brenda, I want you to be part of a two - person team to help with recruiting on two college campuses in your territory. The other team member will be an experienced recruiter who had sales experience before moving into recruiting . The two of you should seek out opportunities as guest speakers for classes and student organizations. Your role will be to talk about how sales can be a great place to start a care er and , for some, a great career path. Think about the future of selling and what it takes to be successful , and share your thoughts with students. ” Acting as Brenda, make note of ten key points you would like to make about the future of professional selling and what it takes to be successful. (Hint: B e sure you read the online Appendix to Chapter 1 along with Chapter 1 before you undertake this task.)

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    Instructor’s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan 2 - 1 Chapter Two — Building Trust and Sales Ethics Learning Objectives 2 - 1 Explain what trust is, explain why it is important, and understand how to earn trust. 2 - 2 Know how knowledge bases help build trust and relationships. 2 - 3 Understand the importance of sales ethics and its legal implications. Chapter Outline Introduction 31 2 - 1 What Is T rust? - 32 Why Is Trust Important? - 34 How to Earn Trust - 34 2 - 2 Knowledge Bases Help Build Trust and Relationships - 38 Industry and Company Knowledge - 38 Product Knowledge - 40 Service - 40 Promotion and Price - 41 Market and Customer Knowledge - 41 Competitor Knowledge - 42 Technology Knowledge - 43 2 - 3 Sales Ethics and Legal Implications - 44 Image of Salespeople and Sales Executives - 45 Deceptive Practices - 45 Non c ustomer - Oriented Behavio u r - 45 Legal Implications - 45 How Are Companies Dealing with Sales Ethics? - 49 Chapter 2 Case - 51 Chapter 2 Role Play - 52 Exercises Developing Professional Selling Knowledge 1 What is the esse nce of trust for a salesperson? 2. If trust means different things to different buyers, how is a salesperson to determine what trust means for each buyer? 3. Why is trust important to a salesperson? 4. How might a salesperson go about earning trust? 5. What does it mean for a salesperson to have a customer orientation?

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    Instructor’s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan 2 - 2 6. How would you rank the five trust builders in order of importance? 7. Explain why expertise is such an important relationship builder. 8. How do knowledge bases help build trust and relationships? 9. Do you think certain knowledge bases are more important than others? Why? 10. What are the three areas of unethical behavio u r? Discuss each. Group Activity Ask students to think about their experiences with salespeople. Have them write down a short list of things that salespeople have done that built trust , and a short list of things salespeople have done that have damaged trust. Next, divide the class into small groups and have them discuss and combine their lists. Ask each group to present its list. The purpose of this exercise is help students better understand trust - building and trust - damaging behavio u rs through shared experiences . Try to get students to share stories and identify how the behavio u rs described in those stories match one or more of the five components of trust. Experiential Exercises Building Relationships after the Sale Objective: Your students will discover the importance of follow - up activities in building relationships. Time Required: 10 to 15 minutes, or longer if working in groups. Teaching Tip: Have students work in small groups to develop answers to the questions. Then let each group present its answers to the rest of the class. Not many years ago, salespeople often thought that their jobs were complete once the order was signed. Today, for a business to survive, repeat business is critical. A greater emphasis has been placed on the follow - up stage of the selling process. Continue d building of the relationship should be your goal well after the sale. 1. Show appreciation after the sale. How might you accomplish this? 2. Monitor delivery and installation. Why is this important? 3. Learn the names of the switchboard operator, receptionists, office manager, users of the product, etc. How might you accomplish this and why is it important? Video Exercise s Building Trust and Sales Ethics Scene 1A, Meet the Eager Beaver, run time 2:42 minutes Professional salespeople will face a number of situations that will require that they make ethical choices throughout their careers. Sales people will relate with a multitude of people who are competitors and may want to use this relationship to gain information , an ethical dilemma that Lisa faces. Mark – Manager for Player One Lisa – Sales Rep for Alpha Tech – Security system provider trying to earn the customer away from Goodman Jim – Sales Rep for Goodman – Current provider of security system

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    Instructor’s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan 2 - 3 Ask your students: 1. Which area of unethical behavio u r does Mark want Lisa to engage in? 2. Discuss how Lisa’s answer can institute trust in her relationship with Mark as well as avoid her engaging in unethical behavio u r. Chapter 2 Case Cabot Business Stationery Background Kelly Myers has spent the past three months trying to gather all the information she needs to submit a bid on an order that is very important to her company . Bids are due tomorrow and the decision will be made within a week . She has made a great impression on the purchasing agent, Janet Williams, and she has just ended a conversation with her sales manager who believes Kelly needs to make one more call on Williams to see if she can find out any additional information that migh t help her prepare the bid . Kel ly’s boss specifically wants to know who the other bidders are. Current Situation Later that day, Kelly visited with Janet Williams . During the course of the conversation with Williams, Kelly asked who the other bidders were . Williams beat around the bush for a while, but she did not reveal the other bidders. She did mention the other bids were in and pulled the folder out of the filing cabinet where they were kept . Janet opened the file and looked over the bids in front of Kelly . There was a knock on the door and Janet’s boss asked if he could see her for a minute and she walked down the hall with her boss. Kelly realized all the bids were left out in front of her . There was a summary sheet of all of the bids on top and she could easily see all the bids . When Williams returned she returned the folder to the file and the two made some small talk and ended their conversation . Kelly returned to her office and completed her bid and turned it in to Janet Williams the next morning . Kelly knew her bid would be the lowest by $500.00. One week later Kelly learned she won the bid . Discussion Question s 1. What are the ethical iss ues involved in this situation? 2. If you were Kelly Myers, do you think Janet Williams intended for you to see the competitive bids? What would you have done, given this situation? Why? Chapter 2 Role Play Reef Uniform Company Case Background Reef Uniform Company (RUC) specializes in providing uniforms to hotels and restaurants. RUC is a new company from Australia trying to break into the Canadian market. They have had trouble breaking into larger accounts (Marriott, Delta, Sheraton) because , as a new company , they don ’t have name recognition in Canada . As the account exec in the area, you have been working on a new Sheraton hotel with over 5,000 rooms and 500 employees. You recently submitted a proposal and the buyer, Anthony Norman, has told you he is leaning your way with the order. He also told you th at this order must come off without a hitch as his hide is on the line if things go wrong. You know there could be a problem down the road as one of your unions has been negotiating a contract that is about to expire. The last time this contract came up, t here was a strike and orders were backlogged for weeks. The

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    Instructor’s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan 2 - 4 hotel has many customized uniforms and has to have these for their grand opening in three months. What is your obligation to the hotel having this information? This order will make your year and probably send you on a trip to Rome for exceeding quota. Role Play Location — Anthony Normans Office ; Action — Role play a sales call with Anthony Norman, addressing the issues in the case . Chapter 2 Continuing Case Because the National Copier Company (NCC) has only been in business for five years, Brenda Smith is concerned that most of her competitors are older than she is. The prospective customers she has been calling on state they know they can count on her compet itors because they have a long track record. As NCC expands into new markets , some of her prospects are not familiar with her company. One prospective customer, who works for one of the most pr estigious and largest medical offices (30 doctors) in the area, told her he has been buying copiers from the same company for over 25 years. He also told her his sales representative for the company has been calling on him for over seven years, and he knows when he calls on his copier supplier for advice he can count on him for a solid recommendation. Brenda realizes these are going to b e tough accounts to crack . Brenda does have an advantage due to the high quality of NCC products. In a recent trade publication, NCC’s copiers tied for first in the industry on ratings of copier quality and dependability. NCC was also given a high rating for service. Brenda has had this information for two weeks now and has brought it up in conversations with her prospective customers without much success. To make matters worse, one of her competitors must have started rumo u rs about NCC. In the past month, she has heard the following rumo u rs:  “NCC is going out of business because of financial troubles.”  “NCC has missed several delivery deadlines with customers.”  “NCC’s copiers have a software glitch that cannot be corrected.”  “NCC has cut its service staff.” Brenda knows these rumo u rs are not true, but prospects might believe the rumo u rs. At a recent sales meeting, Brenda’s manager suggested that their competitors must be getting nervous about NCC’s success, causing them to start such vicious rumo u rs . Brenda is sitting at her desk trying to figure out what to do next and she is not exactly sure how to proceed. Questions 1. What would you recommend Brenda do to handle the challenges she faces? 2. Brenda appears to have an advantage with her products and services. Develop a plan for Brenda to build trust in NCC with prospective customers. 3. What do you recommend Brenda do to compete effectively against competitors that have a long and successful track record? 4. How should Brenda go about handling the rumo u r mill?

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    Instructor’s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan 3 - 1 Chapter Three — Understanding Buyers Learning Objectives 3 - 1 Categorize the primary types of buyers, and discuss the distinguishing characteristics of business markets. 3 - 2 List the steps in the business - to - business buying process. 3 - 3 Discuss the different types of buyer needs. 3 - 4 Describe how buyers evaluate suppliers and alternative sales offerings by using the multiattribute model of evaluation. 3 - 5 Explain the two - factor model that buyers use to evaluate the performance of sales offerings and develop satisfaction. 3 - 6 Explain the different types of purchasing decisions. 3 - 7 Describe the four communication styles and how salespeople must adapt their own styles to maximize communication. 3 - 8 Explain the concept of buying teams and specify the different member roles. 3 - 9 Identify current developments in purchasing. Chapter Outline Introduction - 55 3 - 1 Types of Buyers - 56 Distinguishing Characteristics of Business Markets - 56 Co ncentrated Demand - 56 Derived Demand - 58 Higher Levels of Demand Fluctuation - 58 Purchasing Professionals - 58 Multiple Buying Influences - 58 3 - 2 The Buying Process - 59 Phase One — Recognition of the Problem or Need: The Needs Gap - 61 3 - 3 Types of Buyer Needs - 62 Phase Two — Determination of Characteristics of the Item and the Quantity Needed - 63 Phase Three — Description of the Characteristics of the Item and Quantity Needed - 64 Phase Four — Search for and Qualification of Potential Sources - 65 Phase Five — Acquisition and Analysis of Proposals - 65 3 - 4 Procedures for Evaluating Suppliers and Products - 66 Assessment of Product or Supplier Performance - 66 Accounting for Relative Importance of Each Characteristic - 67 Employing Buyer Evaluation Procedures to Enhance Selling Strategies - 67 Phase Six — Evaluation of Proposals and Selection of Suppliers - 69 Phase Seven — Selection of an Order Routine - 69 Phase Eight — Performance Feedback and Evaluation - 69

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    Instructor’s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan 3 - 2 3 - 5 Understanding Postpurchase Evaluation and the Formation of Satisfaction - 70 The Growing Importance of Salespeople in Buyers’ Postpurchase Evaluation - 71 3 - 6 Types of Purchasing Decisions - 71 Straight Rebuys - 72 New Tasks - 72 Modified Rebuys - 73 3 - 7 Understanding Communication Styles - 73 Mastering Communication Style Flexing - 76 3 - 8 Buying Teams - 77 3 - 9 Current Developments in Purchasing - 79 Increasing Use of Information Technology - 79 Buyers’ Access to and Demand for Relevant Information - 79 Relationship Emphasis on Cooperation and Collaboration - 80 Supply Chain Management - 80 Increased Outsourcing - 81 Target Pricing - 81 Increased Importance of Knowledge and Creativity - 82 Appendix Chapter 3: Recommended Flexing Behaviour for Different Communication Styles - 84 Selling Task or Objective - 84 Chapter 3 Case - 88 Chapter 3 Role Play - 90 Exercises Developing Professional Selling Knowledge 1. How might the following characteristics of business - to - business markets affect the relational selling activities of salespeople ? 2. How do the three different types of purchasing decisions (straight rebuy, modified rebuy, new task) influence the time and effort a buyer might allocate to the different steps of the purchase decision process? 3. List and compare the probable functional, situational, psychological, social, and knowledge needs of (a) a large financial investment office and (b) a college student, both of whom are looking to purchase a new computer printer. 4. How might a salesperson work with and assist a business buyer in each step of the buying process ? 5. Explain the role of functional attributes and psychological attributes in the post - purchase determination of customer satisfaction. 6. How might salespeople use their knowledge of the multiattribute evaluation model to plan and deliver their sales presentations to a buyer? 7. What are the implications for a salesperson if, when making a sales call, he or she discovers that there is no needs gap present? Illustrate your answer with an example. 8. Why has knowledge and the capability to creatively apply that knowledge in creating unique solutions become so important for today’s salesperson in the business - to - business marketplace?

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    Instructor’s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan 3 - 3 9. Explain the concept of communication styles and how a salesperson might flex his or her own style to better match the style of the buyer. How would the salesperson’s behaviours and activities differ as he or she advances through the different stages of the selling process? Illustrate your answer with examples. 10. What are the implications of buying teams for a salesperson selling complex production equipment to a manufactur ing firm ? Develop an example to explain further and illustrate your answer. Group Activity In many ways, recruiting is a lot like buying a product. Accordingly, the recruiting process is very similar to the buying process. The purpose of this section of the G uide is to help students understand the recruiting process from the recruite r’s perspective. To complete this section, students need to do two things. First, they need to identify the type of job they would like to obtain after graduation. Second, they are to describe each of the phases of the buying process (outlined in the chapter) in the context of recruiting for their desired position. For example, in phase one, they would describe how the position became available. In phase two they would describe the qualifications and desirable characteristics the recruiter will look for in can didates. Students should continue the exercise all the way through phase eight, describing the impact of their first year’s performance on the recruiters’ assessment of other graduates of their institution. The purpose of this exercise is to help students think through the buying decision process in a way that is or will be meaningful to them. In addition, this exercise should better prepare students for the job search process. Experiential Exercises Key Questions During the Buying Decision Process Objective: Your students will be able to understand the importance of good, effective questioning. Time Required: 10 to 15 minutes Teaching Tip: Have students work individually or in small groups to answer the questions. For each question, have students explain why the question is important. 1. Who, besides you, will be making the decision to buy? 2. What problems do you foresee in changing suppliers? 3. What do we need to do to win the support of others? 4. When would you plan to make the purchase decision? 5. What sense of urgency do you feel about this buying decision? 6. Other important questions?

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    Instructor’s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan 3 - 4 Video Exercise Understanding Buyers Scene 1B, Meeting the Seasoned Pro, run time 2:49 minutes. Business - to - business markets are, in many ways, more complex than consumer markets with regard to the sales function. Review this segment and comment on the characteristics of this sales situation and where the customer is in the buying process. Ask your students: 1. Comment on the assertiveness and responsiveness communication style in this interaction between Jim and Mark. 2. Discuss the buying influences that are impacting Mark’s decision making in this sales situation. Chapter 3 Case Relationships F irst Inc. Background RelationshipsFirst, Inc. is a relatively new entrant in the cloud computing business management software industry, having been in existence for a little over four years. It specializes in providing Web - based customizable customer relationship management so ftware solutions that support an entire company, from accounting to Web capabilities. Its software is constructed around an individual customer record so that accounting, sales, support, shipping, and billing all access identical information for each inter action. The company currently serves a variety of businesses across a number of industries. Customer satisfaction is the company ’ s top priority , and it acts with integrity to fulfill this mission. Its technology is easy to learn and easy to use, and its information technology staff is extremely knowledgeable and customer friendly. The company currently employs more than 75 salespeople who call directly on businesses and organizations throughout Canada . Salespeople are trained to be customer - oriented problem solvers who seek to establish long - term relationships with customers. This approach has allowed RelationshipsFirst to experience steady sales gains since its beginning , and it hopes to continue its upward growth trajectory. Current Situation Dawn, a recent college graduate who just completed the sales rep training program at RelationshipsFirst, is excited about her upcoming meeting with Red Meadows Nursery and Landscape, LLC of Winnipeg , Manitoba . Privately owned, Red Meadows serves the nursery and landscaping needs of its customers through its two large metro retail locations. Each location has a store manager and several full - and part - time employees to assist with sales and operations. The company ’ s owner serves as president and they also employ a director of marketing and sales, who among other things oversees a staff of five outside salespeople, a director of operations, a director of information technology (whose primary responsibility is to run the Web side of th eir business), and a director of accounting and finance. The outside sales force solicits both residential and commercial accounts and in large part is responsible for growing the non retail business for Red Meadows. A good friend of Dawn ’ s, Kristen Lewis , happens to be neighbo u rs with Adam Kean , Red Meadows director of marketing and sales. In a recent conversation with Adam , Kristen mentioned Dawn and how she might be able to help him at Red Meadows. Adam suggested that Kristen have Dawn give him a call and subsequently Dawn was able to secure a meeting with Adam Kean the following Tuesday morning. Dawn was delighted that Kristen provided her with this prospect and was confident that this would help her get off to a fast start at RelationshipsFirst. Dawn has been friends with Kristen since grade school. This is not unusual for

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    Instructor’s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan 3 - 5 Dawn, who has many friends and close relationships, likely because she shows such a sincere interest in others, particularly in their hobbies, interests, family, and mutual friends. She enjoys listening to the opinions of others and seems to get along with most everyone, generally avoiding conflict rather than submitting to others. Dawn credits her abilit ies to communicate well orally (she loves to talk and socialize), get along well with others, and build a consensus, in part, for her landing a position in sales at RelationshipsFirst. Prior to her meeting with Adam Kean , Dawn asked Kristen if she could meet her for lunch to find out a little more about Adam and Red Meadows. When Dawn finally arrived for lunch, late as usual, she wasn ’ t able to learn as much about Red Meadows as she would have liked, but she did learn the following about Adam . Kristen indicated that Adam was a good neighbo u r, but he certainly wasn ’ t a friendly, outgoing relationship builder such as Dawn. In fact, he tended to be rather cool, tough, and competitive when it came to relationships. He liked to be in charge of people and situations and was not willing to let others stand in the way of achieving his go als. Adam manages his time well, is impatient with others, and tends to be very businesslike. He likes extreme sports and appears to have a penchant for taking risks. According to Kristen , at annual home owners ’ association meetings, Adam tends to be the m ost outspoken individual in attendance. While opinionated, Adam rarely takes advice from others and prefers to make his own decisions. Although Dawn believed she still had additional work to do before meeting with Adam , she was at least glad to know a little bit about the person she would be meeting. The more she knew about her buyer, she surmised, the better she could tailor her offering to meet his needs. Questions 1. Based on your understanding of both Dawn and Adam, how would you characterize the communication style of each? 2. What, if any, preparations and style flexing should Dawn make to better relate to and communicate with Adam Strong? 3. Who all might be involved in the buying decision for Red Meadows with regard to Dawn’s offering? For each, explain why and how? 4. Explain at least two needs that might be met by Red Meadows by purchasing the software offered by RelationshipsFirst. Role Play Situation: Read the case Characters: Dawn, salesrep for RelationshipsFirst Inc. ; Adam Kean, director of marketing and sales, Red Meadows Nursery an d Landscape, LLC. Scene: Location — Ad am Kean’s office at Red Meadows ; Action — Dawn meets with Adam to find out more about Red Meadows operations and needs to see if she can help them. She is also trying to determine who else might be involved in the buying decision and what influence each might have. She has no plan to make a sale on this call. Chapter 3 Role Play Cape Breton Computer Corporation Background As a salesperson for Cape Breton Computer Corporation (CBCC), you have just received a call from your regional manager regarding a program now underway at one of your key accounts, Farmland Companies. Farmland is a national insurance company with agency of fices spread across Canada. The company is in the early stages of designing and specifying a computer system that will place a computer in each agency office. The system will allow each agency to develop, operate, and maintain its own customer database to provide better service to customers. In

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    Instructor’s Guide to accompany SELL , Second Canadian edition, Ingram/Shannahan 3 - 6 addition, by linking through the CBCC mainframe, agencies, regional offices, and CBCC headquarters will be networked for improved internal communications and access to the corporate database. Current Situation You have serviced this account for several years, and CBCC equipment accounts for the biggest share of computers now in place at Farmland — some 35 to 40 percent of all units. As reflected in your share of this account’s business, you and CBCC have a good re putation and strong relationship with Farmland. In talking with Aimee Linn, your usual contact in the Farmland purchasing office, you have learned that this agency network system is the brainstorm and pet project of Mike Hughes, a very “hands - on” CEO. Cons equently, the probability of the system becoming a reality is high. While faxing a complete set of hardware specs to you, Linn has also let you know that, although Kerri Nicks, director of the Farmland MIS department, is actually heading up this project; t he national agency sales director, Ravi Singh, is also very active in its design and requirement specifications. His interest stems not only from wanting to make sure that the system will do what is needed at the corporate, regional, and agency levels but also from the fact that he brainstormed and spearheaded a similar project two years ago that was never implemented. The previous effort did not have the blessing of Nicks in the MIS department, and it became a political football between the two departments . Each department wanted something different, and both sides accused the other of not knowing what it was doing. Primarily, because the CEO has commanded that it will be done, both sides seem to be playing ball with each other this time. Linn did hint at one concern, however; although corporate is designing and specifying the system, each agency has to purchase its units out of its own funds. Although the agencies exclusively represent only Farmland Insurance products, each agency is owned by the general agent, not Farmland. Some of the agents are not convinced that the system is worth the projected price tag of $3,500 per system, and Farmland cannot force them to buy the syst ems. As with other selling opportunities with Farmland, this has all the makings of a decision that will be made as a result of multiple inputs from an assortment of individuals across the company — a buying team of sorts. As the salesperson having primary respon sibility for this account, how would you go about identifying the various members of the buying centre? Questions 1. Identify each member of the buying cent re and the role each participant plays, and estimate the amount of influence (low, medium, high, very high) each has on the final decision. 2. What are the major problems, needs, and expectations that you will need to address for each of the buying centre members? 3. As you complete the assignment, remember that a single individual can perform multiple roles in the centre. Furthermore, it is common to find more than one individual playing the same buying centre role.

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