y\ % 23

ABC's of Relationship Selling

Through Service

TWELFTH EDITION

CHARLES M. FUTRELL
Texas A & M University

McGraw-Hill
Irwin
 S—Sales Knowledge at the M.D. Level 19
PARTI S—Stamina for the Challenge 19
C—Characteristics for the Job Examined 19
Caring, Joy, Harmony 19
Selling as a Profession 3 Patience, Kindness, Moral Ethics 20
Faithful, Fair, Self-Control 20
CHAPTER 1 Relationship Selling 21
Sales Jobs Are Different 22
The Life, Times, and Career of the Professional
What Does a Professional Salesperson Do? 23
Salesperson 4
Reflect Back 25
What Is the Purpose of Business? 5 The Future for Salespeople 25
The Primary Goal of Business 5 Learning Selling Skills 26
N
Marketing's Definition 6 Preparing for the 21st Century 27
Essentials of a Firm's Marketing Effort 6 An Ethical Megatrend Shaping Sales and Business 27
Product: It's More than You Think 6 E-Selling: Technology and Information Build
Price: It's Important to Success 6 Relationships 28
Distribution: It Has to Be Available 7 Selling Is for Large and Small Organizations 29
Promotion: You Have to Tell People about It 7 The Plan of This Textbook 29
What Is Selling? 7 Building Relationships Through The Sales Process 30
A New Definition of Personal Selling 8 Summary of Major Selling Issues 32
The Golden Rule of Personal Selling 8 Key Terms for Selling 32
Salesperson Differences 9 Sales Application Questions 33
Everybody Sells! 10 Further Exploring the Sales World 33
What Salespeople Are Paid to Do 10 Selling Experiential Exercise 33
Why Choose a Sales Career? 10 Aerobic, Strength, and Flexibility Exercise Guidelines 33
Service: Helping Others 11
CASE
A Variety of Sales lobs Are Available 11
1.1 What They Didn't Teach Us in Sales Class 34
Freedom of Action: You're on Your Own 14
lob Challenge Is Always There 14
Opportunities for Advancement Are Great 14 APPENDIX:
Rewards: The Sky's the Limit 16
The Golden Rule of Personal Selling as Told by a
You Can Move Quickly into Management 16
Salesperson 36
Is a Sales Career Right for You? 17
Success in Selling—What Does It Take? 17 The Golden Rule of Selling 36
S—Success Begins with Love 17 Others Includes Competitors 36
S—Service to Others 17 Sales Is Your Calling to Serve 36
U—Use the Golden Rule of Selling 18 To Serve, You Need Knowledge 37
C—Communication Ability 18 Customers Notice Integrity 37
C—Characteristics for the Job 19 Personal Gain Is Not Your Goal 38
E—Excels at Strategic Thinking 19 Others Come First 38
xxiv Contents

The Golden Rule Is Not 38 Establish a Code of Ethics 61

Corruptible It Is Not 38 Create Ethical Structures 62
Self-Serving It Is Not 39 Encourage Whistle-Blowing 62
Comprehensive It Is Not 39 Create an Ethical Sales Climate 62
Easy to Follow It Is Not 39 Establish Control Systems 63
The Great Harvest Law of Sales 39 Ethics in Business and Sales 63
A Corny Example 39 Helpful Hints in Making Career Decisions 63
The Common Denominator of Sales Success 40 Do Your Research! 64
The Fruit of the Selling Spirit 40 Golden Rule of Personal Selling 66
Ethics Rule Business 66
CHAPTER 2 Summary of Major Selling Issues 67
Key Terms for Selling 67
Ethics First... Then Customer Relationships 41 Sales Application Questions 67
What Influences Ethical Behavior? 42 Further Exploring the Sales World 68
The Individual's Role 42 Selling Experiential Exercise 68
The Organization's Role 44 Ethical Work Climates 68
Are There Any Ethical Guidelines? 44
CASE
What Does the Research Say? 44 3.1 Ethical Selling at Perfect Solutions: The Case of
What Does One Do? 44 the Delayed Product with video 69
Is Your Conscience Reliable? 45 3.2 Sales Hype: To Tell the Truth or Stretch It, That Is
Sources of Significant Influence 46 the Question with video 71
Three Guidelines for Making
Ethical Decisions 46
Will the Golden Rule Help? 47
Management's Ethical Responsibilities 47 PART II
What Is Ethical Behavior? 48
What Is an Ethical Dilemma? 48 Preparation for Relationship
Ethics In Dealing With Salespeople 49
Level of Sales Pressure 49 Selling 73
Decisions Affecting Territory 50
To Tell the Truth? 50 CHAPTER 3
The 111 Salesperson 51
The Psychology of Selling: Why People Buy 74
Employee Rights 51
Salespeople's Ethics in Dealing with Their The Golden Rule: Benefits 75
Employers 53 Why People Buy—The Black Box Approach 75
Misusing Company Assets 53 Psychological Influences on Buying 76
Moonlighting 53 Motivation to Buy Must Be There 76
Cheating 53 Economic Needs: The Best Value for the Money 76
Affecting Other Salespeople 53 Awareness of Needs: Some Buyers Are Unsure 77
Technology Theft 54 A MBulous Approach to Buyer Need Satisfaction 78
Ethics in Dealing with Customers 54 The Product's Features: So What? 78
Bribes 54 The Product's Advantages: Prove It! 78
Misrepresentation 54 The Product's Benefits: What's in It for Me? 79
Price Discrimination 59 How to Determine Important Buying
Tie-in Sales 59 Needs—A Key to Success 81
Exclusive Dealership 59 The Trial Close—A Great Way to Uncover
Reciprocity 59 Needs and Sell 82
Sales Restrictions 59 Sell Sequence 83
The International Side of Ethics 60 You Can Classify Buying Situations 85
Managing Sales Ethics 61 Some Decisions Are Routine 86
Follow the Leader 61 Some Decisions Are Limited 86
Leader Selection Is Important 61 Some Decisions1 Are Extensive 86
 Contents xxv

Technology Provides Information 87 Further Exploring the Sales World 127

View Buyers as Decision Makers 87 Selling Experiential Exercise 127
Need Arousal 88 Listening Self-Inventory 127
Collection of Information 88 CASE
Information Evaluation 88 4.1 Skaggs Manufacturing 128
Purchase Decision 89 4.2 Alabama Office Supply 129
Postpurchase 90 4.3 Vernex, with video Inc. 129
Satisfied Customers Are Easier to Sell To 91
To Buy or Not to Buy—A Choice Decision 91 APPENDIX:
Summary of Major Selling Issues 93
Dress for Success... and to Impress for Business
Key Terms for Selling 94
Professional and Business Casual Occasions! 131
Sales Application Questions 94
Further Exploring the Sales World 97 CHAPTER 5
Student Application Learning Exercises (Sales) 98
Sales Knowledge: Customers, Products,
Sale 1 of 7—Chapter 3 98
Technologies 135
Selling Experiential Exercise 98
Is Organizational Selling for You? 98 The Golden Rule: Knowledge 136
Sources of Sales Knowledge 136
CASE
Knowledge Builds Relationships 137
3.1 Economy Ceiling Fans, Inc. 99
Knowledge Increases Confidence in Salespeople . . . 137
3.2 McDonald's Ford Dealership 99
. . . and in Buyers 137
CHAPTER 4 Relationships Increase Sales 138
Know Your Customers 138
Communication for Relationship Building:
Know Your Company 138
It's Not All Talk 101 General Company Information 138
The Golden Rule: Communication 102 Know Your Product 139
Communication: It Takes Two 103 Know Your Resellers 140
Salesperson-Buyer Communication Process Requires Advertising Aids Salespeople 140
Feedback 103 Types of Advertising Differ 141
The Buyer's Personality Should Be Considered 105 Why Spend Money on Advertising? 142
Self-Concept 105 Sales Promotion Generates Sales 143
Adaptive Selling Based on Buyer's Personality Style 105 Point-of-Purchase Displays: Get Them Out There 143
Personality Typing 105 Shelf Positioning Is Important to Your Success 143
Adapt Your Presentation to the Buyer's Style 107 Premiums 144
Nonverbal Communication: Watch for It 109 What's It Worth? Pricing Your Product 144
Concept of Space 109 Know Your Competition, Industry, and Economy 145
Communication through Appearance and the Personal Computers and Selling 147
Handshake 111 Knowledge of Technology Enhances Sales
Body Language Gives You Clues 114 and Customer Service 147
Master Persuasive Communication to Maintain Personal Productivity 148
Control 117 Communications with Customers and Employer 150
Feedback Guides Your Presentation 117 Customer Order Processing and Service Support 152
Remember the Trial Close 118 Sales: Internet and the World Wide Web 153
Empathy Puts You in Your Customer's Shoes 118 The Internet 153
Keep It Simple 119 World Wide Web 153
Creating Mutual Trust Develops Friendship 120 Global Technology Provides Service 154
Listening Clues You In 120 Technology Etiquette 155
Your Attitude Makes the Difference 123 Netiquette 155
Proof Statements Make You Believable 124 Cell Phones 156
Summary of Major Selling Issues 124 Voice Mail 156
Key Terms for Selling 125 Faxes 157
Sales Application Questions 126 Speakerphones and Conference Calls 157
xxvi Contents

Summary of Major Selling Issues 157 Prospecting—The Lifeblood of Selling 181

Key Terms for Selling 158 The Leaking Bucket Customer Concept 182
Sales Application Questions 158 Where to Find Prospects 182
Further Exploring the Sales World 159 Planning a Prospecting Strategy 182
Selling Experiential Exercise 159 Prospecting Methods 183
How Is Your Self-Confidence? 160 E-Prospecting on the Web 183
Cold Canvassing 184
APPENDIX: Endless Chain Customer Referral 184
Sales Arithmetic and Pricing 161 Orphaned Customers 185
Sales Lead Clubs 185
Types of Prices 161 Prospect Lists 185
Discounts Lower the Price 162 Getting Published 186
Quantity Discounts: Buy More, Pay Less 162 Public Exhibitions and Demonstrations 186
Cash Discounts Entice the Customer to Pay Center of Influence 187
on Time 162 Direct Mail 188
Trade Discounts Attract Channel Members' Telephone and Telemarketing 188
Attention 163 Observation 188
Consumer Discounts Increase Sales 163 Networking 189
Resellers: Markup and Profit 164 Prospecting Guidelines 190
Markup and Unit Price 165 Referrals Used in Most Prospecting Methods 191
Markup and Return on Investment 165 The Prospect Pool 191
Organizations: Value and ROI 167 The Referral Cycle 192
Compare Product Costs to True Value 168 The Parallel Referral Sale 192
Unit Costs Break Down Price 169 The Secret Is to Ask Correctly 192
Return on Investment Is Listened To 169 The Preapproach 193
Key Terms for Selling 169 The Presentation 194
Sales Application Questions 169 Product Delivery 194
Student Application Learning Exercises Service and Follow-Up 195
(Sales) 171 Don't Mistreat the Referral 195
Sale 2 of 7—Chapter 5 171 Call Reluctance Costs You Money! 196
CASE Obtaining the Sales Interview 196
5A.1 Claire Cosmetics 171 The Benefits of Appointment Making 196
5A.2 McBath Women's Apparel 172 Wireless E-Mail Helps You Keep in Contact And
5A.3 Electric Generator'Corporation 173 Prospect 200
5A.4 Frank's Drilling Service 173 Summary of Major Selling Issues 201
5A.5 FruitFresh, Inc. with video 174 Key Terms for Selling 201
Sales Application Questions 202
Further Exploring the Sales World 202
Selling Experiential Exercise 202
Your Attitude toward Selling 203
PART CASE
6.1 Canadian Equipment Corporation 204
The Relationship Selling 6.2 Montreal Satellites 204

Process 177 CHAPTER 7

Planning the Sales Call Is a Must! 205
CHAPTER 6
The Golden Rule: Planning 206
Prospecting—The Lifeblood of Selling 178
Begin Your Plan with Purpose! 206
The Golden Rule: Prospecting 179 Plan to Achieve Your Purpose 206
The Sales Process Has 10 Steps 180 What's a Plan? 207
Steps before the Sales Presentation 180 What Is Success? 207
 Contents xxvii

Strategic Customer Sales Planning—The Sales Presentations Go High-Tech 243

Preapproach 209 ' Select the Presentation Method, then the
Strategic Needs 210 Approach 243
Creative Solutions 210 The Parallel Dimensions of Selling 244
Mutually Beneficial Agreements 210 First Column 245
The Customer Relationship Model 210 Second Column 245
Reasons for Planning the Sales Call 210 Third Column 245
Elements of Sales Call Planning 212 Fourth Column 245
Always Have a Sales Call Objective 212 The Sales Presentation and Techniques 245
The Prospect's Mental Steps 218 Your Sales Presentation 246
Attention 218 The Golden Rule Makes Sense 249
Interest 219 Dale Carnegie Gives a Word of Warning! 249
Desire 219 Practice and Time 250
Conviction 219 Summary of Major Selling Issues 250
Purchase or Action 219 Key Terms for Selling 251
Overview of the Selling Process 220 Sales Application Questions 251
Summary of Major Selling Issues 220 Further Exploring the Sales World 252
Key Terms for Selling 221 Selling Experiential Exercise 252
Sales Application Questions 221 What Are Your Negotiation Skills? 252
Further Exploring The Sales World 222
CASE
Selling Experiential Exercise 222
8.1 Cascade Soap Company 253
SMART Course Objective Setting 222
8.2 A Retail Sales Presentation 253
Student Application Learning Exercises (Sales) 223
8.3 Negotiating with a Friend 254
SALE 3 of 7—Chapter 7 223
CASE CHAPTER 9
7.1 Ms. Hansen's Mental Steps in Buying Your
Begin Your Presentation Strategically 256
Product 224
7.2 Machinery Lubricants, Inc. 225 The Golden Rule: The Beginning 257
7.3 Telemax, Inc. with video 225 What Is the Approach? 257
The Right to Approach 259
CHAPTER 8 The Approach—Opening the Sales Presentation 259
Your Attitude during the Approach 259
Carefully Select Which Sales Presentation
The First Impression You Make Is
Method to Use 226
Critical to Success 261
The Golden Rule: Presentation 227 Approach Techniques and Objectives 262
Sales Presentation Strategy 228 Small Talk Warms 'em Up 262
Sales Presentation Methods—Select One Carefully 229 The Situational Approach 262
The Memorized Sales Presentation 229 Opening with Statements 263
The Formula Presentation 231 Demonstration Openings 265
The Need-Satisfaction Presentation 233 Opening with Questions 266
The Problem-Solution Presentation 236 Technology in the Approach 273
Comparison of Presentation Methods 236 Is the Approach Important? 273
What Is the Best Presentation Method? 237 Using Questions Results in Sales Success 273
The Group Presentation 237 The Direct Question 274
Give a Proper Introduction 238 The Nondirective Question 275
Establish Credibility 238 The Rephrasing Question 275
Provide an Account List 238 The Redirect Question 275
State Your Competitive Advantages 238 Three Rules for Using Questions 276
Give Quality Assurances and Qualifications 238 Is the Prospect Still Not Listening? 276
Cater to the Group's Behavioral Style 238 Be Flexible in Your Approach 277
Negotiating So Everyone Wins 240 Summary of Major Selling Issues 278
Phases of Negotiation 241 Key Terms for Selling 279
xxviii Contents

Sales Application Questions 279 CASE

Further Exploring the Sales World 281 10.1 Dyno Electric Cart Company 314
Selling Experiential Exercise 281 10.2 Major Oil, Inc. 314
Plan Your Appearance—It Projects Your Image! 282 10.3 Dumping Inventory: Should This Be Part of Your
Student Application Learning Exercises (Sales) 282 Presentation? with video 317
SALE 4 of 7—Chapter 9 282

CASE CHAPTER 11
9.1 The Thompson Company 283 Welcome Your Prospect's Objections 319
9.2 The Copy Corporation 283
The Golden Rule: Objections 320
9.3 Electronic Office Security Corporation 284
Welcome Objections! 320
What Are Objections? 321
CHAPTER 10 When Do Prospects Object? 321
Objections and the Sales Process 321
Elements of a Great Sales Presentation 287
Basic Points to Consider in Meeting Objections 322
The Golden Rule: Presentation 289 Plan for Objections 323
The Purpose of the Presentation 289 Anticipate and Forestall 323
Three Essential Stejts within the Presentation 291 Handle Objections as They Arise 324 ,
Remember Your FABs! 292 Be Positive 324
The Sales Presentation Mix 292 Listen—Hear Them Out 324
Persuasive Communication 293 Understand Objections 324
Participation Is Essential to Success 297 Six Major Categories of Objections 327
Proof Statements Build Believability 298 The Hidden Objection 327
The Visual Presentation—Show and Tell 300 The Stalling Objection 328
Visual Aids Help Tell the Story 301 The No-Need Objection 330
Dramatization Improves Your Chances 301 The Money Objection 331
George Wynn the Showman 302 The Product Objection 334
Demonstrations Prove It 303 The Source Objection 334
A Demonstration Checklist 304 Techniques for Meeting Objections 336
Use Participation in Your Demonstration 304 The Dodge Neither Denies, Answers, nor Ignores 336
Reasons for Using Visual Aids, Dramatics, and Don't Be Afraid to Pass Up an Objection 336
Demonstrations 305 Rephrase an Objection as a Question 337
Guidelines for Using Visual Aids, Dramatics, and Postponing Objections Is Sometimes Necessary 338
Demonstrations 305 Send It Back with the Boomerang Method 339
Technology Can Help! 306 Ask Questions to Smoke Out Objections 340
The Sales Presentation Goal Model 306 Use Direct Denial Tactfully 343
The Ideal Presentation 307 The Indirect Denial Works 343
Be Prepared for Presentation Difficulties 307 Compensation or Counterbalance Method 344
How to Handle Interruptions 307 Let a Third Party Answer 344
Should You Discuss the Competition? 308 Technology Can Effectively Help Respond to
Where the Presentation Takes Place 310 Objections! 345
Diagnose the Prospect to Determine Your Sales After Meeting the Objection—What to Do? 345
Presentation 310 First, Use a Trial Close—Ask for Opinion 345
Summary of Major Selling Issues 310 Move Back into Your Presentation 346
Key Terms for Selling 311 Move to Close Your Sale 347
Sales Application Questions 311 If You Cannot Overcome the Objection 347
Further Exploring the Sales World 312 In All Things Be Guided by the Golden Rule 348
Student Application Learning Exercises (Sales) 313 Summary of Major Selling Issues 348
SALE 5 of 7—Chapter 10 313 Key Terms for Selling 349
 Contents xxix

Sales Application Questions 349 Student Application Learning Exercises (Sales) 382
Further Exploring the Sales World 350 SALE 7 of 7—Chapter 13 382
Student Application Learning Exercises (Sales) 351
SALE 6 of 7—Chapter 11 351
CASE
12.1 Skaggs Omega 383
CASE 12.2 Central Hardware Supply 383
11.1 Ace Building Supplies 351 12.3 Furmanite Service Company—A Multiple-Close
11.2 Electric Generator Corporation (B) 352 Sequence 384
12.4 Steve Santana: Pressured to Close a Big Deal with
video 385
CHAPTER 12
Closing Begins the Relationship 353
CHAPTER 13
The Golden Rule: Closing 354
Service and Follow-Up for Customer Retention 386
When Should I Pop the Question? 355
Reading Buying Signals 355 The Golden Rule: Service 387
What Makes a Good Closer? 356 The Importance of Service and Follow-Up 388
Ask for the Order and Be Quiet 357 Words of Sales Wisdom 389
Get the Order—Then Move On! 357 True Caring Builds Relationships and Sales 390
How Many Times Should You Close? 357 Building a Long-Term Business Friendship 391
Example of Closing More than Once 358 What Is a Business Friendship? 391
Closing Under Fire 358 How to Build a Business Friendship 391
Difficulties with Closing 360 What Is Most Important? 393
Essentials of Closing Sales 360 How Many Friends? 394
Prepare Several Closing Techniques 362 Relationship Marketing and Customer Retention 394
The Alternative-Choice Close Is an Old Favorite 363 Relationship Marketing Builds Friendships 394
The Assumptive Close 364 The Product and Its Service Component 394
The Compliment Close Inflates the Ego 364 Expectations Determine Service Quality 395
The Summary-of- Benefits Close Is Most Popular 365 Customer Satisfaction and Retention 395
The Continuous-Yes Close Generates Positive Excellent Customer Service and Satisfaction Require
Responses 366 Technology 396
The Minor-Points Close Is Not Threatening 366 So, How Does Service Increase Your Sales? 396
The T-Account or Balance-Sheet Close Was Ben Turn Follow-Up and Service Into a Sale 397
Franklin's Favorite 367 Account Penetration Is a Secret to Success 398
The Standing-Room-Only Close Gets Action 369 Service Can Keep Your Customers 399
The Probability Close 369 You Lose a Customer—Keep on Trucking 402
The Negotiation Close 370 Returned Goods Make You a Hero 403
The Technology Close 370 Handle Complaints Fairly 403
Prepare a Multiple-Close Sequence 371 Is the Customer Always Right? 403
Close Based on The Situation 371 This Customer Is Not in the Right! 403
Research Reinforces These Sales Success Strategies 371 Dress in Your Armor 404
Keys to Improved Selling 375 Build a Professional Reputation 404
The Business Proposition and the Close 375 Do's and Don'ts for Business Salespeople 405
Use a Visual Aid to Close 375 The Path to Sales Success: Seek, Knock, Ask, Serve 406
Closing Begins the Relationship 375 Summary of Major Selling Issues 408
When You Do Not Make the Sale 377 Key Terms for Selling 409
Summary of Major Selling Issues 378 Sales Application Questions 409
Key Terms for Selling 379 Further Exploring the Sales World 409
Sales Application Questions 379 Selling Experiential Exercise 410
Further Exploring the Sales World 381 What's Your Attitude toward Customer Service? 410
xxx Contents

CASE Key Terms for Selling 433

13.1 California Adhesives Corporation 411 Sales Application Questions 433
13.2 Sport Shoe Corporation 411 Selling Experiential Exercise 434
13.3 Wingate Paper with video 412 Further Exploring the Sales World 435

CASE
14.1 Your Selling Day: A Time and Territory
PART IV Game 435
14.2 Sally Malone's District—Development of an
Account Segmentation Plan 436
Time and Territory
Management: Keys to APPENDIX A:
Success 415 Sales Call Role-Plays 439
Role-Play One: Consumer Sales 439
CHAPTER 14 Role-Play Two: Distributor Sales 441
Time, Territory, and Self-Management: Keys to Your Sales Call 443
Success 416 Role-Play Three: Business-To-Business 445
The Golden Rule: Time 417 Role-Play Four: Business-To-Business
Customers Form Sales Territories 418 Sales XDT's Robophone+ (XDT) 449
Why Establish Sales Territories? 418
Why Sales Territories May Not Be Developed 419 APPENDIX B:
Elements of Time and Territory Management 419
Personal Selling Experiential Exercises 457
Salesperson's Sales Quota 420
Account Analysis 420 Sell Yourself On A Job Interview 457
Develop Account Objectives and Resume, Follow-Up Letter, E-Mail 459
Sales Quotas 423 How to Create a Portfolio 467
Territory-Time Allocation 423 What's Your Style—Senser, Intuitor,
Return on Time Invested 424 Thinker, Feeler? 470
Customer Sales Planning 427
Scheduling and Routing 428 Glossary of Selling Terms 473
Using the Telephone for Territorial Coverage 430 Notes 482
Territory and Customer Evaluation 431 Photo Credits 486
Summary of Major Selling Issues 432 Index 488