Contemporary Selling: Building Relationships, Creating Value

436 Pages·2013·8.867 MB·English

by  Johnston, Mark W., Marshall, Greg W.

Contemporary Selling
Building Relationships,
Creating Value
Published in previous editions as Relationship Selling,the latest edition of Mark Johnston and Greg Marshall’s
Contemporary Selling: Building Relationships, Creating Valuecontinues to set the standard for the most up-to-
date and student-friendly selling textbook available anywhere today.
The latest edition incorporates a new chapter on social media and technology-enabled selling, as well
as a new chapter on selling globally.To support student engagement, the book also features:
• “ExpertAdvice” chapter openers showing how each chapter’ssales concepts areapplied in the real world
• In-chapter “Ethical Dilemmas” that help students identify and handle effectively the numerous ethical
issues that arise in selling
• Mini-cases to help students understand and apply the principles they have learned in the classroom
• Role plays at the end of each chapter enabling students to learn by doing
• Special appendices on selling math and developing a professional sales proposal
• Video material available on the Companion Website, featuring new content with sales experts discussing
best sales practices from a recent PBS television special on selling produced by HR Chally.
The Companion Website can be accessed at www.routledge.com/cw/Johnston
Mark W. Johnstonis the Alan and Sandra Gerry Professor of Marketing and Ethics at Rollins College, USA.
Greg W. Marshallis the Charles Harwood Professor of Marketing and Strategy at Rollins College, USA.
“A great text if you want to combine professional selling and sales management in one book.”
–James S. Boles, Georgia State University, USA
“It is an excellent compilation of the principles of selling and sales management for undergraduate
students.”
–Subhra Chakrabarty, Mississippi State University, USA
“Johnston and Marshall successfully deliver a very readable text with everything you need to know
about selling and the sales process. Its approach is very contemporary. Particularly insightful for post-
graduate students with many valuable supporting learning material. This text will be recommended to
all my students on ‘selling and sales strategies’ modules.”
–Tony Douglas, Edinburgh Napier University Business School, Edinburgh
“This textbook facilitates an outstanding introduction to business-to-business selling. New sales students
often approach selling with some skepticism and bring with them the stereotype of the salesperson as
a mere product peddler willing to manipulate naive prospects. Contemporary Selling will open students’
eyes to the concept of the mutually beneficial exchange—in the competitive marketplace, sellers can
only satisfy customers by building relationships that center around the customer’s needs and customers
will only commit to sellers willing to do so. I have used previous editions of this book and have found
it invaluable—the new edition’s inclusion of sales technology is particularly exciting. With this textbook,
Dr. Johnston and Dr. Marshall are providing an outstanding resource at a particularly critical time when
students need to understand the true nature of selling and the vital role that salespeople play in fostering
a functioning marketplace and a thriving economy.”
–Ronald L. Jelinek, PhD., Providence College, USA
“If you are hunting for a book to teach young college students the art and science of modern selling,
look no further than Contemporary Selling by Mark Johnston and Greg Marshall. The book must rank
among the top few on the subject. What sets it apart are its honing the concept of value creation as the
underpinning of today’s selling, the expert advice from practitioners, and inclusion of ethics and global
perspectives... just a few powerful ideas that make the book what it shouts aloud—contemporary.”
—Bala Shankar,Adjunct Faculty, Singapore Management University; Consultant, Entrepreneur
“Johnston and Marshall’s Contemporary Selling is a valuable asset for mastering the skills of selling in
recent times. Discussions compiled through fourteen logical chapters are easy-to-follow but exhaustive
in content. Some of the book’s key strengths are its discussion of the relationship between technological
change and selling, its new perspectives on territory and time management, and its treatment of
globalized environment issues as they impact selling. All in all, this book offers great insights for any
course on Selling.”
—Kavita Sharma, University of Delhi, India
Contemporary Selling
Building Relationships,
Creating Value
4th Edition
MARK W. JOHNSTON AND GREG W. MARSHALL
Please visit the companion website for this title at www.routledge.com/cw/Johnston
This edition first published 2013
by Routledge
711 Third Avenue, New York, NY 10017
Simultaneously published in the UK
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2013 Taylor & Francis
The right of Mark W. Johnston and Greg W. Marshall to be identified as
authors of this work has been asserted by them in accordance with sections
77 and 78 of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced
or utilized in any form or by any electronic, mechanical, or other means,
now known or hereafter invented, including photocopying and recording,
or in any information storage or retrieval system, without permission in
writing from the publishers.
Trademark notice: Product or corporate names may be trademarks or
registered trademarks, and are used only for identification and explanation
without intent to infringe.
First edition published by McGraw-Hill, 2005
Second edition published by McGraw-Hill, 2008
Third edition published by McGraw-Hill, 2011
Library of Congress Cataloging in Publication Data
Johnston, Mark W.
Contemporary selling : building relationships, creating value /
Mark W. Johnston and Greg W. Marshall.
p. cm.
Rev. ed. of: Relationship selling. 3rd ed. c2010.
Includes bibliographical references and index.
1. Selling. 2. Relationship marketing. 3. Customer relations. I. Marshall, Greg W.
II. Johnston, Mark W. Relationship selling. III. Title.
HF5438.25.J655 2013
658.85—dc23 2012030579
ISBN: 978-0-415-52349-3 (hbk)
ISBN: 978-0-415-52350-9 (pbk)
ISBN: 978-0-203-12096-5 (ebk)
Typeset in Berkeley by
Keystroke, Station Road, Codsall, Wolverhampton
Brief Table of Contents
Preface xiii
PART ONE WHAT IS CONTEMPORARY SELLING? 1
CHAPTER 1 INTRODUCTION TO CONTEMPORARY SELLING 3
CHAPTER 2 UNDERSTANDING SELLERS AND BUYERS 29
CHAPTER 3 VALUE CREATION IN BUYER–SELLER RELATIONSHIPS 55
CHAPTER 4 ETHICAL AND LEGAL ISSUES IN CONTEMPORARY SELLING 83
CHAPTER 5 CRM AND SALES TECHNOLOGIES 109
PART TWO ELEMENTS OF THE CONTEMPORARY SELLING PROCESS 129
CHAPTER 6 PROSPECTING AND SALES CALL PLANNING 131
CHAPTER 7 COMMUNICATING THE SALES MESSAGE 157
CHAPTER 8 NEGOTIATING FOR WIN-WIN SOLUTIONS 191
CHAPTER 9 CLOSING THE SALE AND FOLLOW-UP 211
CHAPTER 10 SALESPERSON SELF-MANAGEMENT 235
PART THREE MANAGING THE CONTEMPORARY SELLING PROCESS 259
CHAPTER 11 SALESPERSON PERFORMANCE: BEHAVIOR, MOTIVATION, AND ROLE
PERCEPTIONS 261
vi BRIEF TABLE OF CONTENTS
CHAPTER 12 RECRUITING, SELECTING, AND TRAINING SALESPEOPLE 283
CHAPTER 13 COMPENSATING AND EVALUATING SALESPEOPLE 325
CHAPTER 14 GLOBAL PERSPECTIVES ON CONTEMPORARY SELLING 357
Glossary 375
Endnotes 391
Index 403
Table of Contents
Preface xiii CHAPTER 2
UNDERSTANDING SELLERS AND BUYERS 29
PART ONE
Learning Objectives 29
WHAT IS CONTEMPORARY SELLING? 1
Expert Advice: Anjai (“A.J.”) Gandi 30
Overview of Selling as a Career 31
CHAPTER 1
Why Sales Jobs Are So Rewarding 32
INTRODUCTION TO CONTEMPORARY
SELLING 3 Key Success Factors in Contemporary Selling 35
Listening Skills 36
Learning Objectives 3
Follow-up Skills 37
Expert Advice: David B. Edmonds 4
Ability to Adapt Sales Style from Situation to
Introduction to Contemporary Selling 5
Situation 37
A Model for Contemporary Selling 5
Tenacity—Sticking with a Task 37
Building Relationships, Creating Value 6
Well Organized 37
Understanding Sellers and Buyers 10
Verbal Communication Skills 37
Ethics 10
Proficiency in Interacting with People at All Levels
Technology 11
of a Customer’s Organization 37
Selling Process 12
Demonstrated Ability to Overcome Objections 38
Sales Management 13
Closing Skills 38
Issues Outside the Circles: The Global Personal Planning and Time Management Skills 38
Selling Environment 15
Selling Activities 38
Internal Environment 15
Types of Selling Jobs 40
External Environment 17
Selling in B2C versus B2B Markets 41
Expert Advice: Follow-up 20 Types of B2B Sales Jobs 41
Summary 21
Participants in the Organizational Buying
Key Terms 21
Process 42
Role Play 21
Selling Centers and Buying Centers 44
Discussion Questions 23
Mini-Case 1: Creekside Outdoor Gear 24 Organizational Buying Decision Stages 45
Appendix: Additional Information on Role Stage One: Anticipation or Recognition of a
Plays 25 Problem or Need 45
viii TABLE OF CONTENTS
Stage Two: Determination and Description of the Key Terms 69
Traits and Quantity of the Needed Item(s) 46 Role Play 70
Stage Three: Search for and Qualification of Discussion Questions 71
Potential Suppliers 47 Mini-Case 3: BestValue Computers 71
Stage Four: Acquisition and Analysis of Proposals Appendix: Selling Math 73
or Bids 47
Stage Five: Evaluation of Proposals and Selection CHAPTER 4
of Suppliers 47 ETHICAL AND LEGAL ISSUES IN
Stage Six: Selection of an Order Routine 48 CONTEMPORARY SELLING 83
Stage Seven: Performance Evaluation and
Learning Objectives 83
Feedback 48
Expert Advice: David B. Edmonds 84
Types of Organizational Buying Situations 49 The Importance of Ethics in the 21st
Expert Advice: Follow-up 49 Century 85
Summary 50 Renewed Emphasis on Ethical Practices 85
Key Terms 50 Companies Take the Lead in Social Responsibility 86
Role Play 51
Ethical Concerns for Salespeople 86
Discussion Questions 52
Issues with Customers 88
Mini-Case 2: National Agri-Products
Issues with Employers 90
Company 52
Ethical Concerns for Management 91
CHAPTER 3 Issues with Salespeople 92
VALUE CREATION IN BUYER–SELLER Issues with Company Policies 92
RELATIONSHIPS 55
Legal Issues in Contemporary Selling 95
Learning Objectives 55
Uniform Commercial Code: The Legal Framework
Expert Advice: Howard Stevens 56
for Selling 95
Adding Value Is “Marketing 101” 57
Unlawful Business Activities 96
Role of Selling in Marketing 57
A Code of Sales Ethics 98
Role of Marketing in Selling 59
Corporate Code of Ethics 98
Clarifying the Concept of Value 59
Individual Code of Sales Ethics 99
Value Is Related to Customer Benefits 59
The Value Chain 60 Expert Advice: Follow-up 102
The Lifetime Value of a Customer 61 Summary 102
Key Terms 103
Communicating Value in the Sales Message 62
Role Play 103
Product Quality 63
Discussion Questions 104
Channel Deliverables (Supply Chain) 64
Mini-Case 4: Health Sense Pharmaceuticals 106
Integrated Marketing Communications (IMC) 64
Synergy between Sales and Marketing 64
CHAPTER 5
Execution of Marketing Mix Programs 65
CRM AND SALES TECHNOLOGIES 109
Quality of the Buyer–Seller Relationship (Trust) 65
Service Quality 65 Learning Objectives 109
Salesperson Professionalism 67 Expert Advice: Gerhard Gschwandtner 110
Brand Equity 67 What Is Customer Relationship
Corporate Image/Reputation 67 Management (CRM)? 111
Application of Technology 67 From Mass Marketing to One-to-One Marketing 112
Price 67 CRM Process Cycle 114
Toward a Relationship-Based Enterprise 115
Managing Customer Expectations 69
Expert Advice: Follow-up 69 The Technology of Selling 115
Summary 69 A Peek at Historical Sales Technology 118
TABLE OF CONTENTS ix
Sales Technology in the Informational Decade 120 Role Play 150
Gaining Technology Acceptance by Salespeople 125 Discussion Questions 150
Mini-Case 6: Strong Point Financial
Expert Advice: Follow-up 126
Services 151
Summary 126
Appendix: Sales Proposals 153
Key Terms 126
Discussion Questions 127
CHAPTER 7
Mini-Case 5: Who “Owns” CRM 127
COMMUNICATING THE SALES MESSAGE 157
PART TWO Learning Objectives 157
ELEMENTS OF THE CONTEMPORARY Expert Advice: David B. Edmonds 158
SELLING PROCESS 129 Communicating the Sales Message 159
Getting Ready for a Sales Presentation 159
CHAPTER 6 Characteristics of a Great Sales Presentation 159
PROSPECTING AND SALES CALL Sales Presentation Strategies 161
PLANNING 131
Setting Objectives and Goals 163
Learning Objectives 131 Approach the Customer: Initiating the
Expert Advice: Walter Friedman 132 Relationship 164
Prospecting: Customers Don’t Start Out as Tips for Making a Good First Impression 164
Customers 133 Approach Strategies 166
Qualifying the Prospect 133
The Sales Presentation: Building the
Why Prospecting Is So Important 137
Relationship 168
Sources of Prospects 137 Identify Customers’ Needs 168
Loyal Customers 138 Listen 171
Endless Chain Referrals 138 Apply Your Knowledge to Customer Needs 173
Networking 139 Satisfy Customer Needs 174
Directories 140
Keys to a Great Sales Presentation 175
Internet 140
Demonstrations 175
Telemarketing 141
The Value Proposition 178
Written Correspondence 142
Nonverbal Communication 179
Trade Shows 143
What to Do When Things Go Wrong 180
Conferences 143
Cold Calls and Warm Calls 143 The Sales Manager’s Role in the Sales
Other Issues in Sourcing Prospects 144 Presentation 181
Managers Are Essential to a Great Presentation 183
Set a Systematic Prospecting Plan 144
Providing the Tools for Success 183
Make the Best Use of CRM in Prospecting 145
Resist Call Reluctance 145 Expert Advice: Follow-up 183
Summary 183
Planning the Sales Call: The Preapproach 145
Key Terms 184
Establish Goals for the Initial Sales Call 146
Role Play 184
Learn All You Can about the Prospect 146
Discussion Questions 186
Plan to Portray the Right Image 147
Mini-Case 7: Bright Colors Paint 187
Determine Your Approach 148
Prepare a Sales Proposal 148
CHAPTER 8
The Sales Manager’s Role in Prospecting
NEGOTIATING FOR WIN-WIN
and Sales Call Planning 148
SOLUTIONS 191
Expert Advice: Follow-up 149
Summary 149 Learning Objectives 191
Key Terms 149 Expert Advice: Tom Kadien 192