Fundamentals of Selling

688 Pages·2011·114.739 MB·English

by  Charles Futrell

Fundamentals of Selling
Customers for Life Through Service
TWELFTH EDITION
CHARLES M. FUTRELL
Texas A & M University
ALS OF SELLING: CUSTOMERS FOR LIFE THROUGH SERVICE
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w Y , 10020. Cop
1984 by The McGraw-Hill Companies, Inc.
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vailable to customers outside the
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This book is printed on acid-free paper.
ISBN 978-0-07-352999-8
MHID 0-07-352999-0
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Paul Ducham
Executive director of development: Ann Torbert
velopment editor: Laura Hurst Spell
Editorial coordinator: Jonathan Thornton
Vice president and director of marketing: Robin J. Zwettler
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Typeface: 10/12 Times New Roman
Compositor: ds Private Limited

p. cm.
Includes index.
ISBN-13: 978-0-07-352999-8 (alk. paper)
1. Selling. I. Title.
HF5438.25.F87 2011
2010038114
www.mhhe.com
To my Father, who calls us all to a life of unselfish love
for all people of our world.

ABOUT THE AUTHOR
eting in the Mays eting Honor Society, recognized Charles for e
Business School at Texas A&M University in College Station, scholarly contributions to the sales profession in 2000. This is
Texas. Texas A&M University has approximately 45,000 stu- wed since
dents with 5,000 business majors and 800 marketing majors. its creation in 1988. Charles w -
Dr. Futrell has a B.B.A., M.B.A., and Ph.D. in marketing. He keting Executives International’s (SMEI) Educator of the Year
. Before beginning his in 2007. Among many other things, SMEI founded Pi Sigma
, Professor Futrell work et- Epsilon (PSE), the only national, co-educational, professional
ing capacities for eight years with the Colgate Company, The eting, sales management, and selling. PSE
Upjohn Company, and Ayerst Laboratories.
Dr. Futrell’ 1997 to August 2007, he w -
ment, research methodology, and marketing management has keting Studies at Texas A&M University.
In the spring of 2001, Dr. Futrell was chosen as a Fish
such as the Journal of Marketing and the J eting Camp (Texas A&M University’s Freshman Orientation Camp)
Research. Journal of Namesake. Fish Camps are named after faculty members who
Personal Selling & Sales Management rank have made a significant impact on Texas A&M, and nomina-
the top three sales researchers in America. He was also recog- tions for the award are made by students, which makes it a very
nized in Marketing Education, Summer 1997, as one of the top ac-
eting discipline. His work has ulty adviser for Impact, a four-day Christian summer camp for
veral research awards. entering freshmen involving 1,000 freshmen and 300 advis-
Presently Charles is conducting research on how faith relates ers. Charles was on the leadership team of TAMU’s officially
to salespeople’s organizational behavior. He also is investigat- recognized Christian Faculty Network of ov
ing how students’ faith helps them cope with the tremendous Finally, in 2010 Charles was selected by students to represent
stresses experienced in college life. For his work, faith relates Texas A&M as Guest Coach for the baseball game against the
to any and all faiths of the world. Professor Futrell, as well as University of Texas.
others, feels there is a mental health crisis on America’s col- Dr
lege campuses as well as in America’s general population. Read for the college and professional audience. Two of the most
the newspaper and watch television for proof of the stresses Fundamentals of Selling: Customers for
xperiencing in their lives and the often devastat- Life thr , twelfth edition, and A BC’s of Relation-
ing impact it has on their lives and the lives of others. Please ship Selling thr , twelfth edition, both published
contact him if you would like to work in either of these two by McGra These books are used in hundreds of
areas. He would love to help you investigate these two under- er 300,000 students
ge, no matter what worldwide have s books.
orld. In 1997 Dr. Futrell began using his Web site and group
Professor Futrell served as the eting Asso- e-mails in his sales classes. Students sign up for both a lecture
ciation’ period and lab time. In each semester’s six labs, students are
. He was videotaped in activities such as making a joint sales call, panel
as elected interview, selling oneself on a job interview, product sales pre-
s 1998–99 term. In 2005, this sentations, and v xperiential exercises.
AMA group presented Charles with its Lifetime Achievement Professor Futrell’
Aw xcellence and service in the area on his extensive work with sales organizations of all types and
of sales. In 1999, the Association of F w sizes.
him the Lo ge and Graduate School of Business invited to be a frequent speaker, researcher, and consultant to
Distinguished Teaching Award. Mu Kappa Tau, the National .
v

PREFACE
Welcome to the T product. Arguably, no other personal selling textbook presents
of Fundamentals of Selling a sales process or system in a logical sequence: from planning
and the approach, to closing and follow-up for exceptional cus-
A megatrend in today’s business world involves going to
e ganizations cannot
comment on how this te y do on sales
afford to lose customers. It is always easier to sell to a satisfied
calls with prospects and customers. The goal of Fundamentals
w
of Selling has always been to demonstrate to students the order
customer is higher than keeping a present customer.
of steps within the selling process; provide numerous examples
Obtaining new customers and retaining present ones are the
of what should be in each step; and how the steps within the
main challenges of salespeople. Increase in sales and profits
selling process interact with one another. If a student under-
is up to the sales personnel—the people who represent their
employers through interacting with present or prospective cus-
uted to their education.
ve usiness
Fundamentals of Selling et leader in sales classes
relationship, which implies that personal relationships with cli-
worldwide, and its materials can be found in four international
ant to buy from someone who
v
usiness with the people they

trust, and they trust the people they know.
This te
exceptional customer service. Service means making a contri-
bution to the welf xist to help others. The Uniqueness of Fundamentals of Selling
The appendix to Chapter 1: “The Golden Rule of Personal Sell-
ing as Told by a Salesperson,” reveals this textbook’s unique
New Additions, Expansions, and
. To aid in this mes-
Reexaminations to This Edition
sage, the acclaimed worldwide Golden Rule w
Using this textbook each year in my sales classes has resulted in in order to stress treating others as you would like to be treated
xt by students who provide feedback on etplace and workplace.
its content. Present users of the textbook have The textbook’ -
critiques providing direction for revision of the book, as have nerstone is love (caring) of others. Fundamentals of Selling ’s
the reviewers noted in the wledgments. The relationships values are supported by the pillars of an organization’s—and
and interactions in the v ve individual’s—inte
been carefully e w from Exhibit 3.13). The center of business and personal life revolves
one chapter to the next, and special emphasis is placed on the xt-
importance of ethical behavior in w
customers. Other changes include: b
Fundamentals of Selling seeks to prepare people for the 21st
■ Many examples with some illustrated using new photographs.
century’s demand for moral and ethical treatment—a universal
■ New videos, including national companies such as Johnson
& Johnson and Hormel.
than what previously exists in many organizations worldwide.
■ Updates in the Po
that humans possess reason and conscience and should act
■ A careful reading. toward one another in a spirit of brotherhood. Organizations
should not be engaged in w etplace, but com-
Fundamentals of Selling trains readers on a specific, yet
generic, step-by-step selling process that is universal in nature. Man
y business life. Some individuals, when entering the business
vii
viii Preface
world, tend to follow the example of others to generate sales. Basic Organization of the Book
xtbook in your classroom may provide some
The publisher and I worked hard to ensure that F undamentals
w to enter the rat
of Selling would provide students with the basic foundation for
race without becoming a rat.
The 17 chapters in
the text are di
Fundamentals’ Approach ■ Selling as a Profession. Emphasizes the history ,
rewards, and duties of the professional salesperson and illus-
Fundamentals of Selling was conceived as a method of pro-
trates the importance of the sales function to the organiza-
viding ample materials that allow readers to construct their
tion’s success. It also e gal
own sales presentations after studying the text. ws
issues in selling.
xibility of focusing on the “how-to-sell”
vering the basic founda- ■ Preparation for Relationship Selling. Presents the back-
velop their sales
a practical, straightforw , it provides presentations.
students with a guide to use in preparing sales presentations and ■ The Relationship Selling Process.
role-playing exercises. v
to follo gies, practices,
w-to” fashion.
The Philosophy behind This Book
■ Managing Yourself, Your Career, and Others. The impor-
tance of the proper use and management of one’s time and
book. A student of sales should understand the fundamentals— ven thorough coverage. Two chapters
the basics—of personal selling. All of them. I do not advocate cov or many
one way of selling as the best route to success! y students, this is their only exposure to what a sales manager
roads to reaching one’s goals. does in this challenging job.
I do feel a salesperson should have
wledgeable, even an e
Special to This Edition
appropriate actions to tak .
Expanded Emphasis. Unselfish and ethical service to the
No matter what the situation, however, the basic fundamentals
customer underscores the Golden Rule of Personal Selling—a
of selling can be applied.
ould like
There is no place in our society for high-pressure, manipula-
to be treated without expecting reciprocity. w to build
tive selling. The salesperson is a problem solver, a helper, and
long-term relationships with customers.
an adviser to the customer. If the customer has no need, the
salesperson should accept that and move on to help another per-
The Tree of Business Life Icon. Beginning with Chapter 3,
son or firm. If the customer has a need, however, -
The T
All successful salespeople I
This theme emphasizes that
by pro uild true relationships. This
buy someone’s product—and that their product will satisfy that
section was developed in hopes of having the reader consider
customer’s needs—it is their job to muster all their energy
how a salesperson w
w-ho That is what it’s all about!
chapter’s topic.

book, he or she will say, “There’s a lot more to selling than I The Golden Rule icon appears in
ever imagined.” I hope many people will feel that this material each chapter to help reinforce the Tree of Business Life. The
ving and that selling is a great occupation combination of the Golden Rule and the “Tree” guidelines
. for b xtbook.
ve ould like
ve ,
verbally, and nonv w
of no other marketing course whose class project is so challeng- think about it, this is how you build true personal friendships.
es place. Why not build your b
Finally, I hope each student realizes that these new commu-
Comprehensive Cases. At the end of the book are compre-
hensive sales cases. These cases approach sales from the
broader sales management perspective.
Preface ix
V Cases. Cases 3.1, 3.2, 5.3, 6A.5, 8.3, 11.3, 13.4, and Photo Essays. y photographs accom-
14.3 can be used independently or with eight of the videos panied by captions that describe sales events and how they
accomp anying this book. Each of the eight cases highlights a
aced by sales personnel in today’s
com petitive marketplace. Use any or all of these cases to Chapter T es. Each chapter begins with a
ves and an outline of major
chapter topics. These devices provide an overview of what is
Sales Call Role-Plays and V y
role-plays in Appendix A at the back of this book have videos understand and have retained important points.
The two people
featured in the three role-plays completed my selling course. Sales Challenge/Solution. The text portion of each chapter
be ace. The
by hundreds of students, these role-plays are created from students’ interest in chapter concepts. The challenge is resolved
s top sales forces. at the end of the chapter, where chapter concepts guiding the

Sell Yourself on a J . av
play is in xercises. For Making the Sale. These boxed items explore how salespeople,
ve used this student pleaser in both my personal selling when faced with challenges, use innovative ideas to sell.
and sales management classes. es
on video they quickly realize what needs to be done for a Selling Tips. These box
w. You have xercise one time! tips for use in developing their role-plays.
Student ercises (SALES). Chapters Artwork. Many aspects of selling tend to be confusing at
directly related to creating the role-play have SALES that aid first. “What should I do?” and “How should I do it?” are two
students in better understanding ho questions frequently asked by students in developing their
class project. all of role-plays. To enhance students’ aw
1997. Students unanimously felt they were great in helping y exhibits have These
exhibits consolidate key points, indicate relationships, and
end of Chapters 4, 6A, 8, 10, 11, 12, and 13. visually illustrate selling techniques.
Sales Careers. xpanded Application Questions. Each chapter
ey points to be retained. The
jobs in all organizations—b
enables students to check their understanding of key issues, to
Selling Exercises. These end-of-chapter exer-
cises help students to better understand themselv . The summary and application questions help
te y can be done in class or completed outside
and discussed in class. pro
Selling Globally Appendix. Many of these situations were Key Terms f . Learning the selling voca-
b s sales world. This is
world. The f ays. First, ke
xt. Second,
Technology in Selling. A central theme within each chapter each key term, followed by the page number where it was first
shows the use of technology and automation in selling and .
e

T
Ethical Dilemma. These challenging exercises provide stu-
xperience ethical dilemmas faced
fer in the selling job. Students should revie
better ways of using it to convey sales knowledge to the reader. e vior in Chapter 3 before discussing
To do this, the book includes numerous special features:
x Preface
Further Exploring the Sales World. These projects ask ProSelling Videos. Several hours of student role-plays, exer-
students to go beyond the textbook and classroom to explore cises, e
what’s happening in the real world. Projects can be altered programs show students how to prepare their own role-plays,
and how textbook content relates to the sales world. Several of
objectives for the class. the student’s video role-plays were produced especially for this
book. They take people through the 10-step selling process.
Cases for Analysis. Each chapter ends with brief but sub-
stantive cases for student analysis and class discussion. These Instructor’s Manual. Loaded with ideas on teaching the
cases pro
to real ev ev s Manual is a
problem solving. Comprehensive cases are found in the back large, comprehensive time-saver for teachers.
of the book.
As you see, the publisher and I have thoroughly considered Test Bank.
how best to present the material to readers for maximizing their is the Test Bank. We gave the Test Bank special attention
interest and learning. Teacher, reviewer, and student response to during the preparation of the twelfth edition because instructors
this revision has been fantastic. They are pleased with the read- desire test questions that accurately and fairly assess student
ability, reasonable length, depth, and breadth of the material. The Test Bank provides
You will like this edition better than the previous one. hundreds of multiple-choice and true/false questions. Each
question has been rated for level of difficulty and designated
with page number in the te
Teaching and Learning Supplements vide a balanced set of questions for student
McGra xpense to make F unda- exams.
mentals of Selling the premier text in the market today. Many
Course Web Site. At h ttp://www ell11e, you
can access downloadable v
vide a way to expand and improve the
as specif- rials, as well as a student tutorial and student self-assessment
ically designed to meet the needs of instructors facing a v quizzes.
eteran ■ A PowerPoint Presentation. A state-of-the-art program
. offering hundreds of lecture slides. These slides can be cus-
tomized for any course. They are great!
Professor Futrell—Your Number One Resource. Contact
■ Computerized Test Bank. The Computerized Test
me an ”
allows instructors to select and edit test items from the
printed Test Bank and to add their own questions. V
worldwide contact me each year. If you are teaching the course,
versions of each test can be custom printed.
ant me to look over your
syllabus, I am here to serve. ■ Electronic Version of the Instructor’s Manual