Evolution of Selling Models: Complementing the Marketing Concept and Value Creation

This chapter explores the significant evolution of personal selling models, demonstrating how they have adapted and expanded to align with the overarching marketing concept. It delves into the progression from traditional sales approaches to more sophisticated strategies like consultative selling, strategic selling, and partnering, all aimed at enhancing customer value and achieving organizational goals. The core principle guiding this evolution is the marketing concept, which places customer needs and satisfaction at the forefront of business operations.

The Marketing Concept and Its Impact on Selling Models

The foundation for modern selling models is the marketing concept, a fundamental principle asserting that an organization's success hinges on its ability to identify and satisfy the needs and wants of its target markets, subsequently delivering desired products or services. This concept represents a paradigm shift from a product-centric view to a customer-centric one, where customer focus and the provision of value are recognized as the primary drivers of sales and profitability. Consequently, customer satisfaction becomes an objective of paramount importance.

Personal selling, by its very nature, involves the discovery and delivery of solutions tailored to customer needs. This inherent alignment makes personal selling a consistent and vital extension of the marketing concept. As the marketing landscape has evolved, so too have the models of personal selling, each iteration building upon the previous to better serve the customer and integrate with broader marketing strategies.

Evolution of Personal Selling Eras

The trajectory of personal selling has seen several distinct eras, each characterized by a particular emphasis in both sales and marketing, as well as specific selling approaches:

Marketing Era Begins (1950s):
- Sales and Marketing Emphasis: During this period, organizations began to systematically determine the needs and wants of their target markets. This led to a fundamental shift where companies adapted their operations to deliver desired satisfaction, effectively replacing a product-oriented approach with a customer-oriented one.
- Selling Emphasis: Concurrently, more organizations started to recognize the crucial role of the salesperson. Salespeople were increasingly seen as valuable conduits for collecting vital information regarding buyer needs, encompassing product preferences, market trends, and service requirements.
Consultative-Selling Era Emerges (Late 1960s to Early 1970s):
- Sales and Marketing Emphasis: This era witnessed salespeople transforming into diagnosticians of customer needs. They evolved into consultants, offering carefully considered recommendations rather than merely pushing products. This period also saw the fragmentation of mass markets into more specific target markets, necessitating more tailored approaches.
- Selling Emphasis: The identification of buyer needs became a collaborative process, primarily achieved through two-way communication between the salesperson and the buyer. This marked a significant departure from older methods, as information giving and negotiation tactics began to replace manipulative sales practices.
Strategic-Selling Era Emerges (Early 1980s):
- Sales and Marketing Emphasis: The selling environment grew increasingly complex, with a greater emphasis on identifying and serving specific market niches. This complexity necessitated a more structured approach to selling, placing a heightened importance on strategic planning.
- Selling Emphasis: In this era, strategy gained as much attention as selling tactics. Salespeople began to focus more on product positioning within the market. There was also a growing emphasis on sophisticated account management and the adoption of team selling approaches, recognizing that complex sales often required multiple perspectives and expertise.
Partnering Era Emerges (1990 to the Present):
- Sales and Marketing Emphasis: The current era encourages salespeople to view every interaction and action through the lens of building long-term, high-quality partnerships with individual customers. The advent of sales force automation tools provided salespeople with specific customer information, enabling more personalized and effective engagement.
- Selling Emphasis: In this era, the customer unequivocally supplants the product as the driving force in sales. There is a significantly greater emphasis on developing strategies that actively create and deliver customer value. Furthermore, adaptive selling—the ability to alter sales behaviors during interactions to improve communication and effectiveness—is given increased importance.

The Marketing Mix

The marketing mix represents the combination of controllable, tactical marketing tools that a firm employs to influence demand for its product. It is a program built upon the marketing concept and comprises four key groups of variables, often referred to as the "Four Ps":

Product: This includes the goods and services the company offers, encompassing features, quality, design, branding, and packaging.
Price: This refers to the amount of money customers must pay to obtain the product, including pricing strategies, discounts, allowances, and payment terms.
Place (Distribution): This involves the company's activities that make the product available to target consumers, such as channels, coverage, logistics, and transportation.
Promotion: This covers activities that communicate the merits of the product and persuade target customers to buy it, including advertising, personal selling, sales promotion, and public relations.

For any marketing program to achieve its desired results, each element of the marketing mix must be executed effectively and in a coordinated manner. Personal selling, as a crucial component of the promotion mix, plays a direct role in influencing demand and delivering value to customers.

Evolution of Consultative Selling

The consultative selling model emerged as a direct extension of the marketing concept, marking a significant shift in how salespeople interacted with customers. This approach fundamentally emphasizes need identification, positioning the salesperson not merely as a vendor but as a trusted consultant. The core principle is to engage in negotiation rather than manipulation, fostering a more ethical and productive sales environment.

Salespeople who successfully adopt consultative selling principles and build strong partnering relationships are consistently rewarded with repeat business and valuable referrals. This success underscores the necessity of a strategic approach to selling, moving beyond transactional interactions to cultivate lasting customer loyalty.

The Consultative Sales Presentation Guide

Consultative selling typically involves a structured, four-step process designed to prioritize the customer's needs and provide tailored solutions. This guide emphasizes serving the customer as an individual:

Need Discovery: This initial phase involves actively listening to the prospect and asking probing questions to thoroughly understand their specific needs, challenges, and objectives. It's a diagnostic process where the salesperson acts as an investigator.
Selection of a Solution: Based on the identified needs, the salesperson then selects or configures the most appropriate product or service solution from their offerings. This step requires deep product knowledge and the ability to match features to benefits.
Need-Satisfaction Presentation: In this stage, the salesperson presents the chosen solution, clearly articulating how it addresses the customer's specific needs and delivers tangible benefits. The presentation is customized and focuses on value.
Servicing the Sale: This final step extends beyond the initial transaction, encompassing post-sale activities such as ensuring proper implementation, providing ongoing support, addressing any issues, and maintaining communication to ensure continued customer satisfaction and foster long-term relationships.

Major Features of Consultative Selling

Consultative selling is characterized by several key features that differentiate it from more traditional sales approaches:

Customer as a Person to Be Served: The primary focus is on the individual customer, recognizing their unique situation and aiming to provide genuine assistance rather than simply making a sale.
Buyer’s Needs Identified Through Two-Way Communication: Effective communication is central, involving active listening, questioning, and dialogue to uncover and confirm customer needs. It's a collaborative process.
Emphasis on Need Identification, Problem Solving, and Negotiation: The salesperson's role shifts to diagnosing problems, proposing solutions, and engaging in fair negotiation to reach mutually beneficial agreements.
Emphasis on Service at Every Phase of the Personal-Selling Process: Service is not an afterthought but an integral part of the entire sales cycle, from initial contact through post-sale support, ensuring a positive customer experience at all touchpoints.

This approach demands a high level of skill and commitment from sales personnel, requiring an understanding of principles from psychology, communications, and sociology. Becoming a successful sales consultant or adviser necessitates significant personal commitment and self-discipline.

Evolution of Strategic Selling

The emergence of strategic selling reflects a more sophisticated and planned approach to sales, recognizing that success in complex markets requires more than just effective tactics. Strategic planning is defined as the systematic process of aligning a firm’s internal resources with its external market opportunities. While tactics refer to the specific techniques, practices, or methods employed in a sales interaction, strategies are the overarching plans that serve as prerequisites for tactical success. Therefore, selling strategies are comprehensive plans designed to achieve specific sales objectives.

A key component of strategic selling is adaptive selling, which involves the ability to modify sales behaviors and communication styles during interactions to enhance understanding and effectiveness. Strategic selling is deeply rooted in a company’s broader strategic market plan, which integrates and coordinates all major functional areas of the business, including production, marketing, finance, and personnel. This holistic view ensures that sales efforts are aligned with the company's overall objectives and capabilities.

Ideally, modern selling incorporates both a consultative role—focused on understanding and solving customer needs—and strategic planning—focused on long-term objectives and market positioning. This integration forms the basis of the Strategic/Consultative Selling Model.

The Strategic/Consultative-Selling Model

The Strategic/Consultative-Selling Model is an advanced framework that extends the marketing concept into a structured approach for personal selling. It evolved in response to increasing market competition, the growing complexity of products and services, a heightened emphasis on understanding and meeting customer needs, and the increasing importance of cultivating long-term customer relationships. This model features five interconnected steps, each underpinned by specific prescriptions:

Develop a Personal-Selling Philosophy: This foundational step, introduced in Chapter 1, sets the mindset for the salesperson. Its three core prescriptions are:
- Adopt the Marketing Concept: Internalize the belief that customer satisfaction is paramount.
- Value Personal Selling: Recognize the critical role and value of personal selling in the overall business strategy.
- Become a Problem Solver/Partner: Shift from a transactional mindset to one focused on identifying and solving customer problems, acting as a trusted partner.
Develop a Relationship Strategy: This strategy focuses on building and maintaining strong, ethical relationships.
Develop a Product Strategy: This involves making informed decisions about product selection and positioning.
Develop a Customer Strategy: This centers on understanding and responding effectively to customer needs.
Develop a Presentation Strategy: This involves planning and executing effective sales presentations.

Each of these four subsequent steps represents a broad strategic area of personal selling, making a unique and important contribution to the overall selling and buying process. The model emphasizes that these strategies are not independent but are interconnected, all ultimately aiming to satisfy customer needs and build high-quality partnerships.

Major Strategies Forming the Strategic/Consultative-Selling Model

The Strategic/Consultative-Selling Model is built upon four core strategies that emanate from a personal-selling philosophy. These strategies are designed to work in concert, with the ultimate goal of partnering to create value for the customer. The model can be visualized as concentric circles, with "Partnering to create value" at the center, surrounded by "Ethics," and then the four strategies, all resting on a "Personal selling philosophy."

1. Develop a Relationship Strategy

A relationship strategy is a meticulously planned approach for establishing, nurturing, and sustaining high-quality relationships with customers. It is an indispensable component of relationship selling, which is a form of personal selling specifically focused on securing, developing, and maintaining these long-term connections. The prescriptions for developing an effective relationship strategy include:

Maintain High Ethical Standards: Upholding integrity and honesty in all interactions is fundamental to building trust and credibility, which are cornerstones of any strong relationship.
Project Professional Image: Presenting oneself in a professional manner, both in appearance and conduct, conveys competence and respect, reinforcing the customer's confidence in the salesperson.
Manage the Relationship Process: This involves actively nurturing the relationship over time, understanding its dynamics, and taking proactive steps to strengthen it, moving beyond individual transactions.

2. Develop a Product Strategy

A product strategy is a comprehensive plan that guides salespeople in making accurate decisions regarding the selection and strategic positioning of products to effectively meet identified customer needs. This strategy moves beyond simply knowing product features to understanding how those features translate into customer benefits and value. The prescriptions for developing a robust product strategy are:

Become a Product Expert: Possessing in-depth knowledge of the products or services offered, including their technical specifications, applications, and competitive advantages, is crucial.
Sell Benefits: Instead of merely listing features, salespeople must articulate how those features provide specific advantages and solutions to the customer's problems or needs. This involves a feature-benefit analysis approach.
Configure Value-Added Solutions: Beyond individual products, the salesperson should be able to combine various products, services, and support elements to create complete, customized solutions that deliver enhanced value to the customer.

3. Develop a Customer Strategy

A customer strategy is a meticulously crafted plan designed to maximize responsiveness to the unique needs of each customer. This strategy underscores the importance of gaining a deep understanding of the prospect. The prescriptions for developing an effective customer strategy include:

Understand the Buying Process: Gaining insight into how customers make purchasing decisions, including their decision-making stages, criteria, and key stakeholders, allows the salesperson to align their efforts accordingly.
Understand Buyer Behavior: This involves comprehending the psychological, social, and personal factors that influence a buyer's choices, enabling the salesperson to tailor their approach and communication.
Develop Prospect Base: Systematically identifying and qualifying potential customers who are likely to benefit from the offerings is essential for efficient and effective sales efforts. This involves continuous learning about the prospect.

4. Develop a Presentation Strategy

The presentation strategy is a well-structured plan for achieving specific objectives during each sales call. It ensures that every interaction with the customer is purposeful and contributes to the overall sales process. The prescriptions for developing a compelling presentation strategy are:

Prepare Sales Presentation Objectives: Before each sales call, clear and measurable objectives must be established, guiding the content and direction of the presentation.
Prepare Presentation Plan: A detailed plan outlining the structure, key messages, visual aids, and anticipated customer responses helps ensure a smooth and impactful delivery.
Renew Commitment to Customer Service: The presentation should not only focus on the product but also reinforce the salesperson's dedication to providing outstanding service throughout and after the sale, strengthening the customer relationship.

Evolution of Partnering and Strategic Account Management

Partnering represents the pinnacle of modern selling, defined as a strategically developed, long-term relationship specifically designed to solve the customer’s problems. A successful long-term partnership is forged when the salesperson adeptly applies the four major strategies (relationship, product, customer, and presentation) to consistently add value in various ways. This continuous addition of value strengthens the partnership with each interaction, leading to significant benefits for both parties.

The benefits of a successful partnering effort are substantial, primarily manifesting in repeat sales and referrals. These outcomes not only generate ongoing revenue but also expand the salesperson's prospect base, creating a virtuous cycle of growth and loyalty. The strength and longevity of the partnership are directly correlated with the salesperson's consistent use of value-added selling strategies.

Visually, the concept of partnering can be illustrated as a progression where the length of the partnership (horizontal axis) correlates with increasing sales results from value-creating strategies (vertical axis). This progression moves from initial sales to repeat sales, and then to successive sales, with each stage demonstrating a higher volume of sales, indicating the cumulative benefit of a strong partnership.

Strategic-Selling Alliances—The Highest Form of Partnering

The most advanced form of partnering is the establishment of strategic-selling alliances, often referred to as strategic account management. The primary goal of such an alliance is to gain a marketplace advantage by collaborating with another company whose products or services complement one's own. These alliances are typically led by specialized account managers, reflecting the senior nature and strategic importance of these roles within most firms. These positions are often aspirational for entry-level salespeople who aim to master the strategic/consultative skills presented in this framework.

Various titles are used to describe these account management roles, each indicating a different scope of responsibility:

Strategic Account Manager (SAM): Responsible for managing the most critical and strategically important customer accounts.
Regional Account Manager (RAM): Manages key accounts within a specific geographic region.
Key Account Manager (KAM): Focuses on a select group of high-value customers.
National Account Manager (NAM): Oversees accounts that operate across an entire country.
Global Account Manager (GAM): Manages accounts that have a worldwide presence, requiring international coordination.

Strategic account management is an enterprise-wide initiative that seeks to develop strategic partnering relationships with a limited number of key customers. Its focus is on achieving long-term, significant, and measurable business outcomes for both the selling and buying organizations.

Building Strategic Account Relationships

Building a strategic account relationship is a structured process that requires careful planning and execution:

Learn About Proposed Partner: Before any direct engagement, the Strategic Account Manager (SAM) must conduct thorough research to understand the potential partner's business, objectives, challenges, and culture.
Meet with Proposed Partner and Explore Benefits of the Alliance: Initial meetings are crucial for open dialogue, where both parties can discuss their needs and explore how a collaborative alliance could create mutual benefits.
Focus on Profit Impact and Strategic Alliance Benefits: The presentation to the potential partner should clearly articulate the tangible profit impact and broader strategic advantages that the alliance would bring to their organization.

Partnering is further enhanced by two critical factors:

High Ethical Standards: Upholding strong ethical principles is paramount for building and maintaining trust, which is the bedrock of any successful long-term partnership.
Customer Relationship Management (CRM) Software: Adopting CRM software (sometimes referred to as "sales automation") provides a systematic means for building and maintaining robust customer relationships. This technology helps manage customer data, track interactions, and identify opportunities to add customer value, thereby strengthening the partnership.

Value-Added Selling Strategies

Value-added selling has emerged as a crucial response to the demands of the modern customer economy. It is defined as a series of creative improvements that collectively enhance the customer’s experience. In the information economy, salespeople who possess the requisite skills, knowledge, and motivation to identify and create value at every stage of the sales process are highly rewarded. The salesperson's role in value creation is integral and can be understood through a four-step model:

Creating and Delivering Customer Value Model

Understanding Customer’s Value Needs:
- Description: Value creation fundamentally begins with a deep and accurate understanding of what the customer truly values. Salespeople can create value in numerous ways, but none are possible without first comprehending the specific needs, priorities, and desired outcomes of the customer. This requires active listening, insightful questioning, and thorough research.
- Importance: Without this foundational understanding, any attempts to add value may be misdirected or irrelevant to the customer's actual situation.
Creating the Value Proposition:
- Description: Once customer value needs are understood, the next step is to craft an appealing value proposition. This involves studying the customer's specific value requirements and then configuring a solution (products, services, support, and expertise) that directly addresses those needs in a compelling manner. It's about demonstrating how the proposed solution will deliver superior benefits and solve their problems.
- Importance: A well-crafted value proposition clearly articulates the unique benefits and advantages the customer will receive, differentiating the offering from competitors.
Communicating the Value Proposition:
- Description: Even the most compelling value proposition is ineffective if it is not communicated clearly, persuasively, and effectively to the customer. This step involves articulating the benefits, demonstrating the solution, and addressing any concerns or objections the customer may have. It requires strong communication and presentation skills.
- Importance: Effective communication ensures that the customer fully grasps the potential value and how it applies to their specific context.
Delivering the Value Proposition:
- Description: The final and critical step is the actual delivery of the promised value. While sometimes beyond the direct control of the salesperson (e.g., involving logistics or product performance), ensuring that the customer receives the value as promised is paramount for establishing and maintaining long-term relationships. This includes post-sale support, follow-up, and problem resolution.
- Importance: Consistent and reliable delivery of value builds trust, fosters customer loyalty, and is essential for securing repeat business and referrals.

Each element of the entire selling process, from initial contact to post-sale service, provides the salesperson with a distinct opportunity to add value for their customers. By consistently focusing on these four steps, salespeople can significantly enhance the customer experience and solidify their role as trusted partners.

Conclusion and Key Learnings

The evolution of personal selling models is a testament to the dynamic nature of the marketplace and the increasing centrality of the customer. From the foundational marketing concept to the sophisticated strategies of partnering and value-added selling, each development has aimed to create more effective, ethical, and customer-centric sales approaches.

The Marketing Concept: At its core, the marketing concept dictates that a firm's entire operations, planning, and policies should be dedicated to customer satisfaction. Modern salespeople act as problem solvers, engaging buyers to identify their needs and translate them into actionable solutions.
Consultative Selling: Emerging in the late 1960s and early 1970s, consultative selling emphasizes identifying customer needs through effective two-way communication. This approach laid the groundwork for subsequent evolutions, including strategic selling and partnering, by focusing on diagnosis and recommendation over manipulation.
Strategic Selling: This model is built upon a company’s strategic market plan, coordinating all major functional areas (production, marketing, finance, personnel). The Strategic/Consultative Selling Model, following the development of a personal-selling philosophy, comprises four broad strategic areas: developing a relationship strategy, a product strategy, a customer strategy, and a presentation strategy.
Partnering and Strategic Account Management: Partnering signifies a strategically developed, long-term relationship aimed at solving customer problems. Its success relies on the skillful application of the four major strategies to consistently add value. Strategic-Selling Alliances, or Strategic Account Management, represent the highest form of partnering, focusing on enterprise-wide initiatives to build long-term, significant, and measurable business relationships with a limited number of key customers.
Value-Added Selling: This approach is a critical response to the customer economy, defined as a series of creative improvements that enhance the customer’s experience. The information economy rewards salespeople who possess the skills, knowledge, and motivation to create value at every step of the sales process, from understanding needs to delivering the final value proposition.

By embracing these evolving models and strategies, salespeople can move beyond transactional interactions to become indispensable partners, consistently creating and delivering value that drives both customer success and organizational profitability.