Chapter 1 The Power to Get What You Want in Life

Congratulations, You’re in Sales!

If you think personal selling is only for salespeople, think again. Everyone in every walk of life uses personal selling (some more effectively than others!). Selling is what makes people successful. We all have to sell our ideas, our points of view, and ourselves every day to all sorts of people—and not just those related to our jobs. For example, when you work on a team project, you have to sell your ideas about how your team should approach the project (or, sometimes more delicately, you will have to persuade others as to what you should do about a lazy team member). When you are with your friends, you have to sell your point of view about which movie you want to see or where you want to go to eat. When you pitch in for a friend’s gift, you have to sell your ideas about what gift to give. You are selling every day whether you realize it or not.

Think about the products and services that you buy (and concepts and causes that you believe in) and how selling plays a role in your purchase decision. If you rented an apartment or bought a car, someone sold you on the one you chose. If you read a product review for a new computer online then went into the store to buy it, someone reinforced your decision and sold you the brand and model you bought. If you ran in a 5K race to raise money for a charity, someone sold you on why you should invest your time and your money in that particular cause. A professor, an advisor, or another student may have even sold you on taking this course!

This video highlights how your life depends on selling.

The New World of Selling

There are some people who might think of selling as a high-pressure encounter between a salesperson and a customer. Years ago, that may have been the case in some situations. But in today’s world, successful selling is not something you do “to” a customer, it is something you do “with” a customer. The customer has a voice and is involved in most selling situations. In fact, Internet-based tools such as forums, social networks like Facebook, MySpace, and Twitter, along with Web sites, live chat, and other interactive features allow customers to participate in the process no matter what they are buying. Listen to consumer behavior expert and author Dr. Michael Solomon discuss the process of selling in today’s world.

Brand + Selling = Success

What do Ikea, Red Bull, Mini Cooper, and Apple have in common? All four are strong and highly identifiable brandsA product, service, or concept that is unique, consistent, and relevant and has an emotional connection with its customers.. You might wonder what role a brand name plays in selling strategy. Perhaps it is not always noticeable, but when you buy a Red Bull at the corner store for some extra energy, at that very moment, a specific, chosen brand has become an extremely powerful selling tool, and it has significantly influenced your inclination to purchase that particular drink. Selling can only be successful when that thing that you sell has perceived value applied to it by the consumer—why Red Bull rather than another caffeine drink? Red Bull must be more effective if a person chooses it rather than the other brand nearby. A brand is a tool to establish value in the eyes of the customer because it indicates something unique. On the surface, a brand is identified by a name, logo, or symbol so that it is consistently recognized.Michael R. Solomon, Greg W. Marshall, and Elnora W. Stuart, Marketing: Real People, Real Choices (Upper Saddle River, NJ: Pearson Prentice Hall, 2008), 286. But a brand is more than that.

A great brand has four key characteristics:

1. It is uniqueA product or service that is not available from any other competitor.. (Ikea furniture has exclusive, on-trend styling at unbelievable prices.)
2. It is consistentA product or service that is reliable or the same every time.. (Red Bull looks and tastes the same no matter where you buy it.)
3. It is relevantA product or service that is pertinent and important to specific customers.. (Mini Cooper looks cool and doesn’t use much gas, and you can design your own online.)
4. It has an emotional connectionA bond or relationship with a brand. with its customers. (An iPod, with hundreds of personalized qualities, becomes a loved companion.)

A brand is important in selling because it inherently offers something special that the customer values. In addition, people trust brands because they know what they can expect; brands, over time, establish a reputation for their specific and consistent product. If this changes, there could be negative repercussions—for example, what would happen if thousands of Mini Coopers started to break down? Customers expect a reliable car and would not purchase a Mini if they could not expect performance. Brand names emerge in all different sects of the consumer market—they can represent products, like PowerBar, or services, like FedEx. Brands can also be places, like Macy’s, Amazon.com, or even Las Vegas (everyone knows that what happens in Vegas stays in Vegas!Michael McCarthy, “Vegas Goes Back to Naughty Roots,” USA Today, April 11, 2005, http://www.usatoday.com/money/advertising/adtrack/2005-04-11-track-vegas_x.htm (accessed June 4, 2009).). Brands can be concepts or causes like MTV’s Rock the Vote or the Susan G. Komen Race for the Cure. Brands can also be people, like Lady Gaga, Jay-Z, Martha Stewart, or Barack Obama.

When products, services, concepts, ideas, and people demonstrate the characteristics of a brand, they are much easier to sell. For example, if you go to McDonald’s for lunch, you know you can always get a Big Mac and fries, and you always know it will taste the same whether you go to the McDonald’s near campus or one closer to your home. Or if you go to Abercrombie & Fitch, you can expect the store to look and feel the same and carry the same kind of merchandise whether you go to a store in Baltimore, Maryland, or Seattle, Washington.

The same concept applies to people. Think about your classmates: is there one that is always prepared? He or she is the one who always does well on the tests, participates in class, is a good team player, and gets good grades on assignments. This person has created a brand. Everyone knows that they can count on this person; everyone knows what to expect. Conversely, the same is true for a person who is often times late and sometimes arrives unprepared. You probably wouldn’t want to work with that person because you’re not sure if that person will hold up his or her end of the project. Which one would you choose as a teammate? Which one would you trust to work with on a class project? Which person is your brand of choice?

The Power of an Emotional Connection

Figure 1.2

Harley-Davidson sells by using an emotional connection between the brand and its customers.

© 2010 Jupiterimages Corporation

Uniqueness (no other fries taste like McDonald’s), consistency (a Coke tastes like Coke no matter where you buy it), and relevance (your college bookstore is only relevant on a college campus, not in your local mall) are clear as characteristics of a brand, but the most important characteristic is also the most abstract—the emotional connection it creates with its customers. Some brands create such a strong emotional connection that its customers become brand fans or advocates and actually take on the role of selling the brand by way of referrals, online reviews, user-generated content, and word-of-mouth advertising.

Harley-Davidson measures their customer loyalty by the number of customers who have the company’s logo tattooed on their body.Fred Reichheld, “The Ultimate Question: How to Measure and Build Customer Loyalty in the Support Center,” presented via Webinar on May 14, 2009. These customers are emotionally connected with the brand, which offers unique selling opportunities for Harley-Davidson dealerships. Another example of emotional connection to a brand can be found by examining consumer relationships to sports teams. Fans willingly advertise their favorite team by wearing T-shirts, hats, and even putting decals and bumper stickers on their cars. They attend games (some of which require hours of standing in line) or watch them religiously on television. For popular events, in fact, many times customers are willing to pay more than the face value of tickets to attend; some will spend hundreds of dollars to see the NCAA Final Four, the World Series, or the Super Bowl. These consumers are emotionally connected to their teams, and they want to be there to support them. A loud, sold-out stadium certainly illustrates why it’s easer to sell brands when customers are emotionally connected.

Power Selling: Lessons in Selling from Successful Brands

Emotion Sells

Did you ever consider why the salespeople at Starbucks are called baristas instead of employees?

Howard Schultz, the chief executive officer of Starbucks, has built the brand in his vision since the company began in 1982. He believes strongly that the brand stands for more than beans. During an interview, he said, “By making a deeper emotional connection with your customers, your brand will stand out from the hundreds, if not thousands, of vendors, entrepreneurs, and business owners selling similar services and products.”Carmine Gallo, “How to Sell More Than a Product,” BusinessWeek, May 19, 2009, http://www.businessweek.com/smallbiz/content/may2009/sb20090519_058809.htm (accessed June 7, 2009). Schultz is especially passionate about the role salespeople have in creating the “Starbucks” experience.

The brand recently launched a new marketing campaign called “It’s not just coffee. It’s Starbucks.” Listen to what baristas have to say about the latest Starbucks marketing campaign.Eleftheria Parpis, “Starbucks Claims ‘It’s Not Just Coffee,’” Brandweek, May 1, 2009, http://www.brandweek.com/bw/content_display/news-and-features/retail-restaurants/e3i88d85d8ede4fd0afae2e6d752751e2a3 (accessed June 7, 2009).

Starbucks baristas talk about their emotional connection to the brand.

(click to see video)

Source: Starbucks Corporation

The concept of emotional connection is not limited to the brand, it is also an especially critical component in the actual practice of selling. Customers are much more readily persuaded to make a purchase if they develop an emotional connection with the salesperson. If you go to Best Buy to look at a new home theater system, a helpful (or unhelpful) salesperson can make all the difference in whether you buy a particular system from that particular Best Buy or not. If the salesperson asks questions to understand your needs and develops a good relationship (or emotional connection) with you, it will greatly increase your chances of purchasing the home theater system from him. Rock star Gene Simmons, front man for the legendary rock band KISS and wildly successful entrepreneur, summed it up best: “I have to have an emotional connection to what I am ultimately selling because it is emotion, whether you are selling religion, politics, even a breath mint.”“Gene Simmons: Rock ‘n’ Roll Entrepreneur,” BusinessWeek, September 5, 2008, http://www.businessweek.com/smallbiz/content/sep2008/sb2008095_987221.htm (accessed June 7, 2009).

Clearly, brands are fundamental building blocks in the selling process. The bottom line is, great brands = great sales.

Key Takeaways

• Personal selling is a powerful part of everyday life. The selling process can help you get what you want both personally and professionally.
• You are always selling your ideas, your point of view, and yourself in virtually every situation, from class participation to going out with friends.
• In order to understand the selling process, you have to understand brands. A brand can be a product, service, concept, cause, location, or even a person. A brand consistently offers value to a customer with something that is unique, consistent, and relevant and creates an emotional connection.
• Brands are important in selling because customers trust brands. The brand doesn’t end with the product, service, or concept; the salesperson is also a brand.

Exercises

1. Identify a situation in which you were the customer in a personal selling situation. Discuss your impressions of the salesperson and the selling process.
2. Think about this class. In what ways do you sell yourself to the professor during each class?
3. Think about your school as a brand. Discuss what makes it unique, consistent, and relevant and have an emotional connection with its customers. How would you use these characteristics if you were trying to sell or convince someone to attend the school?
4. Think about the following brands: Xbox, Victoria’s Secret, and BMW. Discuss how each brand forms an emotional connection with its customers. Why is it important in selling?

The Internet: Power to the People

The Internet has been a game changer for selling in many ways. Just like the Internet expands the reach of a company to virtually anywhere in the world, it also provides customers with access to information, products, and services that they never had before. In some industries, the Internet has virtually eliminated the need for a salesperson. Travel agents are no longer the exclusive providers of reservations and travel plans. Music stores are almost extinct. Newspaper want ads have almost vanished. In other industries, the relationship of the salesperson and customer has changed dramatically. The power has shifted from the seller to the buyer. Take, for example, the auto industry. It used to be that when you wanted to buy a car, you went to a car dealership. The salesperson would show you the cars, take you out on a test drive, and then negotiate the selling price when you were ready to buy, holding the dealer invoice close to the vest. Today, customers may e-mail a car dealership to set up an appointment to drive a specific car after they have researched different models of cars including features, benefits, competitive models, editor and customer reviews, competitive pricing, and dealer invoice pricing. In some cases, the customer may know more than the salesperson.Robert McGarvey and Babs S. Harrison, “The Human Element: How the Web Brings People Together in an Integrated Selling System,” Selling Power 20, no. 8, http://www.sellingpower.com/content/article.php?a=5566 (accessed March 16, 2010).

Sales organizations are embracing a movement called Sales 2.0A term used to describe the role of the next generation of the Internet in the selling process including social networking, “mash-ups,” communities, and collaboration.. You may have heard of Web 2.0, the second generation of the Internet, which includes interactivity, community, and on-demand information. Sales 2.0 is a term that appropriately describes a new way of thinking about the role of the Internet in the selling process as it encompasses the impact of constantly changing technology and multiple electronic devices, “mash-ups” of different sources of information, and user-generated content on sites like Facebook, LinkedIn, YouTube, and Twitter. According to Tim Sullivan, director of intellectual property and information for Sales Performance International, these Internet-based changes pose new implications for sales. Educating customers is no longer the primary function of the salesperson. Customers are actively involved in engagement, interaction, and collaboration to seek information. Salespeople need to understand the power of collaboration both inside their organization and with their customers, so that they may participate in the online conversation, enabling them to better deliver value. Just as customers use blogs, wikis, and social networking as tools to learn about a product, companies can use these tools to learn about customers (and what they want and need). It’s a new mind-set and new technology tools are constantly changing the landscape—salespeople must be prepared to adjust their reactions accordingly.Heather Baldwin, “What Does Sales 2.0 Mean for You?” Selling Power Sales Management eNewsletter, March 3, 2008, http://www.sellingpower.com/content/newsletter/issue.php?pc=801 (accessed March 16, 2010). The shift of power to the customer is underscored by Gerhard Gschwandtner, founder and CEO of Selling Power, Inc. According to him, “Sales 2.0 gives the customer a 360-degree view of the company and provides sales organizations with a variety of tools that help manage that two-way communication process.”Selling Power, Sales 2.0 Newsletter, September 18, 2008, http://www.sellingpower.com/content/newsletter/issue.php?pc=868 (accessed June 21, 2010). Sales 2.0 takes the selling process to the next generation.

Sales Is Not a Department, It’s a State of Mind

Sold.

It’s a deal.

Let’s shake on it.

Sign on the dotted line.

You’ve got the job.

Those are the words that signal success in selling. They seem simple, but according to Gerry Tabio, bringing a saleThe activity of selling a company’s products and services.BNET Business Dictionary, “Sales,” BNET, http://dictionary.bnet.com/definition/Sales.html?tag=col1;rbDictionary (accessed June 5, 2009). to fruition is “not just about celebrating the sale; it’s about celebrating the growth of the customer.”Gerry Tabio, “How to Create Ideas That Sell,” presentation at Greater Media Philadelphia Sales Meeting, Philadelphia, PA, May 15, 2009. The most successful companies work to build and sustain relationships with the customer at every touch pointAny point in which the customer comes in contact with a company, such as in person, by phone, by e-mail, Web site, invoice, advertising, and more., any way in which the company comes in contact with the customer, and consider selling the job of everyone in the organization. In other words, although there are specific functional departments such as sales, marketing, operations, human resources, finance, and others, everyone in the organization is focused on the customer. This is called a customer-centric organizationAll employees are focused on anticipating and meeting the needs of the customer..Barry Welford, “7 Habits of a Truly Customer-Centric Selling Organization,” SMM Internet Marketing Consultants Newsletter 13, http://www.smmbc.ca/newsletter-13.htm (accessed June 5, 2009).

Figure 1.3

Customer touch points include any point at which the customer comes in contact with or “touches” the brand. Customer-centric companies ensure that every customer touch point provides a positive experience for the customer.

© 2010 Jupiterimages Corporation

You might wonder why all companies aren’t considered customer-centric. After all, if they were in business to sell products and services to customers, it would make sense that they would be customer-centric. However, you have probably encountered companies that aren’t really focused on the customer. How many times have you heard this message while you were on hold to talk to a salesperson or customer service representative, “Your call is important to us. Please stay on the line for the next available representative”? Being on hold and hearing a recorded message hardly makes you feel as if you are important to the company.

It’s All about the Customer

Being customer-centric means insisting on accountability. Although everyone is focused on the customer, every employee is part of a department or function. Each department has goals and accountabilities. In a true customer-centric organization, the departments work together to satisfy the needs of the customer and achieve the financial objectives of the company. Most companies have core functions or departments such as sales, customer service (sometimes it is included as part of the sales department), marketing, operations, finance, human resources, product development, procurement, and supply chain management (also called logistics). Departments such as finance and human resources are called support (or staff) functionsA department that provides services that support those that are on the front lines with customers, such as human resources, finance, and marketing. This department is also called a staff function. since they provide support for those that are on the front lines such as sales and customer service (these departments are also called line functionsA department that is part of the daily operations of a company such as sales and customer service. as they are part of a company’s daily operations).BusinessDictionary.com, “Staff Function,” http://www.businessdictionary.com/definition/staff-function.html (accessed June 8, 2009). In a customer-centric organization, the focus on the customer helps prevent organizational “silos” (i.e., when departments work independently of each other and focus only on their individual goals).

The sales department is the heartbeat of every company. According to Selling Power Magazine, the manufacturing and service companies listed on its “Power Selling 500 Report” generate $6.7 trillion dollars in sales annually. Each salesperson supports an average of 12.9 other jobs within the company.“Selling Power 500: America’s 500 Largest Sales Forces,” Selling Power, October 2008, 53. This means that the level of sales that is generated by each salesperson actually pays for the roles in human resources, marketing, operations, and other departments. It makes sense that the salespeople fund the operations of the company. After all, it is a salesperson with whom you interact when you buy a Nissan Cube, lip gloss at Sephora, or an interview suit at Macy’s. The people in the sales department “ring the cash register” (whether the business has a cash register or not). They are responsible and accountable to deliver sales to generate revenue and profit, which are required to operate and to invest in the company. In fact, the sales department is considered so important that even in this difficult economy, companies should continue to fill open sales positions even if they are not hiring in other departments, according to Dennis J. Ceru, a professor of entrepreneurship at Babson College and the president of Strategic Management Associates, a consulting firm in Wellesley Hills, Massachusetts.Elaine Pofeldt, “Empty Desk Syndrome: How to Handle a Hiring Freeze,” Inc., May 1, 2008, http://www.inc.com/magazine/20080501/empty-desk-syndrome.html (accessed June 7, 2009). Without a healthy and strong sales department, companies can wither and die.

Figure 1.4

Each salesperson generates enough revenue and profit to support 12.9 jobs in the average company.

Is It Sales, or Is It Marketing?

So you might be wondering, if the sales department interacts with customers, what exactly does the marketing department do? That’s a great question. Some people use the terms in tandem—sales and marketing—to refer to sales. Some people use the terms interchangeably and refer to marketing as sales. It’s no wonder that it confuses so many.

According to the American Marketing Association, “marketingThe activity of creating communicating and delivering brand messages to customers. is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”American Marketing Association, “About AMA,” October 2007, http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx?sq=definition+of+marketing (accessed June 6, 2009). In other words, it is the role of the marketing department to use the four Ps of the marketing mix (product, place, promotion, and price) to determine the brand message, which is ultimately communicated to customers.Michael R. Solomon, Greg W. Marshall, and Elnora W. Stuart, Marketing: Real People, Real Choices (Upper Saddle River, NJ: Pearson Prentice Hall, 2008), 380. Then, the marketing department uses the elements of the promotional mix of advertising, sales promotion, public relations, direct marketing, interactive marketing, and personal selling to get the word out to customers.George E. Belch and Michael A. Belch, Advertising and Promotion, 8th ed. (New York: McGraw-Hill Irwin, 2008), 10. Marketers seek to motivate prospective customers to purchase by driving them to a Web site, store, phone, event, or another related, desired action. Essentially, marketing builds relationships between customers and the brand. When you see an online ad for Best Buy, get a text message about the new release of Terminator 2: Judgment Day on Blu-ray, call the 800 number to check on your Rewards Zone point balance, post a comment on the Best Buy Facebook page, respond to a tweet from Best Buy on Twitter, see a newspaper insert or an ad on television, or read about the opening of a new store near year you, these are all examples of marketing. They are designed to encourage you to engage with the brand and encourage you to take an action—visit the store, go to the Web site, call the 800 number, or tell your friends about the brand.

When you go into the store or visit the Web site, it’s the sales department that takes over. A salesperson will speak with you (either in person in the store, online with live chat, or by phone) to determine what you need and to help you make the best decision by communicating product information (this printer is wireless), service information (we can deliver that tomorrow), warranty information (it has a 90-day manufacturer warranty), and other pertinent facts. The salesperson extends the relationship that was established with the marketing contacts and makes a personal connection with you. If you have a good experience, your relationship with Best Buy gets even better, and you are more likely to shop there again and tell your friends.

At times, however, sales and marketing don’t play well together. When organizations are not customer-centric, the departments may appear to have separate or conflicting goals. Marketing may feel that sales doesn’t follow up on prospective customers, or perhaps sales feels that the marketing efforts are focused on the wrong customers. To understand more about the relationship between sales and marketing, watch Chip Terry, vice president and general manager of sales intelligence at Zoom Info, talk about how the two functions are aligned (and sometimes how they may not be aligned):

Figure 1.5 Marketing and Sales: How They Work Together

In addition to closing the sale (when the customer purchases the product or service), the salesperson has a very important role in the marketing process. Because the salesperson (in the store, online, or on the phone) is a primary touch point and a personal interaction with the customer, the salesperson is the brand in the eyes of the customer. According to Dr. David A. Shore of Harvard University, “The sales force is the most visible manifestation of the brand. Salespeople need to say with a singular voice, ‘This is who we are, and, by extension, this is who we are not.’ The critical element that power brands have is trust, and a sales force needs to become the trusted advisor to the customer.”Gerhard Gschwandtner, “How Power Brands Sell More,” Selling Power 21, no. 3, http://www.sellingpower.com/content/article.php?a=5705 (accessed March 16, 2010).

So now you can see that marketing and sales work hand-in-hand: one develops the brand and the other assumes the image of the brand. Neither works without the other, and the relationship between the functions must be transparent to the customer. There’s only one brand in the eyes of the customer, not two departments. When marketing and sales work well together, the customer experience is seamless.

Getting Started

Some people know exactly what they want to do in life. Madonna, Venus and Serena Williams, Steve Jobs, and countless others have been preparing for their chosen careers since they were young. Dylan Lauren, daughter of designer Ralph Lauren and chief executive of Dylan’s Candy Bar, could see her path even when she was young. With a father who was a fashion designer and her mother a photographer, she said, “I always knew I wanted to be a leader and do something creative as a career.”Patricia R. Olsen, “Sweets Tester in Chief,” New York Times, June 7, 2009, business section, 9. Katy Thorbahn, senior vice president and general manager at Razorfish, one of the largest interactive marketing and advertising agencies in the world, always knew she wanted to be in advertising. Her father was in advertising, her uncle was in advertising, and she had an internship at an advertising agency, so it was no surprise that she pursued a career in advertising. You probably know some people like this. They know exactly the direction they want to take and how they want to get there.

It’s not that way for everyone, however. In fact, most people don’t really know what they want to do for a career or even what types of jobs are available. Whether you are currently working at a job or you are just beginning to determine your career direction, it’s never too early or too late to learn about what career might be a good fit for you. It’s a good idea to use the three steps outlined below to help you begin your career search. These steps can be most effective if you complete them even before you put together your résumé (you’ll get the tools to create your résumé and cover letter in Selling U in Chapter 2 "The Power to Choose Your Path: Careers in Sales").