Marketing Concept Requires New Selling Models
2.1 Discuss the evolution of personal selling models as an extension of the marketing concept
A careful examination of personal selling practices during the past 50 years reveals some positive developments. We have seen the evolution of personal selling through several stages. The earlier “persuader stage” that was popular prior to the emergence of the marketing concept emphasized pushing or peddling products. At this stage, with little regard for long-term, mutually rewarding customer relationships, salespeople attempted to convince any and all market members to buy products offered. Over the years, personal selling evolved to the “problem-solver stage”— obtaining the participation of buyers in identifying their problems, which could be translated into needs. At this stage, the salesperson attempts to present products that correspond with customer needs.1 Today, salespeople are no longer the flamboyant product “peddlers” of the past. Instead, they are increasingly becoming diagnosticians of customers’ needs and problems. A growing number of salespeople recognize that the quality of the partnerships they create is as important as the quality of the products they sell. This sweeping change in personal-selling models, from peddling to long-term consultative problem solving and value-added partnering, was prompted by the emergence of the marketing concept.
Salespeople who build partnering relationships are rewarded with repeat business and referrals. These relationships require a strategic approach to selling.
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Evolution of the Marketing Concept
What is the marketing concept? It is a principle that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired products. Under the marketing concept, customer focus and value are the paths to sales and profits.2
The era of marketing and the age of information began in the 1950s (Table 2.1). A General Electric executive is credited with making one of the earliest formal statements indicating corporate interest in the marketing concept. In a paper heralding a new management philosophy, he observed that the principal marketing function of a company is to determine what the customer wants and then develop the appropriate product or service. This view contrasted with the prevailing practice of that period, which was to develop products and then build customer interest in those products.3
Table 2.1 Evolution of Personal Selling (1950 to Present)
| SALES AND MARKETING EMPHASIS | SELLING EMPHASIS |
|---|---|
| Marketing Era Begins (1950s) | |
| Organizations determine needs and wants of target markets and adapt themselves to delivering desired satisfaction; product orientation is replaced by a customer orientation |
|
| Consultative-Selling Era Emerges (Late 1960s to early 1970s) | |
| Salespeople are becoming diagnosticians of customers’ needs as well as consultants offering well-considered recommendations; mass markets are breaking into target markets |
|
| Strategic-Selling Era Emerges (Early 1980s) | |
| The evolution of a more complex selling environment and greater emphasis on market niches create the need for greater structure and more emphasis on planning |
|
| Partnering Era Emerges (1990 to the present) | |
| Salespeople are encouraged to think of everything they say or do in the context of their long-term, high-quality partnership with individual customers; sales force automation provides specific customer information |
|
The foundation for the marketing concept is a business philosophy that leaves no doubt in the mind of every employee that customer satisfaction is of primary importance. All energies are directed toward satisfying the customer. As Peter Drucker once observed, “The customers define the business.”
Although the marketing concept is a very basic business fundamental, some companies ignore it and suffer the consequences. Ford Motor Company was a leader in quality control during the 1980s and early 1990s but then seemed to shift its focus to other areas. The result was a drop in its J.D. Power and Associates quality rankings and a drop in sales. Ford also failed to stay in touch with consumer tastes.4 With renewed insight into the marketing concept, Ford now appears to be reconnecting with their customers.5
Business firms vary in terms of how strongly they support the marketing concept. Some firms have gone the extra mile to satisfy the needs and wants of their customers:
UPS founder Jim Casey adopted the marketing concept when the company was first established. He described the firm’s customer focus this way: “Our real, primary objective is to serve—to render perfect service to our stores and their customers. If we keep that objective constantly in mind, our reward in money can be beyond our fondest dreams.”6
Marriott Hotels uses a blend of “high tech” and “high touch” to build customer goodwill and repeat business. Each of the 8,500 sales representatives can sell the services of 10 motel brands in Marriott’s portfolio. The customer with a small-meeting budget might be encouraged to consider a Fairfield Inn property. The customer seeking luxury accommodations might be introduced to a Ritz-Carlton hotel (acquired a few years ago). All reservations go through the same system, so if one Marriott hotel is full, the sales representative can cross-sell rooms in another Marriott hotel in the same city.7