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Sales Management Question - Term Paper Example

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Discuss transaction-focused traditional selling and trust-based relationship selling.  Transaction-focused traditional selling is considered to be inefficient because of the process of the closing sales (Johnston and Marshall, 2005). In the traditional selling, a process is followed from next step to last step which is closing the sales which the sellers are using for their benefits…
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Download file to see previous pages 2004). The sales person requires information about the product, its competitors, and account gaining strategies to successfully close a sale (Johnston and Marshall, 2005). This technique although out-dated is till used in many industries such as automobiles where the focus of the sale is short-run (Johnston and Marshall, 2005). Trust based relationship selling is considered more personal selling in contrast to transaction-focused selling. Relationship selling is now-a-days the core of selling strategies. Trust-based relationship selling is based on the gaining the trust of the customers by focusing the sales strategy on the communication, creation and delivery of the customer needs and values (Ingram et al, 2004). In this approach to selling, the solving the problems of the customer is the top most priority followed by providing them opportunities and adding value to the business provided by the customers in the future (Ingram et al, 2004). While using the trust-based selling approach, it is important to have knowledge about the product, competitors, the need of the customers, their level of current knowledge, trust-building strategies and so on to successfully bring the customer in the business (Ingram et al. 2004). ...
This makes this approach to selling, short-sighted resulting in defection and dissatisfaction of the customers. This is also referred to as the maximizing the sales in the short run (Johnston and Marshall, 2005). In contrast to this, trust-based relationship selling follows continuous follow-up to keep the customer well-informed about the added values of the product which ensures high level of satisfaction and gives rise to many other opportunities (Ingram et al, 2004). As many scholars and practitioners regard transaction-based traditional selling inefficient in today’s selling environment, trust-based relationship selling is more preferred by many industries today because of high cost of customer switching to other similar products (Ingram et al, 2004). Instead of experiencing costs of losing customers, businesses invest in retaining those customers which can also lead to prospective customer base (Johnston and Marshall, 2005). In addition to this, this approach gives the business the competitive advantage of building long-term relationships with the customers. If you pay a sales person enough money you will have a well-motivated sales person. Do you agree? Explain your reason.  The management of sales and most importantly sales person is a great task as it controls and at the same motivates sales person to work (David, 2008). Since sales person are not directly controlled, they require more motivation to perform their selling tasks. In addition, interaction levels also vary between sales person and sales managers depending on the positions which causes more difficulty in motivating them (Rosen, 2008). As a result, money could be one of the best motivational tools for the sales person. If sales person are asked that ...Download file to see next pagesRead More
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