Copyright © 2004 by South-Western, a division of Thomson ...

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Personal Selling and Sales-Force Management

Chapter 19

The Four Ps of the Marketing Mix

• Product• Place (distribution)• Promotion• Price


Objectives1. Explain the conditions that determine the relative

importance of personal selling in the promotional mix.

2. Contrast over-the-counter selling, field selling, telemarketing, and inside selling.

3. Describe each of the four major trends in personal selling.

4. Identify the three basic sales tasks.

5. Outline the steps in the sales process.

6. Describe the sales manager’s boundary-spanning role.

7. List and discuss the functions of sales-force management.

8. Discuss the role of ethics in personal selling and sales-force management.


Personal Selling

• Process of a seller’s person-to-person promotional presentation to a buyer.

• Is essentially interpersonal.• Is basic to any enterprise.• Personal selling expenses are likely to equal

10 to 15 percent of total sales.

Three Types of Salespeople

• Fraud


• Fraud

• Friendly Fraud


• Fraud

• Friendly Fraud

• Sales Consultant


Factors Affecting the Importance ofPersonal Selling in the Promotional Mix


Alternative Sales Channels for Serving Customers

Over-the-Counter SellingCustomers in retail settingWith typical, routine needs

Field SellingCustomers who need solutions

to complex problems

TelemarketingNew customers and

customers of competitors

Inside SellingCustomers who need answersto frequently asked questions

Customers


TelemarketingAre There Downsides?

• Who has not experienced it -- ringing of the phone just as dinner goes on the table. You answer, it's not a friend, it's not a family member, it's not even from work. It's someone calling to sell you something -- a telemarketer.

• What can you do if you wish to slow down the number of telemarketing calls?


Cost of a Sales Call by Industry

0 50 100 150 200 250 300

$133

$154

$158

$200

$262

Manufactures of Industrial Products

Services

Retailing

Manufactures of Consumer Products

Wholesaling

SOURCE: sales data reported in “Cost of a A Call Survey,” Sales & Marketing Management, September 2000, p. 82.


Trends in Personal Selling

• Sell to teams of corporate representatives.

• Answer technical questions.• Want representatives who understand

technical jargon.• Patience.


Four Personal Selling Approaches

1. Relationship selling, a technique for building a mutually beneficial relationship.

2. Consultative selling, involves meeting customer needs by listening to customers, understanding—and caring about—their problems, paying attention to details, and following through after the sale.

3. Team selling, in which the salesperson joins with specialists from other functional areas of the firm to complete the selling process.

4. Sales-force automation (SFA) - the application of new technologies to the sales process.


Three Basic Sales Tasks Classification System

1. Order processing.

2. Creative selling.

3. Missionary sales.


Developing an Efficient Sales Force

Technology and information is helping to develop the most modern, efficient sales force ever.


The AIDA Concept and the Personal Selling Process

ATTENTION

INTEREST

ACTION

Step 1 Prospecting and Qualifying

Step 2 Approach

Step 3 Presentation

Step 4 Demonstration

Step 5 Handling ObjectionsDESIRE

Step 6 Closing

Step 7 Follow-Up

AIDA

THE SALES PROCESS

Figure 17.6: The AIDA Concept and the Personal Selling ProcessFigure 17.6: The AIDA Concept and the Personal Selling ProcessFigure 17.6: The AIDA Concept and the Personal Selling ProcessFigure 17.6: The AIDA Concept and the Personal Selling Process

The Sales Process

• Prospecting: personal-selling function of identifying potential customers

• Qualifying: determining that a prospect has the needs, income, and purchase authority necessary for being a potential customer

ClosingClosing Follow-upFollow-upDemon-Demon-strationstration

PresentationPresentation

ApproachApproach

Prospecting Prospecting and and

QualifyingQualifying



Handling Handling ObjectionsObjections

© PhotoDisc

The Sales Process

• Approach: salesperson’s initial contact with a prospective customer

• Precall Planning: use of information collected during the prospecting and qualifying stages of the sales process and during previous contacts with the prospect to tailor the approach and presentation to match the customer’s needs



ApproachApproachApproachApproach




© PhotoDisc

The Sales Process

• Presentation: describing a product’s major features and relating them to a customer’s problems or needs


PresentationPresentationPresentationPresentation

ApproachApproach




© PhotoDisc

The Sales Process

• A demonstration allows the customer to experience a good or service

• Even ads as well done as the one on the following slide can not substitute for an effective demonstration ride in a new automobile


Demon-Demon-strationstration


ApproachApproach




© PhotoDisc

Figure 17.7: Demonstration – A Critical Step in Consumer Decision Making

http://www.intriguecar.com/

Demonstration Selling Example: Software Firm Extensis Provides 30-Day, Full Versions of Its

Products to Prospects on a Trial Basis

Copyright © 2001 by Harcourt, Inc. All rights reserved.

http://www.extensis.com/

The Sales Process

• Objections: expressions of sales resistance by the prospect

• Example: A customer’s “I don't like the color” is probably their way of asking what other colors are available

• Objections are reasonable and professional salespeople are prepared to handle them appropriately



ApproachApproach





© PhotoDisc

The Sales Process

• Closing: stages of personal selling where the salesperson asks the customer to make a purchase decision

• Nearly 80% of salespeople fail to close when the buyer is ready

ClosingClosingClosingClosing Follow-upFollow-upDemon-Demon-strationstration


ApproachApproach




© PhotoDisc

Figure 17.8: Number of Sales Calls Required to Make a Sale

The Sales Process

• Follow-up: postsales activities that often determine whether an individual who has made a recent purchase will become a repeat customer

• Follow-up helps build mutually beneficial long-term relationships

ClosingClosing Follow-upFollow-upFollow-upFollow-upDemon-Demon-strationstration


ApproachApproach




© PhotoDisc


Effective Precall Planning Questions

• Who are the audience members and what jobs do they perform each day?

• What is their level of knowledge?

• What do they want to hear?

• What do they need to hear?


Methods of Closing a Sale

1.The “if I can show you . . . ” technique.

2.The alternative-decision technique.

3.The SRO (standing-room only) technique.

4.Silence.

5.An extra-inducement.


How Salespeople Spend Their Time

Prospecting


How Sales Managers Spend Their Time

Administrative Tasks


Motivation

1. Let each salesperson know in detail what is expected.

2. Make the work valuable.

3. Make the work achievable.

4. Provide immediate and specific feedback.

5. Offer rewards that each salesperson values.


Methods for Measuring Sales Performance

1. Sales volume.

2. Profitability.

3. Investment return.


Creating an Ethical Sales Environment

1. Promoting ethical awareness during training programs, sales meetings, and sales calls.

2. Making sure that all employees know that the firm opposes unethical conduct.

3. Establishing control systems to monitor ethical conduct.


Ethics and Selling & InformationFTC TipsHow often do you share personal information about yourself with others. It's so routine that you may not even realize you're doing it. It could be that you wrote a check at the grocery store, charge something at you favorite retailer, rented a car, mailed in your tax return, or bought a gift online, or applied for a credit card. For each transaction you are required to share personal information: your bank and credit card account numbers; your income; your Social Security number (SSN); or your name, address and phone numbers.

The FTC web site offers tips to help you manage your personal information.

Copyright © 2004 by South-Western, a division of Thomson ...

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