CHAPTER EIGHTEEN

PERSONAL SELLING AND SALES

MANAGEMENT

Personal selling defined Person-to-person

dialogue Between

prospective buyer and the seller

Direct human contact

Matching products to needs

Involves… developing relationships

discovering and communicating customer needs

communicating benefits

Methods of personal selling

Retail selling Business-to-

business selling Field selling Telemarketing Inside selling

Performed by outside salesperson at buyer’s place of business

Involves use of the telephone as the primary means of communications

Performed by inside salespeople at seller’s place of business

Personal selling

Personal selling is the most widely used means by which organizations communicate with their customers

Used by profit and nonprofit organizations, big and small

Money spent on personal selling far exceeds money spent on advertising

Personal selling

•12 million people are engaged in personal selling in the United States

•Represents 10% of the United States work force

The characteristics of personal selling

FLEXIBILITY Identify specific

sales prospects Adaptation to

specific situations Answer questions Overcome

objections

BUILDS RELATIONSHIPS

Managing the account relationship and assuring the buyers receive appropriate services

Salesperson understands and solves buyer’s problems

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Limitations of personal selling

Expensive per contact

Many sales calls may be needed to generate a single sale

Labor intensive

Types of personal selling tasks

ORDER TAKING Do very little

creative selling Write up orders Check invoices for

accuracy Assure timely order

processing May use suggestive

selling

Inside or field order- takers

Telemarketers are often order-takers

Due to improvements in inventory management and communications technology, some field order-takers have been replaced by computers

Types of personal selling tasks

ORDER GETTING Creative selling More time consuming Sell to new prospects

(pioneers) Sell to continuing

customers (account managers)

Some use of telemarketing, particularly to small accounts

Seek out customers

Analyze their problems

Discover solutions

Sell solutions to customers

Common activities of order-getting salespeople

Selling function Working with orders Servicing the product Information management Servicing the account Conferences/meetings Training/recruiting Entertainment Out-of-town traveling Working with distributors

MISSIONARIES or DETAILERS Provide technical

information and solve problems, but rarely sell

Perform a public relations function

CROSS- FUNCTIONAL TEAMS

Sales support and cross-functional teams

In large business-to-business transactions (new production lines, buildings, computer systems, etc.) a variety of technical specialists form a team to help the sales person and the client

THE CREATIVE SELLING PROCESS

IDENTIFYING & QUALIFYING PROSPECTS

APPROACHING THE PROSPECT

MAKING THE SALES PRESENTATION

HANDLING OBJECTIONS

CLOSING THE SALE

FOLLOWING UP

Identifying and qualifying prospects

Identify prospects who have… the need to buy

the financial ability

to buy

the authority to buy

Identifying and qualifying prospects

Finding these prospects?

Trade listsReferrals Inquiries Internet visitsGovernment publicationsCoupons returnedPrevious customers Internet smart agents

The approach

Initial contact Establish rapport Make a good

impression Problem solver for

prospective buyer Collect information

Sales presentation

Tell the product story Attention, interest, desire,

action Use of appropriate sales

aids (computers, videos, brochures)

Importance of verbal and non verbal communications

Handling objections

Listen and learn first Yes…but Additional information Counter arguments Change product or

service to overcome objection

Closing the sale

Know when to close Trial closing Assumptive closing Straightforward approach Summative approach Narrow the alternatives When would you like

to take delivery?

Follow up

Make sure all promises have been kept and the customer is satisfied with the purchase

Resolve any problems encountered

It’s working perfectly!!!

Sales force automation and integrated marketing communications

The application of digital and cellular technologies to personal selling is known as Sales Force Automation Use of customer

databases Automated follow-ups

and e-mails

Salespeople as future managers

Provides a practical grounding in interpersonal skills

The ability to understand and appreciate business decision processes

Getting to know the customers

Acceptance of individual responsibility for performance

Focus on measured results

Success sales people are often considered a desirable pool for future middle and upper management

Sales management

Sales Management is the marketing management activity dealing with planning, organizing, directing, and controlling the personal selling effort. This includes recruiting, training, supervision, motivation, evaluation, and compensation of sales personnel

Sales management

Planning Setting salesobjectives

Organizing Organizing salesactivitiesRecruiting &selection

Directing Training &developmentMotivation &compensation

Control Evaluating andcontrolling

Sales managementplanning sales objectives

Sales goals that are precise, quantifiable, reasonable, and for a given period of time Measured in dollars, units,

percentage change, market share, average sales per sales call, and many others

Marketshare

Units

Sales managementorganizing the sales force

Establishment of sales territories Geographical Market potentials Customer types or

sizes By product line By selling task

Sales managementdirecting the sales force

Recruiting Training Compensating Motivation

Education Knowledge Skills

Personality traits Screening tests Interviews Work experience

Sales managementdirecting the sales force

Recruiting Training Compensating Motivation

Company policies and procedures

Industry and competition

Product knowledge and selling skills

On-the-job training Continuing training

Sales managementdirecting the sales force

Recruiting Training Compensating Motivation

Straight salary Straight commission Commission with

draw Quota-bonus Combinations of the

above

Sales managementdirecting the sales force

Recruiting Training Compensating Motivation

Financial rewards Contests, prizes,

conventions, trips, sales meetings

Increased territories or choice accounts

Recognition before peers

Evaluation and Control

Required reports Measurement

against plan or sales standards

Expense control Productivity New account

development

Ethical issues in sales and sales management

Kickbacks, bribes and “gifts”

Price discrimination

Cheating on expense accounts

Misrepresentation