Intro to Marketing Chapter 13ppt3809

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chapter 13

Selling and SalesManagement

Harcourt, Inc.



Dr. Rosenbloom

ObjectivesObjectives

Identify and understand the Identify and understand the

critical factors of personal critical factors of personal

selling selling

Discuss how selling has evolved Discuss how selling has evolved

Evaluate the advantages and Evaluate the advantages and disadvantages of sales as adisadvantages of sales as a

profession profession



Dr. Rosenbloom

Describe the selling Describe the selling

environments and types of environments and types of

personal selling personal selling

Understand the sales processUnderstand the sales process

Appreciate the tasks and Appreciate the tasks and functions of the sales manager functions of the sales manager

Recognize legal/ethical issues Recognize legal/ethical issues

ObjectivesObjectives



Dr. Rosenbloom

Draft WorldwideDraft Worldwide

Payne Webber Payne Webber

Personal SellingPersonal Selling



Dr. Rosenbloom

A form of person to personA form of person to person

communication in which acommunication in which a

salesperson works withsalesperson works with prospective buyer and attempts prospective buyer and attempts

to influence purchase in theto influence purchase in the

direction of his or her direction of his or her company¶s products or company¶s products or

servicesservices

Personal Selling DefinedPersonal Selling Defined



Dr. Rosenbloom

Allows the firm toAllows the firm to

immediately respond to theimmediately respond to theneeds of the prospectneeds of the prospect

Allows for immediateAllows for immediate

customer feedback customer feedback Results in an actual saleResults in an actual sale

Importance of Personal SellingImportance of Personal Selling



Dr. Rosenbloom

Hard sell: Formerly thoughtHard sell: Formerly thought

customers had to be forced intocustomers had to be forced into

making a purchasemaking a purchase Relationship selling: Now sellingRelationship selling: Now selling

requires the development of arequires the development of a

trusting partnership in which thetrusting partnership in which thesalesperson seeks to provide longsalesperson seeks to provide long--

term customer satisfactionterm customer satisfaction

Evolution of Personal SellingEvolution of Personal Selling



Dr. Rosenbloom

WalkerInformationWalkerInformation

R elationship SellingR elationship Selling



Dr. Rosenbloom

Employment in sales is growingEmployment in sales is growing

Sales positions offer advantages:Sales positions offer advantages:

Good compensationGood compensation Intrinsic reward from helping customersIntrinsic reward from helping customers

Flexible in dayFlexible in day--toto--day activitiesday activities

HighHigh--visibility career track visibility career track

Limited supervisionLimited supervision

Travel opportunitiesTravel opportunities

Increasing responsibilitiesIncreasing responsibilities

Why choose the sales profession?Why choose the sales profession?



Dr. Rosenbloom

Lawson SoftwareLawson Software

Leading Edge TechnologyLeading Edge Technology



Dr. Rosenbloom

Desirable Salesperson TraitsDesirable Salesperson Traits

SalespersonSalesperson

Empathetic

Competitive

Goal-oriented

Adaptive

Customer-

oriented

Enthusiastic

Organized

Self-motivated



Dr. Rosenbloom

Selling Environments and Selling TypesSelling Environments and Selling Types

S elling Environments S elling Types

Over-the-counter y Order taker

y Order getterField Selling y Professional salespeople

y National account managers

y Missionary salespeople

y Support salespeople

Telemarketing y Outbound

y Inbound



Dr. Rosenbloom

Over-the-Counter SellingOver-the-Counter Selling

Order taker Order taker

Order Getter Order Getter

A salesperson who only processes the

purchase that the customer has already

selected

Retail outlets that are heavily oriented toward

self-service



Dr. Rosenbloom

Over-the-Counter SellingOver-the-Counter Selling

Order taker Order taker

Order Getter Order Getter

A salesperson who actively seeks to provide

information to prospects, persuade

prospective customers, and close sales

Personal service oriented stores

May practice suggestion selling



Dr. Rosenbloom

Field SellingField Selling

Help prospective customers to define their needs andthen suggest the best means of meeting those needs,

even if that requires suggesting that the prospects use a

competitive product

National account managersNational account managers

Missionary SalespeopleMissionary SalespeopleSupport SalespeopleSupport Salespeople

Professional SalespeopleProfessional Salespeople



Dr. Rosenbloom


Highly skilled salespersons who call on key

customers¶ headquarters sites, develop strategic plansfor the accounts, make formal presentations to top-

level executives, and assist with all the product

decisions at that level

Missionary SalespeopleMissionary Salespeople



Support SalespeopleSupport Salespeople



Dr. Rosenbloom


They do not seek to obtain a direct order from their customers

Primary goal is to persuade customers to place

orders with distributors or wholesalers







Dr. Rosenbloom


Support the sales force in a number of ways Technical support salespeople assist with

technical aspects of sales presentations

Merchandisers may set up product displays







Dr. Rosenbloom

TelemarketingTelemarketing

Utilizing the telephone for prospecting, selling,

and/or following up with customers

Outbound: the salesperson uses the telephone to call

customers

Inbound: Firms which have customers calling the

vendor company to place orders (toll-free phone

numbers)

Telemarketing Telemarketing



Dr. Rosenbloom

The Personal Selling ProcessThe Personal Selling Process

Prospecting Prospecting PrePre--

Approach Approach

PresentationPresentationHandling Handling

ObjectionsObjections

Approach Approach

Follow Follow--UpUpNeed Need

IdentificationIdentification

Gaining Gaining

Commitment Commitment



Dr. Rosenbloom


Prospecting Prospecting

Prospecting involves finding qualified sales leadsProspecting involves finding qualified sales leads

Qualified sales leads: potential customers that have a needQualified sales leads: potential customers that have a need

for the salesperson¶s product, and are able to buyfor the salesperson¶s product, and are able to buy

Referrals: obtained by the salesperson asking currentReferrals: obtained by the salesperson asking current

customers if they know of someone else who might have acustomers if they know of someone else who might have a

need for the salesperson¶s productneed for the salesperson¶s product

ColdCold--calling: means contacting prospective customerscalling: means contacting prospective customers

without a prior arrangementwithout a prior arrangement



Dr. Rosenbloom

Zip Pak Zip Pak

Prospecting Through AdvertisingProspecting Through Advertising



Dr. Rosenbloom

Deloitte & ToucheDeloitte & Touche

R eferralsR eferrals



Dr. Rosenbloom


PrePre--approachapproach

The collection of information about the potentialThe collection of information about the potential

customer and the customer¶s company prior to thecustomer and the customer¶s company prior to the

initial visitinitial visit Researching the prospect and the company willResearching the prospect and the company will

assist the salesperson in planning the initialassist the salesperson in planning the initial

presentation to the prospective customer presentation to the prospective customer



Dr. Rosenbloom


Approach Approach

The development of rapport with the customer The development of rapport with the customer

The chance to make a good first impressionThe chance to make a good first impression The salesperson should adapt to the potentialThe salesperson should adapt to the potential

customer¶s social stylecustomer¶s social style



Dr. Rosenbloom

Social StylesSocial Styles

Analytical Analytical Driver Driver

Amiable Amiable ExpressiveExpressive

FactFact--orientedoriented

Risk Risk

TakersTakers

Risk Risk

Adverse Adverse

PeoplePeople--orientedoriented



Dr. Rosenbloom


Risk Risk

TakersTakers




Risk Risk

Adverse Adverse


Very factVery fact--andand--detail orienteddetail oriented

Require time to make decisionsRequire time to make decisions

Not interested in socializing Not interested in socializing

The salesperson should inundate the analytical withThe salesperson should inundate the analytical with

facts and figures that can be supported withfacts and figures that can be supported with

documentationdocumentation



Dr. Rosenbloom


Risk Risk

TakersTakers




Risk Risk

Adverse Adverse


ActionAction--and goal oriented, and makes quick and goal oriented, and makes quick

decisionsdecisions

Basic facts and not big on socializingBasic facts and not big on socializing

The sales person should provide the bottomThe sales person should provide the bottom--lineline

information first and then work backward to fillinformation first and then work backward to fill--inin

essential detailsessential details



Dr. Rosenbloom


Risk Risk

TakersTakers




Risk Risk

Adverse Adverse


A visionary with big ideas for the future but not a detailA visionary with big ideas for the future but not a detail--

oriented individualoriented individual

Hesitant to make quick decisions and will seek consensusHesitant to make quick decisions and will seek consensusfrom othersfrom others

Seeks to socialize with the salespersonSeeks to socialize with the salesperson

The salesperson should provide assurances that will reduceThe salesperson should provide assurances that will reduce

the amiable¶s feeling of risk the amiable¶s feeling of risk



Dr. Rosenbloom


Risk Risk

TakersTakers


Amiable Amiable

ExpressiveExpressive


Risk Risk

Adverse Adverse


Loves to socialize and will frequently base the purchaseLoves to socialize and will frequently base the purchase

decision on the relationship with the salespersondecision on the relationship with the salesperson

The salesperson should establish a personal relationshipThe salesperson should establish a personal relationship

with the expressive by telling anecdotal stories, bywith the expressive by telling anecdotal stories, by

socializing outside the office and by relating personalsocializing outside the office and by relating personal

informationinformation



Dr. Rosenbloom


Need Need

IdentificationIdentification

Requires asking probing questions of theRequires asking probing questions of the

prospective customer to determine needs prospective customer to determine needs

The salesperson should ask openThe salesperson should ask open--ended questionsended questions

Make sure that the customer¶s needs and potentialMake sure that the customer¶s needs and potential

concerns are addressedconcerns are addressed



Dr. Rosenbloom


PresentationPresentation

The focus of the sales presentation is theThe focus of the sales presentation is the

salesperson¶s explanation of how the features of thesalesperson¶s explanation of how the features of the

product provide ³benefits´ product provide ³benefits´

Presentation may be flexible or memorizedPresentation may be flexible or memorized

The salesperson should be prepared to provideThe salesperson should be prepared to provide

documentation for any statements of fact that aredocumentation for any statements of fact that are

mademade



Dr. Rosenbloom


Handling Handling

ObjectionsObjections

The salesperson may have failed to provideThe salesperson may have failed to provide

adequate information, or have not demonstratedadequate information, or have not demonstrated

how the product meets the needs of the prospecthow the product meets the needs of the prospect

Objection as a sign of interest on the part of theObjection as a sign of interest on the part of the prospect prospect

Provide information that will ensure the prospect¶sProvide information that will ensure the prospect¶s

confidence in making the purchaseconfidence in making the purchase



Dr. Rosenbloom


Gaining Gaining

Commitment Commitment

Commitment is gained when the prospect agrees toCommitment is gained when the prospect agrees totake the action sought by the salespersontake the action sought by the salesperson

The salesperson must ask for commitmentThe salesperson must ask for commitment



Dr. Rosenbloom


Follow Follow-- UpUp

The salesperson complete any agreed upon actionsThe salesperson complete any agreed upon actions

The salesperson should stay in touch after the sale byThe salesperson should stay in touch after the sale by

writing thank writing thank--you notes, clipping and mailingyou notes, clipping and mailingnewspaper articles of interest to the prospect andnewspaper articles of interest to the prospect and

calling on the customer to ensure the customer¶scalling on the customer to ensure the customer¶s

satisfactionsatisfaction



Dr. Rosenbloom

Sales CertificationSales Certification

Several organizations now offer certification

programs that are designed to increase the professionalism and expertise of the salespeople

Sales and Marketing Executives International (SMEI)Sales and Marketing Executives International (SMEI)

Hospitality Sales and Marketing Association InternationalHospitality Sales and Marketing Association International

(HSMAI)(HSMAI) National Association of Sales Professionals (NASP) National Association of Sales Professionals (NASP)



Dr. Rosenbloom

SalesManagementSalesManagement

Recruit, train, motivate, and evaluate their

sales representatives

Manage territories Develop sales plans and sales forecasts

Identify business opportunities and create

appropriate strategies Encourage the sales team to create added-

value for the customer



Dr. Rosenbloom

Recruiting Recruiting Sales ManagementSales ManagementSales ManagementSales Management

Individuals with desirable salesperson traits

Individuals whose values and goals match

those of the firm

SalespersonSalesperson

Empathetic

Competitive

Goal-oriented

AdaptiveCustome

r-

oriented

Enthusiastic

Organized

Self-motivated



Dr. Rosenbloom

S ales Force Training S ales Force Training

Train the new sales representatives on product

and customer knowledge and selling skills

Sales training is expensive but the pay off is

worth it.

All sales representatives should periodically

receive training to keep up-to-date and to keep

their skills honed

Sales ManagementSales ManagementSales ManagementSales Management



Dr. Rosenbloom

M otivating the S ales Force M otivating the S ales Force

Provide further motivation to salespeople and to

encourage salespeople to focus on the priories of the company

Reward when the pre-specified performance level

(quota) is reached


Sales Force QuotasSales Force Quotas



Dr. Rosenbloom

M otivating the S ales Force M otivating the S ales Force

Regular praising of salespeople and let them know

their efforts are appreciated Rapport-building, open communication, and

modeling behavior

Good sales management feedback


Sales Coaching Sales Coaching



Dr. Rosenbloom


S ales Force Compensation S ales Force Compensation S ales Force Compensation S ales Force Compensation

Regional Salaries



Dr. Rosenbloom



The sales force have greater security butThe sales force have greater security but

no desire to put extra effortsno desire to put extra efforts



Dr. Rosenbloom



A great deal of insecurity due toA great deal of insecurity due to

uncontrollable factors like economicuncontrollable factors like economic

recessionrecession



Dr. Rosenbloom



Bonus paid onBonus paid on

this differencethis difference

Salary plus CommissionSalary plus Commission



Dr. Rosenbloom

Evaluation of Performance Evaluation of Performance

Sales managers should provide continualguidance and feedback

Use more quantitative methods of evaluation

to reduce bias in the evaluation process


Qualitative

factors

communication skills, product knowledge,

attitude, selling skills, initiative/aggressiveness,

appearance/manner, and knowledge of the

competition

Quantitative factors

sales volume in dollars, sales volume to previousyear¶s sales, number of new accounts, net dollar

profits and sales volume by dollar quota



Dr. Rosenbloom

Territory Organization and M anagement Territory Organization and M anagement

Which method to organize the territory?

By product line or by geographical area

Around customer


The salesperson calls on customers that

represent dozens of different industry(more traditional)

The salesperson is asked to call oncustomers in one or two specific industries,

regardless of where the customer is located

geographically



Dr. Rosenbloom


Each salesperson should feel his/her territory offers as

much potential as each colleagues¶ territory Each salesperson should feel the territory division does

not require that he/she work any harder than any other

salesperson


T erritory AllocationT erritory AllocationT erritory AllocationT erritory Allocation



Dr. Rosenbloom


The sales manager should help the sales force maximize

their territories¶ potential

Make sure that the salespeople are not meeting their quotas from the large purchases of one key buyer

Utilize market research to ensure no potential accounts

are being overlooked in any given territory


T erritory Potential T erritory Potential T erritory Potential T erritory Potential



Dr. Rosenbloom

Sales Force TechnologySales Force Technology

The use of technology among sales

forces is growing

Sales managers must be computer

literate

Notebook computers, cellular phones,

and portable fax machines



Dr. Rosenbloom

Sales Force TechnologySales Force Technology

PalmPalmComputing,Computing,

Inc.Inc.



Dr. Rosenbloom

Legal and Ethical issuesLegal and Ethical issues

Obey the instructions of the company Act with ³due diligence´

Be responsible for the company¶s property

Exhibit loyalty Relay information to the company that is

relevant

Salesperson¶s ObligationsSalesperson¶s Obligations



Dr. Rosenbloom

Legal and Ethical issuesLegal and Ethical issues

Company¶s Responsibility Company¶s Responsibility

Comply with any agreement made between thecompany and the salesperson

Reimburse the sales expenses incurred while

carrying out the business

Warn the salesperson of any risks associated with business practices

Protect the salesperson against legal liability



Dr. Rosenbloom

Unethical/Illegal BehaviorsUnethical/Illegal Behaviors

Price discrimination and unfair pricing

Gifts, gratuities, and bribes

Misleading advertising Unfair competitive practices

Defrauding customers

Unfair credit practices

Price collusion with competitive firms



Dr. Rosenbloom

Selling ActivitiesSelling Activities

Performing the salesPerforming the sales

functionfunction

Working with ordersWorking with orders

Servicing the productServicing the product

Servicing the accountServicing the account

Providing theProviding the

information toinformation tomanagementmanagement

Participating inParticipating in

conferences/meetingsconferences/meetings

Training andTraining and

recruitingrecruiting

EntertainingEntertaining

customerscustomers

TravelingTraveling Working withWorking with

distributorsdistributors



Dr. Rosenbloom

Missionary SellingMissionary Selling

Technical SellingTechnical Selling

NewNew--business Sellingbusiness Selling

Retail SellingRetail Selling

Build sales volumeBuild sales volume

by providing by providing

customers withcustomers with promotional promotional

assistance in theassistance in the

form of advertisingform of advertising

and sales promotionand sales promotion

Trade SellingTrade Selling

Specific Types of Sales JobsSpecific Types of Sales Jobs




Dr. Rosenbloom





Where tradeWhere trade

salespeople sell to,salespeople sell to,

missionarymissionarysalespeople sell for salespeople sell for

its direct consumersits direct consumers






Dr. Rosenbloom





Often technicallyOften technically

trained intrained in

chemistry,chemistry,engineering, andengineering, and

computer sciencecomputer science

Support the regular Support the regular sales force or helpsales force or help

sell the productsell the product






Dr. Rosenbloom

Used in industriesUsed in industries

that have one timethat have one time

or very infrequentor very infrequentsales, thus,sales, thus,

salespeople mustsalespeople must

constantly developconstantly develop

new leads tonew leads to

generate salesgenerate sales










Dr. Rosenbloom

Wide range of skillsWide range of skills

requiredrequired

Can requireCan requireknowledge,knowledge,

communicationcommunication

skills, and ability toskills, and ability towork with diversework with diverse

customerscustomers










Dr. Rosenbloom

Telemarketing usesTelemarketing uses

outbound calls to:outbound calls to:

Open new accountsOpen new accounts Qualify advertisingQualify advertising

leadsleads

Service existingService existing

business business










Dr. Rosenbloom

AptitudeAptitude

Skills LevelSkills Level

Motivational LevelMotivational Level

Role PerceptionsRole Perceptions

PersonalPersonal

CharacteristicsCharacteristics

AdaptabilityAdaptability

Salesperson PerformanceSalesperson Performance

Intro to Marketing Chapter 13ppt3809

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