© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

19-2© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

L E A R N I N G O B J E C T I V E S

Learning Objectives

How does personal selling add value? What is the personal selling process? How do technology and the Internet

affect personal selling? What are the key functions of a sales

manager?

19-3© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Mary Kay Inc.

Beauty Consultants Retain gross profits

on each product Earn commissions

on their sales teams

19-4© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Scope and Nature of Personal Selling

Internet Telephone

Face-to-face

Teleconference

19-5© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Professional Selling as a Career

People love the lifestyle There is a lot of

flexibility There is a lot of variety

in the job Can be very lucrative Very visible to

management and good for promotions Sales Jobs

Website

19-6© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Personal Selling and Marketing Strategy

Can customize the message for a specific buyer

Assists in creating strong supply chain relationships

Increased customer loyalty through relationship selling

Gather research input from customers

Crucial to the success of CRM

19-7© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Personal Selling Process

19-8© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Step One: Generate and Qualify Leads

Sources of Leads

CurrentCustomers

NetworkingEvents

TheInternet

Trade Shows

19-9© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Generate Leads

Cold calls

Telemarketing

19-10© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Step Two: Preapproach

Extends the qualification procedure

Set goals for what is to be accomplished

19-11© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Step Three: Sales Presentation and Overcoming Reservations

The presentation

Handling reservations

19-12© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Aligning the Personal Selling Process with the B2B Buying

Process

19-13© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Step Four: Closing the Sale

Getting the order Often most

stressful part of sales process

A “no” one day may be the foundation for a “yes” another

19-14© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Step Five: Follow-Up

Five Service Quality DimensionsReliability

Responsiveness

Assurance

Empathy

Tangibles

19-15© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

1. What are the steps in the personal selling process?

2. How does the selling process impact the business to business buying process?

Check Yourself

19-16© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Impact of Technology and the Internet on Personal Selling

Instant access to their customers

Access to customer research and information

Training programs are more effective, easier to operate, less expensive

Less time on order tracking

Salesforce.com Website

19-17© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Ethical and Legal Issues in Personal Selling

The Sales Manager

andThe Sales

Force

The Sales Forceand

Corporate Policy

The Salesperso

nand The

Customer

19-18© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Issues for the Sales Force and Corporate Policy

The firm may have a policy to sell goods or services to people who

cannot afford them or to people who should not have them.

19-19© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Issues for the Sales Person and the Customer

Have you ever felt that you were treated

unethically by a salesperson? What

happened?

19-20© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Managing the Sales Force

Managing the Sales Force

Sales force structure

Recruiting and selecting

salespeopleSales trainingMotivating and

compensating salespeopleEvaluating

salespeople

19-21© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sales Force Structure

Company sales force Employees Established product lines

Manufacturers representatives (independent agents) Not employees Smaller firms New markets

19-22© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Salesperson Duties

Order getter

Order taker

Sales support personnel

19-23© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Recruiting and Selecting Salespeople

Personality

Optimism

ResilienceSelf-

motivation

Empathy

19-24© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Recruiting for Success

How does a firm that focuses on a fun product recruit salespeople who exhibit fun?

19-25© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sales TrainingSelling and negotiation techniquesProducts and service knowledgeTechnologies used in the selling processTime and territory managementCompany policies and procedures

19-26© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Motivating and Compensating Salespeople

Financial rewards Nonfinancial rewards

19-27© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Evaluating Salespeople

Tied to the reward structure

Evaluation measures can be either objective or subjective

19-28© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

1. What do sales managers need to do to successfully manage their sales force?

2. What is the difference between monetary and nonmonetary incentives?

Check Yourself

19-29© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

GlossaryCold calls are a method of prospecting in

which sales people telephone or go to see potential clients without appointments.

Return to slide

19-30© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

GlossaryA company sales force comprises people

who are employees of the selling company.

Return to slide

19-31© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

GlossaryManufacturer’s representatives are

sales people who sell a manufacturer’s products on an extended contract basis but are not employees of the manufacturer.

Return to slide

19-32© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

GlossaryAn order getter is a salesperson whose

primary responsibilities are identifying potential customers and engaging those customers in discussions to attempt to make a sale.

Return to slide

19-33© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

GlossaryAn order taker is a salesperson whose

primary responsibility is to process routine orders or reorders or rebuys for products.

Return to slide

19-34© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

GlossaryThe preapproach occurs prior to meeting

the customer for the first time and extends the qualification of leads procedure.

Return to slide

19-35© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

GlossaryRelationship selling is a sales philosophy

and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties.

Return to slide

19-36© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

GlossaryTelemarketing is a method of prospecting

in which sales people telephone potential customers without appointments.

Return to slide

19-37© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

GlossaryTrade shows are attended by buyers who

choose to be exposed to products and services offered by potential suppliers in an industry.

Return to slide