Selling Selling and and
SalespeopleSalespeople
Chapter 1Chapter 1
2
Important Questions about Important Questions about SellingSelling
What is selling?What is selling? Why should you learn about selling Why should you learn about selling
even if you do not plan to be a even if you do not plan to be a salesperson?salesperson?
What is the role of personal selling in What is the role of personal selling in a firm?a firm?
What are the different types of sales What are the different types of sales people?people?
What are the rewards of a selling What are the rewards of a selling career?career?
““Relationship building is Relationship building is definitely the key to business-definitely the key to business-to-business selling.”to-business selling.”
~Jeffrey P. Lynn~Jeffrey P. Lynn
4
SellingSelling
The exchange of products for an The exchange of products for an agreed sum of money agreed sum of money
Part of the process by which Part of the process by which organisations persuade customers to organisations persuade customers to purchase their goods and services purchase their goods and services
Selling is the process of helping Selling is the process of helping someone discover something of valuesomeone discover something of value
5
Sales peopleSales people
Nowadays buying the cheapest is not Nowadays buying the cheapest is not
important to many companies, they important to many companies, they
prefer to develop relationships to be able prefer to develop relationships to be able
to do business on ethical grounds. Sales to do business on ethical grounds. Sales
people play a pivotal role here. people play a pivotal role here.
Sales people identify opportunities to Sales people identify opportunities to
create value and organise resources of create value and organise resources of
their company that the company can their company that the company can
exploit.exploit.
6
Why Learn About Personal Why Learn About Personal Selling?Selling?
Time to knock at the door goneTime to knock at the door gone
The principles of selling are useful to everyone, not The principles of selling are useful to everyone, not
just people with the title of salesperson. just people with the title of salesperson.
Sales means more to give potential solutions to the Sales means more to give potential solutions to the
customers rather than beat the drum of what the customers rather than beat the drum of what the
company sellscompany sells
Internet and other latest technologies involved in Internet and other latest technologies involved in
selling and all the possible resources of the company selling and all the possible resources of the company
(support people etc)(support people etc)
7
Why Learn About Personal Why Learn About Personal Selling?Selling? Selling is a team activity
Rules of Selling are to be followed by all
Very much similar to convincing as we do in our daily lives (with the parents, teachers, employers and friends)
The term Selling was not taken to be a good one, while now every one tries to engage directly/indirectly business development personnel to flourish.
Developing mutually beneficial, long-term Developing mutually beneficial, long-term
relationships is vital to all of us.relationships is vital to all of us.
People in business use selling principles all the time.People in business use selling principles all the time.
8
Technologies used by Sales ForceTechnologies used by Sales Force
Personal SellingPersonal Selling
Personal selling is a person-to-person business activity in which a salesperson uncovers and satisfies the needs of a buyer to the mutual, long-term benefit of both parties.
Personal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale"
10
PERSONAL SELLING PERSONAL SELLING DefinitionDefinition
Seeking out people who have a particular need.
Assisting them to recognize the existence of needs they have that could be met through your offering.
Demonstrating how your offering fills that need.
Persuading qualified prospects that your product will fill their needs.
11
Objectives of Personal SellingObjectives of Personal Selling
Building Product Awareness Building Product Awareness
Creating Interest Creating Interest
Providing Information Providing Information
Stimulating Demand Stimulating Demand
Reinforcing the Brand Reinforcing the Brand
12
Personal Selling ProcessPersonal Selling Process ProspectingProspecting
Making first contactMaking first contact
The sales callThe sales call
Objection handlingObjection handling
Closing the sale Closing the sale to flourishto flourish
13
Comparison to other Comparison to other marketing communications marketing communications
toolstools
Use fewer resourcesUse fewer resources
Products tend to be fairly complex (e.g. Products tend to be fairly complex (e.g. financial services or new cars). financial services or new cars).
There is some contact between buyer and There is some contact between buyer and seller after the sale so that an ongoing seller after the sale so that an ongoing relationship is built. relationship is built.
Client/prospects need specific Client/prospects need specific information. information.
The purchase tends to involve large sums The purchase tends to involve large sums of money.of money.
14
Advantages of using Advantages of using personal selling personal selling Personal selling is a face-to-face activity; customers Personal selling is a face-to-face activity; customers
therefore obtain a relatively high degree of personal therefore obtain a relatively high degree of personal attentionattention
The sales message can be customised to meet the The sales message can be customised to meet the needs of the customerneeds of the customer
The two-way nature of the sales process allows the The two-way nature of the sales process allows the sales team to respond directly and promptly to sales team to respond directly and promptly to customer questions and concernscustomer questions and concerns
PPersonal selling is a good way of getting across large amounts of technical or complex product information
The face-to-face sales meeting gives the sales force chance to demonstrate the product
Frequent meetings between sales force and customer provide an opportunity to build good long-term relationships
15
Main disadvantages of Main disadvantages of using personal sellingusing personal selling
The cost of employing a sales force. Sales The cost of employing a sales force. Sales people are expensive. In addition to the people are expensive. In addition to the basic pay package, a business needs to basic pay package, a business needs to provide incentives to achieve sales provide incentives to achieve sales
A sales person can only call on one A sales person can only call on one customer at a time. This is not a cost-customer at a time. This is not a cost-effective way of reaching a large effective way of reaching a large audience.audience.
16
Selling and MarketingSelling and Marketing Marketing cycle is completed once the Marketing cycle is completed once the
feedback is received and salespeople play feedback is received and salespeople play an important role in bring the feedbackan important role in bring the feedback
Efforts of the company to provide Efforts of the company to provide solutions to the people could be solutions to the people could be accomplished through sales people onlyaccomplished through sales people only
People are informed about the services People are informed about the services and products of a company through the and products of a company through the sales people onlysales people only
Communication MethodsCommunication Methods
18
Strengths and Weaknesses Strengths and Weaknesses of Communication Methodsof Communication Methods
Communication Method
ControlFlexibilit
yCredibilit
yCost
Personal selling M to H H L H
Internet website H M to H L M to H
Mass media advertising
H L L M
Publicity L L H L to M
Word of Mouth L L H L
M = Moderate, H = High, L = Low
19
Integrated Marketing Integrated Marketing CommunicationsCommunications
Many companies use a combination of Many companies use a combination of various communication techniques to various communication techniques to be able to communicate better and be able to communicate better and balance out the pros and cons of each balance out the pros and cons of each communication techniquecommunication technique
20
Sales people and Marketing Sales people and Marketing MixMix
Sales people are eyes and ears of a Sales people are eyes and ears of a company in the marketplacecompany in the marketplace
Learning organisations acquire Learning organisations acquire information from the sales people information from the sales people about environment and make about environment and make organisational decisions based on themorganisational decisions based on them
21
Types of Organisational Types of Organisational LearningLearning
Adaptive LearningAdaptive LearningTo develop knowledge to do present To develop knowledge to do present activities betteractivities better
Generative LearningGenerative LearningTo go beyond the present products, To go beyond the present products, markets, policies and procedures to markets, policies and procedures to develop new insightsdevelop new insights
Sales people contribute to both by Sales people contribute to both by providing in critical information to the providing in critical information to the firm’s strategic systemfirm’s strategic system
22
Main Roles of the Sales ForceMain Roles of the Sales Force Prospecting Prospecting CommunicatingCommunicating Selling Selling ServicingServicing Information gathering Information gathering AllocatingAllocating
23
Contribution from Sales Contribution from Sales peoplepeople
Strategy developmentStrategy development New product developmentNew product development PricingPricing Channel managementChannel management
24
Qualities of High Sales Qualities of High Sales Performers Performers
Sell to people Sell to people Know when to close Know when to close Exchange Information Exchange Information Regularly establish trust Regularly establish trust Engage in certain behaviors Engage in certain behaviors Provide value added to the customer Provide value added to the customer Be perceived as a genuine advocates of Be perceived as a genuine advocates of
prospects’ needs prospects’ needs
25
Salespeople are made not Salespeople are made not born born They are made with Concentrated They are made with Concentrated
attention attention
repeated practice goal oriented direction repeated practice goal oriented direction The skills required to be a successful The skills required to be a successful
salesperson can be learned.salesperson can be learned. Become a student of your profession Become a student of your profession Learn throughout your career Learn throughout your career
Innate characteristics such as personality Innate characteristics such as personality traits, gender, and height are largely traits, gender, and height are largely unrelated to sales performance.unrelated to sales performance.
Companies spend billions of dollars each Companies spend billions of dollars each year on training.year on training.
26
THE SALES EDGE - THE SALES EDGE - EVERYBODY SELLS EVERYBODY SELLS
Human relation skills are basic selling Human relation skills are basic selling skills. skills.
Skills are learned and practiced from Skills are learned and practiced from birth. birth.
Everyone has a base upon which to Everyone has a base upon which to build their selling abilities. build their selling abilities.
27
Activities of SalespeopleActivities of Salespeople SellingSelling Servicing CustomerServicing Customer ReportingReporting
28
SellingSelling Prospecting for new customersProspecting for new customers Increasing sales to existing customersIncreasing sales to existing customers Making sales presentationsMaking sales presentations Demonstrating productsDemonstrating products Negotiating prices and delivery termsNegotiating prices and delivery terms Writing ordersWriting orders
and many moreand many more
29
Servicing CustomerServicing Customer To work with employees of other To work with employees of other
departments to make sure that the departments to make sure that the customers get full benefit of what they customers get full benefit of what they have boughthave bought
Coordinate during meetings to resolve Coordinate during meetings to resolve the problems of the customersthe problems of the customers
30
ReportingReporting Time and money spentTime and money spent Future schedulesFuture schedules Activities of competitorsActivities of competitors Business conditionsBusiness conditions Unsatisfied needs of the customersUnsatisfied needs of the customers
What do Salespeople What do Salespeople do?do?
Client relationship Client relationship managermanager
Account team managerAccount team manager Vendor and channel Vendor and channel
managermanager Information provider Information provider
to their firmto their firm
How Salespeople Spend How Salespeople Spend Their Time Their Time Each WeekEach Week
33
Types of salespeopleTypes of salespeople Selling products to the customers over Selling products to the customers over
the counterthe counter Selling products to the customers in Selling products to the customers in
the showroomsthe showrooms Selling parts to producers to make the Selling parts to producers to make the
productsproducts Selling material to the producers to Selling material to the producers to
make partsmake partsthis chain could be very long…..this chain could be very long…..
Selling and Distribution Selling and Distribution ChannelsChannels
A distributionchannel is a set of people and organizations responsible for the flow of productsand services from the producer to the ultimate user.
Business to Business to businessbusiness Direct salesDirect sales Sales through Sales through
distributorsdistributors
Business to Business to customercustomer Direct salesDirect sales Sales through Sales through
RetailersRetailers Sales through Sales through
Retailers and Retailers and distributorsdistributors
Selling and Distribution Selling and Distribution ChannelsChannels
Business-to-business channelsBusiness-to-business channels
Selling and Distribution Selling and Distribution Channels Channels (continued)(continued)
Consumer channelsConsumer channels
1-36
CLASSIFICATION OF CLASSIFICATION OF SALES JOBS SALES JOBS
Trade sellingTrade selling
Missionary sellingMissionary selling
Technical sellingTechnical selling
Trade sellingTrade selling
Taking orders and field service. Taking orders and field service. Largely involves delivering orders and Largely involves delivering orders and
replenishing inventory. replenishing inventory. Expected to persuade customers to Expected to persuade customers to
provide additional shelf space or more provide additional shelf space or more favorable placement of stock. favorable placement of stock.
Opportunity to increase sales comes most Opportunity to increase sales comes most often through assisting the customer to often through assisting the customer to move a larger volume of inventory. move a larger volume of inventory.
Often actually set up product displays in Often actually set up product displays in retail stores retail stores
Missionary sellingMissionary selling Educate those who ultimately decide Educate those who ultimately decide
what product will be used by the what product will be used by the consumer.consumer.
Often does not see immediate results Often does not see immediate results from their efforts in the way of from their efforts in the way of products sold. products sold.
Still accountable for sales. Still accountable for sales.
Technical sellingTechnical selling Salespeople must also be competent in Salespeople must also be competent in
some technical specialty related to the some technical specialty related to the products being sold. products being sold.
Usually called in by another Usually called in by another salesperson who has already contacted salesperson who has already contacted the prospect and stimulated some the prospect and stimulated some interest. interest.
Often conducted by a sales team. Often conducted by a sales team. Still need real sales skills because their Still need real sales skills because their
role is more than just explaining the role is more than just explaining the technical aspects of the product. technical aspects of the product.
The Sales Job ContinuumThe Sales Job Continuum
43
The Customer is at the The Customer is at the Center of the Sales SystemCenter of the Sales System
44
Major Reasons For Major Reasons For Choosing A Sales CareerChoosing A Sales Career
45
PERSONAL SELLING PERSONAL SELLING DefinitionDefinition
46
A Sales Personnel Career A Sales Personnel Career PathPath
47
Rewards in SellingRewards in Selling
Independence and responsibilityIndependence and responsibility Financial rewardsFinancial rewards Management opportunitiesManagement opportunities Variety and Independence Variety and Independence No set routine No set routine The variety of prospects and their The variety of prospects and their
needs. needs. Professional salespeople are never Professional salespeople are never
unemployed. unemployed.
Average Annual Average Annual Compensation for Compensation for
Salespeople and ManagersSalespeople and Managers
Source: 2004 Salary Survey, Sales & Marketing Management, May 2004, p. 29.
49
Opportunity for Opportunity for Advancement Advancement
Advancement in Direct Selling Advancement in Direct Selling Entrepreneurship Entrepreneurship Promotion to Sales Management Promotion to Sales Management Involvement in Sales Training Involvement in Sales Training Moving Into Top Management Moving Into Top Management
DISADVANTAGES OF A DISADVANTAGES OF A SALES CAREERSALES CAREER
Variable incomeVariable income Long hoursLong hours Travel Travel
51
Success of SellingSuccess of Selling
S
S
U
C
C
Ssuccess
E
S
S
52
Characteristics of Characteristics of Successful SalespeopleSuccessful Salespeople
MotivationMotivation Dependability and Dependability and
trustworthinesstrustworthiness Ethical sales behaviourEthical sales behaviour Customer and product Customer and product
knowledgeknowledge Communication skillsCommunication skills FlexibilityFlexibility Administrative Ability Administrative Ability Emotional intelligenceEmotional intelligence
Enthusiasm Enthusiasm Sincerity Sincerity Goal Direction Goal Direction Resourcefulness Resourcefulness Pleasant Pleasant
PersonalityPersonality Initiative Initiative Ability to Ask Ability to Ask
Questions Questions
Other characteristicsOther characteristics Willing to do what it takes to attain Willing to do what it takes to attain
goals. goals. Ability to find satisfaction in contributing Ability to find satisfaction in contributing
to achievement of the goals set by their to achievement of the goals set by their company. company.
Enjoy serving the needs of others. Enjoy serving the needs of others. Able to stay focused on daily activities. Able to stay focused on daily activities. Strong positive self image Strong positive self image High ethical standards High ethical standards Sensitivity to the needs of others. Sensitivity to the needs of others. Able to win the trust of others Able to win the trust of others
54
Personal Characteristics Personal Characteristics Needed to Sell for Building Needed to Sell for Building
Long-term RelationshipsLong-term Relationships
The Building The Building Partnerships ModelPartnerships Model
You should study personal selling because You should study personal selling because we all use selling techniques.we all use selling techniques.
Salespeople play a vital role in business Salespeople play a vital role in business activities.activities.
Salespeople engage in a wide range of Salespeople engage in a wide range of activities.activities.
The specific duties and responsibilities of The specific duties and responsibilities of salespeople depend on the type of selling salespeople depend on the type of selling position.position.
Research on the characteristics of Research on the characteristics of effective salespeople indicates that many effective salespeople indicates that many different personality types can be different personality types can be successful in sales.successful in sales.
SummarySummary
End of Chapter 1End of Chapter 1
Thank youThank you
Top Related