CH17

Personal Selling and Sales Management

Chapter 17

Introduction to Sales Personnel

Importance of personal sales:Direct link to the customerMost customers see the sales person as the companyDesigning the sales force internationally is one of the most important functions of the marketing department

“A salesman is someone who sells goods that won’t come back to customers who will.” (Anonymous)

Step 1. Prospecting and Qualifying Step 1. Prospecting and Qualifying

Step 2. Preapproach Step 2. Preapproach

Step 3. Approach Step 3. Approach

Step 4. Presentation/ Demonstration Step 4. Presentation/ Demonstration

Identifying and Screening For Qualified Potential Customers.

Learning As Much As Possible About a Prospective Customer Before Making a Sales Call.

Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start.

Telling the Product “Story” to the Buyer, and Showing the Product Benefits.

Steps in the Selling ProcessSteps in the Selling Process

Step 5. Handling Objections Step 5. Handling Objections

Step 6. Closing Step 6. Closing

Step 7. Follow-Up Step 7. Follow-Up

Seeking Out, Clarifying, and Overcoming Customer Objections to Buying.

Asking the Customer for the Order.

Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business.

Steps in the Selling ProcessSteps in the Selling Process

Factors Affecting the Importance of Personal Selling in the Promotional Mix

Variable Conditions That Favor Personal Selling

Conditions That Favor Advertising

Consumer

Product

Geographically concentrated

Relatively low numbers

Expensive

Technically complex

Custom made

Special handling requirementsTransactions frequently involve trade-ins

Geographically dispersed

Relatively high numbers

Inexpensive

Simple to understand

StandardizedNo special handling requirementsTransactions seldom involve trade-ins

Price Relatively high Relatively low

Channels Relatively short Relatively long

The Evolution of Personal SellingToday’s salesperson is usually a highly-trained professionalSales professionals take a customer-oriented approach employing truthful, nonmanipulative tactics in order to satisfy the long-term needs of both the customer and the selling firmToday’s professional salespeople are problem solvers who seek to develop long-term relationships with customers

Four Sales Channels

Over-the-counter selling: personal selling conducted in retail and some wholesale locations in which customers come to the seller’ place of business

Field selling: sales presentations made at prospective customers’ homes or businesses on a face-to-face basis

Four Sales ChannelsTelemarketing: promotional presentation involving the use of the telephone on an outbound basis by salespeople or on an inbound basis by customers who initiate calls to obtain information and place orders

Inside selling: performing the functions of field selling but avoiding travel-related expenses by relying on phone, mail, and electronic commerce to provide sales and product service for customers on a continuing basis

I. Designing & Recruiting Sales Personnel3 Ways to Design Sales Force

1. Expatriates2. Local Nationals3. Third Country Nationals

Advantages/Disadvantages of all 3:1. Expatriates (declining)• Advantages

– Used most when products are highly technical or requires a lot of information in order to sell

– Familiar with headquarters policies, procedures– Opinions/Ideas are valued more by home office

I. Designing & Recruiting Sales Personnel

Disadvantages– High cost – Cultural and legal barriers– Difficult to recruit – many highly skilled will

not re-locate overseas

Other type of Expatriates– Virtual Expatriates

– Created by the internet and other advanced types of communications, where they manage operations in other countries, but do not move to that country.

I. Designing & Recruiting Sales Personnel2. Local Nationals

Advantages– Most knowledgeable about culture, legal

environments, business structure, distribution networks

Disadvantages– Home office does not see as the “experts” in the field

– Seen as not being familiar with home office procedures, policies

– Not the experts on the products– Difficult to recruit most skilled and knowledgeable

– Recruiting the best may mean taking away from another company or competitor – this goes against some cultural believes where “loyalty” is important

– Crossing Borders 17.3 pg. 521 -“Avon calling – or not?”

I. Designing & Recruiting Sales Personnel3. Third-Country Nationals

Advantages• If recruited within same area most are familiar

with culture, language, how to conduct business

Disadvantages• Host country does not see individual as one of

their own • Many of the same disadvantages to a smaller

scale with the expatriate.

Selecting Sales and Marketing Personnel

• To select personnel for international marketing positions effectively, management must choose individuals who have the following traits:

• To select personnel for international marketing positions effectively, management must choose individuals who have the following traits:

1. Maturity1. Maturity

2. Emotional Stability2. Emotional Stability

3. Breadth of Knowledge3. Breadth of Knowledge

4. Flexibility4. Flexibility

5. Cultural Empathy5. Cultural Empathy

6. Energetic and6. Energetic and

7. Enjoy Travel 7. Enjoy Travel

III. Training Sales PersonnelTypes and method of training differs depending upon type of sales structure

1. Expatriates• Focus is on culture, customs, special foreign issues (not on

products, selling methods, home office policies..)

2. Local Nationals/Third-County Nationals• Focus on product knowledge• More continual training• Methods of training need to be adapted to recipients’ way

of learning

Internet is facilitating faster and more efficient learning for all types of sales structures

IV. Motivating Sales PersonnelWhat motivates people varies from culture to culture

Though some similarities exist in certain cultures, many cultures vary in a number of areas (individual bonuses vs. group bonuses; compensation vs. personal growth, etc)

Designing Compensation SystemsExpatriates

• Things to consider– Countries with high taxes, prefer larger expense accounts, fringe

benefits (things that are non-taxable)– Where the company is multi-national, sales personnel will

compare compensation plans from home country to re-assigned country

Compensating Salespeople Compensating Salespeople

Componentsof

Compensation

PAYCHECK

Sales Force Compensation Plans Can Both Motivate Salespeople and Direct Their Activities.

Benefits

Bonus

Salary

Commission

IV. Motivating Sales Personnel2. Global Sales Force• Allows for most flexibility in creating

compensation plans• See “do’s and don’ts of global compensation”

– pg. 532

Preparing U.S. Personnel for Foreign Assignments

Obstacles to overcome1. Reluctance to accept foreign assignment due to:

• Concerns for career and family (most common)– Career fears relate to “out of sight, out of mind”– Family is uprooted in a very different environment

2. Reducing the rate of early returns• Unsuccessful family adjustment is the single most important

reason for early returns.

3. Ensuring successful return home • Need to have a personal career plan designed to

successfully transition the individual and family back to their home country.

Important Points in Recruiting Sales Personnel & Managers

Important characteristics/skills to look for when recruiting:

Cross-cultural skills• More important in most cases than

technical skills

Language skills• Many believe that the more fluent in

languages, the more culturally sensitive– Crossing Borders 17.6 pg. 525

Evaluating SalespeopleEvaluating Salespeople

AnnualTerritory

Marketing Plan

AnnualTerritory

Marketing Plan

CallReports

CallReports

ExpenseReports

ExpenseReports

WorkPlan

WorkPlan

SalesReportSales

Report

Sourcesof

Information

Sourcesof

Information

Relationship Marketing

Process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.

Based on the idea that important accounts need focused and continuous attention.