Chapter 1 Selling and Salespeople. Why Learn About Personal Selling? Personal selling-a person-to-person business activity in which a salesperson uncovers.

Chapter 1Chapter 1

Selling and Salespeople

Why Learn About Personal Selling?Why Learn About Personal Selling?

Personal selling-a person-to-person business activity in which a salesperson uncovers & satisfies the needs of a buyer to the mutual, long-term benefit of both parties

Everyone sells Principles of selling are useful to everyone (employers, customers, and yourself)

What Do Salespeople Do?What Do Salespeople Do?Depends on jobDepends on job

Client Relationship Manager – many use Six Sigma programs designed to reduce errors – Standard Register used as an example in the book – one of our corporate partners

Account Team Manager – teams work well, if chosen carefully!

Vendor & Channel Manager – see example in text

Information Provider to their firm – use CRM

Distribution ChannelsDistribution ChannelsBusiness-to-BusinessBusiness-to-Business

Two main B-B channels are: (Exhibit 1-3 – P. 11)

Direct Sales to a business customer – call directly on customers – e.g. Nucor and Dow, IBM –examples P.12

Sales through Distributors - Trade salespeople call directly on other manufacturers – e.g. Intel-Arrow Electronics-Hewlett Packard, 3M

Missionary salespeople – promote products ONLY – do not actually sell the product , e.g. Merck, Eli Lilly

Distribution ChannelsDistribution ChannelsConsumer ChannelsConsumer Channels

Direct salespeople–no middlemen-P. 11Trade and retail salespeople sell to

distributors or retailers. Examples: State Farm sells directly to consumersSony uses 4th channel – sells to Best BuyBlack & Decker uses 5th channel –

distributorsFirms can uses more than one channel

Sales Jobs and the Distribution ChannelSales Jobs and the Distribution Channel

Describing Sales JobsDescribing Sales JobsP. 15 – Exhibit 1.4P. 15 – Exhibit 1.4

1)Stage of Relationship: New or continuing?2)Role: Taking orders or creating alternatives?3)Buying Decision: How crucial is it to the

customer? Low? High?4)Contact Location: Field or inside sales?5)Offering: Products or services: Tangible vs.

intangible benefits6)Securing Customer Commitment: The

salesperson’s role – limited or significant

The Sales Job ContinuumThe Sales Job Continuum

Examples of Sales JobsExamples of Sales Jobs

Retail - Best Buy - relationship builders, not just order takers

Trade - Hershey – influencers who handle existing customers – see text for more information

Missionary - Abbott Labs – classic example of missionary salesperson – promote products only

Industrial - IBM capital goods & services, infrequent sales calls, can be for services and/or capital equipment – often new sales calls

What It Takes To Be a Top SalespersonWhat It Takes To Be a Top SalespersonDavid McClellandDavid McClelland

(Substitutes for P. 16-17)(Substitutes for P. 16-17)

Entrepreneurial Drive (achievement motivation research)

• Setting challenging goals for self that exceed those set by the organization for them

• Using time efficiently and measuring their own activities in terms of time

Sensitivity to the Environment

• Extensive memory for minute details related to consumers or sales calls in the past

• Detailed observation skills, demonstrated by an ability to focus on the details of people’s appearance, names, and situational settings

ContinuedContinued

Customer Orientation

• Asking questions to identify critical customer issues, needs, or desires

• Finding ways to establishing a personal level (vs. business level) of contact with the customer (i.e. rapport building)

Cognitive Flexibility

• Making procedural exceptions that are, in the end, of mutual benefit

• Looking for ways to match a customer want with an available service, even one that is not offered by the salesperson’s own organization if it comes to that

Continued

Experiential Learning

• Eagerness to experience new responsibilities and sales techniques that have picked up by observing other

• Ability to learn from their own mistakes

Emotional Intelligence - EIEmotional Intelligence - EI

Definition: The ability to effectively understand and use one’s own emotions and the emotions of people with whom one interacts

4 Aspects: 1) Knowing one’s own feelings & emotions as they are

experienced 2) Controlling one’s emotions to avoid acting

impulsively 3) Recognizing customers’ emotions (empathy) 4) Using one’s emotions to interact effectively with

customers

Are Salespeople Born or Made?Are Salespeople Born or Made?

Hard work , time management, and adapting a sales approach to customers’ needs are learned attributes

Others – not learned?

Bell curve example – on board

Rewards in SellingRewards in Selling

Independence and Responsibility• Freedom, flexibility, and variety

Financial Rewards• Compensation for excellent skills and talent

See P. 20-21

Management Opportunities• Strong foundation of sales skills allow opportunities for

advancement