Marketing Management Chapter 15

8/9/2019 Marketing Management Chapter 15

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Excel BooksMarketing Management Text and Cases,S H H Kazmi15-1

Personal Selling

Marketing Management Text and Cases

Excel Books15-1

Personal Selling15Chapter


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Role of Personal Selling

It is importantto determine the role of personal selling and this is possible by

examining the following factors:

Information to be Exchanged

Product Nature and Selling Situation

Cost Effectiveness


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Personal Selling Tasks

Personal selling function is constantly evolving in response to changes in

marketing environment. These evolutionary stages are:

Provider Stage

Persuader Stage

Prospector Stage

Problem Solving Stage

Procreator Stage


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Personal Selling Responsibilities

Prospecting

Recommending the Solution

Closing Sales

Follow Up


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Characteristics of Top Sales Performers

Ego Strength

A Sense of Urgency

Ego Drive

Empathy

Assertiveness

Willing to Take Risks

Sociable

Abstract Reasoning

Creativity

Scepticism


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Managing Sales ForceDetermination of Sales Force Size

Companies have to determine the size of the sales force they need. A company

may add more salespeople until the last additional member equals the profit of

the sales volume, the sales person is expected to produce. He expressed thisapproach to calculating the size ofthe sales force in a simple formula:

S (p) C = 0

Where:

S= Expected sales volume each additional salesperson will produce.

p = Expected profit margin on sales.

C = Total cost of maintaining the additional salesperson in the field.


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Recruitment & Selection of SalespersonsIt is important for companies to employ and maintain an effective sales force.

Recruitment and selection process involves developing a list of sales positions

and selecting candidates to fill the vacancies. Companies can recruit from

several sources, such as personal recommendations, educational institutions,employment agencies, advertising the vacancies, and other sources.

The process of selection varies widely from one company to another. It could be

just one personal interview, or a more detailed process involving a preliminary

interview, group discussion, written test and detailed personal interview, and

physical check up.


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Training Sales PersonsTo design a training programme, the management focuses on determining the

following training-related issues:

The aim of the training programme.

The course content.

Methods to be used.

Who should conduct the training?

The place where training will be conducted.

Duration and time oftraining.

Training evaluation.

The course contents might cover company policies and procedures, job

responsibilities, company products, their benefits, and applications, problems,

services, warranties, terms and conditions, distribution, selling skills and methods.

For experienced salespersons, there might be refresher courses for existing

products/services, for new -products, and certain selling skills.


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Sales Force CompensationGenerally, compensation programmes use one or more ofthe three basic

approaches.

straight salary system

straight commission plan

combination approach


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Motivating Sales PersonsMotivating sales force refers to making deliberate efforts so that salespeople

do their jobs well.


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Sales Quotas

Companies develop annual sales forecasts. Sales management assigns

quotas to different sales regions based on potential.


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Performance Evaluation of Salespersonssome generally accepted principles of evaluation salespeople:

Must be realistic and reflect territories, competition, experience, and sales

potential etc. as they are.

Salesperson mus

tknow w

hen and

how performance is evalua

ted

.

The evaluation must show a salesperson, what needs improvement and

how to d o it.

It must be motivating and stimulate the salesperson to improve.

It must furnish useful information about a salesperson and the work territory.

The salesperson must be involved in her/his evaluation.

It must be based on objective evaluation standards and not opinions.

It must take into consideration the changing market conditions.

It must be specific to fit the company and the salespeople.

It must be economical.


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Quantitative Standards Quotas

Ratio of Selling Expenses

Territorial Market Share

Call Average Per Customer Class and Total Average

Average Cost Per Call

Average Order Size Per Call

Non-SellingActivities


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Non-Quantitative StandardsThese job aspects affect performance but in their evaluation a subjective element

cannot be ruled out. These may include:

Product and Customer Knowledge.

Customer and Trade Relations.

Quality of Sales Presentation.

Communication Skills.

Punctuality.

Marketing Intelligence.

Job Attitude.

Cooperation.


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ProspectingThe first requirement in personal selling is narrowing down the selling effortto

the targeted customers. Prospecting involves developing and following all the

leads to identify potential target customers and this requires hard work and

propertime management.


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Pre-ApproachOnce the salesperson identifies a set of prospects and customers, the

salesperson should try to learn as much as possible aboutthe individual or

company needs.


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Approach

A salesperson should select an approachthat suits her/his personality and

judgement aboutthe specific sales situation. Some proven techniques include:

Ask Questions

Use a Referral

Offer a Benefit or Service

Complementthe Prospect


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Sales PresentationRelevantto prospect needs, the salesperson presents the product/service story

according to the AIDA model (capture attention, hold interest, stimulate desire,

and get action). The salesperson describes product/service features, their

advantages, benefits (economic, technical, service, and social or psychological),

and the total value prospect gains from making the purchase.

Salespersons can use different approaches to making sales presentation.

stimulus-response theory of learning (sometimes called canned

presentation)

formulated presentation

need-satisfaction approach


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Handling ObjectionsAll salespersons, encounter sales resistance and this resistance often takes the

form of objections. Some ofthese objections may be rational, or may be purely

psychological. These may include product price and quality, company

reputation, preference for competing brand, postponing purchase, and irritation

towards salesperson etc.


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Closing the SaleClosing refers to asking forthe order. Closing is the sum total of all the sales

presentation steps.


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Follow Up

Post-purchase follow up is very important in building customer confidence and

long-term relationship withthe company.

Marketing Management Chapter 15

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