Personal Selling Chapter 1

Selling Selling and and

SalespeopleSalespeople

Chapter 1Chapter 1

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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

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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

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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.

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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)

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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.

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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"

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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.

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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

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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

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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.

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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

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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.

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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

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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

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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

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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

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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

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Main Roles of the Sales ForceMain Roles of the Sales Force Prospecting Prospecting CommunicatingCommunicating Selling Selling ServicingServicing Information gathering Information gathering AllocatingAllocating

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Contribution from Sales Contribution from Sales peoplepeople

Strategy developmentStrategy development New product developmentNew product development PricingPricing Channel managementChannel management

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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

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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.

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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.

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Activities of SalespeopleActivities of Salespeople SellingSelling Servicing CustomerServicing Customer ReportingReporting

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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

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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

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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

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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

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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

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The Customer is at the The Customer is at the Center of the Sales SystemCenter of the Sales System

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Major Reasons For Major Reasons For Choosing A Sales CareerChoosing A Sales Career

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PERSONAL SELLING PERSONAL SELLING DefinitionDefinition

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A Sales Personnel Career A Sales Personnel Career PathPath

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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.

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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

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Success of SellingSuccess of Selling

S

S

U

C

C

Ssuccess

E

S

S

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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

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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