Ppt Chapter 20

Principles of MarketingMKT3010

Chapter 20 Personal Selling and Sales Management

Patricia Knowles, Ph.D.

Associate ProfessorClemson University

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Personal Selling and Sales ManagementThese are the learning objectives guiding the chapter and will be explored in more detail in the following slides.

Describe the value added of personal selling.Define the steps in the personal selling process.Describe the key functions involved in managing a sales force.Describe the ethical and legal issues in personal selling.

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Personal SellingTrade shows offer an excellent forum for finding leads to potential customers. These major events are attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry. This environment is a great opportunity for companies to engage in personal selling.


AP Photo/Paul Sakuma.

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The Scope and Nature of Personal SellingMany people are shocked to learn how many employees hold sales positions. Your students may have had experience in retail sales and think that all sales jobs are like that. Remind them that though many retail positions exist, professional sales positions involve a more involved skill set and offer much higher rewards.

Internet Telephone

Face-to-face Teleconference

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Professional Selling as a Career


If you think that you’d like to plan your own schedule and decide how much money you will make - these are just two of the many benefits of professional selling. The visibility of sales positions also offers many opportunities for advancement. This web link is for a website for sales jobs… It would be interesting to look at with the students and what kinds of jobs are available in your area.

• People love the lifestyle

• There is a lot of flexibility

• There is a lot of variety in the job

• Can be very lucrative

• Very visible to management and good for promotions

©Royalty-Free/Corbis

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The Value Added by Personal Selling


You should know how the sales force creates value for the firm through relationship selling. Through relationship selling the sales force: Focuses on building long term customer relationships, contributes to building customer loyalty, assists the firm in identifying new opportunities with existing customers.


• Salespeople Provide Information and Advice

• Salespeople Save Time and Simplify Buying

• Salespeople Build Relationships

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The Personal Selling Process


This graph introduces the personal selling process, which the following slides cover in depth. It also may be used alone in a shortened lecture.

Generate and qualify leads Preapproach

Sales presentation and overcoming

reservations

Closing the sale Follow-up

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Step 1: Generate and Qualify Leads


Often the best source of new customers are other people. Imagine you sell investment properties; list the people you know who might provide you with viable customer contacts. How else might you gather a list of potential customers to contact? Now role play a cold calling scenario, in which one group member “calls” the others. What challenges do you face? Would your task have been easier had you had some introduction to these “customers”?

Sources of Leads

CurrentCustomers

Networking

Events

TheInternet

Trade Shows


Generate Leads The first step in the selling process is to generate a list of potential customers (leads) and assess their potential (qualify).

Cold Calls

Telemarketing



Step 2: Pre-Approach A qualified lead requires a meeting. As the old saying goes, “You never get a second chance to make a first impression,” so salespeople must prepare carefully. Think about what kinds of preparation can help ensure the first meeting goes well. The sales person needs to have investigated the customer’s business and defined how the customer can benefit from the firm’s products/services. If possible the sales person should examine how the customer is currently addressing the needs it is wishing to fulfill.

Extends the qualification procedure

Set goals for what is to be accomplished


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Steps 3: Sales Presentation and Overcoming Reservations


To handle the most difficult part of the sales encounter, salespeople go through extensive training to learn how to deal with reservations

The Presentation

Handling Reservations

Klaus Tiedge/Blend Images/Getty Images

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Aligning the Personal Selling Process with the B2B Buying Process


The B2B process must align closely with the selling process. A seller, for instance, shouldn’t be trying to close a deal when the buyer is just determining the product specifications.


Step 4: Closing the SaleThe “ABCs” of selling suggest salespeople must “Always Be Closing,” but this difficult process requires far more extensive training than that.

• Getting the order

• Often most stressful part of sales process

• A “no” one day may be the foundation for a “yes” another

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Step 5: Follow Up


Salespeople must always remember that the sale is just the beginning of a customer relationship. Think about what methods salespeople can use to ensure they follow up effectively with their customers. Does it differ for B2B versus B2C selling situations? Follow up involves ensuring that customers are satisfied with their purchases. The same techniques are used in both B2B and B2C selling. Most firms now have systems to ensure the after the sale communication is established, either by telephone, email, or in person.

Five Service Quality Dimensions

Reliability

Responsiveness

Assurance

Empathy

Tangibles


Check Yourself

1. Why is personal selling important to an IMC strategy?

2. What are the steps in the personal selling process?

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Managing the Sales Force


Sales management plans, directs, and controls personal selling activities, from recruitment to evaluation.

Managing the Sales

Force

Sales force structure

Recruiting and selecting

salespeople

Sales trainingMotivating and compensating

salespeopleEvaluating

salespeople


Sales Force Structure A company has to decide if it will rely on its own sales force or manufacturers’ reps? Why? If it decides to use its own sales force, how will it assign selling tasks to its salespeople. The company could use a group selling approach or employ individual salespeople for each role?

Company Sales Force

Employees

Established product lines

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Salesperson Duties


Although the life of a professional salesperson is highly varied, sales people generally play three important roles: order getting, order taking, and sales support.

Order Getter

Order Taker

Sales Support PersonnelComstock Images /Jupiter images.


Recruiting and Selecting Salespeople Are salespeople born, or can they be trained? The answer may be a bit of both. Some people possess certain personality elements that suggest their success, but even they need a lot of training.

Personality

Optimism

ResilienceSelf-motivation

Empathy


Recruiting for Success The personality of the sales force should match the personality of the brand. Sometimes companies use personality tests or have the potential salesperson run a mock sales presentations

How does a firm that focuses on a fun product recruit salespeople who exhibit fun?

©Stockbyte/PunchStock


Sales Training Because of their roles as experts, salespeople must possess a lot of knowledge about the products/services they provide. Therefore, all salespeople, regardless of how good or experienced, benefit from training.

Selling and negotiation techniques

Products and service knowledge

Technologies used in the selling process

Time and territory management

Company policies and procedures


Motivating and Compensating Salespeople What would you consider an appropriate sales force incentive, salary or commission? People are motivated by commissions, but commission only salespeople are not as motivated to take care of non-sales related duties. Which would you rather win, a special parking space that says, “salesperson of the month,” or $25? Unless the monetary award is substantial, the recognition by superiors and peers of a job well-done is typically more effective.

Financial Rewards Nonfinancial Rewards

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Evaluating Salespeople By linking the evaluation system to the reward system, management ensures salespeople understand what is expected of them. Should salespeople’s evaluation system be based strictly on sales? Probably not. Unless there are some subjective evaluation criteria such as customer service, teamwork, or relationship building, sales will probably suffer in the long run.

BananaStock/PictureQuest

• Tied to the reward structure

• Evaluation measures can be either objective or subjective


Check Yourself

1. What do sales managers need to do to successfully manage their sales force?

2. What is the difference between monetary and nonmonetary incentives?


Ethical and Legal Issues in Personal Selling Ethical and legal issues in personal selling can be classified into three broad categories.

The Sales Manager and

the Sales Force

The Salesperson and the

Customer


Issues for the Sales Force and Corporate PolicyHow would you handle a situation if you worked for a firm that…

a. Sold alcohol directed towards teenagers;b. Sold high-sugar products to childrenc. Sold mortgages to high risk home buyers?d. Inadequate Hurricane coverage?

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The firm may have a policy to sell goods or services to people who cannot afford them or to people who should not have them.


Issues for the Sales Person and the CustomerHave you ever felt that you have been treated unethically by a salesperson? What happened?

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Have you ever felt that you were treated unethically by a

salesperson?

What happened?


Check Yourself

1. What are three areas of personal selling in which ethical and legal issues are more likely to arise?

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Glossary


Cold calls are a method of prospecting in which sales people telephone or go to see potential clients without appointments.

A company sales force comprises people who are employees of the selling company.

Manufacturer’s representatives are sales people who sell a manufacturer’s products on an extended contract basis but are not employees of the manufacturer.

An order getter is a salesperson whose primary responsibilities are identifying potential customers and engaging those customers in discussions to attempt to make a sale.

An order taker is a salesperson whose primary responsibility is to process routine orders or reorders or rebuys for products.

The pre-approach occurs prior to meeting the customer for the first time and extends the qualification of leads procedure.

Relationship selling is a sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties.

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Glossary


Telemarketing is a method of prospecting in which sales people telephone potential customers without appointments.

Trade shows are attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry.

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