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Chapter 16
Personal Selling and Sales Management
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Nature of Personal Selling
Most salespeople are well-educated, well-trained professionals who work to build and maintain long-term relationships with customers.The term salesperson covers a wide spectrum of positions from: Order taker (department store salesperson) Order getter (someone engaged in creative
selling) Missionary salesperson (building goodwill or
educating buyers)
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What is Personal Selling?
Involves Two-Way, Personal Communication Between
Salespeople and Individual Customers Whether:
face to face,by telephone,through video conferencing,or by other means.
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The Role of the Sales Force
Personal selling is effective because salespeople can: probe customers to learn more about
their problems, adjust the marketing offer to fit the
special needs of each customer, negotiate terms of sale, and build long-term personal relationships
with key decision makers.
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The Role of the Sales Force
Sales Force Serves as a Critical Link
Between a Company and its Customers Since They:
Represent Customers to
the Company to Produce Customer
Satisfaction
Represent the Company to
Customers to Produce Company Profit
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Designing Salesforce Strategy and StructureDesigning Salesforce Strategy and Structure
Recruiting and Selecting SalespeopleRecruiting and Selecting Salespeople
Training SalespeopleTraining Salespeople
Compensating SalespeopleCompensating Salespeople
Supervising SalespeopleSupervising Salespeople
Evaluating SalespeopleEvaluating Salespeople
Major Steps in Sales Force Management (Fig. 16.1)
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Territorial Exclusive Territory to Sell the Company’s Full Product Line
ProductSales Force Sells Only a Portion of The Company’s Products or Lines
CustomerSales Force Sells Only to Certain
Customers or Industries
Designing Sales Force Strategy and Structure
Complex Forms Are a Combination of
Any Types of Sales Force Structures
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Sales Force SizeSalespeople are one of a company’s most productive and expensive assets.Sales forces have been shrinking in size because of: Advances in selling technology, Recent merger mania.
Many companies use some form of workload approach to set sales force size: Group accounts into different size classes, How many people are needed to call on them.
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Inside SalesForce
Inside SalesForce
Outside Sales Force
Outside Sales Force
Travel to Call on Customers
Travel to Call on Customers
Sells to MajorAccounts
Sells to MajorAccounts
Finds MajorNew
Prospects
Finds MajorNew
Prospects
Conduct Business From Their Offices Via Phone or Buyer VisitsConduct Business From Their
Offices Via Phone or Buyer Visits
TechnicalSupportPeople
TechnicalSupportPeople
Tele-Marketing
OrInternet
Tele-Marketing
OrInternet
Other Sales Force Strategy and Structure Issues
SalesAssistants
SalesAssistants
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Team SellingMost companies are now using team selling to service large, complex accounts.Finds problems, solutions, and sales opportunities.Problems: can overwhelm customers, difficulties working with teams, evaluation of sales performance.
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Some Traits of Good Salespeople
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College Students
Recommendations for Recruiting Salespeople
Classified Ads
Employment Agencies
Current Salespeople
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Selection Process Usually
Evaluates a Person’s
Other CharacteristicsOther Characteristics
Personality TraitsPersonality Traits
Sales AptitudeSales Aptitude
Analytical andOrganizational Skills
Analytical andOrganizational Skills
Selecting Salespeople
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Help Salespeople Know & IdentifyWith the Company
Learn About the Products
Learn About Competitors’and Customers’ Characteristics
Learn How to MakeEffective Presentations
The Average Sales Training Program lasts for Four Months and Has the Following Goals:
Training Salespeople
Understand Field Proceduresand Responsibilities
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Fixed Amount
Usually a Salary
Fixed Amount
Usually a Salary
VariableAmount
UsuallyCommissionsOr Bonuses
VariableAmount
UsuallyCommissionsOr Bonuses
To Attract Salespeople, a Company Must Have anAttractive Plan Made Up of Several Elements
To Attract Salespeople, a Company Must Have anAttractive Plan Made Up of Several Elements
Expense Allowance
For Job Related
Expenses
Expense Allowance
For Job Related
Expenses
Compensating Salespeople
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Supervising Salespeople Directing Salespeople• Identify Customer Targets
& Call Norms
• Develop Prospect Target
• Use Sales Time Efficiently Annual Call Plan Time-and-Duty Analysis Sales Force Automation
Directing Salespeople• Identify Customer Targets
& Call Norms
• Develop Prospect Target
• Use Sales Time Efficiently Annual Call Plan Time-and-Duty Analysis Sales Force Automation
Motivating Salespeople
• Organizational Climate
• Sales Quotas
• Positive Incentives Sales Meetings Sales Contests Honors and Trips Merchandise/ Cash
Motivating Salespeople
• Organizational Climate
• Sales Quotas
• Positive Incentives Sales Meetings Sales Contests Honors and Trips Merchandise/ Cash
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Administrative Tasks16%
TelephoneSelling
25.1%
Waiting/ Traveling
17.4%
Service Calls12.7%
Face-to-Face Selling
28.8%
Companies Look For Ways to Increase the Amount of Time Salespeople Spend Selling.
How Salespeople Spend Their Time (Fig. 16.2)
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Evaluating SalespeopleManagement gets information about its salespeople in several ways: Sales reports, call reports, expense reports, and Personal observations, customer surveys, etc.
Formal evaluation of performance can be done qualitatively or quantitatively.Evaluation methods of performance include: Comparing salespeople’s performance to others, Comparing current sales with past sales.
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Discussion ConnectionsAs you did at the start of the chapter, envision a typical salesperson. Have your perceptions of salespeople changed
after what you’ve just read and discussed? How? Be specific.
Many people feel they do not have the attributes and abilities required for successful selling. What role does training play in helping a person develop selling skills and abilities?State what your career ambition is and briefly state how you might be involved in selling.
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Major Steps in Effective Selling (Fig. 16.3)
Prospecting and Qualifying
Preapproach
Approach
Presentation and Demonstration
Handling objections
Closing
Follow-up
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ProspectingProspecting Salesperson Identifies Qualified Potential Customers.
Salesperson Identifies Qualified Potential Customers.
PreapproachPreapproachSalesperson Learns as Much as Possible About a Prospective
Customer Before Making a Sales Call.
Salesperson Learns as Much as Possible About a Prospective
Customer Before Making a Sales Call.
QualifyingQualifyingProcess of Identifying Good
Prospects and Screening Out Poor Ones.
Process of Identifying Good Prospects and Screening Out Poor
Ones.
Steps in the Selling Process
ApproachApproachSalesperson Meets the Buyer and
Gets the Relationship Off to a Good Start.
Salesperson Meets the Buyer and Gets the Relationship Off to a Good
Start.
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PresentationPresentationSalesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction Approach.
Salesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction Approach.
ClosingClosing Salesperson Asks the Customer for an Order.
Salesperson Asks the Customer for an Order.
Handling ObjectionsHandling
ObjectionsSalesperson Seeks Out, Clarifies,
and Overcomes Customer Objections to Buying.
Salesperson Seeks Out, Clarifies, and Overcomes Customer
Objections to Buying.
Steps in the Selling Process
Follow-UpFollow-UpOccurs After the Sale and Ensures Customer Satisfaction and Repeat
Business.
Occurs After the Sale and Ensures Customer Satisfaction and Repeat
Business.
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What is Relationship Marketing?
Relationship Marketing is the Process of Creating,
Maintaining, and Enhancing Strong, Value-Laden
Relationships With Customers and Other Stakeholders.
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Review of Concept Connections
Discuss the role of a company’s salespeople in creating value for customers and building customer relationships.Explain how companies design sales force strategy and structure.Explain how companies recruit, select, and train salespeople.Describe how companies compensate and supervise salespeople, and how they evaluate sales force effectiveness.Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing.