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9fms pp19

9fms pp19



relationship marketing

relationship marketing



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    9fms pp19 9fms pp19 Presentation Transcript

    • Chapter 19 Management of Personal Selling Sommers  Barnes Ninth Canadian Edition Presentation by Karen A. Blotnicky Mount Saint Vincent University, Halifax, NS Copyright © 200 1 by McGraw-Hill Ryerson Limited
    • Chapter Goals
      • To gain an understanding of:
        • The role that personal selling plays in the economy and the marketing program
        • The variety of jobs in selling
        • The changing patterns in personal selling
        • Major tasks in staffing and operating a sales force
    • Personal Selling
      • Personal (one-to-one/one-to-small group) communication of information designed to persuade someone to buy
      • In many companies, personal selling is the largest single operating expense-- often 8 to 15% of sales.
    • When Personal Selling Works Best
        • The market is concentrated.
        • The product has a high unit value, is technical in nature, and requires a demonstration.
        • The product can be tailored to an individual customer’s need.
        • The sale involves a trade-in.
        • The product is in the introductory stage of the product life cycle.
        • The organization doesn’t have enough money for adequate ad campaign
    • Strengths and Weaknesses of Personal Selling
      • Strengths:
        • It can be adapted for individual customers.
        • It can be focused on prospective customers.
        • It results in the actual sale, while most other forms of promotion are used in moving the customer closer to the sale.
      • Weaknesses:
        • It is costly to develop and operate a sales force.
        • It may be difficult to attract high-calibre people.
    • Two Kinds of Personal Selling
      • The customers come to the salespeople.
        • Mostly involves retail-store selling.
        • Most salespeople fall into this category .
      • The salespeople go to the customers.
        • Usually represent producers or wholesaling middlemen and sell to business users.
        • Some outside selling is relying more on telemarketing.
    • CUSTOMERS COME TO THE SALES PEOPLE SALES FORCE GOES TO THE CUSTOMERS Inside selling: across-the-counter; phone-in orders Primarily retail store selling In-person sales calls Inside sales people contact by mail or telemarketing Primarily producers and wholesaling middlemen selling to business users, but also some: Producers Household consumers Retailers Household consumers Not-for-profit Business users organizations Household consumers Kinds of Selling
    • Jobs in Personal Selling
      • Professional salesperson engages in a total selling job.
        • Manage their time, territories and customers.
        • Work closely with customers to support and train.
      • Wide variety of sales jobs:
        • Driver-salesperson
        • Inside order takers (e.g. retail clerk)
        • Outside order taker (business development)
        • Missionary sales (sales support)
        • Sales engineer
        • Consultative sales person
    • Range of Jobs and Tasks.
        • Execute marketing strategies-- relationships.
        • Represent their company.
        • Work with little or no supervision.
        • Often travel to meet customers.
    • Changing Patterns in Sales
      • the nature of the selling job is changing, reflecting changing market situations
      • selling centres : many firms have organized sales teams
      • systems selling : others now offer their customers a coordinated system and solutions for their problems
      • global sales teams
      • relationship selling: there is considerable emphasis today on the development of relationships with customer
    • Changing Patterns (concluded)
      • telemarketing - innovative use of telecommunications equipment and systems
      • Internet selling and business to business auctions
      • sales force automation (SFA): technology has changed the way many firms sell, relying on telemarketing and data bases
    • The Personal Selling Process (Steps 1 and 2)
      • Prospecting and Qualifying
        • Identify potential customers.
        • Qualifying involves determining whether prospects have the willingness, purchasing power, and authority to buy.
      • Preapproach to Individual Prospects
        • Salespeople must learn how buying decisions are made.
        • Salespeople should also try to find out a prospect’s personal habits and preferences.
    • The Personal Selling Process (Steps 3 to 5)
      • Presenting the Sales Message: AIDA
        • Attract the prospect’s A ttention.
        • Hold the prospect’s I nterest.
        • Build a D esire for the product.
        • Stimulate the A ction of closing the sale.
      • Meet Objections and Close the Sale
        • Objections help clarify customer’s concerns.
      • Postsale Services
        • Deal with cognitive dissonance.
        • Ensure everything happened as it should (delivery).
    • PROSPECTING PREAPPROACH PRESENTATION POSTSALE SERVICES Identifying: Profiles Leads Records Qualifying: Capability Willingness Information Habits Preferences AIDA: Attention Interest Desire Action Meet Objections Close the Sale Reduce dissonance Build goodwill The Personal Selling Process
    • Sales Force Management
      • Effective sales force management starts with a qualified sales manager.
      • The tasks that take up the bulk of sales executives’ time include:
        • Recruitment and selection ( Match candidates with your needs )
        • Assimilation and Training
        • Motivation
        • Compensation
        • Supervision
        • Performance evaluation
    • Recruitment and Selection Assimilation Training Motivation Compen- sation Performance Evaluation Supervision The Sales Management Process
    • Compensation
      • Straight salary
        • Works well for new people, new territories.
        • Good where lengthy negotiations typical.
      • Straight commission
        • Strong incentive, direct reward for effort.
        • Can be hard to control salespeople.
      • A combination plan
        • Most firms do this.
        • Best of both worlds.
    • Performance Evaluation
      • Both quantitative and qualitative factors should serve as bases for performance evaluation.
        • Quantitative bases are specific and objective.
        • Qualitative factors are limited by the subjective judgement of the evaluators.
      • Both inputs (or effort) and outputs (or results) should be used.