9fms pp19


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9fms pp19

  1. 1. 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
  2. 2. Chapter Goals <ul><li>To gain an understanding of: </li></ul><ul><ul><li>The role that personal selling plays in the economy and the marketing program </li></ul></ul><ul><ul><li>The variety of jobs in selling </li></ul></ul><ul><ul><li>The changing patterns in personal selling </li></ul></ul><ul><ul><li>Major tasks in staffing and operating a sales force </li></ul></ul>
  3. 3. Personal Selling <ul><li>Personal (one-to-one/one-to-small group) communication of information designed to persuade someone to buy </li></ul><ul><li>In many companies, personal selling is the largest single operating expense-- often 8 to 15% of sales. </li></ul>
  4. 4. When Personal Selling Works Best <ul><ul><li>The market is concentrated. </li></ul></ul><ul><ul><li>The product has a high unit value, is technical in nature, and requires a demonstration. </li></ul></ul><ul><ul><li>The product can be tailored to an individual customer’s need. </li></ul></ul><ul><ul><li>The sale involves a trade-in. </li></ul></ul><ul><ul><li>The product is in the introductory stage of the product life cycle. </li></ul></ul><ul><ul><li>The organization doesn’t have enough money for adequate ad campaign </li></ul></ul>
  5. 5. Strengths and Weaknesses of Personal Selling <ul><li>Strengths: </li></ul><ul><ul><li>It can be adapted for individual customers. </li></ul></ul><ul><ul><li>It can be focused on prospective customers. </li></ul></ul><ul><ul><li>It results in the actual sale, while most other forms of promotion are used in moving the customer closer to the sale. </li></ul></ul><ul><li>Weaknesses: </li></ul><ul><ul><li>It is costly to develop and operate a sales force. </li></ul></ul><ul><ul><li>It may be difficult to attract high-calibre people. </li></ul></ul>
  6. 6. Two Kinds of Personal Selling <ul><li>The customers come to the salespeople. </li></ul><ul><ul><li>Mostly involves retail-store selling. </li></ul></ul><ul><ul><li>Most salespeople fall into this category . </li></ul></ul><ul><li>The salespeople go to the customers. </li></ul><ul><ul><li>Usually represent producers or wholesaling middlemen and sell to business users. </li></ul></ul><ul><ul><li>Some outside selling is relying more on telemarketing. </li></ul></ul>
  7. 7. 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
  8. 8. Jobs in Personal Selling <ul><li>Professional salesperson engages in a total selling job. </li></ul><ul><ul><li>Manage their time, territories and customers. </li></ul></ul><ul><ul><li>Work closely with customers to support and train. </li></ul></ul><ul><li>Wide variety of sales jobs: </li></ul><ul><ul><li>Driver-salesperson </li></ul></ul><ul><ul><li>Inside order takers (e.g. retail clerk) </li></ul></ul><ul><ul><li>Outside order taker (business development) </li></ul></ul><ul><ul><li>Missionary sales (sales support) </li></ul></ul><ul><ul><li>Sales engineer </li></ul></ul><ul><ul><li>Consultative sales person </li></ul></ul>
  9. 9. Range of Jobs and Tasks. <ul><ul><li>Execute marketing strategies-- relationships. </li></ul></ul><ul><ul><li>Represent their company. </li></ul></ul><ul><ul><li>Work with little or no supervision. </li></ul></ul><ul><ul><li>Often travel to meet customers. </li></ul></ul>
  10. 10. Changing Patterns in Sales <ul><li>the nature of the selling job is changing, reflecting changing market situations </li></ul><ul><li>selling centres : many firms have organized sales teams </li></ul><ul><li>systems selling : others now offer their customers a coordinated system and solutions for their problems </li></ul><ul><li>global sales teams </li></ul><ul><li>relationship selling: there is considerable emphasis today on the development of relationships with customer </li></ul>
  11. 11. Changing Patterns (concluded) <ul><li>telemarketing - innovative use of telecommunications equipment and systems </li></ul><ul><li>Internet selling and business to business auctions </li></ul><ul><li>sales force automation (SFA): technology has changed the way many firms sell, relying on telemarketing and data bases </li></ul>
  12. 12. The Personal Selling Process (Steps 1 and 2) <ul><li>Prospecting and Qualifying </li></ul><ul><ul><li>Identify potential customers. </li></ul></ul><ul><ul><li>Qualifying involves determining whether prospects have the willingness, purchasing power, and authority to buy. </li></ul></ul><ul><li>Preapproach to Individual Prospects </li></ul><ul><ul><li>Salespeople must learn how buying decisions are made. </li></ul></ul><ul><ul><li>Salespeople should also try to find out a prospect’s personal habits and preferences. </li></ul></ul>
  13. 13. The Personal Selling Process (Steps 3 to 5) <ul><li>Presenting the Sales Message: AIDA </li></ul><ul><ul><li>Attract the prospect’s A ttention. </li></ul></ul><ul><ul><li>Hold the prospect’s I nterest. </li></ul></ul><ul><ul><li>Build a D esire for the product. </li></ul></ul><ul><ul><li>Stimulate the A ction of closing the sale. </li></ul></ul><ul><li>Meet Objections and Close the Sale </li></ul><ul><ul><li>Objections help clarify customer’s concerns. </li></ul></ul><ul><li>Postsale Services </li></ul><ul><ul><li>Deal with cognitive dissonance. </li></ul></ul><ul><ul><li>Ensure everything happened as it should (delivery). </li></ul></ul>
  14. 14. 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
  15. 15. Sales Force Management <ul><li>Effective sales force management starts with a qualified sales manager. </li></ul><ul><li>The tasks that take up the bulk of sales executives’ time include: </li></ul><ul><ul><li>Recruitment and selection ( Match candidates with your needs ) </li></ul></ul><ul><ul><li>Assimilation and Training </li></ul></ul><ul><ul><li>Motivation </li></ul></ul><ul><ul><li>Compensation </li></ul></ul><ul><ul><li>Supervision </li></ul></ul><ul><ul><li>Performance evaluation </li></ul></ul>
  16. 16. Recruitment and Selection Assimilation Training Motivation Compen- sation Performance Evaluation Supervision The Sales Management Process
  17. 17. Compensation <ul><li>Straight salary </li></ul><ul><ul><li>Works well for new people, new territories. </li></ul></ul><ul><ul><li>Good where lengthy negotiations typical. </li></ul></ul><ul><li>Straight commission </li></ul><ul><ul><li>Strong incentive, direct reward for effort. </li></ul></ul><ul><ul><li>Can be hard to control salespeople. </li></ul></ul><ul><li>A combination plan </li></ul><ul><ul><li>Most firms do this. </li></ul></ul><ul><ul><li>Best of both worlds. </li></ul></ul>
  18. 18. Performance Evaluation <ul><li>Both quantitative and qualitative factors should serve as bases for performance evaluation. </li></ul><ul><ul><li>Quantitative bases are specific and objective. </li></ul></ul><ul><ul><li>Qualitative factors are limited by the subjective judgement of the evaluators. </li></ul></ul><ul><li>Both inputs (or effort) and outputs (or results) should be used. </li></ul>