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 (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
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.
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:
Inside order takers (e.g. retail clerk)
Outside order taker (business development)
Missionary sales (sales support)
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.
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
Recruitment and Selection Assimilation Training Motivation Compen- sation Performance Evaluation Supervision The Sales Management Process
Works well for new people, new territories.
Good where lengthy negotiations typical.
Strong incentive, direct reward for effort.
Can be hard to control salespeople.
A combination plan
Most firms do this.
Best of both worlds.
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.