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Transcript

  • 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. 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
  • 3. 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.
  • 4. 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
  • 5. 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.
  • 6. 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.
  • 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. 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
  • 9. Range of Jobs and Tasks.
      • Execute marketing strategies-- relationships.
      • Represent their company.
      • Work with little or no supervision.
      • Often travel to meet customers.
  • 10. 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
  • 11. 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
  • 12. 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.
  • 13. 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).
  • 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. 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
  • 16. Recruitment and Selection Assimilation Training Motivation Compen- sation Performance Evaluation Supervision The Sales Management Process
  • 17. 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.
  • 18. 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.