Personal Selling, Relationship Building, and Sales Management Chapter Nine Key Words / Outline Information provision, Pers...
Personal Selling  - Definition <ul><li>Use of personal selling depends partially on the nature of product </li></ul><ul><l...
Sales Process <ul><li>Two basic factors </li></ul><ul><ul><li>The objectives the salesperson is trying to achieve while en...
Sales force Objectives <ul><li>Information provision – especially in the case of new products </li></ul><ul><li>Persuasion...
Building Relationships with Sales
Sales Force Objectives
Prospecting – Locating Potential Customers <ul><li>Lead – a candidate to whom a sale can be made – target of prospecting p...
Prospecting – A Screening Process <ul><li>Does the lead have a want or need that can be satisfied by the purchase of the f...
Common Sources Of Sales Leads <ul><li>Satisfied customers </li></ul><ul><li>Endless chain </li></ul><ul><li>Center of infl...
Planning the Sales Call <ul><li>Research and know your prospect </li></ul><ul><li>Know your product and product line thoro...
Presenting <ul><li>Be well prepared  and set a goal for your presentation </li></ul><ul><li>Develop a checklist of items f...
Overcoming Objections <ul><li>Expect objections to occur at any time </li></ul><ul><ul><li>During efforts to secure appoin...
Obtaining Commitment <ul><li>Moving toward commitment begins with a scheduled presentation </li></ul><ul><li>Know why a pu...
Long-term Relationships <ul><li>Establish and maintain a prospect and customer database </li></ul><ul><li>Monitor orders t...
Cross-Functional Teams <ul><li>Improved sales productivity </li></ul><ul><li>More flexible and quicker decisions </li></ul...
Relationships Lead To Partnerships <ul><li>Functional Relationships:   A relationship where the buyer and the sales person...
Sales Specialists <ul><li>Missionary salespeople – focus on detailing existing products and introducing new ones. (e.g.: p...
Supporting Selling <ul><li>Efficient and effective sales tools, continuous training, and adequate advertising support </li...
Organizing The Sales Force
Organizing The Sales Force
Supporting Selling
Sales Force Control <ul><li>Forecasting sales accurately </li></ul><ul><li>Establishing territories and quotas that benefi...
Sales Force Control <ul><li>Used to establish quotas </li></ul><ul><li>Used to plan the personal selling efforts and other...
Forecasting Methods   <ul><li>Jury of executive method – combines and averages view of top management from various departm...
Sales Territories And Quotas <ul><li>Provide incentives for salespeople </li></ul><ul><li>Provide a quantitative standard ...
Sales Force Technology <ul><li>Selected technology can improve performance </li></ul><ul><li>These elements top the list <...
Sales Force Technology – Tangible  Benefits <ul><li>Better business results </li></ul><ul><li>Increased time spent with cu...
Sales Force Technology – Intangible  Benefits <ul><li>Improved employee motivation and satisfaction </li></ul><ul><li>Bett...
Performance Evaluation: Effort-Oriented Measures <ul><li>Number of sales call made </li></ul><ul><li>Number of MRO calls m...
Performance Evaluation: Results Oriented Measures <ul><li>Sales volume </li></ul><ul><li>Sales volume as a percentage of q...
Performance Incentives <ul><li>Positive feedback </li></ul><ul><li>Company praise </li></ul><ul><li>Bonus </li></ul><ul><l...
Performance Outcomes <ul><li>Sell a greater dollar volume </li></ul><ul><li>Increase sales of more profitable products </l...
Performance Outcomes <ul><li>Secure large average orders </li></ul><ul><li>Secure new customers </li></ul><ul><li>Service ...
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Chapter 9

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Chapter 9

  1. 2. Personal Selling, Relationship Building, and Sales Management Chapter Nine Key Words / Outline Information provision, Persuasion, After-sale service, Prospecting, Planning the sale calls, Random lead generation, Long-term relationship, Obtaining commitment, Strategic partnership, Missionary sales person, Major account management, Cross-functional teams, Forecasting sales, Time-series analysis, Correlation analysis, Salary, Commission © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Marketing Management, 8e
  2. 3. Personal Selling - Definition <ul><li>Use of personal selling depends partially on the nature of product </li></ul><ul><li>Use personal selling when products are </li></ul><ul><ul><li>New and different </li></ul></ul><ul><ul><li>Customizable </li></ul></ul><ul><ul><li>Technically complex </li></ul></ul><ul><ul><li>Expensive and require negotiation </li></ul></ul><ul><ul><li>Installable </li></ul></ul>
  3. 4. Sales Process <ul><li>Two basic factors </li></ul><ul><ul><li>The objectives the salesperson is trying to achieve while engaged in selling activities </li></ul></ul><ul><ul><li>The sequence of stages or steps the salesperson should follow to achieve the objectives </li></ul></ul>
  4. 5. Sales force Objectives <ul><li>Information provision – especially in the case of new products </li></ul><ul><li>Persuasion – distinguishing attributes, creating repeat customers, maximizing sales as a percent of presentations, etc. </li></ul><ul><li>After-sale service – delivery, installation, resolve concerns </li></ul><ul><li>Assure customer satisfaction </li></ul><ul><li>Maximize benefits and margin </li></ul>
  5. 6. Building Relationships with Sales
  6. 7. Sales Force Objectives
  7. 8. Prospecting – Locating Potential Customers <ul><li>Lead – a candidate to whom a sale can be made – target of prospecting process </li></ul><ul><li>Random lead generation – mass appeals that require a high number of contacts to generate qualified leads </li></ul><ul><li>Selected-lead searching – uses existing contact to generate new ones – often called referrals </li></ul>
  8. 9. Prospecting – A Screening Process <ul><li>Does the lead have a want or need that can be satisfied by the purchase of the firm’s products or services? </li></ul><ul><li>Does the lead have ability to pay? </li></ul><ul><li>Does the lead have authority to pay? </li></ul><ul><li>Can the lead be approached favorably? </li></ul><ul><li>Is the lead eligible to buy? </li></ul>
  9. 10. Common Sources Of Sales Leads <ul><li>Satisfied customers </li></ul><ul><li>Endless chain </li></ul><ul><li>Center of influence </li></ul><ul><li>Promotional activities </li></ul><ul><li>List and directories </li></ul><ul><li>Canvassing </li></ul><ul><li>Spotters </li></ul><ul><li>Telemarketing </li></ul><ul><li>Sales letters </li></ul><ul><li>Other sources </li></ul>
  10. 11. Planning the Sales Call <ul><li>Research and know your prospect </li></ul><ul><li>Know your product and product line thoroughly </li></ul><ul><li>Know your competitor’s products and product line </li></ul><ul><li>Know the market for your product(s) and the needs they satisfy </li></ul><ul><li>Schedule time with the prospect </li></ul>
  11. 12. Presenting <ul><li>Be well prepared and set a goal for your presentation </li></ul><ul><li>Develop a checklist of items for discussion </li></ul><ul><li>Schedule an appointment </li></ul><ul><li>Put your contacts at ease </li></ul><ul><li>Strive to make a good impression </li></ul><ul><li>Adapt your style to the prospect </li></ul><ul><li>Work toward your goal </li></ul><ul><li>Schedule follow-up to achieve a sale </li></ul>
  12. 13. Overcoming Objections <ul><li>Expect objections to occur at any time </li></ul><ul><ul><li>During efforts to secure appointments </li></ul></ul><ul><ul><li>During the presentation </li></ul></ul><ul><ul><li>During attempts to obtain a commitment </li></ul></ul><ul><ul><li>During the after-sale follow-up </li></ul></ul><ul><li>In response to an objection, a sales person should not challenge the customer </li></ul><ul><li>Make the necessary presentation in order to help the client make an intelligent decision </li></ul>
  13. 14. Obtaining Commitment <ul><li>Moving toward commitment begins with a scheduled presentation </li></ul><ul><li>Know why a purchase will benefit your prospect </li></ul><ul><li>Ask for commitment (the order)– some trainers say, “Ask early and often” </li></ul><ul><li>An experienced salesperson knows when and how to ask for commitment </li></ul><ul><li>Follow-up with a clear, mutually acceptable action plan </li></ul><ul><li>Be persistent </li></ul>
  14. 15. Long-term Relationships <ul><li>Establish and maintain a prospect and customer database </li></ul><ul><li>Monitor orders to deliver on-time, on-budget </li></ul><ul><li>Ensure appropriate use of your product </li></ul><ul><li>Provide customers ongoing guidance and support </li></ul><ul><li>Analyze customer feedback and respond to anticipate needs and problems </li></ul><ul><li>Assure customer satisfaction through attention and response </li></ul>
  15. 16. Cross-Functional Teams <ul><li>Improved sales productivity </li></ul><ul><li>More flexible and quicker decisions </li></ul><ul><li>Better decisions </li></ul><ul><li>Increased customer satisfaction </li></ul>
  16. 17. Relationships Lead To Partnerships <ul><li>Functional Relationships: A relationship where the buyer and the sales person start relying on each other and communicate honestly </li></ul><ul><li>Strategic partnerships/alliances: Long term relationships where both the parties make significant commitments and investments in each other in order to pursue mutual goals and improved profits </li></ul>
  17. 18. Sales Specialists <ul><li>Missionary salespeople – focus on detailing existing products and introducing new ones. (e.g.: pharmaceuticals) </li></ul><ul><li>Technical sales specialists – support the field sales staff by providing technical assistance and client counsel, when appropriate </li></ul><ul><li>Cross-functional sales team – blend the talents and knowledge of functional areas to better meet client needs </li></ul>
  18. 19. Supporting Selling <ul><li>Efficient and effective sales tools, continuous training, and adequate advertising support </li></ul><ul><li>Efficient follow-up, delivery and reorder systems </li></ul><ul><li>Equitable compensation to reward performance </li></ul><ul><li>Adequate supervision and evaluation of performance for continual improvement </li></ul>
  19. 20. Organizing The Sales Force
  20. 21. Organizing The Sales Force
  21. 22. Supporting Selling
  22. 23. Sales Force Control <ul><li>Forecasting sales accurately </li></ul><ul><li>Establishing territories and quotas that benefit the firm and the sales person mutually </li></ul><ul><li>Analyzing expenses and realigning to improve sales results </li></ul><ul><li>Motivating individual sales persons </li></ul><ul><li>Compensating performance for satisfaction and improvement </li></ul>
  23. 24. Sales Force Control <ul><li>Used to establish quotas </li></ul><ul><li>Used to plan the personal selling efforts and other types of promotional activities </li></ul><ul><li>Used to budget expenses </li></ul><ul><li>Used to plan and coordinate production, logistics, inventories, personnel and so forth </li></ul>
  24. 25. Forecasting Methods <ul><li>Jury of executive method – combines and averages view of top management from various departments </li></ul><ul><li>Sales force composite –the sales force becomes the jury </li></ul><ul><li>Customer expectations – asking customer how much they expect to purchase and by what date </li></ul><ul><li>Time-series analysis – using past data to forecast future sales </li></ul><ul><li>Correlation analysis – analyzing dependent and independent variables driving sales volume </li></ul><ul><li>Other quantitative functions – growth functions and simulation models </li></ul>
  25. 26. Sales Territories And Quotas <ul><li>Provide incentives for salespeople </li></ul><ul><li>Provide a quantitative standard for performance measurement </li></ul><ul><li>Evaluate and control the efforts of the sales force </li></ul><ul><li>Assist individuals with personal goal setting </li></ul>
  26. 27. Sales Force Technology <ul><li>Selected technology can improve performance </li></ul><ul><li>These elements top the list </li></ul><ul><ul><li>Cell phones - 89% </li></ul></ul><ul><ul><li>E-Mail – 85% </li></ul></ul><ul><ul><li>Presentation Software – 85% </li></ul></ul><ul><ul><li>Desktop PCs – 68% </li></ul></ul><ul><ul><li>Notebook Computers – 63% </li></ul></ul><ul><ul><li>Contact Management Software – 55% </li></ul></ul>
  27. 28. Sales Force Technology – Tangible Benefits <ul><li>Better business results </li></ul><ul><li>Increased time spent with customers / clients </li></ul><ul><li>Increased customer satisfaction </li></ul><ul><li>Increased number of promising projects </li></ul><ul><li>Consistent and prompt follow up correspondence </li></ul><ul><li>Increased revenue per salesperson </li></ul><ul><li>Improved customer service </li></ul><ul><li>Better time management </li></ul><ul><li>Improved internal communication </li></ul>
  28. 29. Sales Force Technology – Intangible Benefits <ul><li>Improved employee motivation and satisfaction </li></ul><ul><li>Better trained personnel </li></ul><ul><li>Most recent and pertinent information with easier access </li></ul><ul><li>Increased customer service </li></ul><ul><li>Improved control and understanding of selling expense </li></ul>
  29. 30. Performance Evaluation: Effort-Oriented Measures <ul><li>Number of sales call made </li></ul><ul><li>Number of MRO calls made </li></ul><ul><li>Number of complaints handled </li></ul><ul><li>Number of checks on resellers stocks </li></ul><ul><li>Uncontrollable lost job time </li></ul><ul><li>Number of inquiries followed up </li></ul><ul><li>Number of demonstrations completed </li></ul>
  30. 31. Performance Evaluation: Results Oriented Measures <ul><li>Sales volume </li></ul><ul><li>Sales volume as a percentage of quota </li></ul><ul><li>Sales profitability </li></ul><ul><li>Number of new accounts </li></ul><ul><li>Number of stock outs </li></ul><ul><li>Number of distributors participating in programs </li></ul><ul><li>Number of lost accounts </li></ul><ul><li>Number of customer complaints </li></ul><ul><li>Distributor sales-inventory ratios </li></ul>
  31. 32. Performance Incentives <ul><li>Positive feedback </li></ul><ul><li>Company praise </li></ul><ul><li>Bonus </li></ul><ul><li>Salary increase </li></ul><ul><li>Pay for performance for specific new ideas </li></ul><ul><li>Paid educational allowance </li></ul><ul><li>Earned time off </li></ul><ul><li>Stock options </li></ul><ul><li>Fringe benefits </li></ul><ul><li>Vested Retirement Plan </li></ul><ul><li>Profit Sharing </li></ul>
  32. 33. Performance Outcomes <ul><li>Sell a greater dollar volume </li></ul><ul><li>Increase sales of more profitable products </li></ul><ul><li>Push new products </li></ul><ul><li>Push selected items at designated seasons </li></ul><ul><li>Higher degree of market penetration </li></ul><ul><li>Increase the number of calls made </li></ul>
  33. 34. Performance Outcomes <ul><li>Secure large average orders </li></ul><ul><li>Secure new customers </li></ul><ul><li>Service and maintain existing business </li></ul><ul><li>Reduce turnover of customers </li></ul><ul><li>Achieve full-line (balanced) selling </li></ul><ul><li>Reduce direct-selling costs </li></ul><ul><li>Submit reports and other data promptly </li></ul>

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