Personal Selling and Sales-Force Management Chapter 19
The Four Ps of the Marketing Mix <ul><li>Product </li></ul><ul><li>Place (distribution) </li></ul><ul><li>Promotion </li><...
Objectives <ul><li>Explain the conditions that determine the relative importance of personal selling in the promotional mi...
Personal Selling <ul><li>Process of a seller’s person-to-person promotional presentation to a buyer. </li></ul><ul><li>Is ...
Three Types of Salespeople  <ul><li>Fraud </li></ul>
Three Types of Salespeople  <ul><li>Fraud </li></ul><ul><li>Friendly Fraud </li></ul>
Three Types of Salespeople  <ul><li>Fraud </li></ul><ul><li>Friendly Fraud </li></ul><ul><li>Sales Consultant </li></ul>
Factors Affecting the Importance of Personal Selling in the Promotional Mix
Alternative Sales Channels for Serving Customers Over-the-Counter Selling Customers in retail setting With typical, routin...
Telemarketing Are There Downsides? <ul><li>Who has not experienced it -- ringing of the phone just as dinner goes on the t...
Cost of a Sales Call by Industry $133 $154 $158 $200 $262 Manufactures of Industrial Products Services Retailing Manufactu...
Trends in Personal Selling <ul><li>Sell to teams of corporate representatives. </li></ul><ul><li>Answer technical question...
Four Personal Selling Approaches <ul><li>Relationship selling,   a technique for building a mutually beneficial relationsh...
Three Basic Sales Tasks Classification System <ul><li>Order processing. </li></ul><ul><li>Creative selling. </li></ul><ul>...
Developing an Efficient Sales Force <ul><li>Technology and information is helping to develop the most modern, efficient sa...
The AIDA Concept and the Personal Selling Process ATTENTION INTEREST ACTION Step 1  Prospecting and Qualifying Step 2  App...
THE SALES PROCESS Figure 17.6:  The AIDA Concept and the Personal Selling Process
The Sales Process <ul><li>Prospecting:   personal-selling function of identifying potential customers </li></ul><ul><li>Qu...
The Sales Process <ul><li>Approach:   salesperson’s initial contact with a prospective customer </li></ul><ul><li>Precall ...
The Sales Process <ul><li>Presentation:  describing a product’s major features and relating them to a customer’s problems ...
The Sales Process <ul><li>A demonstration allows the customer to experience a good or service </li></ul><ul><li>Even ads a...
Figure 17.7:  Demonstration – A Critical Step in Consumer Decision Making
Demonstration Selling Example:  Software Firm  Extensis Provides 30-Day, Full Versions of Its  Products to Prospects on a ...
The Sales Process <ul><li>Objections:   expressions of sales resistance by the prospect </li></ul><ul><li>Example: A custo...
The Sales Process <ul><li>Closing:  stages of personal selling where the salesperson asks the customer to make a purchase ...
Figure 17.8:  Number of Sales Calls Required to Make a Sale
The Sales Process <ul><li>Follow-up:   postsales activities that often determine whether an individual who has made a rece...
Effective Precall Planning Questions <ul><li>Who are the audience members and what jobs do they perform each day? </li></u...
Methods of Closing a Sale   <ul><li>The “if I can show you . . . ” technique. </li></ul><ul><li>The alternative-decision t...
How Salespeople Spend Their Time Prospecting
How Sales Managers Spend Their Time Administrative Tasks
Motivation <ul><li>Let each salesperson know in detail what is expected. </li></ul><ul><li>Make the work valuable. </li></...
Methods for Measuring Sales Performance <ul><li>Sales volume. </li></ul><ul><li>Profitability. </li></ul><ul><li>Investmen...
Creating an Ethical Sales Environment <ul><li>Promoting ethical awareness during training programs, sales meetings, and sa...
Ethics and Selling & Information FTC Tips <ul><li>How often do you share personal information about yourself with others. ...
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Copyright © 2004 by South-Western, a division of Thomson ...

  1. 1. Personal Selling and Sales-Force Management Chapter 19
  2. 2. The Four Ps of the Marketing Mix <ul><li>Product </li></ul><ul><li>Place (distribution) </li></ul><ul><li>Promotion </li></ul><ul><li>Price </li></ul>
  3. 3. Objectives <ul><li>Explain the conditions that determine the relative importance of personal selling in the promotional mix. </li></ul><ul><li>Contrast over-the-counter selling, field selling, telemarketing, and inside selling. </li></ul><ul><li>Describe each of the four major trends in personal selling. </li></ul><ul><li>Identify the three basic sales tasks. </li></ul><ul><li>Outline the steps in the sales process. </li></ul><ul><li>Describe the sales manager’s boundary-spanning role. </li></ul><ul><li>List and discuss the functions of sales-force management. </li></ul><ul><li>Discuss the role of ethics in personal selling and sales-force management. </li></ul>
  4. 4. Personal Selling <ul><li>Process of a seller’s person-to-person promotional presentation to a buyer. </li></ul><ul><li>Is essentially interpersonal. </li></ul><ul><li>Is basic to any enterprise. </li></ul><ul><li>Personal selling expenses are likely to equal 10 to 15 percent of total sales. </li></ul>
  5. 5. Three Types of Salespeople <ul><li>Fraud </li></ul>
  6. 6. Three Types of Salespeople <ul><li>Fraud </li></ul><ul><li>Friendly Fraud </li></ul>
  7. 7. Three Types of Salespeople <ul><li>Fraud </li></ul><ul><li>Friendly Fraud </li></ul><ul><li>Sales Consultant </li></ul>
  8. 8. Factors Affecting the Importance of Personal Selling in the Promotional Mix
  9. 9. Alternative Sales Channels for Serving Customers Over-the-Counter Selling Customers in retail setting With typical, routine needs Field Selling Customers who need solutions to complex problems Telemarketing New customers and customers of competitors Inside Selling Customers who need answers to frequently asked questions Customers
  10. 10. Telemarketing Are There Downsides? <ul><li>Who has not experienced it -- ringing of the phone just as dinner goes on the table. You answer, it's not a friend, it's not a family member, it's not even from work. It's someone calling to sell you something -- a telemarketer. </li></ul><ul><li>What can you do if you wish to slow down the number of telemarketing calls? </li></ul>
  11. 11. Cost of a Sales Call by Industry $133 $154 $158 $200 $262 Manufactures of Industrial Products Services Retailing Manufactures of Consumer Products Wholesaling SOURCE: sales data reported in “Cost of a A Call Survey,” Sales & Marketing Management , September 2000, p. 82.
  12. 12. Trends in Personal Selling <ul><li>Sell to teams of corporate representatives. </li></ul><ul><li>Answer technical questions. </li></ul><ul><li>Want representatives who understand technical jargon. </li></ul><ul><li>Patience. </li></ul>
  13. 13. Four Personal Selling Approaches <ul><li>Relationship selling, a technique for building a mutually beneficial relationship. </li></ul><ul><li>Consultative selling, involves meeting customer needs by listening to customers, understanding—and caring about—their problems, paying attention to details, and following through after the sale. </li></ul><ul><li>Team selling, in which the salesperson joins with specialists from other functional areas of the firm to complete the selling process. </li></ul><ul><li>Sales-force automation (SFA) - the application of new technologies to the sales process. </li></ul>
  14. 14. Three Basic Sales Tasks Classification System <ul><li>Order processing. </li></ul><ul><li>Creative selling. </li></ul><ul><li>Missionary sales. </li></ul>
  15. 15. Developing an Efficient Sales Force <ul><li>Technology and information is helping to develop the most modern, efficient sales force ever. </li></ul>
  16. 16. The AIDA Concept and the Personal Selling Process ATTENTION INTEREST ACTION Step 1 Prospecting and Qualifying Step 2 Approach Step 3 Presentation Step 4 Demonstration Step 5 Handling Objections DESIRE Step 6 Closing Step 7 Follow-Up AIDA
  17. 17. THE SALES PROCESS Figure 17.6: The AIDA Concept and the Personal Selling Process
  18. 18. The Sales Process <ul><li>Prospecting: personal-selling function of identifying potential customers </li></ul><ul><li>Qualifying: determining that a prospect has the needs, income, and purchase authority necessary for being a potential customer </li></ul>Closing Follow-up Demon-stration Presentation Approach Prospecting and Qualifying Handling Objections © PhotoDisc
  19. 19. The Sales Process <ul><li>Approach: salesperson’s initial contact with a prospective customer </li></ul><ul><li>Precall Planning: use of information collected during the prospecting and qualifying stages of the sales process and during previous contacts with the prospect to tailor the approach and presentation to match the customer’s needs </li></ul>Closing Follow-up Demon-stration Presentation Approach Prospecting and Qualifying Handling Objections © PhotoDisc
  20. 20. The Sales Process <ul><li>Presentation: describing a product’s major features and relating them to a customer’s problems or needs </li></ul>Closing Follow-up Demon-stration Presentation Approach Prospecting and Qualifying Handling Objections © PhotoDisc
  21. 21. The Sales Process <ul><li>A demonstration allows the customer to experience a good or service </li></ul><ul><li>Even ads as well done as the one on the following slide can not substitute for an effective demonstration ride in a new automobile </li></ul>Closing Follow-up Demon-stration Presentation Approach Prospecting and Qualifying Handling Objections © PhotoDisc
  22. 22. Figure 17.7: Demonstration – A Critical Step in Consumer Decision Making
  23. 23. Demonstration Selling Example: Software Firm Extensis Provides 30-Day, Full Versions of Its Products to Prospects on a Trial Basis Copyright © 2001 by Harcourt, Inc. All rights reserved.
  24. 24. The Sales Process <ul><li>Objections: expressions of sales resistance by the prospect </li></ul><ul><li>Example: A customer’s “I don't like the color” is probably their way of asking what other colors are available </li></ul><ul><li>Objections are reasonable and professional salespeople are prepared to handle them appropriately </li></ul>Closing Follow-up Demon-stration Presentation Approach Prospecting and Qualifying Handling Objections © PhotoDisc
  25. 25. The Sales Process <ul><li>Closing: stages of personal selling where the salesperson asks the customer to make a purchase decision </li></ul><ul><li>Nearly 80% of salespeople fail to close when the buyer is ready </li></ul>Closing Follow-up Demon-stration Presentation Approach Prospecting and Qualifying Handling Objections © PhotoDisc
  26. 26. Figure 17.8: Number of Sales Calls Required to Make a Sale
  27. 27. The Sales Process <ul><li>Follow-up: postsales activities that often determine whether an individual who has made a recent purchase will become a repeat customer </li></ul><ul><li>Follow-up helps build mutually beneficial long-term relationships </li></ul>Closing Follow-up Demon-stration Presentation Approach Prospecting and Qualifying Handling Objections © PhotoDisc
  28. 28. Effective Precall Planning Questions <ul><li>Who are the audience members and what jobs do they perform each day? </li></ul><ul><li>What is their level of knowledge? </li></ul><ul><li>What do they want to hear? </li></ul><ul><li>What do they need to hear? </li></ul>
  29. 29. Methods of Closing a Sale <ul><li>The “if I can show you . . . ” technique. </li></ul><ul><li>The alternative-decision technique. </li></ul><ul><li>The SRO (standing-room only) technique. </li></ul><ul><li>Silence. </li></ul><ul><li>An extra-inducement. </li></ul>
  30. 30. How Salespeople Spend Their Time Prospecting
  31. 31. How Sales Managers Spend Their Time Administrative Tasks
  32. 32. Motivation <ul><li>Let each salesperson know in detail what is expected. </li></ul><ul><li>Make the work valuable. </li></ul><ul><li>Make the work achievable. </li></ul><ul><li>Provide immediate and specific feedback. </li></ul><ul><li>Offer rewards that each salesperson values. </li></ul>
  33. 33. Methods for Measuring Sales Performance <ul><li>Sales volume. </li></ul><ul><li>Profitability. </li></ul><ul><li>Investment return. </li></ul>
  34. 34. Creating an Ethical Sales Environment <ul><li>Promoting ethical awareness during training programs, sales meetings, and sales calls. </li></ul><ul><li>Making sure that all employees know that the firm opposes unethical conduct. </li></ul><ul><li>Establishing control systems to monitor ethical conduct. </li></ul>
  35. 35. Ethics and Selling & Information FTC Tips <ul><li>How often do you share personal information about yourself with others. It's so routine that you may not even realize you're doing it. It could be that you wrote a check at the grocery store, charge something at you favorite retailer, rented a car, mailed in your tax return, or bought a gift online, or applied for a credit card. For each transaction you are required to share personal information: your bank and credit card account numbers; your income; your Social Security number (SSN); or your name, address and phone numbers. </li></ul><ul><li>The FTC web site offers tips to help you manage your personal information. </li></ul>
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