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CHAPTER FOURTEEN
                               Personal Selling and
                               Customer Service




F...
When we finish this lecture you should


         1. Understand the importance and nature of
              personal sellin...
When we finish this lecture you should


         6. Know what the sales manager must do, including
              selectin...
Marketing Strategy Planning Process
Strategy Planning and Personal Selling (Exhibit 14-1)




CH 13: Promotion
                               CH 14: Personal
...
The Importance and Role of Personal Selling


   Requires strategy
   Requires strategy                      Helping to bu...
What Kinds of Personal Selling Are Needed?



       Order-                    Order-
       Getting                   Tak...
Order Getters Develop New Business Relationships



                               Order Getters and
                     ...
Order Takers Nurture Relationships to Keep the
Business Coming


                                Order Takers and
        ...
Supporting Sales Force Informs and Promotes in the
Channel


         Missionary                  Technical
        Salesp...
Customer Service Promotes the Next Purchase



      Solves problems                   Technical
                         ...
Checking your knowledge

 Julie Jones works for an investment firm. She calls on
 potential clients, introduces them to he...
The Right Structure Helps Assign Responsibility


                    Different
                  Markets, Differ
        ...
Interactive Exercise: Sales Force Workload




               © 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Sometimes Technology Can Substitute for Personal
Selling (Exhibit 14-2)
An Example of Digital Self-Service
Information Technology Provides Tools to Do the Job



                            New
                          Software
...
Using Technology in Personal Selling




              © 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Sound Selection to Build a Sales Force
Training to Meet a Job Description



                           Specific, Written Job
                               Desc...
Selling Skills Can Be Learned
Compensating and Motivating Salespeople


    Level of                      Method of
  Compensation                    Pa...
Interactive Exercise: Sales Force Compensation




              © 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Determining the Choice of the Pay Plan
Flexibility vs. Simplicity (Exhibit 14-3)
Checking your knowledge
 After spending two years in the insurance business, Anne
 McCauley decided to go to graduate scho...
Personal Selling Techniques – Sales Presentations
(Exhibit 14-4b)
Personal Selling Techniques – Sales Presentations
(Exhibit 14-4b)
Three Types of Sales Presentation Approaches May
Be Useful


                      Three
                   Presentation
 ...
Checking your knowledge

 A seller of asset-management services specializes in
 marketing his services to people connected...
An Example of Consultative Selling




              © 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Personal Selling Techniques – Closing and
Follow-Up (Exhibit 14-4)
Checking your knowledge

 Light-the-Way, Inc. sells standard household items such as
 cleaners, trash bags, and light bulb...
You now


          1. Understand the importance and nature of
               personal selling.
          2.   Know the th...
You now


          6. Know what the sales manager must do, including
               selecting, training, and organizing s...
Key Terms


       •    Basic sales tasks   • Team selling
       •    Order getters       • Major accounts
       •    Or...
Key Terms


       • Close
       • Consultative selling
            approach
       •    Selling formula
            appr...
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  1. 1. CHAPTER FOURTEEN Personal Selling and Customer Service For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin www.mhhe.com/fourps
  2. 2. When we finish this lecture you should 1. Understand the importance and nature of personal selling. 2. Know the three basic sales tasks—order getting, order taking, and supporting—and what the various kinds of salespeople can be expected to do. 3. Understand why customer service presents different challenges than other personal selling tasks. 4. Know the different ways sales managers can organize salespeople so that personal selling jobs are handled effectively. 5. Know how sales technology affects the way sales tasks are performed.
  3. 3. When we finish this lecture you should 6. Know what the sales manager must do, including selecting, training, and organizing salespeople to carry out the personal selling job. 7. Understand how the right compensation plan can help motivate and control salespeople. 8. Understand when and where to use the three types of sales presentations.
  4. 4. Marketing Strategy Planning Process
  5. 5. Strategy Planning and Personal Selling (Exhibit 14-1) CH 13: Promotion CH 14: Personal Intro. To Integrated CH 15: Advertising & Selling and Marketing Sales Promotion Customer Service Communications Importance of Personal Strategy Personal selling personal selling selling tasks decisions process
  6. 6. The Importance and Role of Personal Selling Requires strategy Requires strategy Helping to buy decisions decisions is good selling Personal Selling Salespeople Is Salespeople can be strategy Important represent planners whole company Sales force Sales force provides market provides market information information
  7. 7. What Kinds of Personal Selling Are Needed? Order- Order- Getting Taking Basic Sales Tasks Supporting
  8. 8. Order Getters Develop New Business Relationships Order Getters and Order-Getting Producers’ Order Getters Find New Opportunities Wholesalers’ Order Getters Work Closely with Retailers Retail Order Getters Influence Buyer Behavior
  9. 9. Order Takers Nurture Relationships to Keep the Business Coming Order Takers and Order-Taking Producers’ Order Takers Train, Explain & Collaborate Wholesalers’ Order Takers Don’t Get Orders But Keep Them Retail Order Takers Are Often Poor Sales Clerks
  10. 10. Supporting Sales Force Informs and Promotes in the Channel Missionary Technical Salespeople Specialists Supporting Sales Tasks Customer Service Reps
  11. 11. Customer Service Promotes the Next Purchase Solves problems Technical Part of promotion after a purchase Specialists What is Customer Service? Reps are customer advocates
  12. 12. Checking your knowledge Julie Jones works for an investment firm. She calls on potential clients, introduces them to her firm, develops goodwill, and tries to set up contacts between customers and her firm’s account managers. Julie does not manage any accounts herself, but is using her current position as a training opportunity in hopes of moving up to an account manager position. Julie’s current position is that of a: A. order taker. B. order getter. C. missionary salesperson. D. sales manager. E. systems seller.
  13. 13. The Right Structure Helps Assign Responsibility Different Markets, Differ ent Tasks Major Team Selling Accounts Sales Force Sales Force Size and Telemarketing Workload Sales Territories
  14. 14. Interactive Exercise: Sales Force Workload © 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  15. 15. Sometimes Technology Can Substitute for Personal Selling (Exhibit 14-2)
  16. 16. An Example of Digital Self-Service
  17. 17. Information Technology Provides Tools to Do the Job New Software Great Changes New in Handling Tasks Hardware Good Selection Technology and Training Can Be a Needed Competitive Advantage What is Done vs. How It’s Done
  18. 18. Using Technology in Personal Selling © 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  19. 19. Sound Selection to Build a Sales Force
  20. 20. Training to Meet a Job Description Specific, Written Job Description Trained, Not Born All Salespeople Need Training
  21. 21. Selling Skills Can Be Learned
  22. 22. Compensating and Motivating Salespeople Level of Method of Compensation Payment Straight Combination Straight Salary Commission Plan
  23. 23. Interactive Exercise: Sales Force Compensation © 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  24. 24. Determining the Choice of the Pay Plan
  25. 25. Flexibility vs. Simplicity (Exhibit 14-3)
  26. 26. Checking your knowledge After spending two years in the insurance business, Anne McCauley decided to go to graduate school so that she could become qualified to teach high school English. Even though she had a reasonable amount of success in selling insurance, she could not deal with the variability in her income from month to month. She said, “In some months I earn all the money I need in a couple of days. In other months, I can work hard all month long and earn nothing.” She wanted a career with more regular earnings. It sounds as though Anne was on a _________ compensation plan in the insurance business. A. straight commission B. straight salary C. combination D. cost-plus
  27. 27. Personal Selling Techniques – Sales Presentations (Exhibit 14-4b)
  28. 28. Personal Selling Techniques – Sales Presentations (Exhibit 14-4b)
  29. 29. Three Types of Sales Presentation Approaches May Be Useful Three Presentation Approaches Prepared Consultative Selling Formula Approach Approach Approach
  30. 30. Checking your knowledge A seller of asset-management services specializes in marketing his services to people connected with the publishing business, such as authors, book distributors, and bookstore owners. He often gets leads by scanning newspapers and magazines, looking for new authors whose books are favorably reviewed. This searching takes place in the _________ stage of the personal selling process. A. follow-up B. sales presentation C. closing D. prospecting E. prequalification
  31. 31. An Example of Consultative Selling © 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  32. 32. Personal Selling Techniques – Closing and Follow-Up (Exhibit 14-4)
  33. 33. Checking your knowledge Light-the-Way, Inc. sells standard household items such as cleaners, trash bags, and light bulbs via telemarketing. The products are made or packaged by people who are visually impaired. The company donates a percentage of its sales revenue to organizations that provide services to the blind. The telephone sales presentation emphasizes this fact and the quality of the merchandise. The salesperson making the calls reads the same sales script to every potential customer who is called. The only opportunity for the customer to talk comes when the salesperson attempts to close the sale. This is an example of a(n): A. consultative selling approach. B. selling formula approach. C. prospecting approach. D. systems selling approach. E. prepared sales presentation.
  34. 34. You now 1. Understand the importance and nature of personal selling. 2. Know the three basic sales tasks—order getting, order taking, and supporting—and what the various kinds of salespeople can be expected to do. 3. Understand why customer service presents different challenges than other personal selling tasks. 4. Know the different ways sales managers can organize salespeople so that personal selling jobs are handled effectively. 5. Know how sales technology affects the way sales tasks are performed.
  35. 35. You now 6. Know what the sales manager must do, including selecting, training, and organizing salespeople to carry out the personal selling job. 7. Understand how the right compensation plan can help motivate and control salespeople. 8. Understand when and where to use the three types of sales presentations.
  36. 36. Key Terms • Basic sales tasks • Team selling • Order getters • Major accounts • Order getting sales force • Order takers • Telemarketing • Order taking • Sales territory • Supporting • Job description salespeople • Sales quota • Missionary • Prospecting salespeople • Sales presentation • Technical • Prepared sales specialists presentation • Customer service reps
  37. 37. Key Terms • Close • Consultative selling approach • Selling formula approach
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