Personal Selling Chapter 1

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  • Page 3
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  • 1. Selling and Salespeople Chapter 1
  • 2. Important Questions about Selling
    • What is selling?
    • Why should you learn about selling even if you do not plan to be a salesperson?
    • What is the role of personal selling in a firm?
    • What are the different types of sales people?
    • What are the rewards of a selling career?
  • 3.
    • “ Relationship building is definitely the key to business-to-business selling.”
    • ~Jeffrey P. Lynn
  • 4. Selling
    • The exchange of products for an agreed sum of money
    • Part of the process by which organisations persuade customers to purchase their goods and services
    • Selling is the process of helping someone discover something of value
  • 5. Sales people
    • Nowadays buying the cheapest is not important to many companies, they prefer to develop relationships to be able to do business on ethical grounds. Sales people play a pivotal role here.
    • Sales people identify opportunities to create value and organise resources of their company that the company can exploit.
  • 6. Why Learn About Personal Selling?
    • Time to knock at the door gone
    • The principles of selling are useful to everyone, not just people with the title of salesperson.
    • Sales means more to give potential solutions to the customers rather than beat the drum of what the company sells
    • Internet and other latest technologies involved in selling and all the possible resources of the company (support people etc)
  • 7. Why Learn About Personal Selling?
    • Selling is a team activity
    • Rules of Selling are to be followed by all
    • Very much similar to convincing as we do in our daily lives (with the parents, teachers, employers and friends)
    • The term Selling was not taken to be a good one, while now every one tries to engage directly/indirectly business development personnel to flourish.
    • Developing mutually beneficial, long-term relationships is vital to all of us.
    • People in business use selling principles all the time.
  • 8. Technologies used by Sales Force
  • 9. Personal Selling Personal selling is a person-to-person business activity in which a salesperson uncovers and satisfies the needs of a buyer to the mutual, long-term benefit of both parties.
    • Personal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale"
  • 10. PERSONAL SELLING Definition
    • Seeking out people who have a particular need.
    • Assisting them to recognize the existence of needs they have that could be met through your offering.
    • Demonstrating how your offering fills that need.
    • Persuading qualified prospects that your product will fill their needs.
  • 11. Objectives of Personal Selling
    • Building Product Awareness
    • Creating Interest
    • Providing Information
    • Stimulating Demand
    • Reinforcing the Brand
  • 12. Personal Selling Process
    • Prospecting
    • Making first contact
    • The sales call
    • Objection handling
    • Closing the sale to flourish
  • 13. Comparison to other marketing communications tools
    • Use fewer resources
    • Products tend to be fairly complex (e.g. financial services or new cars).
    • There is some contact between buyer and seller after the sale so that an ongoing relationship is built.
    • Client/prospects need specific information.
    • The purchase tends to involve large sums of money.
  • 14. Advantages of using personal selling
    • Personal selling is a face-to-face activity; customers therefore obtain a relatively high degree of personal attention
    • The sales message can be customised to meet the needs of the customer
    • The two-way nature of the sales process allows the sales team to respond directly and promptly to customer questions and concerns
    • P ersonal selling is a good way of getting across large amounts of technical or complex product information
    • The face-to-face sales meeting gives the sales force chance to demonstrate the product
    • Frequent meetings between sales force and customer provide an opportunity to build good long-term relationships
  • 15. Main disadvantages of using personal selling
    • The cost of employing a sales force. Sales people are expensive. In addition to the basic pay package, a business needs to provide incentives to achieve sales
    • A sales person can only call on one customer at a time. This is not a cost-effective way of reaching a large audience.
  • 16. Selling and Marketing
    • Marketing cycle is completed once the feedback is received and salespeople play an important role in bring the feedback
    • Efforts of the company to provide solutions to the people could be accomplished through sales people only
    • People are informed about the services and products of a company through the sales people only
  • 17. Communication Methods
  • 18. Strengths and Weaknesses of Communication Methods M = Moderate, H = High, L = Low Communication Method Control Flexibility Credibility Cost Personal selling M to H H L H Internet website H M to H L M to H Mass media advertising H L L M Publicity L L H L to M Word of Mouth L L H L
  • 19. Integrated Marketing Communications
    • Many companies use a combination of various communication techniques to be able to communicate better and balance out the pros and cons of each communication technique
  • 20. Sales people and Marketing Mix
    • Sales people are eyes and ears of a company in the marketplace
    • Learning organisations acquire information from the sales people about environment and make organisational decisions based on them
  • 21. Types of Organisational Learning
    • Adaptive Learning To develop knowledge to do present activities better
    • Generative Learning To go beyond the present products, markets, policies and procedures to develop new insights
    • Sales people contribute to both by providing in critical information to the firm’s strategic system
  • 22. Main Roles of the Sales Force
    • Prospecting
    • Communicating
    • Selling
    • Servicing
    • Information gathering
    • Allocating
  • 23. Contribution from Sales people
    • Strategy development
    • New product development
    • Pricing
    • Channel management
  • 24. Qualities of High Sales Performers
    • Sell to people
    • Know when to close
    • Exchange Information
    • Regularly establish trust
    • Engage in certain behaviors
    • Provide value added to the customer
    • Be perceived as a genuine advocates of prospects’ needs
  • 25. Salespeople are made not born
    • They are made with Concentrated attention
    • repeated practice goal oriented direction
    • The skills required to be a successful salesperson can be learned.
      • Become a student of your profession
      • Learn throughout your career
    • Innate characteristics such as personality traits, gender, and height are largely unrelated to sales performance.
    • Companies spend billions of dollars each year on training.
    • Human relation skills are basic selling skills.
    • Skills are learned and practiced from birth.
    • Everyone has a base upon which to build their selling abilities.
  • 27. Activities of Salespeople
    • Selling
    • Servicing Customer
    • Reporting
  • 28. Selling
    • Prospecting for new customers
    • Increasing sales to existing customers
    • Making sales presentations
    • Demonstrating products
    • Negotiating prices and delivery terms
    • Writing orders and many more
  • 29. Servicing Customer
    • To work with employees of other departments to make sure that the customers get full benefit of what they have bought
    • Coordinate during meetings to resolve the problems of the customers
  • 30. Reporting
    • Time and money spent
    • Future schedules
    • Activities of competitors
    • Business conditions
    • Unsatisfied needs of the customers
  • 31. What do Salespeople do?
    • Client relationship manager
    • Account team manager
    • Vendor and channel manager
    • Information provider to their firm
  • 32. How Salespeople Spend Their Time Each Week
  • 33. Types of salespeople
    • Selling products to the customers over the counter
    • Selling products to the customers in the showrooms
    • Selling parts to producers to make the products
    • Selling material to the producers to make parts this chain could be very long…..
  • 34. Selling and Distribution Channels A distribution channel is a set of people and organizations responsible for the flow of products and services from the producer to the ultimate user.
    • Business to business
      • Direct sales
      • Sales through distributors
    • Business to customer
      • Direct sales
      • Sales through Retailers
      • Sales through Retailers and distributors
  • 35. Selling and Distribution Channels
      • Business-to-business channels
  • 36. Selling and Distribution Channels (continued)
      • Consumer channels
    • Trade selling
    • Missionary selling
    • Technical selling
  • 38. Trade selling
    • Taking orders and field service.
    • Largely involves delivering orders and replenishing inventory.
    • Expected to persuade customers to provide additional shelf space or more favorable placement of stock.
    • Opportunity to increase sales comes most often through assisting the customer to move a larger volume of inventory.
    • Often actually set up product displays in retail stores
  • 39. Missionary selling
    • Educate those who ultimately decide what product will be used by the consumer.
    • Often does not see immediate results from their efforts in the way of products sold.
    • Still accountable for sales.
  • 40. Technical selling
    • Salespeople must also be competent in some technical specialty related to the products being sold.
    • Usually called in by another salesperson who has already contacted the prospect and stimulated some interest.
    • Often conducted by a sales team.
    • Still need real sales skills because their role is more than just explaining the technical aspects of the product.
  • 41. The Sales Job Continuum
  • 42.  
  • 43. The Customer is at the Center of the Sales System
  • 44. Major Reasons For Choosing A Sales Career
  • 45. PERSONAL SELLING Definition
  • 46. A Sales Personnel Career Path
  • 47. Rewards in Selling
    • Independence and responsibility
    • Financial rewards
    • Management opportunities
    • Variety and Independence
    • No set routine
    • The variety of prospects and their needs.
    • Professional salespeople are never unemployed.
  • 48. Average Annual Compensation for Salespeople and Managers Source: 2004 Salary Survey, Sales & Marketing Management, May 2004, p. 29.
  • 49. Opportunity for Advancement
    • Advancement in Direct Selling
    • Entrepreneurship
    • Promotion to Sales Management
    • Involvement in Sales Training
    • Moving Into Top Management
    • Variable income
    • Long hours
    • Travel
  • 51. Success of Selling S S U C C Ssuccess E S S
  • 52. Characteristics of Successful Salespeople
    • Motivation
    • Dependability and trustworthiness
    • Ethical sales behaviour
    • Customer and product knowledge
    • Communication skills
    • Flexibility
    • Administrative Ability
    • Emotional intelligence
    • Enthusiasm
    • Sincerity
    • Goal Direction
    • Resourcefulness
    • Pleasant Personality
    • Initiative
    • Ability to Ask Questions
  • 53. Other characteristics
    • Willing to do what it takes to attain goals.
    • Ability to find satisfaction in contributing to achievement of the goals set by their company.
    • Enjoy serving the needs of others.
    • Able to stay focused on daily activities.
    • Strong positive self image
    • High ethical standards
    • Sensitivity to the needs of others.
    • Able to win the trust of others
  • 54. Personal Characteristics Needed to Sell for Building Long-term Relationships
  • 55. The Building Partnerships Model
  • 56.
    • You should study personal selling because we all use selling techniques.
    • Salespeople play a vital role in business activities.
    • Salespeople engage in a wide range of activities.
    • The specific duties and responsibilities of salespeople depend on the type of selling position.
    • Research on the characteristics of effective salespeople indicates that many different personality types can be successful in sales.
  • 57. End of Chapter 1
  • 58. Thank you