Chapter 1 nature of personal selling


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Mktg 5 Sales Management

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Chapter 1 nature of personal selling

  1. 2. <ul><li>It describes the combination of four ingredients that constitute the core a company’s marketing system. </li></ul><ul><li>Four Ingredients: </li></ul><ul><li>Product </li></ul><ul><li>Distribution </li></ul><ul><li>Price </li></ul><ul><li>Promotion </li></ul>
  2. 3. Marketing Mix Place/Distribution Promotion Prices Product Advertising Public Relations Personal Selling Sales Promotio n Internet Sales Management Planning Motivating Budgeting Compensating Recruiting & Selecting Designing Territories Training Evaluating Performance Positions of Personal Selling and Sales Management in the Marketing Mix
  3. 4. <ul><li>Promotional activities form a separate sub mix that we call the Promotional Mix. </li></ul><ul><li>Major Elements: </li></ul><ul><li>Company’s Advertising </li></ul><ul><li>Sales Promotion </li></ul><ul><li>Personal Selling Effort </li></ul>
  4. 6. <ul><li>Sales People must develop close long-term relationships with their problems. These relationship are built on : </li></ul><ul><li>Cooperation </li></ul><ul><li>Trust </li></ul><ul><li>Commitment </li></ul><ul><li>Sharing Information </li></ul>
  5. 7. <ul><li>The process by which the firm builds close & long-term relationship with customers for purpose of creating mutual competitive advantages </li></ul>Relationship Marketing or Relationship Selling <ul><li>Whereby salespeople focus on the immediate one-time sale of the product. </li></ul>
  6. 8. <ul><li>Transaction-Oriented </li></ul><ul><li>Get new accounts </li></ul><ul><li>Get the order </li></ul><ul><li>Cut the price to get the sale </li></ul><ul><li>Manage all accounts to maximize short term sales </li></ul><ul><li>Sell to anyone </li></ul><ul><li>Relationship-Oriented </li></ul><ul><li>Retain existing accounts </li></ul><ul><li>Become the preferred supplier </li></ul><ul><li>Price for profit </li></ul><ul><li>Manage each account for long term profit </li></ul><ul><li>Concentrate on high profit potential accounts </li></ul>
  7. 10. <ul><li>1. Driver-salesperson </li></ul><ul><li>A position in which the salesperson primarily delivers the product – for example, softdrinks, milk,fuel.The selling responsibilities are secondary; few of these people originate sales. </li></ul>
  8. 11. <ul><li>2. Inside order taker </li></ul><ul><li>A position in which the salesperson is primarily an inside order taker – for example, the retail clerk standing behind the counter. </li></ul>
  9. 12. <ul><li>3. Outside order taker </li></ul><ul><li>A position in which the salesperson is primarily an outside order taker going to the customer outside the field. The primary responsibility of the reps is to ensure that their products are getting as much shelf space and promotional attention as possible. </li></ul>
  10. 13. <ul><li>4. Missionary sales person </li></ul><ul><li>A sales job intended to build goodwill, perform promotional activities, and provide information and other services for the customers. They are not expected or permitted to solicit an order. </li></ul>
  11. 14. <ul><li>5. Sales engineer </li></ul><ul><li>A position in which an engineer provides technical advice or assistance with regard to the products and their application to the customers process. </li></ul>
  12. 15. <ul><li>6. Consultative salesperson, tangible goods </li></ul><ul><li>A position that involves the consultative selling of tangible goods. This job is often is difficult because the salesperson must thoroughly understand their customers business </li></ul>
  13. 16. <ul><li>7. Consultative salesperson, services and other intangibles </li></ul><ul><li>A position that calls for selling intangibles. This requires that sales people understand their customer’s needs. They must be able to demonstrate how these services or ideas will contribute to the customers’ profit or well being. </li></ul>
  14. 17. Driver Sales person Inside Order Taker Outside Order Taker Missionary Sales Person Sales Engineer Consultative Sales Person: Tangible Products Consultative Sales Person: Intangible Products Sales Facilitation Sales Support Sales Development
  15. 18. <ul><li>The Sales Force is largely responsible for implementing a firm’s marketing strategies in the field </li></ul><ul><li>Sales People are among the few employees authorized to spend company funds </li></ul><ul><li>Sales People represent their company to their customers and to society in general </li></ul><ul><li>Sales People represent the customer to their companies </li></ul>Sales Representatives operate with little or no direct supervision and require a high degree of motivation Sales Person needs more tact and social intelligence than other employees on the same level in the organization Sales jobs frequently require considerable travel and time away from home and family
  16. 19. The primary responsibility of a Sales Manager is to staff the organization with the right people. <ul><li>Developing a more detailed understanding of a customers business </li></ul><ul><li>Treating Sales People as equal and working in partnership with them to achieve profitability and customer satisfaction </li></ul><ul><li>Applying flexible motivational tools to a hybrid sales force. </li></ul><ul><li>Keeping up to date on the latest technologies affecting buyer-seller relationships. </li></ul><ul><li>Working closely with other internal department </li></ul><ul><li>Continually seeking ways to exceed customer expectations and bring added value to the buyer-seller relationship </li></ul><ul><li>Creating a flexible learning and adapting environment </li></ul>
  17. 20. <ul><li>One of the ironies of sales force management is that sales manager were usually promoted into executive ranks because of their talents as sales people. </li></ul><ul><li>But their success or failure is depended on their administrative skills – skills that may or not have been developed during their time as sales reps. </li></ul>
  18. 21. <ul><li>Although many people with outstanding technical abilities make good administrators, there is considerable evidence that sales talent alone does not make a good manager. </li></ul>
  19. 22. <ul><li>The continuing growth of management development programs indicates that there is a body management knowledge that can be taught and learned. </li></ul>
  20. 23. Staff Assistant available for advises and support at any step along the ladder The executive ladder in personal selling President Vice – President of Sales National Sales Manager Regional/Divisional Sales Manager District Sales Manager Sales Supervisor Sales Person
  21. 24. President Vice President of Marketing Client-Team leader Product engineer Distribution logistics specialist Customer sales/force representative The executive ladder in team selling
  22. 25. <ul><li>Since sales people work away from the company’s facilities , problems like: </li></ul><ul><li>Sales managers cannot directly supervise each rep’s work in person on a daily basis </li></ul><ul><li>Sales manager cannot regularly spend one on one time with the sales people that makes it harder to motivate them. </li></ul><ul><li>Evaluating sales rep’s performance </li></ul><ul><li>Difficult to monitor the ethical behavior of sales reps </li></ul><ul><li>Sales managers face morale problem among outside sales people. </li></ul>
  23. 26. <ul><li>Salespeople help stimulate the economy </li></ul><ul><li>Salespeople help with the diffusion of innovation </li></ul>
  24. 27. <ul><li>Salespeople generate revenue </li></ul><ul><li>Salespeople provide market research and customer feedback </li></ul><ul><li>Salespeople become future leaders in the organization </li></ul>
  25. 28. <ul><li>Salespeople provide solutions to problems </li></ul><ul><li>Salespeople provide expertise and serve as information resources </li></ul><ul><li>Salespeople serve as advocates for the customer when dealing with the selling organization </li></ul>
  26. 29. <ul><li>Stimulus Response Selling </li></ul><ul><li>Mental States Selling </li></ul><ul><li>Need Satisfaction Selling </li></ul><ul><li>Problem Solving Selling </li></ul>
  27. 30. Salesperson Provides Stimuli Buyer Responses Sought Continue Process until Purchase Decision
  28. 31. Attention Interest Conviction Desire Action
  29. 32. Uncover and Confirm Buyer Needs Present Offering to Satisfy Buyer Needs Continue Selling until Purchase Decision
  30. 33. Define Problem Generate Alternative Solutions Continue Selling until Purchase Decision Evaluate Alternative Solutions
  31. 34. In order to be successful in today’s global business environment, salespeople must have a solid relationship building foundation. They must: Possess Excellent Communication Skills Understand Buyer Behavior Behave Ethically Be Trustworthy
  32. 35. In order to be successful in today’s global business environment, salespeople must also think and act strategically. The must develop strategies for: Their Sales Territories Each Sales Call Each Customer Each strategy is related to the other
  33. 36. Adding Value through Follow-up, Self-leadership, and Teamwork <ul><li>Prospecting </li></ul><ul><li>Preapproach </li></ul><ul><li>Presentation Planning </li></ul><ul><li>Approaching the Customer </li></ul><ul><li>Sales Presentation Delivery </li></ul><ul><li>Earning Customer Commitment </li></ul>Developing Customer Relationships Initiating Customer Relationships Enhancing Customer Relationships