Perspnal Selling
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Perspnal Selling

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Personal Selling

Personal Selling

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    Perspnal Selling Perspnal Selling Presentation Transcript

    • Personal Selling and Direct Marketing MGT 252, lecture 11a
    • Learning Goals
      • Discuss the role of a company’s salespeople in creating value for customers and building customer relationships
      • Identify and explain the six major sales force management steps
      • Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing
      • Define direct marketing and discuss its benefits to customers and companies
      • Identify and discuss the major forms of direct marketing
    • Personal Selling
      • The Nature of Personal Selling
        • Salesperson covers a wide range of positions from order taker to order getter responsible for relationship building
    • Personal Selling
      • Salespeople have many names
        • Agents
        • Sales consultants
        • Sales Representatives
        • Account Executives
        • Sales Engineers
        • District Managers
        • Marketing representatives
        • Account Development Representatives
    • Personal Selling
      • The Role of the Sales Force
        • Two-way personal communication
        • More effective than advertising in complex selling situations
        • The sales force plays a major role in most companies
        • The sales force works to represents the company to customers
        • They also represent the customers to the company
    • Learning Goals
      • Discuss the role of a company’s salespeople in creating value for customers and building customer relationships
      • Identify and explain the six major sales force management steps
      • Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing
      • Define direct marketing and discuss its benefits to customers and companies
      • Identify and discuss the major forms of direct marketing
      • Pharmaceutical companies have extensive sales forces which visit/sell to physicians.
      • What would be the challenges in each step of sales force management for the sales force of a pharmaceutical like Viagra?
      Major Steps in Sales Force Management ?
      • Designing Sales Force Strategy and Structure
        • Sales Force Structure
          • Territorial sales force structure
          • Product sales force structure
          • Customer sales force structure
          • Complex sales force structure
      Managing the Sales Force
    • Managing the Sales Force
      • Sales Force Strategy and Structure
        • Sales Force Size
          • Many companies use the workload approach to set sales force size
        • Other Issues
          • Outside and inside sales forces
          • Team selling
    • Managing the Sales Force
      • Recruiting and Selecting Salespeople
        • Careful recruiting can:
          • Increase overall sales force performance
          • Reduce turnover
          • Reduce recruiting and training costs
      • Traits of Successful Salespeople
        • Intrinsic motivation
        • Disciplined work style
        • The ability to close a sale
        • Ability to build relationships with customers
    • Managing the Sales Force
      • Training Salespeople
        • Training period can be anywhere from a few weeks to a year or more
        • Training is expensive, but yields strong returns
        • Many companies are adding Web-based sales training programs
    • Managing the Sales Force
      • Training Salespeople
        • Training programs have many goals
          • Identify with the company and its products
          • Know about customers and competitors
          • The basics of the selling process
    • Managing the Sales Force
      • Compensating Salespeople
        • Compensation elements: salary, bonuses, commissions, expenses, and fringe benefits
        • Basic compensation plans:
          • Straight salary
          • Straight commission
          • Salary plus bonus
          • Salary plus commission
        • Compensation plans should direct the sales force toward activities that are consistent with overall marketing objectives.
    • Managing the Sales Force
      • Supervising Salespeople
        • Supervision is used to direct and motivate salespeople
        • Companies will vary in how closely they supervise their salespeople; will vary depending on the skill level and maturity of the sales force, and type of selling
      • Tools used:
        • Annual call plans and time-and-duty analysis can help provide direction
        • Sales force automation systems assist in creating more efficient sales force operations
        • The Internet is the fastest-growing sales technology tool
    • Managing the Sales Force
      • Evaluating Salespeople
        • Several tools can be used
          • Sales reports
          • Call reports
          • Expense reports
    • The Personal Selling Process
      • The goal of the personal selling process is to find new customers and sell them something
      • Most salespeople spend their time maintaining existing accounts and building long-term customer relationships
      • Not all steps required in every sale
    • The Personal Selling Process
      • Prospecting and Qualifying
        • Identifying customers that may have a need for the product or service being sold
        • Only a small number of prospects become customers
        • Prospecting requires effort, time, and commitment
    • The Personal Selling Process
      • Preapproach:
        • Learn as much about the prospective customer as possible, prior to approaching them to ask for a meeting
        • Use all resources to learn before meeting
        • Setting call objectives is important to being productive and not wasting the customer’s time
    • The Personal Selling Process
      • Approach:
        • Meeting and greeting the customer for the first time
        • Involves salesperson’s appearance, opening lines, and the follow-up remarks
        • Listening to the customer is crucial
    • The Personal Selling Process
      • Presentation and demonstration:
        • What happens during the sales call
        • Purpose is to uncover needs and then attempt to satisfy them
        • Questioning and listening skills are important
        • Technology can help or get in the way
        • Customers value empathy, honesty, punctuality, reliability, thoroughness, and follow through
    • The Personal Selling Process
      • Handling objections:
        • The salesperson seeks out, clarifies, and overcomes customer objections to buying the product or service
        • Customers object for different reasons: no need, lack of information, product limitation, or as a negotiating tactic
        • Handling objections is important, but preventing them is more effective; need to look at qualifying skills and use of features, advantages, and benefits
    • The Personal Selling Process
      • Closing the sale:
        • Asking the customer to buy (order) the product
        • The only step that produces revenue; most important
        • Fear of rejection makes this step the most difficult
        • Keep it simple, honest, and direct; different types of closing techniques make assumptions that can be dangerous if used improperly
    • The Personal Selling Process
      • Follow-up:
        • What takes place after the sale
        • To ensure customer satisfaction
        • To keep the door open for repeat business
        • Ask for referrals
    • Personal Selling and Customer Relationship Management
      • The principals just described are transaction-oriented
      • Companies want to encourage repeat purchasing because it is more efficient than trying to replace lost customers
      • It takes different skills to build relationships with customers
      • Mutually profitable relationships are built on creating value, offering packaged solutions to problems, and improving products and processes
    • Learning Goals
      • Discuss the role of a company’s salespeople in creating value for customers and building customer relationships
      • Identify and explain the six major sales force management steps
      • Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing
      • Define direct marketing and discuss its benefits to customers and companies
      • Identify and discuss the major forms of direct marketing
    • Direct Marketing
      • Direct Marketing consists of direct one-to-one connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.
    • Direct Marketing
      • The new Direct Marketing Model
        • Direct Marketing is both, a direct marketing channel and an element of the marketing communications mix
        • Technology has made of direct marketing a new and complete model for doing business.
        • Firms employing this direct-marketing model (such as Dell Computer) use it as the only approach
    • Forms of Direct Marketing
      • Telephone marketing: outbound and inbound, suffers from consumer burnout, technology to block calls
      • Direct mail marketing: flexible, personalized, but suffers from junk mail image
      • Catalogue marketing: the big winners in the rise of the Internet; huge cost efficiencies by moving catalogue offering online
      • Direct-response television marketing: infomercials work, despite a poor reputation
      • Kiosk marketing: going where the customers are
      • For buyers:
        • Convenient
        • Easy to use
        • Private
        • Access to a wealth of information
        • Immediate
        • Interactive
      Benefits of Direct Marketing
      • For Sellers
        • Powerful tool for building relationships
        • Allows for targeting of small groups or individuals with customized offers in a personalized fashion
        • Can be timed to reach prospects at the right time
        • Offers access to buyers that couldn’t be reached via other channels
        • Low-cost, effective alternative for reaching specific markets
      Benefits of Direct Marketing
    • Customer Databases and Direct Marketing
      • Customer database: organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data
        • Databases include comprehensive data including geographic, demographic, psychographic and behavioral
        • Databases can be used to identify prospects, tailor products, and maintain customer relationships
        • Database marketing requires substantial investment in hardware, software, personnel
        • Build customer loyalty by tailoring new offers to their specific interests