Summary Overview In serving a particular target market, one of the key elements of the promotion mix is personal selling. Salespeople are communicators who build relationships . Key Issues Personal selling is important to all companies. Salespeople must be able to meet customer needs and company expectations. It’s also economically important. Personal selling requires strategy decisions . Some of these are issues in managing the sales force, such as: (1) the number and kind of salespeople needed; (2) the technology support the salespeople need; (3) how to select and train salespeople, and (4) how to compensate and motivate them. In addition, salespeople and sales managers need to decide what specific personal selling techniques will be used in dealing with the organization’s customers and prospects. Helping customers make good buying decisions is good selling . In meeting customer needs, salespeople build lasting relationships with customers. Salespeople represent the whole company—and customers too . How the salesperson behaves is all many customers will ever know about the company. Discussion Question: How does this statement apply in financial services? The sales force aids in the market information function , providing feedback to the company on what customers think, feel, and want. Salespeople can be strategy planners , making decisions every day about how to manipulate promotional mix elements to fit the needs of their customers. This slide relates to material on pp. 396-398. Indicates place where slide “builds” to include the corresponding point.
Summary Overview Marketing managers recognize that effective personal selling involves successful completion of a number of activities, and establishing a balance between the right number and the right kind of salespeople. Therefore, it is important for marketers to understand the basic sales tasks that are to be performed. Key Issues Personal selling is divided into three tasks . These basic sales tasks are: order-getting; order-taking; and supporting. Order getters and order takers obtain orders on behalf of a company. Supporting salespeople are not directly interested in orders; their function is to help the order-oriented salespeople. In some cases, a single salesperson will do all three tasks. In other cases, particularly in large companies that depend heavily on personal selling, the tasks are divided among a number of sales professionals. Discussion Question: What are the pros and cons of having a salesperson perform all three basic tasks, compared to dividing the tasks up among several salespeople? This slide relates to material on p. 399. Indicates place where slide “builds” to include the corresponding point.
Summary Overview Order getters : are concerned with establishing business relationships with new customers and developing new business. Order-getting : seeking possible buyers with a well-organized sales presentation designed to sell a good, service, or idea. Key Issues Order getters must be experts about every aspect of their products. Producers’ order getters find new market opportunities —new prospects, new accounts, and new channels of distribution. Good order getters are problem solvers. Many producers give their order getters special training so they will understand their customers’ needs and the products that need to be sold. Discussion Question: In selling services, the customer cannot inspect the service before purchase. How can an order-getting sales rep get the consumer to buy a service sight unseen? Wholesalers’ order getters work closely with retailers. In a sense, they almost hand the product to the customer . They may be involved in training retail employees, doing product demonstrations, working on retail promotions, and other activities. Retail order getters influence consumer behavior and help to move products from the market introduction stage to the market growth stage of the product life cycle, especially for heterogeneous shopping products. This slide relates to material on pp. 399-401. Indicates place where slide “builds” to include the corresponding point.
Summary Overview Order takers : sell to regular customers, completing sales transactions and maintaining relationships. Order-taking : the routine completion of sales made regularly to target customers. Key Issues Order takers need to be highly trained, competent individuals. Order-taking activities can make the difference between keeping and losing a customer. Producers’ order takers train, explain and collaborate . They work on improving the whole relationship with the customer. Even if computers handle routine reorders, someone has to perform basic tasks such as making adjustments, handling complaints, and keeping customers informed of new developments. Wholesalers’ order takers are involved not in getting orders but in keeping them . Wholesale order takers may have to deal with thousands of items. As a result, they often keep in contact with customers on a regular basis and fulfill any needs that arise, as opposed to selling any particular item. Retail order takers are often poor salesclerks who are not paid or trained well. Knowledgeable, courteous, helpful salesclerks can play an important role in a retailer’s marketing mix. Discussion Question: Why do you think that retailers do not place more emphasis on training and compensating retail order takers? This slide relates to material on p. 401. Indicates place where slide “builds” to include the corresponding point.
Summary Overview Supporting salespeople help the order-oriented salespeople but they don’t try to get orders themselves. Their activities, such as providing specialized services and information, are aimed at enhancing the relationship with the customer and getting sales in the long run. Key Issues Missionary salespeople : supporting salespeople who work for producers by calling on their middlemen and customers. Missionary salespeople can increase sales by creating goodwill, providing training, and performing other activities. This position is often used as a training ground for new salespeople. Technical specialists : provide technical know-how in support of order-oriented salespeople. Technical specialists are experts who know product applications , and they often have science or engineering backgrounds. They are more concerned with providing technical details about products than in persuading customers to place orders. Discussion Question: How important are good communication skills for technical specialists? Explain. Customer service reps : work with customers to resolve problems that arise after a purchase. Every marketing-oriented company need good people to handle customer service. This slide relates to material on pp. 402-403. Indicates place where slide “builds” to include the corresponding point.
Summary Overview The focus of customer service is on the service that is required to solve a problem that a customer encounters with a purchase. Key Issues Customer service is part of promotion . A firm should view customer service reps as a key part of personal selling. Regardless of whether the firm or the customer causes the problem, customer service reps need to be effective communicators, have good judgment, and realize that they are advocates not only for their firm, but also for its customers . Discussion Question: Think of an experience that you have had recently where you had a problem with a purchase and you contacted the company about the problem. How was it handled? Were you satisfied? If not, did you tell friends and/or family about the experience? This slide relates to material on pp. 403-404. Indicates place where slide “builds” to include the corresponding point.
This slide relates to material on pp. 404-406. Indicates place where slide “builds” to include the corresponding point. Summary Overview The sales manager must organize the sales force so that all necessary tasks are performed well. If different people handle different sales tasks, firms often rely on team selling—when different people work together on a specific account . Key Issues Different target markets need different selling tasks. –Managers often have different sales forces for different target markets who have different support or information needs. For example, big accounts often get special treatment from a major accounts sales force. . Discussion Question: What are the advantages of having a separate sales force for big accounts? Are there any disadvantages? Some salespeople specialize in telephone selling . Telemarketing is quick and inexpensive and can provide a way to serve customers who would otherwise be too expensive to support. Sales tasks are done in sales territories . Sales territory : a geographic area that is the responsibility of one salesperson or several working together. Managers must weigh distance, number of customers, the complexity of account service, and the potential profitability in setting up sales territories. The size of the sales force depends on workload per salesperson . Assessing the workload evaluates the time required for sales tasks as well as the number of customers and other important market factors..
Summary Overview Selecting a sales presentation approach is not the end of the personal selling process. The salesperson has to make the presentation, close the sale, and follow up after the sale. Key Issues The AIDA model —attention, interest, desire, and action— can help plan sales presentations . It is necessary to get the customer’s attention at the start of a presentation and move to getting the customer to take action. Generating interest, answering problems and objections, and arousing desire are all critical. Presentations should end with a close -- here the salesperson asks for the customer’s business. The best salespeople learn how to close effectively. Whether the presentation ends in a sale or a request for more information, the salesperson should take care to follow up and contact the customer again soon after the call. As in other areas of the promotion mix, ethical issues may arise in personal selling. Obviously, the truthfulness of the salesperson is important. Discussion Question: Is a company ever served well by dishonest salespeople, even if the questionable practices result in high sales volume? Explain. Problems are less likely to arise if a salesperson emphasizes the fulfillment of customer needs and building a long-term relationship. Top management and marketing or sales managers set the ethical tone for the sales force. This slide relates to material on pp. 418-419. Indicates place where slide “builds” to include the corresponding point.
Summary Overview To recruit and keep good salespeople, a firm must design an attractive compensation package that also motivates salespeople to become top performers. The key is to match what people want to do and what interests them with the needs of the company. Key Issues Two basic decisions must be made in developing a compensation plan: the level of compensation, and the method of payment. Regarding the level of compensation, the amount of money a person can make should be at least comparable to competitors’ compensation. Compensation varies with the job and needed skills . Payment methods also vary . Salespeople are typically compensated by: straight salary; straight commission--a percentage of sales, or some combination of salary and commission. Discussion Question: Which one of these plans would provide the most security? Which one would provide the most incentive? Combination plans are most common. This slide relates to material on pp. 412-414. Indicates place where slide “builds” to include the corresponding point.
Summary Overview Limitations on working capital or market uncertainty may compel a company to choose a straight commission plan, or combination plan with a large commission component. That way, total selling expense goes up only if salespeople actually bring in customers and revenue. Key Issues This exhibit illustrates that straight salary is simple to understand and administer. It’s the same regardless of sales. Commission is more complicated but can add flexibility. As sales volume increases, sales costs: increase at the fastest rate for a straight commission plan; increase at a lesser rate for a combination plan; and remain constant with a straight commission plan. Compensation plans should be clear . Salespeople need to see the link between effort and income. Although straight salary plans provide the most simplicity, sales managers often sacrifice some simplicity to achieve control, incentive, and flexibility. Discussion Question: What would be the simplest compensation plan—straight salary, straight commission, or a combination plan? Why? Sales managers must plan, implement, and control the compensation plan. This slide relates to material on p. 414.
Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling Marketing Management, 13 th ed 19