Personal Selling Chapter 1


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  • Personal Selling Chapter 1

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