Belch & Belch - Personal Selling

1. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
Chapter 22
Personal
Selling

2. Personal Selling
 Selling through a person-to-person communications
process
 Affected by increased emphasis on customer
relationship management
 Importance varies for each firm depending on:
 Nature of the product or service being marketed
 Size of the organization
 Type of industry
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
2

3. Dyadic Communication
 Direct and interpersonal communication
 Allows sender to immediately receive and evaluate
feedback from receiver
 Messages can be changed to address the receiver’s
specific needs and wants
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
3

4. Factors that Determine the Role of
Personal Selling
Determining the information to be exchanged
Examining promotional-mix alternatives
Evaluating the relative effectiveness of alternatives
Determining cost-effectiveness
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
4

5. Characteristics of Stages of Personal Selling
Evolution
Stages and description Customer needs Type of
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
market
Nature and intensity
of competition
Provider - Accepts
orders and delivers to
buyer
• Assumed to exist
• Not a concern
Sellers’ • None
Persuader - Attempts to
convince anyone to buy
available offerings
• Created
• Awakened
Buyers’ • Undifferentiated
• Slight intensity
Prospector - Seeks out
prospects with need for
available offering and
resources to buy
• Considered but
inferred
Segmented • Differentiated
• Growing
5

6. Characteristics of Stages of Personal
Selling Evolution
Stages and description Customer needs Type of market Nature and intensity
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
of competition
Problem solver - Matches
available offerings to
solve customer-stated
problems
• Diagnosed with
attention to
customer input
Participative • Responsive and
counteractive with
increasing resources
Procreator - Creates a
unique offering to match
the buyer’s needs as
mutually specified,
involving any or all
aspects of the seller’s
total marketing mix
• Mutually defined
• Matched with
tailored offering
Coactive • Focused
• Growing in breadth
of market and
service offerings
6

7. New Role of Salespeople
Surveying Mapmaking
Guiding Fire starting
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
7

8. Relationship Marketing
 Organization’s effort to develop a long-term, cost-effective
link with individual customers for mutual
benefit
 Customer relationship management (CRM):
Support targeting, acquiring, retaining,
understanding and collaborating with customers
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
8

9. Figure 22.4 - The Eight Step Personal-
Selling Process
Source: From Reds Communications, “The 8 Step Personal Selling Process—Let Us Help You,” www.redscommunications.co.za.
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
9

10. Types of Sales Jobs
 Order taking: Accomplished by:
 Inside order takers - Work inside the sales office and receive
orders by phone, mail, or the Internet
 Field order takers - Travel to customers to get their orders
 Creative selling: Getting an order by:
 Assessing a situation and determining the needs
 Presenting capabilities to satisfy the needs
 Missionary sales: Introduce new products, promotions,
and/or programs with the actual order to be taken
 Perform a support role
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
10

11. Traits of a Salespeople
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Successful salespeople
•Knowledgeable
•Professional
•Thorough
•Results-oriented
•Problem solving
•Relationship-oriented
•Customer-focused
•Responsive
•Good communicators
•Reliable
Most helpful to
customers
•Knowledge
•Empathy
•Well organized
•Promptness
•Follow-through
•Solutions
•Punctuality
•Hard work
•Energetic
•Honesty
Most objectionable to
customers
•Unprepared
•Uninformed
•Aggressive
•Undependability
•Poor follow-through
•Presumptuousness
•Calling without appointments
•Compulsive talkers
•Problem avoiders
•Lack of personal respect
11

12. Advantages and Disadvantages of
Personal Selling
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Advantages
• Allows for two-way interaction
• Tailors the message
• Lack of distraction
• Involvement in the decision
process
• Source of research
information
Disadvantages
• Inconsistent messages
• Sales force/management
conflict
• High cost
• Poor reach
• Potential ethical problems
12

13. Ways to Use Advertising to Sell More
 Save sales force time
 Avoid lengthy explanations
 Add impact to the presentation and reinforce selling points
 Ego boosters and personal refreshers
 Clues to prospects’ interests
 Prove a point and create preference
 Help prospects to make a decision
 Provide follow-ups
 Fight lower-priced competitors
 Getting the customer into the act
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
13

14. Combining Personal Selling with Other
Promotional Tools
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
 Public relations
 Direct marketing
 Sales Promotion
 Internet
14

15. Figure 22.12 - Factors to Be Considered
in the Sales Review Process
Source: Steve Deist and Rich Johnson, “Developing an Effective Sales Force,” Industrial Distribution.
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
15

16. Criteria Used to Evaluate Sales Forces
Measures Sales results Sales efforts
Quantitative measures • Orders
• Sales volume
• Margins
• Customer accounts
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
• Sales calls
• Selling expenses
• Customer service
Qualitative measures • Selling skills • Sales-related
activities
16

17. Characteristics That Improve
Performance Effectiveness
 Strength of the field manager
 Clear link between company culture and values to
sales strategies
 Rigorous management processes that drive
performance
 Consistent training that leads to consistent
execution
 Courage to change
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
17

18. Criteria for Evaluating Personal Selling
 Provision of marketing intelligence
 Follow-up activities
 Program implementations
 Attainment of communications objectives
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
18