Personal selling

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Personal selling

  1. 1. SALES MANAGEMENT SESSION-1 BLOCK-I SALES MANAGEMENT FUNCTIONS UNIT-1 INTRODUCTION TO SALES MANAGEMENT UNIT-2 PERSONAL SELLING UNIT-3 SALES PROCESS
  2. 2. SALES MANAGEMENT: It has been defined as the management of a firm’s personal selling function while distribution is the management of the indirect selling effort i.e.,selling through extra corporate organizations which form the distribution network of the firm. The sales management task thus includes analysis, planning, organizing, directing and controlling of the company’s sales effort. UNIT-1 INTRODUCTION TO SALES MANAGEMENT
  3. 3. BLOCK-1 SALES MANAGEMENT:BASIC FUNCTIONS UNIT-2 PERSONAL SELLING & UNIT-3 SALES PROCESS
  4. 4. Examples of Personal Selling Retail selling Field selling Telemarketing Inside selling
  5. 5. Relative Importance of Advertising and Personal Selling Pre-transaction: Pre-transaction: Create recognition and Create recognition and info understanding info understanding Personal selling Advertising Post-transaction: Post-transaction: Reminder and Reminder and reassurance reassurance Transaction: Transaction: Persuasion Persuasion Personal selling Advertising Personal selling Advertising
  6. 6. Characteristics of Personal Selling Pro Con Flexibility Adapt to situations Engage in dialog Builds Relationships  Long term  Assure buyers receive appropriate services  Solves customer’s problems Can not reach mass audience Expensive per contact Numerous calls needed to generate sale Labor intensive
  7. 7. Types of Salespersons ORDER GETTERS Current customers New customers ORDER TAKERS Inside Order Takers (via mail, telephone, internet) Outside Field Sales SUPPORT PERSONNEL Missionary Salespersons Trade Salespersons Technical Salespersons
  8. 8. Personal Selling • Salespeople have many names ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ Agents Sales consultants Sales Representatives Account Executives Sales Engineers District Managers Marketing representatives Account Development Representatives 16-8
  9. 9. Personal Selling Tasks Order getting  Seeking out customers  Creative selling  Pioneering  Account management Order taking Routine writing up orders checking invoices assuring prompt order processing Suggestive selling
  10. 10. Personal Selling Tasks Missionary ◦ Detailer ◦ Goodwill ◦ “Closers” Cross-functional Account service rep
  11. 11. You are part of the total product
  12. 12. Diversity of Personal-selling Situations Group A (service Selling) 1. Inside Order Taker –”waits on” customers; for example,the sales clerk behind the neckwear counter in a men’s store.These jobs are known as technical support staff, sales assistants, telemarketers, and telesales professionals. 2. Delivery Salesperson – mainly engages in delivering the product; for example, persons delivering milk, bread, or fuel oil. 3. Route or Merchandising Salesperson – operates as an order taker but works in the field – the soap or spice salesperson calling on retailers is typical. 4. Missionary – aims only to build goodwill or to educate the actual or potential user, and is not expected to take an order; for example, the distiller’s “missionary” and the pharmaceutical company’s “detail” person. 5. Technical Salesperson – emphasizes technical knowledge; for example the engineering salesperson, who is primarily a consultant to “client” companies.
  13. 13. Group B (developmental Selling) 6. Creative Salesperson of Tangibles – for example, salespersons selling vacuum cleaners, automobiles, and encyclopedia. 7. Creative Salesperson of Intangibles – for example. Salespersons selling insurance, advertising services, and educational programs.
  14. 14. FOLLOWING UP CLOSING THE SALE HANDLING OBJECTIONS MAKING THE SALES PRESENTATION APPROACHING THE PROSPECT Pre approach: QUALIFYING PROSPECTS PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS The Personal Selling Process
  15. 15. Creative Selling Process Prospecting: Identifying Prospecting: Identifying likely new customers likely new customers ◦◦ Leads Leads ◦◦ Developing lists of Developing lists of Potential Customers Potential Customers Pre-approach (Qualifying) Finding and analyzing information about prospects Evaluating a prospect’s potential
  16. 16. Approaching The Prospect HOW DO WE MAKE THE INITIAL CONTACT & BUILD RAPPORT There is only one time to make a first impression
  17. 17. Creative Selling Process Making The Sales Presentation Using Persuasive communication  Hold Attention  Stimulate Interest  Desire “Tell the product’s story” 
  18. 18. Creative Selling Process Handling Objections ◦ Questions ◦ Reservations Understand Concern Counterarguments Acknowledge concern Clues to process
  19. 19. Overcoming Objections IF HE HADN’T TOLD ME WHAT HIS OBJECTION WAS, I NEVER WOULD HAVE BEEN ABLE TO HELP!
  20. 20. Creative Selling Process Closing the Sale Closing signals Trial close Asking the prospect to buy
  21. 21. Creative Selling Process Following Up 7 Commitments met ◦ Shipment ◦ Performance Reinforce L-R relationship Satisfied customers rebuy & recommend
  22. 22. Managing the Sales Force Designing Sales Force Strategy and Structure ◦ Sales Force Structure  Territorial sales force structure GM Sales Sales mgr South All products Sales mgr Central All products Sales Mgr West All products  Product sales force structure  Customer sales force structure  Complex sales force structure
  23. 23. 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
  24. 24.      Try this.. There are 150 large prospects (A type), 220 medium prospects (B), and 510 small prospects (C) to be covered for sales No. of calls in a year and duration of each call required for each A (52 calls 60 minutes each), B(24,30), C (12, 15) Each sales person works for 40 hrs per week, 48 weeks (selling time 45%, remaining in travel, office work etc) Find number of sales people required  Work load method Classify customers as per potential  A - large 150  B - medium 220  C - small 510  Decide time per sales call and frequency  A 60 min x 52 calls pa = 52 hrs  B 30 min x 24 calls pa = 12 hrs  C 15 min x 12 calls = 3 hrs Calculate work load to cover entire market  A 150 x 52 = 7800 hrs  B 220 x 12 = 2640  C 510 x 3 = 1530  Total 11970 hrs Workload Method
  25. 25. Determine the total work time available with each sales person  40 hrs per week x 48 weeks = 1920 hrs pa Divide it by tasks  Selling 45% 864 hrs  Non selling 30% 576 hrs  Traveling 25% 480 hrs total 1920 hrs  11970 / 864 = 13.8 = 14 sales people needed Workload Method
  26. 26. 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
  27. 27. 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
  28. 28. 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
  29. 29. 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.
  30. 30. 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
  31. 31. Managing the Sales Force Evaluating Salespeople ◦ Several tools can be used  Sales reports  Call reports  Expense reports
  32. 32. Job quality: do it right the first time Servi c  Prompt warranty work e Awar d  After-sales Service Ratings Speed .37 Reputation 3.38 Service Quality 7.87 Cost 4.39 10 0 Low 1 2 3 4 (SCALE: Degree of Importance) 5 6 7 8 High (JMR/Vol. 78)
  33. 33. A Key to Success Stay Close to Your Customer and LISTEN!
  34. 34. THEORIES OF SELLING AIDAS Theory:  ATTENTION  INTEREST  DESIRE  ACTION  SATISFACTION
  35. 35. The advocates of this theory define that all the circumstances, which led to the sales were appropriate for the sales to have taken place. In other words, if the sales person is successful in securing the prospect’s attention, maintaining his interest and inducing his desire to buy the product, the sales will result. Moreover, if the sales person is highly skilled, he will take control of the presentation, which would lead to sales. RIGHT SET OF CIRCUMSTANCES THEORY
  36. 36. Buying Formula Theory This theory emphasize on the buyer. This theory emphasizes on the needs or problems of the buyer. The sales person assist the buyer in finding an appropriate solution to the problem. This solution may be in terms of a product or service. This theory is based on the analysis of the sequence of events that goes in the buyer’s mind during the sales presentation. The theory is based on the presumption that the sales person will take care of the external factors. Need (or Problem) -------> Solution -------> Purchase
  37. 37. Conceptual Model of “Salesperson-Buyer” Dyadic Relationships

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