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Chapter18
- 1. Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
- 2. 1. Determining the Role of Personal Selling What information must be exchanged between firm and potential customer? What information must be exchanged between firm and potential customer? What are the alternative ways to carry out What are the alternative ways to carry out these communications objectives? these communications objectives? How effective is each alternative in carrying How effective is each alternative in carrying out the needed exchange? out the needed exchange? How cost How cost eeffffeeccttiivvee iiss eeaacchh aalltteerrnnaattiivvee?? © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
- 3. 2. When the Sales Force is a Major Part of MC? PPrriiccee • Final price negotiable • Price provides adequate margin • Final price negotiable • Price provides adequate margin Product or Service Product or Service • Complex goods or services • Major purchase decisions • Personal demonstration required • Complex goods or services • Major purchase decisions • Personal demonstration required CChhaannnneellss • Channel short and direct • Training needed by intermediaries • Selling needed to push product through • Intermediaries can provide personal selling • Channel short and direct • Training needed by intermediaries • Selling needed to push product through • Intermediaries can provide personal selling AAddvveerrttiissiinngg • Media do not provide an effective link • Information can not be provided by media • Sparse market reduce advertising economies • Media do not provide an effective link • Information can not be provided by media • Sparse market reduce advertising economies © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
- 4. 3. Stages of Personal Selling Evolution Selling activity limited to Selling activity limited to Provider Stage order-taking Provider Stage order-taking Attempting to persuade customer Attempting to persuade customer Persuader Stage to buy Persuader Stage to buy Seeking out buyers perceived to Prospector Stage have a need Prospector Stage Buyers identify problems to be Buyers identify problems to be met by goods met by goods Seller determines buyer needs Seller determines buyer needs Problem-solver Stage Procreator Stage and fulfills them Procreator Stage and fulfills them Problem-solver Stage Seeking out buyers perceived to have a need © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
- 5. 4. New Roles for Salespeople SSuurrvveeyyiinngg MMaappmmaakkiinngg FFiirree SSttaarrttiinngg GGGGuuuuiiiiddddiiiinnnngggg © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
- 6. 5. Personal Selling Responsibilities LLooccaattiinngg pprroossppeeccttiivvee ccuussttoommeerrss DDeetteerrmmiinniinngg ccuussttoommeerrss’’ nneeeeddss aanndd wwaannttss RReeccoommmmeennddiinngg aa wwaayy ttoo ssaattiissffyy tthheemm DDeemmoonnssttrraattiinngg ccaappaabbiilliittiieess ooff tthhee pprroodduucctt CClloossiinngg tthhee ssaallee Following Following uupp aanndd sseerrvviicciinngg tthhee aaccccoouunntt © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
- 7. 6. Types of Sales Jobs RRRReeeeqqqquuuuiiiirrrreeeessss tttthhhheeee mmmmoooosssstttt sssskkkkiiiillllllll aaaannnndddd pppprrrreeeeppppaaaarrrraaaattttiiiioooonnnn MMuusstt aasssseessss ssiittuuaattiioonn,, ddeetteerrmmiinnee nneeeeddss TThhiiss rroollee iiss mmuucchh mmoorree ccaassuuaall OOOOfffftttteeeennnn iiiinnnnvvvvoooollllvvvveeeessss ssssttttrrrraaaaiiiigggghhhhtttt rrrreeeebbbbuuuuyyyyiiiinnnngggg This is TTThhhiiisss iiisss eeeesssssssseeeennnnttttiiiiaaaallllllllyyyy aaaa ssssuuuuppppppppoooorrrrtttt rrrroooolllleeee © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Creative Selling Creative Selling Order Taking Order Taking Missionary Sales Rep Missionary Sales Rep
- 8. 7. 10 Traits of Effective Salespeople 1. Ego strength: a healthy self-esteem that allows one to bounce back from rejection. 2. Sense of urgency: wanting to get it done now. 3. Ego drive: a combination of competitiveness and self esteem. 4. Assertiveness: the ability to be firm, lead the sales process, and get one’s point across confidently. 5. Risk-taking: willing to innovate and take a chance. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
- 9. 10 Traits of Effective Salespeople 6. Sociable: outgoing, friendly, talkative, and interested in others. 7. Abstract reasoning: ability to understand concepts and ideas. 8. Skepticism: a slight lack of trust and suspicion of others. 9. Creativity: the ability to think differently. 10. Empathy: the ability to place oneself in someone else’s shoes. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
- 10. 8. Personal Selling Advantages and Disadvantages AAddvvaannttaaggeess DDiissaaddvvaannttaaggeess Messages may be Messages may be inconsistent inconsistent Possible management-sales force conflict Cost is often extremely high Reach may be very limited Reach may be very limited Two-way interaction Two-way interaction with prospect with prospect Message can be tailored to recipient Message can be tailored to recipient Prospect isn't likely to be distracted Prospect isn't likely to be distracted Cost is often extremely high Seller involved in purchase decision Source of research Source of research information PPootteennttiiaall eetthhiiccaall pprroobblleemmss © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin information Possible management-sales force conflict Seller involved in purchase decision
- 11. 9. Personal Selling Combines With Other Tools AAddvveerrttiissiinngg PPuubblliicc RReellaattiioonnss DDiirreecctt MMaarrkkeettiinngg SSaalleess PPrroommoottiioonn TThhee IInntteerrnneett © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Personal Selling Personal Selling
- 12. 10. Quantitative Measures of Sales Results OOrrddeerrss SSaalleess VVoolluummee MMaarrggiinnss CCuussttoommeerr AAccccoouunnttss SSaalleess CCaallllss SSSSeeeelllllllliiiinnnngggg EEEExxxxppppeeeennnnsssseeeessss CCuussttoommeerr SSeerrvviiccee © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Quantitative Measures Quantitative Measures
- 13. 11. Qualitative Measures of Sales Results SSSSeeeelllllllliiiinnnngggg SSSSkkkkiiiillllllllssss Sales Related Activities Sales Related Activities © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Editor's Notes
- Relation to text This slide relates to material on pp. 575-576 of the text. Summary Overview In order for management to determine the role of personal selling in the overall IMC program, they should ask themselves several questions. These questions include: What information must be exchanged between the firm and potential customer? What are the alternative ways to carry out these communications objectives? How effective is each alternative in carrying out the needed exchange? How cost effective is each alternative? Use of this slide This slide can be used to discuss the role of personal selling in the IMC program. Personal selling is a unique tool in the promotional mix because communication flows from sender to receiver directly. This allows the sender to receive immediate feedback from the receiver. However, this is one of the most costly forms of communication and marketers need to weigh these costs against the benefits of personal contact with the customer. Answering these four questions will help with what role personal selling will serve in the overall communication plan.
- Relation to text This slide relates to material on p. 576 and Figure 18-1 of the text. Summary Overview The slide reviews the type of product and related marketing mix where it would be appropriate for a sales force to be a major part of an IMC program Products Complex products, longer selling cycles, demonstration required Price Prices are negotiable and margins can support the expense of a sales force Channels Short and direct channels, product training required, personal selling needed to push through channel Advertising Media do not provide an effective link to the customer, information cannot be provided through media Sparse market reduces economies of advertising Use of this slide This slide can be used to discuss the products and related marketing mix situations that that would necessitate the use of a personal selling effort.
- Relation to text This slide relates to material on p. 577 and Figure 18-3 of the text. Summary Overview The personal selling area is constantly evolving as the marketing environment itself evolves. This slide summarizes the stages of the evolution of personal selling which are: Provider stage – selling activity limited to order-taking Persuader stage – attempting to persuade customer to buy Prospector stage – seeking out buyers perceived to have a need Problem-solver stage – buyers identify problems to be met by goods and services Procreator stage – seller determines buyer needs and fulfills them Use of this slide This slide can be used to discuss the evolution of personal selling. As firms evolve through these five stages they have to assume different market orientations, as well as different organizational designs, staffing, and compensation programs. Each stage also requires different promotional strategies, each integrated with personal selling to achieve the maximum communications effect.
- Relation to text This slide relates to material on pp. 577-578 of the text. Summary Overview As the business world goes through transitions and changes the role of salespeople is also changing. This slide lists some of the additional activities sales people will engage in as they take on new roles. Surveying – educating themselves about their customers’ businesses Mapmaking – outlining both an account and a solutions strategy Guiding – bringing incremental value to the customer Fire starting – driving customers to commit to a solution Use of this slide This slide can be used to discuss some of the activities salespeople engage in to remain effective as they take on new roles. This new role helps create added value and develop a long-term relationship between buyer and seller.
- Relation to text This slide relates to material on pp. 581-582 of the text. Summary Overview This slide summarizes the duties and the responsibilities of a salesperson. These include: Locating prospective customers Determining customers’ needs and wants Recommending a way to satisfy them Demonstrating capabilities of the product Closing the sale Following up and servicing the account Use of this slide This slide can be used to discuss the responsibilities of the salesperson. The duties of a sales person are numerous and require a wide range of skills
- Relation to text This slide relates to material on p. 581 and Figure 18-5 of the text. Summary Overview This slide lists the three classifications of salespeople which are: Creative selling – requires skill and preparation, and the ability to assess the situation and determine needs Order taking – role is more casual and often involves straight rebuying by the customer but can also involve modified rebuys which requires creative selling Missionary sales rep – role is one of supporting and servicing the customer rather can trying to get new business Use of this slide This slide can be used to discuss the three types of sales positions. Not all firms treat these responsibilities the same, nor are their salespeople limited to these tasks.
- Relation to text This slide relates to material on p. 583 and Figure 18-6 of the text. Summary Overview This slide lists traits that are common to effective salespeople. Five of these traits are shown here including: Ego strength Sense of urgency Ego drive Assertiveness Risk-taking Use of this slide This slide can be used to discuss the traits that are common in effective salespeople. Sales managers often look for these traits in the hiring of their sales force. The importance of these traits may vary depending on the type of sales job.
- Relation to text This slide relates to material on p. 583 and Figure 18-6 of the text. Summary Overview This slide lists five additional traits that are common to effective salespeople. These include: Sociability Abstract reasoning Skepticism Creativity Empathy Use of this slide This slide can be used to discuss the traits that are common in effective salespeople. Sales managers often look for these traits in the hiring of their sales force. The importance of these traits may vary depending on the type of sales job.
- Relation to text This slide relates to material on pp. 583-585 of the text. Summary Overview This slide summarizes the advantages and disadvantages of personal selling. These advantages and disadvantages are: Advantages Two-way interaction Message can be tailored to recipient Prospect isn’t likely to be distracted Seller involved in purchase decision Source of research information Disadvantages Messages may be inconsistent Possible management-sales force conflict Cost is often extremely high Reach may be very limited Potential ethical problems Use of this slide This slide can be used to discuss the advantages and disadvantages of personal selling. The advantages of personal selling primarily deal with dyadic communications process, the ability to alter the message, and the opportunity for direct feedback. Some of the more significant disadvantages primarily relate to inconsistent messages, conflicts between sales and marketing, and costs.
- Relation to text This slide relates to material on pp. 585-589 of the text. Summary Overview This slide shows that personal selling is regularly combined with the other IMC tools including advertising, public relations, direct marketing, sales promotion, and the Internet. Use of this slide This slide can be used to introduce the fact that personal selling is rarely used alone. This promotional tool both supports and is supported by other IMC program elements. More detailed discussion on combining personal selling with other promotional tools will follow.
- Relations to text This slide relates to material on p. 592 and Figure 18-11 of the text. Summary Overview This slide shows the quantitative sales related criteria that can be used to evaluate the sales force. These include: Orders – number, average order size Sales volumes – dollars, units, customer type, product category Margins – gross, net profit, by customer type Customer accounts – new accounts, lost accounts, percentage of accounts sold Sales calls – number made on current and potential new, time spent at call Selling expenses – per sales call, percentage of sales volume, Customer service – number of service calls, delivery costs per unit sold Use of this slide This slide can be used to discuss the quantitative measures that can be used to evaluate the sales force performance. Evaluations of sales force performance are typically based on quantitative criteria such as those shown here.
- Relations to text This slide relates to material on p. 592 and Figure 18-11 of the text. Summary Overview This slide shows the qualitative criteria that can be used to evaluate the sales force, which are: Selling skills – knowing the company and its policies, know the competition, understanding selling techniques Sales related activities – territory management, marketing intelligence follow-up, customer relations Use of this slide This slide can be used to discuss the quantitative measures that can be used to evaluate the sales force performance. While quantitative measures are used to measure performance of the sales force, qualitative criteria such as these are important as well.