2. 2
Principles of Marketing
MKT3010
2
Personal Selling and Sales Management
These are the learning objectives guiding the chapter and will be explored in more detail in the
following slides.
Describe the value added of personal
selling.
Define the steps in the personal selling
process.
Describe the key functions involved in
managing a sales force.
Describe the ethical and legal issues in
personal selling.
LO1
LO2
LO3
LO4
3. 33
Personal Selling
Trade shows offer an excellent forum for finding leads to potential customers. These major
events are attended by buyers who choose to be exposed to products and services offered by
potential suppliers in an industry. This environment is a great opportunity for companies to
engage in personal selling.
Principles of Marketing
MKT3010
AP Photo/Paul Sakuma.
4. 44
Principles of Marketing
MKT3010
The Scope and Nature of Personal Selling
Many people are shocked to learn how many employees hold sales positions. Your students
may have had experience in retail sales and think that all sales jobs are like that. Remind them
that though many retail positions exist, professional sales positions involve a more involved skill
set and offer much higher rewards.
Internet Telephone
Face-to-face Teleconference
7. 77
The Personal Selling Process
Principles of Marketing
MKT3010
This graph introduces the personal selling process, which the following slides cover in depth. It
also may be used alone in a shortened lecture.
Generate and
qualify leads
Preapproach
Sales presentation
and overcoming
reservations
Closing the sale Follow-up
8. 88
Step 1: Generate and Qualify Leads
Principles of Marketing
MKT3010
Often the best source of new customers are other people. Imagine you sell investment
properties; list the people you know who might provide you with viable customer contacts. How
else might you gather a list of potential customers to contact? Now role play a cold calling
scenario, in which one group member “calls” the others. What challenges do you face? Would
your task have been easier had you had some introduction to these “customers”?
Sources
of Leads
Current
Customers
Networkin
g
Events
The
Internet
Trade
Shows
11. 1111
Steps 3: Sales Presentation and Overcoming
Reservations
Principles of Marketing
MKT3010
To handle the most difficult part of the sales encounter, salespeople go through extensive
training to learn how to deal with reservations
The Presentation
Handling Reservations
Klaus Tiedge/Blend Images/Getty Images
12. 1212
Aligning the Personal Selling Process with the
B2B Buying Process
Principles of Marketing
MKT3010
The B2B process must align closely with the selling process. A seller, for instance, shouldn’t be
trying to close a deal when the buyer is just determining the product specifications.
13. 1313
Principles of Marketing
MKT3010
Step 4: Closing the Sale
The “ABCs” of selling suggest salespeople must “Always Be Closing,” but this difficult process
requires far more extensive training than that.
• Getting the order
• Often most stressful part of sales
process
• A “no” one day may be the foundation
for a “yes” anotherDigitalVision/GettyImages
14. 1414
Step 5: Follow Up
Principles of Marketing
MKT3010
Salespeople must always remember that the sale is just the beginning of a customer
relationship. Think about what methods salespeople can use to ensure they follow up effectively
with their customers. Does it differ for B2B versus B2C selling situations? Follow up involves
ensuring that customers are satisfied with their purchases. The same techniques are used in
both B2B and B2C selling. Most firms now have systems to ensure the after the sale
communication is established, either by telephone, email, or in person.
Five Service Quality Dimensions
Reliability
Responsiveness
Assurance
Empathy
Tangibles
16. 1616
Managing the Sales Force
Principles of Marketing
MKT3010
Sales management plans, directs, and controls personal selling activities, from recruitment to
evaluation.
Managing
the Sales
Force
Sales force
structure
Recruiting and
selecting
salespeople
Sales training
Motivating and
compensating
salespeople
Evaluating
salespeople
17. 1717
Principles of Marketing
MKT3010
Sales Force Structure
A company has to decide if it will rely on its own sales force or manufacturers’ reps? Why? If it
decides to use its own sales force, how will it assign selling tasks to its salespeople. The
company could use a group selling approach or employ individual salespeople for each role?
Company Sales Force
Employees
Established product lines
Manufacturers
Representatives
(independent agents)
Not employees
Smaller firms
New markets
18. 1818
Salesperson Duties
Principles of Marketing
MKT3010
Although the life of a professional salesperson is highly varied, sales people generally play three
important roles: order getting, order taking, and sales support.
Order Getter
Order Taker
Sales Support Personnel Comstock Images /Jupiter images.
19. 1919
Principles of Marketing
MKT3010
Recruiting and Selecting Salespeople
Are salespeople born, or can they be trained? The answer may be a bit of both. Some people
possess certain personality elements that suggest their success, but even they need a lot of
training.
Personality
Optimism
Resilience
Self-
motivation
Empathy
21. 2121
Principles of Marketing
MKT3010
Sales Training
Because of their roles as experts, salespeople must possess a lot of knowledge about the
products/services they provide. Therefore, all salespeople, regardless of how good or
experienced, benefit from training.
Selling and negotiation techniques
Products and service knowledge
Technologies used in the selling process
Time and territory management
Company policies and procedures
22. 2222
Principles of Marketing
MKT3010
Motivating and Compensating Salespeople
What would you consider an appropriate sales force incentive, salary or commission? People
are motivated by commissions, but commission only salespeople are not as motivated to take
care of non-sales related duties. Which would you rather win, a special parking space that says,
“salesperson of the month,” or $25? Unless the monetary award is substantial, the recognition
by superiors and peers of a job well-done is typically more effective.
Financial Rewards Nonfinancial Rewards
GRANTLAND® Copyright Grantland Enterprises; www.grantland.net
23. 2323
Principles of Marketing
MKT3010
Evaluating Salespeople
By linking the evaluation system to the reward system, management ensures salespeople
understand what is expected of them. Should salespeople’s evaluation system be based strictly
on sales? Probably not. Unless there are some subjective evaluation criteria such as customer
service, teamwork, or relationship building, sales will probably suffer in the long run.
BananaStock/PictureQuest
• Tied to the reward structure
• Evaluation measures can be either
objective or subjective
24. 2424
Principles of Marketing
MKT3010
Check Yourself
1. What do sales managers need to do to
successfully manage their sales force?
2. What is the difference between monetary and
nonmonetary incentives?
25. 2525
Principles of Marketing
MKT3010
Ethical and Legal Issues in Personal Selling
Ethical and legal issues in personal selling can be classified into three broad categories.
The Sales
Manager and
the Sales Force
The Sales Force
and Corporate
Policy
The
Salesperson
and the
Customer
26. 2626
Principles of Marketing
MKT3010
Issues for the Sales Force and Corporate
Policy
How would you handle a situation if you worked for a firm that…
a. Sold alcohol directed towards teenagers;
b. Sold high-sugar products to children
c. Sold mortgages to high risk home buyers?
d. Inadequate Hurricane coverage?
APPhoto/CharlieRiedel
The firm may have a policy to sell goods or services to people who cannot
afford them or to people who should not have them.
27. 2727
Principles of Marketing
MKT3010
Issues for the Sales Person and the Customer
Have you ever felt that you have been treated unethically by a salesperson? What happened?
Royalty-Free/CORBIS
Have you ever felt that you
were treated unethically by a
salesperson?
What happened?
29. 2929
Glossary
Principles of Marketing
MKT3010
Cold calls are a method of prospecting in which sales people telephone or go to see potential
clients without appointments.
A company sales force comprises people who are employees of the selling company.
Manufacturer’s representatives are sales people who sell a manufacturer’s products on an
extended contract basis but are not employees of the manufacturer.
An order getter is a salesperson whose primary responsibilities are identifying potential
customers and engaging those customers in discussions to attempt to make a sale.
An order taker is a salesperson whose primary responsibility is to process routine orders or
reorders or rebuys for products.
The pre-approach occurs prior to meeting the customer for the first time and extends the
qualification of leads procedure.
Relationship selling is a sales philosophy and process that emphasizes a commitment to
maintaining the relationship over the long term and investing in opportunities that are mutually
beneficial to all parties.
30. 3030
Glossary
Principles of Marketing
MKT3010
Telemarketing is a method of prospecting in which sales people telephone potential customers
without appointments.
Trade shows are attended by buyers who choose to be exposed to products and services
offered by potential suppliers in an industry.