Chapter 14 Personal Selling and Customer Service Copyright

Chapter 14 Personal Selling and Customer Service Copyright © 2014 by The Mc. Graw-Hill Companies, Inc. All rights reserved

14 -2 At the end of this presentation, you should be able to: 1. 2. 3. 4. 5. Understand the importance and nature of personal selling. Know the three basic sales tasks—order-getting, order-taking, and supporting—and what various kinds of salespeople can be expected to do. Understand why customer service presents different challenges than other personal selling tasks. Know the different ways sales managers can organize salespeople so that personal selling jobs are handled effectively. Know how sales technology affects the way sales tasks are performed.

14 -3 At the end of this presentation, you should be able to: Know what the sales manager must do, including selecting, training, and organizing salespeople to carry out the personal selling job. 7. Understand how the right compensation plan can help motivate and control salespeople. 8. Understand when and where to use three types of sales presentations. 9. Understand important new terms. 6.

14 -4 Marketing Strategy Planning Process

14 -5 Strategy Planning and Personal Selling (Exhibit 14 -1) CH 13: Promotion Intro. to Integrated Marketing Communications Importance of personal selling CH 14: Personal Selling and Customer Service Personal selling tasks Strategy decisions CH 15: Advertising, Publicity & Sales Promotion Personal selling process

14 -6 The Importance and Role of Personal Selling Requires strategy decisions Salespeople can be strategy planners Helping to buy is good selling Personal Selling Is Important Sales force provides market information Salespeople represent whole company & customers

14 -7 What Kinds of Personal Selling Are Needed? Order. Getting Order. Taking Basic Sales Tasks Supporting

14 -8 Order Getters Develop New Business Relationships Order Getters and Order-Getting Producers’ Order Getters Find New Opportunities Wholesalers’ Order Getters Almost Hand It to Customer Retail Order Getters Influence Buyer Behavior

14 -9 Order Takers Nurture Relationships to Keep the Business Coming Order Takers and Order-Taking Producers’ Order Takers Train, Explain, & Collaborate Wholesalers’ Order Takers Don’t Get Orders But Keep Them Retail Order Takers Are Often Poor Sales Clerks

14 -10 Supporting Sales Force Informs and Promotes in the Channel Missionary Salespeople Technical Specialists Supporting Sales Tasks Customer Service Reps

14 -11 Checking Your Knowledge Julie Jones works for an investment firm. She calls on potential clients, introduces them to her firm, develops goodwill, and tries to set up contacts between customers and her firm’s account managers. Julie does not manage any accounts herself, but is using her current position as a training opportunity in hopes of moving up to an account manager position. Julie’s current position is that of a: A. B. C. D. E. order taker. order getter. missionary salesperson. sales manager. systems seller.

Customer Service Promotes the Next Purchase 14 -12 Part of promotion Not the product What is customer service? Reps are customer advocates

The Right Structure Helps Assign Responsibility 14 -13 Different Markets, Different Tasks Team Selling Major Accounts Sales Force Size and Workload Telemarketing Sales Territories

14 -14 Interactive Exercise: Sales Force Workload

Sometimes Technology Can Substitute for Personal Selling (Exhibit 14 -2) 14 -15 Standardized information exchanged on a recurring basis (orders, invoices, delivery status, product information prices High Emphasis on standardized e-commerce (with customer service) Emphasis on both personal selling & customized e-commerce Low Emphasis on digital self-service Emphasis on personal selling Low High Relationship building required (problem solving, coordination, support, cooperation)

14 -16 An Example of Technology Changing Sales Tasks

14 -17 An Example of Digital Self -Service

Information Technology Provides Tools to Do the Job 14 -18 New Software Great Changes in Handling Tasks New Hardware Good Selection and Training Needed Technology Can Be a Competitive Advantage What is Done vs. How It’s Done

14 -19 Using Technology in Personal Selling © 2014 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

14 -20 Sound Selection to Build a Sales Force

14 -21 Training to Meet a Job Description Specific, Written Job Description Trained, Not Born All Salespeople Need Training

Selling Skills Can Be Learned 14 -22

Compensating and Motivating Salespeople 14 -23 Level of Compensation Straight Salary Method of Payment Straight Commission Combination Plan

Interactive Exercise: Sales Force Compensation 14 -24

14 -25 Determining the Choice of the Pay Plan

14 -26 Flexibility vs. Simplicity (Exhibit 14 -3) Total selling expense Straight commission Combination plan Straight salary 0 Sales volume

14 -27 Checking Your Knowledge After spending two years in the insurance business, Anne Mc. Cauley decided to go to graduate school so that she could become qualified to teach high school English. Even though she had a reasonable amount of success in selling insurance, she could not deal with the variability in her income from month to month. She said, “In some months I earn all the money I need in a couple of days. In other months, I can work hard all month long and earn nothing. ” She wanted a career with more regular earnings. It sounds as though Anne was on a _____ compensation plan in the insurance business. A. B. C. D. straight commission straight salary combination cost-plus

Key Steps in the Personal Selling Process (Exhibit 14 -4) 14 -28 Evaluate needs of established customers and business opportunity Prospect for new customers Set effort priorities Select target customer Identify who influences purchase decision and/or who is involved in buyer-seller relationship Preplan sales call and presentation(s) • Prepared presentation • Consultative selling approach • Selling formula approach

14 -29 Checking Your Knowledge A seller of asset-management services specializes in marketing his services to people connected with the publishing business, such as authors, book distributors, and bookstore owners. He often gets leads by scanning newspapers and magazines, looking for new authors whose books are favorably reviewed. This searching takes place in the _____ stage of the personal selling process. A. B. C. D. E. follow-up sales presentation closing prospecting prequalification

Three Types of Sales Presentation Approaches May Be Useful 14 -30 Three Presentation Approaches Prepared Approach Consultative Approach Selling Formula Approach

14 -31 An Example of Consultative Selling

Key Steps in the Personal Selling Process (Exhibit 14 -4) 14 -32 Prospect Set effort priorities Evaluate needs Select target customer Preplan sales call and presentation(s) Make sales presentation • Create interest • Overcome problems/objections • Arouse desire Close the sale (get action)

Key Steps in the Personal Selling Process (Exhibit 14 -4) 14 -33 Prospect Set effort priorities Evaluate needs Select target customer Preplan sales call and presentation(s) Feedback Make sales presentation Close the sale (get action) Follow up after sales call to establish relationship Follow-up after the purchase to maintain and enhance relationship

14 -34 Checking Your Knowledge Light-the-Way, Inc. sells standard household items such as cleaners, trash bags, and light bulbs via telemarketing. The products are made or packaged by people who are visually impaired. The company donates a percentage of its sales revenue to organizations that provide services to the blind. The telephone sales presentation emphasizes this fact and the quality of the merchandise. The salesperson making the calls reads the same sales script to every potential customer who is called. The only opportunity for the customer to talk comes when the salesperson attempts to close the sale. This is an example of a(n): A. B. C. D. E. consultative selling approach. selling formula approach. prospecting approach. systems selling approach. prepared sales presentation.

14 -35 You should now be able to: 1. 2. 3. 4. 5. Understand the importance and nature of personal selling. Know the three basic sales tasks—order-getting, ordertaking, and supporting—and what various kinds of salespeople can be expected to do. Understand why customer service presents different challenges than other personal selling tasks. Know the different ways sales managers can organize salespeople so that personal selling jobs are handled effectively. Know how sales technology affects the way sales tasks are performed.

14 -36 You should now be able to: 6. 7. 8. 9. Know what the sales manager must do, including selecting, training, and organizing salespeople to carry out the personal selling job. Understand how the right compensation plan can help motivate and control salespeople. Understand when and where to use three types of sales presentations. Understand important new terms.

14 -37 Key Terms 1. 2. 3. 4. 5. 6. 7. 8. basic sales tasks order getters order-getting order takers order-taking supporting salespeople missionary salespeople technical specialists 9. 10. 11. 12. 13. 14. 15. 16. customer service reps team selling major accounts sales force telemarketing sales territory job description sales quota prospecting

14 -38 Key Terms 17. 18. 19. 20. 21. sales presentation prepared sales presentation close consultative selling approach selling formula approach