Chapter 16 Personal Selling and Sales Management 1

Chapter 16 Personal Selling and Sales Management 1

Nature of Personal Selling Most salespeople are well-educated, well-trained professionals who work to build and maintain long-term relationships with customers. The term salesperson covers a wide spectrum of positions from: n n n Order taker (department store salesperson) Order getter (someone engaged in creative selling) Missionary salesperson (building goodwill or educating buyers) 2

What is Personal Selling? Involves Two-Way, Personal Communication Between Salespeople and Individual Customers Whether: face to face, §by telephone, §through video conferencing, §or by other means. § 3

The Role of the Sales Force Personal selling is effective because salespeople can: n n probe customers to learn more about their problems, adjust the marketing offer to fit the special needs of each customer, negotiate terms of sale, and build long-term personal relationships with key decision makers. 4

The Role of the Sales Force Represent the Company to Customers to Produce Company Profit Sales Force Serves as a Critical Link Between a Company and its Customers Since They: Represent Customers to the Company to Produce Customer Satisfaction 5

Major Steps in Sales Force Management (Fig. 16. 1) Designing Salesforce Strategy and Structure Recruiting and Selecting Salespeople Training Salespeople Compensating Salespeople Supervising Salespeople Evaluating Salespeople 6

Designing Sales Force Strategy and Structure Territorial Exclusive Territory to Sell the Company’s Full Product Line Complex Forms Are a Combination of Any Types of Sales Force Structures Product Sales Force Sells Only a Portion of The Company’s Products or Lines Customer Sales Force Sells Only to Certain Customers or Industries 7

Sales Force Size Salespeople are one of a company’s most productive and expensive assets. Sales forces have been shrinking in size because of: n n Advances in selling technology, Recent merger mania. Many companies use some form of workload approach to set sales force size: n n Group accounts into different size classes, How many people are needed to call on them. 8

Other Sales Force Strategy and Structure Issues Outside Sales Force Travel to Call on Customers Sells to Major Accounts Finds Major New Prospects Inside Sales Force Conduct Business From Their Offices Via Phone or Buyer Visits Technical Support People Tele. Marketing Sales Or Assistants Internet 9

Team Selling Most companies are now using team selling to service large, complex accounts. Finds problems, solutions, and sales opportunities. Problems: can overwhelm customers, difficulties working with teams, evaluation of sales performance. 10

Some Traits of Good Salespeople 11

Recommendations for Recruiting Salespeople Current Salespeople Employment Agencies Classified Ads College Students 12

Selecting Salespeople Sales Aptitude Other Characteristics Selection Process Usually Evaluates a Person’s Analytical and Organizational Skills Personality Traits 13

Training Salespeople The Average Sales Training Program lasts for Four Months and Has the Following Goals: Help Salespeople Know & Identify With the Company Learn About the Products Learn About Competitors’ and Customers’ Characteristics Learn How to Make Effective Presentations Understand Field Procedures and Responsibilities 14

Compensating Salespeople To Attract Salespeople, a Company Must Have an Attractive Plan Made Up of Several Elements Fixed Amount Variable Amount Expense Allowance Usually a Salary Usually Commissions Or Bonuses For Job Related Expenses 15

Supervising Salespeople Directing Salespeople • Identify Customer Targets & Call Norms • Develop Prospect Target • Use Sales Time Efficiently Ø Annual Call Plan Ø Time-and-Duty Analysis Ø Sales Force Automation Motivating Salespeople • Organizational Climate • Sales Quotas • Positive Incentives Ø Sales Meetings Ø Sales Contests Ø Honors and Trips Ø Merchandise/ Cash 16

How Salespeople Spend Their Time (Fig. 16. 2) Service Calls 12. 7% Administrative Tasks 16% Telephone Selling 25. 1% Face-to-Face Selling 28. 8% Waiting/ Traveling 17. 4% Companies Look For Ways to Increase the Amount of Time Salespeople Spend Selling. 17

Evaluating Salespeople Management gets information about its salespeople in several ways: n n Sales reports, call reports, expense reports, and Personal observations, customer surveys, etc. Formal evaluation of performance can be done qualitatively or quantitatively. Evaluation methods of performance include: n n Comparing salespeople’s performance to others, Comparing current sales with past sales. 18

Discussion Connections As you did at the start of the chapter, envision a typical salesperson. n Have your perceptions of salespeople changed after what you’ve just read and discussed? How? Be specific. Many people feel they do not have the attributes and abilities required for successful selling. What role does training play in helping a person develop selling skills and abilities? State what your career ambition is and briefly state how you might be involved in selling. 19

Major Steps in Effective Selling (Fig. 16. 3) Prospecting and Qualifying Preapproach Approach Presentation and Demonstration Handling objections Closing Follow-up 20

Steps in the Selling Process Prospecting Salesperson Identifies Qualified Potential Customers. Qualifying Process of Identifying Good Prospects and Screening Out Poor Ones. Preapproach Salesperson Learns as Much as Possible About a Prospective Customer Before Making a Sales Call. Approach Salesperson Meets the Buyer and Gets the Relationship Off to a Good Start. 21

Steps in the Selling Process Presentation Salesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction Approach. Handling Objections Salesperson Seeks Out, Clarifies, and Overcomes Customer Objections to Buying. Closing Salesperson Asks the Customer for an Order. Follow-Up Occurs After the Sale and Ensures Customer Satisfaction and Repeat Business. 22

What is Relationship Marketing? Relationship Marketing is the Process of Creating, Maintaining, and Enhancing Strong, Value. Laden Relationships With Customers and Other Stakeholders. 23

Review of Concept Connections Discuss the role of a company’s salespeople in creating value for customers and building customer relationships. Explain how companies design sales force strategy and structure. Explain how companies recruit, select, and train salespeople. Describe how companies compensate and supervise salespeople, and how they evaluate sales force effectiveness. Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing. 24