Marketing Chapter 19 Personal Selling and Sales Management

Marketing Chapter 19 Personal Selling and Sales Management Dhruv Grewal Michael Levy Mc. Graw-Hill/Irwin Copyright © 2008 by the Mc. Graw-Hill Companies, Inc. All rights reserved.

19 -2 Century 21 Realty All Time Sales Agent l l l First woman to earn over $1 M in gross closed commissions Three consecutive World Series Champion titles She gives back to her community and is a member of the National Association of Hispanic Real Estate Professionals © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -3 The Scope and Nature of Personal Selling Over the internet Telephone Face-to-face Teleconference © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -4 Professional Selling as a Career 1. People love the lifestyle 2. There is a lot of flexibility 3. There is a lot of variety in the job 4. Can be very lucrative, among the highest–paying careers for college graduates 5. Very visible to management, good for promotions © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -5 Test Your Knowledge What is the main feature that attracts college graduates to personal selling as a career? A) flexibility B) visibility to management C) job variety D) all of these choices are correct

19 -6 Personal Selling and Marketing Strategy l l l Can customize the message for a specific buyer Assists in creating strong supply chain relationships Increased customer loyalty through relationship selling Gather research input from customers Crucial to the success of CRM © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -7 Sales Force as Key to Firm Success How can companies succeed by putting the sales force and other employees first? © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -8 Case in Point: Southwest Airlines Challenge Answer Results To become the airline of choice for both business and leisure travelers. Radical philosophy of putting employees as the number one customers of the firm. Theory: happy employees make happy customers. Hire for attitude, train for skills. While other airlines are in financial difficulty Southwest has grown and expanded.

19 -9 The Value Added by Personal Selling Salespeople educate and provide advice Salespeople save time and simplify buying © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -10 The Personal Selling Process © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -11 Step One: Generate and Qualify Leads Current Customers Trade Shows Sources of Leads The Internet © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Networking Events

19 -12 Generate Leads Cold calls Telemarketing © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -13 Test Your Knowledge Which of the A) B) C) D) following is not a source of leads? current customers networking events the Internet competitors customers

19 -14 Step Two: Preapproach l l Extends the qualification procedure Set goals for what is to be accomplished © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -15 Step Three: Sales Presentation and Overcoming Reservations The presentation Handling reservations © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -16 Aligning the Personal Selling Process with the B 2 B Buying Process © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -17 Step Four: Closing the Sale l l l Getting the order Often most stressful part of sales process A “no” one day may be the foundation for a “yes” another © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -18 Step Five: Follow-Up Five Service Quality Dimensions 1. Reliability 2. Responsiveness 3. Assurance 4. Empathy 5. Tangibles (brochures, website, samples, signals of quality) © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -19 Test Your Knowledge The attitudes customers develop after the sale become the basis for how they will ________. A) treat their family when they get home B) respond to telemarketers C) judge the sales profession D) purchase in the future

19 -20 The Impact of Technology and the Internet on Personal Selling l l Instant access to their customers Access to customer research and information Training programs are more effective, easier to operate, less expensive Less time on order tracking © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -21 l l l Adding Value 19. 1: Technology. Facilitated Textbook Selling Salesforce previously had to carry physical textbooks No comprehensive customer database CRM knows exactly what book each faculty member uses Demonstrate the features of the book and show the book itself online Create custom course materials © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -22 Ethical and Legal Issues in Personal Selling The sales manager and the sales force The salesperson and the customer The sales force and corporate policy © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -23 Issues for the Sales Force and Corporate Policy 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. © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -24 Issues for the Sales Person and the Customer Discussion question Have you ever felt that you were treated unethically by a salesperson? What happened? It is the salesperson’s duty to be ethically and legally correct in all dealings with customers. © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -25 Ethical Dilemma 19. 1: Pharmaceutical Sales Ethics l l l Reps often offer doctors perks to prescribe their drugs Sampling is a double edged sword Must choose between best healthcare option or the sale of product Discussion question Do these selling methods inflate the cost? © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -26 Managing the Sales Force Sales force structure Evaluating salespeople Recruiting and selecting salespeople Managing the Sales Force Motivating and compensating salespeople Sales training © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -27 Sales Force Structure l Company sales force – – l Employees Established product lines Manufacturers representatives (independent agents) – – – Not employees Smaller firms New markets © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -28 Salesperson Duties l Order getter l Order taker l Sales support personnel l Combination of all © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -29 Test Your Knowledge Who’s primary responsibilities are identifying potential customers and engaging those customers in discussions to attempt to make a sale? A) independent agent B) order getter C) selling team D) order taker

19 -30 Recruiting and Selecting Salespeople l l l Personality Optimism Resilience Self-motivation Empathy © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -31 Recruiting for Success How does a firm that focuses on a fun product recruit salespeople who exhibit fun? © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -32 Case in Point: Mrs. Fields Cookies Challenge To hire salespeople and managers who exude happiness and fun. Answer Add an unusual requirement to the recruitment process, have the applicants sing “Happy Birthday”. Results Recruits who sang with gusto exhibited the outgoing and engaging attitude were hired for her $450 M company.

19 -33 Sales Training l All sales people benefit from training about: – – – Selling and negotiation techniques Products and service knowledge Technologies used in the selling process Time and territory management Company policies and procedures © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -34 Motivating and Compensating Salespeople Financial rewards Nonfinancial rewards © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -35 Evaluating Salespeople l l Tied to the reward structure Evaluation measures can be either objective or subjective © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

19 -36 Test Your Knowledge Sales people should only be evaluated and rewarded for those activities and outcomes that ________. A) fall under their control B) lead to higher profits for the company C) are not prohibited by the Federal Trade Commission D) generated by cold calls

19 -37 Chapter 19 Glossary l l l Cold calls: A method of prospecting in which salespeople telephone or go to see potential customers without appointments. Company sales force: Comprised of people who are employees of the selling company. Independent agents: Salespeople who sell a manufacturer’s products on an extended contract basis but are not employees of the manufacturer; also known as manufacturer’s representatives or reps. Manufacturer’s representatives: See independent agents. Order getter: A salesperson whose primary responsibilities are identifying potential customers and engaging those customers in discussions to attempt to make a sale. Order taker: A salesperson whose primary responsibility is to process routine orders or rebuys for products. Personal selling: The two-way flow of communication between a buyer and a seller that is designed to influence the buyer’s purchase decision. Qualify leads: The process of assessing the potential of sales leads. Relationship selling: 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. Sales support personnel: Employees who enhance and help with a firm’s overall selling effort, such as by responding to the customer’s technical questions or facilitating repairs. Telemarketing: Similar to a cold call, but it always occurs over the telephone. Trade shows: Major events attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry. © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin