©2000 Prentice Hall ObjectivesObjectives ä Designing a Sales Force ä Managing the Sales Force ä Principles of Personal Selling

©2000 Prentice Hall When might you decide to use Personal Selling? ä Tight budget (straight commission) ä Concentrated Market ä Few buyers ä High value product ä Product must be customized ä Personal contact important ä Must demonstrate product ä Product involves trade-in/up

©2000 Prentice Hall Sales force objectives Sales force strategy Sales force structure Sales force size Sales force compensation Designing the Sales Force

©2000 Prentice Hall Sales Force Structures Complexity Territorial Product Market

©2000 Prentice Hall Workload Approach to Sales Force Size ä Classify customers by size ä Determine desirable call frequencies ä Determine total sales calls needed per year ä Determine average number of sales calls per sales representative per year ä Divide total by number per rep

©2000 Prentice Hall Sales Force Compensation ä Fixed ä Variable ä Expense Allowances ä Benefits

©2000 Prentice Hall Recruiting & selecting sales representatives Training sales representatives Supervising sales representatives Motivating sales representatives Managing the Sales Force Evaluating sales representatives

©2000 Prentice Hall Time and Duty Analysis Preparation Travel Food & Breaks Waiting Selling Administration

©2000 Prentice Hall Satisfaction Rewards Performance Effort Motivation Sales Representative Motivation

©2000 Prentice Hall Evaluating Salespeople Sources of Information Sources of Information Annual Territory Marketing Plan Annual Territory Marketing Plan Work Plan Work Plan Call Reports Call Reports

©2000 Prentice Hall Training in sales techniques & professionalism Negotiation skills Relationship-building skills Improving Sales Force Effectiveness

©2000 Prentice Hall The Zone of Agreement Zone of agreement Seller’s surplus Seller’s reservation price (seller wants s or more) Seller wants to move x to the right s Buyer’s reservation price (buyer wants b or less) Buyer wants to move x to the left b x Finalcontract $ Buyer’s surplus

©2000 Prentice Hall Performance Evaluation ä Current-to-Past ä Customer Satisfaction ä Qualitative Evaluation

©2000 Prentice Hall Step 1. Prospecting andQualifying Identifying and Screening For Qualified Potential Customers. Steps in the Selling Process Learning As Much As Possible About a Prospective Customer Before Making a Sales Call. Learning As Much As Possible About a Prospective Customer Before Making a Sales Call. Step 2. Pre-approach Step 3. Approach Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start. Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start. Step 4. Presentation/Demonstration Telling the Product “Story” to the Buyer, and Showing the Product Benefits. Telling the Product “Story” to the Buyer, and Showing the Product Benefits.

©2000 Prentice Hall Steps in the Selling Process Step 5. Handling Objections Step 6. Closing Step 7. Follow-Up Seeking Out, Clarifying, and Overcoming Customer Objections to Buying. Asking the Customer for the Order. Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business.

©2000 Prentice Hall Alternative Steps: Find ’em Grab ‘em Show ‘em Answer ‘em Sell ‘em Keep ‘em

©2000 Prentice Hall ReviewReview ä Designing a Sales Force ä Managing the Sales Force ä Principles of Personal Selling