9 Marketing Management Personal Selling SECTION 1 7th Edition menu Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors C H A P T E R N I N E Marketing Management 7th Edition J. Paul Peter James H. Donnelly, Jr. 9 Personal Selling McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

9 SECTION 1 Personal Selling and Marketing menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Personal Selling and Marketing Through personal selling a salesperson dispenses knowledge to buyers. Through personal selling, a salesperson negotiates price and terms for specialty goods and commercial products. Salespeople act as a source of market intelligence for management and company information for clients. 9

9 SECTION 1 Sales Process Two basic factors: menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Sales Process Two basic factors: The objectives the salesperson is trying to achieve while engaged in selling activities The sequence of stages or steps the salesperson should follow to achieve the objectives 9

9 SECTION 1 Evolution of Personal Selling menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Evolution of Personal Selling FIGURE 9-3 Production Sales Marketing Partnering Time Period Objective Orientation Role of Salesperson Activities of Salespeople Before 1930 1930- 1960 1960- 1990 After 1990 Making sales Making sales Satisfying needs Building Relationships Short-term seller needs Short-term seller needs Short-term customer needs Long-term needs of both 9 Problem solver Value creator Provider Persuader Taking orders; Delivering goods Aggressive persuasion Matching products and needs Creating new alternatives

9 SECTION 1 Use Personal Selling when . . . . . . products are . . . menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Use Personal Selling when . . . . . . products are . . . New and different Customizable Technically complex Expensive and require negotiation Installable 9

9 SECTION 1 Salesforce Objectives menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Salesforce Objectives Provide information – especially in the case of new products Persuasade – distinguishing attributes, creating repeat customers, maximizing sales as a percent of presentations, etc. After-sale service – delivery, installation, resolve concerns Assure customer satisfaction Maximize benefits and margin 9

9 SECTION 1 Building Relationships with Sales PROSPECTING menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Building Relationships with Sales PROSPECTING PLANNING THE SALES CALL PRESENTING RESPONDING TO OBJECTIONS 9 OBTAINING COMMITMENT BUILDING LONG-TERM RELATIONSHIP FIGURE 9-1

menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Prospecting The process of locating potential customers . . . Lead – a candidate to whom a sale can be made—target of prospecting process, Random lead generation – mass appeals that require a high number of contacts to generate qualified leads, and Selected-lead searching – uses existing contact to generate new ones—often called referrals . . . 9

9 SECTION 1 Planning the Sales Call Research and know your prospect menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Planning the Sales Call Research and know your prospect Know your product and product line thoroughly Know your competitor’s products and product line Know the market for your product(s) and the needs they satisfy Schedule time with the prospect 9

menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Presenting Be well prepared and set a goal for your presentation Develop a checklist of items for discussion Schedule an appointment Put your contacts at ease Strive to make a good impression Adapt your style to the prospect Work toward your goal Schedule follow-up to achieve a sale 9

9 SECTION 1 Overcoming Objections menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Overcoming Objections Expect objections to occur at any time, especially during efforts to secure appointments, during the presentation, during attempts to obtain a commitment, and during the after-sale follow-up 9

9 SECTION 1 Obtaining Commitment menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Obtaining Commitment Moving toward commitment begins with a scheduled presentation. Know why a purchase will benefit your prospect. Ask for commitment (the order)– some trainers say, “As early and often.” An experienced salesperson knows when and how to ask for commitment. Follow-up with a clear, mutually acceptable action plan. Be persistent. 9

9 SECTION 1 Long-term Relationships menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Long-term Relationships Establish and maintain a prospect and customer database. Monitor orders to deliver on-time, on-budget. Ensure appropriate use of your product. Provide customers ongoing guidance and support. Analyze customer feedback and respond to anticipate needs and problems. Assure customer satisfaction through attention and response. 9

9 SECTION 1 Cross-functional Selling menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Cross-functional Selling Master the benefits of cross-functional selling. Improved sales productivity – both more effective and efficient with delegated tasks. 2. More flexibility and quicker decisions – especially good for small runs of tailored products and customer problem solving. 3. Better decisions – more expertise, better informed alternatives. 4. Increased customer satisfaction – energy, flexibility, commitment and follow-up. 9

9 SECTION 1 Sales Specialists menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Sales Specialists Missionary salespeople – focus on detailing existing products and introducing new ones. (e.g.: Pharmaceuticals) Technical sales specialists – support the field sales staff by providing technical assistance and client counsel, when appropriate. Cross-functional sales team – blend the talents and knowledge of functional areas to better meet client needs. 9

9 SECTION 1 Supporting Selling Firms provide . . . menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Supporting Selling Firms provide . . . Efficient and effective sales tools, continuous training, and adequate advertising support. Efficient follow-up, delivery and reorder systems. Equitable compensation to reward performance. Adequate supervision and evaluation of performance for continual improvement. 9

9 SECTION 1 Sales Force Control menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Sales Force Control Sales managers control sales forces by . . . Forecasting sales accurately. Establishing territories and quotas that benefit the firm and the sales person mutually. Analyzing expenses and realigning to improve sales results. Motivating individual sales persons, and Compensating performance for satisfaction and improvement. 9

9 SECTION 1 Sales Forecasting Used to establish quotas menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Sales Forecasting Used to establish quotas Used to plan the personal selling efforts and other types of promotional activities Used to budget expenses Used to plan and coordinate production, logistics, inventories, personnel and so forth. 9

9 SECTION 1 Forecasting Methods menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Forecasting Methods Jury of executive method – combines and averages view of top management from various departments Sales force composite –the sales force becomes the jury Customer expectations – asking customer how much they expect to purchase and by what date Time-series analysis – using past data to forecast future sales Correlation analysis – analyzing dependent and independent variables driving sales volume Other quantitative functions – growth functions and simulation models 9

menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Sales Quotas Sales management assigns minimum sales goals in the form of quotas to . . . . . . provide incentives for salespeople. . . . provide a quantitative standard for performance measurement. . . . evaluate and control the efforts of the sales force. . . . assist individual with personal goal setting. 9

9 SECTION 1 Sales Force Technology menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Sales Force Technology Selected technology can improve sales performance. These elements top the list. Cell phones - 89% E-Mail – 85% Presentation Software – 85% Desktop PCs – 68% Notebook Computers – 63% Contact Management Software – 55% 9

9 SECTION 1 Performance Evaluation Effort-Oriented Measures menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Performance Evaluation Effort-Oriented Measures Number of sales call made Number of MRO calls made Number of complaints handled Number of checks on resellers stocks Uncontrollable lost job time Number of inquiries followed up Number of demonstrations completed 9

9 SECTION 1 Performance Evaluation Results-Oriented Measures menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Performance Evaluation Results-Oriented Measures Sales volume Sales volume as a percentage of quota Sales profitability Number of new accounts Number of stockouts Number of distributors participating in programs Number of lost accounts Number of customer complaints Distributor sales-inventory ratios 9 From Ingram, LaFroge and Schwepker

9 SECTION 1 Performance Incentives Positive feedback Company praise menu SECTION 1 Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors Performance Incentives Positive feedback Company praise Bonus Salary increase Pay for performance for specific new ideas Paid educational allowance Earned time off Stock options Fringe benefits Vested Retirement Plan Profit Sharing 9 From Churchill, Ford and Walker

9 SECTION 1 The Authors menu J. Paul Peter, Ph.D. Chapter Nine Personal Selling and Marketing Sales Process Evolution of Personal Selling Use Personal Selling When... Salesforce Objectives Building Relationships Prospecting Planning the Sales Call Presenting Overcoming Objections Obtaining Commitment Long-term Relationships Cross-functional Planning Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation Performance Incentives The Authors The Authors J. Paul Peter, Ph.D. University of Wisconsin – Madison 3Click image to go to author’s web site James H. Donnelly, Jr., Ph.D. University of Kentucky – Lexington 3Click image to go to author’s web site 9 Marketing Management 7th Edition – McGraw-Hill 3Click on the book to go to the book site PowerPoint design by Lance Fuhrer, MBA PowerPoint content by Larry Fuhrer, MBA, MBA Keller Graduate School of Management of DeVry University