Introduction to Marketing Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Chapter 14 Objectives Identify and understand the factors that make personal selling such a critical component of promotion. Describe the selling contexts and types of salespeople. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Chapter 14 Objectives Understand and explain the sales process. Comprehend the diverse tasks and functions of the sales manager. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Chapter 14—Personal Selling and Sales Management Selling is a critical company function that is directly responsible for top line revenues. The sales forces of the best companies practice professional, consultative selling. Companies invest huge sums into their sales forces through compensation, technology, and other perquisites. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Sales and Marketing in the 21st Century Personal Selling Direct person-to-person communication designed to explain how an individual’s or firm’s goods, services, or ideas fit the needs of one or more prospective customers. Objective 1 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Sales and Marketing in the 21st Century Consultative Selling The process of helping customers reach their strategic goals by using the products and expertise of the sales organization. Objective 1 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Sales and Marketing in the 21st Century The Strategic Importance of Personal Selling Allows a firm to immediately respond to the needs of the prospect. Allows for immediate customer feedback. Results in an actual sale. Objective 1 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Sales and Marketing in the 21st Century Personal selling is usually a necessity for complex products, high-involvement buying situations, and transactions involving trade-ins. Objective 1 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Sales and Marketing in the 21st Century The Evolution of Personal Selling and the Changing Face of Sales The Hard Sell- trying every means to get the prospect to buy, regardless of whether it is in the prospect’s best interest. Relationship Selling- salesperson focuses on developing a trusting partnership in which the salesperson seeks to provide long-term customer satisfaction by listening, gathering information, educating, and adding value for the customer. Objective 1 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Sales and Marketing in the 21st Century Customer relationship management (CRM) Assists firms in identifying the best customers on which to focus their sales efforts. relies on systemized processes to profile key segments so that marketing and retention strategies can be customized for these prospective buyers. Objective 1 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Sales and Marketing in the 21st Century The Sales Professions: Rewards and Drawbacks The portrayal of salespeople as fast-talking, glad-handing, slick characters with highly questionable ethics has tainted the sales profession. In reality, salespeople are truly vital to the business world. Objective 1 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Sales and Marketing in the 21st Century Advantages of Sales Professions Great flexibility in sales activities Intrinsic rewards are gained in helping customers. Extrinsic rewards such as high potential compensation. Frequent travel opportunities. High visibility. Objective 1 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Sales and Marketing in the 21st Century Drawbacks of Sales Professions Long hours Role Conflict- anxiety caused by conflicting job demands. Role ambiguity- anxiety caused by inadequate information about job responsibilities and performance-related goals. Job anxiety- tension caused by the pressure of the job. Objective 1 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Sales and Marketing in the 21st Century Desirable Salesperson Traits Learning Oriented- open to and excited about acquiring new knowledge or skills. Customer Oriented- seek to elicit customer needs/problems and then take the necessary steps to meet those needs or solve the problem in a manner that is in the best interest of the customer. Objective 1 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Selling Contexts and Types of Sales People Three contexts in which personal selling may occur Telemarketing Over-the-counter selling Field selling Objective 2 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Selling Contexts and Types of Sales People Telemarketing Utilizes the phone for prospecting, selling, and/or following up with customers. Outbound telemarketers Inbound telemarketers Objective 2 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Selling Contexts and Types of Sales People Over-the-Counter Selling Usually conducted in retail outlets. Retail salesperson may be an order taker or an order getter. Suggestion selling- pointing out available complementary items in line with the selected item, in order to encourage an additional purchase. Objective 2 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Selling Contexts and Types of Sales People Field Selling Involves calling on prospective customers in either their business or home locations. Categorized as: Professional salespeople National account managers Missionary salespeople Support salespeople Objective 2 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Selling Contexts and Types of Sales People Sales Certification As selling evolves into the development of strategic partnerships with customers, salespeople are heralding a new level of professionalism through sales certification. Objective 2 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

The Sales Process Eight basic steps of the Sales Process: Prospecting The preapproach The approach Need identification Presentation Handling objections Gaining commitment Follow up Objective 3 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

The Sales Process Traditional Selling Method- little time is spent in the early stages of the process, making gaining commitment from the buyer difficult and time-consuming. Professional Selling Method- a great deal of time is spent in the early stages so that commitment is gained as a very natural next step. Objective 3 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

The Sales Process Prospecting Qualified Sales leads- potential customers who have a need for the salesperson’s product, the financial means to purchase the product, and the authority to make the buying decision. Referrals- obtained by the salesperson asking current customers if they know someone else who might need the product. Objective 3 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

The Sales Process Preapproach and Planning The preapproach is the collection of information about the potential customer and the customer’s company prior to the initial visit. Objective 3 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

The Sales Process Approaching the Client The approach is the development of rapport with the customer Four basic social style categories The driver The analytical The expressive The amiable Objective 3 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

The Sales Process Identifying Client Needs Through Probing Questions Success at the need-identification stage of the sales process requires asking probing questions of the prospective customer to determine needs. Organizational needs Personal needs Objective 3 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

The Sales Process Presenting the Product The presentation should be adapted to address the specific customer needs. Features versus Benefits Types of Presentations Flexible (need-satisfaction) Presentation Memorized (canned) Presentation Objective 3 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

The Sales Process Handling Objections When faced with objections, the salesperson should approach the objection as a sign of interest on the part of the prospect, and provide information that will ensure the prospect’s confidence in making the purchase. Objective 3 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

The Sales Process Gaining Commitment Commitment is gained when the prospect agrees to take the action sought by the salesperson. The salesperson must ask for the order. Objective 3 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

The Sales Process Following Up and Keeping Promises Follow-up requires that the salesperson complete any agreed upon actions. Salespeople should stay in touch after a sale to ensure that the customers are still happy with their purchase decisions. Objective 3 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Building and Managing the Sales Force Sales management is the process of planning, directing, controlling, and implementing the personal selling function of the organization. Objective 4 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Building and Managing the Sales Force Sales managers must be good leaders who can: Recruit, train, motivate, and evaluate their sales representatives Manage territories Develop sales plans and sales forecasts Accomplish the goals of the organization Objective 4 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Building and Managing the Sales Force Recruiting The individuals a sales manager hires should possess empathy, competitiveness, goal orientation, customer orientation, enthusiasm, learning orientation, organization, and self-motivation. These individuals should have values and goals that match those of the firm. Objective 4 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Building and Managing the Sales Force Sales Force Training Learning the corporate culture Building product knowledge and sales skills Using technology to fulfill job responsibilities Objective 4 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Building and Managing the Sales Force Motivating the Sales Force Sales force quotas- used throughout the sales industry to motivate salespeople and to encourage them to focus on company priorities. Sales coaching- facilitating the development of sales skills through mentoring, modeling behavior, and one-on-one interaction Objective 4 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Building and Managing the Sales Force Compensating the Sales Force Straight Salary- pay is based on units of time Straight commission- pay is based on units of results Salary plus commission- a combination of the two Objective 4 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Building and Managing the Sales Force Evaluating Sales Performance Qualitative Factors: Communication skills Product knowledge Attitude Selling skills Initiative/assertiveness Appearance/manner Knowledge of the competition Objective 4 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Building and Managing the Sales Force Quantitative Factors: Sales volume in dollars Sales volume compared to previous year’s sales Number of new accounts Net dollar profits Sales volume by dollar quota RevPASH- revenue per available salesperson hour Objective 4 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Building and Managing the Sales Force Organizing and Managing Sales Territories Geographical and Product Line Organization Organization around customers Objective 4 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Building and Managing the Sales Force Territory Allocation All salespersons should feel that their territory offers as much potential as their colleagues’ territory. All should feel that the territory division does not require that they work harder than any other salesperson. Objective 4 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

Building and Managing the Sales Force Team Selling Selling Teams consist of a salesperson, who is responsible for managing the sales cycle, and a technical expert, who provides subject matter credibility for the customer. Objective 4 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.