The McGraw-Hill Companies, Inc., 1998 Chapter 17 Personal Selling Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1998 1 1

Determining the Role of Personal Selling What specific information must be exchanged between the firm and potential customers? What are the alternative ways to carry out these communication objectives, other promotional mix? How effective is each alternative in carrying out the needed exchange? How cost effective is each alternative? Determining the Role of Personal Selling - The marketing manager needs to consider the role that personal selling will assume relative to other promotional mix elements, and the specific responsibilities that personal selling will assume. To determine what this role should be, four specific questions must be asked: Slide 17-1 Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1998 2 2

Stages of Personal Selling Evolution Provider (Accepting order from customers) Persuader (Convincing customers to buy) Prospector (Seeking selecting customers) Problem-solver (Translate the problems into needs) Procreator (Define the customer needs and create products and services) The Nature of Personal Selling - the evolution of personal selling. According to Tom Wotruba, the personal selling area is constantly evolving. Wotruba notes five distinct stages of personal selling (p. 546): provider stage -- activities are limited to accepting orders persuader stage-- an attempt is made to persuade the market to buy the supplier's offerings prospector stage--seeking out buyers with a need and the resources to purchase the product problem-solver stage--the seller helps to identify problems, translate them into needs, and help solve them procreator stage-- selling defines the buyers' problems, and the solutions through active buyer-seller collaboration Slide 17-2 Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1998 3 3

Personal Selling Responsibilities Locating prospective customers (identifying customers ) Determining customers’ needs and wants Recommending a way to satisfy the customers’ needs and wants Demonstrating the capabilities of the firm and its products Closing the sale Following up and servicing the account Slide 17-3 Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1998 4 4

Advantages of Personal Selling Allows for two way interaction Tailors the message Lack of distractions (Noisy) Involvement in the decision process Slide 17-4 Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1998 5 5

Disadvantages of Personal Selling Inconsistent messages Sales force/management conflict High cost Poor reach Potential ethical problems Slide 17-5 Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1998 6 6

Criteria for Evaluating Personal Selling Provision of marketing intelligence( ability of salesperson in feeding back about competitors ,customer reactions) Follow-up activities ( use and dissemination of promotional brochures with new and existing customers) Program implementations ( Number of program implemented ,displays) Attainment of communications objectives ( Number of account to whom presentation were made) Exhibit Figure 17-8 on page 558 in the text can be used to discuss the variety of criteria that may be used to evaluate personal selling contributions. While these criteria are generally offered as an evaluation of the sales force itself, an evaluation should be made regarding contributions to the promotional program objectives also. Criteria that may be used in this regard are: Slide 17-6 Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1998 7 7