Business Marketing Communications: Personal Selling Chapter 17

Personal Selling Why is it so important in B2B? Why is it so important in B2B? Costs per sales callCosts per sales call Salespeople Salespeople What do they doWhat do they do For their company? For their company? For buyers? For buyers?

Personal Selling Relationship Marketing Relationship Marketing Selling CenterSelling Center “initiate and maintain relationships with industrial customers” “initiate and maintain relationships with industrial customers” Objectives Objectives Buying CenterBuying Center “participate in the purchasing decision and share goals and risks of that decision.” “participate in the purchasing decision and share goals and risks of that decision.” Objectives Objectives Relationship quality Relationship quality Two dimensionsTwo dimensions

Managing the Sales Force What is Sales Management? What is Sales Management? Role of strategy and forecastsRole of strategy and forecasts Organizing the Effort Organizing the Effort Depends on:Depends on: TypesTypes Geographical organization Geographical organization AdvantagesAdvantages DisadvantagesDisadvantages Product organization Product organization AdvantagesAdvantages DisadvantagesDisadvantages Market-centered organization Market-centered organization AdvantagesAdvantages DisadvantagesDisadvantages

Managing Key Accounts 80/20 rule 80/20 rule What is a key account? What is a key account? Purchases a significant volume as a percentage of salesPurchases a significant volume as a percentage of sales Involves several organizational members in the processInvolves several organizational members in the process Buys for an organization with geographically dispersed unitsBuys for an organization with geographically dispersed units Expects a carefully coordinated response and specialized servicesExpects a carefully coordinated response and specialized services Differences between key accounts and regular accounts- See next slide Differences between key accounts and regular accounts- See next slide Selecting Key Accounts Selecting Key Accounts Look at profit potential and degree to which customer values support servicesLook at profit potential and degree to which customer values support services Look at Phase 1 companies with unique support requirements that can generate $$$Look at Phase 1 companies with unique support requirements that can generate $$$ Consider degree to which transaction complements seller’s businessConsider degree to which transaction complements seller’s business

Isolating the Account Management Process What do account managers do? What do account managers do? What makes them successful? What makes them successful? Building internal relationshipsBuilding internal relationships Forging relationships with customer organizationForging relationships with customer organization Aligning and craftingAligning and crafting Enhanced internal reputationEnhanced internal reputation

Sales Administration Recruiting and Selecting Recruiting and Selecting Trade-offsTrade-offs Experience v. inexperience Experience v. inexperience Quantity v. quality Quantity v. quality RecruitingRecruiting What to demonstrate? What to demonstrate? Advantages of good recruiting efforts Advantages of good recruiting efforts Training Training What to teach peopleWhat to teach people Increasing focus on global skillsIncreasing focus on global skills Why is training so important?Why is training so important?

Sales Administration Supervision and Motivation Supervision and Motivation MotivationMotivation “amount of effort salesperson desires to expend on each of the activities or tasks associated with his of her job.” “amount of effort salesperson desires to expend on each of the activities or tasks associated with his of her job.” Model on next slide Model on next slide Three factors Three factors Two types of rewards Two types of rewards Intrinsically mediated rewardsIntrinsically mediated rewards Extrinsically mediated rewardsExtrinsically mediated rewards Job performanceJob performance Motivation Motivation Aptitude Aptitude Role perception Role perception

Sales Administration Evaluation and Control Evaluation and Control “Monitor and control salesforce to see if objectives are being met.”“Monitor and control salesforce to see if objectives are being met.” Performance measuresPerformance measures Behavior-based Behavior-based SubjectiveSubjective CharacteristicsCharacteristics Outcome-based Outcome-based ObjectiveObjective CharacteristicsCharacteristics Setting performance standardsSetting performance standards

Sales Administration What makes Job Performance decline?What makes Job Performance decline? Organizational Climate and Job SatisfactionOrganizational Climate and Job Satisfaction What can make job performance increase? What can make job performance increase? Clearly state objectives and performance requirements Clearly state objectives and performance requirements Manager watching over Manager watching over Manager giving assistance Manager giving assistance Perceptions of influencing company policy Perceptions of influencing company policy Satisfied employees  positive salespeople  ?? Satisfied employees  positive salespeople  ?? TurnoverTurnover Less likely to leave if job satisfaction is high Less likely to leave if job satisfaction is high

Models for Industrial Sales Force How to Deploy? How to Deploy? Territory Sales ResponseTerritory Sales Response Potential Potential Concentration Concentration Dispersed Dispersed Territory workload Territory workload Sales Opportunity GridSales Opportunity Grid InternetInternet Self-service Self-service Seminars Seminars