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Identify the different types of personal selling. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 20, YOU SHOULD BE ABLE TO: Discuss the nature and scope of personal selling and sales management in marketing. LO1 LO2 Identify the different types of personal selling. LO3 Explain the stages in the personal selling process. LO4 Describe the major functions of sales management. 20-2

XEROX DELIVERS AN EXCEPTIONAL CUSTOMER EXPERIENCE BY SELLING THE WAY CUSTOMERS WANT TO BUY 20-3

SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT LO1 Personal Selling Sales Management Selling Happens Almost Everywhere “Everyone Lives by Selling Something” Personal Selling in Marketing 20-4

FIGURE 20-1 Personal selling and sales management quiz FIGURE 20-1 Personal selling and sales management quiz. What are your answers? 20-5

FIGURE 20-A How salespeople create value for customers 20-6

SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT LO1 Relationship Selling Partnership Selling Enterprise Selling 20-7

THE MANY FORMS OF PERSONAL SELLING ORDER TAKING LO2 Order Taker Outside Order Takers Inside Order Takers Order Clerks Salesclerks Inbound Telemarketing 20-8

THE MANY FORMS OF PERSONAL SELLING ORDER GETTING LO2 Order Getter Outside Order Getters Inside Order Getters Outbound Telemarketing 20-9

FIGURE 20-2 How outside order-getting salespeople spend their time each week 20-10

FIGURE 20-B Comparing order takers and order getters 20-11

THE MANY FORMS OF PERSONAL SELLING CUSTOMER SALES SUPPORT PERSONNEL LO2 Missionary Salespeople Sales Engineer Team Selling Conference Selling Seminar Selling 20-12

FIGURE 20-3 Stages and objectives of the personal selling process 20-13

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PROSPECTING LO3 Personal Selling Process Prospecting Stage 20-14

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PROSPECTING LO3 Types of Prospects Lead Prospect Qualified Prospect Cold Canvassing 20-15

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PREAPPROACH LO3 Preapproach Stage 20-16

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS APPROACH LO3 Approach Stage Customs Gestures 20-17

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PRESENTATION LO3 Presentation Stage 20-18

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PRESENTATION LO3 Formats Stimulus-Response Presentation Suggestive Selling 20-19

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PRESENTATION LO3 Formats Formula Selling Presentation Canned Sales Presentation 20-20

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PRESENTATION LO3 Formats Need-Satisfaction Presentation Adaptive Selling Consultative Selling 20-21

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PRESENTATION LO3 Handling Objections Acknowledge and Convert Postpone Agree and Neutralize Acceptance Denial Ignore 20-22

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS CLOSE LO3 Close Stage 20-23

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS CLOSE AND FOLLOW-UP LO3 Forms Trial Close Assumptive Close Urgency Close Final Close 20-24

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS FOLLOW-UP LO3 Follow-up Stage 20-25

FIGURE 20-4 The sales management process involves sales plan formulation, implementation, and evaluation 20-26

THE SALES MANAGEMENT PROCESS SALES PLAN FORMULATION LO4 Sales Plan Setting Objectives Scope Behaviorally-Related Output-Related Competition-Related Input-Related 20-27

MAKING RESPONSIBLE DECISIONS The Ethics of Asking Customers About Competitors 20-28

THE SALES MANAGEMENT PROCESS SALES PLAN FORMULATION LO4 Organizing the Salesforce Own Salesforce vs. Independent Agents 20-29

FIGURE 20-5 A break-even chart for comparing a company salesforce and independent agents 20-30

THE SALES MANAGEMENT PROCESS SALES PLAN FORMULATION LO4 Organizing the Salesforce Structure of the Salesforce Customer Product Geography Key Account Management 20-31

FIGURE 20-6 Organizing the salesforce by customer, product, and geography 20-32

FIGURE 20-6A Organizing the salesforce by customer 20-33

FIGURE 20-6B Organizing the salesforce by product 20-34

FIGURE 20-6C Organizing the salesforce by geography 20-35

THE SALES MANAGEMENT PROCESS SALES PLAN FORMULATION LO4 Organizing the Salesforce Workload Method Account Management Policies 20-36

FIGURE 20-7 An account management policy grid grouping customers according to the level of opportunity and a firm’s competitive sales position 20-37

THE SALES MANAGEMENT PROCESS SALES PLAN IMPLEMENTATION LO4 Salesforce Recruitment and Selection Job Analysis Job Description Emotional Intelligence Diversity 20-38

GOING ONLINE What is Your Emotional Intelligence? Self-Motivation Skills Self-Awareness Managing One’s Emotions Empathy Social Skills 20-39

FIGURE 20-8 U.S. salesforce composition by gender and racial/ethnic 20-40

THE SALES MANAGEMENT PROCESS SALES PLAN IMPLEMENTATION LO4 Salesforce Training Salesforce Motivation & Compensation Straight Salary Straight Commission Combination Nonmonetary 20-41

THE SALES MANAGEMENT PROCESS SALESFORCE EVALUATION LO4 Quantitative Assessments Sales Quota Behavioral Evaluation Subjective Measures Customer Satisfaction 20-42

USING MARKETING DASHBOARDS Tracking Salesperson Performance at Moore Chemical & Sanitation Supply, Inc. 20-43

THE SALES MANAGEMENT PROCESS SALESFORCE AUTOMATION AND CUSTOMER RELATIONSHIP MANAGEMENT LO4 Salesforce Automation (SFA) Salesforce Technology Home Offices Salesforce Communication Internet 20-44

XEROX: BUILDING CUSTOMER RELATIONSHIPS THROUGH PERSONAL SELLING VIDEO CASE 20 20-45

VIDEO CASE 20 XEROX 1. Why was Anne Mulcahy’s experience as a sales representative an important part of Xerox’s growth in recent years? 20-46

VIDEO CASE 20 XEROX 2. How did the sales approach change after Mulcahy became the CEO of Xerox? 20-47

VIDEO CASE 20 XEROX 3. How does Xerox create customer value though its personal selling process? How does Alison Capossela provide solutions for Xerox customers? 20-48

VIDEO CASE 20 XEROX 4. Why is the Xerox training program so important to the company’s success? 20-49

IQ VS. E-IQ AND SMART SALESPEOPLE SUPPLEMENTAL LECTURE NOTE 20-1 20-50

STUDENTS’ PERCEPTIONS OF SELLING IN-CLASS ACTIVITY 20-1 20-51

20-52

Personal Selling Personal selling is the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision. 20-53

Sales Management Sales management consists of planning the selling program and implementing and controlling the personal selling effort of the firm. 20-54

Relationship Selling Relationship selling is the practice of building ties to customers based on a salesperson’s attention and commitment to customer needs over time. 20-55

Partnership Selling Partnership selling is the practice whereby buyers and sellers combine their expertise and resources to create customized solutions, commit to joint planning, and share customer, competitive, and company information for their mutual benefit, and ultimately the customer. Also called enterprise selling. 20-56

Order Taker An order taker processes routine orders or reorders for products that were already sold by the company. 20-57

Order Getter An order getter sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers’ use of a product or service. 20-58

Team Selling Team selling is the practice of using an entire team of professionals in selling to and servicing major customers. 20-59

Personal Selling Process The personal selling process consists of sales activities that occur before and after the sale itself, consisting of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up). 20-60

Stimulus-Response Presentation A stimulus-response presentation is a presentation format which assumes that given the appropriate stimulus by a salesperson, the prospect will buy. 20-61

Formula Selling Presentation A formula selling presentation is a presentation format that consists of information which must be provided in an accurate, thorough, and step-by-step manner to inform the prospect. 20-62

Need-Satisfaction Presentation A need-satisfaction presentation is a presentation format that emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers. 20-63

Adaptive Selling Adaptive selling is a need-satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information. 20-64

Consultative Selling Consultative selling is a need-satisfaction presentation format that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution. 20-65

Sales Plan A sales plan is a statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed. 20-66

Key Account Management Key account management is the practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships. 20-67

Workload Method The workload method is a formula-based method for determining the size of a salesforce that integrates the number of customers served, call frequency, call length, and available selling time to arrive at a figure for the salesforce size. 20-68

Account Management Policies Account management policies specify whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out. 20-69

Emotional Intelligence Emotional intelligence is the ability to understand one’s own emotions and the emotions of people with whom one interacts on a daily basis. 20-70

Sales Quota A sales quota consists of specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period. 20-71

Salesforce Automation (SFA) Salesforce automation (SFA) is the use of computer, information, communication, and Internet technologies to make the sales function more effective and efficient. 20-72