For use only with Perreault and McCarthy texts. © 2006 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin CHAPTER FOURTEEN CHAPTER FOURTEEN Personal Selling

1. Understand the importance and nature of personal selling. 2. Know the three basic sales tasks and what the various kinds of salespeople can be expected to do. 3. Know how technology affects the way sales are performed. 4. Know what the sales manager must do—including selecting, training, and organizing salespeople—to carry out the personal selling job. 5. Understand how the right compensation plan can help motivate and control salespeople. 6. Understand when and where to use the three types of sales presentations. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin When we finish this lecture you should

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Importance and Role of Personal Selling Exhibit 14-1

Order- Taking Order- Getting © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin What Kinds of Personal Selling Are Needed? Supporting Basic Sales Tasks Basic Sales Tasks

Wholesalers’ Order Getters Work Closely with Retailers Order Getters and Order-Getting Producers’ Order Getters Find New Opportunities © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Order Getters Develop New Business Relationships Retail Order Getters Influence Buyer Behavior

Wholesalers’ Order Takers Don’t Get Orders But Keep Them Producers’ Order Takers Train, Explain & Collaborate Order Takers and Order-Taking © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Order Takers Nurture Relationships to Keep the Business Coming Retail Order Takers Are Often Poor Sales Clerks

Technical Specialists Missionary Salespeople © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Supporting Sales Force Informs and Promotes in the Channel Team Selling Supporting Sales Tasks

Telemarketing Different Markets, Different Tasks Major Accounts Sales Force Sales Territories Different Markets, Different Tasks Major Accounts Sales Force Telemarketing Sales Territories © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Right Structure Helps Assign Responsibility Sales Force Size and Workload

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Interactive Exercise: Sales Force Workload

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin E-Commerce Sometimes Substitutes for Personal Selling Exhibit 14-2

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin An Example of Digital Self-Service +

New Software What is Done vs. How It’s Done Technology Can Be a Competitive Advantage New Hardware Great Changes in Handling Tasks Great Changes in Handling Tasks Great Changes in Handling Tasks Great Changes in Handling Tasks Good Selection and Training Needed Information Technology Provides Tools to Do the Job © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Using Technology in Personal Selling

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Sound Selection to Build a Sales Force +

Trained, Not Born Specific, Written Job Description Training to Meet a Job Description All Salespeople Need Training © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Selling Skills Can Be Learned +

Straight Commission Straight Salary Level of Compensation Method of Payment Straight Salary Straight Commission Level of Compensation Method of Payment Compensating and Motivating Salespeople © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Combination Plan

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Interactive Exercise: Sales Force Compensation

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Determining the Choice of the Pay Plan +

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Flexibility vs. Simplicity Exhibit 14-3

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Personal Selling Techniques – Prospecting and Selecting Exhibit 14-4

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Personal Selling Techniques – Sales Presentations Exhibit

Three Types of Sales Presentation Approaches May be Useful © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Prepared Approach Three Presentation Approaches Consultative Approach Selling Formula Approach Prepared Approach Consultative Approach

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin An Example of Consultative Selling

Exhibit © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Personal Selling Techniques – Closing and Follow-Up

Basic sales tasks Order getters Order getting Order takers Order taking Supporting salespeople Missionary salespeople Technical specialists Team selling © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Key Terms Major accounts sales force Telemarketing Sales territory Job description Sales quota Prospecting Sales presentation Prepared sales presentation Close

Consultative selling approach Selling formula approach © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Key Terms