For use only with Perreault/Cannon/ McCarthy texts, © 2009 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Chapter 15 Personal Selling and Customer Service

1.Understand the importance and nature of personal selling. 2.Know the three basic sales tasks—order getting, order taking, and supporting—and what the various kinds of salespeople can be expected to do. 3.Understand why customer service presents different challenges than other personal selling tasks. 4.Know the different ways sales managers can organize salespeople so that personal selling jobs are handled effectively. 5.Know how sales technology affects the way sales tasks are performed. At the end of this presentation, you should be able to:

6.Know what the sales manager must do, including selecting, training, and organizing salespeople to carry out the personal selling job. 7.Understand how the right compensation plan can help motivate and control salespeople. 8.Understand when and where to use the three types of sales presentations. At the end of this presentation, you should be able to:

Marketing Strategy Planning Process

CH 16: Advertising & Sales Promotion Importance of personal selling Personal selling tasks Strategy decisions Personal selling process CH 15: Personal Selling and Customer Service CH 14: Promotion Intro. to Integrated Marketing Communications Personal Selling, Customer Service and Marketing Strategy Planning (Exhibit 15-1)

Sales force provides market information Helping to buy is good selling Requires strategy decisions Requires strategy decisions Salespeople can be strategy planners Personal Selling Is Important Personal Selling Is Important The Importance and Role of Personal Selling Salespeople represent whole company

Order- Taking Order- Getting Supporting Basic Sales Tasks Basic Sales Tasks What Kinds of Personal Selling Are Needed?

Wholesalers’ Order Getters Almost Hand It to Customer Producers’ Order Getters Find New Opportunities Order Getters and Order-Getting Retail Order Getters Influence Buyer Behavior Order Getters Develop New Business Relationships

Wholesalers’ Order Takers Don’t Get Orders But Keep Them Producers’ Order Takers Train, Explain, & Collaborate Order Takers and Order-Taking Retail Order Takers Are Often Poor Sales Clerks Order Takers Nurture Relationships to Keep the Business Coming

Technical Specialists Missionary Salespeople Customer Service Reps Supporting Sales Tasks Supporting Sales Force Informs and Promotes in the Channel

Julie Jones works for an investment firm. She calls on potential clients, introduces them to her firm, develops goodwill, and tries to set up contacts between customers and her firm’s account managers. Julie does not manage any accounts herself, but is using her current position as a training opportunity in hopes of moving up to an account manager position. Julie’s current position is that of a: A. order taker. B. order getter. C. missionary salesperson. D. sales manager. E. systems seller. Checking Your Knowledge

Solves problems after a purchase Part of promotion Reps are customer advocates What Is Customer Service? What Is Customer Service? Customer Service Promotes the Next Purchase

Telemarketing Different Markets, Different Tasks Team Selling Sales Force Size and Workload The Right Structure Helps Assign Responsibility Sales Territories Major Accounts Sales Force

Interactive Exercise: Sales Force Workload

Sometimes Technology Can Substitute for Personal Selling (Exhibit 15-2)

An Example of Digital Self- Service

Technology Can Be a Competitive Advantage New Software Great Changes in Handling Tasks Great Changes in Handling Tasks Good Selection and Training Needed Information Technology Provides Tools to Do the Job What is Done vs. How It’s Done What is Done vs. How It’s Done New Hardware

Using Technology in Personal Selling © 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sound Selection to Build a Sales Force

Trained, Not Born Specific, Written Job Description All Salespeople Need Training Training to Meet a Job Description

Selling Skills Can Be Learned

Straight Commission Straight Salary Level of Compensation Method of Payment Combination Plan Compensating and Motivating Salespeople

Interactive Exercise: Sales Force Compensation

Determining the Choice of the Pay Plan

Flexibility vs. Simplicity (Exhibit 15-3)

After spending two years in the insurance business, Anne McCauley decided to go to graduate school so that she could become qualified to teach high school English. Even though she had a reasonable amount of success in selling insurance, she could not deal with the variability in her income from month to month. She said, “In some months I earn all the money I need in a couple of days. In other months, I can work hard all month long and earn nothing.” She wanted a career with more regular earnings. It sounds as though Anne was on a _________ compensation plan in the insurance business. A. straight commission B. straight salary C. combination D. cost-plus Checking Your Knowledge

Key Steps in the Personal Selling Process (Exhibit 15-4) Prospect for new customers Evaluate needs of established customers and business opportunity Preplan sales call and presentation(s) Prepared presentation Consultative selling approach Selling formula approach Preplan sales call and presentation(s) Prepared presentation Consultative selling approach Selling formula approach Set effort priorities Select target customer Identify who influences purchase decision and/or who is involved in buyer-seller relationship Select target customer Identify who influences purchase decision and/or who is involved in buyer-seller relationship

A seller of asset-management services specializes in marketing his services to people connected with the publishing business, such as authors, book distributors, and bookstore owners. He often gets leads by scanning newspapers and magazines, looking for new authors whose books are favorably reviewed. This searching takes place in the _________ stage of the personal selling process. A. follow-up B. sales presentation C. closing D. prospecting E. prequalification Checking Your Knowledge

Prepared Approach Consultative Approach Three Presentation Approaches Selling Formula Approach Three Types of Sales Presentation Approaches May Be Useful

An Example of Consultative Selling © 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Key Steps in the Personal Selling Process (Exhibit 15-4) Evaluate needs Preplan sales call and presentation(s) Set effort priorities Select target customer Prospect Close the sale (get action) Make sales presentation Create interest Overcome problems/objections Arouse desire Make sales presentation Create interest Overcome problems/objections Arouse desire

Key Steps in the Personal Selling Process (Exhibit 15-4) Evaluate needs Preplan sales call and presentation(s) Set effort priorities Select target customer Prospect Close the sale (get action) Make sales presentation Follow up after sales call to establish relationship Follow-up after the purchase to maintain and enhance relationship Feedback

Light-the-Way, Inc. sells standard household items such as cleaners, trash bags, and light bulbs via telemarketing. The products are made or packaged by people who are visually impaired. The company donates a percentage of its sales revenue to organizations that provide services to the blind. The telephone sales presentation emphasizes this fact and the quality of the merchandise. The salesperson making the calls reads the same sales script to every potential customer who is called. The only opportunity for the customer to talk comes when the salesperson attempts to close the sale. This is an example of a(n): A. consultative selling approach. B. selling formula approach. C. prospecting approach. D. systems selling approach. E. prepared sales presentation. Checking Your Knowledge

1.Understand the importance and nature of personal selling. 2.Know the three basic sales tasks—order getting, order taking, and supporting—and what the various kinds of salespeople can be expected to do. 3.Understand why customer service presents different challenges than other personal selling tasks. 4.Know the different ways sales managers can organize salespeople so that personal selling jobs are handled effectively. 5.Know how sales technology affects the way sales tasks are performed. You should now be able to:

6.Know what the sales manager must do, including selecting, training, and organizing salespeople to carry out the personal selling job. 7.Understand how the right compensation plan can help motivate and control salespeople. 8.Understand when and where to use the three types of sales presentations. You should now be able to:

Basic sales tasks Order getters Order-getting Order takers Order-taking Supporting salespeople Missionary salespeople Technical specialists Customer service reps Team selling Major accounts sales force Telemarketing Sales territory Job description Sales quota Prospecting Sales presentation Prepared sales presentation Key Terms

Close Consultative selling approach Selling formula approach Key Terms