© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 20-1

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 20-2 PERSONAL SELLING AND SALES MANAGEMENT C HAPTER

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 20-3 AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: 1.Discuss the nature and scope of personal selling and sales management in marketing. 2.Identify the different types of personal selling. 3.Explain the stages in the personal selling process.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 20-4 AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: 4.Describe the major functions of sale management.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 20-6 SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT Nature of Personal Selling and Sales Management Selling Happens Almost Everywhere  Personal Selling Personal Selling  Sales Management Sales Management

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 20-7 FIGURE 20-1 FIGURE 20-1 Personal selling and sales management quiz 1.20% 2.$350 3.False 4.60%

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 20-8 SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT Creating Customer Value Through Salespeople: Relationship and Partnership Selling Personal Selling in Marketing  Relationship Selling Relationship Selling  Partnership Selling (or Enterprise Selling) Partnership Selling (or Enterprise Selling)

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 20-9 FIGURE 20-A FIGURE 20-A How salespeople create value for customers

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE MANY FORMS OF PERSONAL SELLING Order Taking  Outside Order Takers  Inside Order Takers, Order Clerks, or Salesclerks  Inbound Telemarketing Order Getting  Outbound Telemarketing

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 20-B FIGURE 20-B Comparing order takers with order getters

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 20-2 FIGURE 20-2 How outside order-getting salespeople spend their time each week

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE MANY FORMS OF PERSONAL SELLING Customer Sales Support Personnel  Missionary Salespeople Missionary Salespeople  Team Selling Team Selling  Conference Selling  Sales Engineer Sales Engineer  Seminar Selling

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS Personal Selling Process Prospecting  Lead  Qualified Prospect  Cold Canvassing  Prospect

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 20-3 FIGURE 20-3 Stages and objectives of the personal selling process

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 20-C FIGURE 20-C Stages in the personal selling process

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Trade Show Exhibition What stage in the personal selling process and what is its purpose?

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS Preapproach Approach

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS Presentation  Stimulus-Response Format  Formula Selling Format Stimulus-Response Presentation Stimulus-Response Presentation Suggestive Selling Formula Selling Presentation Formula Selling Presentation Canned Selling Presentation

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS Presentation  Need-Satisfaction Format Need-Satisfaction Presentation Need-Satisfaction Presentation Adaptive Selling Adaptive Selling Consultative Selling Consultative Selling

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS Presentation  Handling Objections Acknowledge and Convert the Objection Postpone Agree and Neutralize Accept the Objection Denial Ignore the Objection

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 20-D FIGURE 20-D Techniques for handling objections

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS Close  Trial Close  Assumptive Close  Urgency Close Follow-Up  Final Close

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE SALES MANAGEMENT PROCESS  Sales Plan Sales Plan  Setting Objectives Sales Plan Formulation: Setting Direction

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 20-4 FIGURE 20-4 The sales management process

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin ETHICS AND SOCIAL RESPONSIBILITY ALERT The Ethics of Asking Customers About Competitors Slide 20-39

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE SALES MANAGEMENT PROCESS Sales Plan Formulation: Setting Direction  Organizing the Salesforce Own Salesforce vs. Independent Agents

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 20-5 FIGURE 20-5 Break-even chart for comparing independent agents and a company salesforce

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE SALES MANAGEMENT PROCESS Sales Plan Formulation: Setting Direction  Organizing the Salesforce—Structure Geography Customer Product  Major (Key) Account Management Major (Key) Account Management

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 20-6 FIGURE 20-6 Organizing the salesforce by customer, product, and geography

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 20-6A FIGURE 20-6A Organizing the salesforce by geography

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 20-6B FIGURE 20-6B Organizing the salesforce by customer

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 20-6C FIGURE 20-6C Organizing the salesforce by product

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE SALES MANAGEMENT PROCESS Sales Plan Formulation: Setting Direction  Organizing the Salesforce—Size Workload Method Workload Method Developing Account Management Policies Developing Account Management Policies

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 20-7 FIGURE 20-7 Account management policy grid grouping customers according to the level of opportunity and a firm’s competitive sales position

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE SALES MANAGEMENT PROCESS Sales Plan Implementation: Putting the Plan into Action  Salesforce Recruitment and Selection Job Analysis Job Description Emotional Intelligence Emotional Intelligence  Salesforce Training

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 20-8 FIGURE 20-8 U.S. sales force composition and change

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE SALES MANAGEMENT PROCESS Sales Plan Implementation: Putting the Plan into Action  Salesforce Motivation and Compensation Straight Salary Compensation Plan Straight Commission Compensation Plan Combination Compensation Plan  Salesforce Training

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE SALES MANAGEMENT PROCESS Salesforce Evaluation and Control: Measuring Results  Quantitative Assessments Sales Quota Sales Quota  Behavioral Evaluation

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide THE SALES MANAGEMENT PROCESS Salesforce Automation and Customer Relationship Management  Salesforce Automation (SFA) Salesforce Automation (SFA)  Salesforce Computerization  Salesforce Communication

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Personal Selling Personal selling involves the two-way flow of communication between a buyer and seller, designed to influence a person’s or group’s purchase decision, usually in face-to-face communication between the sender and receiver.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Sales Management Sales management involves planning the selling program and implementing and controlling the personal selling effort of the firm.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 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.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 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.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Order Taker An order taker processes routine orders or reorders for products that were already sold by the company.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 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.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Missionary Salespeople Missionary salespeople are sales support personnel who do not directly solicit orders but rather concentrate on performing promotional activities and introducing new products.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Sales Engineer A sales engineer is a salesperson who specializes in identifying, analyzing, and solving customer problems and brings know-how and technical expertise to the selling situation but often does not actually sell products and services.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Team Selling Team selling is the practice of using an entire team of professionals in selling to and servicing major customers.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Personal Selling Process The personal selling process consists of sales activities occurring before and after the sale itself, consisting of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Stimulus-Response Presentation Stimulus-response presentation is a presentation format which assumes that given the appropriate stimulus by a salesperson, the prospect will buy.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Formula Selling Presentation Formula selling presentation is a presentation format that consists of information that must be provided in an accurate, thorough, and step-by-step manner to inform the prospect.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Need-Satisfaction Presentation Need-satisfaction presentation is a presentation format that emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 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.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 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.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 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.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Major Account Management Major account management is the practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships. Also called key account management.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 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.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Account Management Polices 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.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 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.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Sales Quota A sales quota contains specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Salesforce Automation Salesforce automation (SFA) is the use of computer, information, communication, and Internet technologies to make the sales function more effective and efficient.