Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

How cost effective is each alternative? How effective is each alternative in carrying out the needed exchange? What are the alternative ways to carry out these communications objectives? What information must be exchanged between firm and potential customer? How effective is each alternative in carrying out the needed exchange? What are the alternative ways to carry out these communications objectives? What information must be exchanged between firm and potential customer? 1. Determining the Role of Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Price Final price negotiable Price provides adequate margin Final price negotiable Price provides adequate margin Product or Service Complex goods or services Major purchase decisions Personal demonstration required Complex goods or services Major purchase decisions Personal demonstration required Channels Channel short and direct Training needed by intermediaries Selling needed to push product through Intermediaries can provide personal selling Channel short and direct Training needed by intermediaries Selling needed to push product through Intermediaries can provide personal selling Advertising Media do not provide an effective link Information can not be provided by media Sparse market reduce advertising economies Media do not provide an effective link Information can not be provided by media Sparse market reduce advertising economies Price Product or Service Channels 2. When the Sales Force is a Major Part of MC? © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Selling activity limited to order-taking Provider Stage Attempting to persuade customer to buy Persuader Stage Seeking out buyers perceived to have a need Prospector Stage Buyers identify problems to be met by goods Problem-solver Stage Seller determines buyer needs and fulfills them Procreator Stage Buyers identify problems to be met by goods Problem-solver Stage Seeking out buyers perceived to have a need Prospector Stage Attempting to persuade customer to buy Persuader Stage Selling activity limited to order-taking Provider Stage 3. Stages of Personal Selling Evolution © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Surveying Mapmaking Guiding Fire Starting Guiding Mapmaking Surveying 4. New Roles for Salespeople © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Following up and servicing the account Closing the sale Demonstrating capabilities of the product Recommending a way to satisfy them Determining customers’ needs and wants Locating prospective customers Closing the sale Demonstrating capabilities of the product Recommending a way to satisfy them Determining customers’ needs and wants Locating prospective customers 5. Personal Selling Responsibilities © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

This is essentially a support role Requires the most skill and preparation Must assess situation, determine needs This role is much more casual Often involves straight rebuying May not actually take the order Often involves straight rebuying Must assess situation, determine needs This role is much more casual 6. Types of Sales Jobs © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Creative Selling Order Taking Missionary Sales Rep

7. 10 Traits of Effective Salespeople © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1.Ego strength: a healthy self-esteem that allows one to bounce back from rejection. 2.Sense of urgency: wanting to get it done now. 3.Ego drive: a combination of competitiveness and self esteem. 4.Assertiveness: the ability to be firm, lead the sales process, and get one’s point across confidently. 5.Risk-taking: willing to innovate and take a chance.

10 Traits of Effective Salespeople © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6.Sociable: outgoing, friendly, talkative, and interested in others. 7.Abstract reasoning: ability to understand concepts and ideas. 8.Skepticism: a slight lack of trust and suspicion of others. 9.Creativity: the ability to think differently. 10.Empathy: the ability to place oneself in someone else’s shoes.

Reach may be very limited Message can be tailored to recipient Two-way interaction with prospect Prospect isn't likely to be distracted Cost is often extremely high 8. Personal Selling Advantages and Disadvantages © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Possible management- sales force conflict Messages may be inconsistent Seller involved in purchase decision Source of research information Potential ethical problems AdvantagesDisadvantages Possible management- sales force conflict Messages may be inconsistent Seller involved in purchase decision Source of research information

Advertising Public Relations Direct Marketing Sales Promotion The Internet Sales Promotion Direct Marketing Public Relations Advertising 9. Personal Selling Combines With Other Tools © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Personal Selling

10. Quantitative Measures of Sales Results © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Orders Sales Volume Margins Customer Accounts Sales Calls Selling Expenses Sales Calls Customer Accounts Margins Sales Volume Orders Customer Service Quantitative Measures

Selling Skills 11. Qualitative Measures of Sales Results © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Sales Related Activities