Personal Selling

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? Determining the Role of Personal Selling

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 When the Sales Force is a Major Part of IMC

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 Stages of Personal Selling Evolution

Surveying Mapmaking Guiding Fire Starting Guiding Mapmaking Surveying New Roles for Salespeople

Customer Relationship Management The organization’s effort to develop a long term, cost effective link with individual customers for mutual benefit.

SAP Designs Software to Assists CRM

Keeping a Customer

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 Personal Selling Responsibilities

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 Types of Sales Jobs Creative Selling Order Taking Missionary Sales Rep

Sales People Have Many Responsibilities

Test Your Knowledge With the evolution of personal selling, an individual salesperson's job requirements may include: A)determining a customer's needs and wants B)demonstrating the capabilities of the firm C)following up and servicing the account D)locating prospective customers E)doing all of the above

10 Traits of Effective Salespeople 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 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 Personal Selling Advantages and Disadvantages 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 Personal Selling Combines With Other Tools Personal Selling

Personal Selling and Advertising Work Together

Test Your Knowledge By servicing an account and by cooperating and empathizing with clients, salespersons are engaging in _____ activities on behalf of their firm. A)sales promotion B)advertising C)public relations D)direct marketing E)telemarketing

Creates goodwill Involved in community Representative of the organization Rep is often best source of PR Involved in community Representative of the organization Rep is often best source of PR Combining Personal Selling and PR

Companies Offer Direct Marketing Services to Assist the Personal Selling Effort

Reps introduce promotions to trade Promotions used as selling aids for representative Promotions often targeted to rep Promotions used as selling aids for representative Promotions often targeted to rep Combining Personal Selling with Sales Promotions

Personal Selling and the Internet Work Together

Evaluating the Personal Selling Effort

The courage to change Consistent training that leads to consistent execution A clear link between company culture and value to sales strategies Rigorous management processes that drive performance The strength of the field manager Consistent training that leads to consistent execution Rigorous management processes that drive performance A clear link between company culture and value to sales strategies The strength of the field manager Characteristics Affecting Performances

Are communications objectives attained? Are promo programs being implemented? Are follow-up activities conducted well? Provide good marketing intelligence? Are promo programs being implemented? Are follow-up activities conducted well? Provide good marketing intelligence? Criteria for Judging Personal Selling's Contribution

Test Your Knowledge The ability of the sales force to feed back information regarding competitive programs and customer reactions contributes to the promotional program by fulfilling which evaluative criterion? A)attainment of communications objectives B)program implementation C)follow-up activities D)providing market intelligence E)none of the above

Quantitative Measures of Sales Results Orders Sales Volume Margins Customer Accounts Sales Calls Selling Expenses Sales Calls Customer Accounts Margins Sales Volume Orders Customer Service Quantitative Measures

Selling Skills Qualitative Measures of Sales Results Sales Related Activities