4MD3 Business to Business Marketing Steve Howse February 23, 2009

2 Steve’s Tips Mimicking vs mocking

3 PREVIEW OF PERSONAL SELLING intro to PS BM/CM differences - PS PS as an “interface function” the PS process more PS concepts tight and loose sales leads

4 PERSONAL SELLING 75% of promotional budget face-to-face communication with individual customers the most expensive element 4.3 calls required per sale so use PS only when absolutely necessary even then maximize its effectiveness

5 WHY PS DOMINATES BUSINESS PROMOTION products more technical and complex products more often custom designed negotiation more often needed customers more often demand PS customers fewer, closer, bigger unit product costs higher

6 OTHER BM/CM DIFFERENCES - PS salespeople must be more proactive must act more like consultants must act as relationship managers must be better at product support must interact more with senior people (cont’d)

7 OTHER BM/CM DIFFERENCES – PS (CONT’D) salespeople require more sales assistance must cope with longer purchase process must deal with infrequent orders are less often on commission enjoy higher status and rewards sales force can resist corporate change more strongly

8 PERSONAL SELLING AS AN INTERFACE FUNCTION salesperson serves two masters often bearer of bad news to both feels like an outsider to both role ambiguity is high result can be stress and frustration on the plus side… on balance, great job for many!

9 THE PERSONAL SELLING PROCESS prospect organizations prospect individuals within them qualify the prospects research past purchase behaviour set up sales visit present and demonstrate handle objections close the sale follow up

10 MORE PS CONCEPTS team selling missionary selling resident salespeople male salespeople vs. female the importance of asking questions (cont’d)

11 MORE PS CONCEPTS (CONT’D) house accounts key accounts industrial showrooms or stores continuity selling (repeat sales) cross selling mirroring the customer’s purchasing structure

12 TIGHT AND LOOSE SALES LEADS meaning? tightness is created during lead generation how create tight leads? oask the prospect to accept an obligation oor to do some work how create loose leads? ouse an incentive a mix of tight and loose leads is needed