Essentials of Health Care Marketing 2 nd Ed. Eric Berkowitz Chapter 13 Sales and Sales Management

Chapter 13 Learning Objectives 1.Understand the range of alternative sales positions 2.Know the sequence of the personal sales process 3.Differentiate between alternative sales approaches 4.Recognize the elements in the management of a sales force

Introduction Personal Selling –Historically involved direct, face-to-face communication between the buyer and the seller –Now occurs via telephone, video conferencing, and computer networks –Sales people are multifaceted Also conduct relationship-building activities, market research…

Learning Objective 1 Types of Sales jobs –New business selling –Trade Selling –Missionary Selling –Technical Selling

Learning Objective 2 The personal sales process 1.Prospecting 2.Preapproach 3.Approach 4.Presentation 5.Close 6.Servicing

Learning Objective 2 The personal sales process Prospecting Targeting leads Cold calling Qualifying prospects Does the prospect have a need for my service? Can I make the people responsible for buying so aware of that need that I can make the sale? Will the sale be profitable to my company?

Learning Objective 2 The personal sales process Preapproach Information-gathering step, who is the decision maker Approach Initial meeting with the buyer Salesperson attempts to generate interest Establishing trust and credibility

Learning Objective 2 The personal sales process Presentation Sales pitch Handling buyer objections Timing objections Price objections Competitive objections Logical objections Psychological objections

Learning Objective 2 The personal sales process Presentation Handling buyer objections Agree and counter List advantages and disadvantages Positive conversion

Learning Objective 2 The personal sales process Close Asking the buyer for a commitment to purchase Trial close – getting to yes during the presentation Assumptive close – asking the buyer to choose payment terms, assuming there is a sale. Servicing Follow-up and service, relationship building

Learning Objective 3 Sales Approaches –Stimulus-response approach –Selling formula –Need satisfaction method –Consultative selling

Learning Objective 3 Sales Approaches –Stimulus-response approach Following a canned presentation Salesperson dominates communication Best for low-priced products

Learning Objective 3 Sales Approaches –Selling formula Series of steps – AIDA Attention, Interest, Desire, Action Add Conviction btw. Desire & action More customer involvement

Learning Objective 3 Sales Approaches –Need satisfaction method Most marketing oriented Need development –Identify problems Need Awareness –Make sure the customer acknowledges same problems Need fulfillment –How company can meet customer’s needs

Learning Objective 3 Sales Approaches –Consultative Selling Problem identification Salesperson is a consultant with defined area of expertise.

Learning Objective 4 Managing the Sales Function –Sales force organization Geographic Product Customer –Sales force size Workload method

Summary Personal selling is an ingredient of the promotional mix. Sales positions involve a range of sales functions. There are six steps in the personal sales process: prospecting, preapproach, approach, presentation, close, and servicing. The need-satisfaction sales method is the most marketing-oriented because it focuses on the customer’s problems. With the consultative selling method, the salesperson acts as a problem solver.

Summary continued Sales forces can be organized geographically, by product, or by customer type. A common method for determining the size of the sales force is the workload method, which estimates the work effort required to serve the market. Prior to recruitment and selection of the salesperson, the company should conduct a job analysis.

Summary continued Sales force compensation can be either straight salary, commission, or a combination plan. Sales staff evaluation should be based on input measures and output measures.