Personal Communications: Personal Selling, Sales Management Dr. John Gaskins MARK 380 Principles of Marketing

Personal Selling & Sales Management  Personal selling 2-way communications2-way communications Very selectiveVery selective High controlHigh control Most persuasiveMost persuasive Most expensive per exposureMost expensive per exposure  Sales management Plan & implement the sales programPlan & implement the sales program Dr. John Gaskins 2

Dr. John Gaskins 3 Relative Importance of Personal Selling Variable Favors Personal Selling Favors Advertising CustomerProduct Geographically concentrated Relatively small number Expensive Technically complex Custom made Special handling requirements Transactions frequently involve trade-ins Geographically dispersed Relatively large number Inexpensive Simple to understand Standardized No special handling requirements Transactions seldom involve trade-ins Price Relatively high Relatively low Channels Relatively short Relatively long

Dr. John Gaskins 4 Selling Channels

Dr. John Gaskins 5 Sales Tasks  Order processing (Order taker)  Creative selling (Order getter)  Sales support Outbound: Field support repOutbound: Field support rep Inbound: Customer service repInbound: Customer service rep  Missionary selling

Order Takers vs. Order Getters Dr. John Gaskins 6

Dr. John Gaskins 7 The Selling Process

Dr. John Gaskins 8 Trends in Selling  Relationship selling  Consultative selling  Sales force automation (SFA)  Team selling

Dr. John Gaskins 9 Sales Management Functions  Establish size & structure of the sales force  Recruit & select salespeople  Train, motivate & supervise salespeople  Forecast sales  Set quotas & compensation  Evaluate performance

Dr. John Gaskins 10 “Make or Buy” the Sales Force?

Dr. John Gaskins 11 Organizing the Sales Force “Territory Assignment”

Dr. John Gaskins 12 Sales Force Organization: Major Account Organization VP Sales Eastern Region Sales Manager Major Account Sales Manager ACME Account Manager APEX Account Manager Pinnacle Account Manager Western Region Sales Manager

Dr. John Gaskins 13 Sales Force Organization: Sales Teams Account Manager Computer Hardware Dept Computer Specialist Software Department Software Specialist Test Equipment Department Test Equipment Specialist

Dr. John Gaskins 14 Training the Sales Force  Principle methods In-house classesIn-house classes OJTOJT Individual instructionIndividual instruction External seminarsExternal seminars  Techniques Role-playing exercisesRole-playing exercises LecturesLectures Videos, slides, filmsVideos, slides, films Interactive computer programsInteractive computer programs

Dr. John Gaskins 15 Motivating the Sales Force  Manager’s perception of rewards & punishment vs. those of sales people “Perverse incentives”“Perverse incentives”  Psychological encouragement Information sharingInformation sharing Contests & competitionsContests & competitions  Financial encouragement Assignments should provide as equal opportunity as possibleAssignments should provide as equal opportunity as possible

Dr. John Gaskins 16 Compensating the Sales Force  Straight salary Steady, predictable incomeSteady, predictable income Encourages customer service & other nonselling activitiesEncourages customer service & other nonselling activities  Straight commission Ties income to performanceTies income to performance Encourages sellingEncourages selling  Combination plan  Draw

How Salespeople Spend Time Dr. John Gaskins 17

Dr. John Gaskins 18 Evaluating Sales Force Performance Criteria Almost Never Almost Always Checks deliveries for timely delivery Files sales reports on time Uses promotional materials & corresponds with potential accounts Monitors competitors’ activities Brushes up on selling techniques Reads marketing research reports Prospects for new accounts Makes service calls Answers customer inquiries when they occur

Dr. John Gaskins 19 Manager’s Role in Ethics & Personal Selling  Determine policy What is ethical & unethicalWhat is ethical & unethical Investigate & take actionInvestigate & take action  Other policies support ethics policies Performance measurementPerformance measurement CompensationCompensation  Avoid teaching or encouraging high- pressure or manipulative selling techniques