Chapter Seventeen Personal Selling and Sales Management

ObjectivesObjectives bDescribe roles of selling and relationship management bIdentify when to use personal selling bUnderstand contributions of a salesperson bOutline the steps involved in making a sale bUnderstand ongoing nature of selling & marketing bDescribe major aspects of sales manager’s job bClassify various forms of sales compensation bIdentify ethical issues facing sales personnel bDescribe roles of selling and relationship management bIdentify when to use personal selling bUnderstand contributions of a salesperson bOutline the steps involved in making a sale bUnderstand ongoing nature of selling & marketing bDescribe major aspects of sales manager’s job bClassify various forms of sales compensation bIdentify ethical issues facing sales personnel

Methods of Personal Selling Telemarketing Inside selling Retail selling Field selling

Personal Selling b12 million people are engaged in personal selling in the United States bRepresents 10% of the United States work force

Characteristics of Personal Selling Flexibility bIdentify best prospects bAdapt to situations bEngage in dialog Builds Relationships bLong term bAssure buyers receive appropriate services bSolves customer’s problems

Personal Selling Limitations bCan not reach mass audience bExpensive per contact bNumerous calls needed to generate sale bLabor intensive

Personal Selling Tasks Order taking bRoutine bwriting up orders bchecking invoices bassuring prompt order processing bSuggestive selling

Personal Selling Tasks Order getting bSeeking out customers bCreative selling bPioneering bAccount management

Personal Selling Tasks bMissionary bDetailer bGoodwill b“Closers” bCross-functional bAccount service rep

The Creative Selling Process IDENTIFYING & QUALIFYING PROSPECTS APPROACHING THE PROSPECT FOLLOWING UP CLOSING THE SALE HANDLING OBJECTIONS MAKING THE SALES PRESENTATION

Creative Selling Process Identify and Qualifying Prospects bProspecting: Identifying likely new customers bLeads bQualifying: Evaluating a prospect’s potential Identify and Qualifying Prospects bProspecting: Identifying likely new customers bLeads bQualifying: Evaluating a prospect’s potential

Creative Selling Process Approaching the Prospect bContact bRapport b“Only one chance to make a first impression” Approaching the Prospect bContact bRapport b“Only one chance to make a first impression”

Creative Selling Process Sales Presentation bPersuasive communication bAttention bInterest bDesire b“Tell the product’s story” Sales Presentation bPersuasive communication bAttention bInterest bDesire b“Tell the product’s story”

Handling Objections bQuestions bReservations bUnderstand Concern bCounterarguments bAcknowledge concern bClues to process Handling Objections bQuestions bReservations bUnderstand Concern bCounterarguments bAcknowledge concern bClues to process Creative Selling Process

Closing the Sale bClosing signals bTrial close bAsk for the sale Closing the Sale bClosing signals bTrial close bAsk for the sale

Creative Selling Process Following Up bCommitments met bShipment bPerformance bReinforce relationship bSatisfied customers rebuy & recommend Following Up bCommitments met bShipment bPerformance bReinforce relationship bSatisfied customers rebuy & recommend

Sales Management Planning Organizing Directing Controlling Setting objectives Organizing activities Recruit, select, train, develop, manage, & motivate Motivate, evaluate, & control

Organizing Sales Activities Sales Territor y: bGeographic divisions bCustomer types bProduct lines bSelling task Sales Territor y: bGeographic divisions bCustomer types bProduct lines bSelling task

Geographic Division Sales Rep California Sales Rep Pacific NW Sales Rep Southeast Sales Rep Northeast District Sales Manager District Sales Manager District Sales Manager District Sales Manager Regional Sales Manager Regional Sales Manager Vice-President Marketing

Customer Type New Account #1 New Account #2 Existing Account #1 Existing Account #2 New Accounts Manager Existing Accounts Manager Vice-President Sales

Product Line Sales Rep Eastern Region Sales Rep West’n Region Sales rep Eastern Region Sales Rep West’n Region Snack Foods Sales Manager Beverages Sales Manager Vice-President Sales

Directing the Sales Force bRecruiting and selecting bTraining & develop bCompensating bMotivating

Compensation Methods Straight salary or wage Salary plus commissionStraightcommission Commission with draw Quota-bonusplan

Evaluation and Control bRequired reports bMeasurement against plan or sales standards bExpense control bProductivity bNew account development

Ethical Issues bKickbacks, bribes and “gifts” bPrice discrimination bCheating on expense accounts bMisrepresentation

ReviewReview bDescribe roles of selling and relationship management bIdentify when to use personal selling bUnderstand contributions of a salesperson bOutline the steps involved in making a sale bUnderstand ongoing nature of selling & marketing bDescribe major aspects of sales manager’s job bClassify various forms of sales compensation bIdentify ethical issues facing sales personnel bDescribe roles of selling and relationship management bIdentify when to use personal selling bUnderstand contributions of a salesperson bOutline the steps involved in making a sale bUnderstand ongoing nature of selling & marketing bDescribe major aspects of sales manager’s job bClassify various forms of sales compensation bIdentify ethical issues facing sales personnel