Personal Selling & Sales Management Part 1 of 3

Objectives §Describe roles of selling and relationship management §Identify when to use personal selling §Understand contributions of a salesperson §Outline the steps involved in making a sale §Understand ongoing nature of selling & marketing §Describe major aspects of sales manager’s job §Classify various forms of sales compensation §Identify ethical issues facing sales personnel

Examples of Personal Selling Telemarketing Inside selling Retail selling Field selling §12 million people are engaged in personal selling in the United States §Represents about 10% of the work force

Advertising Personalselling Post-transaction: §Reminder and reassurance Advertising Personalselling Transaction: b Persuasion Pre-transaction: §Create recognition and info understanding Advertising Personalselling Relative Importance of Advertising and Personal Selling

Characteristics of Personal Selling Flexibility §Adapt to situations §Engage in dialog Builds Relationships §Long term §Assure buyers receive appropriate services §Solves customer’s problems §Can not reach mass audience §Expensive per contact §Numerous calls needed to generate sale §Labor intensive Con Pro

ORDER GETTERS Current customers New customers ORDER TAKERS Inside Order Takers (via mail, telephone, internet) Outside Field Sales SUPPORT PERSONNEL Missionary Salespersons Trade Salespersons Technical Salespersons Types of Salespersons

Personal Selling Tasks Order getting §Seeking out customers §Creative selling §Pioneering §Account management Order taking §Routine l writing up orders l checking invoices l assuring prompt order processing §Suggestive selling

Personal Selling Tasks §Missionary l Detailer l Goodwill l “Closers” §Cross-functional §Account service rep

You are part of the total product

The Personal Selling Process PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS APPROACHING THE PROSPECT FOLLOWING UP CLOSING THE SALE HANDLING OBJECTIONS MAKING THE SALES PRESENTATION Pre approach: QUALIFYING PROSPECTS

Prospecting: Identifying likely new customers l Leads l Developing lists of Potential Customers Pre-approach (Qualifying) 4Finding and analyzing information about prospects 4Evaluating a prospect’s potential Creative Selling Process

Approaching The Prospect HOW DO WE MAKE THE INITIAL CONTACT & BUILD RAPPORT There is only one time to make a first impression

Making The Sales Presentation § Using Persuasive communication § Hold Attention § Stimulate Interest § Desire §“Tell the product’s story” Creative Selling Process

Handling Objections l Questions l Reservations §Understand Concern §Counterarguments §Acknowledge concern §Clues to process Creative Selling Process

Iceberg Effect Simple (S – R) Complex Interactions 10% is visible 90% is invisible Competition/deals Technology Consumer Preferences Personal emotions

Overcoming Objections IF HE HADN’T TOLD ME WHAT HIS OBJECTION WAS, I NEVER WOULD HAVE BEEN ABLE TO HELP!

Closing the Sale §Closing signals §Trial close §Asking the prospect to buy Creative Selling Process

Following Up §Commitments met l Shipment l Performance §Reinforce L-R relationship §Satisfied customers rebuy & recommend Creative Selling Process

After-sales Service Ratings Speed.37 Reputation 3.38 Cost 4.39 Service Quality (SCALE: Degree of Importance) (JMR/Vol. 78) Low High § Job quality: do it right the first time § Prompt warranty work Service Award

A Key to Success Stay Close to Your Customer and LISTEN!