1. Personal Selling and Sales Management
Chapter 16
Personal Selling and Sales Management

2. Nature of Personal Selling
Most salespeople are well-educated, well-trained professionals who work to build and maintain long-term relationships with customers.
The term salesperson covers a wide spectrum of positions from:
Order taker (department store salesperson)
Order getter (someone engaged in creative selling)
Missionary salesperson (building goodwill or educating buyers)

3. What is Personal Selling?
Involves Two-Way, Personal Communication Between Salespeople and Individual Customers Whether:
face to face,
by telephone,
through video conferencing,
or by other means.

4. The Role of the Sales Force
Personal selling is effective because salespeople can:
probe customers to learn more about their problems,
adjust the marketing offer to fit the special needs of each customer,
negotiate terms of sale, and
build long-term personal relationships with key decision makers.

5. The Role of the Sales Force
Represent the Company to Customers to Produce Company Profit
Sales Force
Serves as a Critical Link
Between a Company and its Customers Since They:
Represent Customers to
the Company to Produce Customer Satisfaction

6. Major Steps in Sales Force Management (Fig. 16.1)
Designing Salesforce Strategy and Structure
Recruiting and Selecting Salespeople
Major Steps in Sales Force Management (Fig. 16.1)
Training Salespeople
Compensating Salespeople
Supervising Salespeople
Evaluating Salespeople

7. Designing Sales Force Strategy and Structure
Territorial
Exclusive Territory to Sell the
Company’s Full Product Line
Designing Sales Force Strategy and Structure
Product
Sales Force Sells Only a Portion of
The Company’s Products or Lines
Complex Forms Are a Combination of Any Types of Sales Force Structures
Customer
Sales Force Sells Only to Certain
Customers or Industries

8. Sales Force Size
Salespeople are one of a company’s most productive and expensive assets.
Sales forces have been shrinking in size because of:
Advances in selling technology,
Recent merger mania.
Many companies use some form of workload approach to set sales force size:
Group accounts into different size classes,
How many people are needed to call on them.

9. Other Sales Force Strategy and Structure Issues
Outside Sales
Force
Inside Sales
Force
Conduct Business From Their
Offices Via Phone or Buyer Visits
Travel to Call on
Customers
Sells to Major
Accounts
Finds Major
New
Prospects
Technical
Support
People
Sales
Assistants
Tele-
Marketing Or
Internet

10. Team Selling
Most companies are now using team selling to service large, complex accounts.
Finds problems, solutions, and sales opportunities.
Problems: can overwhelm customers, difficulties working with teams, evaluation of sales performance.

11. Some Traits of Good Salespeople
Enthusiam
Persistence
Job Commitment
Self-Confidence
Initiative

12. Recommendations for Recruiting Salespeople
Current Salespeople
Employment Agencies
Classified Ads
College Students

13. Selecting Salespeople
Sales Aptitude
Selection Process Usually Evaluates a Person’s
Other Characteristics
Analytical and
Organizational Skills
Personality Traits

14. Training Salespeople Help Salespeople Know & Identify With the Company
Learn About the Products
Learn About Competitors’
and Customers’ Characteristics
Learn How to Make
Effective Presentations
The Average Sales Training Program lasts for Four Months and Has the Following Goals:
Understand Field Procedures
and Responsibilities

15. Compensating Salespeople
Fixed
Amount
Usually a
Salary
Variable
Usually
Commissions
Or Bonuses
To Attract Salespeople, a Company Must Have an
Attractive Plan Made Up of Several Elements
Expense
Allowance
For Job
Related
Expenses
Fringe Benefits Provide Job Security and Satisfaction

16. Supervising Salespeople
Directing Salespeople
Identify Customer Targets & Call Norms
Develop Prospect Target
Use Sales Time Efficiently
Annual Call Plan
Time-and-Duty Analysis
Sales Force Automation
Motivating Salespeople
Organizational Climate
Sales Quotas
Positive Incentives
Sales Meetings
Sales Contests
Honors and Trips
Merchandise/ Cash

17. How Salespeople Spend Their Time (Fig. 16.2)
Administrative
Service Calls
Tasks
12.7%
Companies Look For Ways to Increase the Amount of Time Salespeople Spend Selling.
16%
Telephone
Selling
25.1%
Face-to-Face
Selling
28.8%
Waiting/
Traveling
17.4%

18. Evaluating Salespeople
Management gets information about its salespeople in several ways:
Sales reports, call reports, expense reports, and
Personal observations, customer surveys, etc.
Formal evaluation of performance can be done qualitatively or quantitatively.
Evaluation methods of performance include:
Comparing salespeople’s performance to others,
Comparing current sales with past sales.

19. Discussion Connections
As you did at the start of the chapter, envision a typical salesperson.
Have your perceptions of salespeople changed after what you’ve just read and discussed? How? Be specific.
Many people feel they do not have the attributes and abilities required for successful selling. What role does training play in helping a person develop selling skills and abilities?
State what your career ambition is and briefly state how you might be involved in selling.

20. Major Steps in Effective Selling (Fig. 16.3)
Prospecting and Qualifying
Preapproach
Approach
Presentation and Demonstration
Handling objections
Closing
Follow-up

21. Steps in the Selling Process
Prospecting
Salesperson Identifies Qualified Potential Customers.
Qualifying
Process of Identifying Good Prospects and Screening Out Poor Ones.
Preapproach
Salesperson Learns as Much as Possible About a Prospective Customer Before Making a Sales Call.
Approach
Salesperson Meets the Buyer and Gets the Relationship Off to a Good Start.

22. Steps in the Selling Process
Presentation
Salesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction Approach.
Handling
Objections
Salesperson Seeks Out, Clarifies, and Overcomes Customer Objections to Buying.
Closing
Salesperson Asks the Customer for an Order.
Follow-Up
Occurs After the Sale and Ensures Customer Satisfaction and Repeat Business.

23. What is Relationship Marketing?
Relationship Marketing is the Process of Creating, Maintaining, and Enhancing Strong, Value-Laden Relationships With Customers and Other Stakeholders.

24. Review of Concept Connections
Discuss the role of a company’s salespeople in creating value for customers and building customer relationships.
Explain how companies design sales force strategy and structure.
Explain how companies recruit, select, and train salespeople.
Describe how companies compensate and supervise salespeople, and how they evaluate sales force effectiveness.
Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing.