1. Personal Selling and Sales Management
Chapter 17

2. Introduction to Sales Personnel
Importance of personal sales:
Direct link to the customer
Most customers see the sales person as the company
Designing the sales force internationally is one of the most important functions of the marketing department
“A salesman is someone who sells goods that won’t come back to customers who will.” (Anonymous)

3. Steps in the Selling Process
Step 1. Prospecting and Qualifying
Steps in the Selling Process
Steps in the Selling Process
This CTR corresponds to Figure 16-3 on p. 496 and relates to the material on pp
Step 2. Preapproach
Identifying and Screening For Qualified Potential Customers.
Learning As Much As Possible About a Prospective Customer Before Making a Sales Call.
Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start.
Telling the Product “Story” to the Buyer, and Showing the Product Benefits.
Step 3. Approach
Steps in the Selling Process
Prospecting and Qualifying. This step involves identifying qualified potential customers. Salespeople must always contact more people than will end up becoming a customer. Prospecting is the process of obtaining good sources of information on who might be interested in or need the product. Qualifying seeks to improve that list by separating more likely leads from poor ones.
Preapproach. This step consists of doing the background research and preparation needed to understand the needs of the potential customer. Salespeople should set specific call objectives to accomplish when contacting the prospect.
Approach. In this step consists of the first contact with the buyer and seeks to establish a good working relationship. The salesperson must be aware of the effect of his or her appearance, opening remarks, listening style, and closing comments.
Presentation and Demonstration. In this stage the salesperson presents the product "story" to the buyer and demonstrates product benefits.
Step 4. Presentation/ Demonstration

4. Steps in the Selling Process
Step 5. Handling Objections
Steps in the Selling Process
Steps in the Selling Process
This CTR corresponds to Figure 16-3 on p. 496 and relates to the material on p. 497.
Step 6. Closing
Seeking Out, Clarifying, and Overcoming Customer Objections to Buying.
Asking the Customer for the Order.
Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business.
Step 7. Follow-Up
Steps in the Selling Process
Handling Objections. This requires seeking out and resolving concerns that would stop a customer from purchasing.
Closing. This requires seeking out and resolving concerns that would stop a customer from purchasing.
Follow-up. Follow-up is a necessary part of good selling to ensure satisfaction and repeat business.

5. Factors Affecting the Importance of Personal Selling in the Promotional Mix
Variable
Conditions That Favor Personal Selling
Conditions That Favor Advertising
Consumer
Product
Geographically concentrated
Relatively low numbers
Expensive
Technically complex
Custom made
Special handling requirements Transactions frequently involve trade-ins
Geographically dispersed
Relatively high numbers
Inexpensive
Simple to understand
Standardized No special handling requirements Transactions seldom involve trade-ins
Price
Relatively high
Relatively low
Channels
Relatively short
Relatively long

6. The Evolution of Personal Selling
Today’s salesperson is usually a highly-trained professional
Sales professionals take a customer-oriented approach employing truthful, nonmanipulative tactics in order to satisfy the long-term needs of both the customer and the selling firm
Today’s professional salespeople are problem solvers who seek to develop long-term relationships with customers

7. Four Sales Channels
Over-the-counter selling: personal selling conducted in retail and some wholesale locations in which customers come to the seller’ place of business
Field selling: sales presentations made at prospective customers’ homes or businesses on a face-to-face basis

8. Four Sales Channels
Telemarketing: promotional presentation involving the use of the telephone on an outbound basis by salespeople or on an inbound basis by customers who initiate calls to obtain information and place orders
Inside selling: performing the functions of field selling but avoiding travel-related expenses by relying on phone, mail, and electronic commerce to provide sales and product service for customers on a continuing basis

9. I. Designing & Recruiting Sales Personnel
3 Ways to Design Sales Force
1. Expatriates
2. Local Nationals
3. Third Country Nationals
Advantages/Disadvantages of all 3:
1. Expatriates (declining)
Advantages
Used most when products are highly technical or requires a lot of information in order to sell
Familiar with headquarters policies, procedures
Opinions/Ideas are valued more by home office

10. I. Designing & Recruiting Sales Personnel
Disadvantages
High cost
Cultural and legal barriers
Difficult to recruit – many highly skilled will not re-locate overseas
Other type of Expatriates
Virtual Expatriates
Created by the internet and other advanced types of communications, where they manage operations in other countries, but do not move to that country.

13. I. Designing & Recruiting Sales Personnel
2. Local Nationals
Advantages
Most knowledgeable about culture, legal environments, business structure, distribution networks
Disadvantages
Home office does not see as the “experts” in the field
Seen as not being familiar with home office procedures, policies
Not the experts on the products
Difficult to recruit most skilled and knowledgeable
Recruiting the best may mean taking away from another company or competitor – this goes against some cultural believes where “loyalty” is important
Crossing Borders 17.3 pg “Avon calling – or not?”

14. I. Designing & Recruiting Sales Personnel
3. Third-Country Nationals
Advantages
If recruited within same area most are familiar with culture, language, how to conduct business
Disadvantages
Host country does not see individual as one of their own
Many of the same disadvantages to a smaller scale with the expatriate.

15. Selecting Sales and Marketing Personnel
To select personnel for international marketing positions effectively, management must choose individuals who have the following traits:
1. Maturity
4. Flexibility
2. Emotional Stability
5. Cultural Empathy
3. Breadth of Knowledge
6. Energetic and
7. Enjoy Travel

17. III. Training Sales Personnel
Types and method of training differs depending upon type of sales structure
1. Expatriates
Focus is on culture, customs, special foreign issues (not on products, selling methods, home office policies..)
2. Local Nationals/Third-County Nationals
Focus on product knowledge
More continual training
Methods of training need to be adapted to recipients’ way of learning
Internet is facilitating faster and more efficient learning for all types of sales structures

18. IV. Motivating Sales Personnel
What motivates people varies from culture to culture
Though some similarities exist in certain cultures, many cultures vary in a number of areas (individual bonuses vs. group bonuses; compensation vs. personal growth, etc)
Designing Compensation Systems
Expatriates
Things to consider
Countries with high taxes, prefer larger expense accounts, fringe benefits (things that are non-taxable)
Where the company is multi-national, sales personnel will compare compensation plans from home country to re-assigned country

20. Compensating Salespeople
This CTR relates to the material on p. 489.
Compensating Salespeople
Sales Force Compensation Plans Can Both Motivate Salespeople and Direct Their Activities.
Salary
PAYCHECK
Compensating Salespeople
Compensation can be by salary, commission or bonus, and benefits. Variations in this mixture are appropriate for differing industries, markets and sales objectives. The sales force compensation plan can (and should) be designed to motivate and direct the salesperson. This can be accomplished by adjusting the combination of the following components accordingly:
Salary. This is base rate of compensation. Salary levels communicate the importance the company places on the salesperson as an individual professional. High salaries tend to encourage company loyalty.
Commission. This is a set percentage of compensation earned on the dollar amount of products sold. High commissions encourage higher volume per salesperson.
Bonus. This is an incentive paid after reaching some specified goal.
Discussion Note: Bonuses are an extremely flexible compensation tool because they can be added to reward a broad range of goal-related behaviors. For example, a bonus added to a commission rewards individual incentive and increases effort on a product or line in which it is offered. A bonus added to group, division, or department performance encourages teamwork. A bonus based on overall company profits encourages a total systems effort.
Benefits. Benefits are compensation elements provided by the company that are not related to performance. An expense account covers costs. Medical and dental plans provide security.
Components of
Compensation
Benefits
Bonus
Commission

22. IV. Motivating Sales Personnel
2. Global Sales Force
Allows for most flexibility in creating compensation plans
See “do’s and don’ts of global compensation”
pg. 532

23. Preparing U.S. Personnel for Foreign Assignments
Obstacles to overcome
1. Reluctance to accept foreign assignment due to:
Concerns for career and family (most common)
Career fears relate to “out of sight, out of mind”
Family is uprooted in a very different environment
2. Reducing the rate of early returns
Unsuccessful family adjustment is the single most important reason for early returns.
3. Ensuring successful return home
Need to have a personal career plan designed to successfully transition the individual and family back to their home country.

24. Important Points in Recruiting Sales Personnel & Managers
Important characteristics/skills to look for when recruiting:
Cross-cultural skills
More important in most cases than technical skills
Language skills
Many believe that the more fluent in languages, the more culturally sensitive
Crossing Borders 17.6 pg. 525

25. Evaluating Salespeople
This CTR relates to the discussion on pp
Expense
Reports
Sales
Report
Sources of
Information
Evaluating Salespeople
Sources of Information. Managers get information on sales force performance from several sources, including:
The Sales Report. This is the most important source of information managers have on their salesforce.
The Work Plan. This is submitted and describes the calls and routing for the coming week or month.
Annual Territory Marketing Plans. These are outlines for building new accounts and increasing sales.
Call Reports. These log sales calls and
Expense Reports. These provide information on activity and expenses to be reimbursed.
Formal Evaluation of Performance. Many techniques are used to evaluate sales force performance for formal company objectives, including:
Comparing Salespeople’s Performance. Comparisons are helpful although many other factors influence performance such as differing conditions in each territory.
Comparing Current Sales with Past Sales. Past sales help identify trends. Interpretation is needed to evaluate trends with company expectations.
Qualitative Evaluation of Salespeople. These subjective evaluations look at a salesperson’s knowledge of the company, products, customers, competitors, territory, and tasks.
Call
Reports
Work
Plan
Annual
Territory
Marketing Plan

26. Relationship Marketing
Process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.
Based on the idea that important accounts need focused and continuous attention.