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2. 1-2 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 19 Personal Selling and Sales Management

3. 1-3 After studying this chapter you should be able to: Understand the role and importance of personal selling in the marketing communications mix. See how the key steps in personal selling depend on a relationship perspective. Identify the similarities and differences in the job responsibilities of salespeople and sales managers.

4. 1-4 Describe the key activities in sales management. Appreciate important ethical issues face by salespeople and sales managers. After studying this chapter you should be able to:

5. 1-5 Personal Selling and Sales Management Personal Selling: –The face-to-face interaction between a seller and a buyer for the purpose of satisfying buyer needs to the benefit of both Sales Management: –Provides leadership and supervision of an organization’s personal selling function.

6. 1-6 The Multiple Roles of Salespeople –Contributions of Personal Selling to Marketing: Producing Sales Revenue Meeting Buyer Expectations Providing Marketplace Information

7. 1-7 Job Roles of Salespeople Business-to-Business Sales Support:Promote product or provide technical support. New Business:Sales growth by selling new products or gaining new customers. Existing Business:Maintain and build relationships with established customer base. Sales Support:Promote product or provide technical support. New Business:Sales growth by selling new products or gaining new customers. Existing Business:Maintain and build relationships with established customer base. Direct-to-Consumer Represent seller in transactions with ultimate consumers. Includes sales people in retail, direct selling, real estate and financial services. Represent seller in transactions with ultimate consumers. Includes sales people in retail, direct selling, real estate and financial services.

8. 1-8 The Sales Process: A Relationship Approach Salesperson Attributes: Customer-oriented Honest Dependable Competent Likeable Salesperson Attributes: Customer-oriented Honest Dependable Competent Likeable Initiating Customer Relationships: Prospecting Precall Planning Approaching the customer Initiating Customer Relationships: Prospecting Precall Planning Approaching the customer Selling Strategy: Sales Territory Each Customer Each Sales Call Selling Strategy: Sales Territory Each Customer Each Sales Call Developing Customer Relationships: Sales Presentation Delivery Gaining Customer Commitment Developing Customer Relationships: Sales Presentation Delivery Gaining Customer Commitment Enhancing Customer Relationships Enhancing Customer Relationships

9. 1-9 Sales Management Activities Develop a Sales Strategy Develop a Sales Strategy Design the Sales Organization Design the Sales Organization Develop the Salesforce Develop the Salesforce Direct the Salesforce Direct the Salesforce Determine Effectiveness & Performance Determine Effectiveness & Performance

10. 1-10 Developing a Sales Strategy Developing a Relationship Strategy Developing a Sales Channel Strategy

11. 1-11 Designing the Sales Organization Should salesforce be generalists or specialists? If specialists, should they be product, market, customer, or functional specialists? Should centralized or decentralized control be used?

12. 1-12 Designing the Sales Organization How large should the salesforce be? How should customers and geographic areas be assigned to form sales territories? How should salesforce turnover be factored into sales organization design decisions?

13. 1-13 Developing the Salesforce Recruiting and Selecting Training: Initial and Continual Directing the Salesforce – Motivation – Supervision – Leadership

14. 1-14 Evaluating Performance and Effectiveness Setting Standards Evaluating Performance Analyzing Effectiveness

15. 1-15 Ethical and Legal Issues in Personal Selling Strict codes of ethics for sales people. Sales managers must take responsibility for the proper behavior of their salespeople, and they must lead by example. Salespeople should be honest in their dealings with customers and be informed of relevant laws governing their business situation.

16. 1-16 Unethical Sales Behaviors Include: Exaggerating features and benefits Lies about availability Lies about competition Sells something people don’t need Giving false answers to questions Falsifying product testimonials Passing blame for their own mistakes Pose as market researcher when doing phone sales Misrepresent warranties & guarantees Make nonbinding oral promises Bending company rules Selling dangerous or hazardous products

17. 1-17 Salesperson Competencies Involve the Ability to: 1.Go beyond product needs to assess business potential and add value to the relationship. 2.Understand the financial impact of the decisions made by your company and the client’s organization. 3.Organize company resources to build customer-focused relationships.

18. 1-18 4.Organize company resources to build customer-focused relationships. 5. Develop consultative problem solving and a willingness to change. 6.Establish a vision of a committed customer/supplier relationship. 7.Utilize self-appraisal and continuous learning by requesting feedback from customers, colleagues, and managers. Salesperson Competencies Involve the Ability to:

19. 1-19 Sales Manager Competencies Involve the Ability to: 1.Provide strategic vision 2.Organize company resources by leveraging relationships 3.Influence company strategy 4.Coach effectively 1.Provide strategic vision 2.Organize company resources by leveraging relationships 3.Influence company strategy 4.Coach effectively

20. 1-20 Sales Manager Competencies Involve the Ability to: 5.Diagnose performance 6.Select high-potential salespeople 7.Leverage technology 8.Demonstrate personal selling effectiveness 5.Diagnose performance 6.Select high-potential salespeople 7.Leverage technology 8.Demonstrate personal selling effectiveness