© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

PERSONAL SELLING AND SALES

MANAGEMENT2020CHAPTER

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Recognize different types of personal selling.

• Describe the stages in the personal selling process.

AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Specify the functions and tasks in the sales management process.

• Determine whether a firm should use manufacturer’s representatives or a company salesforce and the number of people needed in a company’s salesforce.

AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Understand how firms recruit, select, train, motivate, compensate, and evaluate salespeople.

• Describe recent applications of salesforce automation and customer relationship management.

AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Medtronic SalespeopleVisiting hospital operating rooms to discover

new solutions to customer problems

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Nature of Personal Selling and Sales Management

• Pervasiveness of Selling

• Personal Selling in Marketing

• Creating Customer Value through Salespeople: Relationship and Partnership Selling

SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND

SALES MANAGEMENT

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Why would you use personal selling?

• Travel

• Aircraft www.airbus.com

• Real-estate

• Buyer Agent?

• Sellers Agent?

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Concept Check

1. What is personal selling?

A: Personal selling is the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Concept Check

2. What is involved in sales management?

A: Sales management involves planning the selling program as well as implementing and controlling the personal selling efforts of the firm.

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Order Taking

• Order Getting

THE MANY FORMS OF PERSONAL SELLING

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Frito-Lay SalespersonTaking inventory for a straight rebuy decision

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

FIGURE 20-2 FIGURE 20-2 How outside order-getting How outside order-getting salespeople spend their time each weeksalespeople spend their time each week

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Customer Sales Support Personnel Missionary salespeople Sales engineer Team selling

THE MANY FORMS OF PERSONAL SELLING

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Concept Check

1. What is the principal difference between an order taker and an order getter?

A: Order takes preserve an ongoing relationship with existing customers and maintain sales. Order getters identify prospective customers and create new sales.

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Concept Check

2. What is team selling?

A: The practice of using an entire team of professionals in selling to an servicing major customers.

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Prospecting

• Preapproach

• Approach

THE PERSONAL SELLING PROCESS:

BUILDING RELATIONSHIPS

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

FIGURE 20-3 FIGURE 20-3 Stages and Stages and objectives of the objectives of the personal selling personal selling processprocess

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Trade Show SalesPopular source for leads and prospects

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Dell and Cultural differences in China

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Presentation• Stimulus-Response Format

• Formula Selling Format

THE PERSONAL SELLING PROCESS: BUILDING

RELATIONSHIPS

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Presentation (cont)• Need-Satisfaction Presentation

Adaptive selling Consultative selling

• Handling Objections

• Close

• Follow-Up

THE PERSONAL SELLING PROCESS: BUILDING

RELATIONSHIPS

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Concept Check

1. What are the six stages in the personal selling process?

A: Prospecting, preapproach, approach, presentation, close, follow-up

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

How do you handle sales objections

• How many salespeople should be employed:

• NS=(NC+CF+CL)/AST

• NS=Number of Salespeople

• NC=Number of Customers

• CF=Call Frequency

• CL=Length of average call

• AST=Average amount of selling time available per year

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Concept Check

2. What is the distinction between a lead and a qualified prospect? A: A lead is the name of a person who

may be a possible customer, whereas a prospect is a person who wants or needs the product.

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Concept Check

3. Which presentation format is most consistent with the marketing concept? Why? A: The need-satisfaction presentation

format is most consistent with the marketing concept because it emphasizes problem solving.

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

FIGURE 20-4 FIGURE 20-4 The sales management processThe sales management process

THE SALES MANAGEMENT PROCESS

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Sales Plan Formulation• Setting Objectives

• Organizing the Salesforce

THE SALES MANAGEMENT PROCESS

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

FIGURE 20-5 FIGURE 20-5 Break even chart for comparing Break even chart for comparing independent agents and a company sales forceindependent agents and a company sales force

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

FIGURE 20-6FIGURE 20-6Organizing the Organizing the Sales Force by Sales Force by customer, product, customer, product,

and geographyand geography

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

FIGURE 20-6 FIGURE 20-6 Organizing the sales force by customerOrganizing the sales force by customer

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

FIGURE 20-6 FIGURE 20-6 Organizing the sales force by productOrganizing the sales force by product

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

FIGURE 20-6 FIGURE 20-6 Organizing the sales force by geographyOrganizing the sales force by geography

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Organizing the Salesforce (cont) Major account management Workload method

• Developing Account Management Policies

THE SALES MANAGEMENT PROCESS

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

FIGURE 20-7 FIGURE 20-7 Account management policy gridAccount management policy grid

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Sales Plan Implementation• Salesforce Recruitment and Selection

Emotional intelligence

THE SALES MANAGEMENT PROCESS

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

FIGURE 20-8 FIGURE 20-8 U.S. salesforce composition and U.S. salesforce composition and changechange

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Sales Plan Implementation (cont)• Salesforce Training

• Salesforce Motivation and Compensation

THE SALES MANAGEMENT PROCESS

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Mary Kay Cosmetics Top SalespersonRecognition at its annual sales meeting

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Salesforce Evaluation and Control• Quantitative Assessments

• Behavioral Evaluation

• Salesforce Automation and Customer Relationship Management• Salesforce Computerization

• Salesforce Communication

THE SALES MANAGEMENT PROCESS

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Compaq SalespersonWorking at home due to computerized

communications techniques

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Toshiba America Medical SystemsComputer technology as a sales and training device

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Toshiba America Medical SystemsComputer technology as a sales and training device

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Concept Check

1. What are the three types of selling objectives?

A: Selling objectives can be output-related, input-related, or behaviorally-related.

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Concept Check

2. What three factors are used to structure sales organizations?

A: Typically, sales organizational structures are based on geography, customer, or product.

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Concept Check

3. How does emotional intelligence tie to adaptive selling?

A: The ability to understand one’s own and others’ emotions allows quick adaptation to various situations.

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Group 2Devise a compensation plan for travel

agents inbound call centre

• What are some of the economic variables you would want to measure?

• What are some of the costs you want to control?

• What other variables would you like to track to ensure good customer service

• How do you deal with customers handled by more than one agent? Who gets the commission

• How will you calculate commission to address revenue and costs. What formula would you use

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Group 1

• Develop a sales presentation for the product in the black box

• Two audiences: • 1 people who do crafts

• 2 people who do home improvements

• How much is the product?

• What could it be used for?

• Remember to cover all elements of the sales process.