selling and sales mgt s & d
TRANSCRIPT
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Selling and SalesManagementSelling and SalesManagement
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ObjectivesObjectives
Identify and understand theIdentify and understand the
critical factors of personalcritical factors of personal
sellingselling
Discuss how selling has evolvedDiscuss how selling has evolved
Evaluate the advantages andEvaluate the advantages anddisadvantages of sales as adisadvantages of sales as a
professionprofession
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Describe the sellingDescribe the selling
environments and types ofenvironments and types of
personal sellingpersonal selling
Understand the sales processUnderstand the sales process
Appreciate the tasks andAppreciate the tasks andfunctions of the sales managerfunctions of the sales manager
Recognize legal/ethical issuesRecognize legal/ethical issues
ObjectivesObjectives
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Personal SellingPersonal Selling
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A form of person to personA form of person to person
communication in which acommunication in which a
salesperson works withsalesperson works withprospective buyer and attemptsprospective buyer and attempts
to influence purchase in theto influence purchase in the
direction of his or herdirection of his or hercompanys products orcompanys products or
servicesservices
Personal Selling DefinedPersonal Selling Defined
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Allows the firm toAllows the firm to
immediately respond to theimmediately respond to theneeds of the prospectneeds of the prospect
Allows for immediateAllows for immediate
customer feedbackcustomer feedbackResults in an actual saleResults in an actual sale
Importance ofPersonal SellingImportance ofPersonal Selling
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Hard sell: Formerly thoughtHard sell: Formerly thought
customers had to be forced intocustomers had to be forced into
making a purchasemaking a purchase Relationship selling: Now sellingRelationship selling: Now selling
requires the development of arequires the development of a
trusting partnership in which thetrusting partnership in which thesalesperson seeks to provide longsalesperson seeks to provide long--
term customer satisfactionterm customer satisfaction
Evolution ofPersonal SellingEvolution ofPersonal Selling
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Employment in sales is growingEmployment in sales is growing
Sales positions offer advantages:Sales positions offer advantages:
Good compensationGood compensation Intrinsic reward from helping customersIntrinsic reward from helping customers
Flexible in dayFlexible in day--toto--day activitiesday activities
HighHigh--visibility career trackvisibility career track
Limited supervisionLimited supervision
Travel opportunitiesTravel opportunities
Increasing responsibilitiesIncreasing responsibilities
Why choose the sales profession?Why choose the sales profession?
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Lawson SoftwareLawson Software
Leading Edge TechnologyLeading Edge Technology
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Desirable Salesperson TraitsDesirable Salesperson Traits
SalespersonSalesperson
Empathetic
Competitive
Goal-oriented
Adaptive
Customer-
oriented
Enthusiastic
Organized
Self-motivated
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Selling Environments and Selling TypesSelling Environments and Selling Types
Selling Environments Selling Types
Over-the-counter yOrder takeryOrder getter
Field Selling yProfessional salespeopleyNational account managersyMissionary salespeopleySupport salespeople
Telemarketing yOutboundyInbound
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Over-the-Counter SellingOver-the-Counter Selling
Order takerOrder taker
Order GetterOrder Getter
A salesperson who only processes the
purchase that the customer has already
selected
Retail outlets that are heavily oriented toward
self-service
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Over-the-Counter SellingOver-the-Counter Selling
Order takerOrder taker
Order GetterOrder Getter
A salesperson who actively seeks to provide
information to prospects, persuade
prospective customers, and close sales
Personal service oriented stores
May practice suggestion selling
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Field SellingField Selling
Help prospective customers to define their needs andthen suggest the best means of meeting those needs,
even if that requires suggesting that the prospects use a
competitive product
National account managersNational account managers
Missionary SalespeopleMissionary SalespeopleSupport SalespeopleSupport Salespeople
Professional SalespeopleProfessional Salespeople
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Field SellingField Selling
Highly skilled salespersons who call on key
customers headquarters sites, develop strategic plansfor the accounts, make formal presentations to top-
level executives, and assist with all the product
decisions at that level
Missionary SalespeopleMissionary Salespeople
Professional SalespeopleProfessional Salespeople
National account managersNational account managers
Support SalespeopleSupport Salespeople
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Field SellingField Selling
They do not seek to obtain a direct order from theircustomers
Primary goal is to persuade customers to place
orders with distributors or wholesalers
National account managersNational account managers
Support SalespeopleSupport Salespeople
Professional SalespeopleProfessional Salespeople
Missionary SalespeopleMissionary Salespeople
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Field SellingField Selling
Support the sales force in a number of ways Technical support salespeople assist with
technical aspects of sales presentations
Merchandisers may set up product displays
National account managersNational account managers
Missionary SalespeopleMissionary Salespeople
Professional SalespeopleProfessional Salespeople
Support SalespeopleSupport Salespeople
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TelemarketingTelemarketing
Utilizing the telephone for prospecting, selling,
and/or following up with customers
Outbound: the salesperson uses the telephone to call
customers
Inbound: Firms which have customers calling the
vendor company to place orders (toll-free phone
numbers)
TelemarketingTelemarketing
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The Personal Selling ProcessThe Personal Selling Process
ProspectingProspectingPrePre--
ApproachApproach
PresentationPresentationHandlingHandling
ObjectionsObjections
ApproachApproach
FollowFollow--UpUpNeedNeed
IdentificationIdentification
GainingGaining
CommitmentCommitment
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The Personal Selling ProcessThe Personal Selling Process
ProspectingProspecting
Prospecting involves finding qualified sales leadsProspecting involves finding qualified sales leads
Qualified sales leads: potential customers that have a needQualified sales leads: potential customers that have a need
for the salespersons product, and are able to buyfor the salespersons product, and are able to buy
Referrals: obtained by the salesperson asking currentReferrals: obtained by the salesperson asking current
customers if they know of someone else who might have acustomers if they know of someone else who might have a
need for the salespersons productneed for the salespersons product
ColdCold--calling: means contacting prospective customerscalling: means contacting prospective customers
without a prior arrangementwithout a prior arrangement
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Zip PakZip Pak
Prospecting Through AdvertisingProspecting Through Advertising
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Deloitte & ToucheDeloitte & Touche
ReferralsReferrals
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The Personal Selling ProcessThe Personal Selling Process
PrePre--approachapproach
The collection of information about the potentialThe collection of information about the potential
customer and the customers company prior to thecustomer and the customers company prior to the
initial visitinitial visit Researching the prospect and the company willResearching the prospect and the company will
assist the salesperson in planning the initialassist the salesperson in planning the initial
presentation to the prospective customerpresentation to the prospective customer
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The Personal Selling ProcessThe Personal Selling Process
ApproachApproach
The development of rapport with the customerThe development of rapport with the customer
The chance to make a good first impressionThe chance to make a good first impression The salesperson should adapt to the potentialThe salesperson should adapt to the potential
customers social stylecustomers social style
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Social StylesSocial Styles
Analytical Analytical DriverDriver
Amiable Amiable ExpressiveExpressive
FactFact--orientedoriented
RiskRisk
TakersTakers
RiskRisk
AdverseAdverse
PeoplePeople--orientedoriented
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Social StylesSocial Styles
RiskRisk
TakersTakers
AnalyticalAnalyticalDriverDriver
Amiable Amiable ExpressiveExpressive
FactFact--orientedoriented
RiskRisk
AdverseAdverse
PeoplePeople--orientedoriented
Very factVery fact--andand--detail orienteddetail oriented
Require time to make decisionsRequire time to make decisions
Not interested in socializingNot interested in socializing
The salesperson should inundate the analytical withThe salesperson should inundate the analytical with
facts and figures that can be supported withfacts and figures that can be supported with
documentationdocumentation
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Social StylesSocial Styles
RiskRisk
TakersTakers
AnalyticalAnalyticalDriverDriver
Amiable Amiable ExpressiveExpressive
FactFact--orientedoriented
RiskRisk
AdverseAdverse
PeoplePeople--orientedoriented
ActionAction--and goal oriented, and makes quickand goal oriented, and makes quick
decisionsdecisions
Basic facts and not big on socializingBasic facts and not big on socializing
The sales person should provide the bottomThe sales person should provide the bottom--lineline
information first and then work backward to fillinformation first and then work backward to fill--inin
essential detailsessential details
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Social StylesSocial Styles
RiskRisk
TakersTakers
AnalyticalAnalytical DriverDriver
AmiableAmiable ExpressiveExpressive
FactFact--orientedoriented
RiskRisk
AdverseAdverse
PeoplePeople--orientedoriented
A visionary with big ideas for the future but not a detailA visionary with big ideas for the future but not a detail--
oriented individualoriented individual
Hesitant to make quick decisions and will seek consensusHesitant to make quick decisions and will seek consensusfrom othersfrom others
Seeks to socialize with the salespersonSeeks to socialize with the salesperson
The salesperson should provide assurances that will reduceThe salesperson should provide assurances that will reduce
the amiables feeling of riskthe amiables feeling of risk
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Social StylesSocial Styles
RiskRisk
TakersTakers
AnalyticalAnalytical DriverDriver
AmiableAmiable
ExpressiveExpressive
FactFact--orientedoriented
RiskRisk
AdverseAdverse
PeoplePeople--orientedoriented
Loves to socialize and will frequently base the purchaseLoves to socialize and will frequently base the purchase
decision on the relationship with the salespersondecision on the relationship with the salesperson
The salesperson should establish a personal relationshipThe salesperson should establish a personal relationship
with the expressive by telling anecdotal stories, bywith the expressive by telling anecdotal stories, by
socializing outside the office and by relating personalsocializing outside the office and by relating personal
informationinformation
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The Personal Selling ProcessThe Personal Selling Process
NeedNeed
IdentificationIdentification
Requires asking probing questions of theRequires asking probing questions of the
prospective customer to determine needsprospective customer to determine needs
The salesperson should ask openThe salesperson should ask open--ended questionsended questions
Make sure that the customers needs and potentialMake sure that the customers needs and potential
concerns are addressedconcerns are addressed
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The Personal Selling ProcessThe Personal Selling Process
PresentationPresentation
The focus of the sales presentation is theThe focus of the sales presentation is the
salespersons explanation of how the features of thesalespersons explanation of how the features of the
product provide benefitsproduct provide benefits
Presentation may be flexible or memorizedPresentation may be flexible or memorized
The salesperson should be prepared to provideThe salesperson should be prepared to provide
documentation for any statements of fact that aredocumentation for any statements of fact that are
mademade
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The Personal Selling ProcessThe Personal Selling Process
HandlingHandling
ObjectionsObjections
The salesperson may have failed to provideThe salesperson may have failed to provide
adequate information, or have not demonstratedadequate information, or have not demonstrated
how the product meets the needs of the prospecthow the product meets the needs of the prospect
Objection as a sign of interest on the part of theObjection as a sign of interest on the part of theprospectprospect
Provide information that will ensure the prospectsProvide information that will ensure the prospects
confidence in making the purchaseconfidence in making the purchase
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The Personal Selling ProcessThe Personal Selling Process
GainingGaining
CommitmentCommitment
Commitment is gained when the prospect agrees toCommitment is gained when the prospect agrees totake the action sought by the salespersontake the action sought by the salesperson
The salesperson must ask for commitmentThe salesperson must ask for commitment
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The Personal Selling ProcessThe Personal Selling Process
FollowFollow-- UpUp
The salesperson complete any agreed upon actionsThe salesperson complete any agreed upon actions
The salesperson should stay in touch after the sale byThe salesperson should stay in touch after the sale by
writing thankwriting thank--you notes, clipping and mailingyou notes, clipping and mailingnewspaper articles of interest to the prospect andnewspaper articles of interest to the prospect and
calling on the customer to ensure the customerscalling on the customer to ensure the customers
satisfactionsatisfaction
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Sales CertificationSales Certification
Several organizations now offer certification
programs that are designed to increase theprofessionalism and expertise of the salespeople
IGNOUIGNOU
N I SN I S
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Sales ManagementSales Management
Recruit, train, motivate, and evaluate their
sales representatives
Manage territories Develop sales plans and sales forecasts
Identify business opportunities and create
appropriate strategies Encourage the sales team to create added-
value for the customer
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RecruitingRecruitingSales ManagementSales ManagementSales ManagementSales Management
Individuals with desirable salesperson traits
Individuals whose values and goals match
those of the firm
SalespersonSalesperson
Empathetic
Competitive
Goal-oriented
AdaptiveCustome
r-
oriented
Enthusiastic
Organized
Self-motivated
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Sales Force TrainingSales Force Training
Train the new sales representatives on product
and customer knowledge and selling skills
Sales training is expensive but the pay off is
worth it.
All sales representatives should periodically
receive training to keep up-to-date and to keep
their skills honed
Sales ManagementSales ManagementSales ManagementSales Management
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Motivating the Sales ForceMotivating the Sales Force
Provide further motivation to salespeople and to
encourage salespeople to focus on the priories ofthe company
Reward when the pre-specified performance level
(quota) is reached
Sales ManagementSales ManagementSales ManagementSales Management
Sales Force QuotasSales Force Quotas
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Motivating the Sales ForceMotivating the Sales Force
Regular praising of salespeople and let them know
their efforts are appreciated Rapport-building, open communication, and
modeling behavior
Good sales management feedback
Sales ManagementSales ManagementSales ManagementSales Management
Sales CoachingSales Coaching
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Sales ManagementSales ManagementSales ManagementSales Management
Sales Force CompensationSales Force CompensationSales Force CompensationSales Force Compensation
RegionalSalaries
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Sales ManagementSales ManagementSales ManagementSales Management
Sales Force CompensationSales Force CompensationSales Force CompensationSales Force Compensation
The sales force have greater security butThe sales force have greater security but
no desire to put extra effortsno desire to put extra efforts
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Sales ManagementSales ManagementSales ManagementSales Management
Sales Force CompensationSales Force CompensationSales Force CompensationSales Force Compensation
A great deal of insecurity due toA great deal of insecurity due to
uncontrollable factors like economicuncontrollable factors like economic
recessionrecession
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Sales ManagementSales ManagementSales ManagementSales Management
Sales Force CompensationSales Force CompensationSales Force CompensationSales Force Compensation
Bonus paid onBonus paid on
this differencethis difference
Salaryplus CommissionSalaryplus Commission
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Evaluation of PerformanceEvaluation of Performance
Sales managers should provide continualguidance and feedback
Use more quantitative methods of evaluation
to reduce bias in the evaluation process
Sales ManagementSales ManagementSales ManagementSales Management
Qualitative
factors
communication skills, product knowledge,
attitude, selling skills, initiative/aggressiveness,
appearance/manner, and knowledge of the
competition
Quantitativefactors
sales volume in dollars, sales volume to previousyears sales, number of new accounts, net dollar
profits and sales volume by dollar quota
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Territory Organization andManagementTerritory Organization andManagement
Whichmethod to organize the territory?
Byproduct line or by geographical area
Around customer
Sales ManagementSales ManagementSales ManagementSales Management
The salesperson calls on customers that
represent dozens of different industry(more traditional)
The salesperson is asked to call oncustomers in one or two specific industries,
regardless of where the customer is located
geographically
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Territory Organization andManagementTerritory Organization andManagement
Each salesperson should feel his/her territory offers as
much potential as each colleagues territory Each salesperson should feel the territory division does
not require that he/she work any harder than any other
salesperson
Sales ManagementSales ManagementSales ManagementSales Management
Territory AllocationTerritory AllocationTerritory AllocationTerritory Allocation
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Territory Organization andManagementTerritory Organization andManagement
The sales manager should help the sales force maximize
their territories potential
Make sure that the salespeople are not meeting theirquotas from the large purchases of one key buyer
Utilize market research to ensure no potential accounts
are being overlooked in any given territory
Sales ManagementSales ManagementSales ManagementSales Management
Territory PotentialTerritory PotentialTerritory PotentialTerritory Potential
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Sales Force TechnologySales Force Technology
The use of technology among sales
forces is growing
Sales managers must be computer
literate
Notebook computers, cellular phones,
and portable fax machines
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Legal and Ethical issuesLegal and Ethical issues
Obey the instructions of the company Act with due diligence
Be responsible for the companys property
Exhibit loyalty Relay information to the company that is
relevant
Salespersons ObligationsSalespersons Obligations
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Legal and Ethical issuesLegal and Ethical issues
Companys ResponsibilityCompanys Responsibility
Comply with any agreement made between thecompany and the salesperson
Reimburse the sales expenses incurred while
carrying out the business
Warn the salesperson of any risks associated withbusiness practices
Protect the salesperson against legal liability
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Unethical/Illegal BehaviorsUnethical/Illegal Behaviors
Price discrimination and unfair pricing
Gifts, gratuities, and bribes
Misleading advertising
Unfair competitive practices
Defrauding customers
Unfair credit practices
Price collusion with competitive firms
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Selling ActivitiesSelling Activities
Performing the salesPerforming the sales
functionfunction
Working with ordersWorking with orders
Servicing the productServicing the product
Servicing the accountServicing the account
Providing theProviding the
information toinformation tomanagementmanagement
Participating inParticipating in
conferences/meetingsconferences/meetings
Training andTraining and
recruitingrecruiting
EntertainingEntertaining
customerscustomers
TravelingTraveling Working withWorking with
distributorsdistributors
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MissionarySellingMissionarySelling
TechnicalSellingTechnicalSelling
NewNew--businessSellingbusinessSelling
RetailSellingRetailSelling
Build sales volumeBuild sales volume
by providingby providing
customers withcustomers withpromotionalpromotional
assistance in theassistance in the
form of advertisingform of advertising
and sales promotionand sales promotion
TradeSellingTradeSelling
Specific Types of Sales JobsSpecific Types of Sales Jobs
TelemarketingTelemarketing
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TradeSellingTradeSelling
TechnicalSellingTechnicalSelling
NewNew--businessSellingbusinessSelling
RetailSellingRetailSelling
Where tradeWhere trade
salespeople sell to,salespeople sell to,
missionarymissionarysalespeople sell forsalespeople sell for
its direct consumersits direct consumers
MissionarySellingMissionarySelling
Specific Types of Sales JobsSpecific Types of Sales Jobs
TelemarketingTelemarketing
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MissionarySellingMissionarySelling
TradeSellingTradeSelling
NewNew--businessSellingbusinessSelling
RetailSellingRetailSelling
Often technicallyOften technically
trained intrained in
chemistry,chemistry,engineering, andengineering, and
computer sciencecomputer science
Support the regularSupport the regularsales force or helpsales force or help
sell the productsell the product
TechnicalSellingTechnicalSelling
Specific Types of Sales JobsSpecific Types of Sales Jobs
TelemarketingTelemarketing
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Used in industriesUsed in industries
that have one timethat have one time
or very infrequentor very infrequentsales, thus,sales, thus,
salespeople mustsalespeople must
constantly developconstantly develop
new leads tonew leads to
generate salesgenerate sales
Specific Types of Sales JobsSpecific Types of Sales Jobs
MissionarySellingMissionarySelling
TradeSellingTradeSelling
TechnicalSellingTechnicalSelling
RetailSellingRetailSelling
NewNew--businessSellingbusinessSelling
TelemarketingTelemarketing
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Wide range of skillsWide range of skills
requiredrequired
Can requireCan requireknowledge,knowledge,
communicationcommunication
skills, and ability toskills, and ability towork with diversework with diverse
customerscustomers
Specific Types of Sales JobsSpecific Types of Sales Jobs
MissionarySellingMissionarySelling
TradeSellingTradeSelling
TechnicalSellingTechnicalSelling
NewNew--businessSellingbusinessSelling
RetailSellingRetailSelling
TelemarketingTelemarketing
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Telemarketing usesTelemarketing uses
outbound calls to:outbound calls to:
Open new accountsOpen new accounts Qualify advertisingQualify advertising
leadsleads
Service existingService existing
businessbusiness
Specific Types of Sales JobsSpecific Types of Sales Jobs
MissionarySellingMissionarySelling
TradeSellingTradeSelling
TechnicalSellingTechnicalSelling
NewNew--businessSellingbusinessSelling
TelemarketingTelemarketing
RetailSellingRetailSelling
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AptitudeAptitude
Skills LevelSkills Level
Motivational LevelMotivational Level
Role PerceptionsRole Perceptions
PersonalPersonal
CharacteristicsCharacteristics
AdaptabilityAdaptability
Salesperson PerformanceSalesperson Performance