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Chapter 16

Personal Selling and Sales Management

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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)

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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.

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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.

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The Role of the Sales Force

Sales Force Serves as a Critical Link

Between a Company and its Customers Since They:

Represent Customers to

the Company to Produce Customer

Satisfaction

Represent the Company to

Customers to Produce Company Profit

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Designing Salesforce Strategy and StructureDesigning Salesforce Strategy and Structure

Recruiting and Selecting SalespeopleRecruiting and Selecting Salespeople

Training SalespeopleTraining Salespeople

Compensating SalespeopleCompensating Salespeople

Supervising SalespeopleSupervising Salespeople

Evaluating SalespeopleEvaluating Salespeople

Major Steps in Sales Force Management (Fig. 16.1)

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Territorial Exclusive Territory to Sell the Company’s Full Product Line

ProductSales Force Sells Only a Portion of The Company’s Products or Lines

CustomerSales Force Sells Only to Certain

Customers or Industries

Designing Sales Force Strategy and Structure

Complex Forms Are a Combination of

Any Types of Sales Force Structures

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Sales Force SizeSalespeople 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.

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Inside SalesForce

Inside SalesForce

Outside Sales Force

Outside Sales Force

Travel to Call on Customers

Travel to Call on Customers

Sells to MajorAccounts

Sells to MajorAccounts

Finds MajorNew

Prospects

Finds MajorNew

Prospects

Conduct Business From Their Offices Via Phone or Buyer VisitsConduct Business From Their

Offices Via Phone or Buyer Visits

TechnicalSupportPeople

TechnicalSupportPeople

Tele-Marketing

OrInternet

Tele-Marketing

OrInternet

Other Sales Force Strategy and Structure Issues

SalesAssistants

SalesAssistants

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Team SellingMost 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.

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Some Traits of Good Salespeople

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College Students

Recommendations for Recruiting Salespeople

Classified Ads

Employment Agencies

Current Salespeople

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Selection Process Usually

Evaluates a Person’s

Other CharacteristicsOther Characteristics

Personality TraitsPersonality Traits

Sales AptitudeSales Aptitude

Analytical andOrganizational Skills

Analytical andOrganizational Skills

Selecting Salespeople

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Help Salespeople Know & IdentifyWith the Company

Learn About the Products

Learn About Competitors’and Customers’ Characteristics

Learn How to MakeEffective Presentations

The Average Sales Training Program lasts for Four Months and Has the Following Goals:

Training Salespeople

Understand Field Proceduresand Responsibilities

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Fixed Amount

Usually a Salary

Fixed Amount

Usually a Salary

VariableAmount

UsuallyCommissionsOr Bonuses

VariableAmount

UsuallyCommissionsOr Bonuses

To Attract Salespeople, a Company Must Have anAttractive Plan Made Up of Several Elements

To Attract Salespeople, a Company Must Have anAttractive Plan Made Up of Several Elements

Expense Allowance

For Job Related

Expenses

Expense Allowance

For Job Related

Expenses

Compensating Salespeople

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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

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

Motivating Salespeople

• Organizational Climate

• Sales Quotas

• Positive Incentives Sales Meetings Sales Contests Honors and Trips Merchandise/ Cash

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Administrative Tasks16%

TelephoneSelling

25.1%

Waiting/ Traveling

17.4%

Service Calls12.7%

Face-to-Face Selling

28.8%

Companies Look For Ways to Increase the Amount of Time Salespeople Spend Selling.

How Salespeople Spend Their Time (Fig. 16.2)

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Evaluating SalespeopleManagement 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.

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Discussion ConnectionsAs 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.

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Major Steps in Effective Selling (Fig. 16.3)

Prospecting and Qualifying

Preapproach

Approach

Presentation and Demonstration

Handling objections

Closing

Follow-up

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ProspectingProspecting Salesperson Identifies Qualified Potential Customers.

Salesperson Identifies Qualified Potential Customers.

PreapproachPreapproachSalesperson Learns as Much as Possible About a Prospective

Customer Before Making a Sales Call.

Salesperson Learns as Much as Possible About a Prospective

Customer Before Making a Sales Call.

QualifyingQualifyingProcess of Identifying Good

Prospects and Screening Out Poor Ones.

Process of Identifying Good Prospects and Screening Out Poor

Ones.

Steps in the Selling Process

ApproachApproachSalesperson Meets the Buyer and

Gets the Relationship Off to a Good Start.

Salesperson Meets the Buyer and Gets the Relationship Off to a Good

Start.

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PresentationPresentationSalesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction Approach.

Salesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction Approach.

ClosingClosing Salesperson Asks the Customer for an Order.

Salesperson Asks the Customer for an Order.

Handling ObjectionsHandling

ObjectionsSalesperson Seeks Out, Clarifies,

and Overcomes Customer Objections to Buying.

Salesperson Seeks Out, Clarifies, and Overcomes Customer

Objections to Buying.

Steps in the Selling Process

Follow-UpFollow-UpOccurs After the Sale and Ensures Customer Satisfaction and Repeat

Business.

Occurs After the Sale and Ensures Customer Satisfaction and Repeat

Business.

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What is Relationship Marketing?

Relationship Marketing is the Process of Creating,

Maintaining, and Enhancing Strong, Value-Laden

Relationships With Customers and Other Stakeholders.

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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.