Business Marketing Business Marketing Communications: Communications: Personal SellingPersonal Selling

Chapter 17Chapter 17

Personal SellingPersonal Selling

Why is it so important in B2B?Why is it so important in B2B?• Costs per sales callCosts per sales call

SalespeopleSalespeople• What do they doWhat do they do

For their company?For their company? For buyers?For buyers?

Personal SellingPersonal Selling

Relationship MarketingRelationship Marketing• Selling CenterSelling Center

““initiate and maintain relationships with industrial initiate and maintain relationships with industrial customers”customers”

ObjectivesObjectives

• Buying CenterBuying Center ““participate in the purchasing decision and share participate in the purchasing decision and share

goals and risks of that decision.”goals and risks of that decision.” ObjectivesObjectives

Relationship qualityRelationship quality• Two dimensionsTwo dimensions

Managing the Sales ForceManaging the Sales Force What is Sales Management?What is Sales Management?

• Role of strategy and forecastsRole of strategy and forecasts Organizing the EffortOrganizing the Effort

• Depends on:Depends on:• TypesTypes

Geographical organizationGeographical organization• AdvantagesAdvantages• DisadvantagesDisadvantages

Product organizationProduct organization• AdvantagesAdvantages• DisadvantagesDisadvantages

Market-centered organizationMarket-centered organization• AdvantagesAdvantages• DisadvantagesDisadvantages

Managing Key AccountsManaging Key Accounts 80/20 rule80/20 rule What is a key account?What is a key account?

• Purchases a significant volume as a percentage of salesPurchases a significant volume as a percentage of sales• Involves several organizational members in the processInvolves several organizational members in the process• Buys for an organization with geographically dispersed unitsBuys for an organization with geographically dispersed units• Expects a carefully coordinated response and specialized servicesExpects a carefully coordinated response and specialized services

Differences between key accounts and regular accounts- See next Differences between key accounts and regular accounts- See next slideslide

Selecting Key AccountsSelecting Key Accounts• Look at profit potential and degree to which customer values support Look at profit potential and degree to which customer values support

servicesservices• Look at Phase 1 companies with unique support requirements that can Look at Phase 1 companies with unique support requirements that can

generate $$$generate $$$• Consider degree to which transaction complements seller’s businessConsider degree to which transaction complements seller’s business

Isolating the Account Isolating the Account Management ProcessManagement Process

What do account managers do?What do account managers do?

What makes them successful?What makes them successful?• Building internal relationshipsBuilding internal relationships• Forging relationships with customer Forging relationships with customer

organizationorganization• Aligning and crafting Aligning and crafting • Enhanced internal reputationEnhanced internal reputation

Sales AdministrationSales Administration

Recruiting and SelectingRecruiting and Selecting• Trade-offsTrade-offs

Experience v. inexperienceExperience v. inexperience Quantity v. qualityQuantity v. quality

• RecruitingRecruiting What to demonstrate?What to demonstrate? Advantages of good recruiting effortsAdvantages of good recruiting efforts

TrainingTraining• What to teach peopleWhat to teach people• Increasing focus on global skillsIncreasing focus on global skills• Why is training so important?Why is training so important?

Sales AdministrationSales Administration Supervision and MotivationSupervision and Motivation

• MotivationMotivation ““amount of effort salesperson desires to expend on amount of effort salesperson desires to expend on

each of the activities or tasks associated with his of each of the activities or tasks associated with his of her job.”her job.”

Model on next slideModel on next slide Three factorsThree factors Two types of rewardsTwo types of rewards

• Intrinsically mediated rewards Intrinsically mediated rewards • Extrinsically mediated rewardsExtrinsically mediated rewards

• Job performanceJob performance MotivationMotivation AptitudeAptitude Role perceptionRole perception

Sales AdministrationSales Administration

Evaluation and ControlEvaluation and Control• ““Monitor and control salesforce to see if Monitor and control salesforce to see if

objectives are being met.”objectives are being met.”• Performance measuresPerformance measures

Behavior-basedBehavior-based• SubjectiveSubjective• CharacteristicsCharacteristics

Outcome-basedOutcome-based• ObjectiveObjective• CharacteristicsCharacteristics

• Setting performance standardsSetting performance standards

Sales AdministrationSales Administration

• What makes Job Performance decline?What makes Job Performance decline?• Organizational Climate and Job SatisfactionOrganizational Climate and Job Satisfaction

What can make job performance increase?What can make job performance increase? Clearly state objectives and performance Clearly state objectives and performance

requirementsrequirements Manager watching overManager watching over Manager giving assistanceManager giving assistance Perceptions of influencing company policyPerceptions of influencing company policy Satisfied employeesSatisfied employees positive salespeople positive salespeople ?? ??

• TurnoverTurnover Less likely to leave if job satisfaction is highLess likely to leave if job satisfaction is high

Models for Industrial Sales ForceModels for Industrial Sales Force

How to Deploy?How to Deploy?• Territory Sales ResponseTerritory Sales Response

PotentialPotential ConcentrationConcentration DispersedDispersed Territory workloadTerritory workload

• Sales Opportunity GridSales Opportunity Grid• InternetInternet

Self-serviceSelf-service SeminarsSeminars