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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
PERSONAL SELLING AND SALES
MANAGEMENT2020CHAPTER
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• Recognize different types of personal selling.
• Describe the stages in the personal selling process.
AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:
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• 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:
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• 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:
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Medtronic SalespeopleVisiting hospital operating rooms to discover
new solutions to customer problems
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• 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
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Why would you use personal selling?
• Travel
• Aircraft www.airbus.com
• Real-estate
• Buyer Agent?
• Sellers Agent?
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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.
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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.
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• Order Taking
• Order Getting
THE MANY FORMS OF PERSONAL SELLING
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Frito-Lay SalespersonTaking inventory for a straight rebuy decision
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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
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• Customer Sales Support Personnel Missionary salespeople Sales engineer Team selling
THE MANY FORMS OF PERSONAL SELLING
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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.
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Concept Check
2. What is team selling?
A: The practice of using an entire team of professionals in selling to an servicing major customers.
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• Prospecting
• Preapproach
• Approach
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
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FIGURE 20-3 FIGURE 20-3 Stages and Stages and objectives of the objectives of the personal selling personal selling processprocess
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Trade Show SalesPopular source for leads and prospects
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Dell and Cultural differences in China
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• Presentation• Stimulus-Response Format
• Formula Selling Format
THE PERSONAL SELLING PROCESS: BUILDING
RELATIONSHIPS
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• Presentation (cont)• Need-Satisfaction Presentation
Adaptive selling Consultative selling
• Handling Objections
• Close
• Follow-Up
THE PERSONAL SELLING PROCESS: BUILDING
RELATIONSHIPS
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Concept Check
1. What are the six stages in the personal selling process?
A: Prospecting, preapproach, approach, presentation, close, follow-up
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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
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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.
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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.
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FIGURE 20-4 FIGURE 20-4 The sales management processThe sales management process
THE SALES MANAGEMENT PROCESS
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• Sales Plan Formulation• Setting Objectives
• Organizing the Salesforce
THE SALES MANAGEMENT PROCESS
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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
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FIGURE 20-6FIGURE 20-6Organizing the Organizing the Sales Force by Sales Force by customer, product, customer, product,
and geographyand geography
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FIGURE 20-6 FIGURE 20-6 Organizing the sales force by customerOrganizing the sales force by customer
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FIGURE 20-6 FIGURE 20-6 Organizing the sales force by productOrganizing the sales force by product
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FIGURE 20-6 FIGURE 20-6 Organizing the sales force by geographyOrganizing the sales force by geography
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• Organizing the Salesforce (cont) Major account management Workload method
• Developing Account Management Policies
THE SALES MANAGEMENT PROCESS
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FIGURE 20-7 FIGURE 20-7 Account management policy gridAccount management policy grid
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• Sales Plan Implementation• Salesforce Recruitment and Selection
Emotional intelligence
THE SALES MANAGEMENT PROCESS
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FIGURE 20-8 FIGURE 20-8 U.S. salesforce composition and U.S. salesforce composition and changechange
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• Sales Plan Implementation (cont)• Salesforce Training
• Salesforce Motivation and Compensation
THE SALES MANAGEMENT PROCESS
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Mary Kay Cosmetics Top SalespersonRecognition at its annual sales meeting
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• Salesforce Evaluation and Control• Quantitative Assessments
• Behavioral Evaluation
• Salesforce Automation and Customer Relationship Management• Salesforce Computerization
• Salesforce Communication
THE SALES MANAGEMENT PROCESS
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Compaq SalespersonWorking at home due to computerized
communications techniques
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Toshiba America Medical SystemsComputer technology as a sales and training device
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Toshiba America Medical SystemsComputer technology as a sales and training device
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Concept Check
1. What are the three types of selling objectives?
A: Selling objectives can be output-related, input-related, or behaviorally-related.
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Concept Check
2. What three factors are used to structure sales organizations?
A: Typically, sales organizational structures are based on geography, customer, or product.
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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.
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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
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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.