slide # 1 prepared by, and copyright by, prof. tim richardson

Slide # 1

Prepared by, and Copyright by, Prof. Tim Richardson

Slide # 2


Atlantic “you sell the relationship, not the product”

- things they do to keep the customer satisfied

- they also offer a design team to help with logos

- videos to show how to pack stuff in the bags properly

- help with ordering proper amounts, to save money ( a “place” solution)

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Personal Selling Effectiveness

• Face2face gets more attention than Face2face gets more attention than an advertisement or displayan advertisement or display

• customers can ask questionscustomers can ask questions

• you can explain directly the FABsyou can explain directly the FABs

• FeaturesFeatures

• AdvantagesAdvantages

• BenefitsBenefits

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Factors Affecting the Importance of Personal Selling in the Promotional Mix

Personal Selling Is LikelyPersonal Selling Is Likely Advertising Is Likely to Advertising Is Likely toto Be More Important When:to Be More Important When: Be More Important Be More Important

When:When:

Consumer isConsumer is geographically concentrated,geographically concentrated, geographically dispersed,geographically dispersed,relatively small numbersrelatively small numbers relatively large numbersrelatively large numbers

Product isProduct is expensive, technicallyexpensive, technically inexpensive,inexpensive,complex, custom-made,complex, custom-made, simple to understand,simple to understand,special handling required,special handling required, standardized,standardized,trade-ins frequentlytrade-ins frequently no special handling,no special handling,involvedinvolved no trade-insno trade-ins

Price isPrice is relatively highrelatively high relatively lowrelatively low

Channels areChannels are relatively shortrelatively short relatively longrelatively long

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As a part of the Promotion Mix

• Personal Selling is expensive to do Personal Selling is expensive to do because ...because ...

• it means hiring people to do the selling, it means hiring people to do the selling, and salaries are expensiveand salaries are expensive

• the expenses of people selling, travel, the expenses of people selling, travel, business expenses etc - also costs a lotbusiness expenses etc - also costs a lot

• personal selling can be the largest personal selling can be the largest operating expense of a companyoperating expense of a company

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Helping Customers

• Good Salespeople don’t just sell, Good Salespeople don’t just sell, they try to help the customer solve they try to help the customer solve their problems - which would include their problems - which would include buying your productbuying your product

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Ambassador

• Sometimes, the salesperson is the Sometimes, the salesperson is the only person customers see from only person customers see from your companyyour company

• you are an ambassador cause you are an ambassador cause everything thing they know about everything thing they know about your company comes from meeting your company comes from meeting youyou

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Diplomat

• Also, you must represent your customers Also, you must represent your customers when you get back to head office and stick when you get back to head office and stick up for them with your managementup for them with your management

• sometimes this means telling your sometimes this means telling your business colleagues they have the wrong business colleagues they have the wrong idea, and that you know the right idea idea, and that you know the right idea cause your customers told you directlycause your customers told you directly

• you must be very “diplomatic” when you you must be very “diplomatic” when you do this or you willdo this or you will

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Intelligence Agent

• Sometimes - just because of what you do - Sometimes - just because of what you do - you hear information about what the you hear information about what the competition is doingcompetition is doing

• you bring that information back to head you bring that information back to head office and pass it to the market research office and pass it to the market research people and the people in “production” people and the people in “production” who are designing your new productswho are designing your new products

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Careers

• Sales Jobs as entry-level positionsSales Jobs as entry-level positions

• You are “line personnel” and BRING You are “line personnel” and BRING IN THE MONEY so your job is IN THE MONEY so your job is importantimportant

• success can lead to promotion, success can lead to promotion, faster than other jobsfaster than other jobs

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3 Basic Sales Tasks

• Order GettingOrder Getting

• Order TakingOrder Taking

• SupportingSupporting

3 Sales Tasks

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Order Getters

• Concerned with establishing Concerned with establishing relationshipsrelationships

• locate new prospectslocate new prospects

• open new accountsopen new accounts

• find new opportunitiesfind new opportunities

• help establish and build new help establish and build new channelschannels

3 Sales Tasks

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Order Getters

• You need to be actively interested in You need to be actively interested in helping solve customers problemshelping solve customers problems

• requires you understand a lot about requires you understand a lot about the customer’s businessthe customer’s business

• salespeople who are Order Getters salespeople who are Order Getters sometimes have personal experience sometimes have personal experience in the industry of the customerin the industry of the customer

3 Sales Tasks

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Order Getters

• On a more sophisticated level, Order Getters On a more sophisticated level, Order Getters are the “rainmakers” who go out and are the “rainmakers” who go out and literally get the business by networking and literally get the business by networking and making calls and visits to convince a making calls and visits to convince a customer to buy the product or servicecustomer to buy the product or service

• this networking and calling can take a lot of this networking and calling can take a lot of time for some types of products and you time for some types of products and you may have to contact many people before may have to contact many people before you get a customeryou get a customer

3 Sales Tasks

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Order Takers

• ““duh ya wan fries wi dat”duh ya wan fries wi dat”

• no “selling” or “convincing” no “selling” or “convincing” involved, just have contact with the involved, just have contact with the customer, and receive the customer, and receive the information about what they want to information about what they want to purchasepurchase

3 Sales Tasks

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Order Takers

• ““Sell to regular or established Sell to regular or established customers”customers”

• routine completion of salesroutine completion of sales

• sometimes a negative term for sometimes a negative term for salespeople who don’t work hard on salespeople who don’t work hard on developing new businessdeveloping new business

• but it is important to close the salebut it is important to close the sale

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3 Sales Tasks

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Order Takers

• The Order Getter establishes the The Order Getter establishes the relationship, and the Order Taker relationship, and the Order Taker follows up and clinches the sale by follows up and clinches the sale by taking the money and discussing the taking the money and discussing the details of shipping and deliverydetails of shipping and delivery

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3 Sales Tasks

Slide # 18


Order Takers

• Since Order Taking at Retail level is Since Order Taking at Retail level is declining in service quality (people w declining in service quality (people w too much attitude and low pay) many too much attitude and low pay) many companies have switched to self-companies have switched to self-serve situationsserve situations

• This saves labour costs - but it can This saves labour costs - but it can be inconvenient for the customerbe inconvenient for the customer

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3 Sales Tasks

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Supporting

• 2 types of supporting sales people2 types of supporting sales people

• Missionary SalespeopleMissionary Salespeople

• Technical SpecialistsTechnical Specialists

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3 Sales Tasks

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Supporting

• Missionary SalespeopleMissionary Salespeople• also called also called merchandisersmerchandisers and and

detailersdetailers• they work for the producersthey work for the producers• help the middlemen train their help the middlemen train their

salespeoplesalespeople• help the people in the store with sales help the people in the store with sales

promotion detailspromotion detailsPage 490

3 Sales Tasks

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Supporting

• Missionary SalespeopleMissionary Salespeoplemerchandisersmerchandisers and and detailersdetailers

• “… “… often used as a training ground often used as a training ground for new salespeople … recent college for new salespeople … recent college grads are often recruited for these grads are often recruited for these positions…”positions…”

• So…on your resume, say you are specifically So…on your resume, say you are specifically interested in “Supporting Sales positions such as interested in “Supporting Sales positions such as merchandising and detailing”merchandising and detailing”

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3 Sales Tasks

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Supporting

• 2 types of supporting sales people2 types of supporting sales peopleTechnical SpecialistsTechnical Specialists

• Skilled in showing the technical Skilled in showing the technical aspects of the productaspects of the product

• Many of these people are Many of these people are engineering and computer technical engineering and computer technical people with some interest in salespeople with some interest in sales

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3 Sales Tasks

Slide # 23


Team Selling

• Sometimes used for a business that Sometimes used for a business that is complex, or involves many is complex, or involves many contacts at the clientcontacts at the client

• eg. Textbook salespeople have eg. Textbook salespeople have several people work one college several people work one college because there are so many because there are so many professors to keep track ofprofessors to keep track of

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Major Account Sales Force

• Some companies in big business Some companies in big business have big clientshave big clients

• a special team is created to maintain a special team is created to maintain an ongoing relationship with this an ongoing relationship with this customer to see they get everything customer to see they get everything they needthey need

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Slide # 25


Telemarketing

• Using the phone to call customersUsing the phone to call customers

• commonly means young people commonly means young people calling random numbers to sell some calling random numbers to sell some simple product or service to simple product or service to householdshouseholds

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Telemarketing

• although some people don’t like being although some people don’t like being called, and some people would never called, and some people would never do this type of work, it is becoming do this type of work, it is becoming more and more popular as a sales more and more popular as a sales strategystrategy

• it is also costs effective cause you have it is also costs effective cause you have competition among phone companies competition among phone companies driving down the price of long distance driving down the price of long distance callingcalling

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Sales Territory

• Geographic area, or sector area Geographic area, or sector area within which sales people from a within which sales people from a company are dividedcompany are divided

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Sales Territory

• Territory can be divided according toTerritory can be divided according to

• Geographic areaGeographic area

• Customer TypeCustomer Type

• Type of ProductType of Product

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Sales Territory

• Geographic areaGeographic area

• Toronto, Mississauga, ScarboroughToronto, Mississauga, Scarborough

• Ontario - QuebecOntario - Quebec

• North America, CaribbeanNorth America, Caribbean

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Sales Territory

• You can also divide based on type of You can also divide based on type of customer eg. Hyatt Hotelcustomer eg. Hyatt Hotelpage 494page 494

• or civilian customer, government or civilian customer, government customercustomer

• customers that buy in person, those that customers that buy in person, those that mailordermailorder

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Sales Territory

• You can also divide based on the productYou can also divide based on the product• eg. Windows, Maceg. Windows, Mac• eg. Rubber, steeleg. Rubber, steel• eg. Alcoholic, non-alcoholiceg. Alcoholic, non-alcoholic• eg. Mens clothes, Women’s clotheseg. Mens clothes, Women’s clothes

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1. Prospecting and qualifying1. Prospecting and qualifying

2. Approach2. Approach

3. Presentation3. Presentation

4. Demonstration4. Demonstration

5. Handling Objections5. Handling Objections

6. Closing 6. Closing

7. Follow-up7. Follow-up

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ProspectingProspectingIdentifying potential customers.Identifying potential customers.

QualifyingQualifyingDetermining that the prospect is really a Determining that the prospect is really a potential customer.potential customer.

Prospecting and Qualifying

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The initial contact between the salesperson and the prospective customer.

Approach

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The act of giving the sales message to a prospective customer.

Presentation

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ClosingThe act of asking the prospect for an order.

Follow-upThe postsales activities that often determine whether a person will become a repeat customer.

Closing and Follow-up

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Securing, maintaining, motivating, supervising, evaluating, and controlling the field sales force.

Sales Management

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1. Recruitment and selection

2. Training

3. Organization

4. Supervision

5. Motivation

6. Compensation

7. Evaluation and Control

Sales Management – Seven Basic Managerial Functions

slide # 1 prepared by, and copyright by, prof. tim richardson

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