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Transcript of 4604437
Copyright 1999 Prentice Hall
16-116-1
Chapter 16
Chapter 16
Personal Selling and Sales Management
PRINCIPLES OF MARKETINGEighth Edition
Philip Kotler and Gary Armstrong
Copyright 1999 Prentice Hall
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The Nature of Personal SellingThe Nature of Personal Selling
• Involves an individual acting for a company by Involves an individual acting for a company by performing one or more of the following activities:performing one or more of the following activities:– Prospecting,
– Communicating,
– Servicing,
– Information Gathering.
• The term salesperson covers a wide spectrum of The term salesperson covers a wide spectrum of positions from:positions from:– Order Taking (department store salesperson)
– Order Getting (someone engaged in creative selling)
– Missionary Selling (building goodwill or educating buyers)
Copyright 1999 Prentice Hall
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The Role of the Sales ForceThe Role of the Sales Force
• Personal Selling is effective because Personal Selling is effective because salespeople can: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,
– build long-term personal relationships with key decision makers.
• The Sales Force serves as a critical link between The Sales Force serves as a critical link between a company and its customers since they:a company and its customers since they:– represent the company to customers, and
– represent customers to the company.
Copyright 1999 Prentice Hall
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Managing the Salesforce Managing the Salesforce
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
Copyright 1999 Prentice Hall
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Designing Sales Force Strategy and Structure Designing Sales Force Strategy and Structure
Types of Sales Force StructureTypes of Sales Force Structure
ComplexCombination of Above Types of Sales Force Structures
ComplexCombination of Above Types of Sales Force Structures
TerritorialExclusive Territory toSell the Company’sFull Product Line
TerritorialExclusive Territory toSell the Company’sFull Product Line Product
Sales Force Sells AlongProduct Lines
ProductSales Force Sells Along
Product Lines CustomerSales Force Sells Along
Customer/ Industry Lines
CustomerSales Force Sells Along
Customer/ Industry Lines
Copyright 1999 Prentice Hall
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How Will Sales and Sales SupportPeople Work Together?
Team Selling
How Will Sales and Sales SupportPeople Work Together?
Team Selling
Designing Sales Force Strategy and StructureDesigning Sales Force Strategy and Structure
Sales Force SizeSales Force Size
Who Will Be Involved in the Selling Effort?
Outside Sales ForceInside Sales Force
Who Will Be Involved in the Selling Effort?
Outside Sales ForceInside Sales Force
Other Sales Force Strategy and Structure IssuesOther Sales Force Strategy and Structure Issues
Copyright 1999 Prentice Hall
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Some Characteristicsof Salespeople
Some Characteristicsof Salespeople
Recruiting ProceduresRecruiting Procedures
Salesperson Selection Process
Salesperson Selection Process
•Enthusiasm and Self-Confidence•Persistence•Initiative•Job Commitment
•Enthusiasm and Self-Confidence•Persistence•Initiative•Job Commitment
Recruiting and Selecting SalespeopleRecruiting and Selecting Salespeople
•Current Salespeople•Employment Agencies•Classified Ads•College Campuses
•Current Salespeople•Employment Agencies•Classified Ads•College Campuses
•Sales Aptitude•Analytical & Organizational Skills•Personality Traits•Other Characteristics
•Sales Aptitude•Analytical & Organizational Skills•Personality Traits•Other Characteristics
Copyright 1999 Prentice Hall
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Training SalespeopleTraining Salespeople
Help Salespeople Know & IdentifyWith the Company
Help Salespeople Know & IdentifyWith the Company
Learn How the Products WorkLearn How the Products Work
Learn About Competitors’and Customers’ Characteristics
Learn About Competitors’and Customers’ Characteristics
Learn How to MakeEffective Presentations
Learn How to MakeEffective Presentations
Understand Field Proceduresand Responsibilities
Understand Field Proceduresand Responsibilities
The Average Sales Training Program lasts for Four Months and Has the Following Goals:
Copyright 1999 Prentice Hall
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Compensating Salespeople Compensating Salespeople
Componentsof
Compensation
PAYCHECK
Sales Force Compensation Plans Can Both Motivate Salespeople and Direct Their Activities.
Benefits
Bonus
Salary
Commission
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Supervising SalespeopleSupervising Salespeople
Directing Salespeople
Motivating Salespeople
• Identify Customer Targets & Set Call Norms
• Develop Prospect Targets
• Use Sales Time Efficiently– Annual Call Schedule– Time-and-Duty Analysis– Sales Force Automation
• Organizational Climate
• Sales Quotas
• Positive Incentives
– Honors
– Awards
– Merchandise/ Cash
– Trips
Copyright 1999 Prentice Hall
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How Salespeople Spend Their TimeHow Salespeople Spend Their Time
Administrative Tasks17%
TelephoneSelling
21%
Waiting/ Traveling
20%
Service Calls12%
Face-to-Face Selling
30%
Companies Look For Ways to Increase the Amount of Time Salespeople Spend Selling.
Copyright 1999 Prentice Hall
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Evaluating SalespeopleEvaluating Salespeople
AnnualTerritory
Marketing Plan
AnnualTerritory
Marketing Plan
CallReports
CallReports
ExpenseReports
ExpenseReports
WorkPlan
WorkPlan
SalesReportSales
Report
Sourcesof
Information
Sourcesof
Information
Copyright 1999 Prentice Hall
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Step 1. Prospecting and Qualifying Step 1. Prospecting and Qualifying
Step 2. Preapproach Step 2. Preapproach
Step 3. Approach Step 3. Approach
Step 4. Presentation/ Demonstration Step 4. Presentation/ Demonstration
Identifying and Screening For Qualified Potential Customers.
Learning As Much As Possible About a Prospective Customer Before Making a Sales Call.
Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start.
Telling the Product “Story” to the Buyer, and Showing the Product Benefits.
Steps in the Selling ProcessSteps in the Selling Process
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Step 5. Handling Objections Step 5. Handling Objections
Step 6. Closing Step 6. Closing
Step 7. Follow-Up Step 7. Follow-Up
Seeking Out, Clarifying, and Overcoming Customer Objections to Buying.
Asking the Customer for the Order.
Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business.
Steps in the Selling ProcessSteps in the Selling Process
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Relationship MarketingRelationship Marketing
• Process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.
• Based on the idea that important accounts need focused and continuous attention.