9fms pp19

Chapter 19Management of Personal Selling

Copyright © 2001 by McGraw-Hill Ryerson Limited

Sommers BarnesNinth Canadian Edition

Presentation by

Karen A. BlotnickyMount Saint Vincent University, Halifax, NS

Copyright © 2001 McGraw-Hill Ryerson Limited 19 - 2

Chapter Goals

To gain an understanding of:•The role that personal selling

plays in the economy and the marketing program

•The variety of jobs in selling•The changing patterns in

personal selling•Major tasks in staffing and

operating a sales force


Personal Selling

• Personal (one-to-one/one-to-small group) communication of information designed to persuade someone to buy

• In many companies, personal selling is the largest single operating expense-- often 8 to 15% of sales.


When Personal Selling Works Best• The market is concentrated.• The product has a high unit value, is

technical in nature, and requires a demonstration.

• The product can be tailored to an individual customer’s need.

• The sale involves a trade-in.• The product is in the introductory stage

of the product life cycle.• The organization doesn’t have enough

money for adequate ad campaign


Strengths and Weaknesses of Personal Selling• Strengths:

• It can be adapted for individual customers.• It can be focused on prospective customers.• It results in the actual sale, while most other

forms of promotion are used in moving the customer closer to the sale.

• Weaknesses:• It is costly to develop and operate a sales

force.• It may be difficult to attract high-calibre

people.


Two Kinds of Personal Selling• The customers come to the

salespeople.• Mostly involves retail-store selling.• Most salespeople fall into this category.

• The salespeople go to the customers.• Usually represent producers or

wholesaling middlemen and sell to business users.

• Some outside selling is relying more on telemarketing.


CUSTOMERS COME TOTHE SALES PEOPLE

CUSTOMERS COME TOTHE SALES PEOPLE

SALES FORCE GOES TOTHE CUSTOMERS

SALES FORCE GOES TOTHE CUSTOMERS

Inside selling:across-the-counter;

phone-in orders

Inside selling:across-the-counter;

phone-in orders

Primarilyretail store selling

Primarilyretail store selling

In-personsales calls

In-personsales calls

Inside sales peoplecontact by mailor telemarketing

Inside sales peoplecontact by mailor telemarketing

Primarily producers and wholesalingmiddlemen selling to business users,but also some:

Producers Household consumers

Retailers Household consumers

Not-for-profit Business usersorganizations Household consumers

Primarily producers and wholesalingmiddlemen selling to business users,but also some:

Producers Household consumers

Retailers Household consumers

Not-for-profit Business usersorganizations Household consumers

Kinds of Selling


Jobs in Personal Selling• Professional salesperson engages in a total

selling job.• Manage their time, territories and customers.• Work closely with customers to support and

train.• Wide variety of sales jobs:

• Driver-salesperson• Inside order takers (e.g. retail clerk)• Outside order taker (business development) • Missionary sales (sales support)• Sales engineer• Consultative sales person


Range of Jobs and Tasks.

• Execute marketing strategies-- relationships.

• Represent their company.• Work with little or no supervision.

• Often travel to meet customers.


Changing Patterns in Sales

• the nature of the selling job is changing, reflecting changing market situations

• selling centresselling centres: many firms have organized sales teams

• systems sellingsystems selling: others now offer their customers a coordinated system and solutions for their problems

• global sales teamsglobal sales teams• relationship selling:relationship selling: there is

considerable emphasis today on the development of relationships with customer


Changing Patterns (concluded)• telemarketingtelemarketing - innovative use of

telecommunications equipment and systems

• Internet sellingInternet selling and business to business auctions

• sales force automation (SFA):sales force automation (SFA): technology has changed the way many firms sell, relying on telemarketing and data bases


The Personal Selling Process (Steps 1 and 2)1. Prospecting and Qualifying

• Identify potential customers.• Qualifying involves determining

whether prospects have the willingness, purchasing power, and authority to buy.

2. Preapproach to Individual Prospects• Salespeople must learn how buying

decisions are made.• Salespeople should also try to find out a

prospect’s personal habits and preferences.


The Personal Selling Process (Steps 3 to 5)3. Presenting the Sales Message: AIDA

• Attract the prospect’s Attention.• Hold the prospect’s Interest.• Build a Desire for the product.• Stimulate the Action of closing the sale.

4. Meet Objections and Close the Sale• Objections help clarify customer’s concerns.

5. Postsale Services• Deal with cognitive dissonance.• Ensure everything happened as it should

(delivery).


PROSPECTINGPROSPECTING PREAPPROACHPREAPPROACH PRESENTATIONPRESENTATION POSTSALESERVICES

POSTSALESERVICES

Identifying: Profiles Leads Records

Qualifying: Capability Willingness

Identifying: Profiles Leads Records

Qualifying: Capability Willingness

Information

Habits

Preferences

Information

Habits

Preferences

AIDA: Attention Interest Desire Action

Meet Objections

Close the Sale

AIDA: Attention Interest Desire Action

Meet Objections

Close the Sale

Reduce dissonance

Buildgoodwill

Reduce dissonance

Buildgoodwill

The Personal Selling Process


Sales Force Management

• Effective sales force management starts with a qualified sales manager.

• The tasks that take up the bulk of sales executives’ time include:• Recruitment and selection (Match

candidates with your needs)• Assimilation and Training• Motivation• Compensation• Supervision• Performance evaluation


Recruitmentand

Selection

Recruitmentand

Selection

AssimilationAssimilation

TrainingTraining

MotivationMotivation

Compen-sation

Compen-sation

PerformanceEvaluation

PerformanceEvaluation

SupervisionSupervision

The Sales ManagementProcess


Compensation

• Straight salary• Works well for new people, new territories.• Good where lengthy negotiations typical.

• Straight commission• Strong incentive, direct reward for effort.• Can be hard to control salespeople.

• A combination plan• Most firms do this.• Best of both worlds.


Performance Evaluation

• Both quantitative and qualitative factors should serve as bases for performance evaluation.• QuantitativeQuantitative bases are specific

and objective.• QualitativeQualitative factors are limited by

the subjective judgement of the evaluators.

• Both inputs (or effort) and outputs (or results) should be used.

9fms pp19

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