CH17
description
Transcript of CH17
Personal Selling and Sales Management
Chapter 17
Introduction to Sales Personnel
Importance of personal sales:Direct link to the customerMost customers see the sales person as the companyDesigning the sales force internationally is one of the most important functions of the marketing department
“A salesman is someone who sells goods that won’t come back to customers who will.” (Anonymous)
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
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
Factors Affecting the Importance of Personal Selling in the Promotional Mix
Variable Conditions That Favor Personal Selling
Conditions That Favor Advertising
Consumer
Product
Geographically concentrated
Relatively low numbers
Expensive
Technically complex
Custom made
Special handling requirementsTransactions frequently involve trade-ins
Geographically dispersed
Relatively high numbers
Inexpensive
Simple to understand
StandardizedNo special handling requirementsTransactions seldom involve trade-ins
Price Relatively high Relatively low
Channels Relatively short Relatively long
The Evolution of Personal SellingToday’s salesperson is usually a highly-trained professionalSales professionals take a customer-oriented approach employing truthful, nonmanipulative tactics in order to satisfy the long-term needs of both the customer and the selling firmToday’s professional salespeople are problem solvers who seek to develop long-term relationships with customers
Four Sales Channels
Over-the-counter selling: personal selling conducted in retail and some wholesale locations in which customers come to the seller’ place of business
Field selling: sales presentations made at prospective customers’ homes or businesses on a face-to-face basis
Four Sales ChannelsTelemarketing: promotional presentation involving the use of the telephone on an outbound basis by salespeople or on an inbound basis by customers who initiate calls to obtain information and place orders
Inside selling: performing the functions of field selling but avoiding travel-related expenses by relying on phone, mail, and electronic commerce to provide sales and product service for customers on a continuing basis
I. Designing & Recruiting Sales Personnel3 Ways to Design Sales Force
1. Expatriates2. Local Nationals3. Third Country Nationals
Advantages/Disadvantages of all 3:1. Expatriates (declining)• Advantages
– Used most when products are highly technical or requires a lot of information in order to sell
– Familiar with headquarters policies, procedures– Opinions/Ideas are valued more by home office
I. Designing & Recruiting Sales Personnel
Disadvantages– High cost – Cultural and legal barriers– Difficult to recruit – many highly skilled will
not re-locate overseas
Other type of Expatriates– Virtual Expatriates
– Created by the internet and other advanced types of communications, where they manage operations in other countries, but do not move to that country.
I. Designing & Recruiting Sales Personnel2. Local Nationals
Advantages– Most knowledgeable about culture, legal
environments, business structure, distribution networks
Disadvantages– Home office does not see as the “experts” in the field
– Seen as not being familiar with home office procedures, policies
– Not the experts on the products– Difficult to recruit most skilled and knowledgeable
– Recruiting the best may mean taking away from another company or competitor – this goes against some cultural believes where “loyalty” is important
– Crossing Borders 17.3 pg. 521 -“Avon calling – or not?”
I. Designing & Recruiting Sales Personnel3. Third-Country Nationals
Advantages• If recruited within same area most are familiar
with culture, language, how to conduct business
Disadvantages• Host country does not see individual as one of
their own • Many of the same disadvantages to a smaller
scale with the expatriate.
Selecting Sales and Marketing Personnel
• To select personnel for international marketing positions effectively, management must choose individuals who have the following traits:
• To select personnel for international marketing positions effectively, management must choose individuals who have the following traits:
1. Maturity1. Maturity
2. Emotional Stability2. Emotional Stability
3. Breadth of Knowledge3. Breadth of Knowledge
4. Flexibility4. Flexibility
5. Cultural Empathy5. Cultural Empathy
6. Energetic and6. Energetic and
7. Enjoy Travel 7. Enjoy Travel
III. Training Sales PersonnelTypes and method of training differs depending upon type of sales structure
1. Expatriates• Focus is on culture, customs, special foreign issues (not on
products, selling methods, home office policies..)
2. Local Nationals/Third-County Nationals• Focus on product knowledge• More continual training• Methods of training need to be adapted to recipients’ way
of learning
Internet is facilitating faster and more efficient learning for all types of sales structures
IV. Motivating Sales PersonnelWhat motivates people varies from culture to culture
Though some similarities exist in certain cultures, many cultures vary in a number of areas (individual bonuses vs. group bonuses; compensation vs. personal growth, etc)
Designing Compensation SystemsExpatriates
• Things to consider– Countries with high taxes, prefer larger expense accounts, fringe
benefits (things that are non-taxable)– Where the company is multi-national, sales personnel will
compare compensation plans from home country to re-assigned country
Compensating Salespeople Compensating Salespeople
Componentsof
Compensation
PAYCHECK
Sales Force Compensation Plans Can Both Motivate Salespeople and Direct Their Activities.
Benefits
Bonus
Salary
Commission
IV. Motivating Sales Personnel2. Global Sales Force• Allows for most flexibility in creating
compensation plans• See “do’s and don’ts of global compensation”
– pg. 532
Preparing U.S. Personnel for Foreign Assignments
Obstacles to overcome1. Reluctance to accept foreign assignment due to:
• Concerns for career and family (most common)– Career fears relate to “out of sight, out of mind”– Family is uprooted in a very different environment
2. Reducing the rate of early returns• Unsuccessful family adjustment is the single most important
reason for early returns.
3. Ensuring successful return home • Need to have a personal career plan designed to
successfully transition the individual and family back to their home country.
Important Points in Recruiting Sales Personnel & Managers
Important characteristics/skills to look for when recruiting:
Cross-cultural skills• More important in most cases than
technical skills
Language skills• Many believe that the more fluent in
languages, the more culturally sensitive– Crossing Borders 17.6 pg. 525
Evaluating SalespeopleEvaluating Salespeople
AnnualTerritory
Marketing Plan
AnnualTerritory
Marketing Plan
CallReports
CallReports
ExpenseReports
ExpenseReports
WorkPlan
WorkPlan
SalesReportSales
Report
Sourcesof
Information
Sourcesof
Information
Relationship 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.