Sales Management 2

Overview of Personal Selling

Pretty Old Profession

• Plato (429-347 BCE) used the termsalesman in his writings.

• Traders preceded Plato by centuries if not millennia. (Phoenicia 1300 BCE)

• Sales was probably at the dawn of marketing.• Door-to-door sales during the Middle Ages.

(The historical era, not Dr. McDonald’s age.)

Sales Eras: Industrial Revolution to Professionalism

• Industrial Revolution: Specialization of labor and urbanization.

• Late 1800s: Traveling salesmen.• WW I, Depression, & WW II: Aggressive,

high-pressure selling to stimulate sales.• After WW II: Professional.

– Not manipulative– Respond to customer’s needs

Personal Selling

• MARKETING MIX – Product – Price – Place

– Promotion• PROMOTION

– Paid Advertising– Sales Promotions– Public Relations

– Personal Selling

Role of Personal Sales

• Society– Stimulate Economy– Diffuse Innovation

• Company– Revenue Producers (Rainmakers)– Market Research/Feedback (Boundary Spanning)

• Customers– Represent Customer to Company (Boundary Spanning)

What Customers Want in Sales

• Honesty• Knowledge of Economy• Knowledge of Customer’s Business• Guidance• Problem Solving• Professional Appearance• Pleasant Manner• One-stop Service

Ethics I

• Sources of ethics: family, friends, school, neighbors, church, co-workers.

• Individual ethics• Corporate ethics• Be able to

– Sleep at night– Look in the mirror in the morning– Introduce any client to your family

Ethics II

• Consequences of unethical sales practices• http://www.carinfo.com/repair2.html• http://www.thecomplaintstation.com/s/_sears/0000049f.htm• http://www.ezl.com/~riverbend/wilner.html• http://www.insurancejournal.com/html/ijweb/breakingnews/national/na0101/n

a0122011.htm

Ethics III

• Pressures– Eating– Nasty boss– Quotas/Contests

Ethics IV

• Puffery vs. Pinocchio

Ethics V

• Statement of company ethics (more than “Stay out of jail.”)

• http://www.president.uconn.edu/~wwwpre/ucethics.htm• http://www.halliburton.com/suppliers/ethics.jsp

Personal Selling Jobs

• Sales support• New business• Existing business• Inside sales (non-retail)• Direct-to-consumer sales• Combination

Sales Support

• Perform activities to stimulate sales (missionary sales). Disseminate info. Spread the word.

• Detailer: furnish information. (call on physicians who specify prescriptions, or architects who write specifications)

• Technical support: called in to help explain product’s advantages, installation, answer highly technical questions, assist in design (space planners, programmers), training.

New Business

• Responsible for adding new customers, or introducing new products to the market.

• Pioneers: constantly looking for new customers, or introducing new products, or both.

• Order-Getters: Expand line of products sold to existing customers as well as findings new customers.

Existing Business

• Maintain relationship with customers.• Order-takers: work a route. (Frito-Lay)• Also need to be creative to sell more

productively. • Get higher share of customer.• Service is important in maintaining

relationships.

Inside Sales (non-retail)

• Physically remain in marketing company’s facilities.

• Can be passive (catalog sales).• Can be active (telemarketing).• Can supplement or replace field selling.• Customer service often will serve as “add-

on” sales.

Direct-to-Consumer Sales

• Retail: 4.5 million salespeople in USA• Another million in real estate, insurance,

and securities.• Yet, another millions selling Tupperware,

Mary Kay, Avon, Amway, etc.• Some are part-time, some temporary, some

are highly specialized/educated.

Combination Sales Jobs

• Often, a salesperson has to perform more than one of these tasks as part of her or his job.

• New and existing• Inside and outside• Provide/Receive support• It’s not always clear cut.• “Whatever it takes.”

Trade selling

(Existing Customers)

Type of Sales Job

Missionary selling (Promotional)

Technical selling (Highly technical products)

New business selling (New Business, Rainmaker)

Relatively Important Characteristics

Relatively Less Important Characteristics

Age, maturity, empathy, knowledge of customer and business methods

Aggressiveness, technical ability, product knowledge, persuasiveness

Youth, high energy and stamina, verbal skill, persuasiveness

Empathy, knowledge of customers, maturity, previous sales experience

Education, product and customer knowledge--usually gained through training, intelligence

Empathy, persuasiveness, aggressiveness, age

Experience, age, maturity, aggressiveness, persuasiveness, persistence

Customer knowledge, product knowledge, education, empathy

Characteristics of Sales Career

• Job security & Mobility• Advancement opportunities (make your own)• Immediate feedback ($, % Quotas)• Prestige (can be very successful)• Job Variety (deal with people all the time)• Independence (Lone Wolf fading)• Compensation (Make your own success)• Boundary-Role effects: Boundary-Spanner

Qualifications & Skills for Sales

• Empathy: Understand/read customer• Ego Drive: Inner need to persuade others• Ego Strength: Self-assured (to deal with

rejection) and Self-efficacy (control own success)• Interpersonal Communication Skills (listening,

asking questions, explain clearly)• Enthusiasm (for yourself and customers)

Salespeople are Born And Made

• Aptitude and personality are inherent. You cannot develop. Manager can recruit and hire people with desired traits.

• Skills can be trained. Take practice.• Enthusiasm ≠ Motivation, but related.• Motivation can influence enthusiasm.• Many things can influence motivation.

The End of the Road