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9
C H A P T E R N I N E
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
menu
Personal Selling
MarketingManagement
J. Paul Peter
James H. Donnelly, Jr.
7th Edition
SECTION 1
McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
9
Personal Selling and Marketing
menu
Through personal selling a salesperson dispenses knowledge to buyers.
Through personal selling, a salesperson negotiates price and terms for specialty goods and commercial products.
Salespeople act as a source of market intelligence for management and company information for clients.
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Sales Process
menu
Two basic factors:
1. The objectives the salesperson is trying to achieve while engaged in selling activities
2. The sequence of stages or steps the salesperson should follow to achieve the objectives
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Evolution of Personal Selling
menu
Production Sales Marketing Partnering
TimePeriod
Objective
Orientation
Role of Salesperson
Activities of Salespeople
Before1930
Makingsales
Short-termseller needs
Provider
Taking orders;Deliveringgoods
1930-1960
Makingsales
Short-termseller needs
Persuader
Aggressivepersuasion
1960-1990
Satisfyingneeds
Short-termcustomerneeds
Problemsolver
Matchingproductsand needs
After1990
BuildingRelationships
Long-termneeds of both
Valuecreator
Creatingnewalternatives
FIGURE 9-3
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Use Personal Selling when . . .
menu
. . . products are . . .
• New and different
• Customizable
• Technically complex
• Expensive and require negotiation
• Installable
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Salesforce Objectives
menu
Provide information – especially in the case of new products
Persuasade – distinguishing attributes, creating repeat customers, maximizing sales as a percent of presentations, etc.
After-sale service – delivery, installation, resolve concerns
Assure customer satisfaction
Maximize benefits and margin
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Building Relationships with Sales
menu
PROSPECTING
PLANNING THE SALES CALL
PRESENTING
RESPONDING TO OBJECTIONS
OBTAINING COMMITMENT
BUILDING LONG-TERM RELATIONSHIP
FIGURE 9-1
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Prospecting
menu
The process of locating potential customers . . .
A. Lead – a candidate to whom a sale can be made—target of prospecting process,
B. Random lead generation – mass appeals that require a high number of contacts to generate qualified leads, and
C. Selected-lead searching – uses existing contact to generate new ones—often called referrals . . .
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Planning the Sales Call
menu
1. Research and know your prospect
2. Know your product and product line thoroughly
3. Know your competitor’s products and product line
4. Know the market for your product(s) and the needs they satisfy
5. Schedule time with the prospect
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Presenting
menu
• Be well prepared and set a goal for your presentation
• Develop a checklist of items for discussion
• Schedule an appointment
• Put your contacts at ease
• Strive to make a good impression
• Adapt your style to the prospect
• Work toward your goal
• Schedule follow-up to achieve a sale
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Overcoming Objections
menu
Expect objections to occur at any time, especially during efforts to secure appointments, during the presentation, during attempts to obtain a commitment, and during the after-sale follow-up
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Obtaining Commitment
menu
• Moving toward commitment begins with a scheduled presentation.
• Know why a purchase will benefit your prospect.
•Ask for commitment (the order)– some trainers say, “As early and often.”
• An experienced salesperson knows when and how to ask for commitment.
•Follow-up with a clear, mutually acceptable action plan.
•Be persistent.
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Long-term Relationships
menu
1. Establish and maintain a prospect and customer database.
2. Monitor orders to deliver on-time, on-budget.
3. Ensure appropriate use of your product.
4. Provide customers ongoing guidance and support.
5. Analyze customer feedback and respond to anticipate needs and problems.
6. Assure customer satisfaction through attention and response.
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Cross-functional Selling
menu
Master the benefits of cross-functional selling.
1. Improved sales productivity – both more effective and efficient with delegated tasks.
2. More flexibility and quicker decisions – especially good for small runs of tailored products and customer problem solving.
3. Better decisions – more expertise, better informed alternatives.
4. Increased customer satisfaction – energy, flexibility, commitment and follow-up.
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Sales Specialists
menu
Missionary salespeople – focus on detailing existing products and introducing new ones. (e.g.: Pharmaceuticals)
Technical sales specialists – support the field sales staff by providing technical assistance and client counsel, when appropriate.
Cross-functional sales team – blend the talents and knowledge of functional areas to better meet client needs.
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Supporting Selling
menu
Firms provide . . .
• Efficient and effective sales tools, continuous training, and adequate advertising support.
• Efficient follow-up, delivery and reorder systems.
• Equitable compensation to reward performance.
• Adequate supervision and evaluation of performance for continual improvement.
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Sales Force Control
menu
Sales managers control sales forces by . . .
• Forecasting sales accurately.
• Establishing territories and quotas that benefit the firm and the sales person mutually.
• Analyzing expenses and realigning to improve sales results.
• Motivating individual sales persons, and
• Compensating performance for satisfaction and improvement.
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Sales Forecasting
menu
1. Used to establish quotas
2. Used to plan the personal selling efforts and other types of promotional activities
3. Used to budget expenses
4. Used to plan and coordinate production, logistics, inventories, personnel and so forth.
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Forecasting Methods
menu
Jury of executive method – combines and averages view of top management from various departments
Sales force composite –the sales force becomes the jury
Customer expectations – asking customer how much they expect to purchase and by what date
Time-series analysis – using past data to forecast future sales
Correlation analysis – analyzing dependent and independent variables driving sales volume
Other quantitative functions – growth functions and simulation models
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Sales Quotas
menu
Sales management assigns minimum sales goals in the form of quotas to . . .
. . . provide incentives for salespeople.
. . . provide a quantitative standard for performance measurement.
. . . evaluate and control the efforts of the sales force.
. . . assist individual with personal goal setting.
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Sales Force Technology
menu
Selected technology can improve sales performance. These elements top the list.
Cell phones - 89%
E-Mail – 85%
Presentation Software – 85%
Desktop PCs – 68%
Notebook Computers – 63%
Contact Management Software – 55%
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Performance Evaluation
menu
Effort-Oriented Measures
Number of sales call made
Number of MRO calls made
Number of complaints handled
Number of checks on resellers stocks
Uncontrollable lost job time
Number of inquiries followed up
Number of demonstrations completed
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Performance Evaluation
menu
Results-Oriented Measures
Sales volume
Sales volume as a percentage of quota
Sales profitability
Number of new accounts
Number of stockouts
Number of distributors participating in programs
Number of lost accounts
Number of customer complaints
Distributor sales-inventory ratios
From Ingram, LaFroge and Schwepker
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
Performance Incentives
menu
Positive feedback
Company praise
Bonus
Salary increase
Pay for performance for specific new ideas
Paid educational allowance
Earned time off
Stock options
Fringe benefits
Vested Retirement Plan
Profit SharingFrom Churchill, Ford and Walker
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
9
The AuthorsJ. Paul Peter, Ph.D.University of Wisconsin – Madison
James H. Donnelly, Jr., Ph.D.University of Kentucky – Lexington
Click image to go to author’s web site
Click on the book to go to the book site
PowerPoint design by Lance Fuhrer, MBAPowerPoint content by Larry Fuhrer, MBA, MBA
Keller Graduate School of Management of DeVry University
Marketing Management7th Edition – McGraw-Hill
Click image to go to author’s web site
menu
Chapter Nine
Personal Selling and Marketing
Sales Process
Evolution of Personal Selling
Use Personal Selling When...
Salesforce Objectives
Building Relationships
Prospecting
Planning the Sales Call
Presenting
Overcoming Objections
Obtaining Commitment
Long-term Relationships
Cross-functional Planning
Sales Specialists
Supporting Selling
Sales Force Control
Sales Forecasting
Forecasting Methods
Sales Quotas
Sales Force Technology
Performance Evaluation
Performance Incentives
The Authors
SECTION 1
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