Kotcha16.ppt

7/29/2019 Kotcha16.ppt

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Chapter 16

Personal Selling and Sales

Management


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Nature of Personal SellingMost salespeople are well-educated, well-trained professionals who work to build and

maintain long-term relationships withcustomers.

The term salesperson covers a wide spectrum ofpositions from:

Order taker (department store salesperson)

Order getter (someone engaged in creative selling)

Missionary salesperson (building goodwill oreducating buyers)


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What is Personal Selling?

Involves Two-Way, PersonalCommunication Between Salespeopleand Individual Customers Whether:face to face,

by telephone,

through video conferencing,

or by other means.


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The Role of the Sales ForcePersonal selling is effective becausesalespeople can:

probe customers to learn more about theirproblems,

adjust the marketing offer to fit the specialneeds of each customer,

negotiate terms of sale, and build long-term personal relationships with key

decision makers.


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The Role of the Sales Force

Sales ForceServes as a Critical Link

Between a Company and its Customers Since They:

Represent Customers tothe Company to Produce

Customer Satisfaction

Represent the Companyto Customers to Produce

Company Profit


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Designing Salesforce Strategy and Structure

Recruiting and Selecting Salespeople

Training Salespeople

Compensating Salespeople

Supervising Salespeople

Evaluating Salespeople

Major Steps in Sales Force

Management (Fig. 16.1)


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TerritorialExclusive Territory to Sell theCompanys Full Product Line

ProductSales Force Sells Only a Portion ofThe Companys Products or Lines

CustomerSales Force Sells Only to Certain

Customers or Industries

Designing Sales Force Strategy

and StructureComplex Forms Are aCombination of AnyTypes of Sales Force

Structures


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Sales Force SizeSalespeople are one of a companys mostproductive and expensive assets.

Sales forces have been shrinking in sizebecause of:Advances in selling technology,

Recent merger mania.

Many companies use some form ofworkload approach to set sales force size: Group accounts into different size classes,

How many people are needed to call on them.


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Inside SalesForce

Outside SalesForce

Travel to Call onCustomers

Sells to MajorAccounts

Finds MajorNew

Prospects

Conduct Business From TheirOffices Via Phone or Buyer Visits

TechnicalSupportPeople

Tele-Marketing

OrInternet

Other Sales Force Strategy

and Structure Issues

SalesAssistants


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Team SellingMost companies are nowusing team selling toservice large, complex

accounts.

Finds problems, solutions,and sales opportunities.

Problems: can overwhelm

customers, difficultiesworking with teams,evaluation of salesperformance.


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Some Traits of Good

Salespeople


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College Students

Recommendations for

Recruiting Salespeople

Classified Ads

Employment Agencies

Current Salespeople


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SelectionProcess

Usually

Evaluates

a Persons

Other Characteristics

Personality Traits

Sales Aptitude

Analytical and

Organizational Skills

Selecting Salespeople


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Help Salespeople Know & IdentifyWith the Company

Learn About the Products

Learn About Competitorsand Customers Characteristics

Learn How to MakeEffective Presentations

The Average Sales Training Program lasts for Four Months andHas the Following Goals:

Training Salespeople

Understand Field Proceduresand Responsibilities


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Fixed

Amount

Usually a

Salary

Variable

Amount

Usually

Commissions

Or Bonuses

To Attract Salespeople, a Company Must Have an

Attractive Plan Made Up of Several Elements

Expense

Allowance

For Job

Related

Expenses

Compensating Salespeople


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Supervising SalespeopleDirecting Salespeople

Identify Customer Targets& Call Norms

Develop Prospect Target

Use Sales Time Efficiently

Annual Call Plan

Time-and-Duty Analysis

Sales Force Automation

Motivating Salespeople

Organizational Climate

Sales Quotas

Positive Incentives

Sales Meetings

Sales Contests

Honors and Trips

Merchandise/ Cash


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AdministrativeTasks

16%

TelephoneSelling25.1%

Waiting/Traveling

17.4%

Service Calls12.7%

Face-to-FaceSelling28.8%

Companies LookFor Ways toIncrease the

Amount of Time

SalespeopleSpend Selling.

How Salespeople Spend Their

Time (Fig. 16.2)


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Evaluating SalespeopleManagement gets information about itssalespeople in several ways:

Sales reports, call reports, expense reports, and Personal observations, customer surveys, etc.

Formal evaluation of performance can be

done qualitatively or quantitatively.Evaluation methods of performance include: Comparing salespeoples performance to others,

Comparing current sales with past sales.


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Discussion ConnectionsAs you did at the start of the chapter,envision a typical salesperson. Have your perceptions of salespeople changed after

what youve just read and discussed? How? Bespecific.

Many people feel they do not have theattributes and abilities required for successful

selling. What role does training play in helpinga person develop selling skills and abilities?

State what your career ambition is and brieflystate how you might be involved in selling.


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Major Steps in Effective

Selling (Fig. 16.3)Prospecting and Qualifying

Preapproach

Approach

Presentation and Demonstration

Handling objections

Closing

Follow-up


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ProspectingSalesperson Identifies Qualified Potential

Customers.

Preapproach

Salesperson Learns as Much as Possible

About a Prospective Customer BeforeMaking a Sales Call.

QualifyingProcess of Identifying Good Prospects

and Screening Out Poor Ones.

Steps in the Selling Process

ApproachSalesperson Meets the Buyer and Getsthe Relationship Off to a Good Start.


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PresentationSalesperson Tells the Product Story tothe Buyer Using the Need-Satisfaction

Approach.

Closing Salesperson Asks the Customer for anOrder.

HandlingObjections

Salesperson Seeks Out, Clarifies, andOvercomes Customer Objections to

Buying.

Steps in the Selling Process

Follow-UpOccurs After the Sale and EnsuresCustomer Satisfaction and Repeat

Business.


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What is Relationship

Marketing?

Relationship Marketing is theProcess of Creating, Maintaining,and Enhancing Strong, Value-

Laden Relationships With

Customers and OtherStakeholders.


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Review of Concept

ConnectionsDiscuss the role of a companys salespeople in creatingvalue for customers and building customerrelationships.

Explain how companies design sales force strategy andstructure.

Explain how companies recruit, select, and trainsalespeople.

Describe how companies compensate and supervisesalespeople, and how they evaluate sales forceeffectiveness.

Discuss the personal selling process, distinguishingbetween transaction-oriented marketing andrelationship marketing

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Kotcha16.ppt