Personal Selling and Customer Service
Chapter 14 Personal Selling and Customer Service CHAPTER FOURTEEN Lecture Notes for Essentials of Marketing 14e Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. 2014 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin At the end of this presentation, you should be able to:
This slide refers to material on p. 374. understand the importance and nature of personal selling. know the three basic sales tasksorder-getting, order-taking, and supportingand what various kinds of salespeople can be expected to do. understand why customer service presents different challenges than other personal selling tasks. know the different ways sales managers can organize salespeople so that personal selling jobs are handled effectively. know how sales technology affects the way sales tasks are performed. At the end of this presentation, you should be able to: understand the importance and nature of personal selling. know the three basic sales tasksorder-getting, order-taking, and supportingand what various kinds of salespeople can be expected to do. understand why customer service presents different challenges than other personal selling tasks. know the different ways sales managers can organize salespeople so that personal selling jobs are handled effectively. know how sales technology affects the way sales tasks are performed. At the end of this presentation, you should be able to:
This slide refers to material on p. 374. know what the sales manager must do, including selecting, training, and organizing salespeople to carry out the personal selling job. understand how the right compensation plan can help motivate and control salespeople. understand when and where to use the three types of sales presentations. understand important new terms. At the end of this presentation, you should be able to: know what the sales manager must do, including selecting, training, and organizing salespeople to carry out the personal selling job. understand how the right compensation plan can help motivate and control salespeople. understand when and where to use the three types of sales presentations. understand important new terms. Strategy Planning and Personal Selling (Exhibit 14-1)
This slide refers to material on p CH 13: Promotion Intro to Integrated Marketing Communications CH 14: Personal Selling and Customer Service CH 15: Advertising, Publicity & Sales Promotion Summary Overview In this chapter we take a closer look at the important promotion strategy decisions that marketing and sales managers make in personal selling and customer service. Key Issues In this chapter, the discussion will include a number of frameworks and how-to-approaches that guide strategy decisions. The structure of the chapter is divided into the following four broad personal selling and customer service issues: The importance of personal selling Personal selling tasks Strategy decisions The personal selling process Importance of personal selling Personal selling tasks Strategy decisions Personal selling process The Importance and Role of Personal Selling
This slide refers to material on p Indicates place where slide builds to include the corresponding point (upon mouse click). Requires strategy decisions Helping to buy is good selling Personal Selling Is Important Summary Overview In serving a particular target market, one of the key elements of the promotion mix is personal selling. Salespeople are communicators who build relationships. Key Issues Personal selling is important to all companies. Salespeople must be able to meet customer needs and company expectations. Its also economically vital to the companys survival. In addition, salespeople and sales managers need to decide what specific personal selling techniques will be used in dealing with the organizations customers and prospects. Helping customers make good buying decisions is good selling. In meeting customer needs, salespeople build lasting relationships with customers. Salespeople represent the whole companyand customers too. How the salesperson behaves is all many customers will ever know about the company. Discussion Question: How does this statement apply in financial services? The sales force aids in the market information function, providing feedback to the company regarding what customers think, feel, and want. Salespeople can be strategy planners, making decisions every day about how to manipulate promotional mix elements to fit the needs of their customers. Salespeople can be strategy planners Salespeople represent whole company & customers Sales force provides market information What Kinds of Personal Selling Are Needed?
This slide refers to material on p. 377. Indicates place where slide builds to include the corresponding point (upon mouse click). Order-Getting Order-Taking Basic Sales Tasks Summary Overview Marketing managers recognize that effective personal selling involves successful completion of a number of activities, and establishing a balance between the right number and the right kind of salespeople. Therefore, it is important for marketers to understand the basic sales tasks that are to be performed. Key Issues Personal selling is divided into three tasks. These basic sales tasks are: order-getting; order-taking; and supporting. Order getters and order takers obtain orders on behalf of a company. Supporting salespeople are not directly interested in orders; their function is to help the order-oriented salespeople. In some cases, a single salesperson will do all three tasks. In other cases, particularly in large companies that depend heavily on personal selling, the tasks are divided among a number of sales professionals. Discussion Question: What are the pros and cons of having a salesperson perform all three basic tasks, compared to dividing the tasks up among several salespeople? Supporting Order Getters Develop New Business Relationships
This slide refers to material on p. 378. Indicates place where slide builds to include the corresponding point (upon mouse click). Order Getters andOrder-Getting Producers Order Getters Find New Opportunities Summary Overview Order getters are concerned with establishing business relationships with new customers and developing new business. Order-getting is seeking possible buyers via a well-organized sales presentation designed to sell a good, service, or idea. Key Issues Order getters must be experts about every aspect of their products. Producers order getters find new market opportunitiesnew prospects, new accounts, and new channels of distribution. Good order getters are problem solvers. Many producers give their order getters special training so they will understand their customers needs and the products that need to be sold. Discussion Question: The customer cannot inspect services before purchasing them. How can an order-getting sales rep get the consumer to buy a service sight unseen? Wholesalers order getters work closely with producers and retailers. In a sense, they almost hand the product to the customer. Salespeople for agent wholesalers are often order getters. Retail order getters influence consumer behavior and help to move products from the market introduction stage to the market growth stage of the product life cycle, especially for heterogeneous shopping products and unsought products. Wholesalers Order Getters Almost Hand It to Customer Retail Order Getters Influence Buyer Behavior Order Takers Nurture Relationships to Keep the Business Coming
This slide refers to material on p Indicates place where slide builds to include the corresponding point (upon mouse click). Order Takers andOrder-Taking Producers Order Takers Train, Explain, & Collaborate Summary Overview Order takers sell to regular customers, completing sales transactions and maintaining relationships. Order-taking is the routine completion of sales made regularly to target customers. Key Issues Order takers need to be highly trained, competent individuals. Order-taking activities can make the difference between keeping and losing a customer. Producers order takers train, explain, and collaborate. They work on improving the whole relationship with the customer. Even if computers handle routine reorders, someone has to perform basic tasks such as making adjustments, handling complaints, and keeping customers informed of new developments. Wholesalers order takers are involved not in getting orders but in keeping them. Wholesale order takers may have to deal with thousands of items. As a result, they often keep in contact with customers on a regular basis and fulfill any needs that arise, as opposed to selling any particular item. Retail order takers are often poor salesclerks who are not paid or trained well. Knowledgeable, courteous, helpful salesclerks can play an important role in a retailers marketing mix. Discussion Question: Why do you think that retailers do not place more emphasis on training and compensating retail order takers? Wholesalers Order Takers Dont Get OrdersBut Keep Them Retail Order Takers Are Often Poor Sales Clerks Supporting Sales Force Informs and Promotes in the Channel
This slide refers to material on p Indicates place where slide builds to include the corresponding point (upon mouse click). Missionary Salespeople Technical Specialists Supporting Sales Tasks Summary Overview Supporting salespeople help the order-oriented salespeople but they dont try to get orders themselves. Their activities, such as providing specialized services and information, are aimed at enhancing the relationship with the customer and getting sales in the long run. Key Issues Missionary salespeople are supporting salespeople who work for producers by calling on their intermediaries and customers. Missionary salespeople can increase sales by creating goodwill, providing training, and performing other activities. This position is often used as a training ground for new salespeople. Technical specialists provide technical know-how in support of order-oriented salespeople. Technical specialists are experts who know product applications, and they often have science or engineering backgrounds. They are more concerned with providing technical details about products than in persuading customers to place orders. Discussion Question: How important are good communication skills for technical specialists? Explain. Customer service reps work with customers to resolve problems that arise after a purchase. Every marketing-oriented company needs good people to handle customer service. Customer Service Reps Checking Your Knowledge
This slide relates to material on p Julie Jones works for an investment firm. She calls on potential clients, introduces them to her firm, develops goodwill, and tries to set up contacts between customers and her firms account managers. Julie does not manage any accounts herself, but is using her current position as a training opportunity in hopes of moving up to an account manager position. Julies current position is that of a(n): A.order taker. B.order getter. C.missionary salesperson. D.sales manager. E.systems seller. Checking Your Knowledge Answer: C Feedback: Missionary salespeople are supporting salespeople who work for producerscalling on their intermediaries and their customers. Julies current position matches the description of a missionary salesperson. The best answer selection is C. Customer Service Promotes the Next Purchase
This slide refers to material on p Indicates place where slide builds to include the corresponding point (upon mouse click). Not the product Part of promotion What is customer service? Summary Overview The focus of customer service is on the service that is required to solve a problem that a customer encounters with a purchase. Key Issues Customer service is part of promotion. A firm should view customer service reps as a key part of personal selling. Big data and social media can create proactive customer service Regardless of whether the firm or the customer causes the problem, customer service reps need to be effective communicators, have good judgment, and realize that they are advocates not only for their firm, but also for its customers. Discussion Question: Think of an experience that you have had recently where you had a problem with a purchase and you contacted the company about the problem.How was it handled?Were you satisfied?If not, did you tell friends and/or family about the experience? Reps are customer advocates Big data and social media The Right Structure Helps Assign Responsibility
This slide refers to material on p Indicates place where slide builds to include the corresponding point (upon mouse click). Different Markets, Different Tasks Team Selling Major Accounts Sales Force Summary Overview The sales manager must organize the sales force so that all necessary tasks are performed well. If different people handle different sales tasks, firms often rely on team sellingwhen different people work together on a specific account. Key Issues Different target markets need different selling tasks. Managers often have different sales forces for different target markets due to variations in the support or information needs of the target markets. For example, big accounts often get special treatment from a major accounts sales force. Discussion Question: What are the advantages of having a separate sales force for big accounts? Are there any disadvantages? Some salespeople specialize in telephone selling. Telemarketing is quick and inexpensive and can provide a way to serve customers who would otherwise be too expensive to support. Sales tasks are done in sales territories. A sales territoryis a geographic area that is the responsibility of one salesperson or several working together. Managers must weigh distance, number of customers, the complexity of account service, and the potential profitability of setting up sales territories. The size of the sales force depends on workload per salesperson. Assessing the workload evaluates the time required for sales tasks as well as the number of customers and other important market factors. Sales Force Size and Workload Telemarketing Sales Territories Interactive Exercise: Sales Force Workload
This slide refers to material on p. 386. The objective of this exercise is to illustrate the concept of sales force workload. A sales manager can determine the number of salespeople needed by analyzing the workload of a typical salesperson for a finite time period, and then make an educated guess regarding how many salespeople are needed to reach the firms goals. This exercise walks the student through the workload analysis and it provides a platform for discussing the implications of changing the workload. Working through the exercise, the students will learn: How sales managers can determine the number of salespeople needed; How companies try to increase productivity of their salespeople; The impact of changes in the workload on customer relationships. A typical and understandable mistake to make regarding workload is to add more people when theres more work to do. This isnt usually a good idea. Some projects take time to implement. After all, 9 women cant make a baby in 1 month. For complete information and suggestions on using this Interactive Exercise, please refer to the Notes on the Interactive Exercise section for this chapter in the Multimedia Lecture Support Package to Accompany Essentials of Marketing.That same information is available as a Word document in the assets folder for the PowerPoint file. Sometimes Technology Can Substitute for Personal Selling(Exhibit 14-3)
This slide refers to material on p Indicates place where slide builds to include the corresponding point (upon mouse click). Emphasis on standardized e-commerce (with customer service) Emphasis on both personal selling & customized e-commerce Standardized information exchanged on a recurring basis (orders, invoices, delivery status, product information prices High Summary Overview Marketing and sales managers in many firms are finding that some tasks that have traditionally been handled by a salesperson can now be handled effectively and at lower cost by information technology and e-commerce systems. Key Issues In situations requiring a significant need to create and build relationships, and a low degree of information standardization: A salesperson is likely to be required. The salesperson can offer creative problem solving, persuasion, and coordination of sales activities. In situations requiring a significant need to exchange standardized information, but not a great need for relationship building: Marketers can use e-commerce methods to exchange information about inventory, orders, and delivery status. Websites can contain product specifications and prices. In situations requiring a significant need to exchange standardized information, and a great need for relationship building: Technology may provide standardized information, while a sales rep spends time on value-added communication with the customer. In situations requiring neither a significant need to create and build relationships, or the exchange of standardized information: E-commerce sometimes substitutes for personal selling through digital self-service. Electronic banking, ATMs, and virtual shopping carts are examples. Discussion Question: Are consumers becoming more dependent on digital self-service? Why or why not? Emphasis on digital self-service Emphasis on personal selling Low Low High Relationship building required (problem solving, coordination, support, cooperation) Information Technology Provides Tools to Do the Job
This slide refers to material on p Indicates place where slide builds to include the corresponding point (upon mouse click). NewSoftware Great Changes in Handling Tasks New Hardware Summary Overview IT (information technology) advancements have led to changes in how sales tasks are handled. Many of todays sales reps rely on an array of software and hardware that wasnt available a decade ago. Key Issues There is new software for spreadsheet analysis, electronic presentations, time management, sales forecasting, customer contact, and shelf-space management. Hardware devices include personal digital assistants with wireless Internet access, cellular phones, fax machines, laptop computers, pagers, and personalized videoconferencing systems. In many situations the new software and hardware provide a competitive advantage. They are dramatically changing the ability of sales reps to meet the needs of their customers while achieving the objectives of their jobs. However, the availability of these technologies does not change the basic nature of the sales tasks that need to be accomplished. What they do change is the wayand how wellthe job is done. Of course, if a firm expects salespeople to be able to use these technologies, that requirement needs to be included in selecting and training people for the job. Discussion Question: What obstacles exist that may hinder the adoption and use of new sales technologies within a particular organization? In other words, if these tools are so great, why doesnt everyone use them? Good Selection and Training Needed Technology Can Be a Competitive Advantage What is Done vs. How Its Done Using Technology in Personal Selling
This slide refers to material on p This humorous ad from Sprint features Sprint PCS, a high-tech communications package. The salesperson in the ad is ready to tell the world about the many attractive features of Sprint PCS. Some of these features would be particularly attractive to businesspeopleand salespeopleon the go. Video Operation: Use the onscreen player controls to operate the video. To view the video at Full Screen, right-click the video and choose Full Screen. To go back to your presentation you can either hit the Escape key, right-click on the video and uncheck Full Screen, or type Alt+Enter. You can do this at anytime during the video playback. Under certain circumstances, the video may not fill the video player window. To restore, right-click the video player object and select Zoom 200%. The videos will only play in Slide Show View. Macros must be enabled in order to play the videos from within PowerPoint. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Sound Selection to Build a Sales Force
This slide relates to material on p Summary Overview It is important to hire good, well-qualified salespeople. Progressive companies adopt a systematic approach to selecting a sales force. Key Issues Selecting good salespeople takes judgment, plus other specific techniques. Companies constantly update lists of possible job candidates. They invite applications at the companys website. They schedule candidates for multiple interviews, do background checks, and may even use psychological tests. As shown in this ad, customers who rent heavy construction equipment want to deal with a knowledgeable salesperson. So CAT selects salespeople who have experience with the applications for which the equipment will be used and gives them training on CAT products and new developments in the market. Discussion Question: If you were selecting someone to serve in a sales force, what types of questions would you ask in an interview? Training to Meet a Job Description
This slide refers to material on p Indicates place where slide builds to include the corresponding point (upon mouse click). Specific, Written Job Description Summary Overview Sound selection is not the only important consideration for sales managers. Motivating salespeople is also important and requires careful assessment of the needs of the company and the individual when setting compensation. Key Issues The job description is a statement of what a salesperson is expected to do. Job descriptions should be specific and in writing. The job description becomes a tool for recruiting candidates whose qualifications are a good match for the job. Good salespeople are trained, not born. All salespeople need some training--even those with natural ability. Training is required to learn: selling methods, customer needs, organization skills, how to promote the product line, and how to constantly update this knowledge with new information. Discussion Question: Why is it that some of the best salespeople are not the back-slapping, extroverted, talkative people most consumers have come to expect when thinking of a professional salesperson? At minimum, a companys sales training program should cover: company policies and practices; product information; building relationships with customers; and professional selling skills. Trained, Not Born All Salespeople Need Training Checking Your Knowledge
This slide relates to material on p. 390. After spending two years in the insurance business, Anne McCauley decided to go to graduate school so that she could become qualified to teach high school English. Even though she had a reasonable amount of success in selling insurance, she could not deal with the variability in her income from month to month. She said, In some months I earn all the money I need in a couple of days. In other months, I can work hard all month long and earn nothing. She wanted a career with more regular earnings. It sounds as though Anne was on a _________ compensation plan in the insurance business. A.straight commission B.straight salary C.combination D.cost-plus Checking Your Knowledge Answer: A Feedback: Annes description of her insurance job matches a straight commission compensation plan. There were certain months where she met her requirements and earned her commission in a few days. But there were months when she did not meet her requirements and earned nothing. This compensation format is consistent with a straight commission plan. The best answer selection is A. Compensating and Motivating Salespeople
This slide refers to material on p. 391. Indicates place where slide builds to include the corresponding point (upon mouse click). Level of Compensation Method of Payment Summary Overview To recruit and keep good salespeople, a firm must design an attractive compensation package that also motivates salespeople to become top performers. The key is to match what people want to do and what interests them with the needs of the company. Key Issues Two basic decisions must be made in developing a compensation plan: the level of compensation, and the method of payment. Regarding the level of compensation, the amount of money a person can make should be at least comparable to competitors compensation. Compensation varies with the job and needed skills. Payment methods also vary. Salespeople are typically compensated by: straight salary; straight commission--a percentage of sales, or some combination of salary and commission. Discussion Question: Which one of these plans would provide the most security? Which one would provide the most incentive? Combination plans are most common. Straight Salary Straight Commission Combination Plan Interactive Exercise: Sales Force Compensation
This slide refers to material on p. 391. The purpose of this exercise is to help students understand the various sales force compensation options. The exercise begins with three scenarios in which students are challenged to identify the most appropriate compensation plan based on the nature of the selling task. Next, students are asked to calculate the level of compensation for three different combination compensation plans, and make a recommendation as to which they would implement given a particular sales forecast. Finally, students are challenged to evaluate a more realistic scenario in which the rate of commission associated with each combination plan influences the level of sales volume and as a result, revenues. Each portion of the combination sales compensation plan analysis is accompanied by multiple graphs. For complete information and suggestions on using this Interactive Exercise, please refer to the Notes on the Interactive Exercise section for this chapter in the Multimedia Lecture Support Package to Accompany Essentials of Marketing.That same information is available as a Word document in the assets folder for the PowerPoint file. Determining the Choice of the Pay Plan
This slide relates to material on p. 391. Summary Overview What determines the choice of the pay plan? Key Issues Straight salary gives controlif there is close supervision. The salaried salesperson is expected to do what the sales manager wants. Sales managers need to exercise close supervision. Commissions can motivate and direct priorities. A salesperson on straight commission tends to be his or her own boss. Incentives should link efforts to results. Incentives must be carefully aligned with the firms objectives. Discussion Question: What types of incentives do you think would motivate people to sell more or to provide better customer service? Differences in territory potential can be taken into account when setting sales quotas the specific sales or profit objectives that salespeople are expected to achieve. Flexibility vs. Simplicity (Exhibit 14-4)
This slide refers to material on p Straight commission Combination plan Summary Overview Limitations on working capital or market uncertainty may compel a company to choose a straight commission plan, or a combination plan with a large commission component.That way, total selling expense goes up only if salespeople actually bring in customers and revenue. Key Issues This exhibit illustrates that straight salary is simple to understand and administer.Its the same regardless of sales. Commission is more complicated but can add flexibility.As sales volume increases, total selling expense: increases at the fastest rate for a straight commission plan; increases at a lesser rate for a combination plan; and remains constant with a straight salary plan. A straight salary plan is simple salespeoples pay is not dependent on the amount they sell. A combination plan includes some salary and some commission. Compensation plans must be clear. Salespeople need to see the link between effort and income. Although straight salary plans provide the most simplicity, sales managers often sacrifice some simplicity to achieve control, incentive, and flexibility. Discussion Question: What would be the simplest compensation planstraight salary, straight commission, or a combination plan? Why? Sales managers must plan, implement, and control the compensation plan. Total selling expense Straight salary Sales volume Key Steps in the Personal Selling Process (Exhibit 14-5)
This slide refers to material on p Indicates place where slide builds to include the corresponding point (upon mouse click). Prospect for new customers Evaluate needs of established customers and business opportunity Set effort priorities Summary Overview Each step in the personal selling process involves its own set of skills. But it is also important to think of the process as a whole. Key Issues Prospecting is following all the leads in the target market to identify potential customers and narrow down to the right target. In business markets, a salesperson may have to work hard to find the real purchase decision makers, because of multiple buying influence. The salesperson needs to assess the needs of established customers and set priorities, because all customers are not equal. How long to spend with whom? Selecting target customers involves identifying factors for successwhat the customer needs, what the company offers, and how well the salesperson can find a good match. A company often develops a way to rank potential customers. Discussion Question: How much planning goes into the typical telemarketing sales calls consumers receive at home? Explain. The personal selling process continues with the sales presentation, which is the salesperson's effort to make a sale or address a customer's problem. Before making the presentation, the salesperson should learn as much about the client as possible, such as who makes the purchase decisions and the key criteria they use. Better information allows the salesperson to custom-design a presentation to match specific customer needs. Discussion Question: Describe a time when you thought a salesperson made an excellent presentation. Why do you think this stands out in your mind? Lets take a closer look at the three types of sales presentation approaches prepared, consultative, and selling approach. Select target customer Identify who influences purchase decision and/or who is involved in buyer-seller relationship Preplan sales call and presentation(s) Prepared presentation Consultative selling approach Selling formula approach Three Types of Sales Presentation Approaches May Be Useful
This slide refers to material on p. 395. Indicates place where slide builds to include the corresponding point (upon mouse click). Three Presentation Approaches Summary Overview Salespeople choose among three approaches when making a sales presentation. 1) Prepared sales presentation: a memorized presentation that is not adapted to each individual customer. This canned approach is often used when the prospective sale is low in value, only a short presentation is possible, or the salesperson is not yet very skilled. It standardizes the presentation, but suffers from being rigid and treating all customers alike. 2) Consultative selling approach: involves developing a good understanding of the individual customers needs before trying to close the sale--it builds on the marketing concept. After making general opening comments, the salesperson asks the customer questions and listens carefully to the answers to identify unique customer needs. The salesperson acts as a consultant to meet the customers needs. 3) Selling formula approach: starts with a rehearsed presentation, but moves toward more customer interaction, questioning, and participation during the course of the presentation. The selling formula approach is some of both of the other two approaches. Discussion Question: The financial services industry is in various stages of adopting a consultative selling approach to replace its traditional selling formula approach.Comment on the difference between an insurance sale of a product versus using a financial plan to identify insurance needs. Prepared Approach Consultative Approach Selling Formula Approach Checking Your Knowledge
This slide relates to material on p A seller of asset-management services specializes in marketing his services to people connected with the publishing business, such as authors, book distributors, and bookstore owners. He often gets leads by scanning newspapers and magazines, looking for new authors whose books are favorably reviewed. This searching takes place in the _________ stage of the personal selling process. A.follow-up B.sales presentation C.closing D.prospecting E.prequalification Checking Your Knowledge Answer: D Feedback: This seller is involved in following all leads in the target market to identify potential customers. This search process is the prospecting stage of the personal selling process. The best answer selection is D. Key Steps in the Personal Selling Process (Exhibit 14-5)
This slide refers to material on p. 394. Indicates place where slide builds to include the corresponding point (upon mouse click). Prospect Set effort priorities Evaluate needs Select target customer Preplan sales call and presentation(s) Summary Overview Selecting a sales presentation approach is not the end of the personal selling process. The salesperson has to make the presentation, close the sale, and follow up after the sale. Key Issues Lets continue our walk through the personal selling process. Recall the AIDA modelfrom the previous chapter. Salespeople must also try to generate attention, interest, desire, and action. These concepts can help a salesperson plan sales presentations. It is necessary to get the customers attention at the start of a presentation and move to getting the customer to take action. Generating interest, answering problems and objections, and arousing desire are all critical. Presentations should end with a closehere the salesperson asks for the customers business. The best salespeople learn how to close effectively. Make sales presentation Create interest Overcome problems/objections Arouse desire Close the sale (get action) Key Steps in the Personal Selling Process (Exhibit 14-5)
This slide refers to material on p. 394. Indicates place where slide builds to include the corresponding point (upon mouse click). Prospect Set effort priorities Evaluate needs Select target customer Preplan sales call and presentation(s) Summary Overview After a sales presentation, the salesperson may follow-up with the hope of acquiring a new customer.Or if the customer purchases, the salesperson will follow-up to maintain and enhance the relationship. Key Issues The process includes a feedback loopsometimes the salesperson may have to go back and start at an earlier stage in the process. As in other areas of the promotion mix, ethical issues may arise in personal selling. Obviously, the truthfulness of the salesperson is important. Discussion Question: Is a company ever served well by dishonest salespeople, even if the questionable practices result in high sales volume? Explain. Problems are less likely to arise if a salesperson emphasizes the fulfillment of customer needs and building a long-term relationship. Top management and marketing or sales managers set the ethical tone for the sales force. Feedback Make sales presentation Close the sale (get action) Follow up after sales call to establish relationship Follow-up after the purchase to maintain and enhance relationship Checking Your Knowledge
This slide relates to material on p Light-the-Way, Inc. sells standard household items such as cleaners, trash bags, and light bulbs via telemarketing. The products are made or packaged by people who are visually impaired. The company donates a percentage of its sales revenue to organizations that provide services to the blind. The telephone sales presentation emphasizes this fact and the quality of the merchandise. The salesperson making the calls reads the same sales script to every potential customer who is called. The only opportunity for the customer to talk comes when the salesperson attempts to close the sale. This is an example of a(n): A.consultative selling approach. B.selling formula approach. C.prospecting approach. D.systems selling approach. E.prepared sales presentation. Checking Your Knowledge Answer: E Feedback: The salesperson making the telephone calls does not adapt the material read to each potential customer. In fact, it is the exact same script. This approach is an example of the prepared sales presentation. So, the best answer selection is E. An Example of Consultative Selling
This slide refers to material on p. 396. This ad from ReMax shows how real estate agents can assist prospective home buyers early in the personal selling process by understanding their unique needs. Video Operation: Use the onscreen player controls to operate the video. To view the video at Full Screen, right-click the video and choose Full Screen. To go back to your presentation you can either hit the Escape key, right-click on the video and uncheck Full Screen, or type Alt+Enter. You can do this at anytime during the video playback. Under certain circumstances, the video may not fill the video player window. To restore, right-click the video player object and select Zoom 200%. The videos will only play in Slide Show View. Macros must be enabled in order to play the videos from within PowerPoint. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. You should now be able to:
This slide refers to material on p. 374. understand the importance and nature of personal selling. know the three basic sales tasksorder-getting, order-taking, and supportingand what various kinds of salespeople can be expected to do. understand why customer service presents different challenges than other personal selling tasks. know the different ways sales managers can organize salespeople so that personal selling jobs are handled effectively. know how sales technology affects the way sales tasks are performed. You now should: understand the importance and nature of personal selling. know the three basic sales tasksorder-getting, order-taking, and supportingand what various kinds of salespeople can be expected to do. understand why customer service presents different challenges than other personal selling tasks. know the different ways sales managers can organize salespeople so that personal selling jobs are handled effectively. know how sales technology affects the way sales tasks are performed. You should now be able to:
This slide refers to material on p. 374. know what the sales manager must do, including selecting, training, and organizing salespeople to carry out the personal selling job. understand how the right compensation plan can help motivate and control salespeople. understand when and where to use the three types of sales presentations. understand important new terms. You now should: know what the sales manager must do, including selecting, training, and organizing salespeople to carry out the personal selling job. understand how the right compensation plan can help motivate and control salespeople. understand when and where to use the three types of sales presentations. understand important new terms. Key Terms basic sales tasks order getters order-getting order takers
This slide refers to boldfaced terms appearing in Chapter 14. basic sales tasks order getters order-getting order takers order-taking supporting salespeople missionary salespeople technical specialists customer service reps team selling major accounts sales force telemarketing sales territory job description sales quota prospecting Summary Overview These are key terms you should be familiar with based upon the material in this presentation. Key Issues Basic sales tasks: order-getting, order- taking, and supporting. Order getters: salespeople concerned with establishing relationships with new customers and developing new business. Order-getting: seeking possible buyers with a wellorganized sales presentation designed to sell a product, service, or idea. Order takers: salespeople who sell to regular or established customers, complete most sales transactions, and maintain relationships with their customers. Order-taking: the routine completion of sales made regularly to target customers. Supporting salespeople: salespeople who help the orderoriented salespeoplebut don't try to get orders themselves. Missionary salespeople: supporting salespeople who work for producers by calling on their middlemen and their customers. Technical specialists: supporting salespeople who provide technical assistance to orderoriented salespeople. Customer service reps:work with customers to resolve problems that arise with a purchase, usually after the purchase has been made. Team selling: different sales reps working together on a specific account. Major accounts sales force: salespeople who sell directly to large accounts such as major retail chain stores. Telemarketing: using the telephone to call on customers or prospects. Sales territory: a geographic area that is the responsibility of one salesperson or several working together. Job description: a written statement of what a salesperson is expected to do. Sales quota: the specific sales or profit objective a salesperson is expected to achieve. Prospecting: following all the leads in the target market to identify potential customers. 14-33 Key Terms sales presentation prepared sales presentation close
This slide refers to boldfaced terms appearing in Chapter 14. sales presentation prepared sales presentation close consultative selling approach selling formula approach Summary Overview These are additional key terms. Key Issues Sales presentation: a salesperson's effort to make a sale or address a customer's problem. Prepared sales presentation: a memorized presentation that is not adapted to each individual customer. Close: the salesperson's request for an order. Consultative selling approach: a type of sales presentation in which the salesperson develops a good understanding of the individual customer's needs before trying to close the sale. Selling formula approach: a sales presentation that starts with a prepared presentation outlinemuch like the prepared approachand leads the customer through some logical steps to a final close. 14-34