Personal Selling Copyright 2010 SAGE Publications, Inc. 9-1

Personal Selling

Copyright 2010 SAGE Publications, Inc.9-1

IBMIBM1911, C-T-R (Computing-Tabulating-Recording CompanySales an important ingredient of IBM1993 new strategic effort “fully-integrated solutions”Service, products, and technologies sold as one system2000 U.S. National Medal of Technology award

Copyright 2010 SAGE Publications, Inc.

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Retail sellingOrder takerCommission salesService salespersonService provider who also

sells


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Business-to-Business SellingField salespeopleMissionary salespeople

Telemarketers



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Steps in theSellingProcess


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Qualifying ProspectsNot all customers/prospects are of equal

valueQualify along two dimensions

Potential income the lead can generateProbability of acquiring prospect as a customer

Only best prospects warrant visits due to high costs

Quality of lead determines method of contact



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Classification of Prospects“A” Category

Best prospectsField salespeople will make sales call

“B” CategoryProspect satisfied with current vendorUse telephone, mail, e-mail to contact

“C” CategoryUse telephone or e-mailSend marketing material

“D” CategorySend marketing materials



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KnowledgeAcquisitionInformation

SalesPresentationStimulus responseNeed satisfactionProblem solutionMission sharing


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HandlingObjections


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ClosingMethods

Follow-UpCrucial element of effective sellingCost effective to retain current customersOften neglected by salespeopleFollowing up sales calls that do not generate

ordersWho will follow-up?When?How?


Relationship Selling

Goal of sales Develop relationshipsRequires positive experiences for both sidesTakes time to evolveRequires trust


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International PerspectiveLanguage and slangCulture and subculturesMethod of introductionEye contactBody language, gestures, and physical

distanceGiving and receiving giftsUse of business cardsTable manners and foodsDirectness in tone


Managing a Sales ForceRecruiting and selectionTrainingCompensationMotivational programsPerformance evaluation


Recruiting and SelectionOngoing and systematicDevelop strong pool of applicantsTap all internal and external sources



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ExternalRecruiting

Applicant ScreeningLevel of educationDegree of experiencePersonality and personal

characteristicsAptitudeSkill levelPersonal characteristics

Legal compliance


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TrainingOn-the-job training

DemonstrationSink-or-swim

Off-the-job trainingFilms and classroom instructionSimulationsInteractions with sales trainers

Better selling tactics Motivational speeches



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Straight SalaryAdvantages

Leads to greater focus on customer serviceCan emphasize non-selling activitiesRewards are equal even when differences in sales

territoriesCan be structured to reward experience and

competenceReduces inclination to use high-pressure selling

DisadvantagesLittle incentive to push for a saleMay spend more time on non-selling activities


Straight CommissionAdvantages

Better motivational toolPay linked to sales

DisadvantagesLess focus on customer serviceLess effort on non-selling activitiesNo incentive to work with team or other staff

membersCan produce high-pressure sellingEncourage single-transaction mentality


Salary + CommissionUsed by most companiesMix depends on the company’s goalsHigher portion in salary when

Stress customer serviceStress higher-quality customer relationships

Higher portion in commissions when goal is toBoost salesAdd new customersIncrease market share


BonusesSingle project or systematic

YearlyQuarterly

Individual or groupVarious goalsGroup bonuses encourage

Team work

Individual bonuses encouragePersonal accomplishments


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BenefitsHas become challenge for most

companiesHave major impact on

Recruiting new employeesRetention of employeesCost management


Managing Pay SystemsBalance short term and long term goalsBecomes more complex with

Multiple sales levels Field salespeople In-side sales staff Telemarketers

Missionary salespeopleMajor accounts salespeopleOutbound telemarketers


Motivational Programs

Financial incentivesNon-financial incentives


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InputMeasures


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OutputMeasures

Financial MeasuresSales volumeGross margin on salesContribution margin for each

salespersonMore important if salesperson can

Adjust priceOffer incentives



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Warning on Financial AnalysisFinancial analysis tied to input and output

measuresComprehensive evaluationEvaluation tied to compensation and

rewardsOther factors influencing sales

Organizational factorsEnvironmental factors


Performance Evaluation MeetingGive notice in advanceSuggest comfortable placeBegin with accomplishments and strengthsContinue with weaknesses and problem

areasSet goals for next evaluation period


Copyright 2010 SAGE Publications, Inc. 3-41

• Marketing and finance degrees• Business analysts with 3M, Wal-Mart account• Marketing courses

• Consumer Behavior• Marketing Research• Marketing Management

• Learning on the job

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How will Susan’s decision impact each of the customers?Insert

Figure 9.11 What should Susan Hanson do? Which of the three choices is best? Why? How would you handle each employee? How would you handle the customers?

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1. What type of salespeople best fit Kretschmar?2. Should different types of salespeople be hired?3. Which criteria should be used in selecting salespeople?

Aptitudes, skill levels, and personal characteristics4. What type of compensation structure should be used?5. What types of motives and incentives best fit the sales force?6. Which input and output measures are best suited?

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Documents

Personal Selling Copyright 2010 SAGE Publications, Inc. 9-1