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Personal Selling and Sales Management

Chapter 17

Introduction to Sales Personnel


Importance of personal sales:
Direct link to the customer Most customers see the sales person as the company Designing the sales force internationally is one of the most important functions of the marketing department

A salesman is someone who sells goods that wont come back to customers who will. (Anonymous)

Steps in the Selling Process


Identifying and Screening For Qualified Potential Customers. Learning As Much As Possible About a Prospective Customer Before Making a Sales Call.

Step 1. Prospecting and Qualifying

Step 2. Preapproach

Step 3. Approach

Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start.
Telling the Product Story to the Buyer, and Showing the Product Benefits.

Step 4. Presentation/ Demonstration

Steps in the Selling Process


Seeking Out, Clarifying, and Overcoming Customer Objections to Buying.

Step 5. Handling Objections

Step 6. Closing

Asking the Customer for the Order.

Step 7. Follow-Up

Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business.

Factors Affecting the Importance of Personal Selling in the Promotional Mix


Variable Consumer Conditions That Favor Conditions That Favor Advertising Personal Selling
Geographically concentrated Relatively low numbers Expensive Technically complex Custom made Special handling requirements Transactions frequently involve trade-ins Relatively high Relatively short Geographically dispersed Relatively high numbers Inexpensive Simple to understand Standardized No special handling requirements Transactions seldom involve trade-ins Relatively low Relatively long

Product

Price Channels

The Evolution of Personal Selling


Todays salesperson is usually a highly-trained professional Sales professionals take a customer-oriented approach employing truthful, nonmanipulative tactics in order to satisfy the long-term needs of both the customer and the selling firm Todays professional salespeople are problem solvers who seek to develop long-term relationships with customers

Four Sales Channels


Over-the-counter selling: personal
selling conducted in retail and some wholesale locations in which customers come to the seller place of business

Field selling: sales presentations made at

prospective customers homes or businesses on a face-to-face basis

Four Sales Channels


Telemarketing: promotional presentation
involving the use of the telephone on an outbound basis by salespeople or on an inbound basis by customers who initiate calls to obtain information and place orders

Inside selling: performing the functions of field


selling but avoiding travel-related expenses by relying on phone, mail, and electronic commerce to provide sales and product service for customers on a continuing basis

I. Designing & Recruiting Sales Personnel


3 Ways to Design Sales Force
1. Expatriates 2. Local Nationals 3. Third Country Nationals

Advantages/Disadvantages of all 3:
1. Expatriates (declining)
Advantages
Used most when products are highly technical or requires a lot of information in order to sell Familiar with headquarters policies, procedures Opinions/Ideas are valued more by home office

I. Designing & Recruiting Sales Personnel


Disadvantages
High cost Cultural and legal barriers Difficult to recruit many highly skilled will not re-locate overseas

Other type of Expatriates


Virtual Expatriates Created by the internet and other advanced types of communications, where they manage operations in other countries, but do not move to that country.

I. Designing & Recruiting Sales Personnel


2. Local Nationals
Advantages

Disadvantages Home office does not see as the experts in the field Seen as not being familiar with home office procedures, policies Not the experts on the products Difficult to recruit most skilled and knowledgeable Recruiting the best may mean taking away from another company or competitor this goes against some cultural believes where loyalty is important Crossing Borders 17.3 pg. 521 -Avon calling or not?

Most knowledgeable about culture, legal environments, business structure, distribution networks

I. Designing & Recruiting Sales Personnel


3. Third-Country Nationals
Advantages
If recruited within same area most are familiar with culture, language, how to conduct business

Disadvantages
Host country does not see individual as one of their own Many of the same disadvantages to a smaller scale with the expatriate.

Selecting Sales and Marketing Personnel To select personnel for international marketing positions effectively, management must choose individuals who have the following traits: 1. Maturity 4. Flexibility

2. Emotional Stability

5. Cultural Empathy

3. Breadth of Knowledge
7. Enjoy Travel

6. Energetic and

III. Training Sales Personnel


Types and method of training differs depending upon type of sales structure
1. Expatriates
Focus is on culture, customs, special foreign issues (not on products, selling methods, home office policies..)

2. Local Nationals/Third-County Nationals


Focus on product knowledge More continual training Methods of training need to be adapted to recipients way of learning

Internet is facilitating faster and more efficient learning for all types of sales structures

IV. Motivating Sales Personnel


What motivates people varies from culture to culture
Though some similarities exist in certain cultures, many cultures vary in a number of areas (individual bonuses vs. group bonuses; compensation vs. personal growth, etc)

Designing Compensation Systems


Expatriates
Things to consider
Countries with high taxes, prefer larger expense accounts, fringe benefits (things that are non-taxable) Where the company is multi-national, sales personnel will compare compensation plans from home country to re-assigned country

Compensating Salespeople
Sales Force Compensation Plans Can Both Motivate Salespeople and Direct Their Activities.

Salary

Benefits

Components of Compensation

Bonus

Commission

IV. Motivating Sales Personnel


2. Global Sales Force
Allows for most flexibility in creating compensation plans See dos and donts of global compensation
pg. 532

Preparing U.S. Personnel for Foreign Assignments


Obstacles to overcome
1. Reluctance to accept foreign assignment due to:
Concerns for career and family (most common)
Career fears relate to out of sight, out of mind Family is uprooted in a very different environment

2. Reducing the rate of early returns


Unsuccessful family adjustment is the single most important reason for early returns.

3. Ensuring successful return home


Need to have a personal career plan designed to successfully transition the individual and family back to their home country.

Important Points in Recruiting Sales Personnel & Managers


Important characteristics/skills to look for when recruiting:
Cross-cultural skills
More important in most cases than technical skills

Language skills
Many believe that the more fluent in languages, the more culturally sensitive
Crossing Borders 17.6 pg. 525

Evaluating Salespeople
Expense Reports Sources of Information Sales Report

Call Reports

Work Plan

Annual Territory Marketing Plan

Relationship Marketing
Process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.
Based on the idea that important accounts need focused and continuous attention.

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