Personal Selling Defined

Personal selling refers to personal communication with a an audience through paid personnel of an organization or its agents in such a way that the audience perceives the communicators organization as being the source of the message.

Evolution of Personal Selling

Peddlers selling door to door . . . served as intermediaries Selling function became more structured

1800s 1900s 2000s st century, selling continues to develop, As we begin Post-Industrial the 21 Industrial War and Modern becomingRevolution more professional and more relational Revolution Depression Era

Business organizations employed salespeople

Selling function became more professional

Contributions of Personal Selling: Salespeople and Society

Salespeople help stimulate the economy Salespeople help with the diffusion of innovation

Salespeople and the Employing Firm

Salespeople generate revenue Salespeople provide market research and customer feedback Salespeople become future leaders in the organization

Contributions of Personal Selling: Salespeople and the Customer

Salespeople provide solutions to problems Salespeople provide expertise and serve as information resources Salespeople serve as advocates for the customer when dealing with the selling organization

Transaction-Focused vs. Relationship Focused

Transaction-Focused
Short term thinking Making the sale has priority over most other considerations Interaction between buyer and seller is competitive Salesperson is selfinterest oriented

Relationship-Focused
Long term thinking Developing the relationship takes priority over getting the sale Interaction between buyer and seller is collaborative. Salesperson is customer-oriented

Classification of Personal Selling Approaches

Stimulus Response Selling Mental States Selling Need Satisfaction Selling Problem Solving Selling

Stimulus Response Selling

Salesperson Provides Stimuli

Buyer Responses Sought

Continue Process until Purchase Decision

Mental States Selling

Attention

Interest

Conviction

Desire

Action

Need Satisfaction Selling

Uncover and Confirm Buyer Needs

Present Offering to Satisfy Buyer Needs

Continue Selling until Purchase Decision

Problem Solving Selling

Continue Selling until Purchase Decision

Define Problem

Generate Alternative Solutions

Evaluate Alternative Solutions

Consultative Selling
Business Consultant The process of helping customers reach their strategic goals by using the products, service, and expertise of the selling organization.

Strategic Orchestrator

Long-term Ally

The Sales Process: An Overview

Selling Foundations

Initiating Customer Relationships

Selling Strategy

Developing Customer Relationships

Enhancing Customer Relationships

The Sales Process: Selling Foundations

In order to be successful in todays global business environment, salespeople must have a solid relationship building foundation. They must: Be Trustworthy

Behave Ethically
Understand Buyer Behavior Possess Excellent Communication Skills

The Sales Process: Selling Strategy

In order to be successful in todays global business environment, salespeople must also think and act strategically. The must develop strategies for:

Each Sales Call

Each Customer Their Sales Territories
Each strategy is related to the other

The Sales Process

Initiating Customer Relationships
1

Developing Customer Relationships

Enhancing Customer Relationships

Prospecting Adding Value through Follow-up, Preapproach Self-leadership, and Teamwork Presentation Planning Approaching the Customer

Sales Presentation Delivery Earning Customer Commitment

The Nature of Personal Selling

Personal Selling

Paid personal communication that informs customers and persuades them to buy products.

Most adjustable to customer information needs Most precise (targeted) form of promotion methods Most expensive element in promotion mix The potential for high income A great deal of freedom A high level of training A high level of job satisfaction

Personal selling as a career

General Steps in the Personal Selling Process

FIGURE 19.1

Elements of the Personal Selling Process

Prospecting

Developing a list of potential customers

Sales records, trade shows, commercial databases, newspaper announcements, public records, telephone directories, trade association directories Reponses to advertisements with information request forms Referralsrecommendations from current customers

Elements of the Personal Selling Process (contd)

Preapproach (before contacting the customer)

Finding and analyzing information about the prospect

Specific product needs Current use of brands Feelings about available brands Personal characteristics Identifying key decision makers Reviewing account histories and problems Contacting other clients for information Assessing credit histories and problems Preparing sales presentations Identifying product needs

Additional research

Elements of the Personal Selling Process (contd)

Approach

The manner in which a salesperson contacts a potential customer

Purpose is to gather information about the buyers needs and objectives Important to create a favorable first impression and build rapport with prospective customer Referral by another customer to a prospective customer Cold canvass call without prior introduction to the customer Repeat contact based on prior meeting(s) with the potential customer

Typical approaches

Elements of the Personal Selling Process (contd)

Making the Presentation

During the presentation:

Attract and hold the prospects attention. Stimulate interest in the product. Spark a desire for the product. Listen and respond to the prospect questions and comments. Have the prospect touch, hold, or use the product. Use audiovisual technology to heighten the impact of the presentation.

Ways to enhance the presentations effects

Elements of the Personal Selling Process (contd)

Overcoming objections

Anticipate objections and counter them during the presentation Generally, best to handle objections as they arise
Closing is the stage in the selling process when the salesperson asks the prospect to buy the product.

Closing the sale

Elements of the Personal Selling Process (contd)

Closing strategies

Trial closing: asking questions (what, how, or why) that assume the customer will buy the product Asking for a tryout order: low-risk way for customer to try out the product
Determining if the delivery and setup of order was completed to the customers satisfaction Ascertaining the customers future product needs

Following up

Types of Salespeople

Order Getters

The salesperson who sells to new customers and increases sales to current ones Creative selling

Current-customer sales New-business sales

Order Takers

The salesperson who primarily seeks repeat sales

Inside order takers Field order takers

Types of Salespeople (contd)

Support Personnel: sales staff members who facilitate selling but usually are not involved solely with making sales

Missionary salespeople

Support salespersons who assist the producers customers in selling to their own customers Salespersons involved mainly in helping a producers customers promote a product Support salespersons who give technical assistance to a firms current customers

Trade salespeople

Technical salespeople

Management of the Sales Force

Establishing Sales Force Objectives

Objectives tell salespeople what they are to accomplish during a specified time period. Objectives for the total sales force

Sales volume: total units or dollars of product sold for a period of time Market share: unit or dollar percentage share of the total market for a product Profit: dollars or percentage of return on investment (ROI) Quotas: dollars or units sold, or average order size, average number of calls, or ratio of orders to calls by an individual salesperson

Objective for individual salespersons

Management of the Sales Force (contd)

Determining Sales Force Size

Size of sales force affects

compensation methods for salespersons. corale of salespersons. overall sales force management. Dividing the number of sales calls necessary to serve customers by the number of sales calls a salesperson makes annually Adding additional salespersons until the cost of adding one more salespersons equals the additional sales that would be generated by that person

Methods for determining optimal sale force size:

Management of the Sales Force (contd)

Recruiting
Recruiting

and Selecting Salespeople

Developing a list of qualified applicants for sales positions

Establish

a set of qualifications that best match the firms particular sales tasks
Prepare a job description listing specific tasks Analyze successful salespeople among current employees

Sources

of applicants

Other departments in the company Other firms Employment agencies Educational institutions Job ad respondents Employee referrals

Management of the Sales Force (contd)

Training Sales Personnel

What to teach?

The company, its products, or selling methods Newly hired or experienced salespeople, or both In the field, at educational institutions, in company facilities Before or after initial field assignment Frequency, sequencing, and duration of periodic training Sales managers, technical personnel, outside consultants Materials and instructional methods

Whom to train?

When/where to train?

Who will train?

How to train?

Management of the Sales Force (contd)

Compensating Salespeople

Compensation objectives
Attract, motivate, and retain effective salespeople Maintain the desired level of control Provide acceptable levels of income, freedom, and incentive Encourage proper treatment of customers

Management of the Sales Force (contd)

Compensation Plans

Straight salary

Paying salespeople a specific amount per period of time Paying salespeople according to the amount of their sales in a given time period Paying salespeople a fixed salary plus a commission on sales volume

Straight commission

Combination compensation

Management of the Sales Force (contd)

Motivating Salespeople

Motivation should be provided on a continuous basis. Motivational incentives

Enjoyable working conditions Power and authority Job security Opportunities to excel Sales contests Recognition programs Awards (travel, merchandise, and cash)

Motivational methods

Management of the Sales Force (contd)

Managing Sales Territories

Creating sales territories

Based on similar sales potential or requiring about the same amount of work Setting differential commission rates to compensate for differences in the characteristics of territories (density and distribution of customers)

Management of the Sales Force (contd)

Managing Sales Territories (contd)

Routing and scheduling considerations

Geographic size and shape of the territory Number and distribution of customers Sequence of customer calls Routes and distances traveled Minimizing salespersons travel and lodging costs

Management of the Sales Force (contd)

Controlling and Evaluating Sales Force Performance

Sales objectives, determined by the sales manager, stated in terms of

Sales volume Average number of calls per day Average sales per customer Actual sales relative to sales potential Number of new customer orders Average cost per call Average gross profit per customer

Transparency Figure 19C

Major Sales Management Decision Areas

Transparency Figure 19D

Major Types of Sales Force Compensation Methods

Recruitment and Selection Process

Step 1
Planning for Recruitment & Selection

Step 2
Recruitment: Locating Prospective Candidates

Step 3
Selection: Evaluation and Hiring

Job Analysis Job Qualifications Job Description Recruitment & Selection Objec. Recruitment & Selection Strategy

Internal Sources External Sources

Screening Resumes and Applications Initial Interview Intensive Interview Testing Assessment Centers Background Invest. Physical Exam Selection Decision and Job Offer

Planning for Recruitment and Selection

Job Analysis:
Entails an investigation of the tasks, duties, and responsibilities of the job.

Planning for Recruitment and Selection

Job Qualifications:
Refers to the aptitude, skills, knowledge, personal traits, and willingness to accept occupational conditions necessary to perform the job.

Planning for Recruitment and Selection

Job Description:
A written summary of the job containing the job title, duties, administrative relationships, types of products sold, customer types, and other significant requirements.

Planning for Recruitment and Selection

Recruitment and Selection Objectives:
The things the organization hopes to accomplish as a result of the recruitment and selection process. They should be specifically stated for a given period.

Planning for Recruitment and Selection

Recruitment and Selection Strategy:
The plan the organization will implement to accomplish the recruitment and selection objectives. The sales managers should consider the scope and timing of recruitment and selection.

Recruitment: Locating Prospective Candidates

Internal Sources

Employee referral programs Internships Advertisements Private employment agencies Colleges and universities Job fairs Professional societies Computer rosters

External Sources

Selection: Evaluation and Hiring

Screening Resumes and Applications Interviews Testing Assessment Centers Background Investigation Physical Examination Selection Decision and Job Offer

Screening Resumes and Applications

Evidence of job qualifications Work history Salary history Accomplishments Responsibilities Appearance and completeness

Interviews
Types of interviews

Initial Interviews Intensive Interviews Stress Interviews

Locations

Campus Recruiters Location (i.e. Plant Trip) Neutral Site Telephone

Testing: Value and Types

Value

May be used to assist with initial screening May indicate compatibility with job responsibilities May indicate compatibility with organizations culture and personnel Personality Intelligence Psychological Ethical Framework

Types

Testing: Guidelines for Using

Do not attempt to construct tests for the purposes of selecting salespeople

If psychological tests are used, be sure the standards of the American Psychological Association have been met
Use tests that have been based on a job analysis for the particular job in question

Testing: Guidelines for Using

Select a test that minimizes the applicants ability to anticipate desired responses Use tests as part of the selection process, but do not base the hiring decision solely on test results

Background Check

Be wary of firstparty references Radial search referrals might be used Use an interview background check Use the critical incident technique Pick out problem areas

Obtain a numerical scale reference rating Identify an individuals best job Check for idiosyncrasies Check financial and personal habits Get customer

Selection Decision and Job Offer

Evaluate qualifications in order of importance Look for offsetting strengths and weaknesses Rank candidates If none meet qualifications, may extend search May have to offer market bonus (signing bonus) to highly qualified candidates

Legal and Ethical Considerations: Guidelines for Sales Managers

Become familiar with key legislation affecting recruitment and selection

Conduct job analysis with an open mind Job descriptions and job qualifications should be accurate and based on a thoughtful job analysis
All selection tools should be related to job performance