Personal Selling

- the process of a sellers person-toperson promotional presentation to a buyer

Nicolette

Salespeople must communicate the advantages of their firms goods and services over those of competitors. They must be able to do the following:
1.

Focus on a customers situation and needs and create solutions that meet those needs.

2. 3.

Follow through and stay in touch before, during, and after a sale. Know the industry and have a firm grasp, not only of their own firms capabilities but also of their competitors abilities.

4.

Work hard to exceed their customers expectations, even if it means going above and beyond the call of duty. Nicolette

The Four Sales Channels

Over-the-Counter Selling Field Selling Telemarketing Inside Selling

Nicolette

Over-the-Counter Selling
- Personal selling conducted in retail and some wholesale locations in which customers come to the sellers place of business.

Nicolette

Field Selling
-Sales

presentations made at prospective customers location on a face-to-face basis.

-Network

Marketing

Nicolette

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

Telemarketing

Outbound Telemarketing

Sales method in which sales personnel place phone calls to prospects and try to include the sale over the phone
Predictive Dialers Autodialing Random-digit dialing

Inbound Telemarketing

Sales method in which prospects call a seller to obtain information, make reservations, and purchase goods and services.

Nicolette

Inside Selling
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Selling by phone, mail and electronic commerce.

Provides customer service

Nicolette

Trends in Personal Selling

In todays complex marketing environment, effective personal selling requires different strategies from those used by salespeople in the past.

Nicolette

Relationship Selling
Regular contacts between sales representatives and customers over an extended period to establish a sustained buyer-seller relationship.
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Nicolette

Consultative Selling
Meeting customer needs by listening to them, understanding their problems, paying attention to details, and following through after the sale.
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Cross-selling- offering multiple goods or services to the same customer

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Nicolette

Team Selling
Selling situation in which several sales associates or other members of the organization are employed to help the lead sales representatives reach all those who influence the purchase decision.
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Virtual sales team- network of strategic partners suppliers and others who recommend a firms goods and services.
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Nicolette

Sales Tasks
Order Processing Creative Selling Missionary Selling

Stephanie

Order Processing
Selling that involves identifying customer needs, pointing them out to customers, and completing orders.
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Creative Selling
Personal selling in which a considerable degree of analytical decision making on the buyers part results in the need for skillful proposals of solutions for the customers needs.
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Missionary Selling
Indirect selling method in which salespeople promote goodwill for the firm by educating customers and providing technical or operational assistance.
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The Sales Process

STEP 7 : Follow up

STEP 6: Closing STEP 5: Handling Objections STEP 4: Demonstration STEP 3: Presentation STEP 2: Approach STEP 1: Prospecting and Qualifying

Managing the Sales Effort

The overall direction and control of the personal selling effort are in the hands of a firms sales managers.

Dan

Sales force management links individual salespeople to general management. The sales management performs seven basic managerial functions:
1. 2.

Recruitment and selection Training

3.
4. 5. 6.

Organization
Supervision Motivation Compensation

7.

Evaluation

Recruitment and Selection

A successful sales career offers satisfaction in all of the following five areas a person generally considers when deciding on a profession:
1. Opportunities for advancement 2. Potential for high earnings

3. Personal satisfaction
4. Job security 5. Independence and variety

Training
To shape new sales recruits into an efficient sales organization, managers must conduct an effective training program.

The principal methods used in sales training are on-the-job training, individual instruction, in-house classes, and external seminars.

Organization
Sales managers are responsible for the organization of the field sales force. General organizational alignments may be based on geography, products, types of customers, or some combination of these factors.

Supervision
Sales managers have differing opinions about the supervision of sales force.

Span of Control refers to the number of sales representatives who report to first-level sales managers.

Motivation
The sales manager is responsible for finding what motivates salespeople to perform their best.

Expectancy theory states that motivation depends on the expectations an individual values.

Sales managers can apply expectancy theory of motivation by following a five-step process:

1.

Let each sales person know in detail what is expected in terms of selling goals, service standards, and other areas of performance.

2.

Make the work valuable by assessing the needs, values, and abilities of each salesperson and then assigning appropriate tasks.
Make the work achievable.

3.

4. Provide immediate and specific feedback, guiding those who need improvement and giving positive feedback to those who do well. 5. Offer rewards each salesperson values, whether it is an incentive as described previously, opportunity for advancement, or a bonus.

Compensation
Sales compensation can be based on a commission, a straight salary, or a combination of both.

Commission is a payment tied directly to the sales Salary is a fixed payment made periodically to an employee.

Evaluation and Control

Sales managers are responsible for setting standards and choosing the best methods for measuring sales performance.
Sales Quotas specified sales and profit targets that the firm expects salespeople to achieve.

In todays marketing environment, other measures such as customers satisfaction, profit contribution, share of product-category sales, and customer retention also come in play. This is the result of three factors:
A long-term orientation that results from emphasis on building customer relationships. The fact that evaluations based on the sales volume alone may lead to overselling and inventory problems that may damage customer relationships. The need to encourage sales representatives to develop new accounts, provide customer service, and emphasize new products.

1.

2.

3.

The sales manager must follow a formal system that includes a consistent series of decisions. The system helps the sales manager answer three general questions:
1.

Where does each salespersons performance rank relative to predetermined standards? What are the salespersons strong points? What are the salespersons weak points?

2. 3.

Each salesperson should be judged on the basis of actual performance rather than potential .

Sales managers must judge each salesperson on the basis of sales performance for the entire for the entire period under consideration, rather than for a few particular incidents.
The evaluation should be reviewed by a third party, such as the managers boss or a human resources manager, for completeness and objectivity.

Ethical Issues in Sales

Some people believe ethical problems are inevitable because of the very nature of the sales function.

Sales managers and top executives can do a lot to foster a corporate culture that encourages honesty and ethical behavior.

Here are some characteristics of such a culture:

Employees understand what is expected of them. 2. Open communication. 3. Managers lead by example.
1.

Sales Promotion
marketing activities other than personal selling, advertising, and publicity designed to enhance customer purchasing and dealer effectiveness

Mikee

Consumer-Oriented Sales Promotions

Coupons and Refunds Samples, Bonus Packs, and Premiums Contests and Sweepstakes Specialty Advertising

Coupons and Refunds

Coupon the most widely used form of sales promotion which offers discounts on the purchase price of goods and services Refund cash given back to consumers who purchase for one or more products send in proof of

McDonalds gives coupons to their customers which they can use the next time they visit the fast food chain.

Samples, Bonus Packs, and Premiums

Sampling the free distribution of a product in an attempt to obtain future sales

Hair products like shampoo are common examples of products given as samples to consumers. For example, Head & Shoulders distributes samples in various supermarkets.

Bonus pack specially packaged item that gives the purchaser a larger quantity at the regular price

Head & Shoulders adds 20% more of the regular content of a sachet for the same price.

Premium item given free or at a reduced cost with purchases of other products

When consumers buy Head & Shoulders shampoo, there is a free sachet of Head & Shoulders conditioner attached for free.

Contests and Sweepstakes

Contest sales promotion technique that requires entrants to complete a task, such as solving a puzzle or answering questions in a trivia quiz, for the chance to win a prize

Sweepstake sales promotion technique in prize winners are selected by chance

which

Specialty Advertising
Specialty advertising places the advertisers address, and advertising message on articles that are then distributed to consumers name, useful target

Head & Shoulders gives T-shirts with the name of their company printed on them to help advertise their products.

Trade-Oriented Promotions

Trade Allowances Point-of-Purchase Advertising Trade Shows Dealer Incentives, Contests, and Training Programs

Trade allowance financial incentive offered to wholesalers retailers that purchase or promote specific products

Trade Allowances

and

Point-of-Purchase Advertising
POP advertising display or other promotion located near the site of the actual buying decision

Trade show product exhibition organized by industry associations to showcase goods and services

Trade Shows

trade

Dealer Incentives, Contests, and Training Programs

Push money cash reward paid to retail salespeople for every unit of a product they sell