PERSONAL

SELLING
AND SALES
MANAGEMENT

Definition of Personal Selling

Personalselling
1)twowayflowofcommunication
2)betweenabuyerandseller
3)afacetofaceorrealtimeencounter

Whyarefacetofaceandtwowayimportant?

Advantages of Personal Selling

Providesadetailedexplanation
ordemonstrationofproduct

Messagecanbevariedtofitthe
needsofeachprospectivecustomer

Canbedirectedtospecific
qualifiedprospects

Instantfeedback

Personalpersuasioncanbeused

A
goodsalesmancanget
youtobuyicein
winter

When to Use Personal Selling

Product
Product has
has aa high
high value
value
Product
Product is
is custom
custom made
made
Product
Product is
is technically
technically complex
complex
There
There are
are few
few customers
customers
Customers
Customers are
are concentrated
concentrated
Selling
Selling image,
image, not
not product
product

Creating Value Through Salespeople

Relationship Selling
buildingtiestothecustomer,basedona
salespersonsattentionandcommitmentto
customerneedsovertime.

Six stages of Personal Selling

1)Prospecting
2)Preapproach
3)Approach
4)Presentation
5)Close
6)FollowUp

Personal Selling: Prospecting

Prospect- possible customer
Qualified Prospect-customer who has desire,
means and power to decide
Cold Canvassing- seller initiated contact of,potential
customers without advance warning.

Personal Selling:
Pre- Approach & Approach
2) Pre-approach-Gathering information
(when to call, income level, risk tolerance)
3) Approach-First meeting
(Physical impressions highly importantappearance, timeliness, confidence)

Personal Selling:Presentation
A) Stimulus-Response Format (suggestive selling)
keep suggesting items until the buyer responds, like the
McDonalds order taker
B) Formula Selling Format more formal and planned,
like a telemarketer
Canned Selling Presentation
Memorized, standardized message
conveyed to every prospect.
Works when seller is a novice or
does not know the buyer well

Personal Selling: Presentation

Need-Satisfaction FormatLet the customer do the talkingSalesman probes, listens then suggests,
like a financial planner
Adaptive Selling- pro-active but selective
presentation of offerings,
based on pre-approach data
Consultative Selling re-active presentation
for problem solution

Personal Selling: Presentation

Handling Objections
Acknowledge and Convert the Objectionuse the objection as a reason to buy (expensive)
Postpone
hold off answer because next info will convince buyer
(complicated)
Agree and Neutralize
show the objections insignificance (side effects)
Denial
refute objection with clear facts

Personal Selling: Close

Trial Close-Can I put you down for blue or green?

Assumptive Close-ask about delivery or warranty choices.
Urgency Close-Offer valid for today only.
Final Close-Buyer initiated acceptance of the sale.

Personal Selling: Follow-Up

Address concerns with delivery and installation,
so todays customer becomes tomorrows
qualified prospect or referral source

Sales Force Motivation

Compensation
Straight Salary Compensation Plan
Straight Commission Compensation Plan
Combination Compensation Plan

Sales Force Evaluation

Quantitative Assessments sales quotas
easy but ignores selling environment

Qualitative Assessments behavioral evaluations

attitude
attention
product knowledge
selling skills
appearance and professionalism

Personal Selling

Personalsellinginvolvesthe
Personalsellinginvolvesthe
twowayflowofcommunication
twowayflowofcommunication
betweenabuyerandseller,oftenina
betweenabuyerandseller,oftenina
facetofaceencounter,designedto
facetofaceencounter,designedto
influenceapersonsorgroups
influenceapersonsorgroups
purchasedecision.
purchasedecision.

Personal Selling Process

The
The personal
personal selling
selling process
process consists
consists
of
of six
six stages:
stages: (1)
(1) prospecting,
prospecting,
(2)
(2) preapproach,
preapproach, (3)
(3) approach,
approach,
(4)
(4) presentation,
presentation, (5)
(5) close,
close, and
and
(6)
(6) follow-up.
follow-up.

Adaptive Selling

Adaptive
Adaptive selling
selling involves
involves adjusting
adjusting
the
the presentation
presentation to
to fit
fit the
the selling
selling
situation,
situation, such
such as
as knowing
knowing when
when to
to
offer
offer solutions
solutions and
and when
when to
to ask
ask for
for
more
more information.
information.

Consultative Selling

Consultative
Consultative selling
selling focuses
focuses on
on
problem
problem identification,
identification, where
where the
the
salesperson
salesperson serves
serves as
as an
an expert
expert on
on
problem
problem recognition
recognition and
and resolution.
resolution.