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Personal Selling

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Personal Selling
Determining the Role of Personal Selling

What
What information
information must
must be
be exchanged
exchanged
between
between firm
firm and
and potential
potential customer?
customer?

What
What are
are the
the alternative
alternative ways
ways to
to carry
carry out
out
these
these communications
communications objectives?
objectives?

How
How effective
effective is
is each
each alternative
alternative in
in carrying
carrying
out
out the
the needed
needed exchange?
exchange?

How
How cost
cost effective
effective is
is each
each alternative?
alternative?
If Sales Force is a Major Part of IMC

Product or
Price Channels Advertising
Service

• Channel short
• Complex • Final price • Media do not
and direct
goods or negotiable provide an
services • Training effective link
• Price provides
needed by
• Major adequate • Information
intermediaries
purchase margin cannot be
decisions • Selling needed provided by
to push product media
• Personal
through
demonstration • Sparse market
required • Intermediaries reduces
can provide advertising
personal selling economies
Stages of Personal Selling Evolution

Selling activity limited to


Provider
order-taking and delivery

Attempting to persuade
Persuader
customer to buy

Seeking out buyers perceived to


Prospector
have a need

Buyers identify problems to be


Problem-solver
met by goods

Seller determines buyer needs


Procreator
and fulfills them
New Roles for Salespeople

Surveying
Surveying Mapmaking
Mapmaking

Fire
Fire Starting
Starting Guiding
Guiding
Customer Relationship Management

Relationship Marketing:
The organization’s effort to
develop a long-term, cost-
effective link with individual
customers for mutual benefit.
SAP Software Assists CRM
Keeping a Customer
Types of Sales Jobs

Assesses situation, determines needs


Creative
Creative
Presents capability of satisfying needs
Selling
Selling
Gets order

This role is much more casual


Order
Order
Taking
Taking Often involves straight rebuying

Essentially a support role


Missionary
Missionary
Sales
Sales May not actually take the order
Personal Selling Responsibilities

Locating
Locating prospective
prospective customers
customers

Determining
Determining customers’
customers’ needs
needs and
and wants
wants

Recommending
Recommending aa way
way to
to satisfy
satisfy them
them

Demonstrating
Demonstrating product
product capabilities
capabilities

Closing
Closing the
the sale
sale

Following
Following up
up and
and servicing
servicing the
the account
account
Sales People Have Many Duties
Test Your Knowledge
With the evolution of personal selling, an individual
salesperson's job requirements may include:
A) Determining customers' needs and wants
B) Demonstrating the capabilities of the firm
C) Following up and servicing the account
D) Locating prospective customers
E) All of the above
Traits of Effective Salespeople

1. Ego strength: a healthy self-esteem that


allows one to bounce back from rejection.
2. Sense of urgency: wanting to get it done
now.
3. Ego drive: a combination of
competitiveness and self esteem.
4. Assertiveness: the ability to be firm, lead
the sales process, and get one’s point
across confidently.
5. Risk-taking: willing to innovate and take a
chance.
Traits of Effective Salespeople

6. Sociable: outgoing, friendly, talkative, and


interested in others.
7. Abstract reasoning: ability to understand
concepts and ideas.
8. Skepticism: a slight lack of trust and
suspicion of others.
9. Creativity: the ability to think differently.
10. Empathy: the ability to place oneself in
someone else’s shoes.
Traits Buyers Like and Dislike

Desirable
Desirable Traits
Traits Objectionable
Objectionable Traits
Traits

1. Unprepared
1. Knowledgeable
2. Uninformed
2. Empathizes
3. Aggressive
3. Well organized
4. Undependable
4. Prompt
5. No follow through
5. Follows through
6. Presumptive
6. Has solutions
7. Walk-ins
7. Punctual
8. Gabbers
8. Hard working
9. Problem avoiders
9. Energetic
10. No personal respect
10. Honest
Pros and Cons of Personal Selling

Advantages Disadvantages
Two-way interaction Messages may be
with prospect inconsistent

Message can be Possible management-


tailored to recipient sales force conflict

Prospect isn't likely Cost is often


to be distracted extremely high

Seller involved in purchase Reach may be


decision very limited

Source of research
Potential ethical problems
information
Personal Selling + Other Tools

Advertising
Advertising

Public
Public Relations
Relations

Personal
Personal
Direct
Direct Marketing
Marketing
Selling
Selling

Sales
Sales Promotion
Promotion

The
The Internet
Internet
Personal Selling + Advertising
Test Your Knowledge
By servicing an account and by cooperating and
empathizing with clients, salespersons are engaging in
_____ activities on behalf of their firm.
A) Sales promotion
B) Advertising
C) Public relations
D) Direct marketing
E) Telemarketing
Personal Selling + PR

Rep
Rep is
is often
often best
best source
source of
of PR
PR

Representative
Representative of
of the
the organization
organization

Involved
Involved in
in community
community

Creates
Creates goodwill
goodwill
Personal Selling + Direct Marketing
Personal Selling + Sales Promotion

Reseller
Reseller
Sales
Sales
Promotion
Promotion Consumer
Consumer
Targets
Targets
Sales
Sales Force
Force
Personal Selling + the Internet
Evaluating the Personal Selling Effort
Characteristics Affecting Performance

A
A clear
clear link
link
between
between
The
The courage
courage company
company
to
to change
change culture
culture & &
value
value to
to sales
sales
strategies
strategies

Rigorous
Rigorous Consistent
Consistent
The
The strength
strength management
management training
training that
that
of
of the
the field
field processes
processes leads
leads to
to
manager
manager that
that drive
drive consistent
consistent
performance
performance execution
execution
Evaluating Personal Selling

Provides
Provides good
good Are
Are follow-up
follow-up
marketing
marketing activities
activities
intelligence?
intelligence? conducted
conducted well?
well?

Are
Are promo
promo Are
Are
programs
programs being
being communications
communications
implemented?
implemented? objectives
objectives met?
met?
Test Your Knowledge
The ability of the sales force to feed back information
regarding competitive programs and customer
reactions contributes to the promotional program by
fulfilling which evaluative criterion?
A) Attainment of communications objectives
B) Program implementation
C) Follow-up activities
D) Providing market intelligence
E) None of the above
Quantitative Measures of Sales Results

Orders
Orders

Sales
Sales Volume
Volume

Margins
Margins
Quantitative
Quantitative
Measures
Customer
Customer Accounts
Accounts
Measures
Sales
Sales Calls
Calls

Selling
Selling Expenses
Expenses

Customer
Customer Service
Service
Qualitative Measures of Sales Results

Selling
Selling Skills
Skills

Sales
Sales Related
Related
Activities
Activities