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Management
Nature of Personal Selling
The term salesperson covers a wide spectrum of positions from:
– Order taker (department store salesperson)
– Order getter (someone engaged in creative selling)
– Missionary salesperson (building goodwill or educating
buyers)
Involves Two-Way, Personal Communication Between Salespeople
and Individual Customers Whether:
face to face,
by telephone,
through video conferencing,
or by other means.
The Role of the Sales Force
Represent the
Company to
Customers to Produce
Company Profit
Sales Force
Serves as a Critical Link
Between a Company and its Customers Since They:
Represent Customers
to
the Company to
Produce Customer
Satisfaction
The Role of the Sales Force
Flexibility Builds
• Identify best Relationships
prospects • Long term
• Adapt to situations • Assure buyers
• Engage in dialogue receive appropriate
services
• Solves customer’s
problems
Personal Selling Limitations
Step
Step1.1. Prospecting
Prospectingand
and Step
Qualifying Step5.
5. Handling
HandlingObjections
Objections
Qualifying
Step
Step 2.
2. Pre-approach
Pre-approach
Step
Step 6.
6. Closing
Closing
Step
Step3.
3. Approach
Approach
Step
Step7.
7. Follow-Up
Follow-Up
Step
Step4.
4.Presentation/
Presentation/
Demonstration
Demonstration
Alternative Steps:
Find ’em
Find ’em
Grab ‘em
Grab ‘em
Show ‘em
Show ‘em
Answer ‘em
Answer ‘em
Sell ‘em
Sell ‘em
Keep ‘em
Keep ‘em
Sales Management
Setting Organizing
objectives Planning Organizing activities
Recruit,
Motivate, select,
evaluate, train,
& control develop,
Controlling Directing
manage, &
motivate
Organizing Sales Activities
Sales
Sales Territor
Territory:
y:
•• Geographic
Geographic divisions
divisions
•• Customer
Customer types
types
•• Product
Product lines
lines
•• Selling
Selling task
task
Directing the Sales Force
• Recruiting and selecting
• Training & develop
• Compensating
• Motivating
Compensation
Compensation Methods
Straight
salary or
wage
Salary plus Straight
commission commission
Quota-bonus Commission
plan with draw
Evaluation and Control
• Required reports
• Measurement
against plan or
sales standards
• Expense control
• Productivity
• New account
development
Ethical Issues
• Kickbacks, bribes
and “gifts”
• Price discrimination
• Cheating on
expense accounts
• Misrepresentation
Distribution Channel Design
and Management
What is a Distribution Channel?
P C
R O
O N
D S
U DISTRIBUTION U
C M
E E
R R
Typical Channels of
Distribution
ANUFACTURE ONSUME
R R
GENT
ETAILER
ETAILER
HOLESALER
Conventional Distribution Channel vs.
Vertical Marketing Systems
Conventional Vertical
marketing marketing
channel channel
Manufacturer
Manufacturer
Wholesaler
Wholesaler
Retailer Retailer
Consumer Consumer
Vertical Marketing Systems
• Corporate systems - total ownership
Intensive
Intensive
Distribution
Distribution
Exclusive
Exclusive Distribution
Distribution Distribution
Distribution Intensity
Intensity
Selective
Selective
Distribution
Distribution
Distribution
Distribution Channel
Channel
Functions
Functions
Information
Information
Transfer
Transfer Communication
Communication
Payments
Payments Negotiation
Negotiation
Physical
Physical
Distribution
Distribution Ordering
Ordering
Risk
Risk Taking
Taking Financing
Financing
Physical Distribution
Inventory
Inventory Order
Control OrderProcessing
Processing
Control Received
Received
When
Whento
toorder
order Processed
How Processed
Howmuch
muchto
toorder
order Shipped
Shipped
Physical
Distribution
Transportation Functions Warehousing
Warehousing
Rail, Water, Number
NumberNeeded
Needed
Trucks, Air, Where
Where
Pipeline, Internet What
WhatType
Type
Materials
MaterialsHandling
Handling
Moving
MovingProducts
ProductsInto,
Into,
Within,
Within,and
and
Out
Outof
ofWarehouses
Warehouses
Developing Distribution
Tactics
Selecting
Selecting Channel
Channel Partners
Partners
Managing
Managing the
the Channel
Channel of
of Distribution
Distribution
Channel
ChannelLeader
LeaderPower
Power
Reward
Reward or
or
Economic
Economic Legitimate
Legitimate Coercive
Coercive
Power
Power Power
Power Power
Power
Distribution
Distribution Channels
Channels &
& the
the Marketing
Marketing Mix
Mix
Channel Relationships
• Cooperation
• Conflict
• Power
– Coercive
– Expert
– Legitimate
Evolution
• Physical distribution
• Logistics
• Supply Chain Management