Lecture 11-personal selling

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Personal Selling

Dr. George BelchSan Diego State University

Promoting Products

• Direct promotion• Through advertising and promotion• Direct-marketing efforts• Dyadic communication allows for

immediate feedback and adjustment• Plays critical role in industrial settings

• Indirect promotion• Through resellers• Through sales people

Determining the Role of Personal Selling

How cost effective is each alternative?

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

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

What information must be exchanged between firm and potential customer?

Stages of Personal Selling Evolution

Selling activity limited to order-taking and delivery

Provider

Attempting to persuade customer to buy

Persuader

Seeking out buyers perceived to have a need

Prospector

Buyers identify problems to be met by goods

Problem-solver

Seller determines buyer needs and fulfills them

Procreator

New Roles for Salespeople

Surveying

Mapmaking

Guiding

Fire Starting

Customer Relationship Marketing

• An organization’s effort to develop a link with individual customers that is• Long-term• Cost effective• Mutually beneficial

Factors in Keeping a Customer

Product Uniqueness

Product Uniqueness

Customer Service

Customer Service

Depth of Product Line

Depth of Product Line

Perceived Price to Value

Proposition

Perceived Price to Value

Proposition

Loyalty/ Reward Program

Loyalty/ Reward Program

Product QualityProduct Quality

Salesperson Classifications

More casual role

Often involves straight rebuying

Order TakingOrder Taking

Essentially a support role

May not actually take orders

Missionary Sales

Missionary Sales

Assess situation, determine needs

Get order

Creative Selling

Creative Selling Present ability to satisfy needs

Personal Selling Responsibilities

Follow up and service the account

Close the sale

Demonstrate product capabilities

Recommend a way to satisfy them

Determine customers’ needs and wants

Locate prospective customers

Traits of Effective Salespeople

Good Communicator

Good Communicator

KnowledgeableKnowledgeable

Results- orientedResults- oriented

Relationship- oriented

Relationship- oriented

Professional Professional

ReliableReliable

Customer-focused

Customer-focused

ThoroughThorough

Problem SolverProblem Solver

ResponsiveResponsive

Traits Buyers Like and Dislike

Desirable Desirable Objectionable Objectionable

1. Knowledgeable2. Empathizes3. Well organized4. Prompt5. Follows through6. Has solutions7. Punctual8. Hard working9. Energetic10.Honest

1. Unprepared2. Uninformed3. Aggressive4. Undependable5. No follow through6. Presumptive7. Walk-ins8. Gabbers9. Problem avoiders10.Lack of respect

Pros and Cons of Personal Selling

Reach may be very limited

Message can be tailored to recipient

Two-way interaction with prospect

Prospect isn't likely to be distracted

Cost is often extremely high

Possible management-sales force conflict

Messages may be inconsistent

Seller involved in purchase decision

Source of research information

Potential ethical problems

Advantages Disadvantages

Personal Selling + Other Tools

Advertising

Public Relations

Direct Marketing

Sales Promotion

The Internet

Personal Selling

Personal Selling + Advertising

Personal Selling + PR

Creates goodwill

Involved in community

Representative of the organization

Rep is often best source of PR

Personal Selling + Direct Marketing

Personal Selling + Sales Promotion

Reseller

Consumer

Sales Force

Sales Promotion

Targets

Sales Promotion

Targets

Personal Selling + the Internet

Evaluating the Personal Selling Effort

• Factors to be considered• Review of all target accounts• Review of all cross-functional selling• Review of specific territory objectives• Knowledge of products, customers, and

customer organizations• Ability to apply this market knowledge• Development of a favorable attitude• Required course corrections

Characteristics Affecting Performance

Strength of the field manager

Management processes thatdrive performance

Clear link between company culture/values to sales strategies

Consistent training

The courage to change

Evaluating Personal Selling

Provision of marketing

intelligence

Provision of marketing

intelligence

Follow-up activities

Follow-up activities

Program implementations

Program implementations

Attainment of communications

objectives

Attainment of communications

objectives

Quantitative Measures of Sales Results

Orders

Sales Volume

Margins

Customer Accounts

Sales Calls

Selling Expenses

Customer Service

Quantitative Measures

Qualitative Measures of Sales Results

Selling SkillsSelling Skills

Sales Related Activities

Sales Related Activities