C H A P T E R

PERSONAL SELLING AND SALES MANAGEMENT

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Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

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L E A R N I N G O B J E C T I V E S

Personal Selling and Sales Management

LO1 Describe the value added of personal selling.

LO2 Define the steps in the personal selling process.

LO3 Describe the key functions involved in managing a sales force.

LO4 Describe the ethical and legal issues in personal selling.

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Personal Selling

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The Scope and Nature of Personal Selling

Internet Telephone

Face-to-face Teleconference

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Professional Selling as a Career

• People love the lifestyle

• There is a lot of flexibility

• There is a lot of variety in the job

• Can be very lucrative

• Very visible to management and good for promotions

Sales Jobs Website

©Royalty-Free/Corbis

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Not Just Tupperware

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The Value Added by Personal Selling

• Salespeople Provide Information and Advice

• Salespeople Save Time and Simplify Buying

• Salespeople Build Relationships

©Royalty-Free/Corbis

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The Personal Selling Process

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Step 1: Generate and Qualify Leads

Sources of

Leads

Current

Customers

Networking

Events

The

Internet

Trade

Shows

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Generate Leads

Cold calls

Telemarketing

©Royalty-Free/Corbis

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Step 2: Preapproach

Extends the qualification procedure

Set goals for what is to be accomplished

©Royalty-Free/Corbis

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Step 3: Sales Presentation and Overcoming Reservations

The Presentation

Handling Reservations

Klaus Tiedge/Blend Images/Getty Images

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Aligning the Personal Selling Process with the B2B Buying Process

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Step 4: Closing the Sale

• Getting the order

• Often most stressful part of sales process

• A “no” one day may be the foundation for a “yes” another

Dig

ital

Vis

ion

/Ge

tty

Imag

es

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Step 5: Follow-Up

Five Service Quality Dimensions

Reliability

Responsiveness

Assurance

Empathy

Tangibles

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1. Why is personal selling important to an IMC strategy?

2. What are the steps in the personal selling process?

Check Yourself

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Managing the Sales Force

Managing the Sales

Force

Sales force structure

Recruiting and selecting

salespeople

Sales training

Motivating and

compensating salespeople

Evaluating salespeople

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Sales Force Structure

Company sales force

Employees

Established product lines

Manufacturers representatives

(independent agents)

Not employees

Smaller firms

New markets

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Salesperson Duties

Order getter

Order taker

Sales support personnel

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Recruiting and Selecting Salespeople

Personality

Optimism

Resilience Self-

motivation

Empathy

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Recruiting for Success

How does a firm that focuses on a fun product recruit salespeople who exhibit fun?

©Stockbyte/PunchStock

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Sales Training

Selling and negotiation techniques

Products and service knowledge

Technologies used in the selling process

Time and territory management

Company policies and procedures

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Motivating and Compensating Salespeople

Financial rewards Nonfinancial rewards

GRANTLAND® Copyright Grantland Enterprises; wwwgrantlandnet

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A Motivational Convention

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Evaluating Salespeople

• Tied to the reward structure

• Evaluation measures can be either objective or subjective

BananaStock/PictureQuest

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1. What do sales managers need to do to successfully manage their sales force?

2. What is the difference between monetary and nonmonetary incentives?

Check Yourself

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Ethical and Legal Issues in Personal Selling

The Sales Manager and the

Sales Force

The Sales Force and Corporate

Policy

The Salesperson and the

Customer

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Issues for the Sales Force and Corporate Policy

The firm may have a policy to sell goods or services to people who cannot afford them or

to people who should not have them. A

P P

ho

to/C

har

lie R

ied

el

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Issues for the Sales Person and the Customer

Have you ever felt that you were treated unethically by a

salesperson? What happened?

Ro

yalt

y-Fr

ee

/CO

RB

IS

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1. What are three areas of personal selling in which ethical and legal issues are more likely to arise?

Check Yourself