Personal SellingPersonal Selling

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McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Personal Selling

Determining the Role of Personal Selling

How cost effective is each alternative?How cost effective is each alternative?

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

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

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

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

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

Sales Force is a Major Part

Price

• Final price negotiable

• Price provides adequate margin

Product or Service

• Complex goods or services

• Major purchase decisions

• Personal demonstration required

Channels

• Channel short and direct

• Training needed by intermediaries

• Selling needed to push product through

• Intermediaries can provide personal selling

Advertising

• Media do not provide an effective link

• Information cannot be provided by media

• Sparse market reduces advertising economies

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

SurveyingSurveying MapmakingMapmaking

GuidingGuidingFire StartingFire Starting

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

This role is much more casual

Often involves straight rebuying

Order TakingOrder Taking

Essentially a support role

May not actually take the order

Missionary Sales

Missionary Sales

Assesses situation, determines needs

Gets order

Creative Selling

Creative Selling Presents capability of satisfying needs

Personal Selling Responsibilities

Following up and servicing the accountFollowing up and servicing the account

Closing the saleClosing the sale

Demonstrating product capabilitiesDemonstrating product capabilities

Recommending a way to satisfy themRecommending a way to satisfy them

Determining customers’ needs and wantsDetermining customers’ needs and wants

Locating prospective customersLocating prospective customers

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 TraitsDesirable Traits Objectionable TraitsObjectionable Traits

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. No personal 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

AdvertisingAdvertising

Public RelationsPublic Relations

Direct MarketingDirect Marketing

Sales PromotionSales Promotion

The InternetThe Internet

Personal Selling

Personal Selling

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

Creates goodwillCreates goodwill

Involved in communityInvolved in community

Representative of the organizationRepresentative of the organization

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

Personal Selling + Direct Marketing

Personal Selling + Sales Promotion

ResellerReseller

ConsumerConsumer

Sales ForceSales Force

Sales Promotion

Targets

Sales Promotion

Targets

Personal Selling + the Internet

Evaluating the Personal Selling Effort

Characteristics Affecting Performance

The courage to change

The courage to change

Consistent training that

leads to consistent execution

Consistent training that

leads to consistent execution

A clear link between company culture &

value to sales strategies

A clear link between company culture &

value to sales strategies

Rigorous management

processes that drive

performance

Rigorous management

processes that drive

performance

The strength of the field manager

The strength of the field manager

Evaluating Personal Selling

Are communications objectives met?

Are communications objectives met?

Provides good marketing

intelligence?

Provides good marketing

intelligence?

Are follow-up activities

conducted well?

Are follow-up activities

conducted well?

Are promo programs being implemented?

Are promo programs being implemented?

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

OrdersOrders

Sales VolumeSales Volume

MarginsMargins

Customer AccountsCustomer Accounts

Sales CallsSales Calls

Selling ExpensesSelling Expenses

Customer ServiceCustomer Service

Quantitative Measures

Quantitative Measures

Qualitative Measures of Sales Results

Selling SkillsSelling Skills

Sales Related Activities

Sales Related Activities