Management of Personal Selling

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ManagementManagement of Personal Sellingof Personal Selling

Prof. Rushen Chahal


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Personal SellingPersonal Selling

y Personal (one-to-one/one-to-small group)

communication of information designed to

persuade someone to buyy In many companies, personal selling is the

largest single operating expense-- often 8

to 15% of sales.

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When Personal SellingWhen Personal Selling

Works BestWorks Best

The market is concentrated.

The product has a high unit value, is technical innature, and requires a demonstration.

The product can be tailored to an individualcustomers need.

The sale involves a trade-in.

The product is in the introductory stage of the

product life cycle. The organization doesnt have enough money

for adequate ad campaign

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Strengths andWeaknesses ofStrengths andWeaknesses of

Personal SellingPersonal Sellingy Strengths:

It can be adapted for individual customers.

It can be focused on prospective customers.

It results in the actual sale, while most otherforms of promotion are used in moving thecustomer closer to the sale.

y Weaknesses:

It is costly to develop and operate a sales force. It may be difficult to attract high-calibre people.

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Two Kinds of PersonalTwo Kinds of Personal

SellingSelling

y The customers come to thesalespeople.

Mostly involves retail-store selling.

Most salespeople fall into this category.

y The salespeople go to the customers. Usually represent producers or wholesaling

middlemen and sell to business users.

Some outside selling is relying more ontelemarketing.

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CUSTOMERS COME TO

THE SALES PEOPLE

CUSTOMERS COME TO

THE SALES PEOPLE

SALES FORCE GOES TO

THE CUSTOMERS

SALES FORCE GOES TO

THE CUSTOMERS

Inside selling:

across-the-counter;

phone-in orders

Inside selling:

across-the-counter;

phone-in orders

Primarily

retail store selling

Primarily

retail store selling

In-person

sales calls

In-person

sales calls

Inside sales people

contact by mail

or telemarketing

Inside sales people

contact by mail

or telemarketing

Primarily producers and wholesaling

middlemen selling to business users,

but also some:

Producers Household consumers

Retailers Household consumers

Not-for-profit Business users

organizations Household consumers

Primarily producers and wholesaling

middlemen selling to business users,

but also some:

Producers Household consumers

Retailers Household consumers

Not-for-profit Business users

organizations Household consumers

Kinds of

Selling


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Jobs in Personal SellingJobs in Personal Selling

y Professional salesperson engages in a total sellingjob.

Manage their time, territories and customers.

Work closely with customers to support and train.

y Wide variety of sales jobs:

Driver-salesperson

Inside order takers (e.g. retail clerk)

Outside order taker (business development)

Missionary sales (sales support)

Sales engineer

Consultative sales person

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Range ofJobs and Tasks.Range ofJobs and Tasks.

Execute marketing strategies--relationships.

Represent their company. Work with little or no supervision.

Often travel to meet customers.

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Changing Patterns in SalesChanging Patterns in Sales

y the nature of the selling job is changing,reflecting changing market situations

yy selling centresselling centres: many firms have organized

sales teamsyy systems sellingsystems selling: others now offer their

customers a coordinated system andsolutions for their problems

yy global sales teamsglobal sales teamsyy relationship selling:relationship selling: there is considerable

emphasis today on the development ofrelationships with customer

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Changing Patterns (concluded)Changing Patterns (concluded)

yy telemarketingtelemarketing - innovative use of

telecommunications equipment and systems

yy Internet sellingInternet selling and business to business

auctionsyy sales force automation (SFA):sales force automation (SFA): technology has

changed the way many firms sell, relying on

telemarketing and data bases

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The Personal SellingThe Personal Selling

Process (Steps 1 and 2)Process (Steps 1 and 2)1. Prospecting and Qualifying

Identify potential customers.

Qualifying involves determining whether

prospects have the willingness, purchasingpower, and authority to buy.

2. Preapproach to Individual Prospects

Salespeople must learn how buying decisions

are made. Salespeople should also try to find out a

prospects personal habits and preferences.

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The Personal SellingThe Personal Selling

Process (Steps 3 to 5)Process (Steps 3 to 5)3. Presenting the Sales Message: AIDA

Attract the prospects Attention.

Hold the prospects Interest.

Build a Desire for the product. Stimulate the Action of closing the sale.

4. Meet Objections and Close the Sale

Objections help clarify customers concerns.

5. Postsale Services Deal with cognitive dissonance.

Ensure everything happened as it should(delivery).

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PROSPECTINGPROSPECTING PREAPPROACHPREAPPROACH PRESENTATIONPRESENTATIONPOSTSALE

SERVICES

POSTSALE

SERVICES

Identifying:

Profiles

Leads

Records

Qualifying:Capability

Willingness

Identifying:

Profiles

Leads

Records

Qualifying:Capability

Willingness

Information

Habits

Preferences

Information

Habits

Preferences

AIDA:Attention

Interest

Desire

Action

Meet Objections

Close the Sale

AIDA:Attention

Interest

Desire

Action

Meet Objections

Close the Sale

Reduce

dissonance

Buildgoodwill

Reduce

dissonance

Buildgoodwill

The Personal Selling Process


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Sales Force ManagementSales Force Management

y Effective sales force management starts with aqualified sales manager.

y The tasks that take up the bulk of sales executivestime include:

Recruitment and selection (Match candidates withyour needs)

Assimilation and Training

Motivation Compensation

Supervision

Performance evaluation

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Recruitment

andSelection

Recruitment

andSelection

AssimilationAssimilation

TrainingTraining

MotivationMotivation

Compen-

sation

Compen-

sation

Performance

Evaluation

Performance

Evaluation

SupervisionSupervision

The Sales ManagementProcess


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CompensationCompensation

y Straight salary

Works well for new people, new territories.

Good where lengthy negotiations typical.

y Straight commission Strong incentive, direct reward for effort.

Can be hard to control salespeople.

y

A combination plan Most firms do this.

Best of both worlds.

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Performance EvaluationPerformance Evaluation

y Both quantitative and qualitative factorsshould serve as bases for performanceevaluation.

QuantitativeQuantitative bases are specific andobjective.

QualitativeQualitative factors are limited by thesubjective judgement of the evaluators.

y Both inputs (or effort) and outputs (orresults) should be used.

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Management of Personal Selling