4MD3 Business to Business Marketing

Steve Howse

February 23, 2009

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Steve’s Tips

• Mimicking vs mocking

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PREVIEW OF PERSONAL SELLING

• intro to PS• BM/CM differences - PS• PS as an “interface function”• the PS process• more PS concepts• tight and loose sales leads

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PERSONAL SELLING

• 75% of promotional budget  • face-to-face communication with

individual customers  • the most expensive element  • 4.3 calls required per sale• so use PS only when absolutely

necessary  • even then maximize its effectiveness

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WHY PS DOMINATES BUSINESS PROMOTION

• products more technical and complex• products more often custom designed • negotiation more often needed• customers more often demand PS

• customers fewer, closer, bigger • unit product costs higher

 

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OTHER BM/CM DIFFERENCES - PS

• salespeople must be more proactive  • must act more like consultants  • must act as relationship managers  • must be better at product support  • must interact more with senior people

(cont’d)

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OTHER BM/CM DIFFERENCES – PS (CONT’D)

• salespeople require more sales assistance • must cope with longer purchase process  • must deal with infrequent orders• are less often on commission• enjoy higher status and rewards  • sales force can resist corporate change

more strongly

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PERSONAL SELLING AS AN INTERFACE FUNCTION

• salesperson serves two masters  • often bearer of bad news to both  • feels like an outsider to both  • role ambiguity is high• result can be stress and frustration  • on the plus side…

• on balance, great job for many!

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THE PERSONAL SELLING PROCESS

• prospect organizations • prospect individuals within them• qualify the prospects  • research past purchase behaviour• set up sales visit present and demonstrate

 • handle objections• close the sale  • follow up

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MORE PS CONCEPTS

• team selling• missionary selling• resident salespeople • male salespeople vs. female• the importance of asking questions

(cont’d)

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MORE PS CONCEPTS (CONT’D)

• house accounts• key accounts• industrial showrooms or stores• continuity selling (repeat sales)• cross selling• mirroring the customer’s purchasing

structure

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TIGHT AND LOOSE SALES LEADS

• meaning?• tightness is created during lead generation• how create tight leads?

o ask the prospect to accept an obligationo or to do some work  

•  how create loose leads?o use an incentive

• a mix of tight and loose leads is needed