PERSONAL SELLING AND SALES MANAGEMENT - .-- recruiting, selecting, training, and compensating...
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21-1 2000 McGraw-Hill Ryerson Limited
C H A P T E R T W E N T Y - O N E
PERSONAL SELLING ANDSALES MANAGEMENT
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AFTER READING THIS CHAPTER YOU SHOULDAFTER READING THIS CHAPTER YOU SHOULDBE ABLE TO:BE ABLE TO:
Recognize different types of personal selling.
Describe the stages in the personal selling process.
Specify the functions and tasks in the salesmanagement process.
Determine whether a firm should use manufacturersrepresentatives or a company salesforce and thenumber of people needed in a companys salesforce.
Understand how firms recruit, select, train, motivate,compensate, and evaluate salespeople.
Describe recent applications of salesforce automation.
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Dun & Bradstreet: Selling Information in the Information AgeDun & Bradstreet: Selling Information in the Information Age
Selling information is a demanding task, even forD&B, which is a master of database managementand marketing, with a database of companiesthat is unrivalled.
However, D&B is finding that its market hasbecome more competitive, especially with somuch free data via the Internet.
D&Bs field salespeople must demonstrate howmuch better off credit managers and marketingexecutives will be by using D&Bs information.
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Personal SellingPersonal Selling Personal selling involves a two-way flow of
communication between a buyer and seller,often in a face-to-face encounter, designed toinfluence a persons or groups purchasedecision.
With advances in telecommunications,however, personal selling takes place over thetelephone, through video teleconferencing andinteractive computer links between buyersand sellers.
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Sales ManagementSales Management Sales management involves planning the selling
program and implementing and controlling the personalselling effort of the firm.
Numerous tasks are involved in managing personalselling including:
-- setting objectives;
-- organizing the salesforce;
-- recruiting, selecting, training, and
compensating salespeople; and
-- evaluating the performance of individual
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PP21-1a Personal Selling and Sales Management QuizPP21-1a Personal Selling and Sales Management Quiz
1. About how much does it cost for a manufacturers sales
representative to make a single personal sales call? (check one)
$100 _____ $200 _____ $300 _____
$150 _____ $250 _____ $350 _____
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PP21-1b Personal Selling and Sales Management QuizPP21-1b Personal Selling and Sales Management Quiz
2.A salespersons job is finished when a sale is made.
True or False? (circle one)
3. About what percent of companies include customer
satisfaction as a measure of salesperson performance?
10% _____ 20% _____ 50% _____
20% _____ 40% _____ 60% _____
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Pervasiveness of Personal SellingPervasiveness of Personal Selling
More than 1 million people are employed insales positions in Canada.
Virtually every occupation that involvescustomer contact has an element of personalselling.
Many executives in major companies haveheld sales positions at some time in theircareers.
Selling often serves as a stepping-stone to topmanagement.
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How Salespeople Create Value for CustomersHow Salespeople Create Value for Customers
Identify Creative Solutions To Customer Problems Identify Creative Solutions To Customer Problems
Ease The Customer Buying Process Ease The Customer Buying Process
Follow-up After The Sale Is Made Follow-up After The Sale Is Made
Customer ValueCustomer ValueCustomer Value
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Relationship SellingRelationship Selling
Relationship selling is the practiceof building ties to customers basedon a salespersons attention andcommitment to customer needsover time.
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Partnership SellingPartnership Selling
With partnership selling, buyers and sellers
combine their expertise and resources to create
customized solutions; commit to joint planning;
and share customer, competitive, and company
information for their mutual benefit, and
ultimately the customer.
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Concept CheckConcept Check
1. What is personal selling?
2. What is involved in sales
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Order Taking (Order Taking (order takerorder taker))
An order taker processes routine orders or reordersfor products that were already sold by the company.
The primary responsibility of order takers is topreserve an ongoing relationship with existingcustomers and maintain sales.
Types of order takers include:
-- outside order takers
-- inside order takers
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OrderOrder Getter Getter An order getter sells in a conventional sense and identifies
prospective customers, provides customers with information,persuades customers to buy, closes sales, and follows up onthe customers use of a product or service.
Order getters can also be inside (an auto salesperson) oroutside (a D&B salesperson).
Order getting involves a high degree of creativity, customerempathy and is typically required for selling complex ortechnical products with many options, so considerableproduct knowledge and sales training are necessary.
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How Salespeople Spend Their Time
PP21-2 How Outside Order-Getting Salespeople Spend Their PP21-2 How Outside Order-Getting Salespeople Spend Their Time Each Week Time Each Week
Selling over the phone
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Comparing Order Takers and Order Comparing Order Takers and Order GettersGetters
Objective Handle routine product Identify new customersreorders and uncover customer needs
Purchase Focus on straight re-buy Focus on new buy andsituation or simple purchase situations modified re-buy purchase
Activity Perform order processing Act as creative problemfunctions solvers
Training Require significant clerical Require significant sales,training product, and customer
Basis ofBasis ofComparison Comparison Order Takers Order Takers Order Order Getters Getters
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Concept CheckConcept Check
1. What is the principal differencebetween an order taker and anorder getter?
2. What is team selling?
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Stages in the Personal Selling ProcessStages in the Personal Selling Process
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PP21-3a Stages and Objectives of the Personal Selling PP21-3a Stages and Objectives of the Personal Selling Process Process
Search for and qualify prospects
Start of the selling process; prospects produced through advertising, referrals, and coldcanvassing.
Gather information and decide how to approach the prospect.
Information sources includepersonal observation, othercustomers, and own salespeople.
Gain prospects attention, stimulate interest, and make transition to the presentation.
First impression is critical;gain attention and interest through reference to commonacquaintances, a referral, orproduct demonstration.
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PP21-3b Stages and Objectives of the Personal Selling PP21-3b Stages and Objectives of the Personal Selling Process Process
Begin converting aprospect into a customerby creating a desire forthe product or service
Different presentation formats arepossible; however, involving thecustomer in the product or servicethrough attention to particular needsis critical; important to dealprofessionally and ethnically withprospect skepticism, indifference,or objections.
Obtain a purchasecommitment from theprospect and create acustomer.
Salesperson asks for the purchase; different approaches include the trial close and assumptive close.
Ensure that thecustomer is satisfiedwith the productor service.
Resolve any problems facedby the customer to ensurecustomer satisfaction andfuture sales possibilities.
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Presentation FormatsPresentation Formats
Formula Selling Format
-- adaptive selling
-- consultative selling
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Techniques for Handling ObjectionsTechniques for Handling Objections