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PERSONAL SELLING AND

SALES MANAGEMENT

CHAPTER

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AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

1. Discuss the nature and scope of personal selling and sales management in marketing.

2. Identify the different types of personal selling.

3. Explain the stages in the personal selling process.

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AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

4. Describe the major functions of sale management.

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SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND

SALES MANAGEMENT

• Nature of Personal Selling and Sales Management

• Selling Happens Almost Everywhere

Personal Selling

Sales Management

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FIGURE 20-1 FIGURE 20-1 Personal selling and sales management quiz

1. 20%

2. $350

3. False

4. 60%

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SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND

SALES MANAGEMENT

• Creating Customer Value Through Salespeople: Relationship and Partnership Selling

• Personal Selling in Marketing

Relationship Selling

Partnership Selling (or Enterprise Selling)

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FIGURE 20-A FIGURE 20-A How salespeople create value for customers

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THE MANY FORMS OFPERSONAL SELLING

• Order Taking

Outside Order Takers

Inside Order Takers, Order Clerks, or Salesclerks

Inbound Telemarketing

• Order Getting

Outbound Telemarketing

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FIGURE 20-B FIGURE 20-B Comparing order takers with order getters

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FIGURE 20-2 FIGURE 20-2 How outside order-getting salespeople spend their time each week

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THE MANY FORMS OFPERSONAL SELLING

• Customer Sales Support Personnel

Missionary Salespeople

Team Selling

Conference Selling

Sales Engineer

Seminar Selling

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THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS

• Personal Selling Process

• Prospecting

Lead

Qualified Prospect

Cold Canvassing

Prospect

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FIGURE 20-3 FIGURE 20-3 Stages and objectives of the personal selling process

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FIGURE 20-C FIGURE 20-C Stages in the personal selling process

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Trade Show ExhibitionWhat stage in the personal selling process and

what is its purpose?

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THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS

• Preapproach

• Approach

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THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS

• Presentation

Stimulus-Response Format

Formula Selling Format

• Stimulus-Response Presentation

• Suggestive Selling

• Formula Selling Presentation

• Canned Selling Presentation

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THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS

• Presentation

Need-Satisfaction Format

• Need-Satisfaction Presentation

• Adaptive Selling

• Consultative Selling

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THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS

• Presentation

Handling Objections

• Acknowledge and Convert the Objection

• Postpone

• Agree and Neutralize

• Accept the Objection

• Denial

• Ignore the Objection

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FIGURE 20-D FIGURE 20-D Techniques for handling objections

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THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS

• Close

Trial Close

Assumptive Close

Urgency Close

• Follow-Up

Final Close

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THE SALES MANAGEMENT PROCESS

Sales Plan

Setting Objectives

• Sales Plan Formulation: Setting Direction

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FIGURE 20-4 FIGURE 20-4 The sales management process

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ETHICS AND SOCIAL RESPONSIBILITY ALERT

The Ethics of Asking CustomersAbout Competitors

Slide 20-39

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THE SALES MANAGEMENT PROCESS

• Sales Plan Formulation: Setting Direction

Organizing the Salesforce

• Own Salesforce vs. Independent Agents

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FIGURE 20-5 FIGURE 20-5 Break-even chart for comparing independent agents and a company salesforce

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THE SALES MANAGEMENT PROCESS

• Sales Plan Formulation: Setting Direction

Organizing the Salesforce—Structure

• Geography

• Customer

• Product

Major (Key) Account Management

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FIGURE 20-6 FIGURE 20-6 Organizing the salesforce by customer, product, and geography

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FIGURE 20-6A FIGURE 20-6A Organizing the salesforce by geography

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FIGURE 20-6B FIGURE 20-6B Organizing the salesforce by customer

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FIGURE 20-6C FIGURE 20-6C Organizing the salesforce by product

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THE SALES MANAGEMENT PROCESS

• Sales Plan Formulation: Setting Direction

Organizing the Salesforce—Size

• Workload Method

• Developing Account Management Policies

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FIGURE 20-7 FIGURE 20-7 Account management policy grid grouping customers according to the level of opportunity and a firm’s competitive sales position

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THE SALES MANAGEMENT PROCESS

• Sales Plan Implementation: Putting the Plan into Action

Salesforce Recruitment and Selection

• Job Analysis

• Job Description

• Emotional Intelligence

Salesforce Training

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FIGURE 20-8 FIGURE 20-8 U.S. sales force composition and change

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THE SALES MANAGEMENT PROCESS

• Sales Plan Implementation: Putting the Plan into Action

Salesforce Motivation and Compensation

• Straight Salary Compensation Plan

• Straight Commission Compensation Plan

• Combination Compensation Plan

Salesforce Training

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THE SALES MANAGEMENT PROCESS

• Salesforce Evaluation and Control: Measuring Results

Quantitative Assessments

• Sales Quota

Behavioral Evaluation

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THE SALES MANAGEMENT PROCESS

• Salesforce Automation and Customer Relationship Management

Salesforce Automation (SFA)

Salesforce Computerization

Salesforce Communication

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Personal Selling

Personal selling involves the two-way flow of communication between a buyer and seller, designed to influence a person’s or group’s purchase decision, usually in face-to-face communication between the sender and receiver.

Personal selling involves the two-way flow of communication between a buyer and seller, designed to influence a person’s or group’s purchase decision, usually in face-to-face communication between the sender and receiver.

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Sales Management

Sales management involves planningthe selling program and implementing and controlling the personal selling effort of the firm.

Sales management involves planningthe selling program and implementing and controlling the personal selling effort of the firm.

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Relationship Selling

Relationship selling is the practice of building ties to customers based on a salesperson’s attention and commitment to customer needs over time.

Relationship selling is the practice of building ties to customers based on a salesperson’s attention and commitment to customer needs over time.

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Partnership Selling

Partnership selling is the practice whereby 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. Also called enterprise selling.

Partnership selling is the practice whereby 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. Also called enterprise selling.

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Order Taker

An order taker processes routine orders or reorders for products that were already sold by the company.

An order taker processes routine orders or reorders for products that were already sold by the company.

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Order 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 on customers’ use of a product or service.

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 on customers’ use of a product or service.

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Missionary Salespeople

Missionary salespeople are sales support personnel who do not directly solicit orders but rather concentrate on performing promotional activities and introducing new products.

Missionary salespeople are sales support personnel who do not directly solicit orders but rather concentrate on performing promotional activities and introducing new products.

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Sales Engineer

A sales engineer is a salesperson who specializes in identifying, analyzing, and solving customer problems and brings know-how and technical expertise to the selling situation but often does not actually sell products and services.

A sales engineer is a salesperson who specializes in identifying, analyzing, and solving customer problems and brings know-how and technical expertise to the selling situation but often does not actually sell products and services.

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Team Selling

Team selling is the practice of using an entire team of professionals in selling to and servicing major customers.

Team selling is the practice of using an entire team of professionals in selling to and servicing major customers.

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Personal Selling Process

The personal selling process consists of sales activities occurring before and after the sale itself, consisting of six stages:(1) prospecting, (2) preapproach,(3) approach, (4) presentation, (5) close, and (6) follow-up.

The personal selling process consists of sales activities occurring before and after the sale itself, consisting of six stages:(1) prospecting, (2) preapproach,(3) approach, (4) presentation, (5) close, and (6) follow-up.

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Stimulus-Response Presentation

Stimulus-response presentation is a presentation format which assumes that given the appropriate stimulus by a salesperson, the prospect will buy.

Stimulus-response presentation is a presentation format which assumes that given the appropriate stimulus by a salesperson, the prospect will buy.

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Formula Selling Presentation

Formula selling presentation is a presentation format that consists of information that must be provided inan accurate, thorough, and step-by-step manner to inform the prospect.

Formula selling presentation is a presentation format that consists of information that must be provided inan accurate, thorough, and step-by-step manner to inform the prospect.

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Need-Satisfaction Presentation

Need-satisfaction presentation is a presentation format that emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers.

Need-satisfaction presentation is a presentation format that emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers.

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Adaptive Selling

Adaptive selling is a need-satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information.

Adaptive selling is a need-satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information.

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Consultative Selling

Consultative selling is a need-satisfaction presentation format that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution.

Consultative selling is a need-satisfaction presentation format that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution.

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Sales Plan

A sales plan is a statement describing what is to be achieved and where andhow the selling effort of salespeople isto be deployed.

A sales plan is a statement describing what is to be achieved and where andhow the selling effort of salespeople isto be deployed.

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Major Account Management

Major account management is the practice of using team selling to focuson important customers so as to build mutually beneficial, long-term, cooperative relationships. Also calledkey account management.

Major account management is the practice of using team selling to focuson important customers so as to build mutually beneficial, long-term, cooperative relationships. Also calledkey account management.

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Workload Method

The workload method is a formula-based method for determining the size of a salesforce that integrates the number of customers served, call frequency, call length, and available selling time to arrive at a figure for the salesforce size.

The workload method is a formula-based method for determining the size of a salesforce that integrates the number of customers served, call frequency, call length, and available selling time to arrive at a figure for the salesforce size.

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Account Management Polices

Account management policies specify whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out.

Account management policies specify whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out.

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Emotional Intelligence

Emotional intelligence is the ability to understand one’s own emotions and the emotions of people with whom one interacts on a daily basis.

Emotional intelligence is the ability to understand one’s own emotions and the emotions of people with whom one interacts on a daily basis.

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Sales Quota

A sales quota contains specific goals assigned to a salesperson, sales team, branch sales office, or sales district fora stated time period.

A sales quota contains specific goals assigned to a salesperson, sales team, branch sales office, or sales district fora stated time period.

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Salesforce Automation

Salesforce automation (SFA) is theuse of computer, information, communication, and Internet technologies to make the sales function more effective and efficient.

Salesforce automation (SFA) is theuse of computer, information, communication, and Internet technologies to make the sales function more effective and efficient.