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9 C H A P T E R N I N E Chapter Nine Personal Selling and M arketing Sales Process Evolution of Personal Selling Use Personal Selling W hen... Salesforce Objectives Building Relationships Prospecting Planning the Sales Cal l Presenting Overcoming Objections Obtaining Commitment Long-term Relationship s Cross-functional Plann ing Sales Specialists Supporting Selling Sales Force Control Sales Forecasting Forecasting Methods Sales Quotas Sales Force Technology Performance Evaluation menu Personal Selling Marketing Management J. Paul Peter James H. Donnelly, Jr. 7 th Edition SECTION 1 McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
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Page 1: Chap 009 Ppt 3107

9

C H A P T E R N I N E

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

menu

Personal Selling

MarketingManagement

J. Paul Peter

James H. Donnelly, Jr.

7th Edition

SECTION 1

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Page 2: Chap 009 Ppt 3107

9

Personal Selling and Marketing

menu

Through personal selling a salesperson dispenses knowledge to buyers.

Through personal selling, a salesperson negotiates price and terms for specialty goods and commercial products.

Salespeople act as a source of market intelligence for management and company information for clients.

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 3: Chap 009 Ppt 3107

9

Sales Process

menu

Two basic factors:

1. The objectives the salesperson is trying to achieve while engaged in selling activities

2. The sequence of stages or steps the salesperson should follow to achieve the objectives

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 4: Chap 009 Ppt 3107

9

Evolution of Personal Selling

menu

Production Sales Marketing Partnering

TimePeriod

Objective

Orientation

Role of Salesperson

Activities of Salespeople

Before1930

Makingsales

Short-termseller needs

Provider

Taking orders;Deliveringgoods

1930-1960

Makingsales

Short-termseller needs

Persuader

Aggressivepersuasion

1960-1990

Satisfyingneeds

Short-termcustomerneeds

Problemsolver

Matchingproductsand needs

After1990

BuildingRelationships

Long-termneeds of both

Valuecreator

Creatingnewalternatives

FIGURE 9-3

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 5: Chap 009 Ppt 3107

9

Use Personal Selling when . . .

menu

. . . products are . . .

• New and different

• Customizable

• Technically complex

• Expensive and require negotiation

• Installable

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 6: Chap 009 Ppt 3107

9

Salesforce Objectives

menu

Provide information – especially in the case of new products

Persuasade – distinguishing attributes, creating repeat customers, maximizing sales as a percent of presentations, etc.

After-sale service – delivery, installation, resolve concerns

Assure customer satisfaction

Maximize benefits and margin

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 7: Chap 009 Ppt 3107

9

Building Relationships with Sales

menu

PROSPECTING

PLANNING THE SALES CALL

PRESENTING

RESPONDING TO OBJECTIONS

OBTAINING COMMITMENT

BUILDING LONG-TERM RELATIONSHIP

FIGURE 9-1

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 8: Chap 009 Ppt 3107

9

Prospecting

menu

The process of locating potential customers . . .

A. Lead – a candidate to whom a sale can be made—target of prospecting process,

B. Random lead generation – mass appeals that require a high number of contacts to generate qualified leads, and

C. Selected-lead searching – uses existing contact to generate new ones—often called referrals . . .

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 9: Chap 009 Ppt 3107

9

Planning the Sales Call

menu

1. Research and know your prospect

2. Know your product and product line thoroughly

3. Know your competitor’s products and product line

4. Know the market for your product(s) and the needs they satisfy

5. Schedule time with the prospect

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 10: Chap 009 Ppt 3107

9

Presenting

menu

• Be well prepared and set a goal for your presentation

• Develop a checklist of items for discussion

• Schedule an appointment

• Put your contacts at ease

• Strive to make a good impression

• Adapt your style to the prospect

• Work toward your goal

• Schedule follow-up to achieve a sale

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 11: Chap 009 Ppt 3107

9

Overcoming Objections

menu

Expect objections to occur at any time, especially during efforts to secure appointments, during the presentation, during attempts to obtain a commitment, and during the after-sale follow-up

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 12: Chap 009 Ppt 3107

9

Obtaining Commitment

menu

• Moving toward commitment begins with a scheduled presentation.

• Know why a purchase will benefit your prospect.

•Ask for commitment (the order)– some trainers say, “As early and often.”

• An experienced salesperson knows when and how to ask for commitment.

•Follow-up with a clear, mutually acceptable action plan.

•Be persistent.

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 13: Chap 009 Ppt 3107

9

Long-term Relationships

menu

1. Establish and maintain a prospect and customer database.

2. Monitor orders to deliver on-time, on-budget.

3. Ensure appropriate use of your product.

4. Provide customers ongoing guidance and support.

5. Analyze customer feedback and respond to anticipate needs and problems.

6. Assure customer satisfaction through attention and response.

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 14: Chap 009 Ppt 3107

9

Cross-functional Selling

menu

Master the benefits of cross-functional selling.

1. Improved sales productivity – both more effective and efficient with delegated tasks.

2. More flexibility and quicker decisions – especially good for small runs of tailored products and customer problem solving.

3. Better decisions – more expertise, better informed alternatives.

4. Increased customer satisfaction – energy, flexibility, commitment and follow-up.

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 15: Chap 009 Ppt 3107

9

Sales Specialists

menu

Missionary salespeople – focus on detailing existing products and introducing new ones. (e.g.: Pharmaceuticals)

Technical sales specialists – support the field sales staff by providing technical assistance and client counsel, when appropriate.

Cross-functional sales team – blend the talents and knowledge of functional areas to better meet client needs.

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 16: Chap 009 Ppt 3107

9

Supporting Selling

menu

Firms provide . . .

• Efficient and effective sales tools, continuous training, and adequate advertising support.

• Efficient follow-up, delivery and reorder systems.

• Equitable compensation to reward performance.

• Adequate supervision and evaluation of performance for continual improvement.

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 17: Chap 009 Ppt 3107

9

Sales Force Control

menu

Sales managers control sales forces by . . .

• Forecasting sales accurately.

• Establishing territories and quotas that benefit the firm and the sales person mutually.

• Analyzing expenses and realigning to improve sales results.

• Motivating individual sales persons, and

• Compensating performance for satisfaction and improvement.

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 18: Chap 009 Ppt 3107

9

Sales Forecasting

menu

1. Used to establish quotas

2. Used to plan the personal selling efforts and other types of promotional activities

3. Used to budget expenses

4. Used to plan and coordinate production, logistics, inventories, personnel and so forth.

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 19: Chap 009 Ppt 3107

9

Forecasting Methods

menu

Jury of executive method – combines and averages view of top management from various departments

Sales force composite –the sales force becomes the jury

Customer expectations – asking customer how much they expect to purchase and by what date

Time-series analysis – using past data to forecast future sales

Correlation analysis – analyzing dependent and independent variables driving sales volume

Other quantitative functions – growth functions and simulation models

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 20: Chap 009 Ppt 3107

9

Sales Quotas

menu

Sales management assigns minimum sales goals in the form of quotas to . . .

. . . provide incentives for salespeople.

. . . provide a quantitative standard for performance measurement.

. . . evaluate and control the efforts of the sales force.

. . . assist individual with personal goal setting.

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 21: Chap 009 Ppt 3107

9

Sales Force Technology

menu

Selected technology can improve sales performance. These elements top the list.

Cell phones - 89%

E-Mail – 85%

Presentation Software – 85%

Desktop PCs – 68%

Notebook Computers – 63%

Contact Management Software – 55%

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 22: Chap 009 Ppt 3107

9

Performance Evaluation

menu

Effort-Oriented Measures

Number of sales call made

Number of MRO calls made

Number of complaints handled

Number of checks on resellers stocks

Uncontrollable lost job time

Number of inquiries followed up

Number of demonstrations completed

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 23: Chap 009 Ppt 3107

9

Performance Evaluation

menu

Results-Oriented Measures

Sales volume

Sales volume as a percentage of quota

Sales profitability

Number of new accounts

Number of stockouts

Number of distributors participating in programs

Number of lost accounts

Number of customer complaints

Distributor sales-inventory ratios

From Ingram, LaFroge and Schwepker

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 24: Chap 009 Ppt 3107

9

Performance Incentives

menu

Positive feedback

Company praise

Bonus

Salary increase

Pay for performance for specific new ideas

Paid educational allowance

Earned time off

Stock options

Fringe benefits

Vested Retirement Plan

Profit SharingFrom Churchill, Ford and Walker

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1

Page 25: Chap 009 Ppt 3107

9

The AuthorsJ. Paul Peter, Ph.D.University of Wisconsin – Madison

James H. Donnelly, Jr., Ph.D.University of Kentucky – Lexington

Click image to go to author’s web site

Click on the book to go to the book site

PowerPoint design by Lance Fuhrer, MBAPowerPoint content by Larry Fuhrer, MBA, MBA

Keller Graduate School of Management of DeVry University

Marketing Management7th Edition – McGraw-Hill

Click image to go to author’s web site

menu

Chapter Nine

Personal Selling and Marketing

Sales Process

Evolution of Personal Selling

Use Personal Selling When...

Salesforce Objectives

Building Relationships

Prospecting

Planning the Sales Call

Presenting

Overcoming Objections

Obtaining Commitment

Long-term Relationships

Cross-functional Planning

Sales Specialists

Supporting Selling

Sales Force Control

Sales Forecasting

Forecasting Methods

Sales Quotas

Sales Force Technology

Performance Evaluation

Performance Incentives

The Authors

SECTION 1


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