PERSONAL SELLING AND SALES MANAGEMENT
CHAPTERTWENTY-ONEPERSONAL SELLING ANDSALES MANAGEMENTIrwin/McGraw-HillMARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
AFTER READING THIS CHAPTER YOU SHOULDBE 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 usemanufacturer’s representatives or a company salesforce and the number of people needed in acompany’s sales force. Understand how firms recruit, select, train, motivate,compensate, and evaluate salespeople. Describe recent applications of sales forceMARKETING,MARKETING, 6/e6/e The McGraw-Hill Companies, Inc., McGraw-Hill
PP21-AA Dun & Bradstreet: Selling Information in theInformation Age Selling information is a demanding task, even forD&B, which is a master of database managementand marketing, with a database of more than 11million U.S. companies.However, D&B is finding that its market hasbecome more competitive, especially with somuch free data via the Internet.D&B employs 600 field salespeople, who mustdemonstrate how much better off creditmanagers and marketing executives will be byusing D&B’s information.MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-BB Personal Selling Personal selling involves a two-way flow ofcommunication between a buyer and seller,often in a face-to-face encounter, designed toinfluence a person’s or group’s purchasedecision. With advances in telecommunications,however, personal selling takes place over thetelephone, through video teleconfer- encingand interactive computer links betweenbuyers and sellers.MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-CC Sales Management Sales management involves planning the sellingprogram and implementing and controlling thepersonal selling effort of the firm. Numerous tasks are involved in managing personalselling including:-- setting objectives;-- organizing the sales force;-- recruiting, selecting, training, andcompensating salespeople; and-- evaluating the performance of individualsalespeople.MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-1a Personal Selling and Sales Management Quiz1. What percentage of chief executive officers in the 1,000 largestU.S. corporations have significant sales and marketingexperience in their work history?2. About how much does it cost for a manufacturer’s salesrepresentative to make a single personal sales call? (check one) 100 200 300 150 250 350MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-1b Personal Selling and Sales Management Quiz3.“A salesperson’s job is finished when a sale is made.”True or False? (circle one)TrueFalse4. About what percent of U.S. companies include customersatisfaction as a measure of salesperson performance? (checkone)10%20%50%20%40%60%MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-DD Pervasiveness of Personal Selling 16 million people are employed in salespositions in the U.S.Virtually every occupation that involvescustomer contact has an element of personalselling.About 20% of the CEOs in the 1,000 largestU.S. firms have significant sales andmarketing experience in their work history.Selling often serves as a stepping-stone to topmanagement.MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-A How Salespeople Create Value for Customers IdentifyIdentify CreativeCreative SolutionsSolutions ToTo CustomerCustomer ProblemsProblems EaseEase TheThe CustomerCustomer BuyingBuying ProcessProcess Follow-upFollow-up AfterAfter TheThe SaleSale IsIs MadeMadeCustomerCustomer ValueValueMARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-EE Relationship SellingRelationship selling is the practiceof building ties to customers basedon a salesperson’s attention andcommitment to customer needsover time.MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-FF Partnership SellingWith partnership selling, buyers and sellerscombine their expertise and resources to createcustomized solutions; commit to joint planning;and share customer, competitive, and companyinformation for their mutual benefit, andultimately the customer.MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-GG Concept Check1. What is personal selling?2. What is involved in salesmanagement?MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-HH Order Taking (order 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 takersMARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-II Order Getter An order getter sells in a conventional sense and identifiesprospective 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.MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-2 How Outside Order-Getting Salespeople Spend TheirTime Each WeekHow Salespeople Spend Their TimeAdministrative tasks14%Telephone selling 20%13% Service calls30% Face-to-face-selling23% Waiting/travelingMARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-B Comparing Order Takers and Order GettersBasis ofComparisonOrder TakersOrder GettersObjectiveHandle routine productreordersIdentify new customersand uncover customer needsPurchasesituationFocus on straight re-buyor simple purchase situationsFocus on new buy andmodified re-buy purchasesituationsActivityPerform order processingfunctionsAct as creative problemsolversTrainingRequire significant clericaltrainingRequire significant sales,product, and customertrainingMARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-JJ Concept Check1. What is the principaldifference between anorder taker and an ordergetter?2. What is team selling?MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-C Stages in the Personal Selling eFollow-upFollow-upMARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-3a Stages and Objectives of the Personal SellingProcessSearch for andqualify prospects1. ProspectingStart of the selling process;prospects produced throughadvertising, referrals, and coldcanvassing.2. Pre-approachGather informationand decide how toapproach the prospect.Information sources includepersonal observation, othercustomers, and own salespeople.3. ApproachGain prospect’sattention, stimulateinterest, and maketransition to thepresentation.First impression is critical;gain attention and interestthrough reference to commonacquaintances, a referral, orproduct demonstration.MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-3b Stages and Objectives of the Personal SellingProcess4. Presentation5. CloseBegin converting aprospect into a customerby creating a desire forthe product or serviceObtain a purchasecommitment from theprospect and create acustomer.Ensure that thecustomer is satisfiedwith the productor service.6. Follow-upMARKETING,MARKETING, 6/e6/eBERKOWITZKERINHARTLEYRUDELIUSDifferent 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.Salesperson asks for the purchase;different approaches include thetrial close and assumptive close.Resolve any problems facedby the customer to ensurecustomer satisfaction andfuture sales possibilities.Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
PP21-D Lead Buyer Erosion CurvePotential Customers100%7550250LeadsMARKETING,MARKETING, ectsRUDELIUSBuyersIrwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
PP21-KK Presentation FormatsStimulus-Response FormatFormula Selling FormatNeed Satisfaction Format-- adaptive selling-- consultative sellingMARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-E Techniques for Handling eeandandneutralizeneutralizeHandlingHandling bjectionMARKETING,MARKETING, oreIgnorethetheobjectionobjectionIrwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
PP21-MM Techniques for Closing1.2.3.MARKETING,MARKETING, 6/e6/eTrial closeAssumptive closeUrgency l The McGraw-Hill Companies, Inc., 2000
PP21-NN Concept Check1.What are the six stages in the personalselling process?2.What is the distinction between a leadand a qualified prospect?3.Which presentation format is mostconsistent with the marketingconcept? Why?MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-OO Sales Management ProcessSales management consists ofthree interrelated functions:1.Sales plan formulation2.Sales plan implementation3.Evaluation and control of thesalesforceMARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-4 The Sales Management ProcessSales planformulationSales PlanImplementationSetting objectivesOrganizing thesales forceDeveloping accountmanagement policiesSales force recruitment and selectionSales force trainingSales force motivation andcompensationMARKETING,MARKETING, 6/e6/eBERKOWITZKERINHARTLEYRUDELIUSEvaluation andcontrol of thesales forceQuantitative assessmentBehavioral evaluationIrwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
PP21-PP 3 Questions related to Organizing the Sales Force1.Should the company use its own sales forceor should it use independent agents such asmanufacturer’s representatives?2.If the decision is made to employ companysalespeople, then should they be organizedaccording to geography, customer type, orproduct/service?3.How many company salespeople should beemployed?MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-5 Break-Even Chart for ComparingIndependent Agents and a Company Sales ForceCompanyselling cost( thousands)3,500Independent agentselling cost3,0002,5002,000Company salesforce selling cost1,5001,000Independent agent and companysales force selling are equal at 25 million in sales50005MARKETING,MARKETING, 6/e6/e1015BERKOWITZ2035 40 45Company sales ( w-Hill The McGraw-Hill Companies, Inc., 2000
PP21-6a Organizing the Sales force by Customer, Product, andGeographyCustomer OrganizationGeneral SalesManagerSales ManagerAuto IndustrySales ManagerFarm and constructionequipmentDistrictSales ManagerDistrictSales ManagerSales ManagerGovernment andmilitaryDistrictSales ManagerIndividual(salespeople)MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-6b Organizing the Sales force by Customer, Product, andGeographyProduct organizationGeneral SalesManagerDivisional SalesManagerProduct AEastern RegionalSales ManagerDistrictSales ManagerDivisional SalesManagerProduct BWestern RegionalSales ManagerDistrictSales ManagerDistrictSales ManagerIndividualsalespeopleMARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-6c Organizing the Sales force by Customer, Product, andGeographyGeographical OrganizationGeneral SalesManagerEastern RegionalSales ManagerDistrictSales ManagerDistrictSales ManagerWestern RegionalSales ManagerDistrictSales ManagerIndividual(salespeople)MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-QQ Major Account Management Major account management, or key accountmanagement is a variation of the customerorganizational structure. It involves the practice ofusing team selling to focus on important customers soas to build mutually beneficial, long-term,cooperative relationships. This approach, which often assigns companypersonnel to a customer account, results in “customerspecialists” who can provide exceptional service.MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-RR Account Management Policies Account management policies specify:a. who salespeople should contact,b. what kinds of selling and customer serviceactivities should be engaged in, andc. how these activities should be carried out. These policies might state:a. which individuals in a buying organization shouldbe contacted,b. the amount of sales and service effort thatdifferent customers should receive, andc. the kind of information salespeople should collectbefore or during a sales call.MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-7 Account Management Policy GridCOMPETITIVE POSITION OF SALES ORGANIZATIONACCOUNT OPPORTUNITYHIGHHIGHLOWLOW1Attractiveness. Accounts offer good opportunitybecause they have high potential and sales organization has a strong position.Account management policy. Account should receive high level of sales calls and service to retainand possibly build accounts.2Attractiveness. Accounts are somewhat attractivebecause sales organization has a strong position,but future opportunity is limited.Account management policy. Accounts should receive moderate level of sales and service to maintain current position of sales organization.MARKETING,MARKETING, 6/e6/eBERKOWITZKERINHARTLEY3Attractiveness. Accounts may offer goodopportunityif sales organization can overcome itsweak position.Account management policy. Emphasize a heavysales organization position or shift resources toother accounts if stronger salesorganization position impossible.4Attractiveness. Accounts offer little opportunity,and sales organization position is weak.Account management policy. Consider replacingpersonal calls with telephone sales or direct mailto service accounts. Consider dropping account.RUDELIUSIrwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
PP21-SS Sales Plan ImplementationThe three tasks involved inimplementing a sales plan are:1. Salesforce recruitment andselection,2. Salesforce training, and3. Salesforce motivation andcompensation.MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-TT Emotional IntelligenceEmotional intelligence is the ability tounderstand one’s own emotions andthe emotions of people with whom oneinteracts on a daily basis. Thequalities are important for adaptiveselling and may spell the differencebetween effective and ineffectiveorder-getting salespeople.MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-8 U.S. Salesforce Composition and ChangeSales forcecompositionby sexSales force compositionby racial/ethnic groupGrowth in sales positionsby racial/ethnic groupsince 1983African- HispanicAmerican8% ING, %Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000
PP21-UU Salesforce Motivation & CompensationResearch on salesperson motivationsuggests that:1. a clear job description,2. effective sales managementpractices,3. a sense of achievement, and4. proper compensation, incentives, orrewards will produce a motivatedsalesperson.MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-VV 3 Plans for Compensating Salespersons3 Plans for Compensating Salespersons1. Straight salary2. Straight commission3. Salary plus commissionMARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-F The Sales Job Influences the Pay ellingSkillSkillInsideInsideorderorder Order takingOrder takingtakertakerOutsideOutsideorderorder Maintain accountsMaintain alproductsproductsandservicesand ranceInsuranceOutsideOutsideorderorder ttercreativesellingsellingMARKETING,MARKETING, 6/e6/eExampleExample ofofProductorProduct /McGraw-Hill The McGraw-Hill Companies, Inc., 2000
PP21-WW Salesforce AssessmentSalesforce assessment involvesdetermining whether or not salesobjectives were met and whetheraccount management policies werefollowed. Two types of assessmentmeasures are used:1. Quantitative measures2. Behavioral measuresMARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-XX Salesforce Automation Salesforce automation is clearly changing how selling isdone and how salespeople are managed. The objectiveof salesforce automation is to increase productivity whilesimultaneously decreasing costs. Computer software and hardware are integral parts ofthe sales management process. Salesforce automationcost about 2,500- 5,000 or more per salesperson.However, one company, Tandem Computers, reportedthat it has experienced savings of 2 million annually byits 1,700 national and international field salesrepresentatives.MARKETING,MARKETING, ll The McGraw-Hill Companies, Inc., 2000
PP21-YY Concept Check1.What are the three types of sellingobjectives
Irwin/McGraw-Hill MARKETING, 6/eMARKETING, 6/e BERKOWITZ KERIN HARTLEY RUDELIUS The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill C H A P T E R T W E N T Y .
personal selling is the only organisational function that still espouses contact (direct or indirect) with customers, where concluding that sale is the desired outcome. Personal selling Personal selling. 1 1 .6 .1 Personal selling and the customer. personal selling and , , , the .
covering three key areas of selling skills. It also provides an assessment of a salesperson's selling style against three well-established behavioral concepts in the sales literature--adaptive selling, relationship selling and customer-oriented selling (Figure 1). Figure 1. SCQ concept model of sales process CUSTOMER-ORIENTED SELLING
Least Square (OLS) method. Fi ndings from this study showed that personal selling had significant relationship with . Personal selling is a presentation by the firm's sales force for the purpose of matching, sales and building customer relationship (Kotler and Armstrong, 2010). The need for personal selling activities has increased
Sales Management The word sales management is a combination of two words- sales and management. Sales is the art of planning in the mind of another a motive which will induce . management. 7. Motivate the Sales Force -One of the core objectives of sales management is to motivate the sales force. Selling is a very stressful task, achieving .
Grant Cardone Training SELLING-selling is for me-selling impacts everyone-determines survivability-you have to be able to convince others of your opinion-selling is used everyday by everyone-selling is a way of life -you need to know how to negotiate in life-getting other people to like you is selling-you want to get to other people to please you
The Selling Process Relationship selling is a multi-stage process. Unfortunately, most treatments of relationship selling focus on the duration, rather than the creation. Instead of paring relationship selling as a polar opposite to traditional selling, it should be a transformation of the traditional selling process.
Nature and Scope of Sales Management 5 PREFACE TO THE FIRST EDITION It gives me great please to present the First Edition of the book on "Personal Selling and Sales Management" for the benefit of students, teachers and young executives engaged in sales and marketing of products and services. The book covers the full syllabi on Sales
1.2 Sales Management: Marketing Management and the New Economy 1.3 Sales Management 1.3.1 What is Sales Management? 1.3.2 Sales Management and the Environment 1.3.3 Sales and Other Departments 1.4 The Scope of Sales Management 1.4.1 Characteristics of the Sales Job 1.4.2 Categories of Salespersons 1.4.3 The Role of a Salesperson
