Transcript Chapter 18, Personal Selling and Sales Management

Marketing
8th Canadian Edition
Powerpoints prepared by:
Victor Bilodeau
Grant MacEwan University - School of Business
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Personal Selling and
Sales Management
© 2011 McGraw-Hill Ryerson Ltd. All rights reserved.
Learning Objectives
After reading this chapter, you 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.
4.Describe the major functions of sales management.
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Julie Robertson
iLearning Specialist
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PERSONAL SELLING
AND SALES MANAGEMENT
‣ Julie Robertson: iLearning Sales Specialist with
McGraw-Hill Ryerson
‣ “I enjoy working with various people...”
‣ “...I take the time to get to know my customers, to
understand them and their needs.”
‣ “... I do my best to make sure each one has a positive
customer experience.”
‣ “...I sell solutions to my customers’ problems.”
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SCOPE AND SIGNIFICANCE OF PERSONAL
SELLING AND SALES MANAGEMENT
‣ Nature of Personal Selling and Sales Management
‣ Pervasiveness of Selling
‣ Personal Selling in Marketing
‣ Creating Customer Value through Salespeople:
Relationship and Partnership Selling
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LO 1
FIGURE 18-1 Personal Selling and Sales Management Quiz
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LO 1
Medtronic
Could this be a salesperson in the operating room?
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LO 1
Learning Review
What is personal selling?
Answer:
Personal selling involves the two-way flow of communication
between a buyer and seller, often in a face-to-face encounter,
designed to influence a person's group's purchase decision.
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LO 1
Learning Review
What is involved in sales management?
Answer:
Sales management involves planning the selling program and
implementing and controlling the personal selling effort of the
firm.
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LO 1
THE MANY FORMS
OF PERSONAL SELLING
‣ Order Taking
‣ Order Getting
‣ Customer Sales Support Personnel
‣ Missionary salespeople
‣ Sales engineer
‣ Team selling
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LO 2
Frito-Lay
Portable communications technology enables Frito-Lay salespeople with
the order taking process
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LO 2
FIGURE 18-2 How outside order-getting salespeople spend
their time each week
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LO 2
Learning Review
What is the principal difference between an order taker and an
order getter?
Answer:
An order taker processes routine orders or reorders for products
that were already sold by the company. Like order takers, order
getters can be inside (an automobile salesperson) or outside (a
Xerox salesperson). An order getter sells in a conventional sense
and identifies prospective customers, provides them with
information, persuades customers to buy, closes the sales, and
does follow-up on their use of the product or service.
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LO 2
Learning Review
What is team selling?
Answer:
Team selling is the practice of using an entire team of
professionals in selling to and servicing major customers.
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LO 2
Trade Show Sales
Popular source for leads and prospects
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LO 3
Approach in Japan
Cultural differences
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LO 3
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
‣ Prospecting
‣ Pre-approach
‣ Approach
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LO 3
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
‣ Presentation
‣ Stimulus-Response Presentation
‣ Formula Selling Presentation
‣ Need-Satisfaction Presentation
‣ Adaptive selling
‣ Consultative selling
‣ Handling Objections
‣ Close
‣ Follow-Up
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LO 3
FIGURE 18-3
Stages and
objectives of the
personal selling
process
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LO 3
Learning Review
What are the six stages in the personal selling process?
Answer:
The six stage of personal selling are: (1) Prospecting, (2) Preapproach, (3) Approach, (4) Presentation, (5) Close, and (6)
Follow-up.
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LO 3
Learning Review
What is the distinction between a lead and a qualified prospect?
Answer:
A lead is the name of a person who may be a possible customer.
A qualified prospect is an individual is a customer who wants the
product, can afford to buy it, and is the decision maker.
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LO 3
Learning Review
Which presentation format is most consistent with the marketing
concept? Why?
Answer:
The need-satisfaction presentation format, which emphasizes
problem solving, is the most consistent with the marketing
concept.
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LO 3
FIGURE 18-4 The sales management process
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LO 4
THE SALES
MANAGEMENT PROCESS
‣ Sales Plan Formulation: Setting Direction
‣ Setting Objectives
‣ Organizing the Salesforce
‣ Key Account Management
‣ Workload method
‣ Developing Account Management Policies
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LO 4
FIGURE 18-5 Break even chart for comparing independent
agents and a company salesforce
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LO 4
FIGURE 18-6
Organizing the sales
force by customer,
product, and geography
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LO 4
FIGURE 18-7 Account management policy grid
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LO 4
THE SALES
MANAGEMENT PROCESS
‣ Sales Plan Implementation: Putting the Plan into
Action
‣ Salesforce Recruitment and Selection
‣ Emotional intelligence
‣ Sales force Training
‣ Salesforce Motivation and Compensation
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LO 4
Mary Kay Cosmetics Top Salesperson
Recognition at its annual sales meeting
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LO 4
THE SALES
MANAGEMENT PROCESS
‣ Salesforce Evaluation and Control
‣ Quantitative Assessments
‣ Sales quota
‣ Behavioural Evaluation
‣ Salesforce Automation and Customer Relationship
Management
‣ Salesforce Automation (SFA)
‣ Salesforce Technology
‣ Salesforce Communication
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LO 4
Using Marketing
Dashboards
Tracking Salesperson
Performance at Moore
Chemical & Sanitation
Supply, Inc.
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LO 4
Salesforce Automation
Changing how selling is
done and how
salespeople are
managed
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LO 4
Learning Review
What are the three types of selling objectives?
Answer:
The three types of selling objectives are: (1) Output - focus on
dollar or unit sales volume; (2) Input - emphasize the number of
sales calls and selling expenses; and (3) Behaviour - specific for
each salesperson and includes his or her product knowledge,
customer service, selling and communication skills.
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LO 4
Learning Review
What three factors are used to structure sales organizations?
Answer:
The three factors used to structure sales organizations are: (1)
Should the company use its own salesforce, or should it use
independent agents? (2) If the decision is made to employ
company salespeople, then should they be organized according
to geography, customer type, or product or service? And (3) How
many company salespeople should be employed?
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LO 4
Learning Review
How does emotional intelligence tie to adaptive selling?
Answer:
The ability to understand emotional intelligence is important for
adaptive selling because it could make the difference between
effective and ineffective order-getting salespeople.
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LO 4
Xerox: Building Customer Relationships
through Personal Selling
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LO 4
VIDEO CASE 18
XEROX: Building Customer Relationships through
Personal Selling
Xerox
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VIDEO CASE 18-1
XEROX: Building Customer Relationships through
Personal Selling
Why was Anne Mulcahy’s experience as a sales
representative and important part of Xerox’s growth
in recent years?
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VIDEO CASE 18-2
XEROX: Building Customer Relationships through
Personal Selling
How did the sales approach change after Mulcahy
became the CEO of Xerox?
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VIDEO CASE 18-3
XEROX: Building Customer Relationships through
Personal Selling
How does Xerox create customer value through its
personal selling process? How does Alison Capossela
provide solutions for Xerox customers?
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VIDEO CASE 18-4
XEROX: Building Customer Relationships through
Personal Selling
Why is the Xerox training program so important to the
company’s success?
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Personal Selling
‣ The two-way flow of communication between a buyer
and seller, often in a face-to-face encounter,
designed to influence a person’s or group’s purchase
decision.
© 2011 McGraw-Hill Ryerson Ltd. All rights reserved.
Sales Management
‣ Planning the personal selling program and
implementing and controlling the personal selling
effort of the firm.
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Relationship Selling
‣ 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
‣ The practice whereby buyers and sellers combine
their expertise and resources to crate 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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Order Taker
‣ Processes routine orders or reorders for products that
were already sold by the company.
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Order Getter
‣ A salesperson who 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
‣ 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 salesperson who specializes in identifying,
analysing, and solving customer problems and who
brings know-how and technical expertise to the selling
situations, but does not actually sell goods and
services.
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Team Selling
‣ Using an entire team of professionals in selling to and
servicing major customers.
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Personal Selling Process
‣ Sales activities occurring before and after the sales
itself, consisting of six stages: (1) prospecting, (2)
pre-approach, (3) approach, (4) presentation, (5)
close, and (6) follow-up.
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Stimulus-Response Presentation
‣ A selling format that assumes the prospect will buy if
given the appropriate stimulus by a salesperson.
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Formula Selling Presentation
‣ Providing information in an accurate, thorough, and
step-by-step manner to inform the prospect.
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Need-Satisfaction Presentation
‣ A selling format that emphasizes probing and listening
by the salesperson to identify needs and interests of
prospective buyers.
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Adaptive Selling
‣ A need-satisfaction sales presentation that involves
adjusting the presentation to fit the selling situation.
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Consultative Selling
‣ Focuses on problem definition, where the salesperson
serves as an expert on problem recognition and
resolution.
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Sales Plan
‣ A statement describing what is to be achieved and
where and how the selling effort of salespeople is to
be deployed.
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Key Account Management
‣ The practice of using team selling to focus on
important customers so as to build mutually
beneficial, long-term, co-operative relationships.
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Workload Method
‣ 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 sales force.
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Account Management Policies
‣ Policies that specify whom salespeople should
contact, what kinds of selling an customer service
activities should be engaged in, and how these
activities should be carried out.
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Emotional Intelligence
‣ 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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Salesforce Automation (SFA)
‣ The use of technology to make the sales function
more effective and efficient.
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Sales Quota
‣ Contains specific goals assigned to a salesperson, sales
team, branch sales office, or sales district for a stated
time period.
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