Professional Documents
Culture Documents
TWENTY-ONE
Irwin/McGraw-Hill
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
Recognize different types of personal selling. Describe the stages in the personal selling process. Specify the functions and tasks in the sales management process. Determine whether a firm should use manufacturers representatives or a company sales force and the number of people needed in a companys sales force. Understand how firms recruit, select, train, motivate, compensate, and evaluate salespeople. Describe recent applications of sales force MARKETING, MARKETING, 6/e 6/e The McGraw-Hill Companies, Inc., 2000 automation.
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
Selling information is a demanding task, even for D&B, which is a master of database management and marketing, with a database of more than 11 million U.S. companies. However, D&B is finding that its market has become more competitive, especially with so much free data via the Internet. D&B employs 600 field salespeople, who must demonstrate how much better off credit managers and marketing executives will be by using D&Bs information.
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
U.S. corporations have significant sales and marketing experience in their work history?
2. About how much does it cost for a manufacturers sales representative to make a single personal sales call? (check one) $100 _____ $150 _____
MARKETING, MARKETING, 6/e 6/e
BERKOWITZ KERIN
4. About what percent of U.S. companies include customer satisfaction as a measure of salesperson performance? (check one) 10% _____ 20% _____
MARKETING, MARKETING, 6/e 6/e
PP21-A How Salespeople Create Value for Customers Identify Identify Creative Creative Solutions Solutions To To Customer Customer Problems Problems
+
Ease Ease The The Customer Customer Buying Buying Process Process
+
Follow-up Follow-up After After The The Sale Sale Is Is Made Made
=
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
PP21-2 How Outside Order-Getting Salespeople Spend Their Time Each Week
30% Face-to-face-selling
23% Waiting/traveling
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
Order Takers
Handle routine product reorders Focus on straight re-buy or simple purchase situations Perform order processing functions Require significant clerical training
Order Getters
Identify new customers and uncover customer needs Focus on new buy and modified re-buy purchase situations Act as creative problem solvers Require significant sales, product, and customer training
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
1. What is the principal difference between an order taker and an order getter? 2. What is team selling?
MARKETING, MARKETING, 6/e 6/e
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
2. Pre-approach
Information sources include personal observation, other customers, and own salespeople.
3. Approach
Gain prospects attention, stimulate interest, and make transition to the presentation.
First impression is critical; gain attention and interest through reference to common acquaintances, a referral, or product demonstration.
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
4. Presentation
5. Close
6. Follow-up
Resolve any problems faced by the customer to ensure customer satisfaction and future sales possibilities.
Irwin/McGraw-Hill
Potential Customers
75
50
25
Leads
MARKETING, MARKETING, 6/e 6/e
BERKOWITZ
Prospects
KERIN HARTLEY
Qualified Prospects
RUDELIUS
Buyers
Irwin/McGraw-Hill
Denial Denial
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
PP21-MM Techniques for Closing 1. 2. 3. Trial close Assumptive close Urgency close
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
PP21-OO Sales Management Process Sales management consists of three interrelated functions: 1. 2. 3.
MARKETING, MARKETING, 6/e 6/e
Sales plan formulation Sales plan implementation Evaluation and control of the salesforce
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
1.
Should the company use its own sales force or should it use independent agents such as manufacturers representatives? If the decision is made to employ company salespeople, then should they be organized according to geography, customer type, or product/service? How many company salespeople should be employed?
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
2.
3.
PP21-5 Break-Even Chart for Comparing Independent Agents and a Company Sales Force
Company selling cost
($ thousands) 3,500 3,000 2,500 2,000 1,500 1,000 500 0 5 10 15 20 25 Company sales force selling cost Independent agent and company sales force selling are equal at $25 million in sales 35 40 45 Company sales ($millions)
KERIN HARTLEY RUDELIUS
30
50
55
60
BERKOWITZ
Irwin/McGraw-Hill
Individual (salespeople)
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
Individual salespeople
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
Individual (salespeople)
MARKETING, MARKETING, 6/e 6/e
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
LOW
3 Attractiveness. Accounts may offer good opportunityif sales organization can overcome its weak position. Account management policy. Emphasize a heavy sales organization position or shift resources to other accounts if stronger sales organization position impossible. 4 Attractiveness. Accounts offer little opportunity, and sales organization position is weak. Account management policy. Consider replacing personal calls with telephone sales or direct mail to service accounts. Consider dropping account.
ACCOUNT OPPORTUNITY
HIGH
LOW
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
PP21-SS Sales Plan Implementation The three tasks involved in implementing a sales plan are: 1. Salesforce recruitment and selection, 2. Salesforce training, and 3. Salesforce motivation and compensation.
MARKETING, MARKETING, 6/e 6/e
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
230%
Female 50%
Male 50%
Hispanic
274%
White 80%
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
PP21-UU Salesforce Motivation & Compensation Research on salesperson motivation suggests that: 1. a clear job description, 2. effective sales management practices, 3. a sense of achievement, and 4. proper compensation, incentives, or rewards will produce a motivated salesperson.
MARKETING, MARKETING, 6/e 6/e
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill
3 Plans for Compensating Salespersons 1. Straight salary 2. Straight commission 3. Salary plus commission
BERKOWITZ
KERIN
HARTLEY
RUDELIUS
Irwin/McGraw-Hill
Example Example of of Product or Product or Service Service Fast Fastfood foodcounter counter clerk clerk Consumer Consumerproducts products Pharmaceutical Pharmaceutical products products Industrial Industrialproducts products and services and services Automobiles Automobiles Insurance Insurance
Irwin/McGraw-Hill
Inside Insideorder order Order taking Order taking taker taker Outside Outsideorder order Maintain accounts Maintain accounts taker taker Missionary Missionary salesperson salesperson Sales Sales engineer engineer Inside Insideorder order getter getter Educate Educatebuyers buyers Technical Technicalknowledge knowledge Creating Creatingsales sales
Outside Outsideorder order Hunting Huntingprospects; prospects; getter creative getter creativeselling selling
MARKETING, MARKETING, 6/e 6/e
BERKOWITZ KERIN
PP21-YY Concept Check 1. 2. 3. What are the three types of selling objectives? What three factors are used to structure sales organizations? How does emotional intelligence tie to adaptive selling?
BERKOWITZ KERIN HARTLEY RUDELIUS Irwin/McGraw-Hill