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Saeed Ur Rehman

Personal Selling

Learning Outcomes:
• Describe the nature of personal selling and changes brought about the business shift to customer orientation • Outline the role of the sales force in each of the marketing mix variables • Trace the process of how sales management has changed • Define the critical role, task, and activities of a field sales manager • Assess sales management training and development activities.

Personal Selling
- Person-to-person communication (prospect)
- Personal selling is a process of • Developing relationships

• Discovering needs
• Communicating features/benefits • Matching products with needs

A process that adds value

• Simplifies the handling of customer’s problems . • Develops. • Allows buyer to act immediately. increases customer confidence. • When correctly used.The role and nature of the business function Sales Managers MUST SUPERVISE The Nature of Personal Selling • Critical aspect of a firm’s promotional strategy. it’s a major factor to generate sales volume • It is the part of promotion that brings the human element into marketing transactions.

. • Salesperson becomes company for customer. customer face to face dealing.Personal Contact puts more influence on buyer compare to advertising message The Nature of Personal Selling Human Element is critical • Salespeople . • Long-lasting partnership is created (Installation Modification) • Salespeople sell more than a product. • Familiarity/friendship develops between salesperson and customer.

fulfilling the commitments • Salespeople sell more than a product. based on trust is essential to sales & marketing success The Nature of Personal Selling The Customer’s Confidence is enhanced • Salespeople play important role to gain or enhance customer confidence. • Personal selling offers the opportunity for salesperson to build a basis of trust and confidence . • Being more professional • Offering relevant products • Delivery timing.Developing long –term relationship.

• Sales reps can get an order.The Nature of Personal Selling Customer Can Act Immediately • Customer can work for a desired action . .store promotion for the product • Personal selling makes it more difficult for customer to delay or forget a promised commitment in future • Opportunity for salesperson to get the required decision on the spot. commit to a purchasing plan for the next quarter. decide on an in.

• Only personal selling can deliver such customer by customer accommodation • Value added or extra benefit that salesperson can provide The value addition is the difference sales success & failure in today’s competitive markets .The Nature of Personal Selling Customers Are Treated As Individual • All preceding of personal selling are important . • Most valuable is rep/customer personal contacts make it possible to customized sales presentation and to handle buyer’s problems complaints on individual basis • Helps to identify each customer’s needs or problem and to respond individually.

Change in Selling The Modern view of personal selling • Salespersons are more than accomplished persuaders & negotiators. training and supervision methods to adapt the new market conditions . • Must build & maintain relationship with customer. • Meet the needs & conditions of individual customers. modern personal selling is creative & flexible. • So. not simply persuasive • Companies have changed their hiring. • Must act as a problem solver.

. promotion of the product as well as pricing. • With change in the role of personal selling. • Sales reps & sales managers are involved in other important aspects of total marketing process like distribution. sales management has become more important to company success. credit.Sales managers have become the critical link between a firm’s marketing strategy and what takes place in the buyer’s office Change in Selling The Modern view of personal selling • General recognition that personal selling is more than just making a sales.

Customer orientation 2.Change in Selling Marketing Concept • Modern marketing concept is based on three major propositions 1. Coordination of all customer related activities 3. Profit direction .

their needs.Change in Selling Marketing Concept 1. • Successful marketing requires complete understanding of customers. Customer orientation • Focal point of modern marketing. . attitudes and buying behavior.

• Selling products without reasonable profit ? • Satisfying customer need s is the means to achieve sales and profit.Change in Selling Marketing Concept 2. • Sales reps and managers must control cost and generate sales volume for acceptable level of profitability. . Coordination • Between all customer serving functions is second fundamental point. delivery arrangements) 3. (Big order. production schedule. Profits • Are the goals of business unit.

develops stronger contacts with customer .Change in Selling Modern Sales Approaches 1.have moved from pure selling to mutually supporting role 2. relations • This relationship further strengthens as sales rep provides more services. Relationship selling • Don’t sell product only • Develop association. identifies and satisfies needs. Partnering • Clearly understand and anticipate customer’s need and as partner .

(Installation. complex purchasing requirements 4. Conventional independent sales approaches do not meet large. salespeople MUST work with other colleagues to provide coordinated approach.Salespeople are expected to exceed their customers expectation. Team Selling . Value Added Selling .Change in Selling Modern Sales Approaches 3.Act as consultants. problem solver and MUST adapt their product or services to specific needs of customer . employee training) 5. Must go beyond selling products and provide value added services for demanding customers.For large customers with complex need. Consultative Selling .

The Role of Personal Selling in The Marketing Mix 1-17 .

5.Personal Selling in The Marketing Mix Marketing Mix? • Strategies that a company utilizes to implement its marketing plan and pursue its marketing objectives • Composed of 4.6 major elements PRODOCT PRICE PROMOTION PLACEMENT 1-18 .

The Marketing Mix 1-19 .

.The Role of Personal Selling Product Strategy Under Marketing Concept Sales People Are Helpful • Specify desirable products features & benefit • Provide guidance during product development phase. • Participate in product testing and test marketing because of their familiarity with market place.

The Role of Personal Selling Pricing Strategy Sales people and sales managers can assist pricing in number of ways • Competitive pricing strategies • Gauge market reaction • Can advise/suggest senior management in pricing decision as per market conditions .

Most frequently used method is • Cost plus method . Cost Plus Method 2.Markup of profit is added to the product’s cost (Simplicity) .Pricing Strategy . Market Oriented .Method .Individual product prices are set in accordance with one of two approaches 1.

Competition oriented • Demand oriented . Philosophy is “MEETING THE COMPETITION” .Method . above or below competitor’s levels.Pricing Strategy Market oriented pricing relies on assessment of market response to alternative price level and can be subdivided 1.Profit markup is based on what the traffic will bear. Demand oriented 2. Sales managers play an important role because of their familiarity with customer response patterns • Competition oriented – A strategy where company prices its products at.

This ownership transfer can take place in two ways 1. Indirect Distribution. Direct Distribution 2.The Role of Personal Selling Distribution Strategy • Sales Force has even closer connection with the distribution component of the marketing mix • A Channel of distribution is the route a product takes from producer to ultimate user. .

The Role of Personal Selling Distribution Strategy Distribution Channel 1. Direct Distribution Form of ownership transfer in which the ultimate buyer acquires title directly from the manufacturer of the product Consumer .

The Role of Personal Selling Distribution Strategy Distribution Channel 2. Indirect Distribution Form ownership transfer involving the use of intermediaries who buy and resell the merchandise Distributor Wholesaler Retailer Consumer .

sales promotion & public relation. .Nothing happens until somebody sells something The Role of Personal Selling Promotional Strategy • Presentation of informative and persuasive messages to the firm’s target market to in an attempt to stimulate Sales • Personal selling is vital ingredient of this effort working in conjunction with advertising.

Tasks of Sales Managers • Sales management can be defined as the management of a firm’s personal selling function. planning. implementation/direction & control of the company’s sales activity . • Sales management’s tasks are analysis. organization.

investigation of market trends and relevant environmental factors. sales reports. . • Planning – Setting objectives for the firm’s sales efforts and mapping out strategies and tactics to achieve these objectives. • Control – Performance comparison of actual and planned sales results.Tasks of Sales Managers • Analysis – Review of internal sales record. observation/reasons if any and evaluation of the need for plan revision. policies and plans. • Organization – Setting up structures and procedures for smooth and effective execution of sales plan. • Implementation/Direction – Staffing and supervision of the day-to-day implementation of sales strategies.

Sales Manager’s Boundary Spanning Role Internal Organizational Environment Production Human Resource Top Management Advertising Sales force Finance & Accounting Research & Development Sales Manager Other internal Information sources Trade groups Regulatory Agencies Competitors External Environment Customers Other external sources Suppliers .

Field Sales Manager .

.Field Sales Manager’s Activities Analyze the conditions of selling situation • Review individual sales records and performance of salespersons. • Asses specific market trends and condition • Note relevant environment factors and trends Plan for the immediate situation & long run • Establish specific sales objectives and develop strategies and procedures to attain these objectives.

Field Sales Manager’s Activities Organize the sales team to achieve objectives • Break the selling task and supporting activities into operation parts (jobs) • Create specific job descriptions for these tasks and activities • Recruit and select personnel for these jobs .

• Assure the attainment of acceptable level of sales conduct and ethical behavior .Field Sales Manager’s Activities Oversee the operations of sales teams to improve its performance • Issue the necessary directions and guidelines • Provide the conditions of motivation (incentives) for performers • Train and coach sales team members for better sales performance.

Field Sales Manager’s Activities Evaluate sales performance • Create/set/establish/administer performance standards and measurement • Collect and analyze performance information against standards • Take indicated remedial actions .

Field Sales Management Sales Reps • Territory Management • Sharp analytical skill to reviewing the potential of their customer and territories • Identify prospects and their needs • Rout planning and call pattern • Effective sales presentation • The ability to organize varied responsibilities and activities in a systematic.Qualities . efficient & effective manner • Achieve objectives. They can not be managed by system. sales quotas Field sales reps do not manage themselves well . no matter how sophisticated or automated .

requiring a delicate balance between subjective creativity and objective detachment • Product & technical knowledge & capacity to conceptualize • Decisiveness in handling the conflicts. problems and demands brought before them • Patience and dedication to listening . by their actions as well as their statements.Field sales managers MUST demonstrate. a high level of ethical behavior Qualities .Field Sales Management Field Sales Managers • Management of a field sales team is both an art and science.

Charisma .Field Sales Management Traits for first level Sales Managers • Motivation – Enthusiasm to all major task • Human relation skills • Higher than average energy • Ambition – Strong personal desire to achieve and advance • Persuasiveness – interest in persuasive involvement • Behavior flexibility • Intellectual ability • Personal impact .Qualities .

Selling to Managing • Most sales managers – Former salespeople • Must make the transition from selling to managing • An old myth about top performer ? • Proved wrong. time and again Salesperson – Doer Sales Manager ? .

correspond. motivate. recruit select. interact with other departments . manage key accounts.Selling & Managing Activity Primary responsibility Working relationship Role Part of management Diversity of responsibility Alone Player No Make call. train. sell & service Sales Rep Develop accounts Sales Manager Develop people Through others Coach Yes – must sell the company plan to reps Develop people. compensate. run branch office.Critical difference .

Sales Management Training & Development Survey of human resource specialist identified increased training for first level managers & supervisors as one of industry’s most pressing need. • Keeps them competitive • Management training helps to retain good people Most important Training Needs (First level managers) • Communication Skills • Team Building • Performance Management Skills .

Most important Area of Training • How to motivate sales people • Effective time management • How to coach & train salespeople • How to listen for understanding • How to make transition to sales manager • How to be an effective sales manager • How to make an effective presentation • How to manage negotiation process .Sales Management Training & Development Survey of sales training by Princeton Research & Consulting Center emphasizes “ Great Need” for sales management training.

.Sales Management Training & Development Thereimportant is also growing need sales management The most reason forfor sales management in other career industries like Banking that trying to trainingtraining is to enhance development as training is develop the key to helpa asales salesculture person make difficult transition • Started recognizing the need for ongoing sales management training for branch managers • Banks are attempting to develop coaching and other skills • Upper management also needs training to gain understanding of the role of selling and sales management in banking.

All mangers. will sales MUST deal with morning is that some bemanagers changed from yesterday” Change. especially sales managers. work under constantly changing conditions • New products are introduced • A competitor cuts the price • New government law • New territories are opened .Sales Management & Change “The only thing I can be sure about when I get to the office in the To accomplish its thing task.

1970 • 100% by direct sales force 1990 Onward • 75% through direct sales • 5% telemarketing • 11% through distributors wholesalers • 6.6% through outside sales 1950 .Evolution of Sales Management % Volume Sold By Type Of Seller Sales Positions 1950 .1970 Territory sales reps District managers Regional managers 1990 Onward Territory sales reps Key or major account reps National account managers Customer service reps Telemarketing reps Administrators Sales trainers District managers Regional managers Product/industry specialists .

1970 • Mass marketing techniques targeting one type of customer 1990 Onward • Marketing segmentation techniques targeting several “niches” 1950 .1970 • Increase in overall sales volume • Minimize turnover 1990 Onward • Increase sales volumes in strategic markets • Increase margin contribution • Decrease cost of sales • Attract top sales performers .Evolution of Sales Management Marketing Approach Performance Expectations 1950 .