10/1

Managing the Personal Selling Function

10/2

Chapter Questions
• What is the role of personal selling in business marketing? • What is the selling process followed by an industrial sales person? • What are various types of sales organisations? • How the sales force is managed and deployed? • How the major, national, or key accounts are managed? • What are the ethical issues in personal selling?

10/3

Role of Personal Selling in BM
Major roles are: 1)Part of problem – solving ability of the company

2)Part of the communication mix. 3) Building a long-term relationship with key customers.

Prospecting and qualifying Pre-approach or Pre-call planning Approach Presentation and demonstration Overcoming objections Trial close / closing the sale Follow-up and service . 4. 2. 6. 5. 7.10/4 The Selling Process Transactional salesperson follows the process: 1. 3.

(6) cold canvassing Qualifying • Companies qualify sales leads by contacting them by mail or phone to find their interests (or needs) and financial capacity. • Leads are categorized as: Hot. trade associations).. (4) salespersons’ networking. and Cool . Warm. (3) external sources (suppliers.e. teleprospecting). tradeshow. • Methods of prospecting or sales lead generation are: (1) referrals from existing customers. intermediaries. (2) company sources (website. ads.Prospecting • It is identifying or finding prospects i. prospective or potential customers. (5) industrial directories.

government publications. etc. features and benefits may meet the customer needs .Preapproach • Information gathering about the prospect. • Precall planning • Setting call objectives • Tentative planning of sales strategy: which products. intermediaries. Sources of information: the Internet. industrial directories.

Approach • Make an appointment to meet the prospect • Make favourable first impression • Select an approach technique: • Introductory • Customer benefit • Product • Question • Praise • The approach takes a few minutes of a call. but it can make or break a sale .

Presentation and Demonstration There are four components: • • • • Understanding the buyer’s needs Knowing sales presentation methods / strategies Developing an effective presentation Using demonstration as a tool for selling We will examine each of the above points .

G.Understanding the buyer’s needs • Firms and consumers buy products / services to satisfy needs • To understand buyer’s needs. problem identification and impact questions are important E. • Have you experienced any problems on quality and delivery from the existing supplies? • What impact the quality and delivery problems will have on your costs and customer satisfaction? . ask questions and listen • In business situations.

desire. . interest. E. • The salesperson uses a standard formula – AIDA (attention. Used by tele-marketing people • Formula method / formulated approach. • It is a memorised sales talk or a prepared sales presentation. • The sales person talks without knowing the prospect’s needs. • Shortcomings are: prospects’ needs are not uncovered and uses same standard formula for different prospects.Knowing Sales Presentation Methods/Strategies Firms have developed different methods / styles / strategies of sales presentation • Stimulus response method / canned approach. and action). • It is used if time is short and prospects are similar. • It is also based on stimulus response thinking that all prospects are similar.G.

Sales Presentation Methods (Continued) • Need – satisfaction method • Interactive sales presentation • First find prospect’s needs. Advantages. as it focuses on customers • Consultative approach selling method / Problem-solving • Salespeople use cross-functional expertise • Firms adopt team selling approach • It is used by software / consulting firms . by asking questions and listening • Use FAB approach: Features. Benefits • Effective method.

Developing an Effective Presentation Some of the guidelines are: • • • • • • • Plan the sales call Adopt presentation to the situation and person Communicate the benefits of the purchase Present relevant and limited information at a time Use the prospect’s language Make the presentation convincing – give evidence Use technology like multi-media presentation .

demonstration of industrial products in use • Benefits of using demonstration for selling are: • • • • Buyers’ objections are cleared Improves the buyer’s purchasing interest Helps to find specific benefits of the prospect The prospect can experience the benefit .Using Demonstration • Sales presentation can be improved by demonstration • Demonstration is one of the important selling tools EGs: Test drive of cars.

(c) deny objections tactfully.Overcoming Sales Objections / Resistances • Objections take place during presentations / when the order is asked • Two types of sales objections: • Psychological / hidden • Logical (real or practical) • Methods for handling and overcoming objections: (a) ask questions. (b) turn an objection into a benefit. (d) third-party certificate. (e) compensation .

(d) summary-of-benefits. (c) assumptive. (g) probability. before closing the sale (or asking for the order) • If the response to trial close question is favourable. (f) special-offer. then the salesperson should close the sale • Some of the techniques used for closing the sale are: (a) alternative-choice.Trial close and Closing the sale • Trial close checks the attitude or opinion of the prospect. (b) minor points. (e) T-account. and (h) negotiation .

Follow-up and Service • Necessary for customer satisfaction • Successful salespeople follow-up in different ways: For example. • • • • • Check order details Follow through delivery schedule Visit when the product is delivered Build long-term relationship Arrange warranty service .

10/5 Types of Sales Organisations • Geographic organisation • Product organisation • Market oriented organisation • Combination organisation Major selection criteria (1)Size and resource of the firm (2)Nature of product sold in the market .

10/6 Management of Sales Force Management / administration of sales force includes:  Recruitment and selection of salespersons  Training the salespeople  Supervision and motivation of sales force  Compensation of salesforce  Evaluation and control of salespersons .

recruitment starts by: • Identifying prospective candidates. . • Evaluating and selecting effective sources of recruitment.10/7 Recruitment of the Sales Force After planning the needed number and type of salespeople. using internal and external sources.

high energy. knowledgeable. reliable.10/8 Selection of the Sales Force Tools or steps in selection process: • Screening resumes • Application blank • Initial interview • Intensive interview • Testing • Reference check • Physical examination Each company decides selection criteriae. helpful.g. .

Content. and (2) experienced / existing salespeople. Execution. . •Design and execute sales training programme using ‘ACMEE Method’: Aims.10/9 Training the Salespeople The training process has three phases: Assess Sales Training Needs Design and Execute Sales Training Programme Evaluation and Reinforcement of Sales Training Programme •Assess training needs of (1) newly hired sales trainees. Evaluation. Methods.

negotiating skills. competitor knowledge •Selling skills or sales techniques. 2) Continuing training for existing salespeople (specific) •Depending on training needs •Examples: New product.10/10 Designing & Executing Sales Training Programme Aims / Objectives (Vary from company to company) Examples •Prepare new sales trainees •Increase sales. or both •Increase sales productivity Content of training programme 1) Initial training for new sales trainees (Broader) •Company. profits. . product. customer.

manuals. job rotation. books. When and where the training take place? 3. role-playing Online training : Distance learning. What would be the budgeted expenditure? . Absorption training: CD-ROM. Behavioral learning: Case studies. interactive multimedia. Who will be the trainees and trainers? 2. make decisions on : 1. audio cassettes. On the job training: Mentoring. group discussion.10/11 Sales Training Methods Grouped into five categories: • • • • • Class room / conference training: Lectures. Execution of Sales Training programme First.

teaching aids. travel.10/12 Execution / Implementation of Sales Training Programme • Arranging internal / external trainers • Arranging conference hall. etc. etc. communication. • Prepare time table. Evaluation of Sales Training Programme • Sales performance against targets before and after training • Written tests before and after the training • Trainees evaluate training programme Reinforcement training methods • Web – based or online training • Refresher training and retraining .

e-mail. Indirect: Sales report. coaching. compensation plan. • Training and development of sales persons. sales analysis. personal contact.10/13 Supervision of Sales Force • Supervision is directing and controlling daily activities of salespeople: Responsibilities of sales supervisor /manager: • Communicating & implementing sales policies & strategies • Counseling on deficiencies of salespeople • Setting goals or targets • Creating a favourable work environment & relationship. . sales meeting. Methods used for supervising salespeople Direct : Phone. expense report.

(2) sense of accomplishment. (8) job enrichment. (3) bonus. (6) training. (4) recognition.financial tools / methods: (1)Promotion. (2) commission. (5) job security. (3) personal growth opportunities. (6) sales contests Non.10/14 Motivation of Sales Force • Motivation is the effort salesperson makes to complete activities of the job. (5) combination. • Categories of motivational methods / tools : Financial & Nonfinancial Financial tools / methods: (1)salary. (9) supervision . (4) fringe benefits. (7) sales meetings.

10/15 Compensation of Sales Force Purpose : Attract and motivate salespeople. Methods / plans of salesforce compensation: • Straight salary • straight commission • combination • Salary plus commission • Salary plus bonus • Salary plus commission plus bonus .

Review performance evaluation with salespersons Decide sales management actions. promotion.10/16 Evaluate and Control of Sales Force Performance Purposes : • To decide payment increment. training needs • To find strengths and weaknesses Procedure • Set policies on performance evaluation and control • • • • • Decide bases of (or criteria for) performance evaluation Establish performance standards / goals / targets. . Compare actual performance with the standards.

up sales territories • Determining size of the sales force • Allocating salespeople to territories Setting – up or Designing Sales Territories Steps involved are : • Select a control unit • Find location and potential of customers • Use build – up method to decide basic territories .10/17 Deployment of Sales Force It includes the following • Setting .

10/18 Determining Size of the Sales Force Three alternative methods available 1)Workload method 2)Sales potential or Break down method 3)Incremental method .

. past performance. • link salespeople abilities to territory potentials.10/19 Allocating Salespeople to Territories Criteria / factors considered for allocation: 1)Relative abilities of salespeople • Based on product & market knowledge. selling and communication skills. 2) Effectiveness of salesperson in a territory • Relate salesperson’s social & cultural characteristics with those of territory customers.

10/20 Management of Major / Key / National Accounts • Major. • Major accounts are simple to serve as customers’ operating unit is at one place. • Difference between major and national accounts: Large Major Account Transactional Account National Account Minor Account Sales and Profit Potential of customers Small Simple Complex Complexity of Customers • Complexity of national account due to geographically dispersed customers’ operating units. or key accounts are high sales and profit potential customers. national. .

10/21 Managing Key Accounts Objective: Become a preferred or sole supplier. mutually beneficial. • Support from top management and other functional executives. • Provide superior value. . • Relationship marketing-long term. Strategy / Tasks: • Team selling – headed by a senior manager. after identifying key account’s needs.

10/22 Ethical Issues in Personal Selling Ethical situations involving salespeople: • Relations with the company • Relations with customer –main issues: • Gifts • Misrepresentation • Business entertainment Ethical guidelines • Develop and enforce a code of ethics .