© 2006 McGraw-Hill Companies, Inc.

, McGraw-Hill/Irwin Slide 20-1

CHAPTER

PERSONAL
SELLING AND
SALES
MANAGEMENT

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-2

 SCOPE AND SIGNIFICANCE OF
PERSONAL SELLING AND
SALES MANAGEMENT

• Nature of Personal Selling and Sales

Management
 Personal Selling
 Sales Management
• Selling Happens Almost Everywhere

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-6

FIGURE 20-1 Personal selling and sales
management quiz

1. 20% 3. False
2. $350 4. 60%
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-7
 SCOPE AND SIGNIFICANCE OF
PERSONAL SELLING AND
SALES MANAGEMENT

• Personal Selling in Marketing

• Creating Customer Value Through

Salespeople: Relationship and Partnership
Selling
 Relationship Selling
 Partnership Selling (or Enterprise Selling)

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-8

FIGURE 20-A How salespeople create value
for customers

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-9

 THE MANY FORMS OF
PERSONAL SELLING

• Order Taking

 Outside Order Takers

 Inside Order Takers, Order Clerks,
or Salesclerks
 Inbound Telemarketing
• Order Getting

 Outbound Telemarketing
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-13
FIGURE 20-B Comparing order takers with
order getters

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-14

FIGURE 20-2 How outside order-getting
salespeople spend their time each week

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-16

 THE MANY FORMS OF
PERSONAL SELLING

• Customer Sales Support Personnel

 Missionary Salespeople
 Sales Engineer
 Team Selling
 Conference Selling
 Seminar Selling

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-17

THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS

• Personal Selling Process

• Prospecting

 Lead
 Prospect
 Qualified Prospect
 Cold Canvassing
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-21
FIGURE 20-3 Stages and objectives of the
personal selling process

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-22

FIGURE 20-C Stages in the personal selling
process

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-23

THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS

• Preapproach

• Approach

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-25

THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS

• Presentation

 Stimulus-Response Format
• Stimulus-Response Presentation

• Suggestive Selling

 Formula Selling Format

• Formula Selling Presentation
• Canned Selling Presentation
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-27
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS

• Presentation

 Need-Satisfaction Format
• Need-Satisfaction Presentation

• Adaptive Selling

• Consultative Selling

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-28

THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS

• Presentation

 Handling Objections
• Acknowledge and Convert the Objection
• Postpone
• Agree and Neutralize
• Accept the Objection
• Denial
• Ignore the Objection
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-30
FIGURE 20-D Techniques for handling
objections

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-31

THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS

• Close

 Trial Close
 Assumptive Close
 Urgency Close
 Final Close
• Follow-Up

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-32

THE SALES MANAGEMENT PROCESS

• Sales Plan Formulation: Setting Direction

 Sales Plan
 Setting Objectives

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-37

FIGURE 20-4 The sales management
process

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-38

THE SALES MANAGEMENT PROCESS

• Sales Plan Formulation: Setting Direction

 Organizing the Salesforce

• Own Salesforce vs. Independent Agents

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-40

THE SALES MANAGEMENT PROCESS

• Sales Plan Formulation: Setting Direction

 Organizing the Salesforce—Structure

• Geography

• Customer
 Major (Key) Account Management

• Product

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-42

THE SALES MANAGEMENT PROCESS

• Sales Plan Formulation: Setting Direction

 Organizing the Salesforce—Size

• Workload Method
• Developing Account Management Policies

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-47

FIGURE 20-7 Account management policy
grid grouping customers according to the
level of opportunity and a firm’s competitive
sales position

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-48

THE SALES MANAGEMENT PROCESS

• Sales Plan Implementation: Putting the Plan

into Action
 Salesforce Recruitment and Selection
• Job Analysis

• Job Description

• Emotional Intelligence

 Salesforce Training

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-49

FIGURE 20-8 U.S. sales force composition
and change

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-51

FIGURE 20-8A U.S. sales force composition
and change

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-52

FIGURE 20-8B U.S. sales force composition
and change

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-53

FIGURE 20-8C U.S. sales force composition
and change

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-54

THE SALES MANAGEMENT PROCESS

• Sales Plan Implementation: Putting the Plan

into Action
 Salesforce Motivation and Compensation
• Straight Salary Compensation Plan

• Straight Commission Compensation Plan

• Combination Compensation Plan

 Salesforce Training

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-55

THE SALES MANAGEMENT PROCESS

• Salesforce Evaluation and Control:

Measuring Results
 Quantitative Assessments
• Sales Quota

 Behavioral Evaluation

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-57

THE SALES MANAGEMENT PROCESS

• Salesforce Automation and Customer

Relationship Management
 Salesforce Automation (SFA)
 Salesforce Computerization
 Salesforce Communication

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-58

 Personal Selling

Personal
Personal selling
selling involves
involves the
the two-way
two-way
flow
flow of
of communication
communication between
between aa buyer
buyer
and
and seller,
seller, designed
designed to
to influence
influence aa
person’s
person’s or
or group’s
group’s purchase
purchase decision,
decision,
usually
usually in
in face-to-face
face-to-face communication
communication
between
between the
the sender
sender and
and receiver.
receiver.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-82

 Sales Management

Sales
Sales management
management involves
involves planning
planning
the
the selling
selling program
program and
and implementing
implementing
and
and controlling
controlling the
the personal
personal selling
selling effort
effort
of
of the
the firm.
firm.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-83

 Relationship Selling

Relationship
Relationship selling
selling is
is the
the practice
practice of
of
building
building ties
ties to
to customers
customers based
based on
on aa
salesperson’s
salesperson’s attention
attention and
and commitment
commitment
to
to customer
customer needs
needs over
over time.
time.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-84

 Partnership Selling

Partnership
Partnership selling
selling is
is the
the practice
practice
whereby
whereby buyers
buyers and
and sellers
sellers combine
combine their
their
expertise
expertise and
and resources
resources toto create
create
customized
customized solutions,
solutions, commit
commit to to joint
joint
planning,
planning, and
and share
share customer,
customer,
competitive,
competitive, and
and company
company information
information
for
for their
their mutual
mutual benefit,
benefit, and
and ultimately
ultimately
the
the customer.
customer. Also
Also called
called enterprise
enterprise
selling.
selling.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-85
 Order Taker

An
An order
order taker
taker processes
processes routine
routine orders
orders
or
or reorders
reorders for
for products
products that
that were
were already
already
sold
sold by
by the
the company.
company.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-86

 Order Getter

An
An order
order getter
getter sells
sells in
in aa conventional
conventional
sense
sense and
and identifies
identifies prospective
prospective
customers,
customers, provides
provides customers
customers with
with
information,
information, persuades
persuades customers
customers to to buy,
buy,
closes
closes sales,
sales, and
and follows
follows up up on
on
customers’
customers’ use
use of
of aa product
product oror service.
service.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-87

 Missionary Salespeople

Missionary
Missionary salespeople
salespeople are
are sales
sales support
support
personnel
personnel who
who dodo not
not directly
directly solicit
solicit
orders
orders but
but rather
rather concentrate
concentrate on
on
performing
performing promotional
promotional activities
activities and
and
introducing
introducing new
new products.
products.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-88

 Sales Engineer

A
A sales
sales engineer
engineer is is aa salesperson
salesperson who
who
specializes
specializes in
in identifying,
identifying, analyzing,
analyzing, and
and
solving
solving customer
customer problems
problems and and brings
brings
know-how
know-how and and technical
technical expertise
expertise to
to the
the
selling
selling situation
situation but
but often
often does
does not
not
actually
actually sell
sell products
products andand services.
services.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-89

 Team Selling

Team
Team selling
selling is
is the
the practice
practice of
of using
using an
an
entire
entire team
team ofof professionals
professionals inin selling
selling to
to
and
and servicing
servicing major
major customers.
customers.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-90

 Personal Selling Process

The
The personal
personal selling
selling process
process consists
consists of
of
sales
sales activities
activities occurring
occurring before
before and
and after
after
the
the sale
sale itself,
itself, consisting
consisting of
of six
six stages:
stages:
(1)
(1) prospecting,
prospecting, (2) (2) preapproach,
preapproach,
(3)
(3) approach,
approach, (4) (4) presentation,
presentation, (5)
(5) close,
close,
and
and (6)
(6) follow-up.
follow-up.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-91

Stimulus-Response Presentation

Stimulus-response
Stimulus-response presentation
presentation isis aa
presentation
presentation format
format which
which assumes
assumes that
that
given
given the
the appropriate
appropriate stimulus
stimulus by
by aa
salesperson,
salesperson, the
the prospect
prospect will
will buy.
buy.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-92

Formula Selling Presentation

Formula
Formula selling
selling presentation
presentation isis aa
presentation
presentation format
format that
that consists
consists of
of
information
information that
that must
must be
be provided
provided in in
an
an accurate,
accurate, thorough,
thorough, and
and step-by-step
step-by-step
manner
manner to
to inform
inform the
the prospect.
prospect.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-93

Need-Satisfaction Presentation

Need-satisfaction
Need-satisfaction presentation
presentation is is aa
presentation
presentation format
format that
that emphasizes
emphasizes
probing
probing and
and listening
listening by
by the
the salesperson
salesperson
to
to identify
identify needs
needs and
and interests
interests of
of
prospective
prospective buyers.
buyers.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-94

 Adaptive Selling

Adaptive
Adaptive selling
selling is
is aa need-satisfaction
need-satisfaction
presentation
presentation format
format that
that involves
involves
adjusting
adjusting the
the presentation
presentation toto fit
fit the
the selling
selling
situation,
situation, such
such as
as knowing
knowing whenwhen to to offer
offer
solutions
solutions and
and when
when to to ask
ask for
for more
more
information.
information.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-95

 Consultative Selling

Consultative
Consultative selling
selling is
is aa need-
need-
satisfaction
satisfaction presentation
presentation format
format that
that
focuses
focuses onon problem
problem identification,
identification, where
where
the
the salesperson
salesperson serves
serves as
as an
an expert
expert on
on
problem
problem recognition
recognition and
and resolution.
resolution.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-96

 Sales Plan

A
A sales
sales plan
plan is
is aa statement
statement describing
describing
what
what isis to
to be
be achieved
achieved and and where
where and
and
how
how the
the selling
selling effort
effort of
of salespeople
salespeople is
is
to
to be
be deployed.
deployed.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-97

Major Account Management

Major
Major account
account management
management is is the
the
practice
practice of
of using
using team
team selling
selling to
to focus
focus
on
on important
important customers
customers soso as
as to
to build
build
mutually
mutually beneficial,
beneficial, long-term,
long-term,
cooperative
cooperative relationships.
relationships. Also
Also called
called
key
key account
account management.
management.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-98

 Workload Method

The
The workload
workload method
method is is aa formula-
formula-
based
based method
method for
for determining
determining the the size
size of
of
aa salesforce
salesforce that
that integrates
integrates the the number
number of of
customers
customers served,
served, call
call frequency,
frequency, callcall
length,
length, and
and available
available selling
selling time
time to
to arrive
arrive
at
at aa figure
figure for
for the
the salesforce
salesforce size.
size.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-99

Account Management Polices

Account
Account management
management policies
policies specify
specify
whom
whom salespeople
salespeople should
should contact,
contact, what
what
kinds
kinds of
of selling
selling and
and customer
customer service
service
activities
activities should
should be
be engaged
engaged in,
in, and
and how
how
these
these activities
activities should
should be
be carried
carried out.
out.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-100

 Emotional Intelligence

Emotional
Emotional intelligence
intelligence is
is the
the ability
ability to
to
understand
understand one’s
one’s own
own emotions
emotions and
and the
the
emotions
emotions ofof people
people with
with whom
whom one
one
interacts
interacts on
on aa daily
daily basis.
basis.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-101

 Sales Quota

AA sales
sales quota
quota contains
contains specific
specific goals
goals
assigned
assigned to to aa salesperson,
salesperson, sales
sales team,
team,
branch
branch sales
sales office,
office, or
or sales
sales district
district for
for
aa stated
stated time
time period.
period.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-102

 Salesforce Automation

Salesforce
Salesforce automation
automation (SFA)
(SFA) is
is the
the
use
use of
of computer,
computer, information,
information,
communication,
communication, andand Internet
Internet technologies
technologies
to
to make
make the
the sales
sales function
function more
more effective
effective
and
and efficient.
efficient.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-103