Personal Selling and Sales

Management

Chapter 17
Introduction to Sales Personnel
Importance of personal sales:
Direct link to the customer
Most customers see the sales person as the
company
Designing the sales force internationally is one of
the most important functions of the marketing
department
“A salesman is someone who sells goods
that won’t come back to customers who
will.” (Anonymous)
Steps
Steps in
in the
the Selling
Selling Process
Process

Identifying and Screening For

Step
Step1.
1. Prospecting
Prospectingand
andQualifying
Qualifying Qualified Potential Customers.

Learning As Much As Possible

Step
Step 2.
2. Preapproach
Preapproach About a Prospective Customer
Before Making a Sales Call.

Step
Step3.
3. Approach
Approach Knowing How to Meet the
Buyer to Get the Relationship
Off to a Good Start.

Step
Step4.
4.Presentation/
Presentation/Demonstration
Demonstration Telling the Product “Story” to
the Buyer, and Showing the
Product Benefits.
Steps
Steps in
in the
the Selling
Selling Process
Process

Seeking Out, Clarifying, and

Step
Step5.
5. Handling
HandlingObjections
Objections Overcoming Customer
Objections to Buying.

Step
Step 6.
6. Closing
Closing Asking the Customer for the
Order.

Step
Step7.
7. Follow-Up
Follow-Up Following Up After the Sale to
Ensure Customer Satisfaction
and Repeat Business.
Factors Affecting the Importance of Personal Selling in
the Promotional Mix
Variable Conditions That Favor Conditions That Favor
Personal Selling Advertising

Consumer Geographically Geographically dispersed

concentrated
Relatively low numbers Relatively high numbers
Expensive Inexpensive
Technically complex Simple to understand
Product
Custom made Standardized
Special handling No special handling
requirements requirements
Transactions frequently Transactions seldom
involve trade-ins involve trade-ins

Price Relatively high Relatively low

Channels Relatively short Relatively long

The Evolution of Personal Selling
Today’s salesperson is usually a highly-trained
professional
Sales professionals take a customer-oriented
approach employing truthful, nonmanipulative
tactics in order to satisfy the long-term needs of
both the customer and the selling firm
Today’s professional salespeople are problem
solvers who seek to develop long-term relationships
with customers
 Four Sales Channels
Over-the-counter selling: personal
selling conducted in retail and some
wholesale locations in which customers
come to the seller’ place of business

Field selling: sales presentations made at

prospective customers’ homes or businesses
on a face-to-face basis
Four Sales Channels
Telemarketing: promotional presentation
involving the use of the telephone on an
outbound basis by salespeople or on an inbound
basis by customers who initiate calls to obtain
information and place orders

Inside selling: performing the functions of field

selling but avoiding travel-related expenses by
relying on phone, mail, and electronic commerce
to provide sales and product service for
customers on a continuing basis
I. Designing & Recruiting Sales Personnel
3 Ways to Design Sales Force
1. Expatriates
2. Local Nationals
3. Third Country Nationals
Advantages/Disadvantages of all 3:
1. Expatriates (declining)
• Advantages
– Used most when products are highly technical or
requires a lot of information in order to sell
– Familiar with headquarters policies, procedures
– Opinions/Ideas are valued more by home office
I. Designing & Recruiting Sales Personnel
Disadvantages
– High cost
– Cultural and legal barriers
– Difficult to recruit – many highly skilled will not
re-locate overseas
Other type of Expatriates
– Virtual Expatriates
– Created by the internet and other advanced
types of communications, where they
manage operations in other countries, but
do not move to that country.
I. Designing & Recruiting Sales Personnel
2. Local Nationals
Advantages
– Most knowledgeable about culture, legal
environments, business structure, distribution
networks
Disadvantages
– Home office does not see as the “experts” in the field
– Seen as not being familiar with home office procedures,
policies
– Not the experts on the products
– Difficult to recruit most skilled and knowledgeable
– Recruiting the best may mean taking away from another
company or competitor – this goes against some cultural
believes where “loyalty” is important

– Crossing Borders 17.3 pg. 521 -“Avon calling – or not?”

I. Designing & Recruiting Sales Personnel
3. Third-Country Nationals
Advantages
• If recruited within same area most are familiar with
culture, language, how to conduct business
Disadvantages
• Host country does not see individual as one of their
own
• Many of the same disadvantages to a smaller scale
with the expatriate.
 Selecting Sales and Marketing Personnel

•• To
To select
select personnel
personnel for
for international
international marketing
marketing positions
positions
effectively,
effectively, management
management must
must choose
choose individuals
individuals who
who have
have the
the
following
following traits:
traits:

1.
1. Maturity
Maturity 4.
4. Flexibility
Flexibility

2.
2. Emotional
Emotional Stability
Stability 5.
5. Cultural
Cultural Empathy
Empathy

3.
3. Breadth
Breadth of
of Knowledge
Knowledge 6.
6. Energetic
Energetic and
and
7.
7. Enjoy
Enjoy Travel
Travel
III. Training Sales Personnel
Types and method of training differs depending
upon type of sales structure
1. Expatriates
• Focus is on culture, customs, special foreign issues (not on
products, selling methods, home office policies..)
2. Local Nationals/Third-County Nationals
• Focus on product knowledge
• More continual training
• Methods of training need to be adapted to recipients’ way of
learning
Internet is facilitating faster and more efficient learning
for all types of sales structures
IV. Motivating Sales Personnel
What motivates people varies from culture to culture
Though some similarities exist in certain cultures, many
cultures vary in a number of areas (individual bonuses vs.
group bonuses; compensation vs. personal growth, etc)
Designing Compensation Systems
Expatriates
• Things to consider
– Countries with high taxes, prefer larger expense accounts, fringe
benefits (things that are non-taxable)
– Where the company is multi-national, sales personnel will compare
compensation plans from home country to re-assigned country
Compensating
Compensating Salespeople
Salespeople
Sales Force Compensation Plans Can Both Motivate
Salespeople and Direct Their Activities.
Salary K
HEC
Y C
PA

Components
Benefits of
Compensation
Bonus

Commission
IV. Motivating Sales Personnel
2. Global Sales Force
• Allows for most flexibility in creating compensation
plans
• See “do’s and don’ts of global compensation”
– pg. 532
Preparing U.S. Personnel for
Foreign Assignments
Obstacles to overcome
1. Reluctance to accept foreign assignment due to:
• Concerns for career and family (most common)
– Career fears relate to “out of sight, out of mind”
– Family is uprooted in a very different environment
2. Reducing the rate of early returns
• Unsuccessful family adjustment is the single most important
reason for early returns.
3. Ensuring successful return home
• Need to have a personal career plan designed to successfully
transition the individual and family back to their home country.
Important Points in Recruiting
Sales Personnel & Managers
Important characteristics/skills to look
for when recruiting:
Cross-cultural skills
• More important in most cases than technical
skills
Language skills
• Many believe that the more fluent in
languages, the more culturally sensitive
– Crossing Borders 17.6 pg. 525
Evaluating
Evaluating
Salespeople
Salespeople
Expense
Expense Sales
Sales
Reports
Reports Report
Report

Sources
Sources
of
of
Call
Call Information
Information Work
Work
Reports
Reports Plan
Plan

Annual
Annual
Territory
Territory
Marketing
Marketing Plan
Plan
Relationship Marketing
Process of creating, maintaining, and
enhancing strong, value-laden
relationships with customers and other
stakeholders.

Based on the idea that important

accounts need focused and continuous
attention.