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o nal Class

r
Pe ngs Date : 8
: 25 th
S el li 2021
&26 th
Nov

Mark
eting
Mino
r
na l Sel lin g -
Perso n
Definitio

Personal presentation by the firm’s sales


force for the purpose of making sales and
building customer relationships.

Note: Most salespeople are well-educated, well-


trained professionals who work to build and maintain
long-term customer relationships
p e r s o n -
Sales n
D ef i n i t i o

An individual representing a company to customers by


performing one or more of the following activities: prospecting,
communicating, selling, servicing, information gathering, and
relationship building.

Types :
 Order taker: Department store clerk.
 Order getter: Demands creative selling and relationship
building.
a l S e ll i n g
Person e d
– D e f i n
Personal selling refers to personal
communication with a an audience
through paid personnel of an
organization or its agents in
such a way that the audience
perceives the communicator’s
organization as being the source
of the message.
l ut i o n o f
Evo e l l ing
l S
Persona
Peddlers selling door Selling function
to door . . . served as became more
intermediaries structured

1800s 1900s 2000s


As we begin the
Industrial 21 century, selling
st
Post-Industrial continues Modern
War and to develop,
becoming more
Revolution professional
Revolution and more relational
Depression Era

Selling function
Business organizations
became more
employed salespeople
professional
o f P e rso na l
ions
Contribut alespeople and
S
Selling:
Society

• Salespeople help stimulate


the economy

• Salespeople help with the


diffusion of innovation
o f P e rso na l
ions
Contribut alespeople and
S
Selling: ying Firm
o
the Empl

Salespeople generate revenue


Salespeople provide market
research and customer
feedback
Salespeople become future
leaders in the organization
o f P e rso na l
ions
Contribut alespeople and
S
Selling: Customer
the

Salespeople provide solutions to


problems
Salespeople provide expertise and
serve as information resources
Salespeople serve as advocates for
the customer when dealing with the
selling organization
i on - Fo c u sed
Transact s.
v
s h i p F o c used
Relation

Transaction-Focused Relationship-Focused
• Short term thinking • Long term thinking
• Making the sale has • Developing the
priority over most relationship takes
other considerations priority over getting
• Interaction between the sale
buyer and seller is • Interaction between
competitive buyer and seller is
• Salesperson is self- collaborative.
interest oriented • Salesperson is
customer-oriented
si f ic a t i on of
Clas e l lin g
n a l S
Perso h es
A p p r o ac

• Stimulus Response Selling


• Mental States Selling
• Need Satisfaction Selling
• Problem Solving Selling
R es pon se
Stimulus ng
Selli

Continue
Salesperson Buyer
Process until
Provides Responses
Purchase
Stimuli Sought
Decision
t al St at es
Men
Selling

Attention Interest Conviction Desire Action


t i s fac ti on
Need Sa ng
Selli

Present Continue
Uncover and
Offering to Selling until
Confirm
Satisfy Purchase
Buyer Needs
Buyer Needs Decision
S o l v i n g
Problem g
Sellin

Continue
Generate Evaluate Selling
Define
Alternative Alternative until
Problem
Solutions Solutions Purchase
Decision
u l ta ti v e
Cons
Selling

Business Consultant

The process of helping


customers reach their
strategic goals by using Strategic Orchestrator
the products, service,
and expertise of the
selling organization.
Long-term Ally
g i n g t he
Mana c e
s F o r
Sale
• Sales force management:
The analysis, planning, implementation, and control of sales
force activities includes:
Designing sales force strategy and structure.

Recruiting and selecting salespeople.

Training salespeople.

Compensating salespeople.

Supervising salespeople.

Evaluating salespeople.
a g i ng th e
Man
al es F o rce
S

• Types of sales force structure:

• Territorial: Salesperson is assigned to an exclusive


geographic territory in which that salesperson sells the
company’s full line.
• Product: Salespeople specialize in selling only a portion
of the company’s products or lines.
• Customer: Salespeople specialize in selling only to
certain customers or industries.
• Complex: Combination of several types of structures.
a g i ng th e
Man
al es F o rce
S
• Sales force size:
• May range in size from only a few salespeople to tens of thousands.

• Increasing sales force size will increase both costs and sales.

• Workload approach can be useful in setting sales force size. This


requires:
• Grouping accounts by factors related to the effort required to maintain
them.

• Determining the number of people needed to call on each class of


accounts.
a g i ng th e
Man
al es F o rce
S

• Other sales force strategy and structure issues


include decisions related to use of:

• Outside sales force:


• Travels to call on customers in the field.

• Inside sales force:


• Conducts business from their offices via telephone or the
Internet, or visits from prospective buyers.

• Team selling:
• Using teams of people from sales, marketing, engineering,
finance, technical support and even upper management to
service large, complex accounts.
a g i ng th e
Man
al es F o rce
S

• Key advantage of team selling:


Can find problems, solutions, and sales opportunities that no single
salesperson could alone.

• Pitfalls of team selling:


• Salespeople are competitive and have typically been rewarded on
the basis of individual performance.
• Team selling can confuse or overwhelm customers.
• Some people have trouble working in teams.
• Difficult to evaluate individual contributions.
n g t he
n ag i
Ma F o rc e
Sales
• Careful recruiting and selection of salespeople can greatly
enhance overall sales force performance while minimizing costly
turnover.

• Key talents of successful salespeople:


Intrinsically motivated.
Disciplined work style.
Ability to close a sale.
Ability to build relationships with customers.

• Several recruiting sources exist.


ing th e
Manag orce
Sales F
Recruiting Sources

• Recommendations from • Searching the Web


current sales force • Working with college
• Employment agencies placement services
• Classified ads • Recruit from other
companies
in g t he
Manag e
s F o rc
Sale
• Seminars, sales meetings, and Web e-learning
form the basis of many sales training programs.
• Though expensive, training can yield dramatic
results.
• Training programs have several goals.
• Customer knowledge.
• The selling process.
• Company, product, and market knowledge.
• Online training is becoming more common.
i n g the
Manag Force
Sales

• Compensating salespeople involves a mix of


compensation elements:
• Fixed amount:
• Salary = stable income.
• Variable amount:
• Commissions or bonuses = performance reward.
• Expenses:
• Repays for job-related expenditures.
• Fringe benefits:
• Vacations, sick leave, pension, etc.
g i n g t he
Mana c e
s F o r
Sale
• Goal of supervision is to encourage salespeople to
“work smart” by:
• Helping them to identify customers and set call norms.
• Specifying time to be spent prospecting via:
• Annual call plan.
• Time-and-duty analysis.
• Helping salespeople to work more efficiently using sales force
automation systems.
• Laptops, smart phones, Webcams, wireless access.
a g i ng th e
Man
al es F o rce
S
• Selling and the Internet:
• The internet is the fastest-growing sales technology tool.

• Uses include training, servicing accounts, and conducting live


sales meetings with sales force or customers.
• The internet can save time and travel dollars and gives
salespeople a new tool.
• Sales 2.0 technologies are costly and can intimidate workers
or customers.
a g i ng th e
Man
al es F o rce
S

• Goal of motivating the sales force is to encourage salespeople


to “work hard.”

• Management can boost sales force morale and performance via:


• Organizational climate.
• Sales quotas.
• Positive incentives.
• Sales meetings.
• Sales contests.
a g i ng th e
Man
al es F o rce
S

• Evaluating salespeople and sales force performance


requires:
• Getting regular information from salespeople via sales reports,
call reports, and expense reports.

• Clear standards for judging performance.

• Providing constructive feedback to the salespeople that can


motivate them to perform.

• Return on sales investment should be assessed for the


sales force as a whole.
P er s o nal
The ess
g P ro c
Sellin
• Steps in the selling process include:

• Prospecting and qualifying:


• Identifying qualified potential customers.

• Pre-approach:
• Learning as much as possible about a prospective customer before making a sales
call.

• Approach:
• Meeting the customer for the first time.

• Presentation:
• Telling the “value story” to the buyer, showing how the firm’s offer solves
problems.
P er s o nal
The ess
g P ro c
Sellin

• Steps in the selling process include:


• Handling objections:
• Seeking out, clarifying, and overcoming customer
objections to buying.

• Closing:
• Asking the customer for an order.

• Follow-up:
• Following up after the sale to ensure customer satisfaction
and repeat business.
n al Sel l in g
o
The Pers ess
Proc

• Personal selling and managing customer


relationships:
• The selling process just covered is transaction
oriented.
• But building profitable relationships is a key goal for
most firms.
• Building relationships requires listening to customers,
understanding their needs, and carefully coordinating
the whole firm’s efforts to create value.
l e s P rocess:
The Sa ew
i
An Overv

Selling
Foundations
Initiating Developing Enhancing
Customer Customer Customer
Relationships Relationships Relationships
Selling
Strategy
r o c e ss:
S al e s P ns
The F ou n da t io
Se l l in g

In order to be successful in today’s global business


environment, salespeople must have a solid relationship building
foundation. They must:

Be Trustworthy

Behave Ethically

Understand Buyer Behavior

Possess Excellent Communication Skills


l e s P rocess:
The Sa rategy
t
Selling S

In order to be successful in today’s global business


environment, salespeople must also think and act strategically.
The must develop strategies for:

Each Sales Call

Each Customer
Their Sales Territories
Each strategy is
related to the other
es P roc ess
The Sal

• Prospecting
• Preapproach
• Presentation Planning
• Approaching the Customer

Initiating Developing Enhancing


Customer Customer Customer
Relationships Relationships Relationships

• Sales Presentation Delivery


• Earning Customer Commitment

Adding Value through Follow-up, Self-


leadership, and Teamwork

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