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Personal Selling

McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Personal Selling

Determining the Role of Personal Selling

What information must be exchanged between firm and potential customer? What are the alternative ways to carry out these communications objectives? How effective is each alternative in carrying out the needed exchange?

How cost effective is each alternative?

Sales Force is a Major Part

Product or Service Price Channels Channel short and direct Training needed by intermediaries Selling needed to push product through Intermediaries can provide personal selling Advertising

Complex goods or services

Final price negotiable Price provides adequate margin

Media do not provide an effective link

Major purchase decisions

Personal demonstration required

Information cannot be provided by media

Sparse market reduces advertising economies

Stages of Personal Selling Evolution

Provider Selling activity limited to order-taking and delivery Attempting to persuade customer to buy Seeking out buyers perceived to have a need Buyers identify problems to be met by goods Seller determines buyer needs and fulfills them

Persuader

Prospector
Problem-solver Procreator

New Roles for Salespeople

Surveying Mapmaking

Fire Starting

Guiding

Customer Relationship Management

Relationship Marketing: The organizations effort to develop a long-term, costeffective link with individual customers for mutual benefit.

SAP Software Assists CRM

Keeping a Customer

Types of Sales Jobs

Assesses situation, determines needs

Creative Selling

Presents capability of satisfying needs Gets order

Order Taking

This role is much more casual Often involves straight rebuying Essentially a support role May not actually take the order

Missionary Sales

Personal Selling Responsibilities

Locating prospective customers Determining customers needs and wants Recommending a way to satisfy them Demonstrating product capabilities Closing the sale Following up and servicing the account

Sales People Have Many Duties

Test Your Knowledge

With the evolution of personal selling, an individual salesperson's job requirements may include:

A) Determining customers' needs and wants

B) Demonstrating the capabilities of the firm C) Following up and servicing the account

D) Locating prospective customers

E) All of the above

Traits of Effective Salespeople

1. Ego strength: a healthy self-esteem that allows one to bounce back from rejection. 2. Sense of urgency: wanting to get it done now. 3. Ego drive: a combination of competitiveness and self esteem. 4. Assertiveness: the ability to be firm, lead the sales process, and get ones point across confidently.

5. Risk-taking: willing to innovate and take a chance.

Traits of Effective Salespeople

6. Sociable: outgoing, friendly, talkative, and interested in others. 7. Abstract reasoning: ability to understand concepts and ideas.

8. Skepticism: a slight lack of trust and suspicion of others.

9. Creativity: the ability to think differently. 10. Empathy: the ability to place oneself in someone elses shoes.

Traits Buyers Like and Dislike

Desirable Traits Objectionable Traits

1. Knowledgeable 2. Empathizes 3. Well organized 4. Prompt 5. Follows through 6. Has solutions 7. Punctual 8. Hard working 9. Energetic 10. Honest

1. Unprepared 2. Uninformed 3. Aggressive 4. Undependable 5. No follow through 6. Presumptive 7. Walk-ins 8. Gabbers 9. Problem avoiders 10. No personal respect

Pros and Cons of Personal Selling

Advantages
Two-way interaction with prospect Message can be tailored to recipient Prospect isn't likely to be distracted Seller involved in purchase decision

Disadvantages
Messages may be inconsistent Possible managementsales force conflict

Cost is often extremely high Reach may be very limited

Potential ethical problems

Source of research information

Personal Selling + Other Tools

Advertising Public Relations

Personal Selling

Direct Marketing
Sales Promotion The Internet

Personal Selling + Advertising

Test Your Knowledge

By servicing an account and by cooperating and empathizing with clients, salespersons are engaging in _____ activities on behalf of their firm. A) Sales promotion B) Advertising C) Public relations D) Direct marketing E) Telemarketing

Personal Selling + PR
Rep is often best source of PR

Representative of the organization

Involved in community

Creates goodwill

Personal Selling + Direct Marketing

Personal Selling + Sales Promotion

Reseller

Sales Promotion Targets

Consumer Sales Force

Personal Selling + the Internet

Evaluating the Personal Selling Effort

Characteristics Affecting Performance

A clear link between company culture & value to sales strategies

The courage to change

The strength of the field manager

Rigorous management processes that drive performance

Consistent training that leads to consistent execution

Evaluating Personal Selling

Provides good marketing intelligence?

Are follow-up activities conducted well?

Are promo programs being implemented?

Are communications objectives met?

Test Your Knowledge

The ability of the sales force to feed back information regarding competitive programs and customer reactions contributes to the promotional program by fulfilling which evaluative criterion? A) Attainment of communications objectives B) Program implementation

C) Follow-up activities
D) Providing market intelligence E) None of the above

Quantitative Measures of Sales Results

Orders

Sales Volume
Margins
Quantitative Measures

Customer Accounts
Sales Calls

Selling Expenses
Customer Service

Qualitative Measures of Sales Results

Selling Skills

Sales Related Activities