Professional Documents
Culture Documents
What is Marketing
Marketing is identifying and satisfying customers needs profitably.
Personal Selling
The Role of the Sales Force
Personal selling is the interpersonal part of the promotion mix and can include: Face-to-face communication Telephone communication Video or Web conferencing
Personal Selling
The Nature of Personal Selling
Salespeople are an effective link between the company and its customers to produce customer value and company profit by:
Representing the company to customers Representing customers to the company Working closely with marketing
Variable Consumer
Conditions That Favor Personal Selling Geographically concentrated Relatively low numbers Expensive Technically complex Custom made Special handling requirements Transactions frequently involve trade-ins Relatively high Relatively short
Conditions That Favor Advertising Geographically dispersed Relatively high numbers Inexpensive Simple to understand Standardized No special handling requirements Transactions seldom involve trade-ins Relatively low Relatively long
Product
Price Channels
Sales Tasks
Three basic sales tasks can be identified:
Order Processing Creative Selling Missionary sales
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Order Processing: selling, mostly at the wholesale and retail levels, that involves identifying customer needs, pointing them out to customers, and completing orders Creative Selling: personal selling involving situations in which a considerable degree of analytical decision making on the buyers part results in the need for skillful proposals of solutions for the customers needs Missionary sales: indirect type of selling in which specialized salespeople promote the firms goodwill among indirect customers, often by assisting customers in product use
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Training
Principal methods used are onthe-job training, individual instruction, in-house classes, and external seminars Popular training techniques include instructional videotapes/DVDs, lectures, roll-playing exercises, slides, films, and interactive computer programs
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Organization
General organizational alignment may be based on geography, products, types of customers, or some combination of these factors National accounts organization: organizational arrangement that assigns sales teams to a firms largest accounts
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Supervision
Span of control: the number of sales representatives who report to the first level of sales management Optimal span of control is affected by such factors as complexity work activities being performed, ability of the individual sales manager, degree of interdependence among individual salespersons, and the extent of training each salesperson receives
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Motivation
Efforts to motivate salespeople usually take the form of the briefings, information sharing, and both psychological and financial encouragement Psychological encouragement includes appeals to emotional needs, recognition, and peer acceptance Financial encouragement includes monetary rewards and fringe benefits such as club memberships and sales contest awards Expectancy theory
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Compensation
Commission: incentive compensation directly related to the sales or profits achieved by a salesperson Salary: fixed compensation payments made periodically to an employee
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Sales support salespeople are not directly involved in concluding customer purchases. They support the personal product selling function by promoting a product or providing technical support.
Technical Support
Technical support salespeople have expertise in areas such as design and installation of complex equipment and may provide specialized training to customer employees.
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Members of the sales force who concentrate on selling new products or selling to new customers are called new-business salespeople.
Existing Business
Existing-business salespeople, sometimes called order takers, include wholesaler reps who follow an established route, writing up fairly routine orders from their customers.
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Direct-to-consumer salespeople sell to individuals who personally use the products and services. Several additional million direct-toconsumer salespeople represent firms such as Avon, Tupperware, Amway, and other direct-selling companies.
Term sales representative covers a broad range of positions Six can be distinguished, ranging from the least to the most creative types of selling: 1. Deliverer-A salesperson whose major task is the delivery of a product (water, fuel, oil). 2. Order taker-A salesperson who acts predominantly as an inside order taker (the salesperson standing behind the counter) or outside order taker (the soap salesperson calling on the supermarket manager). 3. Missionary-A salesperson who is not expected or permitted to take an order but whose major task is to build goodwill or to educate the actual or potential user (the medical "detailer" representing an ethical pharmaceutical house).
4. Technician - A salesperson with a high level of technical knowledge (the engineering salesperson). 5. Demand creator-A salesperson who relies on creative methods for selling tangible products (vacuum cleaners, cleaning brushes, household products) or intangibles (insurance, advertising services, or education). 6. Solution vendor - A salesperson whose expertise is in the solving of a customer's problem, often with a system of the company's products and services (for example, computer and communications systems).
The starting point for sales management is developing a sales strategy to execute the firms marketing strategy, It emphasizes the development of a marketing mix to appeal to defined target markets. A sales strategy focuses on how to sell to specific customers within those target markets. Two key elements of a sales strategy are a relationship strategy and a sales channel strategy.
Should salesforce be generalists or specialists? If specialists, should they be product, market, customer, or functional specialists? Should centralized or decentralized control be used? How large should the salesforce be? How should customers and geographic areas be assigned to form sales territories? How should salesforce turnover be factored into sales organization design decisions?
Recruiting is the process of finding prospective job candidates Selecting involves choosing the candidates to be hired Initial training, which typically focuses on product knowledge and sales techniques Continual training for all salespeople is becoming more standard as firms attempt to stay current and competitive in an ever-changing environment.
Directing salespeople to meet goals and objectives consumes much of the typical sales managers time. These activities include:
Sales managers must establish standards by which performance and effectiveness are measured, evaluate performance and effectiveness against these standards, and then take appropriate follow-up action.
Salesperson performance refers to how well individual sales people meet job expectations. An evaluation of sales force effectiveness is in fact an assessment of the entire sales organization.
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