McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
MEET TODAY’S SALES PROFESSIONAL
Ms. Lindsey Smith – Molecular Imaging Products within the
Medical Diagnostic Division of GE Healthcare
• Skills & Qualifications necessary for success in sales careers
• Integrity, Motivation, Trust and Relationship Building,
and a Team Orientation
• ? and refining - Product Knowledge, analytical and
communication skills, and strategic thinking about
opportunities to more fully satisfy each customer’s
clinical, economic, and technical requirements
• Customers – Physicians (radiologists, neurologist,
cardiologists), medical technologist, nurses, health care
provider CEOs, CFOs and others
17-2
MEET TODAY’S SALES PROFESSIONAL
Her Philosophy
1. Creating Value thru every sales call & client ?
2. Serving her clients as a trusted ?
3. Emphasizing GE’s ? & innovation
4. Challenge as opportunities
17-3
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 17, YOU SHOULD BE ABLE TO:
LO1
Discuss the nature and scope of personal
selling and sales management in marketing.
LO2
Identify the different types of personal selling.
LO3
Explain the stages in the personal selling
process.
LO4
Describe the major functions of sales
management.
17-4
LO1
SCOPE AND SIGNIFICANCE OF PERSONAL
SELLING AND SALES MANAGEMENT

Personal Selling

Sales Management

Selling Happens Almost Everywhere
Cambridge Sales
• “Everyone Lives by Selling Something” – sales personnel from
manufacturing firms, real estate brokers, stockbrokers, sales clerks;
attorney, accountants, bankers, company personnel recruiters
17-5
Personal Selling
Personal selling is the two-way
flow of communication between
a buyer and seller, often in a
face-to-face encounter, designed
to influence a person’s or group’s
purchase decision.
17-6
Sales Management
Sales management consists of
planning the selling program and
implementing and evaluating the
personal selling effort of the firm.
17-7
LO1
SCOPE AND SIGNIFICANCE OF PERSONAL
SELLING AND SALES MANAGEMENT
PERSONAL SELLING IN MARKETING

Salespeople:
• 1) Link the Firm and Its Customers
• 2) Are the Firm in Consumers’ Eyes
• 3) Play a Large Role in the Marketing Program:
Especially when?
17-8
LO1
SCOPE AND SIGNIFICANCE OF PERSONAL
SELLING AND SALES MANAGEMENT
CREATING CUSTOMER VALUE

Salespeople & ?
•
Identify Creative Solutions
to Customer Problems
• Ease the Customer Buying Process
• Make the After-the-Sale Follow-Up
17-9
Relationship Selling
Relationship selling
is the practice of building ties
to customers based on a
salesperson’s attention and
commitment to customer needs
over time.
17-10
FIGURE 17-A Comparing order takers and
order getters
17-11
LO2
THE MANY FORMS OF PERSONAL SELLING
ORDER TAKING

Order Taker
• Outside Order Takers
• Inside Order Takers
 Order Clerks
 Sales
clerks
 Inbound
Telemarketing
17-12
LO2
THE MANY FORMS OF PERSONAL SELLING
ORDER GETTING

Order Getter
• Outside Order Getters
• Inside Order Getters
 Outbound Telemarketing
17-13
FIGURE 17-1 How outside order-getting
salespeople spend their time each week
17-14
FIGURE 17-2 Stages and objectives of the
personal selling process
17-15
LO3
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
1. PROSPECTING

Personal Selling Process

1. Prospecting Stage – the search for and qualification of
potential customers. Types of prospect…




?: a potential sales contact (individual or organization)
Prospect: a customer who wants or needs the product
? Prospect: An individual who wants the product, can afford to buy it and
is the decision maker
Cold Calling/ ?: open a directory  pick name  contact individual/buz
17-16
Personal Selling Process
The personal selling process
consists of sales activities occurring
before, during, and after the sale
itself, consisting of six stages:
(1) prospecting, (2) preapproach,
(3) approach, (4) presentation,
(5) close, and (6) follow-up).
17-17
LO3
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
2. PREAPPROACH

2. Preapproach Stage – after identifying a qualified prospect, prep
for sale begins with the preapproach: involves obtain further info
on the prospect and deciding the best ? of approach; how the
prospects prefers to be approached (what time? how?), ?
in a
product or service.
17-18
LO3
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
3. APPROACH

3. Approach Stage – initial meeting bet salesperson & prospect;
First impression through conversation with a reference to
common acquaintances, referral, or even the product or service
itself (=? talk: domestic vs. international)
• ?
• Gestures – handshakes, bow, buiz card,
Anything involving a person’s name
demand respect
17-19
LO3
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
4. PRESENTATION

Presentation Stage
17-20
LO3
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
4. PRESENTATION
• 1. Stimulus-Response Presentation
 ? Selling
• 2. Formula Selling Presentation
 ?
Sales Presentation – treat everyone same
• 3. Need-Satisfaction Presentation
 ? Selling
 Consultative Selling
Adjusting the presentation to
fit the selling situation
Focuses on problem identification as an
Expert on problem recognition & resolution
17-21
LO3
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
4. PRESENTATION (cont.)

Handling Objections – excuses for not making a purchase decision
• Acknowledge and Convert
• Postpone
• Agree and Neutralize
• Acceptance
• Denial
• Ignore
17-22
LO3
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
5. CLOSE

5. Close Stage – obtaining a purchase commitment from the prospect
• ? Close – ask about some aspect of
the purchase (model color)
• Urgency Close – last model,
low interest
• Assumptive Close – concerning
delivery, warranty, or financing term
• ? Close – ask for the order
17-23
LO3
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
6. FOLLOW-UP

6. Follow-up Stage – requires customer follow-up
• ?
• ?
17-24
FIGURE 17-3 The sales management
process involves sales plan formulation,
implementation, and evaluation
17-25
LO4
THE SALES MANAGEMENT PROCESS
SALES PLAN FORMULATION

Sales Plan

Setting Objectives
• Output-Related
• Input-Related
• Behaviorally-Related
17-26
LO4
THE SALES MANAGEMENT PROCESS
SALES PLAN FORMULATION

Organizing the Salesforce
• Structure of the Salesforce
 Customer
 Product
 Geography
• Major (Key) Account Management
17-27
FIGURE 17-B1 Organizing the salesforce by
geography
17-28
FIGURE 17-B2 Organizing the salesforce by
customer
17-29
FIGURE 17-B3 Organizing the salesforce by
product
17-30
MARKETING MATTERS
LO4
Creating and Sustaining Customer Value
Through Cross-Functional Team Selling
17-31
Major (Key) Account Management
Major (key) account
management is the practice of
using team selling to focus on
important customers so as to build
mutually beneficial, long-term,
cooperative relationships.
17-32
LO4
THE SALES MANAGEMENT PROCESS
SALES PLAN FORMULATION

Account Management Policies
• Whom to Contact
• Info to Collect
• Activities to Perform
17-33
Account Management Policies
Account management policies
specify whom salespeople should
contact, what kinds of selling and
customer service activities should
be engaged in, and how these
activities should be carried out.
17-34
FIGURE 17-4 An account management
policy grid grouping customers according
to the level of opportunity and a firm’s
competitive sales position
17-35
LO4
THE SALES MANAGEMENT PROCESS
SALES PLAN IMPLEMENTATION

Salesforce Recruitment and Selection
• Job Analysis
• Job Qualifications
• Job Description

Salesforce Training
• On-the-Job
• Other Methods
17-36
LO4
THE SALES MANAGEMENT PROCESS
SALES PLAN IMPLEMENTATION

Salesforce Motivation & Compensation
• Straight Salary
• Combination
• Straight Commission
• Nonmonetary
17-37
LO4
THE SALES MANAGEMENT PROCESS
SALESFORCE EVALUATION

Quantitative Assessments
• Input-Related
• Output-Related
 Sales Quota

Behavioral Evaluation
• Subjective Measures
• Customer Satisfaction
17-38
USING MARKETING DASHBOARDS
LO4
Tracking Salesperson Performance at
Moore Chemical & Sanitation Supply, Inc.
17-39
THE SALES MANAGEMENT PROCESS
LO4
SALESFORCE AUTOMATION AND CUSTOMER
RELATIONSHIP MANAGEMENT

Salesforce Automation (SFA)

Salesforce
Technology

Salesforce
Communication
• Internet
17-40
VIDEO CASE 17
XEROX: BUILDING CUSTOMER
RELATIONSHIPS THROUGH
PERSONAL SELLING
17-41
ICA#14
XEROX
17-42
VIDEO CASE 17
XEROX
1. Why was Anne Mulcahy’s experience as a sales
representative an important part of Xerox’s growth in
recent years?
Mulcahy had begun her career as a sales representative at
Xerox. Her experience helped her understand the
importance of delivering value to customers and the need
for a shift to a ? . Her years as a sales representative
also gave her credibility with the sales forces as changes
were being made.
17-43
VIDEO CASE 17
XEROX
2. How did the sales approach change after Mulcahy
became the CEO of Xerox?
:CEO Mulcahy said “We had lost our way in terms of
delivering value to customers”
“? ”  ?-
and
?- Oriented
17-44
VIDEO CASE 17
XEROX
3. (a) How does Xerox create customer value though
its personal selling process?
1. Identification  2. prepares for a presentation
by familiarizing their needs 3. In-depth
understanding of the clients’ needs to provide
the best solution  4. Sales presentation
reinforcing the benefits of the proposed
solution  5. Sales  6. after sales, continue
to meet and communicate
17-45
VIDEO CASE 17
XEROX
3. (b) How does Alison Capossela provide solutions
for Xerox customers?
: 50% - w/ customers, 25% - prep for proposals, 25%
- follow up activities
: ? collect and analyze info about competitors and
their products (e.g.,self-kit)
17-46
VIDEO CASE 17
XEROX
4. Why is the Xerox training program so important to
the company’s success?
8 weeks training at XU
Interactive training sessions & distance learning
Why important?
17-47
Order Taker
An order taker processes routine
orders or reorders for products
that were already sold by the
company.
17-48
Order Getter
An order getter sells in a
conventional sense and identifies
prospective customers, provides
customers with information,
persuades customers to buy, closes
sales, and follows up on customers’
use of a product or service.
17-49
Adaptive Selling
Adaptive selling is a needsatisfaction presentation format
that involves adjusting the
presentation to fit the selling
situation, such as knowing when
to offer solutions and when to
ask for more information.
17-50
Consultative Selling
Consultative selling is a
need-satisfaction presentation
format that focuses on problem
identification, where the
salesperson serves as an
expert on problem recognition
and resolution.
17-51
Sales Plan
A sales plan is a statement
describing what is to be achieved
and where and how the selling
effort of salespeople is to be
deployed.
17-52
Sales Quota
A sales quota consists of specific
goals assigned to a salesperson,
sales team, branch sales office,
or sales district for a stated time
period.
17-53
Salesforce Automation (SFA)
Salesforce automation (SFA)
is the use of computer,
information, communication, and
Internet technologies to make
the sales function more effective
and efficient.
17-54