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PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong
Chapter 16
Personal Selling and
Sales Management
 Copyright 1999 Prentice Hall
The Nature of Personal Selling
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• Involves an individual acting for a company by
performing one or more of the following activities:
–
–
–
–
Prospecting,
Communicating,
Servicing,
Information Gathering.
• The term salesperson covers a wide spectrum of
positions from:
– Order Taking (department store salesperson)
– Order Getting (someone engaged in creative selling)
– Missionary Selling (building goodwill or educating
buyers)
 Copyright 1999 Prentice Hall
The Role of the Sales Force
• Personal Selling is effective because
salespeople can:
– probe customers to learn more about their
problems,
– adjust the marketing offer to fit the special needs of
each customer,
– negotiate terms of sale,
– build long-term personal relationships with key
decision makers.
• The Sales Force serves as a critical link
between a company and its customers since
they:
– represent the company to customers, and
– represent customers to the company.
 Copyright 1999 Prentice Hall
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Managing the Salesforce
Designing Salesforce Strategy and Structure
Recruiting and Selecting Salespeople
Training Salespeople
Compensating Salespeople
Supervising Salespeople
Evaluating Salespeople
 Copyright 1999 Prentice Hall
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Designing Sales Force Strategy
and Structure
Types of Sales Force Structure
Territorial
Exclusive Territory to
Sell the Company’s
Full Product Line
Product
Sales Force Sells Along
Product Lines
Customer
Sales Force Sells Along
Customer/ Industry Lines
Complex
Combination of Above Types of Sales Force Structures
 Copyright 1999 Prentice Hall
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Designing Sales Force Strategy
and Structure
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Sales Force Size
Other Sales Force Strategy and Structure Issues
Who Will Be Involved in the
Selling Effort?
How Will Sales and Sales Support
People Work Together?
Outside Sales Force
Inside Sales Force
Team Selling
 Copyright 1999 Prentice Hall
Recruiting and Selecting
Salespeople
Some Characteristics
of Salespeople
Recruiting Procedures
Salesperson Selection
Process
•Enthusiasm and Self-Confidence
•Persistence
•Initiative
•Job Commitment
•Current Salespeople
•Employment Agencies
•Classified Ads
•College Campuses
•Sales Aptitude
•Analytical & Organizational Skills
•Personality Traits
•Other Characteristics
 Copyright 1999 Prentice Hall
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Training Salespeople
The Average Sales Training Program lasts for Four Months and
Has the Following Goals:
Help Salespeople Know & Identify
With the Company
Learn How the Products Work
Learn About Competitors’
and Customers’ Characteristics
Learn How to Make
Effective Presentations
Understand Field Procedures
and Responsibilities
 Copyright 1999 Prentice Hall
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Compensating Salespeople
Sales Force Compensation Plans Can Both Motivate
Salespeople and Direct Their Activities.
Salary
Benefits
Components
of
Compensation
Commission
 Copyright 1999 Prentice Hall
Bonus
Supervising Salespeople
Directing
Salespeople
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Motivating
Salespeople
• Identify Customer Targets
& Set Call Norms
• Organizational Climate
• Develop Prospect Targets
• Positive Incentives
• Sales Quotas
• Use Sales Time Efficiently
– Annual Call Schedule
– Time-and-Duty Analysis
– Sales Force Automation
– Honors
– Awards
– Merchandise/ Cash
– Trips
 Copyright 1999 Prentice Hall
How Salespeople Spend Their Time
Administrative
Service Calls
Tasks
12%
17%
Telephone
Selling
21%
Face-to-Face
Selling
30%
Waiting/
Traveling
20%
 Copyright 1999 Prentice Hall
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Companies
Look For Ways
to Increase the
Amount of
Time
Salespeople
Spend Selling.
Evaluating Salespeople
Expense
Reports
Call
Reports
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Sales
Report
Sources
of
Information
Annual
Territory
Marketing Plan
 Copyright 1999 Prentice Hall
Work
Plan
Steps in the Selling Process
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Step 1. Prospecting and Qualifying
Identifying and Screening For
Qualified Potential Customers.
Step 2. Preapproach
Learning As Much As Possible
About a Prospective Customer
Before Making a Sales Call.
Step 3. Approach
Knowing How to Meet the
Buyer to Get the Relationship
Off to a Good Start.
Step 4. Presentation/ Demonstration
Telling the Product “Story” to
the Buyer, and Showing the
Product Benefits.
 Copyright 1999 Prentice Hall
Steps in the Selling Process
Step 5. Handling Objections
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Seeking Out, Clarifying, and
Overcoming Customer
Objections to Buying.
Step 6. Closing
Asking the Customer for the
Order.
Step 7. Follow-Up
Following Up After the Sale to
Ensure Customer Satisfaction
and Repeat Business.
 Copyright 1999 Prentice Hall
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.
 Copyright 1999 Prentice Hall
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