Personal Communications:
Personal Selling,
Sales Management
Dr. John Gaskins
MARK 380 Principles of Marketing
Personal Selling &
Sales Management
Personal selling
• 2-way communications
• Very selective
• High control
• Most persuasive
• Most expensive per exposure
Sales management
• Plan & implement the sales program
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Relative Importance of
Personal Selling
Variable
Favors Personal Selling
Favors Advertising
Customer Geographically concentrated
Relatively small number
Product
Expensive
Technically complex
Custom made
Special handling
requirements
Transactions frequently
involve trade-ins
Geographically dispersed
Relatively large number
Inexpensive
Simple to understand
Standardized
No special handling
requirements
Transactions seldom
involve trade-ins
Price
Relatively high
Relatively low
Channels
Relatively short
Relatively long
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Selling Channels
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Sales Tasks
Order processing (Order taker)
Creative selling (Order getter)
Sales support
• Outbound: Field support rep
• Inbound: Customer service rep
Missionary selling
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Order Takers vs. Order Getters
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The Selling Process
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Trends in Selling
Relationship selling
Consultative selling
Sales force automation (SFA)
Team selling
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Sales Management Functions
Establish size & structure of the sales
force
Recruit & select salespeople
Train, motivate & supervise
salespeople
Forecast sales
Set quotas & compensation
Evaluate performance
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“Make or Buy”
the Sales Force?
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Organizing the Sales Force
“Territory Assignment”
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Sales Force Organization:
Major Account Organization
VP Sales
Eastern Region
Sales Manager
Major Account
Sales Manager
Western Region
Sales Manager
ACME Account
Manager
APEX Account
Manager
Pinnacle Account
Manager
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Sales Force Organization:
Sales Teams
Account
Manager
Account
Manager
Account
Manager
Computer
Hardware
Dept
Computer
Specialist
Computer
Specialist
Computer
Specialist
Software
Department
Software
Specialist
Software
Specialist
Software
Specialist
Test
Equipment
Department
Test
Equipment
Specialist
Test
Equipment
Specialist
Test
Equipment
Specialist
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Training the Sales Force
Principle methods
• In-house classes
• OJT
• Individual instruction
• External seminars
Techniques
• Role-playing exercises
• Lectures
• Videos, slides, films
• Interactive computer programs
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Motivating the Sales Force
Manager’s perception of rewards &
punishment vs. those of sales people
• “Perverse incentives”
Psychological encouragement
• Information sharing
• Contests & competitions
Financial encouragement
• Assignments should provide as equal
opportunity as possible
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Compensating the Sales
Force
Straight salary
• Steady, predictable income
• Encourages customer service & other
nonselling activities
Straight commission
• Ties income to performance
• Encourages selling
Combination plan
Draw
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How Salespeople Spend Time
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Evaluating Sales Force
Performance
Criteria
Almost
Never
Almost
Always
Checks deliveries for timely delivery
1
2
3
4
5
6
7
Files sales reports on time
1
2
3
4
5
6
7
Uses promotional materials &
corresponds with potential accounts
1
2
3
4
5
6
7
Monitors competitors’ activities
1
2
3
4
5
6
7
Brushes up on selling techniques
1
2
3
4
5
6
7
Reads marketing research reports
1
2
3
4
5
6
7
Prospects for new accounts
1
2
3
4
5
6
7
Makes service calls
1
2
3
4
5
6
7
Answers customer inquiries when they
occur
1
2
3
4
5
6
7
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Manager’s Role in
Ethics & Personal Selling
Determine policy
• What is ethical & unethical
• Investigate & take action
Other policies support ethics policies
• Performance measurement
• Compensation
Avoid teaching or encouraging highpressure or manipulative selling
techniques
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