CHAPTER
PERSONAL
SELLING AND
SALES
MANAGEMENT
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-1
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
1. Discuss the nature and scope of
personal selling and sales management
in marketing.
2. Identify the different types of personal
selling.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-2
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
3. Explain the stages in the personal
selling process.
4. Describe the major functions of sales
management.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-3
SELLING THE WAY CUSTOMERS
WANT TO BUY
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Slide 17-4
SCOPE AND SIGNIFICANCE OF
PERSONAL SELLING AND
SALES MANAGEMENT
• Nature of Personal Selling and Sales
Management
Personal Selling
Sales Management
• Selling Happens Almost Everywhere
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-5
SCOPE AND SIGNIFICANCE OF
PERSONAL SELLING AND
SALES MANAGEMENT
• Personal Selling in Marketing
• Creating Customer Value Through
Salespeople: Relationship Selling
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Slide 17-6
FIGURE 17-A How salespeople create value
for customers
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Slide 17-7
Salesperson in the Operating Room
Why does Medtronic do this?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-8
Concept Check
1. What is personal selling?
A: Personal selling involves the twoway flow of communication between
a buyer and seller, often in a face-toface encounter, designed to influence
a person’s or group’s purchase
decision.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-9
Concept Check
2. What is involved in sales
management?
A: Sales management involves planning
the selling program and
implementing and controlling the
personal selling effort of the firm.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-10
THE MANY FORMS OF
PERSONAL SELLING
• Order Taking
Outside Order Takers
Inside Order Takers, Order Clerks,
or Salesclerks
Inbound Telemarketing
• Order Getting
Outbound Telemarketing
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Slide 17-11
FIGURE 17-B Comparing order takers with
order getters
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Slide 17-12
Frito-Lay Salesperson
An order taker or an order getter?
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Slide 17-13
FIGURE 17-1 How outside order-getting
salespeople spend their time each week
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-14
Concept Check
1. What is the main difference between an
order taker and an order getter?
A: An order taker processes routine orders or
reorders for products that were already sold by
the company. 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 their use of a product
or service.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-15
Concept Check
2. What percentage of an order-getting
salesperson’s time is spent selling?
A: About 53% (21.7% selling over the
phone and 31.5% selling face-toface).
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-16
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
• Personal Selling Process
• Prospecting
Lead
Prospect
Qualified Prospect
Cold Canvassing
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Slide 17-17
FIGURE 17-2 Stages and objectives of the
personal selling process
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Slide 17-18
Trade Show Exhibition
What stage in the personal selling process and
what is its purpose?
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Slide 17-19
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
• Preapproach
• Approach
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Slide 17-20
An American Salesperson and
Japanese Customer
In the approach stage, what issues to address?
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Slide 17-21
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
• Presentation
Stimulus-Response Format
• Stimulus-Response Presentation
• Suggestive Selling
Formula Selling Format
• Formula Selling Presentation
• Canned Sales Presentation
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-22
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
• Presentation
Need-Satisfaction Format
• Need-Satisfaction Presentation
• Adaptive Selling
• Consultative Selling
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-23
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
• Presentation
Handling Objections
• Acknowledge and Convert the Objection
• Postpone
• Agree and Neutralize
• Accept the Objection
• Denial
• Ignore the Objection
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Slide 17-24
FIGURE 17-C Techniques for handling
objections
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Slide 17-25
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
• Close
Trial Close
Assumptive Close
Urgency Close
Final Close
• Follow-Up
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Slide 17-26
A Reebok Salesperson and Customer
What type of presentation format and why use it?
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Slide 17-27
Concept Check
1. What are the six stages in the
personal selling process?
A: The six stages are: (1) prospecting,
(2) preapproach, (3) approach,
(4) presentation, (5) close, and
(6) follow-up.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-28
Concept Check
2. Which presentation format is most
consistent with the marketing
concept? Why?
A: The need-satisfaction presentation format
probing and listening by the salesperson to
identify needs and interests of prospective
buyers and then tailors the presentation to the
prospect and highlights product benefits,
consistent with the marketing concept.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-29
THE SALES MANAGEMENT PROCESS
• Sales Plan Formulation: Setting Direction
Sales Plan
Setting Objectives
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Slide 17-30
FIGURE 17-3 The sales management
process
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Slide 17-31
THE SALES MANAGEMENT PROCESS
• Sales Plan Formulation: Setting Direction
Organizing the Sales Force
• Geography
• Customer
Major (Key) Account Management
• Product
Developing Account Management Policies
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Slide 17-32
FIGURE 17-D Organizing the salesforce by
customer, product, and geography
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Slide 17-33
FIGURE 17-D1 Organizing the salesforce by
geography
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Slide 17-34
FIGURE 17-D2 Organizing the salesforce by
customer
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Slide 17-35
FIGURE 17-D3 Organizing the salesforce by
product
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Slide 17-36
FIGURE 17-4 Account management policy
grid
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Slide 17-37
THE SALES MANAGEMENT PROCESS
• Sales Plan Implementation: Putting the
Plan into Action
Salesforce Recruitment and Selection
• Job Analysis
• Job Description
Salesforce Training
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-38
FIGURE 17-5 U.S. sales force composition
and change
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Slide 17-39
FIGURE 17-5A U.S. sales force composition
and change
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-40
FIGURE 17-5B U.S. sales force composition
and change
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Slide 17-41
FIGURE 17-5C U.S. sales force composition
and change
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-42
THE SALES MANAGEMENT PROCESS
• Sales Plan Implementation: Putting the
Plan into Action
Salesforce Motivation and Compensation
• Straight Salary Compensation Plan
• Straight Commission Compensation Plan
• Combination Compensation Plan
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-43
Mary Kay Cosmetics Annual Sales Meeting
Why use nonmonetary compensation?
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Slide 17-44
THE SALES MANAGEMENT PROCESS
• Salesforce Evaluation and Control:
Measuring Results
Quantitative Assessments
• Sales Quota
Behavioral Evaluation
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Slide 17-45
THE SALES MANAGEMENT PROCESS
• Salesforce Automation and Customer
Relationship Management
Salesforce Automation (SFA)
Salesforce Computerization
Salesforce Communication
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Slide 17-46
Toshiba America Medical System
Why use salesforce automation technologies?
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Slide 17-47
Hewlett-Packard Salesperson
Why use home offices?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-48
Concept Check
1. What are the three types of selling
objectives?
A: (1) output-related (dollars or unit sales,
new customers, profit); (2) input-related
(sales calls, selling expenses); and
(3) behavioral-related (product
knowledge, customer service, selling, and
communication skills).
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-49
Concept Check
2. What three factors are used to
structure sales organizations?
A: geography, customer, and product or
service
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Slide 17-50
GOING ONLINE
GETTING THE SCOOP
ON SELLING
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Slide 17-51
Going Online
1. Visit the SMN site and do the
following:
Select a chapter topic, and update the
statistics for, say, sales training costs
or the popularity of different
salesforce incentives.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-52
Going Online
2. Select a topic covered in the chapter
such as telemarketing, and summarize
the critical issues identified for this
practice.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-53
VIDEO CASE 17
REEBOK:
RELATIONSHIP SELLING
AND CUSTOMER VALUE
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Slide 17-54
VIDEO CASE 17
Reebok
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Slide 17-55
VIDEO CASE 17
Reebok
1. How does Reebok create customer
value for its major accounts through
relationship selling?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-56
VIDEO CASE 17
Reebok
2. How does Reebok utilize team
selling to provide the highest level of
customer value possible to its major
accounts?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-57
VIDEO CASE 17
Reebok
3. Is Reebok’s salesforce organized
based on geography, customer, or
product?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-58
VIDEO CASE 17
Reebok
4. What are some ways Reebok’s selling
processes are changing due to
technical advancements?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-59
SUPPLEMENTAL
LECTURE NOTE 17-1
USING COMPANY
SALESPEOPLE OR
INDEPENDENT AGENTS
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Slide 17-60
FIGURE 17-E Break-even chart for
comparing independent agents and a
company salesforce
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Slide 17-61
SLN 17-1
Company Salespeople vs.
Independent Agents
Q. Would you recommend the company
switch to its own sales force? Why
or why not?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-62
SUPPLEMENTAL
LECTURE NOTE 17-2
DETERMINING THE SIZE OF
A COMPANY SALESFORCE
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Slide 17-63
SLN 17-2
Company Salesforce Size:
Workload Method
Q. How many salespeople does TDK
need?
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Slide 17-64
SUPPLEMENTAL
LECTURE NOTE 17-3
IQ VS. E-IQ AND
SMART SALESPEOPLE
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Slide 17-65
IN-CLASS ACTIVITY 17-1
PERSONAL SELLING
PROCESS: NEWS AMERICA
MARKETING
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Slide 17-66
SmartSource At-Shelf Sampling (Prospecting)
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Slide 17-67
SmartSource AudioInk (Preapproach)
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Slide 17-68
SmartSource Carts (Approach)
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Slide 17-69
SmartSource Coupon Machine (Presentation)
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Slide 17-70
SmartSource Electronic Shelftalk (Close)
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Slide 17-71
SmartSource Floortalk (Follow-up)
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Slide 17-72
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-73
Personal Selling
Personal selling involves the two-way
flow of communication between a buyer
and seller, often in face-to-face encounter,
designed to influence a person’s
or group’s purchase decision.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-74
Sales Management
Sales management involves planning the
selling program and implementing and
controlling the personal selling effort of
the firm.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-75
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.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-76
Order Taker
An order taker processes routine orders
or reorders for products that were already
sold by the company.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-77
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.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-78
Personal Selling Process
The personal selling process consists of
sales activities occurring before and after
the sale itself, consisting of six stages:
(1) prospecting, (2) preapproach,
(3) approach, (4) presentation, (5) close,
and (6) follow-up.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-79
Adaptive Selling
Adaptive selling is a need-satisfaction
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.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-80
Consultative Selling
Consultative selling is a needsatisfaction presentation format that
focuses on problem identification, where
the salesperson serves as an expert on
problem recognition and resolution.
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Slide 17-81
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.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 17-82
Major Account Management
Major account management is the
practice of using team selling to focus
on important customers so as to build
mutually beneficial, long-term,
cooperative relationships. Also called
key account management.
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Slide 17-83
Account Management Polices
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.
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Slide 17-84
Sales Quota
A sales quota contains specific goals
assigned to a salesperson, sales team,
branch sales office, or sales district for a
stated time period.
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Slide 17-85
Salesforce Automation
Salesforce automation (SFA) is the
use of computer, information,
communication, and Internet technologies
to make the sales function more effective
and efficient.
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Slide 17-86
