Principles of Marketing Lecture-36 Summary of Lecture-35 Personal Selling Personal selling is the personal communication of information to persuade somebody to buy something. Basic Sales Tasks The two types of personal selling The customers come to the salespeople. – Mostly involves retail-store selling. – Most salespeople fall into this category. The salespeople go to the customers. – Usually represent producers or wholesaling middlemen and sell to business users. – Some outside selling is relying more on telemarketing. Contributions of Personal Selling to Marketing Producing Sales Revenue Meeting Buyer Expectations Providing Marketplace Information Salesperson An individual acting for a company by performing one or more of the following activities: Prospecting, Communicating, Serving, and Information gathering. Salespeople Sales representatives Account executives Sales consultants Sales engineers Agents District managers Marketing representatives Account development reps Etc. Today’s Topics Sales Force Management 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. Steps in the Selling Process Step 1. Prospecting and Qualifying Step 2. Preapproach Step 3. Approach Step 4. Presentation/ Demonstration Identifying and Screening For Qualified Potential Customers. Learning As Much As Possible About a Prospective Customer Before Making a Sales Call. Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start. Telling the Product “Story” to the Buyer, and Showing the Product Benefits. Step 5. Handling Objections 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. Managing the Sales force Designing Sales force Strategy and Structure Recruiting and Selecting Salespeople Training Salespeople Compensating Salespeople Supervising Salespeople Evaluating Salespeople Designing sales force strategy and structure Types of Sales Force Structure Territorial Sales force structure Product Sales force structure Customer Sales force structure Complex Sales force structure Sales Force Size Other Sales Force Strategy and Structure Issues Who Will Be Involved in the How Will Sales and Sales Selling Effort? Support People Work Together? Outside Sales Force Inside Sales Force Team Selling Other Sales Force Strategy and Structure Issues Outside Sales Force Travel to Call on Customers Sells to Major Accounts Finds Major New Prospects Inside Sales Force Conduct Business From Their Offices Via Phone or Buyer Visits Technical Support People TeleMarketing Sales Or Assistants Internet Recruiting and Selecting Salespeople Some Characteristics of Salespeople Recruiting Procedures Salesperson Selection Process •Enthusiasm and SelfConfidence •Persistence •Initiative •Job Commitment •Current Salespeople •Employment Agencies •Classified Ads •College Campuses •Sales Aptitude •Analytical & Organizational Skills •Personality Traits •Other Characteristics Selecting Salespeople Sales Aptitude Other Characteristics Selection Process Usually Evaluates a Person’s Personality Traits Analytical and Organizational Skills 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 Compensating Salespeople Salary Benefits Components of Compensation Bonus Commission Enough for today. . . Summary Sales Force Management Steps in the Selling Process Managing the Sales force Designing Sales force Strategy and Structure Recruiting and Selecting Salespeople Training Salespeople Compensating Salespeople Supervising Salespeople Evaluating Salespeople Next…. Sales force Management (cont..) Direct Marketing Principles of Marketing Lecture-36