chapter nineteen personal selling and sales management Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. LEARNING OBJECTIVES LO 19-1 Describe the value added of personal selling. LO 19-2 Define the steps in the personal selling process. LO 19-3 Describe the key functions involved in managing a sales force. LO 19-4 Describe the ethical and legal issues in personal selling. 19-2 The Scope and Nature of Personal Selling Internet Telephone Face-to-face Teleconference 19-3 Professional Selling as a Career • People love the lifestyle • There is a lot of flexibility • There is a lot of variety in the job • Can be very lucrative • Very visible to management and good for promotions ©Royalty-Free/Corbis Sales Jobs Website 19-4 The Value Added by Personal Selling • Salespeople Provide Information and Advice • Salespeople Save Time and Simplify Buying • Salespeople Build Relationships ©Royalty-Free/Corbis 19-5 The Personal Selling Process Generate and qualify leads Preapproach Closing the sale Follow-up Sales presentation and overcoming reservations 19-6 Step 1: Generate and Qualify Leads Current Customers Trade Shows Sources of Leads Networking Events The Internet 19-7 Generate Leads Cold calls Telemarketing ©Royalty-Free/Corbis 19-8 Step 2: Preapproach Extends the qualification procedure Set goals for what is to be accomplished ©Royalty-Free/Corbis 19-9 Step 3: Sales Presentation and Overcoming Reservations The Presentation Handling Reservations Klaus Tiedge/Blend Images/Getty Images 19-10 Aligning the Personal Selling Process with the B2B Buying Process Personal selling process B2B buying process Generate and qualify leads Need recognition Product specification Preapproach RFP process Sales presentation and overcoming reservations Proposal analysis and supplier selection Closing the sale Order specification Follow-up Performance assessment 19-11 Digital Vision/Getty Images Step 4: Closing the Sale • Getting the order • Often most stressful part of sales process • A “no” one day may be the foundation for a “yes” another 19-12 Step 5: Follow-Up Five Service Quality Dimensions Reliability Responsiveness Assurance Empathy Tangibles 19-13 check yourself 1. Why is personal selling important to an IMC strategy? 2. What are the steps in the personal selling process? 19-14 Managing the Sales Force Sales training Motivating and compensating salespeople Recruiting and selecting salespeople Sales force structure Managing the Sales Force Evaluating salespeople 19-15 Sales Force Structure Company sales force Manufacturers representatives (independent agents) Employees Not employees Established product lines Smaller firms New markets 19-16 Salesperson Duties Order getter Order taker Comstock Images /Jupiter images. Sales support personnel 19-17 Recruiting and Selecting Salespeople Personality Empathy Selfmotivation Optimism Resilience 19-18 Recruiting for Success How does a firm that focuses on a fun product recruit salespeople who exhibit fun? ©Stockbyte/PunchStock 19-19 Sales Training Selling and negotiation techniques Products and service knowledge Technologies used in the selling process Time and territory management Company policies and procedures 19-20 Motivating and Compensating Salespeople GRANTLAND® Copyright Grantland Enterprises; www.grantland.net Financial rewards Nonfinancial rewards 19-21 Evaluating Salespeople • Tied to the reward structure • Evaluation measures can be either objective or subjective BananaStock/PictureQuest 19-22 check yourself 1. What do sales managers need to do to successfully manage their sales force? 2. What is the difference between monetary and nonmonetary incentives? 19-23 Ethical and Legal Issues in Personal Selling The Sales Manager and the Sales Force The Sales Force and Corporate Policy The Salesperson and the Customer 19-24 check yourself 1. What are three areas of personal selling in which ethical and legal issues are more likely to arise? 19-25