© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Learning Objectives LEARNING OBJECTIVES How does personal selling add value? What is the personal selling process? How do technology and the Internet affect personal selling? What are the key functions of a sales manager? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-2 Mary Kay Inc. Beauty Consultants Retain gross profits on each product Earn commissions on their sales teams © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-3 The Scope and Nature of Personal Selling Internet Telephone Face-to-face Teleconference © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-4 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 Sales Jobs Website © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-5 Personal Selling and Marketing Strategy Can customize the message for a specific buyer Assists in creating strong supply chain relationships Increased customer loyalty through relationship selling Gather research input from customers Crucial to the success of CRM © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-6 The Personal Selling Process © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-7 Step One: Generate and Qualify Leads Current Customers Trade Shows Sources of Leads Networking Events The Internet © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-8 Generate Leads Cold calls Telemarketing © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-9 Step Two: Preapproach Extends the qualification procedure Set goals for what is to be accomplished © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-10 Step Three: Sales Presentation and Overcoming Reservations The presentation Handling reservations © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-11 Aligning the Personal Selling Process with the B2B Buying Process © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-12 Step Four: Closing the Sale © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Getting the order Often most stressful part of sales process A “no” one day may be the foundation for a “yes” another 19-13 Step Five: Follow-Up Five Service Quality Dimensions Reliability Responsiveness Assurance Empathy Tangibles © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-14 Check Yourself 1. What are the steps in the personal selling process? 2. How does the selling process impact the business to business buying process? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-15 The Impact of Technology and the Internet on Personal Selling Instant access to their customers Access to customer research and information Training programs are more effective, easier to operate, less expensive Less time on order tracking Salesforce.com Website © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-16 Ethical and Legal Issues in Personal Selling The Sales Manager and The Sales Force The Salesperson The Sales Force and The Corporate Policy Customer © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin and 19-17 Issues for the Sales Force and Corporate Policy The firm may have a policy to sell goods or services to people who cannot afford them or to people who should not have them. © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-18 Issues for the Sales Person and the Customer Have you ever felt that you were treated unethically by a salesperson? What happened? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-19 Managing the Sales Force Sales training Recruiting and selecting salespeople Sales force structure Motivating and compensating salespeople Managing the Sales Force © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Evaluating salespeople 19-20 Sales Force Structure Company sales force Employees Established product lines Manufacturers representatives (independent agents) Not employees Smaller firms New markets © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-21 Salesperson Duties Order getter Order taker Sales support personnel © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-22 Recruiting and Selecting Salespeople Personality Empathy Selfmotivation Optimism Resilience © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-23 Recruiting for Success How does a firm that focuses on a fun product recruit salespeople who exhibit fun? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-24 Sales Training Selling and negotiation techniques Products and service knowledge Technologies used in the selling process Time and territory management Company policies and procedures © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-25 Motivating and Compensating Salespeople Financial rewards © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Nonfinancial rewards 19-26 Evaluating Salespeople Tied to the reward structure Evaluation measures can be either objective or subjective © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-27 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? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-28 Glossary Cold calls are a method of prospecting in which sales people telephone or go to see potential clients without appointments. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-29 Glossary A company sales force comprises people who are employees of the selling company. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-30 Glossary Manufacturer’s representatives are sales people who sell a manufacturer’s products on an extended contract basis but are not employees of the manufacturer. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-31 Glossary An order getter is a salesperson whose primary responsibilities are identifying potential customers and engaging those customers in discussions to attempt to make a sale. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-32 Glossary An order taker is a salesperson whose primary responsibility is to process routine orders or reorders or rebuys for products. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-33 Glossary The preapproach occurs prior to meeting the customer for the first time and extends the qualification of leads procedure. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-34 Glossary Relationship selling is a sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-35 Glossary Telemarketing is a method of prospecting in which sales people telephone potential customers without appointments. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-36 Glossary Trade shows are attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 19-37