1. Slides Personal Selling

Saeed Ur RehmanSaeed Ur Rehman

Introduction to Personal Introduction to Personal Selling & Selling & Sales ManagementSales Management

Introduction to Personal Introduction to Personal Selling & Selling & Sales ManagementSales Management

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Learning ObjectivesLearning Objectives

• Describe the nature of personal selling and Describe the nature of personal selling and changes about business shift to customer changes about business shift to customer orientation orientation

• Outline the role of sales force in each of Outline the role of sales force in each of marketing mix variablemarketing mix variable

• Define the critical role, tasks and activities Define the critical role, tasks and activities of field sales managers. of field sales managers.

• Asses sales management training and Asses sales management training and development activitiesdevelopment activities

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Personal Selling Personal Selling

• Person-to-person communication (prospect)

• Personal selling is a process of

• Developing relationships

• Discovering needs

• Matching products with needs

• Communicating benefits

• Viewed as a process that adds value

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Personal Selling Personal Selling

What do we sell ?

Broad Concept of ProductBroad Concept of Product

Includes:

• Information

• Services

• Ideas

• “Hard goods”

What is the main product the following companies offer?

P&G GilletteGillette Mobilink

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Discussion QuestionsDiscussion Questions

• What do you mean by sales? How do you define it?

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Definition of SalesDefinition of Sales

“ “ Profitable exchange of products, ideas Profitable exchange of products, ideas and services (against money”)in which and services (against money”)in which both the seller and the buyer have both the seller and the buyer have mutual confidence, satisfaction and long mutual confidence, satisfaction and long lasting relationship”lasting relationship”

The Nature of Personal SellingThe Nature of Personal Selling

• Critical aspect of a firm’s promotional strategy.

• Major factor to generate sales volume if

• Brings human element into marketing transactions.

• Develops customer confidence.

• Allows buyer to act immediately.

• Simplifies the handling of customer’s problems

The role and nature of the business function Sales Managers MUST SUPERVISE

Human Element is critical

• Salespeople , customer face to face dealing.

• Long-lasting partnership is created

• Salespeople sell more than a product.

• Familiarity/friendship develops between salesperson and customer.

• Salesperson becomes company for customer.

Personal Contact puts more influence on buyer compare to advertising message


The Customer’s Confidence

• Salespeople play important role to gain or enhance customer confidence.

• Being more professional

• Offering relevant products

• Delivery timing, fulfill commitments

• Salespeople sell more than a product.

Developing long –term relationship, based on trust is essential to sales & marketing success


Customer Can Act Immediately

• Customer can work for a desired action .

• In- store promotion for product

• Becomes difficult for customer to delay

• Opportunity for salesperson to get the required decision on the spot.

Developing long –term relationship, based on trust is essential to sales & marketing success


Customers Are Treated As Individual

• All preceding of personal selling are important .

• Most valuable is personal contact (rep/customer)

• Customized sales presentation

• Easy to handle buyer’s problems complaints

• Helps to identify each customer’s needs or problem and to respond individually.

• Value added or extra benefit that salesperson can provide

The value addition is the difference sales success & failure in today’s competitive markets


The Modern view of personal selling

• Salespersons are more than persuaders & negotiators.

• Must act as a problem solver.

• Meet the needs & conditions of individual customers.

• Must build & maintain relationship with customer.

• So, modern personal selling is creative & flexible.

• Companies have changed their hiring, training and supervision methods to adapt the new market conditions

Change in SellingChange in Selling

The Modern view of personal selling

• General recognition that personal selling is more than just making a sales.

• Sales reps & sales managers are involved in other important aspects of total marketing process.

• Distribution, credit, promotion of the product and pricing.

• With change in the role of personal selling, sales management has become more important to company success.

Sales managers have become the critical link between a firm’s marketing strategy and what

takes place in the buyer’s office


Marketing Concept

• Modern marketing concept is based on three major propositions

- Customer orientation

- Coordination of all customer related activities

- Profit direction


Marketing Concept

1. Customer orientation

• Focal point of modern marketing.

• Shift from an internal company prospective to the customer’s view point.

• Successful marketing requires complete understanding of customers, their needs, attitudes and buying behavior.


Marketing Concept

2. Coordination

• Between all customer serving functions is second fundamental point. (Big order, production schedule, delivery arrangements)

3. Profits

• Are the goals of business unit.

• Selling products without reasonable profit ?

• Satisfying customer need s is the means to achieve sales and profit.

• Sales reps and managers must control cost and generate sales volum for acceptable level of profitability.


Modern Sales Approaches

1. Partnering

• Salespeople sharing the value with their customers

• Clearly understand and anticipate customer’s need and as partner - have moved from pure selling to mutually supporting role

2. Relationship selling

• Don’t sell product only.

• Develop association, relations

• This relationship further strengthens as sales rep provides more services, identifies and satisfies needs, develops stronger contacts with customer


Modern Sales Approaches

3. Team Selling - For large customers with complex need, salespeople MUST work with other colleagues to provide coordinated approach. Conventional independent sales approaches do not meet large, complex purchasing requirements

4. Value Added Selling - Salespeople are expected to exceed their customers expectation. Must go beyond selling products and provide value added services for demanding customers,(Installation, employee training)

5. Consultative Selling - Act as consultants, problem solver and MUST adapt their product or services to specific needs of customer


The Role of Personal Selling The Role of Personal Selling in The Marketing Mixin The Marketing Mix

The Role of Personal Selling The Role of Personal Selling in The Marketing Mixin The Marketing Mix

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Personal Selling in The Marketing MixPersonal Selling in The Marketing Mix Personal Selling in The Marketing MixPersonal Selling in The Marketing Mix

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Marketing Mix Marketing Mix

Strategies that a company utilizes to implement its Strategies that a company utilizes to implement its marketing plan and pursue its marketing objectivesmarketing plan and pursue its marketing objectives

Marketing Mix Marketing Mix

Strategies that a company utilizes to implement its Strategies that a company utilizes to implement its marketing plan and pursue its marketing objectivesmarketing plan and pursue its marketing objectives

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The Marketing MixThe Marketing Mix

Product Strategy

Sales people are helpful

• Specify desirable products features & benefit

• Provide guidance during product development phase.

• Participate in product testing and test marketing because of their familiarity with market place.

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The Role of Personal Selling The Role of Personal Selling The Role of Personal Selling The Role of Personal Selling

Pricing Strategy

Sales people and sales managers can assist pricing in number of ways

• Competitive pricing strategies

• Gauge market reaction to alternative price reaction

• Can advise/suggest senior management in pricing decision as per market conditions

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Method - Pricing StrategyMethod - Pricing Strategy

• Cost plus method

- Markup of profit is added to the product’s cost

• Demand oriented

- Profit markup is based on what the traffic will bear

• Competition oriented

- Profit is based on competitors price

Parity products – Priced at or below competitors

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Promotional Strategy

• Presentation of informative and persuasive messages to the target market to stimulate Sales

• Personal selling is vital ingredient of this effort working in conjunction with advertising, sales promotion & public relation.


Nothing happens until somebody sells something

Distribution Strategy

• Channel of distribution - Route a product takes from producer to ultimate user

• Direct Distribution - Form of ownership transfer in which the ultimate buyer acquires title directly from the manufacturer of the product

• Indirect Distribution - Form ownership transfer involving the use of intermediaries who buy and resell the merchandise.

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Distributor

Wholesaler Retailer

Consumer

Distribution Channel

Wholesaler Retailer

Consumer

Distribution Channel

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Dimensions of Sales ManagementDimensions of Sales Management

• The preceding discussions pointed out the sales force provides an organization with its most vital link to the marketplace

- Connects the company with the customers it serve

- Derives its ability to survive and grow

- In a well- conceived and executed sales. management plan.

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Dimensions of Sales ManagementDimensions of Sales Management

• The preceding discussions pointed out the sales force provides an organization with its most vital link to the marketplace

- Long run benefits for company & customer

- Informs the company about buyer’s needs

- Assures the buyers that the company is willing to satisfy them

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Tasks of Sales ManagersTasks of Sales Managers

• Sales management can be defined as the management of a firm’s personal selling function.

• Sales management’s tasks are analysis, planning, organization, implementation/direction & control of the company’s sales activity

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• Analysis – Review of internal sales record, sales reports, investigation of market trends and relevant environmental factors

• Planning – Setting objectives for the firm’s sales efforts and mapping out strategies and tactics to achieve these objectives

• Organization – Setting up structures and procedures for smooth and effective execution of sales plan

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• Implementation/Direction – Staffing and supervision of the day-to-day implementation of sales strategies, policies and plans

• Control – Performance comparison of actual and planned sales results, observation/reasons if any and evaluation of the need for plan revision

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Top ManagementAdvertising

Other internalInformation sources

Regulatory AgenciesRegulatory Agencies

CustomersCustomers

Trade groupsTrade groups

Research & Development

Human Resource

Sales Manager

Sales force

SuppliersSuppliers

CompetitorsCompetitorsOther external sourcesOther external sources

Finance & Accounting

Production

Internal Organizational Environment

External Environment

Sales Manager’s Boundary Spanning Role Sales Manager’s Boundary Spanning Role Sales Manager’s Boundary Spanning Role Sales Manager’s Boundary Spanning Role

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Field Sales ManagerField Sales Manager

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Field Sales Manager’s ActivitiesField Sales Manager’s Activities

Analyze the conditions of selling situation

• Review individual sales records and performance of salespersons.

• Asses specific market trends and condition

• Note relevant environment factors and trends

Plan for the immediate situation & long run

• Establish specific sales objectives and develop strategies and procedures to attain these objectives.

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Organize the sales team to achieve objectives

• Break the selling task and supporting activities into operation parts (jobs)

• Create specific job descriptions for these tasks and activities

• Recruit and select personnel for these jobs

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Oversee the operations of sales teams to improve its performance

• Issue the necessary directions and guidelinesIssue the necessary directions and guidelines

• Provide the conditions of motivation (incentives) for Provide the conditions of motivation (incentives) for performersperformers

• Train and coach sales team members for better sales Train and coach sales team members for better sales performance.performance.

• Assure the attainment of acceptable level of sales conduct Assure the attainment of acceptable level of sales conduct and ethical behavior and ethical behavior

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Evaluate sales performance

• Create/set/establish/administer performance standards and measurement

• Collect and analyze performance information against standards

• Take indicated remedial actions

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Qualities - Field Sales ManagementQualities - Field Sales Management

Sales Reps

• Territory Management

• Sharp analytical skill to reviewing the potential of their customer and territories

• Identify prospects and their needs

• Rout planning and call pattern

• Effective sales presentation

• The ability to organize varied responsibilities and activities in a systematic, efficient & effective manner

• Achieve objectives, sales quotas

Field sales reps do not manage themselves well . They can not be managed by system, no

matter how sophisticated or automated

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Field Sales Managers

• Management of a field sales team is both an art Management of a field sales team is both an art and science, requiring a delicate balance between and science, requiring a delicate balance between subjective creativity and objective detachmentsubjective creativity and objective detachment

• Product & technical knowledge & capacity to Product & technical knowledge & capacity to conceptualizeconceptualize

• Decisiveness in handling the conflicts, problems Decisiveness in handling the conflicts, problems and demands brought before themand demands brought before them

• Patience and dedication to listeningPatience and dedication to listening

Field sales managers MUST demonstrate, by their actions as well as their statements, a high level of

ethical behavior

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Traits for first level Sales Managers

• Motivation – Enthusiasm to all major task Motivation – Enthusiasm to all major task

• Human relation skillsHuman relation skills

• Higher than average energyHigher than average energy

• Ambition – Strong personal desire to achieve and Ambition – Strong personal desire to achieve and advanceadvance

• Persuasiveness – interest in persuasive involvementPersuasiveness – interest in persuasive involvement

• Behavior flexibilityBehavior flexibility

• Intellectual abilityIntellectual ability

• Personal impact - CharismaPersonal impact - Charisma

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Selling to ManagingSelling to Managing

• Most sales managers – Former salespeopleMost sales managers – Former salespeople

• Must make the transition from selling to managingMust make the transition from selling to managing

• An old myth – top performerAn old myth – top performer

• Proved wrong, time and againProved wrong, time and again

Salesperson – DoerSalesperson – Doer

Sales Manager ?Sales Manager ?

Critical difference - Selling & ManagingCritical difference - Selling & Managing

Activity Sales Rep Sales Manager

Primary responsibility Develop accounts Develop people

Working relationship Alone Through others

Role Player Coach

Part of management No Yes – must sell the company plan to reps

Diversity of responsibility Make call, sell & service Develop people, recruit select, train, motivate, compensate, run branch office, manage key accounts, correspond, interact with other departments

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Sales Management Training & DevelopmentSales Management Training & Development

Survey of human resource specialist identified increased Survey of human resource specialist identified increased training for first level managers & supervisors as one of training for first level managers & supervisors as one of industry’s most pressing need.industry’s most pressing need.

• Keeps them competitiveKeeps them competitive

• Management training helps to retain good peopleManagement training helps to retain good people

Most important Training Needs (First level managers)Most important Training Needs (First level managers)

• Communication SkillsCommunication Skills

• Team BuildingTeam Building

• Performance Management SkillsPerformance Management Skills

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Survey of sales training by Princeton Research & Survey of sales training by Princeton Research & Consulting Center emphasizes “ Great Need” for Consulting Center emphasizes “ Great Need” for sales management training. Most important Area of sales management training. Most important Area of TrainingTraining

• How to motivate sales peopleHow to motivate sales people

• Effective time managementEffective time management

• How to coach & train salespeopleHow to coach & train salespeople

• How to listen for understandingHow to listen for understanding

• How to make transition to sales managerHow to make transition to sales manager

• How to be an effective sales managerHow to be an effective sales manager

• How to make an effective presentationHow to make an effective presentation

• How to manage negotiation processHow to manage negotiation process


There is also growing need for sales management There is also growing need for sales management training in other industries like Banking that trying to training in other industries like Banking that trying to develop a sales culturedevelop a sales culture

• Started recognizing the need for ongoing sales Started recognizing the need for ongoing sales management training for branch managersmanagement training for branch managers

• Banks are attempting to develop coaching and other Banks are attempting to develop coaching and other skills skills

• Upper management also needs training to gain Upper management also needs training to gain understanding of the role of selling and sales understanding of the role of selling and sales management in banking.management in banking.

The most important reason for sales management training is to enhance career development as training is the key to help a sales person make difficult transition

THANKS

Documents

1. Slides Personal Selling