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Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Page 1: 18. personal selling

Personal Selling

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 2: 18. personal selling

How cost effective is each alternative?

How effective is each alternative in carrying out the needed exchange?

What are the alternative ways to carry out these communications objectives?

What information must be exchanged between firm and potential customer?

How effective is each alternative in carrying out the needed exchange?

What are the alternative ways to carry out these communications objectives?

What information must be exchanged between firm and potential customer?

1. Determining the Role of Personal Selling

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 3: 18. personal selling

Price

• Final price negotiable

• Price provides adequate margin

Product or Service

• Complex goods or services

• Major purchase decisions

• Personal demonstration required

Channels

• Channel short and direct

• Training needed by intermediaries

• Selling needed to push product through

• Intermediaries can provide personal selling

Advertising

• Media do not provide an effective link

• Information can not be provided by media

• Sparse market reduce advertising economies

PriceProduct or Service Channels

2. When the Sales Force is a Major Part of MC?

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 4: 18. personal selling

Selling activity limited to order-takingProvider Stage

Attempting to persuade customer to buyPersuader Stage

Seeking out buyers perceived to have a needProspector Stage

Buyers identify problems to be met by goods

Problem-solver Stage

Seller determines buyer needs and fulfills themProcreator Stage

Buyers identify problems to be met by goods

Problem-solver Stage

Seeking out buyers perceived to have a needProspector Stage

Attempting to persuade customer to buyPersuader Stage

Selling activity limited to order-takingProvider Stage

3. Stages of Personal Selling Evolution

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 5: 18. personal selling

Surveying Mapmaking

GuidingFire Starting Guiding

MapmakingSurveying

4. New Roles for Salespeople

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 6: 18. personal selling

Following up and servicing the account

Closing the sale

Demonstrating capabilities of the product

Recommending a way to satisfy them

Determining customers’ needs and wants

Locating prospective customers

Closing the sale

Demonstrating capabilities of the product

Recommending a way to satisfy them

Determining customers’ needs and wants

Locating prospective customers

5. Personal Selling Responsibilities

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 7: 18. personal selling

This is essentially a support roleThis is essentially a support role

Requires the most skill and preparationRequires the most skill and preparation

Must assess situation, determine needs

This role is much more casual

Often involves straight rebuyingOften involves straight rebuying

Must assess situation, determine needs

This role is much more casual

6. Types of Sales Jobs

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Creative Selling

Order Taking

Missionary Sales Rep

Page 8: 18. personal selling

7. 10 Traits of Effective Salespeople

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

1. Ego strength: a healthy self-esteem that allows one to bounce back from rejection.

2. Sense of urgency: wanting to get it done now.

3. Ego drive: a combination of competitiveness and self esteem.

4. Assertiveness: the ability to be firm, lead the sales process, and get one’s point across confidently.

5. Risk-taking: willing to innovate and take a chance.

Page 9: 18. personal selling

10 Traits of Effective Salespeople

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

6. Sociable: outgoing, friendly, talkative, and interested in others.

7. Abstract reasoning: ability to understand concepts and ideas.

8. Skepticism: a slight lack of trust and suspicion of others.

9. Creativity: the ability to think differently.10. Empathy: the ability to place oneself in

someone else’s shoes.

Page 10: 18. personal selling

Reach may be very limited

Reach may be very limited

Message can be tailored to recipient

Message can be tailored to recipient

Two-way interaction with prospect

Two-way interaction with prospect

Prospect isn't likely to be distracted

Prospect isn't likely to be distracted

Cost is often extremely highCost is often

extremely high

8. Personal Selling Advantages and Disadvantages

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Possible management-sales force conflict

Messages may be inconsistent

Seller involved in purchase decision

Source of research information Potential ethical problems

AdvantagesAdvantages DisadvantagesDisadvantages

Possible management-sales force conflict

Messages may be inconsistent

Seller involved in purchase decision

Source of research information

Page 11: 18. personal selling

Advertising

Public Relations

Direct Marketing

Sales Promotion

The Internet

Sales Promotion

Direct Marketing

Public Relations

Advertising

9. Personal Selling Combines With Other Tools

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Personal Selling

Page 12: 18. personal selling

10. Quantitative Measures of Sales Results

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Orders

Sales Volume

Margins

Customer Accounts

Sales Calls

Selling ExpensesSelling Expenses

Sales Calls

Customer Accounts

Margins

Sales Volume

Orders

Customer Service

Quantitative Measures

Page 13: 18. personal selling

Selling SkillsSelling Skills

11. Qualitative Measures of Sales Results

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sales Related Activities