Chapter 14: PERSONAL SELLING and SALES MANAGEMENT 14.1

2.1

Chapter 14:Chapter 14:

PERSONAL SELLINGPERSONAL SELLINGandand

SALES MANAGEMENTSALES MANAGEMENT

14.1

Personal SellingPersonal Selling

PERSONAL SELLING WILL DOMINATE THE PERSONAL SELLING WILL DOMINATE THE PROMOTIONAL MIX WHEN A BRAND IS:PROMOTIONAL MIX WHEN A BRAND IS:

Higher PricedHigher Priced Requires DemonstrationRequires Demonstration Tailored to Users’ NeedsTailored to Users’ Needs Involves a Trade-InInvolves a Trade-In Primarily Judged at Point-of-PurchasePrimarily Judged at Point-of-Purchase

14.214.2

Personal Selling Personal Selling (con’t)(con’t)

ROLE OF PERSONAL SELLINGROLE OF PERSONAL SELLING Market AnalysisMarket Analysis Sales ForecastSales Forecast New Product IdeasNew Product Ideas Buyer Behavior AnalysisBuyer Behavior Analysis CommunicationsCommunications Sales CoordinationSales Coordination Customer ServiceCustomer Service Customer Relations ManagementCustomer Relations Management

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TYPES OF PERSONAL SELLING TYPES OF PERSONAL SELLING Order TakingOrder Taking

Accepting OrdersAccepting Orders Scheduling ServicesScheduling Services

Creative SellingCreative Selling Team SellingTeam Selling Seminar SellingSeminar Selling System SellingSystem Selling

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TYPES OF PERSONAL SELLING (con’t)TYPES OF PERSONAL SELLING (con’t)

Supportive CommunicationsSupportive Communications

Missionary SalespersonMissionary Salesperson

Detail SalespersonDetail Salesperson

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SETTING OBJECTIVES FOR PERSONAL SELLINGSETTING OBJECTIVES FOR PERSONAL SELLING

Create Profitable Differential Competitive AdvantageCreate Profitable Differential Competitive Advantage Accord Uniqueness to Each Potential BuyerAccord Uniqueness to Each Potential Buyer Manage a Set of Buying-Selling Relationships for Manage a Set of Buying-Selling Relationships for Mutual BenefitMutual Benefit Control the CommunicationControl the Communication

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PERSONAL SELLING PROCESS PERSONAL SELLING PROCESS

PreparationPreparation

ProspectingProspecting

Initial Contact Begins the ProcessInitial Contact Begins the Process

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PERSONAL SELLING PROCESS (con’t)PERSONAL SELLING PROCESS (con’t) Presentation OptionsPresentation Options

Canned PresentationCanned Presentation Attention-Interest-Desire-Action (AIDA)Attention-Interest-Desire-Action (AIDA) Needs SatisfactionNeeds Satisfaction

Need DevelopmentNeed Development Need AwarenessNeed Awareness Need FulfillmentNeed Fulfillment

Consultive SellingConsultive Selling TelemarketingTelemarketing

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PERSONAL SELLING PROCESS (con’t)PERSONAL SELLING PROCESS (con’t) Handling ObjectionsHandling Objections Closing the SaleClosing the Sale

Trial CloseTrial Close Presumptive ClosePresumptive Close Straightforward Close: the Professional closeStraightforward Close: the Professional close

Follow-UpFollow-Up ShippingShipping InstallationInstallation FinancingFinancing

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NEW ENVIRONMENT FOR PERSONAL SELLINGNEW ENVIRONMENT FOR PERSONAL SELLING

Sophistication of Marketing PlanningSophistication of Marketing Planning Sales Force Automation (SFA)Sales Force Automation (SFA) Sales People Dealing with More Demanding BuyersSales People Dealing with More Demanding Buyers

14.1014.10

Sales ManagementSales Management

SITUATION ANALYSISSITUATION ANALYSIS External SituationExternal Situation Internal SituationInternal Situation

SET SALES OBJECTIVESSET SALES OBJECTIVES Broadest Level – Total Dollar Sales Broadest Level – Total Dollar Sales Next Level – Estimate Sales by Territory or Product Next Level – Estimate Sales by Territory or Product

LineLine Most Specific Level – Objectives Set by SalespersonMost Specific Level – Objectives Set by Salesperson

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Sales Management Sales Management (con’t)(con’t)

ESTABLISH A BUDGETESTABLISH A BUDGET Factors to Include: Recruiting, Training, Travel, Promo Materials, Factors to Include: Recruiting, Training, Travel, Promo Materials,

Salaries & Benefits, Incentive ProgramsSalaries & Benefits, Incentive Programs Methods:Methods:

% of Sales Approach% of Sales Approach Competitive-Parity ApproachCompetitive-Parity Approach Objective & TaskObjective & Task

Management Assesses ObjectivesManagement Assesses Objectives Budget Based on Objectives, Tasks for Sales Force are Budget Based on Objectives, Tasks for Sales Force are

Specified, Compensated For and Given IncentiveSpecified, Compensated For and Given Incentive All Costs Associated with Tasks Determined and Budgeted ForAll Costs Associated with Tasks Determined and Budgeted For This Method Relates Activities to CostThis Method Relates Activities to Cost

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SALES FORCE STRUCTURESALES FORCE STRUCTURE

Product Line StructureProduct Line Structure

Type of CustomerType of Customer

Geographic Territory StructureGeographic Territory Structure

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JOB DESCRIPTIONS AND QUALIFICATIONSJOB DESCRIPTIONS AND QUALIFICATIONS

RECRUITINGRECRUITING Sources of ApplicationsSources of Applications Attracting ApplicantsAttracting Applicants Screening and Evaluating ApplicantsScreening and Evaluating Applicants

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TRAININGTRAINING

Content of ProgramContent of Program

Duration of TimeDuration of Time

Training PersonnelTraining Personnel

Location of TrainingLocation of Training

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COMPENSATION AND MOTIVATIONCOMPENSATION AND MOTIVATION Straight SalaryStraight Salary Commission BasedCommission Based Combination PlansCombination Plans

MOTIVATIONMOTIVATION Task ClarityTask Clarity Recognition of Goal AttainmentRecognition of Goal Attainment Job EnrichmentJob Enrichment PerquisitesPerquisites

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EVALUATIONEVALUATION Draws on Objectives for Personal SellingDraws on Objectives for Personal Selling

Several Criteria on Which Sales Staff May Be JudgedSeveral Criteria on Which Sales Staff May Be Judged QuantitativeQuantitative QualitativeQualitative

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Documents

Chapter 14: PERSONAL SELLING and SALES MANAGEMENT 14.1