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

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

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Page 1: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Personal SellingPersonal Selling

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

Page 2: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

How cost effective is each alternative?How cost effective is each alternative?

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

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

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

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

What information must be exchanged between firm and potential customer?What information must be exchanged between firm and potential customer?

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

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

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

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

What information must be exchanged between firm and potential customer?What information must be exchanged between firm and potential customer?

Determining the Role of Personal Selling

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

Page 3: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

PricePrice

• Final price negotiable

• Price provides adequate margin

• Final price negotiable

• Price provides adequate margin

Product or Service

Product or Service

• Complex goods or services

• Major purchase decisions

• Personal demonstration required

• Complex goods or services

• Major purchase decisions

• Personal demonstration required

ChannelsChannels

• Channel short and direct

• Training needed by intermediaries

• Selling needed to push product through

• Intermediaries can provide personal selling

• Channel short and direct

• Training needed by intermediaries

• Selling needed to push product through

• Intermediaries can provide personal selling

AdvertisingAdvertising

• Media do not provide an effective link

• Information can not be provided by media

• Sparse market reduce advertising economies

• Media do not provide an effective link

• Information can not be provided by media

• Sparse market reduce advertising economies

PricePriceProduct or Service

Product or Service ChannelsChannels

When the Sales Force is a Major Part of IMC

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

Page 4: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Selling activity limited to order-taking

Selling activity limited to order-takingProvider StageProvider Stage

Attempting to persuade customer to buy

Attempting to persuade customer to buyPersuader StagePersuader Stage

Seeking out buyers perceived to have a need

Seeking out buyers perceived to have a needProspector StageProspector Stage

Buyers identify problems to be met by goods

Buyers identify problems to be met by goods

Problem-solver Stage

Problem-solver Stage

Seller determines buyer needs and fulfills them

Seller determines buyer needs and fulfills themProcreator StageProcreator Stage

Buyers identify problems to be met by goods

Buyers identify problems to be met by goods

Problem-solver Stage

Problem-solver Stage

Seeking out buyers perceived to have a need

Seeking out buyers perceived to have a needProspector StageProspector Stage

Attempting to persuade customer to buy

Attempting to persuade customer to buyPersuader StagePersuader Stage

Selling activity limited to order-taking

Selling activity limited to order-takingProvider StageProvider Stage

Stages of Personal Selling Evolution

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

Page 5: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

SurveyingSurveying MapmakingMapmaking

GuidingGuidingFire StartingFire Starting GuidingGuiding

MapmakingMapmakingSurveyingSurveying

New Roles for Salespeople

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

Page 6: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Customer Relationship Management

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

The organization’s effort to develop a long term, cost effective link with individual customers for mutual benefit.

The organization’s effort to develop a long term, cost effective link with individual customers for mutual benefit.

Page 7: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

SAP Designs Software to Assists CRM

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

Page 8: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Keeping a Customer

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Page 9: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Following up and servicing the accountFollowing up and servicing the account

Closing the saleClosing the sale

Demonstrating capabilities of the productDemonstrating capabilities of the product

Recommending a way to satisfy themRecommending a way to satisfy them

Determining customers’ needs and wantsDetermining customers’ needs and wants

Locating prospective customersLocating prospective customers

Closing the saleClosing the sale

Demonstrating capabilities of the productDemonstrating capabilities of the product

Recommending a way to satisfy themRecommending a way to satisfy them

Determining customers’ needs and wantsDetermining customers’ needs and wants

Locating prospective customersLocating prospective customers

Personal Selling Responsibilities

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

Page 10: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

This is essentially a support roleThis is essentially a support roleThis is essentially a support roleThis is essentially a support role

Requires the most skill and preparationRequires the most skill and preparationRequires the most skill and preparationRequires the most skill and preparation

Must assess situation, determine needsMust assess situation, determine needs

This role is much more casualThis role is much more casual

Often involves straight rebuyingOften involves straight rebuying

May not actually take the orderMay not actually take the order

Often involves straight rebuyingOften involves straight rebuying

Must assess situation, determine needsMust assess situation, determine needs

This role is much more casualThis role is much more casual

Types of Sales Jobs

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

Creative Selling

Creative Selling

Order TakingOrder Taking

Missionary Sales Rep

Missionary Sales Rep

Page 11: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sales People Have Many Responsibilities

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

Page 12: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

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

Reach may be very limited

Reach may be very limited

Reach may be very limited

Reach may be very limited

Message can be tailored to recipientMessage can be

tailored to recipientMessage can be

tailored to recipientMessage can be

tailored to recipient

Two-way interaction with prospect

Two-way interaction with prospect

Two-way interaction with prospect

Two-way interaction with prospect

Prospect isn't likely to be distracted

Prospect isn't likely to be distracted

Prospect isn't likely to be distracted

Prospect isn't likely to be distracted

Cost is often extremely highCost is often

extremely highCost is often

extremely highCost is often

extremely high

Personal Selling Advantages and Disadvantages

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

Possible management-sales force conflict

Possible management-sales force conflict

Messages may be inconsistent

Messages may be inconsistent

Seller involved in purchase decision

Seller involved in purchase decision

Source of research information

Source of research information Potential ethical problemsPotential ethical problems

AdvantagesAdvantages DisadvantagesDisadvantages

Possible management-sales force conflict

Possible management-sales force conflict

Messages may be inconsistent

Messages may be inconsistent

Seller involved in purchase decision

Seller involved in purchase decision

Source of research information

Source of research information

Page 15: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

AdvertisingAdvertising

Public RelationsPublic Relations

Direct MarketingDirect Marketing

Sales PromotionSales Promotion

The InternetThe Internet

Sales PromotionSales Promotion

Direct MarketingDirect Marketing

Public RelationsPublic Relations

AdvertisingAdvertising

Personal Selling Combines With Other Tools

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

Personal Selling

Personal Selling

Page 16: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Personal Selling and Advertising Work Together

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

Page 17: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Creates goodwillCreates goodwill

Involved in communityInvolved in community

Representative of the organizationRepresentative of the organization

Rep is often best source of PRRep is often best source of PR

Involved in communityInvolved in community

Representative of the organizationRepresentative of the organization

Rep is often best source of PRRep is often best source of PR

Combining Personal Selling and PR

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

Page 18: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Companies Offer Direct Marketing Services to Assist the Personal Selling Effort

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

Page 19: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Reps introduce promotions to tradeReps introduce promotions to trade

Promotions used as selling aids for representative

Promotions used as selling aids for representative

Promotions often targeted to repPromotions often targeted to rep

Promotions used as selling aids for representative

Promotions used as selling aids for representative

Promotions often targeted to repPromotions often targeted to rep

Combining Personal Selling with Sales Promotions

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

Page 20: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Personal Selling and the Internet Work Together

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

Page 21: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Evaluating the Personal Selling Effort

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

Page 22: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The courage to changeThe courage to change

Consistent training that leads to consistent execution

Consistent training that leads to consistent execution

A clear link between company culture and value to sales strategies

A clear link between company culture and value to sales strategies

Rigorous management processes that drive performance

Rigorous management processes that drive performance

The strength of the field managerThe strength of the field manager

Consistent training that leads to consistent execution

Consistent training that leads to consistent execution

Rigorous management processes that drive performance

Rigorous management processes that drive performance

A clear link between company culture and value to sales strategies

A clear link between company culture and value to sales strategies

The strength of the field managerThe strength of the field manager

Characteristics Affecting Performances

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

Page 23: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Are communications objectives attained?Are communications objectives attained?

Are promo programs being implemented?Are promo programs being implemented?

Are follow-up activities conducted well?Are follow-up activities conducted well?

Provide good marketing intelligence?Provide good marketing intelligence?

Are promo programs being implemented?Are promo programs being implemented?

Are follow-up activities conducted well?Are follow-up activities conducted well?

Provide good marketing intelligence?Provide good marketing intelligence?

Criteria for Judging Personal Selling's Contribution

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 24: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Quantitative Measures of Sales Results

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

OrdersOrders

Sales VolumeSales Volume

MarginsMargins

Customer AccountsCustomer Accounts

Sales CallsSales Calls

Selling ExpensesSelling ExpensesSelling ExpensesSelling Expenses

Sales CallsSales Calls

Customer AccountsCustomer Accounts

MarginsMargins

Sales VolumeSales Volume

OrdersOrders

Customer ServiceCustomer Service

Quantitative Measures

Quantitative Measures

Page 25: Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Selling SkillsSelling SkillsSelling SkillsSelling Skills

Qualitative Measures of Sales Results

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

Sales Related Activities

Sales Related Activities