18Personal Selling

Professor Close

Introduction to Personal Selling (1)• Importance: almost every company can

benefit from personal selling– 10% of workforce (how many have? How

many would like to?)– Often largest operating expense (up or out;

car dealers)– Customer contact (info & customer

impressions)

Introduction to Personal Selling (2)• Sales management: decisions

– Sales force• # (of salespeople; big issues with commissions,

customers and turnover)• Compensation

– Straight salary: most security, control, and simplicity– Straight commission (most incentive)

» Direct: Salary» Indirect: part of firm earnings

Introduction to Personal Selling (3)– Compensation (cont…)

• Align incentive with firm interest (Sears)• Combination: most popular (some security and

incentive)

• Supervision (Nadler and Golf)• Skills/training (Jennifer @ Olde)

– Can you learn? Some product info and customer needs (indstr; Nadler: uniforms, face lift)

– Why not train?

Introduction to Personal Selling (4)

• Who to serve?– Sales territory: geographic area; clear

responsibility (overlap; lead in another)– Major accounts: special treatment for large

(fleet sales for cars)

Introduction to Personal Selling (5)• Selling techniques

– Customers ≠ (80-20 rule)– 3 sales presentations

• Prepared: more talk, canned leads to trial close, low skill (telemarketing)

• Consultative: listen, less talk, help solve problems, customers differ, high skill

• Selling formula: start prepared then steps outlined

Job of Personal Selling (1)

• Duties:– Order getting: without order getters, many of

the products we now rely on – ranging from mutual funds to air conditioners – might have died in the market introduction stage

• Seek new clientele with sales presentation• Prospecting: follow all leads (allocate time on

potential) – insurance, graduate

Geico Commercial

Job of Personal Selling (2)

• Duties (cont…)– Order taking

• Serve current customers and complete routine sales

• Regular route and customers (relationships as much as selling: Brian Allen)

• Low aggression and pressure: pejorative

Travelocity Commercial

Job of Personal Selling (3)

• Duties (cont…)– Supporting salespeople: no selling, help order

getters & order takers• Missionary: entry level

– Goodwill, stimulate demand for products– Tasks: training, coop ads, sales promotion (increase

sales 2-3x)

• Technical specialists: often after o.g. & o.t. visit– Scientists and engineers– Provide details on complex processes (installation,

maintenance etc.)

– May mix three jobs (retraining people)

Summary

• READ: • Sales quotas (439-440)• 3 sales presentations (443-444)

• Order getting vs. order taking vs. supporting

• Payment methods

• 3 types of sales presentations

• Any questions??