management of personal selling
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ManagementManagement of Personal Sellingof Personal Selling
Prof. Rushen Chahal
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Personal SellingPersonal Selling
y Personal (one-to-one/one-to-small group)
communication of information designed to
persuade someone to buyy In many companies, personal selling is the
largest single operating expense-- often 8
to 15% of sales.
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When Personal SellingWhen Personal Selling
Works BestWorks Best
The market is concentrated.
The product has a high unit value, is technical innature, and requires a demonstration.
The product can be tailored to an individualcustomers need.
The sale involves a trade-in.
The product is in the introductory stage of the
product life cycle. The organization doesnt have enough money
for adequate ad campaign
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Strengths andWeaknesses ofStrengths andWeaknesses of
Personal SellingPersonal Sellingy Strengths:
It can be adapted for individual customers.
It can be focused on prospective customers.
It results in the actual sale, while most otherforms of promotion are used in moving thecustomer closer to the sale.
y Weaknesses:
It is costly to develop and operate a sales force. It may be difficult to attract high-calibre people.
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Two Kinds of PersonalTwo Kinds of Personal
SellingSelling
y The customers come to thesalespeople.
Mostly involves retail-store selling.
Most salespeople fall into this category.
y The salespeople go to the customers. Usually represent producers or wholesaling
middlemen and sell to business users.
Some outside selling is relying more ontelemarketing.
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CUSTOMERS COME TO
THE SALES PEOPLE
CUSTOMERS COME TO
THE SALES PEOPLE
SALES FORCE GOES TO
THE CUSTOMERS
SALES FORCE GOES TO
THE CUSTOMERS
Inside selling:
across-the-counter;
phone-in orders
Inside selling:
across-the-counter;
phone-in orders
Primarily
retail store selling
Primarily
retail store selling
In-person
sales calls
In-person
sales calls
Inside sales people
contact by mail
or telemarketing
Inside sales people
contact by mail
or telemarketing
Primarily producers and wholesaling
middlemen selling to business users,
but also some:
Producers Household consumers
Retailers Household consumers
Not-for-profit Business users
organizations Household consumers
Primarily producers and wholesaling
middlemen selling to business users,
but also some:
Producers Household consumers
Retailers Household consumers
Not-for-profit Business users
organizations Household consumers
Kinds of
Selling
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Jobs in Personal SellingJobs in Personal Selling
y Professional salesperson engages in a total sellingjob.
Manage their time, territories and customers.
Work closely with customers to support and train.
y Wide variety of sales jobs:
Driver-salesperson
Inside order takers (e.g. retail clerk)
Outside order taker (business development)
Missionary sales (sales support)
Sales engineer
Consultative sales person
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Range ofJobs and Tasks.Range ofJobs and Tasks.
Execute marketing strategies--relationships.
Represent their company. Work with little or no supervision.
Often travel to meet customers.
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Changing Patterns in SalesChanging Patterns in Sales
y the nature of the selling job is changing,reflecting changing market situations
yy selling centresselling centres: many firms have organized
sales teamsyy systems sellingsystems selling: others now offer their
customers a coordinated system andsolutions for their problems
yy global sales teamsglobal sales teamsyy relationship selling:relationship selling: there is considerable
emphasis today on the development ofrelationships with customer
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Changing Patterns (concluded)Changing Patterns (concluded)
yy telemarketingtelemarketing - innovative use of
telecommunications equipment and systems
yy Internet sellingInternet selling and business to business
auctionsyy sales force automation (SFA):sales force automation (SFA): technology has
changed the way many firms sell, relying on
telemarketing and data bases
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The Personal SellingThe Personal Selling
Process (Steps 1 and 2)Process (Steps 1 and 2)1. Prospecting and Qualifying
Identify potential customers.
Qualifying involves determining whether
prospects have the willingness, purchasingpower, and authority to buy.
2. Preapproach to Individual Prospects
Salespeople must learn how buying decisions
are made. Salespeople should also try to find out a
prospects personal habits and preferences.
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The Personal SellingThe Personal Selling
Process (Steps 3 to 5)Process (Steps 3 to 5)3. Presenting the Sales Message: AIDA
Attract the prospects Attention.
Hold the prospects Interest.
Build a Desire for the product. Stimulate the Action of closing the sale.
4. Meet Objections and Close the Sale
Objections help clarify customers concerns.
5. Postsale Services Deal with cognitive dissonance.
Ensure everything happened as it should(delivery).
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PROSPECTINGPROSPECTING PREAPPROACHPREAPPROACH PRESENTATIONPRESENTATIONPOSTSALE
SERVICES
POSTSALE
SERVICES
Identifying:
Profiles
Leads
Records
Qualifying:Capability
Willingness
Identifying:
Profiles
Leads
Records
Qualifying:Capability
Willingness
Information
Habits
Preferences
Information
Habits
Preferences
AIDA:Attention
Interest
Desire
Action
Meet Objections
Close the Sale
AIDA:Attention
Interest
Desire
Action
Meet Objections
Close the Sale
Reduce
dissonance
Buildgoodwill
Reduce
dissonance
Buildgoodwill
The Personal Selling Process
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Sales Force ManagementSales Force Management
y Effective sales force management starts with aqualified sales manager.
y The tasks that take up the bulk of sales executivestime include:
Recruitment and selection (Match candidates withyour needs)
Assimilation and Training
Motivation Compensation
Supervision
Performance evaluation
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Recruitment
andSelection
Recruitment
andSelection
AssimilationAssimilation
TrainingTraining
MotivationMotivation
Compen-
sation
Compen-
sation
Performance
Evaluation
Performance
Evaluation
SupervisionSupervision
The Sales ManagementProcess
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CompensationCompensation
y Straight salary
Works well for new people, new territories.
Good where lengthy negotiations typical.
y Straight commission Strong incentive, direct reward for effort.
Can be hard to control salespeople.
y
A combination plan Most firms do this.
Best of both worlds.
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Performance EvaluationPerformance Evaluation
y Both quantitative and qualitative factorsshould serve as bases for performanceevaluation.
QuantitativeQuantitative bases are specific andobjective.
QualitativeQualitative factors are limited by thesubjective judgement of the evaluators.
y Both inputs (or effort) and outputs (orresults) should be used.
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