chapter 01

14
CHAPTER 1: PERSONAL SELLING INTRODUCTION SUHAILY 1 PPM 223/PMK 2033 Each of us develops communication techniques for trying to get our way in life You are involved in selling when you want someone to do something You use persuasion skills to persuade someone to act 1.0. PERSONAL SELLING - INTRODUCTION 1.1 INTRODUCTION Selling is the process of discovering needs and satisfying them. This process can be very simple, as when a customer knows what is wanted and the salesperson simply provides the item and rings up the sale, or very complex. Uncomplicated sales transactions occur millions of times each day. Today’s customers are sophisticated and knowledgeable, and salespeople must act as both problem solvers and marketing experts. Personal selling is a person to person process that promotes the exchange of goods, services, or ideas for the purpose of making sales and building customer relationships. Personal selling refers to the personal communication of information to unselfishly persuade a prospective customer to buy something a good, a service, an idea, or something else that satisfies that individual’s needs. Relationship marketing: The creation of customer loyalty Relationship selling: When the seller contacts the customer after the purchase to determine if the customer is satisfied and has future needs. Sellers nowadays are consultant, partners and problem solvers for customers. Their goal is to build a long term relationship with clients. 1.2 EVERYBODY SELLS

Upload: suhaily-mohd-ramly

Post on 28-Nov-2014

784 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Chapter 01

CHAPTER 1: PERSONAL SELLING – INTRODUCTION

SUHAILY 1 PPM 223/PMK 2033

Each of us develops communication techniques for trying to get

our way in life

You are involved in selling when you want someone to do something

You use persuasion skills to persuade someone to act

1.0. PERSONAL SELLING - INTRODUCTION

1.1 INTRODUCTION

Selling is the process of discovering needs and satisfying them. This process

can be very simple, as when a customer knows what is wanted and the salesperson

simply provides the item and rings up the sale, or very complex. Uncomplicated sales

transactions occur millions of times each day. Today’s customers are sophisticated

and knowledgeable, and salespeople must act as both problem solvers and marketing

experts.

Personal selling is a person to person process that promotes the exchange

of goods, services, or ideas for the purpose of making sales and building

customer relationships.

Personal selling refers to the personal communication of information to unselfishly

persuade a prospective customer to buy something – a good, a service, an idea, or

something else – that satisfies that individual’s needs.

Relationship marketing: The creation of customer loyalty

Relationship selling: When the seller contacts the customer after the purchase to

determine if the customer is satisfied and has future needs. Sellers nowadays are

consultant, partners and problem solvers for customers. Their goal is to build a long

term relationship with clients.

1.2 EVERYBODY SELLS

Page 2: Chapter 01

CHAPTER 1: PERSONAL SELLING – INTRODUCTION

SUHAILY 2 PPM 223/PMK 2033

Salesperson – Past & Present

Traditional salespeople

Professional salespeople

Golden rule salespeople

• Do what they think they can get away with.

• Do what they are legally required to do.

Do the right thing

• Guided by self interests

• Take care of customers Find others’ interests most important.

• Attribute results to personal efforts.

• Attribute results to personal efforts, employer, customers, economy.

Attribute results to others

• Seek recognition for effort: sharing not important. Pride and ego driven

• Enjoy recognition, may share if it suits their purpose. Pride and ego driven

Feel that an individual’s performance is due to others, thus not motivated by pride and ego.

• Money is life’s main motivator.

• Money is important, but not to the customer’s detriment

Service most important; money is to be shared

1.3 WHY CHOOSE A SALES CAREER?

A. The opportunity to provide service to others.

Providing service means helping others. A sales career provides the opportunity for

service and an emotional purpose in life gained from helping others. For many,

service is the number one reason for choosing a sales career.

Major Reasons For Choosing A Sales Career

A. Service to others

B. Variety of sales jobs

C. Freedom

D. Challenge

E. Advancement

F. Rewards

Page 3: Chapter 01

CHAPTER 1: PERSONAL SELLING – INTRODUCTION

SUHAILY 3 PPM 223/PMK 2033

B. The variety of jobs available.

Types of sales jobs:

i. Selling in retail

A retail salesperson sells goods or services to consumers for their personal,

non-business use. Three common types of retail sellers: in-store salesperson,

direct sellers who sell face-to-face away from a fixed location and telephone

salespersons.

ii. Selling for a wholesaler

Wholesalers buy products from manufacturers and other wholesalers and sell

to other organizations.

A wholesaler salesperson sells products to parties for: resale, use in

producing other goods or services and operating an organization

Firms engaged in wholesaling are called wholesaling middlemen. They vary

greatly in the products they sell, the markets to which they sell and their

methods of operation.

iii. Selling for a manufacturer

Manufacturer’s sales representatives

a. Account representatives - call on a large number of already established

customers.

b. A detail salesperson - concentrates on performing promotional activities

and introducing new products rather than directly soliciting orders.

Service refers to making a contribution to the welfare of others

Would you like to help others?

What could a person be sold that would help the individual/family?

o Car, gas, repairs

o House

o Insurance

o Food

o Medicine

Page 4: Chapter 01

CHAPTER 1: PERSONAL SELLING – INTRODUCTION

SUHAILY 4 PPM 223/PMK 2033

c. A sales engineer - sells products that call for technical know-how.

d. An industrial products salesperson (non-technical) sells tangible products

to industrial buyers.

e. A service salesperson - sells intangible products such as financial

services, advertising, or computer repair services.

Order taker versus Order getter

Order Taker - The salesperson asks what the customer wants or waits for

the customer to order, for instance, cashier in retail selling situation,

telemarketing whose specific task of taking order.

Order Getter - The salesperson gets new and repeat business using

creative sales strategy and a well-executed sales presentation. An order

getter has two selling challenges:

Must often create discontent with what the prospect already has before

beginning to sell constructively.

Often has to overcome the most powerful and obstinate resistance.

C. Freedom of being on your own.

You’re on your own with very little direct supervision.

D. The challenge of selling.

The job challenge is always there which means great responsibility.

Salespeople often deal with variety of people and firms over time.

Page 5: Chapter 01

CHAPTER 1: PERSONAL SELLING – INTRODUCTION

SUHAILY 5 PPM 223/PMK 2033

E. The opportunity for advancement.

Some companies promote salespeople to managerial positions very quickly. For

most companies the path to a sales management position begins with an entry

level position.

F. The rewards from a sales career.

Two types of rewards:

Non-financial

(psychological income or intrinsic

rewards)

Feeling of self-worth and

accomplishment.

Realization that the job is

important.

Financial:

The opportunity to earn large salaries.

Rewarded on basis of performance.

Comparatively large beginning

salaries.

Overall, salaries for field sales

personnel have been moving rapidly

upward.

Page 6: Chapter 01

CHAPTER 1: PERSONAL SELLING – INTRODUCTION

SUHAILY 6 PPM 223/PMK 2033

1.4 CHARACTERISTICS OF SUCCESSFUL SALESPERSON

Below are highlights of some characteristics commonly found in successful

salespeople:

Caring for

customers

A true salesperson cares for their customer needs and tries to

solve those needs.

Joy in helping Through caring comes the joy of helping others. Customers can

recognize when a person clearly cares.

Harmony in

relationship

The caring attitude helps to create harmony in the relationship

between salesperson and customers. Salespeople need to have

the personal characteristic that allows them to place the customers

first.

Patience &

kind

Salesperson need to be able handle pressure of selling by

demonstrating patience in the working relationship with the

customer.

Moral ethics Ethical salesperson will be respected and trusted by everyone.

This characteristic is very important to build long lasting

relationship with customers.

Faithful to

word

The salesperson will spend the time necessary to help, not just

make the sale and never be heard from again until the next sales

call.

Page 7: Chapter 01

CHAPTER 1: PERSONAL SELLING – INTRODUCTION

SUHAILY 7 PPM 223/PMK 2033

Fairness in the

sale

The salespersons have to negotiate fairly and strive for win-win

situation.

Self control in

emotions

Self control concerns emotions, passions and desires. It refers to

the needed discipline to rise early, work late, and prepare for the

next day in the evening.

1.5 SALES JOBS ARE DIFFERENT FROM OTHER JOBS IN SEVERAL WAYS.

A. Since salespeople represent their company, opinions of a company and its

products are often based on the salespeople.

B. The outside salesperson typically operates with little direct supervision and needs

a high degree of motivation.

C. Salespeople probably need more tact, diplomacy, and social poise.

D. Salespeople are authorized to spend company funds on entertainment,

transportation, and other business expenses.

E. Selling requires mental toughness and physical stamina.

1.6 WHAT DOES PROESSIONAL SALESPERSON DO?

A. Creates new customers.

Salespersons locate people and/or organizations that have the potential to buy their

products in order to increase sales and replace customers that will be lost over time.

B. Sells more to current customers.

The key to get the current customers to buy repeatedly is to satisfy them.

C. Builds long-term relationships with customers –

Earning the opportunity to sell a present customer more products means the

salesperson must have a professional relationship with people and organizations.

D. Helps customers use products after purchase

The customers must be shown how to obtain full benefit from the products.

Page 8: Chapter 01

CHAPTER 1: PERSONAL SELLING – INTRODUCTION

SUHAILY 8 PPM 223/PMK 2033

E. Provides solutions to customers’ problems

Salespeople show how problems can be solved through the purchase of certain

products and services.

F. Provides service to customers such as

handling complaints

returning damaged merchandise

providing samples

suggesting business opportunities

recommending promotional techniques

working at the customer’s business

in store demonstrations

accompany distributor’

G. Helps customers resell products to their customers.

Salespersons help wholesalers customers sell products to retail customers and

helps retail customers sell products to consumers. They also develops promotional

programs for retail customers such as advertising materials, store demonstration

and setting product displays

H. Builds goodwill with customers

Salespersons need to develop a personal, friendly, business relationship with

anyone who may influence a buying decision.

I. Provides company with market information such as:

Competitor’s activities.

Customers’ reactions to new products.

Complaints about products and policies.

Market opportunities.

His own job activities.

Page 9: Chapter 01

CHAPTER 1: PERSONAL SELLING – INTRODUCTION

SUHAILY 9 PPM 223/PMK 2033

1.7 THE FUTURE FOR SALESPEOPLE

A. Learning Selling Skills

A salesperson’s job is diverse and complex, it requires a range of skills. The

necessary skills can be summarized in three

categories:

i. Conceptual skills

It refers to the cognitive ability to see the

selling process as a whole and the

relationship among its parts. It involves the

seller’s thinking and planning abilities and allows the seller to think strategically.

ii. Human skills

It refers to the seller’s ability to work with and through other people. It is very

important in building relationship with customer and people within organization.

iii. Technical skills

It refers the salesperson’s understanding of and proficiency in the performance of

specific tasks. The skill involves mastery of the methods, techniques and

equipment involved in selling such as presentation skills and uses of one’s

products.

B. Preparing for the 21st Century

Changes are occurring which will require salespeople to be knowledgeable in new

areas such as:

International dealings.

Sales force’s reflecting customer diversity.

Customer partnering to keep current customers.

Success based on customer satisfaction.

Increasing use of technology (e-selling).

Page 10: Chapter 01

CHAPTER 1: PERSONAL SELLING – INTRODUCTION

SUHAILY 10 PPM 223/PMK 2033

C. Success in selling comes from:

Training

Applying knowledge

Developing skills

Working hard

Wanting to succeed

Maintaining a positive outlook

Effective time management

All to take care of the customer

EXERCISES

MULTIPLE CHOICE QUESTIONS

1. ______ is traditionally defined as the personal communication of information to

persuade a prospective customer to buy something which satisfies that individual's

needs.

A. marketing communications

B. personal selling

C. advertising

D. promotion

2. Personal selling:

A. refers only to sales made to individuals, not those made to businesses

B. describes the process during which someone is persuaded to buy something

which they may not want or need

C. is synonymous with marketing

D. is accurately defined by none of the above

3. Which of the following statements about the importance of salespeople and selling

is true?

A. Salespeople are responsible for the success of new products, but have little to

do with keeping existing products in the marketplace.

B. Only the medical profession generates more revenue in our economy than the

selling profession.

C. Salespeople have a direct impact on the opening of new businesses and

whether those businesses are successful.

D. Salespeople are responsible for keeping existing products in the marketplace,

but have little to do with the success of new products.

4. Which of the following statements about selling is true?

A. You are not involved in sales when you go to an interview with a potential

employer.

Page 11: Chapter 01

CHAPTER 1: PERSONAL SELLING – INTRODUCTION

SUHAILY 11 PPM 223/PMK 2033

B. Unlike other professions, journalists do not engage in selling activities.

C. Everyone sells at their place of work, but not when at home with their families.

D. You are involved in selling when you ask someone to accompany you on a

shopping trip.

5. Selling occurs:

A. when you go to an interview with a potential employer

B. when lawyers try to convince clients to sue

C. when a journalist is trying to get an interview with Siti Nurhaliza

D. in all of the above incidences

6. In which of the following situations is the individual described engaged in selling?

A. You are involved in sales when you go to an interview with a potential

employer.

B. Your are trying to convince your lecturer that you deserve an ‘A’.

C. You are involved in selling when you ask someone to accompany you on a

shopping trip.

D. Selling is occurring in all of the above situations.

7. A person may choose a sales career because he or she desires:

A. the limited variety of jobs available

B. rewards offered by a career in sales

C. the freedom of being self-employed

D. restricted opportunities for advancement

8. A person may choose a sales career because he or she desires:

A. the limited variety of jobs available

B. rewards offered by a career in sales

C. restricted opportunities for advancement

D. overt permission to procrastinate

9. As a salesperson for a plumbing supply wholesaler, Titus would NOT sell products

to:

A. a final consumer

B. a small company that manufactures lawn furniture out of PVC pipes

C. a plumbing contractor who is working on a new motel

D. a hospital maintenance department

10. In which of the following industries are you most likely to find a sales engineer

being used?

A. apparel

B. heavy equipment

C. small appliance

D. pet supplies

Page 12: Chapter 01

CHAPTER 1: PERSONAL SELLING – INTRODUCTION

SUHAILY 12 PPM 223/PMK 2033

11. Which of the following is not a type of manufacturer’s sales representative?

A. detail salesperson

B. account representative

C. sales engineer

D. direct salesperson

12. Ahmad Kamil is a(n) _____ for a manufacturer of restaurant appliances. He does

not directly solicit orders. His primary duties involve promotional activities such as

introducing and demonstrating new products at trade shows.

A. retail salesperson

B. detail salesperson

C. sales engineer

D. service salesperson

13. Insurance, gym memberships, and cruise vacations would be sold by:

A. detail salespeople

B. account representatives

C. sales engineers

D. service salespeople

14. Salespeople who are order-_____ obtain new and repeat business using a creative

sales strategy and a well-executed sales presentation.

A. collectors

B. takers

C. getters

D. creators

15. Order-takers:

A. use creative sales strategies.

B. usually earn much more than order-getters.

C. rely on well-executed sales presentations.

D. are accurately described by none of the above.

16. Salespeople receive _____ rewards from their jobs.

A. financial and nonfinancial

B. psychological and intrinsic

C. technical and nontechnical

D. pay and benefits

17. All of the following are related to the nonfinancial rewards that you as a

salesperson receives EXCEPT:

A. knowing your job is important

B. intrinsic rewards

C. customer entertainment allowances

D. a feeling of self-worth

18. Which of the following is NOT identified as one of the eight work characteristics

needed for sales success?

A. sales knowledge

B. e-management skills

C. communication skills

D. stamina for the job

Page 13: Chapter 01

CHAPTER 1: PERSONAL SELLING – INTRODUCTION

SUHAILY 13 PPM 223/PMK 2033

19. In order to be knowledgeable, a salesperson must:

A. have product knowledge

B. have general business knowledge

C. be aware of the most up-to-date selling techniques

D. do all of the above

20. _____ skills refer to the seller's understanding and proficiency in the performance

of specific tasks.

A. Conceptual

B. Human

C. Nonhuman

D. Technical

21. Sales jobs differ from other jobs because sales jobs require:

A. considerable traveling

B. little direct supervision

C. more physical stamina and mental toughness than most other types of jobs

D. all of the above

22. The three categories of skills needed by the successful salesperson can be

summarized as:

A. conceptual, human, and technical skills

B. personal, mental, and spiritual skills

C. sales features, advantages, and benefits

D. order-getting, order-taking, and service-providing skills

23. The skills a salesperson needs to perform his or her job can be categorized into

three areas. Which of the following is as an example of a technical skill?

A. analytical ability

B. strategic thinking

C. planning abilities

D. working through other people

24. The skills a salesperson needs to perform his or her job can be categorized into

three areas. Which of the following is identified by the text as an example of a

conceptual skill?

A. analytical ability

B. strategic thinking

C. ability to use selling tools

D. working through other people

25. _____ skills refer to the seller's understanding and proficiency in the performance

of specific tasks.

A. Conceptual

B. Human

C. Automated

D. Technical

Page 14: Chapter 01

CHAPTER 1: PERSONAL SELLING – INTRODUCTION

SUHAILY 14 PPM 223/PMK 2033

26. Some of the changes that will impact salespeople in the 21st century include:

A. the need for global experience

B. diverse customers

C. e-selling

D. all of the above

ESSAY QUESTIONS

1. Define personal selling

2. Describe five major reasons for choosing a sales career.

3. Describes five characteristic commonly found in successful salespeople.

4. Describe five tasks of sales person.

5. In your opinion, what makes a sales job different from other jobs? Describe four

reasons.

6. The term salesperson refers to many types of sales jobs. What are the major

types of sales jobs available?

7. Briefly explain the differences between order-takers and order getter.

8. Describe three categories of important skills that are necessary for a

salesperson's success.

9. Comment on the following statement, "Only professional salespeople sell."

10. What are the two types of rewards that salespeople can earn? Give two

examples of each.