personal selling copyright 2010 sage publications, inc. 9-1
TRANSCRIPT
Personal Selling
Copyright 2010 SAGE Publications, Inc.9-1
IBMIBM1911, C-T-R (Computing-Tabulating-Recording CompanySales an important ingredient of IBM1993 new strategic effort “fully-integrated solutions”Service, products, and technologies sold as one system2000 U.S. National Medal of Technology award
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Retail sellingOrder takerCommission salesService salespersonService provider who also
sells
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Business-to-Business SellingField salespeopleMissionary salespeople
Telemarketers
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Copyright 2010 SAGE Publications, Inc.
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Steps in theSellingProcess
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Qualifying ProspectsNot all customers/prospects are of equal
valueQualify along two dimensions
Potential income the lead can generateProbability of acquiring prospect as a customer
Only best prospects warrant visits due to high costs
Quality of lead determines method of contact
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Copyright 2010 SAGE Publications, Inc.
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Classification of Prospects“A” Category
Best prospectsField salespeople will make sales call
“B” CategoryProspect satisfied with current vendorUse telephone, mail, e-mail to contact
“C” CategoryUse telephone or e-mailSend marketing material
“D” CategorySend marketing materials
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Copyright 2010 SAGE Publications, Inc.
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KnowledgeAcquisitionInformation
SalesPresentationStimulus responseNeed satisfactionProblem solutionMission sharing
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HandlingObjections
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Figure 9.6
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ClosingMethods
Follow-UpCrucial element of effective sellingCost effective to retain current customersOften neglected by salespeopleFollowing up sales calls that do not generate
ordersWho will follow-up?When?How?
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Relationship Selling
Goal of sales Develop relationshipsRequires positive experiences for both sidesTakes time to evolveRequires trust
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International PerspectiveLanguage and slangCulture and subculturesMethod of introductionEye contactBody language, gestures, and physical
distanceGiving and receiving giftsUse of business cardsTable manners and foodsDirectness in tone
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Managing a Sales ForceRecruiting and selectionTrainingCompensationMotivational programsPerformance evaluation
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Recruiting and SelectionOngoing and systematicDevelop strong pool of applicantsTap all internal and external sources
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ExternalRecruiting
Applicant ScreeningLevel of educationDegree of experiencePersonality and personal
characteristicsAptitudeSkill levelPersonal characteristics
Legal compliance
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TrainingOn-the-job training
DemonstrationSink-or-swim
Off-the-job trainingFilms and classroom instructionSimulationsInteractions with sales trainers
Better selling tactics Motivational speeches
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Copyright 2010 SAGE Publications, Inc.
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Straight SalaryAdvantages
Leads to greater focus on customer serviceCan emphasize non-selling activitiesRewards are equal even when differences in sales
territoriesCan be structured to reward experience and
competenceReduces inclination to use high-pressure selling
DisadvantagesLittle incentive to push for a saleMay spend more time on non-selling activities
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Straight CommissionAdvantages
Better motivational toolPay linked to sales
DisadvantagesLess focus on customer serviceLess effort on non-selling activitiesNo incentive to work with team or other staff
membersCan produce high-pressure sellingEncourage single-transaction mentality
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Salary + CommissionUsed by most companiesMix depends on the company’s goalsHigher portion in salary when
Stress customer serviceStress higher-quality customer relationships
Higher portion in commissions when goal is toBoost salesAdd new customersIncrease market share
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BonusesSingle project or systematic
YearlyQuarterly
Individual or groupVarious goalsGroup bonuses encourage
Team work
Individual bonuses encouragePersonal accomplishments
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BenefitsHas become challenge for most
companiesHave major impact on
Recruiting new employeesRetention of employeesCost management
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Managing Pay SystemsBalance short term and long term goalsBecomes more complex with
Multiple sales levels Field salespeople In-side sales staff Telemarketers
Missionary salespeopleMajor accounts salespeopleOutbound telemarketers
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Motivational Programs
Financial incentivesNon-financial incentives
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InputMeasures
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OutputMeasures
Financial MeasuresSales volumeGross margin on salesContribution margin for each
salespersonMore important if salesperson can
Adjust priceOffer incentives
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Copyright 2010 SAGE Publications, Inc.
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Warning on Financial AnalysisFinancial analysis tied to input and output
measuresComprehensive evaluationEvaluation tied to compensation and
rewardsOther factors influencing sales
Organizational factorsEnvironmental factors
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Performance Evaluation MeetingGive notice in advanceSuggest comfortable placeBegin with accomplishments and strengthsContinue with weaknesses and problem
areasSet goals for next evaluation period
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• Marketing and finance degrees• Business analysts with 3M, Wal-Mart account• Marketing courses
• Consumer Behavior• Marketing Research• Marketing Management
• Learning on the job
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How will Susan’s decision impact each of the customers?Insert
Figure 9.11 What should Susan Hanson do? Which of the three choices is best? Why? How would you handle each employee? How would you handle the customers?
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1. What type of salespeople best fit Kretschmar?2. Should different types of salespeople be hired?3. Which criteria should be used in selecting salespeople?
Aptitudes, skill levels, and personal characteristics4. What type of compensation structure should be used?5. What types of motives and incentives best fit the sales force?6. Which input and output measures are best suited?
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