18 Personal Selling Mc Graw-Hill Irwin Copyright 2009

18 Personal Selling Mc. Graw-Hill/Irwin Copyright © 2009 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Personal Selling

Determining the Role of Personal Selling What information must be exchanged between firm and potential customer? What are the alternative ways to carry out these communications objectives? How effective is each alternative in carrying out the needed exchange? How cost effective is each alternative?

If Sales Force is a Major Part of IMC Product or Service • Complex goods or services • Major purchase decisions • Personal demonstration required Price • Final price negotiable • Price provides adequate margin Channels • Channel short and direct • Training needed by intermediaries • Selling needed to push product through • Intermediaries can provide personal selling Advertising • Media do not provide an effective link • Information cannot be provided by media • Sparse market reduces advertising economies

Stages of Personal Selling Evolution Provider Selling activity limited to order-taking and delivery Persuader Attempting to persuade customer to buy Prospector Seeking out buyers perceived to have a need Problem-solver Buyers identify problems to be met by goods Procreator Seller determines buyer needs and fulfills them

New Roles for Salespeople Surveying Mapmaking Fire Starting Guiding

Customer Relationship Management Relationship Marketing: The organization’s effort to develop a long-term, costeffective link with individual customers for mutual benefit.

SAP Software Assists CRM

Keeping a Customer

Types of Sales Jobs Assesses situation, determines needs Creative Selling Presents capability of satisfying needs Gets order Order Taking Missionary Sales This role is much more casual Often involves straight rebuying Essentially a support role May not actually take the order

Personal Selling Responsibilities Locating prospective customers Determining customers’ needs and wants Recommending a way to satisfy them Demonstrating product capabilities Closing the sale Following up and servicing the account

Sales People Have Many Duties

Test Your Knowledge With the evolution of personal selling, an individual salesperson's job requirements may include: A) Determining customers' needs and wants B) Demonstrating the capabilities of the firm C) Following up and servicing the account D) Locating prospective customers E) All of the above

Traits of Effective Salespeople 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.

Traits of Effective Salespeople 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.

Traits Buyers Like and Dislike Desirable Traits 1. Knowledgeable 2. Empathizes 3. Well organized 4. Prompt 5. Follows through 6. Has solutions 7. Punctual 8. Hard working 9. Energetic 10. Honest Objectionable Traits 1. Unprepared 2. Uninformed 3. Aggressive 4. Undependable 5. No follow through 6. Presumptive 7. Walk-ins 8. Gabbers 9. Problem avoiders 10. No personal respect

Pros and Cons of Personal Selling Advantages Disadvantages Two-way interaction with prospect Messages may be inconsistent Message can be tailored to recipient Possible managementsales force conflict Prospect isn't likely to be distracted Cost is often extremely high Seller involved in purchase decision Reach may be very limited Source of research information Potential ethical problems

Personal Selling + Other Tools Advertising Public Relations Personal Selling Direct Marketing Sales Promotion The Internet

Personal Selling + Advertising

Test Your Knowledge By servicing an account and by cooperating and empathizing with clients, salespersons are engaging in _____ activities on behalf of their firm. A) Sales promotion B) Advertising C) Public relations D) Direct marketing E) Telemarketing

Personal Selling + PR Rep is often best source of PR Representative of the organization Involved in community Creates goodwill

Personal Selling + Direct Marketing

Personal Selling + Sales Promotion Reseller Sales Promotion Targets Consumer Sales Force

Personal Selling + the Internet

Evaluating the Personal Selling Effort

Characteristics Affecting Performance The courage to change The strength of the field manager A clear link between company culture & value to sales strategies Rigorous management processes that drive performance Consistent training that leads to consistent execution

Evaluating Personal Selling Provides good marketing intelligence? Are follow-up activities conducted well? Are promo programs being implemented? Are communications objectives met?

Test Your Knowledge The ability of the sales force to feed back information regarding competitive programs and customer reactions contributes to the promotional program by fulfilling which evaluative criterion? A) Attainment of communications objectives B) Program implementation C) Follow-up activities D) Providing market intelligence E) None of the above

Quantitative Measures of Sales Results Orders Sales Volume Margins Quantitative Measures Customer Accounts Sales Calls Selling Expenses Customer Service

Qualitative Measures of Sales Results Selling Skills Sales Related Activities