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CHAPTER 20 PERSONAL SELLING AND SALES MANAGEMENT © 2003 Mc. Graw-Hill Companies, Inc. , CHAPTER 20 PERSONAL SELLING AND SALES MANAGEMENT © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: • Recognize different types of AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: • Recognize different types of personal selling. • Describe the stages in the personal selling process. © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: • Specify the functions and AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: • Specify the functions and tasks in the sales management process. • Determine whether a firm should use manufacturer’s representatives or a company salesforce and the number of people needed in a company’s salesforce. © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: • Understand how firms recruit, AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: • Understand how firms recruit, select, train, motivate, compensate, and evaluate salespeople. • Describe recent applications of salesforce automation and customer relationship management. © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Medtronic Salespeople Visiting hospital operating rooms to discover new solutions to customer problems © Medtronic Salespeople Visiting hospital operating rooms to discover new solutions to customer problems © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT • Nature of Personal Selling SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT • Nature of Personal Selling and • • • Sales Management Pervasiveness of Selling Personal Selling in Marketing Creating Customer Value through Salespeople: Relationship and Partnership Selling © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Why would you use personal selling? • Travel • Aircraft www. airbus. com • Why would you use personal selling? • Travel • Aircraft www. airbus. com • Real-estate • Buyer Agent? • Sellers Agent? © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Concept Check 1. What is personal selling? A: Personal selling is the two-way flow Concept Check 1. What is personal selling? A: Personal selling is the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision. © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Concept Check 2. What is involved in sales management? A: Sales management involves planning Concept Check 2. What is involved in sales management? A: Sales management involves planning the selling program as well as implementing and controlling the personal selling efforts of the firm. © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE MANY FORMS OF PERSONAL SELLING • Order Taking • Order Getting © 2003 THE MANY FORMS OF PERSONAL SELLING • Order Taking • Order Getting © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Frito-Lay Salesperson Taking inventory for a straight rebuy decision © 2003 Mc. Graw-Hill Companies, Frito-Lay Salesperson Taking inventory for a straight rebuy decision © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

FIGURE 20 -2 How outside order-getting salespeople spend their time each week © 2003 FIGURE 20 -2 How outside order-getting salespeople spend their time each week © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE MANY FORMS OF PERSONAL SELLING • Customer Sales Support Personnel § Missionary salespeople THE MANY FORMS OF PERSONAL SELLING • Customer Sales Support Personnel § Missionary salespeople § Sales engineer § Team selling © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Concept Check 1. What is the principal difference between an order taker and an Concept Check 1. What is the principal difference between an order taker and an order getter? A: Order takes preserve an ongoing relationship with existing customers and maintain sales. Order getters identify prospective customers and create new sales. © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Concept Check 2. What is team selling? A: The practice of using an entire Concept Check 2. What is team selling? A: The practice of using an entire team of professionals in selling to an servicing major customers. © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS • Prospecting • Preapproach • Approach © 2003 THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS • Prospecting • Preapproach • Approach © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

FIGURE 20 -3 Stages and objectives of the personal selling process © 2003 Mc. FIGURE 20 -3 Stages and objectives of the personal selling process © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Trade Show Sales Popular source for leads and prospects © 2003 Mc. Graw-Hill Companies, Trade Show Sales Popular source for leads and prospects © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Dell and Cultural differences in China © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Dell and Cultural differences in China © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS • Presentation • Stimulus-Response Format • Formula Selling THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS • Presentation • Stimulus-Response Format • Formula Selling Format © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS • Presentation (cont) • Need-Satisfaction Presentation § Adaptive THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS • Presentation (cont) • Need-Satisfaction Presentation § Adaptive selling § Consultative selling • Handling Objections • Close • Follow-Up © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Concept Check 1. What are the six stages in the personal selling process? A: Concept Check 1. What are the six stages in the personal selling process? A: Prospecting, preapproach, presentation, close, follow-up © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

How do you handle sales objections • • How many salespeople should be employed: How do you handle sales objections • • How many salespeople should be employed: NS=(NC+CF+CL)/AST NS=Number of Salespeople NC=Number of Customers CF=Call Frequency CL=Length of average call AST=Average amount of selling time available per year © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Concept Check 2. What is the distinction between a lead and a qualified prospect? Concept Check 2. What is the distinction between a lead and a qualified prospect? A: A lead is the name of a person who may be a possible customer, whereas a prospect is a person who wants or needs the product. © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Concept Check 3. Which presentation format is most consistent with the marketing concept? Why? Concept Check 3. Which presentation format is most consistent with the marketing concept? Why? A: The need-satisfaction presentation format is most consistent with the marketing concept because it emphasizes problem solving. © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE SALES MANAGEMENT PROCESS FIGURE 20 -4 The sales management process © 2003 Mc. THE SALES MANAGEMENT PROCESS FIGURE 20 -4 The sales management process © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE SALES MANAGEMENT PROCESS • Sales Plan Formulation • Setting Objectives • Organizing the THE SALES MANAGEMENT PROCESS • Sales Plan Formulation • Setting Objectives • Organizing the Salesforce © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

FIGURE 20 -5 Break even chart for comparing independent agents and a company sales FIGURE 20 -5 Break even chart for comparing independent agents and a company sales force © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

FIGURE 20 -6 Organizing the Sales Force by customer, product, and geography © 2003 FIGURE 20 -6 Organizing the Sales Force by customer, product, and geography © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

FIGURE 20 -6 Organizing the sales force by customer © 2003 Mc. Graw-Hill Companies, FIGURE 20 -6 Organizing the sales force by customer © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

FIGURE 20 -6 Organizing the sales force by product © 2003 Mc. Graw-Hill Companies, FIGURE 20 -6 Organizing the sales force by product © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

FIGURE 20 -6 Organizing the sales force by geography © 2003 Mc. Graw-Hill Companies, FIGURE 20 -6 Organizing the sales force by geography © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE SALES MANAGEMENT PROCESS • Organizing the Salesforce (cont) § Major account management § THE SALES MANAGEMENT PROCESS • Organizing the Salesforce (cont) § Major account management § Workload method • Developing Account Management Policies © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

FIGURE 20 -7 Account management policy grid © 2003 Mc. Graw-Hill Companies, Inc. , FIGURE 20 -7 Account management policy grid © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE SALES MANAGEMENT PROCESS • Sales Plan Implementation • Salesforce Recruitment and Selection § THE SALES MANAGEMENT PROCESS • Sales Plan Implementation • Salesforce Recruitment and Selection § Emotional intelligence © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

FIGURE 20 -8 U. S. salesforce composition and change © 2003 Mc. Graw-Hill Companies, FIGURE 20 -8 U. S. salesforce composition and change © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE SALES MANAGEMENT PROCESS • Sales Plan Implementation (cont) • Salesforce Training • Salesforce THE SALES MANAGEMENT PROCESS • Sales Plan Implementation (cont) • Salesforce Training • Salesforce Motivation and Compensation © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Mary Kay Cosmetics Top Salesperson Recognition at its annual sales meeting © 2003 Mc. Mary Kay Cosmetics Top Salesperson Recognition at its annual sales meeting © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE SALES MANAGEMENT PROCESS • Salesforce Evaluation and Control • Quantitative Assessments • Behavioral THE SALES MANAGEMENT PROCESS • Salesforce Evaluation and Control • Quantitative Assessments • Behavioral Evaluation • Salesforce Automation and Customer Relationship Management • Salesforce Computerization • Salesforce Communication © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Compaq Salesperson Working at home due to computerized communications techniques © 2003 Mc. Graw-Hill Compaq Salesperson Working at home due to computerized communications techniques © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Toshiba America Medical Systems Computer technology as a sales and training device © 2003 Toshiba America Medical Systems Computer technology as a sales and training device © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Toshiba America Medical Systems Computer technology as a sales and training device © 2003 Toshiba America Medical Systems Computer technology as a sales and training device © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Concept Check 1. What are three types of selling objectives? A: Selling objectives can Concept Check 1. What are three types of selling objectives? A: Selling objectives can be outputrelated, input-related, or behaviorallyrelated. © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Concept Check 2. What three factors are used to structure sales organizations? A: Typically, Concept Check 2. What three factors are used to structure sales organizations? A: Typically, sales organizational structures are based on geography, customer, or product. © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Concept Check 3. How does emotional intelligence tie to adaptive selling? A: The ability Concept Check 3. How does emotional intelligence tie to adaptive selling? A: The ability to understand one’s own and others’ emotions allows quick adaptation to various situations. © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Group 2 Devise a compensation plan for travel agents inbound call centre • • Group 2 Devise a compensation plan for travel agents inbound call centre • • • What are some of the economic variables you would want to measure? What are some of the costs you want to control? What other variables would you like to track to ensure good customer service How do you deal with customers handled by more than one agent? Who gets the commission How will you calculate commission to address revenue and costs. What formula would you use © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Group 1 • • Develop a sales presentation for the product in the black Group 1 • • Develop a sales presentation for the product in the black box Two audiences: • • • 1 people who do crafts 2 people who do home improvements How much is the product? What could it be used for? Remember to cover all elements of the sales process. © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin