CHAPTER FIFTEEN Personal Selling and Customer Service For

CHAPTER FIFTEEN Personal Selling and Customer Service For use only with Perreault/Cannon/Mc. Carthy or Perreault/Mc. Carthy texts. © 2008 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin www. mhhe. com/fourps

When we finish this lecture you should 1. 2. 3. 4. 5. Understand the importance and nature of personal selling. Know the three basic sales tasks—order getting, order taking, and supporting—and what the various kinds of salespeople can be expected to do. Understand why customer service presents different challenges than other personal selling tasks. Know the different ways sales managers can organize salespeople so that personal selling jobs are handled effectively. Know how sales technology affects the way sales tasks are performed.

When we finish this lecture you should 6. 7. 8. Know what the sales manager must do, including selecting, training, and organizing salespeople to carry out the personal selling job. Understand how the right compensation plan can help motivate and control salespeople. Understand when and where to use three types of sales presentations.

Marketing Strategy Planning Process

Strategy Planning and Personal Selling (Exhibit 15 -1) CH 14: Promotion Intro. To Integrated Marketing Communications Importance of personal selling CH 15: Personal Selling and Customer Service Personal selling tasks Strategy decisions CH 16: Advertising & Sales Promotion Personal selling process

The Importance and Role of Personal Selling Requires strategy decisions Salespeople can be strategy planners Helping to buy is good selling Personal Selling Is Important Sales force provides market information Salespeople represent whole company

What Kinds of Personal Selling Are Needed? Order. Getting Order. Taking Basic Sales Tasks Supporting

Order Getters Develop New Business Relationships Order Getters and Order-Getting Producers’ Order Getters Find New Opportunities Wholesalers’ Order Getters Work Closely with Retailers Retail Order Getters Influence Buyer Behavior

Order Takers Nurture Relationships to Keep the Business Coming Order Takers and Order-Taking Producers’ Order Takers Train, Explain & Collaborate Wholesalers’ Order Takers Don’t Get Orders But Keep Them Retail Order Takers Are Often Poor Sales Clerks

Supporting Sales Force Informs and Promotes in the Channel Missionary Salespeople Technical Specialists Supporting Sales Tasks Customer Service Reps

Customer Service Promotes the Next Purchase Technical Part of promotion Specialists Solves problems after a purchase What is Customer Service? Reps are customer advocates

Checking your knowledge Julie Jones works for an investment firm. She calls on potential clients, introduces them to her firm, develops goodwill, and tries to set up contacts between customers and her firm’s account managers. Julie does not manage any accounts herself, but is using her current position as a training opportunity in hopes of moving up to an account manager position. Julie’s current position is that of a: A. B. C. D. E. order taker. order getter. missionary salesperson. sales manager. systems seller.

The Right Structure Helps Assign Responsibility Different Markets, Different Tasks Team Selling Major Accounts Sales Force Size and Workload Telemarketing Sales Territories

Interactive Exercise: Sales Force Workload © 2008 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Sometimes Technology Can Substitute for Personal Selling (Exhibit 15 -2)

An Example of Digital Self-Service

Information Technology Provides Tools to Do the Job New Software Great Changes in Handling Tasks New Hardware Good Selection and Training Needed Technology Can Be a Competitive Advantage What is Done vs. How It’s Done

Using Technology in Personal Selling © 2008 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Sound Selection to Build a Sales Force

Training to Meet a Job Description Specific, Written Job Description Trained, Not Born All Salespeople Need Training

Selling Skills Can Be Learned

Compensating and Motivating Salespeople Level of Compensation Straight Salary Method of Payment Straight Commission Combination Plan

Interactive Exercise: Sales Force Compensation © 2008 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Determining the Choice of the Pay Plan

Flexibility vs. Simplicity (Exhibit 15 -3)

Checking your knowledge After spending two years in the insurance business, Anne Mc. Cauley decided to go to graduate school so that she could become qualified to teach high school English. Even though she had a reasonable amount of success in selling insurance, she could not deal with the variability in her income from month to month. She said, “In some months I earn all the money I need in a couple of days. In other months, I can work hard all month long and earn nothing. ” She wanted a career with more regular earnings. It sounds as though Anne was on a _____ compensation plan in the insurance business. A. B. C. D. straight commission straight salary combination cost-plus

Personal Selling Techniques – Prospecting and Selecting (Exhibit 15 -4 a)

Personal Selling Techniques – Sales Presentations (Exhibit 15 -4 b)

Three Types of Sales Presentation Approaches May Be Useful Three Presentation Approaches Prepared Approach Consultative Approach Selling Formula Approach

Checking your knowledge A seller of asset-management services specializes in marketing his services to people connected with the publishing business, such as authors, book distributors, and bookstore owners. He often gets leads by scanning newspapers and magazines, looking for new authors whose books are favorably reviewed. This searching takes place in the _____ stage of the personal selling process. A. B. C. D. E. follow-up sales presentation closing prospecting prequalification

An Example of Consultative Selling © 2008 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Personal Selling Techniques – Closing and Follow-Up (Exhibit 15 -4)

Checking your knowledge Light-the-Way, Inc. sells standard household items such as cleaners, trash bags, and light bulbs via telemarketing. The products are made or packaged by people who are visually impaired. The company donates a percentage of its sales revenue to organizations that provide services to the blind. The telephone sales presentation emphasizes this fact and the quality of the merchandise. The salesperson making the calls reads the same sales script to every potential customer who is called. The only opportunity for the customer to talk comes when the salesperson attempts to close the sale. This is an example of a(n): A. B. C. D. E. consultative selling approach. selling formula approach. prospecting approach. systems selling approach. prepared sales presentation.

You now 1. 2. 3. 4. 5. Understand the importance and nature of personal selling. Know the three basic sales tasks—order getting, order taking, and supporting—and what the various kinds of salespeople can be expected to do. Understand why customer service presents different challenges than other personal selling tasks. Know the different ways sales managers can organize salespeople so that personal selling jobs are handled effectively. Know how sales technology affects the way sales tasks are performed.

You now 6. 7. 8. Know what the sales manager must do, including selecting, training, and organizing salespeople to carry out the personal selling job. Understand how the right compensation plan can help motivate and control salespeople. Understand when and where to use three types of sales presentations.

Key Terms • • • Basic sales tasks Order getters Order getting Order takers Order taking Supporting salespeople Missionary salespeople Technical specialists Customer service reps • • • Team selling Major accounts sales force Telemarketing Sales territory Job description Sales quota Prospecting Sales presentation Prepared sales presentation

Key Terms • • • Close Consultative selling approach Selling formula approach