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Chapter 13 Selling and Sales Management Harcourt, Inc.

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Presentation on theme: "Chapter 13 Selling and Sales Management Harcourt, Inc."— Presentation transcript:

1 chapter 13 Selling and Sales Management Harcourt, Inc.

2 Dr. Rosenbloom Objectives n Identify and understand the critical factors of personal selling n Discuss how selling has evolved n Evaluate the advantages and disadvantages of sales as a profession

3 Dr. Rosenbloom n Describe the selling environments and types of personal selling n Understand the sales process n Appreciate the tasks and functions of the sales manager n Recognize legal/ethical issues Objectives

4 Dr. Rosenbloom Draft Worldwide Payne Webber Personal Selling

5 Dr. Rosenbloom n A form of person to person communication in which a salesperson works with prospective buyer and attempts to influence purchase in the direction of his or her companys products or services Personal Selling Defined

6 Dr. Rosenbloom n Allows the firm to immediately respond to the needs of the prospect n Allows for immediate customer feedback n Results in an actual sale Importance of Personal Selling

7 Dr. Rosenbloom n Hard sell: Formerly thought customers had to be forced into making a purchase n Relationship selling: Now selling requires the development of a trusting partnership in which the salesperson seeks to provide long- term customer satisfaction Evolution of Personal Selling

8 Dr. Rosenbloom n WalkerInformation Relationship Selling

9 Dr. Rosenbloom n Employment in sales is growing n Sales positions offer advantages: n Good compensation n Intrinsic reward from helping customers n Flexible in day-to-day activities n High-visibility career track n Limited supervision n Travel opportunities n Increasing responsibilities Why choose the sales profession?

10 Dr. Rosenbloom n Lawson Software Leading Edge Technology

11 Dr. Rosenbloom Desirable Salesperson Traits Salesperson Empathetic Competitive Goal-oriented Adaptive Customer- oriented Enthusiastic Organized Self-motivated

12 Dr. Rosenbloom Selling Environments and Selling Types

13 Dr. Rosenbloom Over-the-Counter Selling Order taker Order Getter n n A salesperson who only processes the purchase that the customer has already selected n n Retail outlets that are heavily oriented toward self-service

14 Dr. Rosenbloom Over-the-Counter Selling Order taker Order Getter n n A salesperson who actively seeks to provide information to prospects, persuade prospective customers, and close sales n n Personal service oriented stores n n May practice suggestion selling

15 Dr. Rosenbloom Field Selling n n Help prospective customers to define their needs and then suggest the best means of meeting those needs, even if that requires suggesting that the prospects use a competitive product National account managers Missionary Salespeople Support Salespeople Professional Salespeople

16 Dr. Rosenbloom Field Selling n n Highly skilled salespersons who call on key customers headquarters sites, develop strategic plans for the accounts, make formal presentations to top- level executives, and assist with all the product decisions at that level Missionary Salespeople Professional Salespeople National account managers Support Salespeople

17 Dr. Rosenbloom Field Selling n n They do not seek to obtain a direct order from their customers n n Primary goal is to persuade customers to place orders with distributors or wholesalers National account managers Support Salespeople Professional Salespeople Missionary Salespeople

18 Dr. Rosenbloom Field Selling n n Support the sales force in a number of ways n n Technical support salespeople assist with technical aspects of sales presentations n n Merchandisers may set up product displays National account managers Missionary Salespeople Professional Salespeople Support Salespeople

19 Dr. Rosenbloom Telemarketing n n Utilizing the telephone for prospecting, selling, and/or following up with customers n n Outbound: the salesperson uses the telephone to call customers n n Inbound: Firms which have customers calling the vendor company to place orders (toll-free phone numbers) Telemarketing

20 Dr. Rosenbloom The Personal Selling Process Prospecting Pre- Approach Presentation Handling Objections Approach Follow-Up Need Identification Gaining Commitment

21 Dr. Rosenbloom The Personal Selling Process Prospecting n Prospecting involves finding qualified sales leads n Qualified sales leads: potential customers that have a need for the salespersons product, and are able to buy n Referrals: obtained by the salesperson asking current customers if they know of someone else who might have a need for the salespersons product n Cold-calling: means contacting prospective customers without a prior arrangement

22 Dr. Rosenbloom n Zip Pak Prospecting Through Advertising

23 Dr. Rosenbloom n Deloitte & Touche Referrals

24 Dr. Rosenbloom The Personal Selling Process Pre-approach n The collection of information about the potential customer and the customers company prior to the initial visit n Researching the prospect and the company will assist the salesperson in planning the initial presentation to the prospective customer

25 Dr. Rosenbloom The Personal Selling Process Approach n The development of rapport with the customer n The chance to make a good first impression n The salesperson should adapt to the potential customers social style

26 Dr. Rosenbloom Social Styles AnalyticalDriver AmiableExpressive Fact-oriented Risk Takers Risk Adverse People-oriented

27 Dr. Rosenbloom Social Styles Risk Takers Analytical Driver AmiableExpressive Fact-oriented Risk Adverse People-oriented n Very fact-and-detail oriented n Require time to make decisions n Not interested in socializing n The salesperson should inundate the analytical with facts and figures that can be supported with documentation

28 Dr. Rosenbloom Social Styles Risk Takers Analytical Driver AmiableExpressive Fact-oriented Risk Adverse People-oriented n Action-and goal oriented, and makes quick decisions n Basic facts and not big on socializing n The sales person should provide the bottom-line information first and then work backward to fill-in essential details

29 Dr. Rosenbloom Social Styles Risk Takers Analytical Driver Amiable Expressive Fact-oriented Risk Adverse People-oriented n A visionary with big ideas for the future but not a detail- oriented individual n Hesitant to make quick decisions and will seek consensus from others n Seeks to socialize with the salesperson n The salesperson should provide assurances that will reduce the amiables feeling of risk

30 Dr. Rosenbloom Social Styles Risk Takers Analytical Driver Amiable Expressive Fact-oriented Risk Adverse People-oriented n Loves to socialize and will frequently base the purchase decision on the relationship with the salesperson n The salesperson should establish a personal relationship with the expressive by telling anecdotal stories, by socializing outside the office and by relating personal information

31 Dr. Rosenbloom The Personal Selling Process Need Identification n Requires asking probing questions of the prospective customer to determine needs n The salesperson should ask open-ended questions n Make sure that the customers needs and potential concerns are addressed

32 Dr. Rosenbloom The Personal Selling Process Presentation n The focus of the sales presentation is the salespersons explanation of how the features of the product provide benefits n Presentation may be flexible or memorized n The salesperson should be prepared to provide documentation for any statements of fact that are made

33 Dr. Rosenbloom The Personal Selling Process Handling Objections n The salesperson may have failed to provide adequate information, or have not demonstrated how the product meets the needs of the prospect n Objection as a sign of interest on the part of the prospect n Provide information that will ensure the prospects confidence in making the purchase

34 Dr. Rosenbloom The Personal Selling Process GainingCommitment n Commitment is gained when the prospect agrees to take the action sought by the salesperson n The salesperson must ask for commitment

35 Dr. Rosenbloom The Personal Selling Process Follow- Up n The salesperson complete any agreed upon actions n The salesperson should stay in touch after the sale by writing thank-you notes, clipping and mailing newspaper articles of interest to the prospect and calling on the customer to ensure the customers satisfaction

36 Dr. Rosenbloom Sales Certification n n Several organizations now offer certification programs that are designed to increase the professionalism and expertise of the salespeople n Sales and Marketing Executives International (SMEI) n Hospitality Sales and Marketing Association International (HSMAI) n National Association of Sales Professionals (NASP)

37 Dr. Rosenbloom Sales Management n n Recruit, train, motivate, and evaluate their sales representatives n n Manage territories n n Develop sales plans and sales forecasts n n Identify business opportunities and create appropriate strategies n n Encourage the sales team to create added- value for the customer

38 Dr. Rosenbloom Recruiting Sales Management n n Individuals with desirable salesperson traits n n Individuals whose values and goals match those of the firm Salesperson Empathetic Competitive Goal-oriented Adaptive Custome r- oriented Enthusiastic Organized Self-motivated

39 Dr. Rosenbloom Sales Force Training n n Train the new sales representatives on product and customer knowledge and selling skills n n Sales training is expensive but the pay off is worth it. n n All sales representatives should periodically receive training to keep up-to-date and to keep their skills honed Sales Management

40 Dr. Rosenbloom Motivating the Sales Force n n Provide further motivation to salespeople and to encourage salespeople to focus on the priories of the company n n Reward when the pre-specified performance level (quota) is reached Sales Management Sales Force Quotas

41 Dr. Rosenbloom Motivating the Sales Force n n Regular praising of salespeople and let them know their efforts are appreciated n n Rapport-building, open communication, and modeling behavior n n Good sales management feedback Sales Management Sales Coaching

42 Dr. Rosenbloom Sales Management Sales Force Compensation Regional Salaries

43 Dr. Rosenbloom Sales Management Sales Force Compensation Sales Productivity Straight Salary Plan n The sales force have greater security but no desire to put extra efforts

44 Dr. Rosenbloom Sales Management Sales Force Compensation Sales Productivity Commission Plan n A great deal of insecurity due to uncontrollable factors like economic recession

45 Dr. Rosenbloom Sales Management Sales Force Compensation Bonus paid on this difference n Salary plus Commission

46 Dr. Rosenbloom Evaluation of Performance n n Sales managers should provide continual guidance and feedback n n Use more quantitative methods of evaluation to reduce bias in the evaluation process Sales Management

47 Dr. Rosenbloom Territory Organization and Management n n Which method to organize the territory? n n By product line or by geographical area n n Around customer Sales Management u u The salesperson calls on customers that represent dozens of different industry (more traditional) u u The salesperson is asked to call on customers in one or two specific industries, regardless of where the customer is located geographically

48 Dr. Rosenbloom Territory Organization and Management n n Each salesperson should feel his/her territory offers as much potential as each colleagues territory n n Each salesperson should feel the territory division does not require that he/she work any harder than any other salesperson Sales Management Territory Allocation

49 Dr. Rosenbloom Territory Organization and Management n n The sales manager should help the sales force maximize their territories potential n n Make sure that the salespeople are not meeting their quotas from the large purchases of one key buyer n n Utilize market research to ensure no potential accounts are being overlooked in any given territory Sales Management Territory Potential

50 Dr. Rosenbloom Sales Force Technology n n The use of technology among sales forces is growing n n Sales managers must be computer literate n n Notebook computers, cellular phones, and portable fax machines

51 Dr. Rosenbloom Sales Force Technology n Palm Computing, Inc.

52 Dr. Rosenbloom Legal and Ethical issues n n Obey the instructions of the company n n Act with due diligence n n Be responsible for the companys property n n Exhibit loyalty n n Relay information to the company that is relevant Salespersons Obligations

53 Dr. Rosenbloom Legal and Ethical issues Companys Responsibility n n Comply with any agreement made between the company and the salesperson n n Reimburse the sales expenses incurred while carrying out the business n n Warn the salesperson of any risks associated with business practices n n Protect the salesperson against legal liability

54 Dr. Rosenbloom Unethical/Illegal Behaviors n n Price discrimination and unfair pricing n n Gifts, gratuities, and bribes n n Misleading advertising n n Unfair competitive practices n n Defrauding customers n n Unfair credit practices n n Price collusion with competitive firms

55 Dr. Rosenbloom Selling Activities n Performing the sales function n Working with orders n Servicing the product n Servicing the account n Providing the information to management n Participating in conferences/meetings n Training and recruiting n Entertaining customers n Traveling n Working with distributors

56 Dr. Rosenbloom Missionary Selling Technical Selling New-business Selling Retail Selling n Build sales volume by providing customers with promotional assistance in the form of advertising and sales promotion Trade Selling Specific Types of Sales Jobs Telemarketing

57 Dr. Rosenbloom Trade Selling Technical Selling New-business Selling Retail Selling n Where trade salespeople sell to, missionary salespeople sell for its direct consumers Missionary Selling Specific Types of Sales Jobs Telemarketing

58 Dr. Rosenbloom Missionary Selling Trade Selling New-business Selling Retail Selling n Often technically trained in chemistry, engineering, and computer science n Support the regular sales force or help sell the product Technical Selling Specific Types of Sales Jobs Telemarketing

59 Dr. Rosenbloom n Used in industries that have one time or very infrequent sales, thus, salespeople must constantly develop new leads to generate sales Specific Types of Sales Jobs Missionary Selling Trade Selling Technical Selling Retail Selling New-business Selling Telemarketing

60 Dr. Rosenbloom n Wide range of skills required n Can require knowledge, communication skills, and ability to work with diverse customers Specific Types of Sales Jobs Missionary Selling Trade Selling Technical Selling New-business Selling Retail Selling Telemarketing

61 Dr. Rosenbloom n Telemarketing uses outbound calls to: n Open new accounts n Qualify advertising leads n Service existing business Specific Types of Sales Jobs Missionary Selling Trade Selling Technical Selling New-business Selling TelemarketingTelemarketing Retail Selling

62 Dr. Rosenbloom n Aptitude n Skills Level n Motivational Level n Role Perceptions n Personal Characteristics n Adaptability Salesperson Performance


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