2 Personal Selling – Defined An important part of marketing that relies heavily on interpersonal interactions between buyers and sellers to initiate, develop, and enhance customer relationships.
3 Trust-Based Relationship Selling Requires that salespeople earn customer trust and that their selling strategy meets customer needs and contributes to the creation, communication, and delivery of customer value.
4 Customer ValueThe customer’s perception of what they get for what they have to give up.
5 Importance of Sales Dialogue Allows for more thorough qualifying.Demonstrates sincere interest in the prospective customer.Helps Determine prospective customer’s unique needs.Ensures meaningful presentation of value- added solutions.Promotes open communication and satisfaction feedback.Sales Dialogue: business conversation between buyers & sellers that occur as salespeople attempt to initiate, develop, & enhance customer relationships.
6 Transaction-Focused Selling vs. Trust-Based Relationship Selling
7 Transaction-Focused Selling vs. Trust-Based Relationship Selling
8 Evolution of Personal Selling Peddlers selling door to door served as intermediariesSelling function became more structured1800s1900s2000sIndustrial RevolutionPost-Industrial RevolutionWar and DepressionModern EraBusiness organizations employed salespeopleSelling function becoming more professional
9 Evolution of Personal Selling (The past several decades) From reliance onCanned Sales Presentation: sales presentations that include scripted sales calls, memorized presentations, and automated presentations.To greater focus onSales Professionalism: a customer-oriented approach that uses truthful, non-manipulative tactics to satisfy the long-term needs of both the customer and the selling firm.
11 Contributions of Personal Selling: Salespeople and Society Salespeople help stimulate the economy.Salespeople help with the diffusion of innovation.
12 Contributions of Personal Selling: Salespeople and the Employing Firm Salespeople generate revenue.Salespeople provide market research and customer feedback.Salespeople become future leaders in the organization.
13 Contributions of Personal Selling: Salespeople and the Customer Salespeople provide solutions to problems.Salespeople provide expertise and serve as information resources.Salespeople serve as advocates for the customer when dealing with the selling organization.
15 Alternative Personal Selling Approaches Stimulus Response SellingMental States SellingNeed Satisfaction SellingProblem Solving SellingConsultative SellingAdaptive Selling: the ability of a salesperson to alter his/her sales messages and behaviors during a sales presentation or as they encounter different sales situations and different customers.
16 Stimulus Response Selling Simple in design; assumes conditioned response improves likelihood of success; a risky and unreliable strategy.
17 Mental States SellingAssumes buyer can be led through mental states; promotes one-way communication; a risky and unreliable strategy.
19 Need Satisfaction Selling Interact with buyer to determine existing needs; present solutions to needs; solutions limited to seller’s products.
20 Problem Solving Selling Interact with buyer to determine existing and potential needs; present multiple solutions not limited to seller’s products.
21 Strategic Orchestrator Consultative SellingStrategic OrchestratorBusiness ConsultantLong-Term AllyThe process of helping customers reach their strategic goals by using the products, services, and expertise of the selling organization.
26 Sales Management Process Defining the Strategic Role of the Selling FunctionDeveloping the SalesforceDirecting the SalesforceDetermining Salesforce Effectiveness and Performance
27 Sales Management Process Defining the Strategic Role of the Sales FunctionSalesforce structureSales strategiesDeveloping the SalesforceRecruiting and selecting sales talentEstablishing training strategies/programsDirecting the SalesforceSetting salesforce goals and objectivesImplementing incentive programsOverseeing and coaching salesforceDetermining Salesforce Effectiveness and PerformanceEstablishing and administering evaluation measures & systemsProviding feedback for future development
28 Sales Management Positions (Example) Vice President of SalesRegional Sales ManagerField Sales Manager
29 Sales Management Best Practices Create a customer-driven culture throughout the sales organization and firm.Recruit and hire the best sales talent.Train and coach the right skill set.Focus on key strategic issues by segmenting accounts in meaningful ways and providing differentiated offering to find, win, and retain customers.
30 Sales Management Best Practices Implement formal sales and relationship-building processes.Use information technology effectively to learn about customers.Integrate sales with other business functions, especially marketing.
31 Developing and Implementing Effective Sales Strategies Account Targeting StrategyClassification of accounts into categoriesRelationship StrategyType of relationship sought for each categorySelling StrategyDevelop selling approach for each type or relationship
32 Developing and Implementing Effective Sales Strategies Selling Strategy – Involves the planning of sales messages and interactions with customers. Selling strategy can be defined and executed at three levels.Groups of CustomersIndividual CustomerCustomer Encounters123
34 Sales Channel Strategy Determination of how the organization will reach its customers when executing the sales effort. Options include a company salesforce (individual or teams), industrial distributors, independent representatives, internet, telemarketing, and so forth.
35 Sales Structure Issues The degree to which each salesperson could perform all the selling tasks.SpecializationThe degree to which authority and responsibility are placed at higher management levels.CentralizationThe number of individuals who report to each sales managerSpan of Control
40 Recruitment and Selection Process – Locating – Career/Job FairsCollege Career CentersOn-line Career Sites (e.g., Monster.com and Careerbuilder.com)Internal (e.g., employee referral)Employment Agencies
41 Recruitment and Selection Process – Evaluating – Resume ScreeningInterviewsAssessmentsRole PlaysWritten QuestionnairesRide-AlongsBackground Checks
48 The Role of Power Sources Advice Legitimate Coercive Reward Expert ReferentDon’t be reluctant to use any form of power.Be careful not to overuse the power of position or punishment.Avoid rewarding all desired job outcomes or behaviors.Enhance power through learning and establishing a good working relationship with subordinates.
49 Communication and Coaching Encourage open communication.Seek feedback.Use persuasion and promises.Establish a team approach.Encourage self-evaluation and correction.Ensure salespeople diagnose success as well as failures.Recognize salespeople are individuals.Follow-up on coaching sessions.Serve as a role model.Coaching: Focus on continual development of salespeople through provision of feedback and serving as a role model.
56 Criteria for Evaluating Salesperson Performance Behavior-BasedEvaluation of the activities salespeople perform in the generation of sales and in completing non-selling responsibilities (e.g., training, product demonstrations, sales calls, etc.).Outcome-BasedEvaluation of the actual sales results salespeople achieve (e.g., sales quota, market share gain, etc.).Evaluation Methods Should Possess:ReliabilityValidityStandardizationPracticalityComparabilityDiscriminabilityUsefulness
57 Sales 2.0The use of customer-driven processes enabled by the latest Web technology to co-create value with customers.CRMSocial NetworkingCloud Computing