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Chapter Two Adjusting to the Dynamic Personal Selling Environment PowerPoint presentation prepared by Dr. Rajiv Mehta.

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Presentation on theme: "Chapter Two Adjusting to the Dynamic Personal Selling Environment PowerPoint presentation prepared by Dr. Rajiv Mehta."— Presentation transcript:

1 Chapter Two Adjusting to the Dynamic Personal Selling Environment PowerPoint presentation prepared by Dr. Rajiv Mehta

2 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 2 Learning Objectives Megatrends affecting personal selling.Megatrends affecting personal selling. Adapting to megatrends.Adapting to megatrends. Professional salespeople as micro- marketing managers.Professional salespeople as micro- marketing managers. What megatrends are affecting personal selling now and what megatrends will affect personal selling in the foreseeable future.What megatrends are affecting personal selling now and what megatrends will affect personal selling in the foreseeable future. How online sales channels are empowering customers, especially giant retailers.How online sales channels are empowering customers, especially giant retailers. After reading this chapter, you should understand: Royalty-Free, Digital Vision/Getty Images

3 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 3 Learning Objectives contd How developments in telecommunications technology are dramatically changing personal selling.How developments in telecommunications technology are dramatically changing personal selling. Why rising personal selling costs are encouraging salespeople and their companies to make increasing use of alternative direct- marketing techniques.Why rising personal selling costs are encouraging salespeople and their companies to make increasing use of alternative direct- marketing techniques. What current trends in information management will affect how salespeople do their jobs.What current trends in information management will affect how salespeople do their jobs. Why todays professional salespeople need to be much like micro-marketing managers in their expanding roles.Why todays professional salespeople need to be much like micro-marketing managers in their expanding roles. After reading this chapter, you should understand: Royalty-Free, Digital Vision/Getty Images

4 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 4 Megatrends Affecting Personal Selling Salespeople must adapt to 3 major megatrends to enhance their effectiveness and efficiency: 1. Behavioral forces 2. Technological forces 3. Managerial forces Royalty-Free, Digital Vision/Getty Images

5 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 5 Megatrends: Behavioral Forces

6 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 6 Megatrends: Behavioral Forces contd Buyers attitudes, preferences, and behaviors are changing, necessitating salespeople to modify their selling strategies and approaches.Buyers attitudes, preferences, and behaviors are changing, necessitating salespeople to modify their selling strategies and approaches. More expert and demanding buyers Rising customer expectations Micro-segmentation of domestic markets Expanding power of giant retailers Globalization of markets Empowerment of customers Behavioral forces include: Chapter Review Question: What specific market and competitive forces are changing personal selling and buyer-seller relationships? What are their effects? Royalty-Free, Digital Vision/Getty Images

7 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 7 Megatrends: Empowerment of Customers

8 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 8 Megatrends: Technological Forces

9 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 9 Todays successful salespeople are those who can make skillful and efficient use of technology to increase their efficiency and productivity in serving customers.Todays successful salespeople are those who can make skillful and efficient use of technology to increase their efficiency and productivity in serving customers. Megatrends: Technological Forces contd Sales force automation Virtual sales offices (home, automobile, or virtually anywhere) Electronic commerce Technological forces include: Chapter Review Question: Name some major advances in telecommunications and computer technology that are affecting personal selling. Describe briefly how salespeople can use each to improve their effectiveness and efficiency. Royalty-Free, Photodisc/Getty Images

10 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 10 Megatrends: Technological Forces contd Among the most important of the technological innovations in sales force automation include: Sales Force Automation Virtual Sales Offices Electronic Commerce Portable computers Electronic data interchange Videoconferencing Multifunction cell phones and satellite pagers Voice mail and Electronic mail Instant messaging Home Office Virtually Anywhere Internet: Blogs, Podcasting Screen-Sharing, WebEx Intranet Extranet Royalty-Free, Digital Vision/Getty Images Royalty-Free, Photodisc/Getty Images

11 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 11 Megatrends: Managerial Forces

12 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 12 Megatrends: Managerial Forces contd In response to the dynamic behavioral and technological megatrends, sales organizations are trying various strategies to achieve profitable sales growth and closer customer relationshipsIn response to the dynamic behavioral and technological megatrends, sales organizations are trying various strategies to achieve profitable sales growth and closer customer relationships Efforts to reduce selling costs Shift to direct marketing alternatives Certification of salespeople Managerial forces include: Royalty-Free, Digital Vision/ Getty Images

13 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 13 Megatrends: Managerial Forces contd Median cost of a business-to-business sales call: more than $250 (varies widely by industry and company) For some large industrial companies, a sales call can cost $400 to $1,000 or more because of the unusual complexity of both the selling process and the product itself To reduce selling costs, many manufacturers and service providers are aggressively seeking alternatives to large national sales forces (e.g., use of middlemen, part-time salespeople, and direct marketing efforts). Efforts to Reduce Selling Costs Chapter Review Question: What are some companies doing to reduce selling costs? Royalty-Free, Photodisc/Getty Images

14 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 14 Megatrends: Managerial Forces contd To sell to organizational buyers, several direct marketing alternatives support or bypass field salespeople:To sell to organizational buyers, several direct marketing alternatives support or bypass field salespeople: Shift to Direct Marketing Alternatives 1.Direct mail 2.Telemarketing, which includes: TelesellingTeleselling Kiosks (or computer salespeople)Kiosks (or computer salespeople) FacsimileFacsimile Personalized Personalized Chapter Review Question: In your own words, define the term direct marketing. Describe some tools and techniques used in direct marketing. What is teleselling? How have many former field salespeople who were transferred to teleselling increased their incomes? © Royalty-Free/CORBIS

15 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 15 Figure 2.1: Telemarketing Applications, Advantages, and Disadvantages

16 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 16 Megatrends: Managerial Forces Because of the publics negativism toward personal selling, efforts have been directed at certifying sales personnel Certification of Salespeople Certification usually requires that a salesperson: Gains a certain amount of practical experience Enrolls in educational seminars and courses Passes a sales competency exam Provides some professional references Agrees to comply with a code of conduct Chapter Review Question: Describe the three broad megatrends affecting personal selling. © Royalty-Free/CORBIS

17 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 17 Adapting to Megatrends Salespeople and their companies can adapt to megatrends using various information management toolsSalespeople and their companies can adapt to megatrends using various information management tools Behind the forces that are influencing salespeople and the way they operate are four key trends in the management of information:Behind the forces that are influencing salespeople and the way they operate are four key trends in the management of information: (1) Database marketing(1) Database marketing (2) Data warehousing(2) Data warehousing (3) Push technology(3) Push technology (4) Data mining(4) Data mining Royalty-Free, Digital Vision/Getty Images

18 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 18 Four Major Trends in Information Management 1.Database marketing: A database is a large computerized file of customers and potential customers profiles and purchase patterns. 2.Data warehousing: A very large, corporate-wide database, built with data from a number of information systems already in place in the company. 3.Data mining: Refers to the process of using statistical analysis to detect relevant patterns or relationships between and among variables in a database. 4.Push technology: Push technology is the latest iteration of combined with data warehousing to discern what your customers need and exactly when they need it. Chapter Review Question: How are information management trends affecting salespeople?

19 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 19 Information management and relationship selling go hand- in-hand as part of the evolutionary development of a marketing strategy used in one-to-one marketing and by salespersons as one-to-one relationship builders. Information Management and Relationship Selling

20 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 20 Concentrates on selling more goods, more profitably, to fewer selected customers (instead of selling more goods to more customers) Information Management and Relationship Selling contd Building trust and long-term relationships with customers determines the success of one-to- one marketing strategies, especially in business-to-business markets One-to-one marketing: Salespeople as one-to-one relationship builders: © Royalty-Free/CORBIS

21 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 21 Professional Salespeople as Micro-Marketing Managers contd In addition to selling products, todays sales representatives must serve customers as consultants by offering expert advice for making a customers business operations more profitableIn addition to selling products, todays sales representatives must serve customers as consultants by offering expert advice for making a customers business operations more profitable Building partnerships with their customers Buyer-seller team coordinators Market analysts and planners Customer service providers Buyer behavior experts Opportunity spotters Intelligence gatherers Sales forecasters Marketing cost analysts Allocators of scarce products Field public relations people Adopters of advanced sales technology Salespeople offer expert advice on: Chapter Review Question: Why must todays professional salesperson learn to function more like a micro-marketing manager in the field?

22 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 22 Chapter Review Questions 1.Why do some companies see selling in the United States as increasingly like selling internationally? 2.Describe the type of assistance that salespeople may receive from the companys telemarketing staff. What can field salespeople do to increase the benefits they derive from telemarketers?

23 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 23 Topics for Thought and Class Discussion 1.Which of the advances in telecommunications and computer technology do you think will provide the most help to salespeople over the next decade? 2.Discuss how you think salespeople can take advantage of each of the phenomena taking place under the managerial megatrend. 3.How do you think the rising cost of personal selling and the growth of direct-marketing techniques will affect salespeople?

24 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 24 Internet Exercises 1.Many major companies sell more products and services online via e-commerce than they do in traditional brick- and-mortar stores or outlets. Check out the websites of each of the following companies and see whether they offer purchasing options online. Also, try to find out their dollar sales volumes online and off-line compare. Cisco Systems (www.cisco.com)Cisco Systems (www.cisco.com) Williams-Sonoma (www.williams-sonoma.com)Williams-Sonoma (www.williams-sonoma.com) Pitney Bowes (www.pitneybowes.com)Pitney Bowes (www.pitneybowes.com) Staples (www.staples.com)Staples (www.staples.com)

25 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 25 Internet Exercises contd 2.Salespeople need to keep up with the latest technologies (including computer software) that might affect how they do their sales jobs. Go to the following websites, or to other professional selling-related websites, and find three innovations that you think will help salespeople become more effective and efficient. Describe these innovations, and explain why you feel each will increase salesperson productivity. Sales and Marketing Management (www.salesandmarketing.com/smm/index.jsp)Sales and Marketing Management (www.salesandmarketing.com/smm/index.jsp) Siebel Systems (www.siebel.com)Siebel Systems (www.siebel.com) SalesForce.com (www.salesforce.com)SalesForce.com (www.salesforce.com) SellingPower.com (www.sellingpower.com)SellingPower.com (www.sellingpower.com)

26 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 26 Projects For Personal Growth 1.Assume that a firm has divided the United States into ten regional markets based on need for its productsindustrial lawn mowers, lawn sweepers, watering equipment, and garden tools. Also assume that the companys CEO has asked you to prepare a map of the United States showing these regional markets. Clearly label each region according to how you identify it. For example, perhaps part of the southwestern United States has different needs owing to the terrain and desert-like environment of the area, whereas part of Florida may be identified with abundant moisture, humidity, and tropical plants. Do any library research necessary to complete your map.

27 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 27 Projects For Personal Growth contd 2.Ask two business-to-business salespeople about telecommunication use in their sales work. What SFA equipment has been most helpful to them? Why? How have their companies assisted them in selling and in serving prospects and customers? What other equipment would they like? What other support would they like from their companies in helping them work with prospects and customers?

28 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 28 Case 2.1: Savoring Success and Contemplating the Future 1.Do you think the use of high-tech equipmentlaptop computers, cell phones, pagers, and the likewill help the young saleswomen appear more professional? 2.Assume you are a friend of one of the women. What five ideas would you give her about using the Internet and other telecommunication tools to make her more effective and efficient in her sales assignments?

29 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 29 Case 2.1: Savoring Success and Contemplating the Future contd 3.Are the womens ideas about making their sales jobs easier realistic? Which ones make the most sense? Which ones make the least sense? Could the company provide a lot of this information for customers on an extranet or on the Internet? 4.Do the women have an accurate understanding of what many salespeople are expected to do today? Why or why not? What can the company do to help its salespeople handle their expanded roles?

30 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 30 Case 2.1: Savoring Success and Contemplating the Future contd 5.In their conversation, do the women seem unnecessarily concerned about taking on their new territorial assignments? Do you think any special issues arise for saleswomen but not for salesmen? Why or why not?

31 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 31 Case 2.2: Were Trying To Cut Costs... We Cant Afford Laptops Now! 1.Which customers would you advise Russ to call on with Homer? 2.What should Russ say to Homer about purchasing laptop computers for the full-time sales force? Do you think S&B should buy laptop computers for the fifteen manufacturers reps, too? Would any other equipment aid personal selling at S&B? If so, should S&B be asked to purchase it for the salespeople? 3.How might Russ recommend buying laptop computers without Homer seeing it as running counter to S&Bs current cost-reduction push? Will the laptops pay off for S&B? Could the company expand its markets through the use of computers and ? Case 2.2 is found online at

32 Copyright © Houghton Mifflin Company. All rights reserved. Chapter 2 | Slide 32 Case 2.2: Were Trying To Cut Costs... We Cant Afford Laptops Now! contd 4.Do you think Russ should consider looking for another job now? Why or why not? 5.If Homer were to retire and recommend Russ as his successor, what actions would you advise for Russ if he became S&Bs regional sales manager? How else, besides making field sales calls, might S&B reach prospects and customers? How well would the current salespeople accept your suggestions? How would you address their concerns? 6.What other situations and possible questions should Russ prepare for during his five days traveling with Homer?


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