1. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin18
Chapter Eighteen
Personal Selling
Personal Selling
McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2. Personal Selling Relation to Text This slide relates to page 593.
Summary Overview Personal selling involves a person-to-person communications process. The emphasis placed on personal selling varies from firm to firm, and depends on the product or service being marketed, the size of the organization, and the type of industry.
In an integrated marketing communications program, personal selling is a partner with, not a substitute for, other promotional mix elements.
Use of this slide Use this slide to introduce the topic of personal selling.

3. Determining the Role of Personal Selling
What information must be exchanged between firm and potential customer?
What are the alternative ways to carry out these communications objectives?
Relation to text
This slide relates to material on pp of the text.
Summary Overview
In order for management to determine the role of personal selling in the overall IMC program, four questions should be asked:
What information must be exchanged between the firm and potential customer?
What are the alternative ways to carry out these communications objectives?
How effective is each alternative in carrying out the needed exchange?
How cost effective is each alternative?
Personal selling is a unique tool in the promotional mix because communication flows directly from sender to receiver. This allows the sender to receive immediate feedback from the receiver. However, this is one of the most costly forms of communication and marketers must weigh these costs against the benefits of personal contact with the customer.
Use of this slide
This slide can be used to discuss the role of personal selling in the IMC program.
How effective is each alternative in carrying out the needed exchange?
How cost effective is each alternative?

4. If Sales Force is a Major Part of IMC
Product or Service
Complex goods or services
Major purchase decisions
Personal demonstration required
Price
Final price negotiable
Price provides adequate margin
Channels
Channel short and direct
Training needed by intermediaries
Selling needed to push product through
Intermediaries can provide personal selling
Advertising
Media do not provide an effective link
Information cannot be provided by media
Sparse market reduces advertising economies
Relation to text
This slide relates to material on p. 594 and Figure 18-1 of the text.
Summary Overview
The slide reviews the type of product and related marketing mix where it would be appropriate for a sales force to be a major part of an IMC program
Products
Complex products, longer selling cycles, demonstration required
Price
Prices are negotiable and margins can support the expense of a sales force
Channels
Short and direct channels, product training required, personal selling needed to push through channel
Advertising
Media do not provide an effective link to the customer, information cannot be provided through media
Sparse market reduces economies of advertising
Use of this slide
This slide can be used to discuss the products and related marketing mix situations that that would necessitate the use of a personal selling effort.

5. Stages of Personal Selling Evolution
Provider
Selling activity limited to order-taking and delivery
Attempting to persuade customer to buy
Persuader
Seeking out buyers perceived to have a need
Prospector
Relation to text
This slide relates to material on p. 595 and Figure 18-3 of the text.
Summary Overview
The personal selling area is constantly evolving as the marketing environment itself evolves. This slide summarizes the stages of the evolution of personal selling which are:
Provider stage – selling activity limited to order-taking
Persuader stage – attempting to persuade customer to buy
Prospector stage – seeking out buyers perceived to have a need
Problem-solver stage – buyers identify problems to be met by goods and services
Procreator stage – seller determines buyer needs and fulfills them
As firms evolve through these five stages they have to assume different market orientations, as well as different organizational designs, staffing, and compensation programs. Each stage also requires different promotional strategies, each integrated with personal selling to achieve the maximum communications effect.
Use of this slide
This slide can be used to discuss the evolution of personal selling.
Buyers identify problems to be met by goods
Problem-solver
Seller determines buyer needs and fulfills them
Procreator

6. New Roles for Salespeople
Surveying
Mapmaking
Relation to text
This slide relates to material on pp of the text.
Summary Overview
As the business world goes through transitions and changes the role of salespeople is also changing. This slide lists some of the additional activities sales people will engage in as they take on new roles.
Surveying – educating themselves about their customers’ businesses
Mapmaking – outlining both an account and a solutions strategy
Guiding – bringing incremental value to the customer
Fire starting – driving customers to commit to a solution
These new roles help create added value and develop a long-term relationship between buyer and seller.
Use of this slide
This slide can be used to discuss some of the activities salespeople engage in to remain effective as they take on new roles.
Fire Starting
Guiding

7. Customer Relationship Management
Relationship Marketing:
The organization’s effort to develop a long-term, cost-effective link with individual customers for mutual benefit.
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide reviews the definition of relationship marketing. The evolving role of personal selling puts a greater emphasis on the relationship between customer and company. The modern salesperson is attempting to establish a long-term, symbiotic relationship with clients, working with them as a solution provider.
Rather than just selling, the sales department works with marketing to use techniques like database marketing, message differentiation to different target markets, and tracking promotional effect to improve the relationship.
Use of this slide
This slide can be used to discuss the new role of the sales person as they become less focused on persuasive techniques used to sell a product to a more market oriented partnership with the customer.

8. SAP Software Assists CRM
Relation to text
This slide relates to the material on p and Exhibit 18-1.
Summary Overview
A number of companies now offer software that can help with the implementation of a CRM program, including Seibel Systems, Salesforce.com, SAP, and PeopleSoft. Adoption of a CRM approach will requires sales managers to develop nontraditional sales strategies and emerging technologies to support the effort.
This slide shows an ad for SAP.
Use of this slide
This ad can be used during a discussion of how CRM offers a more personalized form of communication that crosses the previous boundaries between personal selling and other promotional tools.

9. Keeping a Customer Relation to text
This slide relates to material on pp. 597 and Figure 18-4 of the text.
Summary Overview
This slide summarizes the factors that are very important to customers. Regardless of the type of sales transaction, consumer only, B-to-B, or both, the top three issues were:
Perceived price to value proposition
Customer service, and
Product quality
Use of this slide
This slide can be used to discuss the things that are valued by customers, and that must be maintained if the customer is to be retained.

10. Types of Sales Jobs Creative Selling Order Taking Missionary Sales
Assesses situation, determines needs
Gets order
Creative Selling
Presents capability of satisfying needs
This role is much more casual
Often involves straight rebuying
Order Taking
Relation to text
This slide relates to material on pp and Figure 18-5 of the text.
Summary Overview
This slide lists the three classifications of salespeople which are:
Creative selling – requires skill and preparation, and the ability to assess the situation and determine needs, present capability to satisfy those needs, and get an order.
Order taking – role is more casual and often involves straight rebuying by the customer but can also involve modified rebuys which requires creative selling
Missionary sales rep – role is one of supporting and servicing the customer rather can trying to get new business
Not all firms treat these responsibilities the same, nor are their salespeople limited to these tasks.
Use of this slide
This slide can be used to discuss the three types of sales positions.
Essentially a support role
May not actually take the order
Missionary Sales

11. Personal Selling Responsibilities
Following up and servicing the account
Closing the sale
Demonstrating product capabilities
Recommending a way to satisfy them
Determining customers’ needs and wants
Locating prospective customers
Relation to text
This slide relates to material on pp and Figure 18-5 of the text.
Summary Overview
This slide summarizes the duties and the responsibilities of a salesperson, which are numerous and require a wide range of skills. These include:
Locating prospective customers
Determining customers’ needs and wants
Recommending a way to satisfy them
Demonstrating capabilities of the product
Closing the sale
Following up and servicing the account
Use of this slide
This slide can be used to discuss the responsibilities of the salesperson.

12. Sales People Have Many Duties
Relation to Text This relates to pp and Exhibit 18-2.
Summary Overview In many companies, sales people perform multiple roles, including creative selling, order taking, and customer service and support.
This slide shows an ad for CDW, a company that sells a variety of computer hardware and software products. They are promoting the multiple roles that sales account managers play in the company. The ad copy notes that CDW account managers are more than just order takers; they also work with client companies to solve their problems.
Use of this slide Use this slide when discussing the many hats that sale people are sometimes expected to wear.

13. Test Your Knowledge
With the evolution of personal selling, an individual salesperson's job requirements may include:
A) Determining customers' needs and wants
B) Demonstrating the capabilities of the firm
C) Following up and servicing the account
D) Locating prospective customers
E) All of the above
Ans: E

14. Traits of Effective Salespeople
1. Ego strength: a healthy self-esteem that allows one to bounce back from rejection.
2. Sense of urgency: wanting to get it done now.
3. Ego drive: a combination of competitiveness and self esteem.
4. Assertiveness: the ability to be firm, lead the sales process, and get one’s point across confidently.
5. Risk-taking: willing to innovate and take a chance.
Relation to text
This slide relates to material on p. 600 and Figure 18-6 of the text.
Summary Overview
This slide lists traits that are common to effective salespeople. Five of these traits are shown here including:
Ego strength
Sense of urgency
Ego drive
Assertiveness
Risk-taking
Sales managers often look for these traits in the hiring of their sales force. The importance of these traits may vary depending on the type of sales job.
Use of this slide
This slide can be used to discuss the traits that are common in effective salespeople.

15. Traits of Effective Salespeople
6. Sociable: outgoing, friendly, talkative, and interested in others.
7. Abstract reasoning: ability to understand concepts and ideas.
8. Skepticism: a slight lack of trust and suspicion of others.
9. Creativity: the ability to think differently.
10. Empathy: the ability to place oneself in someone else’s shoes.
Relation to text
This slide relates to material on p. 600 and Figure 18-6 of the text.
Summary Overview
This slide lists five additional traits that are common to effective salespeople. These include:
Sociability
Abstract reasoning
Skepticism
Creativity
Empathy
Sales managers often look for these traits in the hiring of their sales force. The importance of these traits may vary depending on the type of sales job.
Use of this slide
This slide can be used to discuss the traits that are common in effective salespeople.

16. Traits Buyers Like and Dislike
Desirable Traits
Objectionable Traits
Knowledgeable
Empathizes
Well organized
Prompt
Follows through
Has solutions
Punctual
Hard working
Energetic
Honest
Unprepared
Uninformed
Aggressive
Undependable
No follow through
Presumptive
Walk-ins
Gabbers
Problem avoiders
No personal respect
Relation to Text This slide relates to page 600 and Figure 18-7 of the text.
Summary Overview This slide shows the results of one company’s survey of buyers’ likes and dislikes regarding its sales force. It is quite different from the slides we just saw that listed the traits of the most effective salespeople.
Use of this slide This slide can be used when discussing what customers desire in a salesperson. It may be interesting to have students compare and contrast the 10 traits of effective sales people with this one. Is “assertiveness” on the salesperson traits list the same as “aggressive” on this list? Why is “empathy” in second place on the customer’s list of desirable traits, but number 10 on the other list?

17. Pros and Cons of Personal Selling
Advantages
Disadvantages
Two-way interaction with prospect
Messages may be inconsistent
Message can be tailored to recipient
Possible management-sales force conflict
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide summarizes the advantages and disadvantages of personal selling.
The advantages of personal selling deal primarily with the dyadic communications process, the ability to alter the message, and the opportunity for direct feedback. Some of the more significant disadvantages relate primarily to inconsistent messages, conflicts between sales and marketing, and costs.
Use of this slide
This slide can be used to discuss the advantages and disadvantages of personal selling.
Prospect isn't likely to be distracted
Cost is often extremely high
Seller involved in purchase decision
Reach may be very limited
Source of research information
Potential ethical problems

18. Personal Selling + Other Tools
Advertising
Public Relations
Personal Selling
Direct Marketing
The Internet
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide shows that personal selling is regularly combined with the other IMC tools including advertising, public relations, direct marketing, sales promotion, and the Internet.
This promotional tool both supports, and is supported by, other IMC program elements. More detailed discussion on combining personal selling with other promotional tools will follow.
Use of this slide
This slide can be used to introduce the fact that personal selling is rarely used alone.
Sales Promotion

19. Personal Selling + Advertising
Relation to text
This slide relates to the material on pp and Exhibit 18-5 that discusses how personal selling is combined with advertising.
Summary Overview
Studies suggest that combining advertising and personal selling is likely to improve reach, reduce costs, and increase the probability of a sale (assuming the advertising is effective, a concern reflected in this ad from Gordon Publications, Inc.). Unfortunately, many salespeople do not understand the role that advertising plays and the contribution it can make to supporting their sales efforts.
Research has shown that a company with no brand awareness or image has a disadvantage in their ability to get sales people in the door.
Use of this slide
This slide can be used to demonstrate how advertising supports the sales effort.

20. Test Your Knowledge
By servicing an account and by cooperating and empathizing with clients, salespersons are engaging in _____ activities on behalf of their firm.
A) Sales promotion
B) Advertising
C) Public relations
D) Direct marketing
E) Telemarketing
Ans: C

21. Personal Selling + PR Rep is often best source of PR
Representative of the organization
Involved in community
Relation to text
This slide relates to material on p of the text.
Summary Overview
This slide shows how personal selling can be combined with public relations. The public relations roles and activities of the sales person are as follows:
The sales rep is often the best source of PR
Sales people are representatives of the organization
Sales people are involved in community
Sales people create goodwill for the company
Their personalities, servicing of the account, cooperation, and empathy not only influence sales potential but also reflect on the organizations they represent.
Use of this slide
This slide can be used to demonstrate how the sales representative plays a public relations role in a company.
Creates goodwill

22. Personal Selling + Direct Marketing
Relation to text
This slide relates to the material on pp and Exhibit 18-6.
Summary Overview
This slide shows an ad for Phone Works, a company that helps organizations in the sales process including assisting in the development and implementation of direct marketing methods.
Various forms of direct marketing including traditional mail, telemarketing and are used by many companies to identify and quality prospects and provide them with information before they are contacted by a sales person.
Use of this slide
This ad can be used to discuss how companies are integrating various forms of direct marketing into their sales programs to make selling efforts more effective.

23. Personal Selling + Sales Promotion
Reseller
Sales Promotion
Targets
Consumer
Sales Force
Relation to text
This slide relates to material on p. 605 of the text.
Summary Overview
The program elements of sales promotion and personal selling support each other. For example, many of the sales promotions targeted to resellers are presented by the sales force, who will ultimately be responsible for removing or replace them as well.
Other promotional tools are designed to assist the sales staff. Flip charts, leave-behinds, and specialty ads can help salespeople with their presentations, serve as reminders, or just create goodwill.
Likewise, many sales promotions are targeted at the sales force itself. Incentives such as free trips, cash bonuses, or gifts are often used to stimulate sales efforts.
Use of this slide
This slide can be used to demonstrate how sales promotion can support the sales force.

24. Personal Selling + the Internet
Relation to text
This slide relates to the material on pp and Exhibit 18-8.
Summary Overview
Some companies have found that they can save time and money by conducting sales meetings online, rather than at a central location. This slide shows an ad for GoToMeeting.com, a company that provides conferencing, video conferencing and online meeting services.
The Internet is also predicted to help with the mundane tasks of order fulfillment and providing information. This will free up salespeople to do what they do best… sell and develop relationships.
Use of this slide
This slide can be used to discuss how the Internet is playing an increasingly important role in the personal selling process.

25. Evaluating the Personal Selling Effort
Relation to text
This slide relates to material on p. 607 and Figure of the text.
Summary Overview
This slide lists factors to be considered in the sales review process. An evaluation of the sales force should focus on “doing the right things, not just doing things right.” Like all other elements of the promotional mix, personal selling much be evaluated on the basis of its contribution to the overall promotional effort.
Use of this slide
This slide can be used to discuss the sales review process.

26. Characteristics Affecting Performance
The courage to change
A clear link between company culture & value to sales strategies
Relation to text
This slide relates to material on p.607 of the text.
Summary Overview
In a recent study of high-performing sales organizations, five characteristics were identified as being critical for differentiating effective versus noneffective performances. They are shown on this slide. Of course, many other factors contribute to the performance of the sales force as well.
Use of this slide
This slide can be used to discuss ways to evaluate the personal selling effort, which should be based on more than just sales criteria.
The strength of the field manager
Rigorous management processes that drive performance
Consistent training that leads to consistent execution

27. Evaluating Personal Selling
Provides good marketing intelligence?
Are follow-up activities conducted well?
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide shows the criteria for evaluating the contribution of the personal selling effort to the promotional program. The criteria lead to the following questions regarding the performance of the personal selling effort:
Provide good marketing intelligence?
Are follow-up activities conducted well?
Are promo programs being implemented?
Are communications objectives attained?
By combining these criteria with those used by the sales department, the promotions manger should be able to accurately assess the effectiveness of the personal selling program.
Use of this slide
This slide can be used to discuss the criteria for judging the personal selling effort’s contribution to the overall promotional program.
Are promo programs being implemented?
Are communications objectives met?

28. Test Your Knowledge
The ability of the sales force to feed back information regarding competitive programs and customer reactions contributes to the promotional program by fulfilling which evaluative criterion?
A) Attainment of communications objectives
B) Program implementation
C) Follow-up activities
D) Providing market intelligence
E) None of the above
Ans: D

29. Quantitative Measures of Sales Results
Orders
Sales Volume
Margins
Quantitative Measures
Customer Accounts
Relations to text
This slide relates to material on p. 608 and Figure of the text.
Summary Overview
This slide shows the quantitative sales related criteria that can be used to evaluate sales force performance. These include:
Orders – number, average order size, batting average, cancellations
Sales volumes – dollars, units, customer type, product category, market share, percent of sales quota achieved
Margins – gross, net profit, by customer type, by product category
Customer accounts – new accounts, lost accounts, percentage of accounts sold, overdue accounts, a/r amount, a/r collections made
Sales calls – number made on current and potential new customers, time spent per call, selling vs. non-selling time, frequency ratio
Selling expenses – per sales call, percentage of sales volume, percentage of sales quota by customer type, product category, direct and indirect selling ratios
Customer service – number of service calls, delivery costs per unit sold, displays set up, inventory time, number of customer complains, percentage of goods returned
Use of this slide
This slide can be used to discuss the quantitative measures that can be used to evaluate the sales force performance.
Sales Calls
Selling Expenses
Customer Service

30. Qualitative Measures of Sales Results
Selling Skills
Relations to text
This slide relates to material on p. 608 and Figure of the text.
Summary Overview
This slide shows the qualitative criteria that can be used to evaluate the sales force performance, which are:
Selling skills – knowing the company and its policies, knowing the competition, understanding and executing selling techniques, customer feedback, product and customer knowledge, quality of sales presentations, and communication skills.
Sales related activities – territory management, marketing intelligence, follow-ups, customer relations, reports, and personal characteristics
Use of this slide
This slide can be used to discuss the quantitative measures that can be used to evaluate the sales force performance.
Sales Related Activities