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Identify the different types of personal selling. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 17, YOU SHOULD BE ABLE TO: Discuss the nature and scope of personal selling and sales management in marketing. LO1 LO2 Identify the different types of personal selling. LO3 Explain the stages in the personal selling process. LO4 Describe the major functions of sales management. 17-2

MEET TODAY’S SALES PROFESSIONAL 17-3

SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT LO1 Personal Selling Cambridge Sales Sales Management Selling Happens Almost Everywhere “Everyone Lives by Selling Something” 17-4

SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT PERSONAL SELLING IN MARKETING LO1 Salespeople: Link the Firm and Its Customers Are the Firm in Consumers’ Eyes Play a Large Role in the Marketing Program 17-5

Salespeople & Relationship Selling SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT CREATING CUSTOMER VALUE LO1 Salespeople & Relationship Selling Identify Creative Solutions to Customer Problems Ease the Customer Buying Process Make the After-the-Sale Follow-Up 17-6

FIGURE 17-A Comparing order takers and order getters 17-7

THE MANY FORMS OF PERSONAL SELLING ORDER TAKING LO2 Order Taker Outside Order Takers Inside Order Takers Order Clerks Sales clerks Inbound Telemarketing 17-8

THE MANY FORMS OF PERSONAL SELLING ORDER GETTING LO2 Order Getter Outside Order Getters Inside Order Getters Outbound Telemarketing 17-9

FIGURE 17-1 How outside order-getting salespeople spend their time each week 17-10

THE MANY FORMS OF PERSONAL SELLING CUSTOMER SALES SUPPORT PERSONNEL LO2 Sales Engineer Team Selling 17-11

FIGURE 17-2 Stages and objectives of the personal selling process 17-12

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PROSPECTING LO3 Personal Selling Process Prospecting Stage 17-13

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PROSPECTING LO3 Types of Prospects Lead Prospect Qualified Prospect Cold Canvassing/Cold Calling 17-14

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PREAPPROACH LO3 Preapproach Stage Method When to Contact Expectations 17-15

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS APPROACH LO3 Approach Stage Customs Gestures 17-16

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PRESENTATION LO3 Presentation Stage 17-17

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PRESENTATION LO3 Formats Stimulus-Response Presentation Suggestive Selling 17-18

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PRESENTATION LO3 Formats Formula Selling Presentation Canned Sales Presentation 17-19

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PRESENTATION LO3 Formats Need-Satisfaction Presentation Adaptive Selling Consultative Selling 17-20

MARKETING MATTERS Imagine This…Putting the Customer into Customer Solutions! LO3 17-21

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS PRESENTATION LO3 Handling Objections Acknowledge and Convert Postpone Agree and Neutralize Acceptance Denial Ignore 17-22

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS CLOSE LO3 Close Stage Trial Close Urgency Close Assumptive Close Final Close 17-23

THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS FOLLOW-UP LO3 Follow-up Stage Repeat Sales Referrals 17-24

FIGURE 17-3 The sales management process involves sales plan formulation, implementation, and evaluation 17-25

THE SALES MANAGEMENT PROCESS SALES PLAN FORMULATION LO4 Sales Plan Setting Objectives Output-Related Input-Related Behaviorally-Related 17-26

THE SALES MANAGEMENT PROCESS SALES PLAN FORMULATION LO4 Organizing the Salesforce Structure of the Salesforce Customer Product Geography Major (Key) Account Management 17-27

FIGURE 17-B1 Organizing the salesforce by geography 17-28

FIGURE 17-B2 Organizing the salesforce by customer 17-29

FIGURE 17-B3 Organizing the salesforce by product 17-30

MARKETING MATTERS Creating and Sustaining Customer Value Through Cross-Functional Team Selling LO4 17-31

THE SALES MANAGEMENT PROCESS SALES PLAN FORMULATION LO4 Account Management Policies Whom to Contact Info to Collect Activities to Perform 17-32

FIGURE 17-4 An account management policy grid grouping customers according to the level of opportunity and a firm’s competitive sales position 17-33

THE SALES MANAGEMENT PROCESS SALES PLAN IMPLEMENTATION LO4 Salesforce Recruitment and Selection Job Analysis Job Qualifications Job Description Salesforce Training On-the-Job Other Methods 17-34

THE SALES MANAGEMENT PROCESS SALES PLAN IMPLEMENTATION LO4 Salesforce Motivation & Compensation Straight Salary Combination Straight Commission Nonmonetary 17-35

THE SALES MANAGEMENT PROCESS SALESFORCE EVALUATION LO4 Quantitative Assessments Input-Related Output-Related Sales Quota Behavioral Evaluation Subjective Measures Customer Satisfaction 17-36

USING MARKETING DASHBOARDS Tracking Salesperson Performance at Moore Chemical & Sanitation Supply, Inc. LO4 17-37

THE SALES MANAGEMENT PROCESS SALESFORCE AUTOMATION AND CUSTOMER RELATIONSHIP MANAGEMENT LO4 Salesforce Automation (SFA) Salesforce Technology Internet Salesforce Communication 17-38

XEROX: BUILDING CUSTOMER RELATIONSHIPS THROUGH PERSONAL SELLING VIDEO CASE 17 17-39

VIDEO CASE 17 XEROX 1. Why was Anne Mulcahy’s experience as a sales representative an important part of Xerox’s growth in recent years? 17-40

VIDEO CASE 17 XEROX 2. How did the sales approach change after Mulcahy became the CEO of Xerox? 17-41

VIDEO CASE 17 XEROX 3. (a) How does Xerox create customer value though its personal selling process? (b) How does Alison Capossela provide solutions for Xerox customers? 17-42

VIDEO CASE 17 XEROX 4. Why is the Xerox training program so important to the company’s success? 17-43

Personal Selling Personal selling is the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision. 17-44

Sales Management Sales management consists of planning the selling program and implementing and evaluating the personal selling effort of the firm. 17-45

Relationship Selling Relationship selling is the practice of building ties to customers based on a salesperson’s attention and commitment to customer needs over time. 17-46

Order Taker An order taker processes routine orders or reorders for products that were already sold by the company. 17-47

Order Getter An order getter sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers’ use of a product or service. 17-48

Personal Selling Process The personal selling process consists of sales activities occurring before, during, and after the sale itself, consisting of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up). 17-49

Adaptive Selling Adaptive selling is a need-satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information. 17-50

Consultative Selling Consultative selling is a need-satisfaction presentation format that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution. 17-51

Sales Plan A sales plan is a statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed. 17-52

Major (Key) Account Management Major (key) account management is the practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships. 17-53

Account Management Policies Account management policies specify whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out. 17-54

Sales Quota A sales quota consists of specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period. 17-55

Salesforce Automation (SFA) Salesforce automation (SFA) is the use of computer, information, communication, and Internet technologies to make the sales function more effective and efficient. 17-56