BA230-Marketing Communication Integrated Marketing Communications Mix Public Relations Direct Marketing Sales Promotion Advertising Personal Selling

Person-to-person interactive communication used to ultimately persuade a current/prospective customer to buy something The Oldest Marketing Communication Function # potential customers decrease Complexity of product increases Value of the product grows

Personal Selling Involves two-way, Personal communication between salespeople and individual customers whether: face to face, by telephone, through video conferencing, or by other means.

Salesperson / people An individual acting for a company by performing one or more of the following activities: prospecting, communicating, servicing, and information gathering. Salespeople have many names Agents Sales consultants Sales Representatives Account Executives Sales Engineers District Managers Marketing Representatives Account Development Representatives

Duties/Responsibilities: selling, service, prospecting, presentations, pricing quotes, terms, orders, marketing research, advising, study, travel, meetings, paperwork. Satisfied customers repeat their purchases because they are satisfied with the value of the relationship –Taking care of existing customers reduces sales cycle time and increases efficiency

The Role of the Sales Force Sales force serves as critical link between company and its customers. – They represent the company to the customers. – They represent the customers to the company. – Goal = customer satisfaction and company profit.

Qualifications And Skills Required For Success By Salespeople Empathy: To see things as others would see them Ego Drive: Determination to achieve goals Ego Strength: Self-assured and self-accepting Interpersonal Communication Skills: Including listening and questioning Enthusiasm: In general, and for sales as a career Customer Orientation Use of Truthful and Nonmanipulative Tactics Focus on Long-Term Satisfaction of Customer and Selling Firm Understand general business and economic trends, Provide guidance throughout the sales process Help the buyer to solve problems Have a pleasant personality and a good professional image

Types of Salespersons ORDER GETTERS Current customers New customers ORDER TAKERS Inside Order Takers (via mail, telephone, internet) Outside Field Sales SUPPORT PERSONNEL Missionary Salespersons Technical Specialist

The Four Sales Channels Personal selling occurs through several types of communication channels including these four: – Field Selling – Telemarketing – Inside Selling

Advantages Build, maintain and enhance interactions with customers to develop long-term satisfaction through mutually beneficial partnerships More than just a transaction or one-time sale Detailed explanation/demonstration of product Sales message can be varied according to motivations/interests of prospect; can respond to objections Directed only to qualified prospects Costs can be controlled by adjusting size of sales force in one-person increments More effective in gaining a sale! Can not reach mass audience Expensive per contact Numerous calls needed to generate sale Labor intensive Disadvantages

How salespeople spend their time Internal Meetings 5% Travel 20% Face-to-Face Selling 33% Phone Selling 16% Account Service Coordination 16% Administration 10% SOURCE: William A. O’Connell and William Keenan, Jr., “The Shape of Things to Come,” Sales & Marketing Management, January 1990, pp

Prospecting & qualifying Pre- approach Approach Presentation & demonstration Handling objections ClosingFollow-up Identify qualified potential customers Learn as much as possible about customer Make a relationship Tell the product “story” & focus on customer benefits Overcome customer objections Ask for an order To insure customer satisfaction & repeat business The Sales Process

The AIDA Concept and the Personal Selling Process

Step 1. Prospecting & Qualifying P: Salesperson identifies potential customers. – Leads – Developing lists of potential customers Q: Process of identifying good prospects and screening out poor ones. Finding and analyzing information about prospects Evaluating a prospect’s potential

Step 2. Preapproach Salesperson learns as much as possible about a prospective customer before making a sales call.

HOW DO WE MAKE THE INITIAL CONTACT & BUILD RAPPORT There is only one time to make a first impression Step 3. Approach Salesperson meets the buyer and gets the relationship off to a good start.

Step 4. Presentation & Demonstration Salesperson tells the product “story” to the buyer using the need-satisfaction approach. Making the sales presentation Using persuasive communication Hold attention Stimulate interest Desire “Tell the product’s story”

– Questions – Reservations Understand Concern Counterarguments Acknowledge concern Clues to process Step 5. Handling Objections Salesperson seeks out, clarifies, and overcomes customer objections to buying.

Closing signals Trial close Asking the prospect to buy Step 6. Closing the Sale Determining the terms of the transaction and getting the prospects agreement to those terms. Salesperson asks the customer for an order.

Commitments met – Shipment – Performance Satisfied customers rebuy & recommend Supporting the buying decision Managing implementation Dealing with dissatisfaction Enhancing the relationship Step 7. Following Up Occurs after the sale and ensures customer satisfaction and repeat business.

Sales (Force) Management Activities of planning, organizing, staffing, motivating compensating, and evaluating and controlling a sales force to ensure its effectiveness The analysis, planning, implementation, and control of sales force activities.

Designing Salesforce Strategy and Structure Recruiting and Selecting Salespeople Training Salespeople Compensating Salespeople Supervising Salespeople Evaluating Salespeople Major Steps in Sales Force Management Motivating Salespeople

Territorial Exclusive Territory to Sell the Company’s Full Product Line Product Sales Force Sells Only a Portion of The Company’s Products or Lines Customer Sales Force Sells Only to Certain Customers or Industries 1. Designing Sales Force Strategy and Structure Complex Forms Are a Combination of Any Types of Sales Force Structures

Sales Force Size Salespeople are one of a company’s most productive and expensive assets. Sales forces have been shrinking in size because of: – Advances in selling technology, – Recent merger mania. Many companies use some form of workload approach to set sales force size: – Group accounts into different size classes, – How many people are needed to call on them.

Inside Sales Force Inside Sales Force Outside Sales Force Outside Sales Force Travel to Call on Customers Travel to Call on Customers Sells to Major Accounts Sells to Major Accounts Finds Major New Prospects Finds Major New Prospects Conduct Business From Their Offices Via Phone or Buyer Visits Conduct Business From Their Offices Via Phone or Buyer Visits Technical Support People Technical Support People Tele- Marketing Or Internet Tele- Marketing Or Internet Other Sales Force Strategy and Structure Issues Sales Assistants Sales Assistants

Recruiting involves: Soliciting applications Screening candidates – Interviews – Sales aptitude, personality, analytical and/or organizational tests – References, work history, etc. 2. Recruiting and Selecting Salespeople Careful recruiting can: Increase overall sales force performance Reduce turnover Reduce recruiting and training costs

3. Training Salespeople Average training period is 4 months Training is expensive, but yields strong returns Many companies are adding Web-based sales training programs Training programs have many goals: Learn about different types of customers and their needs, buying motives, and buying habits. Learn how to make effective sales presentations. Learn about and identify with the company, its products and its competitors.

Fixed Amount Usually a Salary Fixed Amount Usually a Salary Variable Amount Usually Commissions or Bonuses Variable Amount Usually Commissions or Bonuses To Attract Salespeople, a Company Must Have an Attractive Plan Made Up of Several Elements To Attract Salespeople, a Company Must Have an Attractive Plan Made Up of Several Elements Expense Allowance For Job Related Expenses Expense Allowance For Job Related Expenses 4. Compensating Salespeople Fringe Benefits Vacations, sick leave, pension, etc. Fringe Benefits Vacations, sick leave, pension, etc.

5. Supervising Salespeople Effective supervisors provide direction to the sales force Help them identify customers & set call norms Develop prospect target Use sales time efficiently  Annual Call Plan  Time-and-Duty Analysis  Sales Force Automation Goal of supervision is to encourage salespeople to “work smart.”

6. Motivating Salespeople Organizational Climate Sales Quotas Positive Incentives  Sales Meetings  Sales Contests  Honors and Trips  Merchandise/ Cash awards, trips, profit sharing Goal of motivating sales force is to encourage salespeople to “work hard”

7. Evaluating Salespeople Management gets information about its salespeople in several ways: – Sales reports, call reports, expense reports, and – Personal observations, customer surveys, etc. Formal evaluation of performance can be done qualitatively or quantitatively. Evaluation methods of performance include: – Comparing salespeople’s performance to others, – Comparing current sales with past sales.

Final Note: The critical balance of personal sales: It’s the most costly way to reach customers… …It has the most powerful one-on-one impact