Personal Selling Often the single largest operating expense!!! 1 out of 10 in the labor force is in sales work Requires increasing professionalism –Relationship-building and consultation skills –Negotiating skills –Analytical and computer skills –Managing a territory for profit

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Importance & Role of Personal Selling Exhibit 14-1

Order- Taking Order- Getting © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin What Kinds of Personal Selling Are Needed? Supporting Basic Sales Tasks Basic Sales Tasks

Types of Selling Order Getting—persuading customers to place orders with the company by differentiating the product from that of competitors and aiding in customer problem solving (a.k.a “creative selling”) Order Taking—servicing existing customers by expediting recurring orders and trouble shooting

Technical Specialists Missionary Salespeople © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Supporting Sales Force Informs and Promotes in the Channel Team Selling Supporting Sales Groups

Supporting Salespeople MISSIONARY SALESPEOPLE –Work for producers—calling on their middlemen and the middlemen's customers TECHNICAL SPECIALISTS –Provide technical assistance to order-oriented salespeople

Sales—Working with People

Sales—Listening and Helping

Using Sales Aids

Team Selling in Brazil

Team Selling in Asia

Telemarketing—sometimes substitutes for personal selling High level of popularity Reduces travel time and expense Especially useful for small accounts or less expensive products Often used to identify "live" prospects Typically uses a prepared sales presentation

Sales Technology Salespeople daily rely on sales technologies – –Internet websites –Pagers and cell phones –Electronic presentations –Video-conferencing –Laptop computers –Online data and spreadsheets Opportunities for young people with computer skills and experience Creates training costs and problems for firms, but also competitive advantage in meeting customers' needs

Sales Selection and Training Commonly used selection tools are best when used in combination –multiple interviews—with several different people –personnel and psychological tests –background checks Initial and ongoing training can help both experienced and inexperienced salespeople –company policies and practices –product information –selling techniques/customer knowledge

Straight Commission Straight Salary Level of Compensation Method of Payment Straight Salary Straight Commission Level of Compensation Method of Payment Compensating and Motivating Salespeople © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Combination Plan

Help with the Selling Process

Three Types of Sales Presentation Approaches May be Useful © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Prepared Approach Three Presentation Approaches Consultative Approach Selling Formula Approach Prepared Approach Consultative Approach

Prepared Approach

Consultative Approach

Selling-Formula Approach