Chapter 14 Personal Selling and Sales Management 14-1

1.Explain why personal selling is important in brand promotion. 2.Describe the activities besides selling performed by salespeople. 3.Summarize the role of setting objectives for personal selling. 4.Outline the steps involved in personal selling. 5.Describe factors that contribute to a new environment for personal selling. 6.Define the responsibilities of sales force management. 14-2

Personal Selling Household consumers and business buyers are frequently confronted with purchase decisions that are facilitated by interaction with a salesperson. This is especially true for products that are: higher priced and complicated to use require demonstration tailored to users’ needs involve a trade-in judged at the point of purchase In many decision contexts, only a qualified and well-trained salesperson can address a potential buyer’s questions and concerns. 14-3

What Salespeople Do Often, salespeople are responsible for more than the selling effort; they may also implement various aspects of marketing strategy: market analysis sales forecasting new product ideas buyer behavior analysis communication sales coordination customer service customer relationship management (CRM) 14-4

Personal Selling Roles The type of selling and communication requirements vary depending on the customers’ needs and the complexity of the product. The three types of selling are: Order taking—inside order takers, outside order takers Creative selling—team selling, seminar selling, system selling Supportive communications—missionary salesperson, detail salesperson 14-5

Personal-Selling Objectives Personal-selling objectives are external in that they all focus on the buyer: Create a competitive advantage Treat each buyer as unique Manage relationships for mutual benefit—product, service, price, source (company), and people superiority Control the communication 14-6

The Selling Process A well-conceived and well-executed sales effort involves using a series of steps: Preparation—gathering relevant information in order to deliver a targeted and persuasive sales message Prospecting—generating leads for new clients Initial contact—leaving comprehensive information, introducing buyer to corporate selling programs, gathering information about buyers’ organization and product/service needs Presentation—face-to-face (consultative selling) or telemarketing canned presentation attention-interest-desire-action (AIDA) needs satisfaction (need development, need awareness, need fulfillment) Handling objections—treat all objections as legitimate and reasonable, counter objections without seeming argumentative Closing the sale—only 40% of the time does the salesperson actually ask for the buyer to place the order Follow-up—ensure that all commitments are fulfilled, deal with post- purchase behavior 14-7

Selling in a New Environment Changes in the broad business environment have created a significantly new environment for personal selling. These changes include: Better marketing planning Sales force automation (SFA) More-demanding buyers 14-8

Sales Management Sales force management includes the following areas of responsibility: Situation analysis—external and internal Setting sales objectives Setting and managing budgets—based on salaries and benefits, incentive programs, recruiting costs, training costs, travel expenses, promotional materials Identifying sales force structure—by product lines, type of customer, geographic territory Hiring—job recruitments (writing a job description, recruiting, screening and evaluation Training—content and methods, duration, personnel, location Motivating the sales force—compensation, task clarity, recognition of goal attainment, job enrichment, perquisites Evaluating performance 14-9