© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

19-2 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin LEARNING OBJECTIVES Learning Objectives How does personal selling add value? What is the personal selling process? How do technology and the Internet affect personal selling? What are the key functions of a sales manager?

19-3 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Mary Kay Inc. Beauty Consultants  Retain gross profits on each product  Earn commissions on their sales teams

19-4 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Scope and Nature of Personal Selling InternetTelephone Face-to-faceTeleconference

19-5 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Professional Selling as a Career People love the lifestyle There is a lot of flexibility There is a lot of variety in the job Can be very lucrative Very visible to management and good for promotions Sales Jobs Website

19-6 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Personal Selling and Marketing Strategy Can customize the message for a specific buyer Assists in creating strong supply chain relationships Increased customer loyalty through relationship sellingrelationship selling Gather research input from customers Crucial to the success of CRM

19-7 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Personal Selling Process

19-8 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Step One: Generate and Qualify Leads Sources of Leads Current Customers Networking Events The Internet Trade Shows

19-9 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Generate Leads Cold callsTelemarketing

19-10 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Step Two: PreapproachPreapproach Extends the qualification procedure Set goals for what is to be accomplished

19-11 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Step Three: Sales Presentation and Overcoming Reservations The presentationHandling reservations

19-12 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Aligning the Personal Selling Process with the B2B Buying Process

19-13 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Step Four: Closing the Sale Getting the order Often most stressful part of sales process A “no” one day may be the foundation for a “yes” another

19-14 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Step Five: Follow-Up Five Service Quality DimensionsReliabilityResponsivenessAssuranceEmpathyTangibles

19-15 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1. What are the steps in the personal selling process? 2. How does the selling process impact the business to business buying process? Check Yourself

19-16 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Impact of Technology and the Internet on Personal Selling Instant access to their customers Access to customer research and information Training programs are more effective, easier to operate, less expensive Less time on order tracking Salesforce.com Website

19-17 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Ethical and Legal Issues in Personal Selling The Sales Manager and The Sales Force and Corporate Policy The Salesperson and The Customer

19-18 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Issues for the Sales Force and Corporate Policy The firm may have a policy to sell goods or services to people who cannot afford them or to people who should not have them.

19-19 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Issues for the Sales Person and the Customer Have you ever felt that you were treated unethically by a salesperson? What happened?

19-20 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Managing the Sales Force Sales force structure Recruiting and selecting salespeople Sales training Motivating and compensating salespeople Evaluating salespeople

19-21 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Sales Force Structure Company sales force  Employees  Established product lines Manufacturers representatives (independent agents) Manufacturers representatives  Not employees  Smaller firms  New markets

19-22 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Salesperson Duties Order getterOrder taker Sales support personnel

19-23 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Recruiting and Selecting Salespeople Personality Optimism Resilience Self- motivation Empathy

19-24 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Recruiting for Success How does a firm that focuses on a fun product recruit salespeople who exhibit fun?

19-25 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Sales Training Selling and negotiation techniquesProducts and service knowledgeTechnologies used in the selling processTime and territory managementCompany policies and procedures

19-26 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Motivating and Compensating Salespeople Financial rewards Nonfinancial rewards

19-27 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Evaluating Salespeople Tied to the reward structure Evaluation measures can be either objective or subjective

19-28 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1. What do sales managers need to do to successfully manage their sales force? 2. What is the difference between monetary and nonmonetary incentives? Check Yourself

19-29 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Cold calls are a method of prospecting in which sales people telephone or go to see potential clients without appointments. Return to slide

19-30 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary A company sales force comprises people who are employees of the selling company. Return to slide

19-31 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Manufacturer’s representatives are sales people who sell a manufacturer’s products on an extended contract basis but are not employees of the manufacturer. Return to slide

19-32 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary An order getter is a salesperson whose primary responsibilities are identifying potential customers and engaging those customers in discussions to attempt to make a sale. Return to slide

19-33 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary An order taker is a salesperson whose primary responsibility is to process routine orders or reorders or rebuys for products. Return to slide

19-34 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary The preapproach occurs prior to meeting the customer for the first time and extends the qualification of leads procedure. Return to slide

19-35 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Relationship selling is a sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties. Return to slide

19-36 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Telemarketing is a method of prospecting in which sales people telephone potential customers without appointments. Return to slide

19-37 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Trade shows are attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry. Return to slide