1. Personal Selling BUSI 406 April 2, 2014

2. Strategy Planning & Personal Selling CH 15: Advertising & Sales Promotion Importance of personal selling Personal selling tasks Strategy decisions Personal selling process CH 14: Personal Selling and Customer Service CH 13: Promotion Intro. to Integrated Marketing Communications

3. Agenda Personal Selling –What is personal selling? –Types of personal selling –Managing and compensating salespeople –Personal selling process –Sales presentation approaches

4. Personal Selling Personal selling is the company’s link to customers –Customer’s perceptions of the company –Relationship builders (good salespeople help customers buy)

5. Personal Selling in Context Company Infrastructure Human Resource Management Technology Development Procurement Service and Support Offerings / Inbound Logistics Marketing Implement’n Personal Selling Adapted from The Value Chain: Michael Porter 1985

6. Personal Selling in Reality Company Infrastructure Human Resource Management Technology Development Procurement Offerings / Inbound Logistics Marketing Service and Support Imp’n Adapted from The Value Chain: Michael Porter 1985 chasm Personal Selling

7. Why Is Personal Selling Important? Personal selling is often a company’s largest single operating expense In the US, one person out of ten in the total labor force is involved in sales –20 times more people are employed in sales than in advertising!

8. Types of Personal Selling Order- Taking Order- Getting Supporting Sales Tasks

9. Order Getters – “Hunters” Order getters develop new business relationships Wholesalers’ Order Getters Develop New Channels Producers’ Order Getters Find New Opportunities Retail Order Getters Influence Buyer Behavior Order Getters and Order-Getting

10. Order Takers – “Farmers” Order takers nurture relationships to keep the business coming Producers’ Order Takers Train, Explain, & Collaborate Order Takers and Order-Taking Retail Order Takers Are Often Poor Sales Clerks Wholesalers’ Order Takers Focus on Mindshare -> Marketshare

11. Supporting Supporting sales force informs and promotes in the channel Technical Specialists Missionary Salespeople Customer Service Reps Supporting Sales Tasks

12. Customer Service Promotes the Next Purchase Not the product Part of promotion Reps are customer advocates What is customer service?

13. Structure and Responsibility Inbound/Outbo und Telemarketing Inbound/Outbo und Telemarketing Team Selling Sales Territories Major Accounts Sales Force Different Markets, Different Tasks Sales Force Size and Workload

14. Using the Internet as a Substitute for Personal Selling Emphasis on standardized e-commerce (with customer service) Emphasis on standardized e-commerce (with customer service) Emphasis on digital self-service Emphasis on personal selling Emphasis on both personal selling & customized e-commerce Emphasis on both personal selling & customized e-commerce Standardized information exchanged on a recurring basis (orders, invoices, delivery status, product information prices Relationship building required (problem solving, coordination, support, cooperation) Low High

15. Hiring Salespeople Hiring good salespeople is hard to do Companies constantly update lists of possible job candidates »They invite applications at the company’s website »They schedule candidates for multiple interviews, do background checks, and may even use psychological tests

16. Hiring Salespeople Education Experience Time Cost

17. Training Salespeople Trained, Not Born Specific, Written Job Description All Salespeople Need Training

18. Training Salespeople Why do you train salespeople? –More effective sales calls –Better interaction with customers –More effective at closing sales Where do you perform the training? –Classroom – Lectures, Case studies & Videotaped trial presentations and demonstrations –On the job - Observation of effective salespeople & Coaching from sales supervisors How much training is enough? –Training never ends Sales meetings Conventions Internal communications Refresher Training Sessions

19. Training Salespeople

20. Compensating and Motivating Salespeople Straight Commission Straight Salary Level of Compensation Method of Payment Level of Compensation Method of Payment Combination Plan

21. Three Basic Compensation Methods Total selling expense Sales volume 0 Straight commission Straight salary Combination plan

22. Prospecting & Selling Prospect for new customers Evaluate needs of established customers and business opportunity Set effort priorities

23. Prospecting & Selling Preplan sales call and presentation(s) Prepared presentation Consultative selling approach Selling formula approach Set effort priorities Select target customer Identify who influences purchase decision and/or who is involved in buyer-seller relationship

24. Sales Presentations Consultative Approach Selling Formula Approach Prepared Approach Three Presentation Approaches

25. Personal Selling Process Evaluate needs Preplan sales call and presentation(s) Set effort priorities Select target customer Prospect Close the sale (get action) Make sales presentation Create interest Overcome problems/objections Arouse desire

26. Personal Selling Process Close the sale (get action) Follow up after sales call to establish relationship Follow-up after the purchase to maintain and enhance relationship

27. Key Take-Aways Personal selling is the company’s link to customers, and is very important! Three types of personal selling - order getters, order takers, and supporting Training and compensating salespeople are keys to their success (and thus the company’s success)