1. Marketing Chapter 17 Personal Selling and Sales Management
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2. Learning outcomes Understand the sales environment
Chapter 17 Personal Selling and Sales Management
Learning outcomes
Understand the sales environment
Describe personal selling
Discuss the key differences between relationship selling and traditional selling
List and explain the steps in the selling process
Understand the functions of sales management
Describe the use of customer relationship management in the selling process

3. Sales people can be consumer-focused or business-focused
Sales Environment
Chapter 17 Personal Selling and Sales Management
LO 1
Sales people can be consumer-focused or business-focused
Sales environment changes constantly as new competitors enter the market and old competitors leave
Rapid increase in new sales technologies are changing the ways in which customers:
Interact with salespeople
Learn about products and suppliers
Traditionally, salespeople engage in direct face-to-face contact with customers.
Consumer-focused salespeople require customers to come directly to a retail store, but some salespeople travel to their customers’ locations.
Business-focused salespeople call on other companies to sell their products.

4. 17.1 Comparison of Personal Selling and Advertising or Sales Promotion
Chapter 17 Personal Selling and Sales Management
LO 2
17.1 Comparison of Personal Selling and Advertising or Sales Promotion
Personal selling becomes more important as the number of potential customers decreases, as the complexity of the product increases, and as the value of the product grows.
Exhibit 17.1 compares the effectiveness of personal selling and advertising, or sales promotion, based on certain customer and product characteristics.

5. Chapter 17 Personal Selling and Sales Management
LO 3
17.2 Key Differences between Traditional Selling and Relationship Selling

6. Selling Process (Sales Cycle)
Chapter 17 Personal Selling and Sales Management
LO 4
Set of steps a salesperson goes through in a particular organization to sell a particular product or service
Can be unique for each product or service
Depends on:
Features of the product or service
Characteristics of customer segments
Internal processes in place within the firm

7. Steps in Personal Selling Process
LO 4
Generating leads
Qualifying leads
Approaching the customer and probing needs
Developing and proposing solutions
Handling objections
Closing the sale
Following up

8. Responsibilities of a Sales Manager
Chapter 17 Personal Selling and Sales Management
LO 5
Maximizing sales and profits
Defining sales goals and the sales process
Determining the sales force structure
Recruiting and training the sales force
Compensating and motivating the sales force
Evaluating the sales force
Without sales, there is no need for accountants, production workers, or even a company president. Sales provide the fuel that keeps the corporate engines humming.
Responsibilities of a sales manager include:
Maximizing sales at a reasonable cost and maximizing profits
Defining sales quotas and the sales process
Organizing sales force structure by geographic regions, product lines, marketing functions performed, markets, industries, individual clients, or accounts
Recruiting, training, compensating, motivating, and evaluating the sales force

9. Customer Relationship Management Process
Chapter 17 Personal Selling and Sales Management
LO 6
Identifying customer relationships
Understanding interactions of the customer base
Capturing customer data
Leveraging customer information
Customer relationship management assumes two key points:
Customers must take center stage in the organization.
The business must manage the customer relationship across all points of customer contact throughout the organization.

10. Identifying Customer Relationships
Chapter 17 Personal Selling and Sales Management
LO 6
Companies with CRM systems follow a customer-centric model
Rely on knowledge management
Terms of interaction are defined by the customer and not the organization
A customer-centric company customizes its product and service offerings based on data generated through interactions between the customer and the company.
Companies using CRM rely on knowledge management. It is the process by which customer information is centralized and shared in order to enhance the relationship between customers and the organization.
Information collected includes experiential observations, comments, customer actions, and qualitative facts about the customer.
With CRM, the terms of interaction are defined by the customer and not the organization.
Social media has created numerous ways for companies to interact with customers.

11. Interactions of the Current Customer Base and Capturing Customer Data
Chapter 17 Personal Selling and Sales Management
LO 6
CRM is built on the interactions between customers and organizations
Any activity or touch point a customer has with an organization constitutes an interaction
Touch points include web-based interactions, social CRM, and point-of-sale interactions
Data gathered affects touch points inside the company
In a CRM system, touch points are all areas of a business where customers have contact with the company and data might be gathered.
Touch points might include a customer registering for a particular service; a customer communicating with customer service for product information; a customer completing and returning the warranty information card for a product; or a customer talking with salespeople, delivery personnel, and product installers.
As social media have become more popular, many companies have begun to use these media for social CRM.
Many point-of-sale software programs enable customers to easily provide information about themselves without feeling violated.

12. keyterms Relationship selling (consultative selling)
Sales process (sales cycle)
Lead generation (prospecting)
Cold calling
Referral
Networking
Lead qualification
Preapproach
Needs assessment
Sales proposal
Sales presentation
Negotiation
Follow-up
Quota
Customer-centric
Knowledge management
Interaction
Touch points
Point-of-sale interactions
Campaign management

13. Summary
Personal selling involves a personal, paid-for communication between two people in an attempt to influence each other
Relationship salespeople strive to build long- term relationships with their customers
Process comprises seven steps
A sales manager’s main job is to maximize sales and profits
Marketers are making their communications more customer-specific