1. McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

2. Identify the different types of personal selling.
LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 20, YOU SHOULD BE ABLE TO:
Discuss the nature and scope of personal selling and sales management in marketing.
LO1
LO2
Identify the different types of personal selling.
LO3
Explain the stages in the personal selling process.
LO4
Describe the major functions of sales management.
20-2

3. XEROX DELIVERS AN EXCEPTIONAL CUSTOMER EXPERIENCE BY SELLING THE WAY CUSTOMERS WANT TO BUY
20-3

4. SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT
LO1
Personal Selling
Sales Management
Selling Happens Almost Everywhere
“Everyone Lives by Selling Something”
Personal Selling in Marketing
20-4

5. FIGURE 20-1 Personal selling and sales management quiz
FIGURE Personal selling and sales management quiz. What are your answers?
20-5

6. FIGURE 20-A How salespeople create value for customers
20-6

7. SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT
LO1
Relationship Selling
Partnership Selling
Enterprise Selling
20-7

8. THE MANY FORMS OF PERSONAL SELLING
ORDER TAKING
LO2
Order Taker
Outside Order Takers
Inside Order Takers
Order Clerks
Salesclerks
Inbound Telemarketing
20-8

9. THE MANY FORMS OF PERSONAL SELLING
ORDER GETTING
LO2
Order Getter
Outside Order Getters
Inside Order Getters
Outbound Telemarketing
20-9

10. FIGURE 20-2 How outside order-getting salespeople spend their time each week
20-10

11. FIGURE 20-B Comparing order takers and order getters
20-11

12. THE MANY FORMS OF PERSONAL SELLING CUSTOMER SALES SUPPORT PERSONNEL
LO2
Missionary Salespeople
Sales Engineer
Team Selling
Conference Selling
Seminar Selling
20-12

13. FIGURE 20-3 Stages and objectives of the personal selling process
20-13

14. THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
PROSPECTING
LO3
Personal Selling Process
Prospecting Stage
20-14

15. THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
PROSPECTING
LO3
Types of Prospects
Lead
Prospect
Qualified Prospect
Cold Canvassing
20-15

16. THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
PREAPPROACH
LO3
Preapproach Stage
20-16

17. THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
APPROACH
LO3
Approach Stage
Customs
Gestures
20-17

18. THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
PRESENTATION
LO3
Presentation Stage
20-18

19. THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
PRESENTATION
LO3
Formats
Stimulus-Response Presentation
Suggestive Selling
20-19

20. THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
PRESENTATION
LO3
Formats
Formula Selling Presentation
Canned Sales Presentation
20-20

21. THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
PRESENTATION
LO3
Formats
Need-Satisfaction Presentation
Adaptive Selling
Consultative Selling
20-21

22. THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
PRESENTATION
LO3
Handling Objections
Acknowledge and Convert
Postpone
Agree and Neutralize
Acceptance
Denial
Ignore
20-22

23. THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
CLOSE
LO3
Close Stage
20-23

24. THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
CLOSE AND FOLLOW-UP
LO3
Forms
Trial Close
Assumptive Close
Urgency Close
Final Close
20-24

25. THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
FOLLOW-UP
LO3
Follow-up Stage
20-25

26. FIGURE The sales management process involves sales plan formulation, implementation, and evaluation
20-26

27. THE SALES MANAGEMENT PROCESS SALES PLAN FORMULATION
LO4
Sales Plan
Setting Objectives
Scope
Behaviorally-Related
Output-Related
Competition-Related
Input-Related
20-27

28. MAKING RESPONSIBLE DECISIONS The Ethics of Asking Customers About Competitors
20-28

29. THE SALES MANAGEMENT PROCESS SALES PLAN FORMULATION
LO4
Organizing the Salesforce
Own Salesforce vs. Independent Agents
20-29

30. FIGURE 20-5 A break-even chart for comparing a company salesforce and independent agents
20-30

31. THE SALES MANAGEMENT PROCESS SALES PLAN FORMULATION
LO4
Organizing the Salesforce
Structure of the Salesforce
Customer
Product
Geography
Key Account Management
20-31

32. FIGURE 20-6 Organizing the salesforce by customer, product, and geography
20-32

33. FIGURE 20-6A Organizing the salesforce by customer
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34. FIGURE 20-6B Organizing the salesforce by product
20-34

35. FIGURE 20-6C Organizing the salesforce by geography
20-35

36. THE SALES MANAGEMENT PROCESS SALES PLAN FORMULATION
LO4
Organizing the Salesforce
Workload Method
Account Management Policies
20-36

37. FIGURE An account management policy grid grouping customers according to the level of opportunity and a firm’s competitive sales position
20-37

38. THE SALES MANAGEMENT PROCESS SALES PLAN IMPLEMENTATION
LO4
Salesforce Recruitment and Selection
Job Analysis
Job Description
Emotional Intelligence
Diversity
20-38

39. GOING ONLINE What is Your Emotional Intelligence?
Self-Motivation Skills
Self-Awareness
Managing One’s Emotions
Empathy
Social Skills
20-39

40. FIGURE 20-8 U.S. salesforce composition by gender and racial/ethnic
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41. THE SALES MANAGEMENT PROCESS SALES PLAN IMPLEMENTATION
LO4
Salesforce Training
Salesforce Motivation & Compensation
Straight Salary
Straight Commission
Combination
Nonmonetary
20-41

42. THE SALES MANAGEMENT PROCESS SALESFORCE EVALUATION
LO4
Quantitative Assessments
Sales Quota
Behavioral Evaluation
Subjective Measures
Customer Satisfaction
20-42

43. USING MARKETING DASHBOARDS Tracking Salesperson Performance at Moore Chemical & Sanitation Supply, Inc.
20-43

44. THE SALES MANAGEMENT PROCESS
SALESFORCE AUTOMATION AND CUSTOMER RELATIONSHIP MANAGEMENT
LO4
Salesforce Automation (SFA)
Salesforce Technology
Home Offices
Salesforce Communication
Internet
20-44

45. XEROX: BUILDING CUSTOMER RELATIONSHIPS THROUGH PERSONAL SELLING
VIDEO CASE 20
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46. VIDEO CASE 20
XEROX
1. Why was Anne Mulcahy’s experience as a sales representative an important part of Xerox’s growth in recent years?
20-46

47. VIDEO CASE 20
XEROX
2. How did the sales approach change after Mulcahy became the CEO of Xerox?
20-47

48. VIDEO CASE 20
XEROX
3. How does Xerox create customer value though its personal selling process? How does Alison Capossela provide solutions for Xerox customers?
20-48

49. VIDEO CASE 20
XEROX
4. Why is the Xerox training program so important to the company’s success?
20-49

50. IQ VS. E-IQ AND SMART SALESPEOPLE SUPPLEMENTAL LECTURE NOTE 20-1
20-50

51. STUDENTS’ PERCEPTIONS OF SELLING
IN-CLASS ACTIVITY 20-1
20-51

52. 20-52

53. Personal Selling
Personal selling is the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.
20-53

54. Sales Management
Sales management consists of planning the selling program and implementing and controlling the personal selling effort of the firm.
20-54

55. Relationship Selling
Relationship selling is the practice of building ties to customers based on a salesperson’s attention and commitment to customer needs over time.
20-55

56. Partnership Selling
Partnership selling is the practice whereby buyers and sellers combine their expertise and resources to create customized solutions, commit to joint planning, and share customer, competitive, and company information for their mutual benefit, and ultimately the customer. Also called enterprise selling.
20-56

57. Order Taker
An order taker processes routine orders or reorders for products that were already sold by the company.
20-57

58. Order Getter
An order getter sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers’ use of a product or service.
20-58

59. Team Selling
Team selling is the practice of using an entire team of professionals in selling to and servicing major customers.
20-59

60. Personal Selling Process
The personal selling process consists of sales activities that occur before and after the sale itself, consisting of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up).
20-60

61. Stimulus-Response Presentation
A stimulus-response presentation is a presentation format which assumes that given the appropriate stimulus by a salesperson, the prospect will buy.
20-61

62. Formula Selling Presentation
A formula selling presentation is a presentation format that consists of information which must be provided in an accurate, thorough, and step-by-step manner to inform the prospect.
20-62

63. Need-Satisfaction Presentation
A need-satisfaction presentation is a presentation format that emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers.
20-63

64. Adaptive Selling
Adaptive selling is a need-satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information.
20-64

65. Consultative Selling
Consultative selling is a need-satisfaction presentation format that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution.
20-65

66. Sales Plan
A sales plan is a statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed.
20-66

67. Key Account Management
Key account management is the practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships.
20-67

68. Workload Method
The workload method is a formula-based method for determining the size of a salesforce that integrates the number of customers served, call frequency, call length, and available selling time to arrive at a figure for the salesforce size.
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69. Account Management Policies
Account management policies specify whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out.
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70. Emotional Intelligence
Emotional intelligence is the ability to understand one’s own emotions and the emotions of people with whom one interacts on a daily basis.
20-70

71. Sales Quota
A sales quota consists of specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period.
20-71

72. Salesforce Automation (SFA)
Salesforce automation (SFA) is the use of computer, information, communication, and Internet technologies to make the sales function more effective and efficient.
20-72