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Peter Drucker explains marketing this way: “The aim of marketing is to make selling
superfluous. The aim is to know and understand the customer so well that the product or
service fits him or her and sells itself.” This is not to say that selling is unimportant. It is
the most important part of a larger "integrated marketing communications" that must be
orchestrated for maximum impact on the marketplace. The promotional mix (or
marketing communications mix) includes personal selling and non-personal selling
(advertising, sales promotion, public relations, and direct marketing). Personal selling is
a personal (face-to-face, telephone, or Internet chat) presentation for the purpose of
making sales and building relationships.
Relationship Marketing
Relationships are built upon trust. According to Stephen X. Doyle and George Thomas
Roth (“Selling and Sales Management in Action: The Use of insight & Coaching to
improve Relationship Selling,” Journal of Personal Selling & Sales Management, Winter
1992, p. 62) there are five characteristics of trust-building in salespeople.
Sales promotion, advertising, and publicity move the prospect toward an exchange
decision. Yet, personal selling is the tool that most often brings the buying decision
process to a satisfactory conclusion for both buyer and seller. The strength of personal
selling is that it is flexible and provides immediate feedback. The prospect can relate
concerns and the salesperson can address those concerns. The salesperson can ask
questions to determine the prospect’s level of interest and react quickly to the prospect's
wants. The sales presentation can be personalized based upon those wants. Many
customers don't know what they want, and part of the salesperson's responsibility is to
help them find out – to help them find out how the product can solve their problems or
satisfy their wants.
A salesperson personally communicates with the prospect to make the sale and build a
relationship. The job of a salesperson ranges from order takers to order getters.
Order Takers
An order taker interacts with customers placing an order. Order takers include most
retail sales workers. These job titles include:
Cashiers
Counter and rental clerks
Insurance agents and brokers
Manufacturers' and wholesale sales representatives
Real estate agents, brokers, and appraisers
Retail sales workers
Securities and financial services sales representatives
Services sales representatives
The following has been adapted from the Bureau of Labor Statistics Occupational
Outlook Handbook
Retail sales workers assist customers in finding what they are looking for and try to
interest them in the merchandise. They might describe a product’s features, demonstrate
its use, or show various models and colors. For some sales jobs, particularly those selling
expensive and complex items, special knowledge or skills are needed. For example,
workers who sell automobiles must be able to explain to customers the features of various
models, the meaning of manufacturers' specifications, and the types of options and
financing that are available. The largest employers of retail sales workers, however, are
department stores, clothing and accessories stores, furniture and home furnishing stores,
and motor vehicle dealers.
Order Getters
An order getter engages in creative selling of products and is responsible for the entire
ordering and relationship-building process. Order takers include most manufacturers and
wholesale sales representatives. The following has been adapted from the Bureau of
Labor Statistics Occupational Outlook Handbook Manufacturers' and Wholesale Sales
Representatives. Depending on where they work, sales representatives have different job
titles. Many of those working directly for manufacturers are referred to as manufacturers'
representatives and those employed by wholesalers generally are called sales
representatives. In addition to those employed directly by firms, manufacturers' agents
are self-employed sales workers who contract their services to all types of companies.
Those selling technical products, for both manufacturers and wholesalers, are usually
called industrial sales workers or sales engineers. Many of these titles, however, are used
interchangeably.
The following has been adapted from the Bureau of Labor Statistics Occupational
Outlook Handbook Manufacturers' and Wholesale Sales Representatives.
Manufacturers' and wholesale sales representatives spend much of their time traveling to
and visiting with prospective buyers and current clients. During a sales call, they discuss
the customers' needs and suggest how their merchandise or services can meet those
needs. They may show samples or catalogs that describe items their company stocks and
inform customers about prices, availability, and how their products can save money and
improve productivity. Those selling consumer goods often suggest how and where their
merchandise should be displayed. Working with retailers, they may help arrange
promotional programs, store displays, and advertising.
The following has been adapted from the Bureau of Labor Statistics Occupational
Outlook Handbook Manufacturers' and Wholesale Sales Representatives. Sales
engineers, who are among the most highly trained sales workers, typically sell products
whose installation and optimal use require a great deal of technical expertise and support
—products such as material handling equipment, numerical-control machinery, and
computer systems. In addition to providing information on their firm's products, these
workers help prospective and current buyers with technical problems by recommending
improved materials and machinery for a firm's manufacturing process, drawing up plans
of proposed machinery layouts and estimating cost savings from the use of their
equipment. They present this information and negotiate the sale, a process that may take
several months.
An inside salesperson stays primarily inside the company’s buildings and interacts with
customers via the telephone, the Internet, and fax. These jobs are known as technical
support staff, sales assistants, telemarketers, and telesales professionals.
Team selling is the use of teams made up of people from different functional areas to
service large accounts. The following has been adapted from the Bureau of Labor
Statistics Occupational Outlook Handbook Manufacturers' and Wholesale Sales
Representatives. Increasingly, sales representatives who lack technical expertise work as
a team with a technical expert. In this arrangement, the duties of a sales representative are
to make the preliminary contact with customers, introduce the company's product, and
close the sale. The technical expert will attend the sales presentation to explain and
answer questions and concerns. In this way, the sales representative is able to spend more
time maintaining and soliciting accounts and less time acquiring technical knowledge.
After the sale, sales representatives may make frequent follow-up visits to ensure the
equipment is functioning properly and may even help train customers' employees to
operate and maintain new equipment.
Sales Automation
Sales automation (also known as customer asset management and total customer
management) implies that technology can be used to speed up previously inefficient
operations. The Internet and related technology have affected the personal selling
process. Product information on Web sites is available to customers and prospects. In the
past, salespeople delivered this information to the customer. The Internet frees
salespeople to focus on the most important aspects of their job (such as building long-
term relationships with customers and focusing on new accounts). Information is shared
among users in every department that touches the customer. Also, information sharing
promotes more effective channel partnership.
Salespeople use computers (with communications devices, contact management
programs, and email) to connect them (over the Internet) to their own company's
databases when they are out on sales calls. This gives them with the ability to provide the
customer with extensive, relevant information almost immediately. Salespeople have
access to current, relevant marketing materials, including data sheets, brochures,
multimedia presentations, and proposal templates, online or via CD-ROM.
The personal selling process consists of creating new customers and maintaining existing
customers. Salespeople follow a series of steps in identifying prospects and turning them
into customers.
3. Presentation is telling the product “story” to the prospect, showing how the product
will solve a problem for the product. The salesperson must build a case for how the
product can serve the needs of the buyer. A need-satisfaction approach involves carefully
listening to the buyer’s needs and then clearly explaining how the product can satisfy
those needs. Questioning and listening are more important than talking. Presentations
using Microsoft’s PowerPoint significantly enhance the professionalism of the
presentation.
Examples of features:
A potential benefit describes how the product or service may meet a customer need that
is assumed to be important by the salesperson. When a customer acknowledges the
importance of a benefit to his or her buying situation, it is a confirmed benefit. In
selecting specific benefits to be stressed, salespeople should focus on any unique benefits
not offered by competition, as long as the benefits are of interest to the prospect. These
might include product benefits, along with non-product related benefits such as delivery,
extraordinary customer service, or additional sales support available to the customer.
4. Handling Objections raised by the prospect takes a great deal of skill and training.
The salesperson must be able to identify the real reasons for an objection, respond to the
objection, and overcome it. Objections provide the salesperson with the opportunity to
learn more about the customer’s needs and provide information about the product to
satisfy those needs.
5. Closing the sale is asking the prospect for an order. The salesperson must be able to
recognize the signals that indicate the prospect is ready to close.
6. Follow-up is essential to building a relationship between the seller and the buyer. The
salesperson follows-up to ensure that the buyer received the right products in the right
condition at the right time. Any problems or concerns on the part of the buyer after the
sale are addressed immediately. The salesperson demonstrates continued interest in the
account and a desire to satisfy the buyer’s needs on an ongoing basis.
Compensation
Compensation plans include (1) straight wages or salary, (2) straight commission, (3)
wages or salary plus bonus, and (4) wages or salary plus commission. Salespeople
receive hourly wages, a salary, commissions, or a combination of wages or salary and
commissions. Commissions are usually based on the amount of sales, whereas bonuses
may depend on individual performance, on the performance of all salespeople in the
group or district, or on the company's performance. Commissions offer salespeople the
opportunity to significantly increase their earnings, but they may find their earnings
depend on their ability to sell their product and the ups and downs of the economy.
Employers may use incentive programs such as awards, banquets, and profit-sharing
plans to promote teamwork among the sales staff.
Sales Managers
The following has been adapted from the Bureau of Labor Statistics Occupational
Outlook Handbook Marketing, Advertising, and Public Relations Managers. Sales
managers direct the firm's sales program. They assign sales territories and goals and
establish training programs for their sales representatives. Managers advise their sales
representatives on ways to improve their sales performance. In large, multiproduct firms,
they oversee regional and local sales managers and their staffs. Sales managers maintain
contact with dealers and distributors. They analyze sales statistics gathered by their staffs
to determine sales potential and inventory requirements and monitor the preferences of
customers. Such information is vital to develop products and maximize profits.
Substantial travel may be involved. For example, attendance at meetings sponsored by
associations or industries is often mandatory. Sales managers travel to national, regional,
and local offices and to various dealers and distributors.