Personal Selling and Sales

Management

Nature of Personal Selling

Views of Salespeople? Death of a
Salesman, Glen Gary Glen Ross, Tin
Men ??

Advantages of a Career in Selling?

independence, variety/challenge, opportunity,

rewards

Importance of personal selling (i.e.,

economy, personal development)?

Many benefits to the economy;

interviewing/resumes

What is Personal Selling?

Involves Two-Way, Personal
Communication Between
Salespeople and Individual
Customers Whether:
face to face,
by telephone,
through video conferencing,
or by other means.
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Types of Sales Positions and

Duties
Sales Positions: route salesperson; retail
sales; detail rep (missionary selling);
account rep; business sales rep; sales
engineer; manufacturers rep; inside sales

Duties/Responsibilities: selling, service,

prospecting, presentations, pricing quotes,
terms, expediting, orders, marketing
research, advising, study, travel, meetings,
paperwork.
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How Salespeople Spend

Their Time
Administrative
Service Calls
Tasks
12.7%
16%

Face-to-Face
Selling
28.8%

Telephone
Selling
25.1%

Waiting/
Traveling
17.4%

Companies
Look For Ways
to Increase
the Amount of
Time
Salespeople
Spend Selling.
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Basic Steps in Personal

Selling Process
Prospecting and Qualifying
Preapproach
Approach
Presentation and Demonstration
Handling objections
Closing
Follow-up
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Steps in the Selling

Process
Prospecting
Prospecting
Qualifying
Qualifying
Preapproach
Preapproach
Approach
Approach

Salesperson
Salesperson Identifies
Identifies Qualified
Qualified
Potential
Potential Customers.
Customers.
Process
Process of
of Identifying
Identifying Good
Good
Prospects
Prospects and
and Screening
Screening Out
Out Poor
Poor
Ones.
Ones.
Salesperson
Salesperson Learns
Learns as
as Much
Much as
as
Possible
Possible About
About aa Prospective
Prospective
Customer
Customer Before
Before Making
Making aa Sales
Sales
Call.
Call. the Buyer and
Salesperson
Meets
Salesperson Meets the Buyer and
Gets
Gets the
the Relationship
Relationship Off
Off to
to aa Good
Good
Start.
Start.
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Steps in the Selling

Process

Handling
Handling
Objections
Objections

Salesperson
Salesperson Tells
Tells the
the Product
Product
Story
Story to
to the
the Buyer
Buyer Using
Using the
the
Need-Satisfaction
Need-Satisfaction Approach.
Approach.
Salesperson
Salesperson Seeks
Seeks Out,
Out, Clarifies,
Clarifies,
and
and Overcomes
Overcomes Customer
Customer
Objections
Objections to
to Buying.
Buying.

Closing
Closing

Salesperson
Salesperson Asks
Asks the
the Customer
Customer for
for
an
an Order.
Order.

Follow-Up
Follow-Up

Occurs
Occurs After
After the
the Sale
Sale and
and Ensures
Ensures
Customer
Customer Satisfaction
Satisfaction and
and Repeat
Repeat
Business.
Business.

Presentation
Presentation

APPROACHES OF PERSONAL
SELLING:

Research shows 4 basic approaches

of personal selling:
1.Transactional selling
2.Affiliative selling
3.Consultative selling (Needssatisfaction selling or problem/
solution selling)
4.Enterprise selling
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In some of the books the personal

selling approaches are described as:
--- Canned sales approach (stimulus
response approach):
(when the product is not very technical or sales
person is inexperienced extensively used in
door-to-door selling & in telemarketing
programs)
---Formulated approach:
(sales person identifying the buyers needs & his
buying styles & consistently hit with
information's till he derives success)

--- Need satisfaction approach:

-

Customizing the sales presentation to

cater to the needs of individual
customers

Better suited for experienced &

sophisticated sales personnel

Major Steps in Sales Force

Management

Designing
Designing Salesforce
Salesforce Strategy
Strategy and
and Structure
Structure
Recruiting
Recruiting and
and Selecting
Selecting Salespeople
Salespeople
Training
Training Salespeople
Salespeople
Compensating
Compensating Salespeople
Salespeople
Supervising
Supervising Salespeople
Salespeople
Evaluating
Evaluating Salespeople
Salespeople

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Designing Sales Force

Strategy and Structure
Territorial
Exclusive Territory to Sell the
Companys Full Product Line

Complex Forms Are

a Combination of
Any Types of Sales
Force Structures

Product
Sales Force Sells Only a Portion of
The Companys Products or Lines
Customer
Sales Force Sells Only to Certain
Customers or Industries
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Sales Force Size

Salespeople are one of a companys most
productive and expensive assets.
Sales forces have been shrinking in size
because of:

Advances in selling technology,

Recent merger mania.

Many companies use some form of

workload approach to set sales force size:

Group accounts into different size classes,

How many people are needed to call on
them.

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Other Sales Force

Strategy and Structure
Issues
Outside
Sales
Inside
Outside
Sales
Inside Sales
Sales
Force
Force

Travel
Travel to
to Call
Call on
on
Customers
Customers

Sells
Sells to
to Major
Major
Accounts
Accounts

Finds
Finds Major
Major
New
New
Prospects
Prospects

Force
Force

Conduct
Conduct Business
Business From
From Their
Their
Offices
Offices Via
Via Phone
Phone or
or Buyer
Buyer Visits
Visits
TeleTeleTechnical
Technical
Sales
Marketing
Sales Marketing
Support
Support Assistants
Or
Or
Assistants
People
People
Internet
Internet
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Team Selling
Most companies are
now using team selling
to service large,
complex accounts.
Finds problems,
solutions, and sales
opportunities.
Problems: can
overwhelm customers,
difficulties working with
teams, evaluation of
sales performance.
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Some Traits of Good

Salespeople??

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Selecting Salespeople
Sales
SalesAptitude
Aptitude

Other
OtherCharacteristics
Characteristics

Selection
Process
Usually
Evaluates
a Persons

Analytical
Analyticaland
and
Organizational
OrganizationalSkills
Skills

Personality
PersonalityTraits
Traits
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Approaches in the Study

of Salesperson
Effectiveness
Individual Performance Factors
(motivation, aptitude, roles
perceptions)
Contingency Model of Effectiveness
Buying Center
Buyer-Seller Dyads
Relational Communications
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Training Salespeople
The Average Sales Training Program lasts for Four
Months and Has the Following Goals:
Help Salespeople Know & Identify
With the Company
Learn About the Products
Learn About Competitors
and Customers Characteristics
Learn How to Make
Effective Presentations
Understand Field Procedures
and Responsibilities
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Compensating
Salespeople
To
ToAttract
Attract Salespeople,
Salespeople, aa Company
Company Must
Must Have
Have an
an
Attractive
Attractive Plan
Plan Made
Made Up
Up of
of Several
Several Elements
Elements

Fixed
Fixed
Amount
Amount

Variable
Variable
Amount
Amount

Expense
Expense
Allowance
Allowance

Usually
Usuallyaa
Salary
Salary

Usually
Usually
Commissions
Commissions
Or
Or Bonuses
Bonuses

For
ForJob
Job
Related
Related
Expenses
Expenses
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Supervising Salespeople
Directing
Directing Salespeople
Salespeople

Identify
IdentifyCustomer
CustomerTargets
Targets
&&Call
CallNorms
Norms
Develop
DevelopProspect
ProspectTarget
Target
Use
UseSales
SalesTime
TimeEfficiently
Efficiently
Annual Call Plan
Annual Call Plan
Time-and-Duty
Time-and-DutyAnalysis
Analysis
Sales Force Automation
Sales Force Automation

Motivating
Motivating
Salespeople
Salespeople

Organizational Climate
Climate
Organizational
Sales Quotas
Quotas
Sales

Positive Incentives
Incentives
Positive
Sales
Sales Meetings
Meetings

Sales
Sales Contests
Contests

Honors
Honors and
and Trips
Trips

Merchandise/
Merchandise/ Cash
Cash

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Evaluating Salespeople
Management gets information about its
salespeople in several ways:

Sales reports, call reports, expense reports, and

Personal observations, customer surveys, etc.

Formal evaluation of performance can be

done qualitatively or quantitatively.
Evaluation methods of performance include:

Comparing salespeoples performance to others,

Comparing current sales with past sales.
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