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    SELLING AND SALESMANAGEMENT

    Harcourt, Inc.

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    ,

    Objectives

    Dr. Rosenbloom

    Identify and understand the

    critical factors of personal

    sellingDiscuss how selling has

    evolved

    Evaluate the advantages anddisadvantages of sales as a

    profession

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    Objectives

    Dr. Rosenbloom

    Describe the selling

    environments and types of

    personal sellingUnderstand the sales process

    Appreciate the tasks and

    functions of the salesmanager

    Recognize legal/ethical issues

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    Direct Sales

    Force

    Agents

    Distributors

    Retailers

    Integrators Alliances

    Advertising

    Promotion

    Direct Mail

    Tele-

    marketingInternet

    Direct Indirect

    Non-Sales Force OptionsSales Force Options

    Company

    Customers and Prospects

    Potential Go-to-Market Participants

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    Comparing Various Go-to-Market Alternatives

    Advertising

    Direct Mail

    Internet

    Telemarketing

    Sales Force

    Effectiveness

    Efficiency

    High Salesper Exposure

    Low Costper Exposure

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    Personal Selling Defined

    Dr. Rosenbloom

    A form of person to person

    communication in which a

    salesperson works withprospective buyer and

    attempts to influence

    purchase in the direction ofhis or her companys

    products or services

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    Importance of Personal Selling

    Dr. Rosenbloom

    Allows the firm to

    immediately respond to theneeds of the prospect

    Allows for immediate

    customer feedbackResults in an actual sale

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    Evolution of Personal Selling

    Dr. Rosenbloom

    Hard sell: Formerly thought customers had to be forcedinto making a purchase

    Relationship selling: Now selling requires the

    development of a trusting partnership in which the

    salesperson seeks to provide long-term customer

    satisfaction

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    Transaction-Focused vs. Relationship

    Focused

    Transaction-Focused Relationship-Focused

    Short term thinking

    Making the sale has

    priority over most otherconsiderations

    Interaction between

    buyer and seller is

    competitive

    Salesperson is self-interest oriented

    Long term thinking

    Developing the

    relationship takespriority over getting the

    sale

    Interaction between

    buyer and seller is

    collaborative. Salesperson is

    customer-oriented

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    Relationship Selling

    Dr. Rosenbloom

    WalkerInformatio

    n

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    Why choose the sales profession?

    Dr. Rosenbloom

    Employment in sales is growing

    Sales positions offer advantages:

    Good compensation

    Intrinsic reward from helpingcustomers

    Flexible in day-to-day activities

    High-visibility career track

    Limited supervision

    Travel opportunities

    Increasing responsibilities

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    Leading Edge Technology

    Dr. Rosenbloom

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    Desirable Salesperson Traits

    Dr. Rosenbloom

    Salesperson

    Empathetic

    Competitive

    Goal-oriented

    Adaptive

    Customer-

    oriented

    Enthusiastic

    Organized

    Self-motivated

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    How Salespeople Spend an

    Average 46-Hour Work Week

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    Selling Environments and Selling

    Types

    Dr. Rosenbloom

    Selling Environments Selling Types

    Over-the-counter Order takerOrder getterField Selling Professional salespeopleNational account managersMissionary salespeopleSupport salespeople

    Telemarketing OutboundInbound

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    Over-the-Counter Selling

    Dr. Rosenbloom

    Order taker

    Order Getter

    A salesperson who only processes the purchase that the customer hasalready selected

    Retail outlets that are heavily oriented toward self-service

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    Over-the-Counter Selling

    Dr. Rosenbloom

    Order taker

    Order Getter

    A salesperson who actively seeks to provide information to prospects,

    persuade prospective customers, and close sales Personal service oriented stores

    May practice suggestion selling

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    Dr. Rosenbloom

    Field Selling

    Help prospective customers to define their needsand then suggest the best means of meeting

    those needs, even if that requires suggesting that

    the prospects use a competitive product

    National account managers

    Missionary Salespeople

    Support Salespeople

    Professional Salespeople

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    Dr. Rosenbloom

    Field Selling

    Highly skilled salespersons who call on key

    customers headquarters sites, develop strategicplans for the accounts, make formal

    presentations to top-level executives, and assist

    with all the product decisions at that level

    Missionary Salespeople

    Professional SalespeopleNational account managers

    Support Salespeople

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    Dr. Rosenbloom

    Field Selling

    They do not seek to obtain a direct order from

    their customers

    Primary goal is to persuade customers to

    place orders with distributors or wholesalers

    National account managers

    Support Salespeople

    Professional Salespeople

    Missionary Salespeople

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    Dr. Rosenbloom

    Field Selling

    Support the sales force in a number of ways

    Technical support salespeople assist with

    technical aspects of sales presentations

    Merchandisers may set up product displays

    National account managers

    Missionary Salespeople

    Professional Salespeople

    Support Salespeople

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    Dr. Rosenbloom

    Telemarketing

    Utilizing the telephone for prospecting, selling,

    and/or following up with customers

    Outbound: the salesperson uses the telephone

    to call customers

    Inbound: Firms which have customers calling

    the vendor company to place orders (toll-free

    phone numbers)

    Telemarketing

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    a

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    The Personal Selling Process

    Dr. Rosenbloom

    Prospecting Pre-Approach

    PresentationHandling

    Objections

    Approach

    Follow-UpNeed

    Identification

    Gaining

    Commitment

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    The Personal Selling Process

    Dr. Rosenbloom

    Prospecting

    Prospecting involves finding qualified sales leads Qualified sales leads: potential customers that have a

    need for the salespersons product, and are able to

    buy

    Referrals: obtained by the salesperson asking currentcustomers if they know of someone else who might

    have a need for the salespersons product

    Cold-calling: means contacting prospective customers

    without a prior arrangement

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    The Ferris Wheelconcept, which is

    aimed at supplying an

    ongoing list of

    prospects, is part of

    world sales record

    holder Joe Girards

    customer strategy

    PP

    P

    P

    P

    P

    PP

    P

    P

    P

    P

    Referrals Relationship between

    customer and sales-

    person deteriorates

    Friends and

    acquaintances

    Business failure

    Directories New buyer buys from

    another source

    Trade publications

    and trade shows

    Acquisitions and mergers

    Telemarketing and

    advertising

    Customer moves

    Death of customer

    Cold callingCustomer has only a

    product

    one-time need for

    Networking Customer needs changebecause of new technology

    P ti Th h

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    Prospecting Through

    Advertising

    Dr. Rosenbloom

    Zip Pak

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    Referrals

    Dr. Rosenbloom

    Deloitte & Touche

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    The Personal Selling Process

    Dr. Rosenbloom

    Pre-approach

    The collection of information about the

    potential customer and the customers

    company prior to the initial visitResearching the prospect and the company

    will assist the salesperson in planning the

    initial presentation to the prospective customer

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    Asking the Right Questions

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    Asking the Right Questions

    1. Situation Questions

    e.g - how many people does your company employ?

    - what projects are you involved with at present?

    2. Problem Questions

    e.g.- are you satisfied with.....?

    - what image of quality do you have?

    3. Implication Questions

    e.g. - what effect might cheaper products have on your

    business?

    - Are there problems in reliability/compatibility?

    4. Need - Payoff Questions

    - What effect would specifying higher quality

    products have?

    - What benefits do you see in using this type ofproduct?

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    The Personal Selling Process

    Dr. Rosenbloom

    Approach

    The development of rapport with the customer

    The chance to make a good first impression The salesperson should adapt to the potential

    customers social style

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    Social Styles

    Dr. Rosenbloom

    Analytical Driver

    Amiable Expressive

    Fact-oriented

    Risk TakersRisk Adverse

    People-oriented

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    Social Styles

    Dr. Rosenbloom

    Risk

    Takers

    AnalyticalDriver

    Amiable Expressive

    Fact-oriented

    Risk

    Adverse

    People-oriented

    Very fact-and-detail oriented

    Require time to make decisions

    Not interested in socializing

    The salesperson should inundate the

    analytical with facts and figures that can be

    supported with documentation

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    Social Styles

    Dr. Rosenbloom

    Risk

    Takers

    AnalyticalDriver

    Amiable Expressive

    Fact-oriented

    Risk

    Adverse

    People-oriented

    Action-and goal oriented, and makes quick

    decisions

    Basic facts and not big on socializing

    The sales person should provide the bottom-

    line information first and then work backward

    to fill-in essential details

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    Social Styles

    Dr. Rosenbloom

    Risk

    Takers

    Analytical Driver

    Amiable Expressive

    Fact-oriented

    Risk

    Adverse

    People-oriented

    A visionary with big ideas for the future but not a detail-

    oriented individual

    Hesitant to make quick decisions and will seek

    consensus from others

    Seeks to socialize with the salesperson

    The salesperson should provide assurances that will

    reduce the amiables feeling of risk

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    Social Styles

    Dr. Rosenbloom

    Risk

    Takers

    Analytical Driver

    AmiableExpressive

    Fact-oriented

    Risk

    Adverse

    People-oriented

    Loves to socialize and will frequently base the

    purchase decision on the relationship with the

    salesperson The salesperson should establish a personal

    relationship with the expressive by telling anecdotal

    stories, by socializing outside the office and by relating

    personal information

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    The Personal Selling Process

    Dr. Rosenbloom

    Need

    Identification

    Requires asking probing questions of the

    prospective customer to determine needs

    The salesperson should ask open-endedquestions

    Make sure that the customers needs and

    potential concerns are addressed

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    The Personal Selling Process

    Dr. Rosenbloom

    Presentation

    The focus of the sales presentation is the

    salespersons explanation of how the features

    of the product provide benefits

    Presentation may be flexible or memorized The salesperson should be prepared to

    provide documentation for any statements of

    fact that are made

    S

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    The Personal Selling Process

    Dr. Rosenbloom

    Handling

    Objections

    The salesperson may have failed to provideadequate information, or have not

    demonstrated how the product meets the

    needs of the prospect

    Objection as a sign of interest on the part of

    the prospect

    Provide information that will ensure the

    prospects confidence in making the purchase

    Th P l S lli P

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    The Personal Selling Process

    Dr. Rosenbloom

    Gaining

    Commitment

    Commitment is gained when the prospect

    agrees to take the action sought by thesalesperson

    The salesperson must ask for commitment

    Th P l S lli P

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    The Personal Selling Process

    Dr. Rosenbloom

    Follow- Up

    The salesperson complete any agreed upon

    actions

    The salesperson should stay in touch after the

    sale by writing thank-you notes, clipping and

    mailing newspaper articles of interest to the

    prospect and calling on the customer to ensure

    the customers satisfaction

    S tS At Sh lf S li

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    SmartSource At-Shelf Sampling (Prospecting)

    S tS A di I k

    http://www.newsamerica.com/desktopdefault.aspx?tabid=82
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    SmartSource AudioInk (Preapproach)

    S tS C t

    http://www.newsamerica.com/
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    SmartSource Carts (Approach)

    S tS C M hi

    http://www.newsamerica.com/
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    SmartSource Coupon Machine (Presentation)

    S tS El t i Sh lft lk

    http://www.newsamerica.com/
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    SmartSource Electronic Shelftalk (Close)

    SmartSource Floortalk (F ll )

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    SmartSource Floortalk (Follow-up)

    http://www.newsamerica.com/desktopdefault.aspx?tabid=151
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    Cont.

    AIDAS Theorythis theory is based on the premise that during a sales presentation, the prospect

    consciously goes through five different stages: Attention, Interest, Desire, Action

    and Satisfaction.

    Attention: The salesperson should attract the prospect to his presentationbefore he actually goes into the details of the same.

    Interest: He/she should maintain the interest of the prospects throughout the

    presentation.

    Desire: The next step in the sales process, as per the AIDAS theory, is tocreate a strong desire in the prospects mind to purchase his product.

    Action: Once the salesperson has been successful in taking his prospect

    through the three stages, as discussed above, he should induce the

    prospects into actually buying the product.

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    Cont.

    Right Set of Circumstances Theory

    The advocates of this theory opine that all the circumstances, which led to the

    sales, were appropriate or right for the sales to have taken place. In other

    words, if the salesperson is successful in securing the prospects attention,

    maintaining his interest and inducing his desire to buy the product, sales will

    result. Moreover, if the salesperson is highly skilled, he will take control of the

    presentation, which would lead to sales.

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    Buying Formula TheoryThe buying formula theory is based on the analysis of the sequence of events

    that goes on in the buyers mind during the sales presentation. Thus, the theory

    emphasises on the factors internal to the prospect and the factors which are

    external, i.e., influence of the salesperson on his prospects decision to buy hisproduct. The theory is based on the presumption that the salesperson will take

    care of the external factors.

    The sequence of events in a prospects mind can be represented as

    There are all the chances that a continuous relationship will develop between the

    prospect and the salesperson. As a result of sales, the satisfaction will also come

    in the sequence. This sequence can be presented as

    Need Solution Purchase

    SatisfactionPurchaseNeed Solution

    Asking the Right Questions

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    g g

    1. Situation Questions

    e.g - how many people does your company employ?

    - what projects are you involved with at present?

    2. Problem Questions

    e.g.- are you satisfied with.....?

    - what image of quality do you have?

    3. Implication Questions

    e.g. - what effect might cheaper products have on your

    business?

    - Are there problems in reliability/compatibility?

    4. Need - Payoff Questions

    - What effect would specifying higher quality

    products have?

    - What benefits do you see in using this type of

    product?

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    Strategic/Consultative Selling Model

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