1personnel selling
TRANSCRIPT
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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
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P
P
PP
P
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P
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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
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SmartSource AudioInk (Preapproach)
S tS C t
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SmartSource Carts (Approach)
S tS C M hi
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SmartSource Coupon Machine (Presentation)
S tS El t i Sh lft lk
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SmartSource Electronic Shelftalk (Close)
SmartSource Floortalk (F ll )
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SmartSource Floortalk (Follow-up)
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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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