chapter 1 nature of personal selling
Post on 14-Sep-2014
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DESCRIPTION
Mktg 5 Sales ManagementTRANSCRIPT
It describes the combination of four ingredients that constitute the core a company’s marketing system.
Four Ingredients: Product Distribution Price Promotion
Marketing Mix
Place/Distribution
PromotionPricesProduct
Advertising Public Relations
Personal Selling
Sales Promotion Internet
Sales ManagementPlanning MotivatingBudgeting CompensatingRecruiting & Selecting Designing TerritoriesTraining Evaluating Performance
Positions of Personal Selling and Sales Management in the Marketing Mix
Promotional activities form a separate sub mix that we call the Promotional Mix.
Major Elements: Company’s Advertising Sales Promotion Personal Selling Effort
Sales People must develop close long-term relationships with their problems. These relationship are built on :
Cooperation
Trust
Commitment
Sharing Information
The process by which the firm builds close & long-term relationship with customers for purpose of creating mutual competitive advantages
Relationship Marketing or Relationship Selling
Whereby salespeople focus on the immediate one-time sale of the product.
Transaction-Oriented
•Get new accounts•Get the order•Cut the price to get the sale•Manage all accounts to maximize short term sales•Sell to anyone
Relationship-Oriented•Retain existing accounts•Become the preferred supplier•Price for profit•Manage each account for long term profit•Concentrate on high profit potential accounts
1. Driver-salesperson
•A position in which the salesperson primarily delivers the product – for example, softdrinks, milk,fuel.The selling responsibilities are secondary; few of these people originate sales.
2. Inside order taker
•A position in which the salesperson is primarily an inside order taker – for example, the retail clerk standing behind the counter.
3. Outside order taker•A position in which the salesperson is primarily an outside order taker going to the customer outside the field. The primary responsibility of the reps is to ensure that their products are getting as much shelf space and promotional attention as possible.
4. Missionary sales person•A sales job intended to build goodwill, perform promotional activities, and provide information and other services for the customers. They are not expected or permitted to solicit an order.
5. Sales engineer•A position in which an engineer provides technical advice or assistance with regard to the products and their application to the customers process.
6. Consultative salesperson, tangible goods•A position that involves the consultative selling of tangible goods. This job is often is difficult because the salesperson must thoroughly understand their customers business
7. Consultative salesperson, services and other intangibles•A position that calls for selling intangibles. This requires that sales people understand their customer’s needs. They must be able to demonstrate how these services or ideas will contribute to the customers’ profit or well being.
Driver Sales person
Inside Order Taker
Outside Order Taker
Missionary Sales Person
Sales Engineer
Consultative Sales Person: Tangible Products
Consultative Sales Person: Intangible Products
Sales Facilitation
Sales Support
Sales Development
•The Sales Force is largely responsible for implementing a firm’s marketing strategies in the field
•Sales People are among the few employees authorized to spend company funds
•Sales People represent their company to their customers and to society in general
•Sales People represent the customer to their companies
Sales Representatives operate with little or no direct supervision and require a high degree of motivation
Sales Person needs more tact and social intelligence than other employees on the same level in the organization
Sales jobs frequently require considerable travel and time away from home and family
The primary responsibility of a Sales Manager is to staff the organization with the right people.
Developing a more detailed understanding of a customers business Treating Sales People as equal and working in partnership with
them to achieve profitability and customer satisfaction Applying flexible motivational tools to a hybrid sales force. Keeping up to date on the latest technologies affecting buyer-
seller relationships. Working closely with other internal department Continually seeking ways to exceed customer expectations and
bring added value to the buyer-seller relationship Creating a flexible learning and adapting environment
One of the ironies of sales force management is that sales manager were usually promoted into executive ranks because of their talents as sales people.
But their success or failure is depended on their administrative skills – skills that may or not have been developed during their time as sales reps.
Although many people with outstanding technical abilities make good administrators, there is considerable evidence that sales talent alone does not make a good manager.
The continuing growth of management development programs indicates that there is a body management knowledge that can be taught and learned.
President
Vice – President of Sales
National Sales Manager
Regional/Divisional Sales Manager
District Sales Manager
Sales Supervisor
Sales PersonStaff Assistant
available for advises and support at any
step along the ladder
The executive ladder in personal selling
President
Vice President
of Marketing
Client-Team leader
Product engineer
Distribution logistics specialist
Customer sales/force
representative
The executive ladder in team selling
Since sales people work away from the company’s facilities , problems like:
Sales managers cannot directly supervise each rep’s work in person on a daily basis
Sales manager cannot regularly spend one on one time with the sales people that makes it harder to motivate them.
Evaluating sales rep’s performance Difficult to monitor the ethical behavior of sales reps Sales managers face morale problem among outside
sales people.
Salespeople help stimulate the economy
Salespeople help with the diffusion of innovation
Salespeople generate revenue
Salespeople provide market research and customer feedback
Salespeople become future leaders in the organization
Salespeople provide solutions to problems
Salespeople provide expertise and serve as information resources
Salespeople serve as advocates for the customer when dealing with the selling organization
Stimulus Response Selling
Mental States Selling Need Satisfaction
Selling Problem Solving
Selling
Salesperson Provides
Stimuli
BuyerResponses
Sought
Continue Process until
Purchase Decision
Attention Interest Conviction Desire Action
Uncover and Confirm
Buyer Needs
Present Offering to
Satisfy Buyer Needs
Continue Selling until
Purchase Decision
DefineProblem
GenerateAlternativeSolutions
ContinueSelling
untilPurchaseDecision
EvaluateAlternativeSolutions
In order to be successful in today’s global business environment, salespeople must have a solid relationship building foundation. They must:
Possess Excellent Communication SkillsPossess Excellent Communication Skills
Understand Buyer BehaviorUnderstand Buyer Behavior
Behave EthicallyBehave Ethically
Be TrustworthyBe Trustworthy
In order to be successful in today’s global business environment, salespeople must also think and act strategically. The must develop strategies for:
Their Sales Territories
Each Sales Call
Each Customer
Each strategy is related to the other
Adding Value through Follow-up, Self-leadership, and Teamwork
• Prospecting• Preapproach• Presentation Planning• Approaching the Customer
• Sales Presentation Delivery • Earning Customer Commitment
Developing Customer
Relationships
Initiating Customer
Relationships
Enhancing Customer
Relationships