Personal selling

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-5
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
Recognize different types of personal selling.
Describe the stages in the personal selling process.
Specify the functions and tasks in the sales management process.

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-6
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
Understand how firms recruit, select, train, motivate, compensate, and evaluate salespeople.
Describe recent applications of sales force automation and customer relationship management.

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND
SALES MANAGEMENT
Slide 17-8
Nature of Personal Selling and Sales Management
Personal Selling
Sales Management
Selling Happens Almost Everywhere

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-61
Personal selling involves the
two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.
Personal Selling

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-62
Sales management involves planning the selling program and implementing and controlling the personal selling effort of the firm.
Sales Management

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND
SALES MANAGEMENT
Slide 17-9 Relationship Selling
Personal Selling in Marketing
Creating Customer Value Through Salespeople: Relationship Selling

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-63
Relationship selling is the practice
of building ties to customers
based on a salesperson’s attention
and commitment to customer
needs over time.
Relationship Selling

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-10
How salespeople create value for customers

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-12
1. What is personal selling?
A: Personal selling involves the
two-way flow of communication between a buyer and seller, often in
a face-to-face encounter, designed to influence a person’s or group’s purchase decision.
Concept Check

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-13
2. What is involved in sales management?
A: Sales management involves planning the selling program and implementing and controlling the personal selling effort of the firm.
Concept Check

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
THE MANY FORMS OF
PERSONAL SELLING
Slide 17-14
Order Taker
Outside Order Takers
Inside Order Takers, Order Clerks,
or Salesclerks
Inbound Telemarketing
Outbound Telemarketing
Order Getter

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-64
An order taker processes routine orders or reorders for products that were already sold by the company.
Order Taker

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-65
An order getter sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers’ use of a product or service.
Order Getter

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-15
Comparing order takers and order getters

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-18
1. What is the main difference between an order taker and an order getter?
A: An order taker processes routine orders or reorders for products that were already sold by the company. An order getter sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on their use of a product or service.
Concept Check

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-19
2. What percentage of an order-getting salesperson’s time is spent selling?
A: About 54% (25% selling over the phone and 29% selling face-to-face).
Concept Check

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
Slide 17-25
Stimulus-Response Format
Presentation Stimulus-Response Presentation
Suggestive Selling
Formula Selling Format
Formula Selling Presentation
Canned Selling Presentation

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
Slide 17-26
Need-Satisfaction Format
Presentation Need-Satisfaction Presentation
Adaptive Selling
Consultative Selling

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-67
Adaptive selling involves adjusting
the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information.
Adaptive Selling

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-68
Consultative selling focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution.
Consultative Selling

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
Slide 17-27
Handling Objections
Presentation Acknowledge and Convert the Objection
Postpone
Agree and Neutralize
Accept the Objection
Denial
Ignore the Objection

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-28
Techniques for handling objections

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
Slide 17-29
Close
Presentation
Trial Close
Assumptive Close
Urgency Close
Final Close
Follow-up

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-30
1. What are the six stages in the personal selling process?
A: They are: (1) prospecting,
(2) preapproach, (3) approach,
(4) presentation, (5) close, and
(6) follow-up.
Concept Check

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-31
2. Which presentation format is most consistent with the marketing concept? Why?
A: The need-satisfaction format is most consistent with the marketing concept because it emphasizes problem solving.
Concept Check

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
THE SALES MANAGEMENT PROCESS
Slide 17-32
Sales Plan
Sales Plan Formulation Organizing the Sales Force
Major (or Key) Account Management
Setting Objectives
Developing Account Management Policies
Account Management Policies

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-69
The sales plan is a statement describing what is to be achieved and where and how the selling effort of salespeople
is to be directed.
Sales Plan

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-70
Major account management is the practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships.
Major Account Management

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-33
The sales management process

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
THE PERSONAL SELLING PROCESS: BUILDING RELATIONSHIPS
Slide 17-20
Lead
Personal Selling Process
Prospect
Qualified Prospect
Prospecting
Cold Canvassing
Preapproach
Approach

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-66
The personal selling process consists
of six stages: (1) prospecting,
(2) preapproach, (3) approach,
(4) presentation, (5) close, and
(6) follow-up.
Personal Selling Process

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-21
Stages in the personal selling process

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-22
Stages and objectives of the personal selling process

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-35
Account management policy grid

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
THE SALES MANAGEMENT PROCESS
Slide 17-36
Sales Force Recruitment and Selection
Sales Plan Implementation
Job Analysis
Sales Force Training
Job Description

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
THE SALES MANAGEMENT PROCESS
Slide 17-41
Sales Force Motivation and Compensation
Sales Plan Implementation
Straight Salary Compensation Plan
Straight Commission Compensation Plan
Combination Compensation Plan

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
THE SALES MANAGEMENT PROCESS
Slide 17-43
Quantitative Assessments
Sales Force Evaluation Quotas
Behavioral Evaluation

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
THE SALES MANAGEMENT PROCESS
Slide 17-44
Sales Force Computerization
Sales Force Automation and Customer Relationship Management
Sales Force Communication
Sales Force Automation

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-47
1. What are the three types of selling objectives?
A: They are: (1) output-related (dollars or unit sales, number of new customers, profit); (2) input-related (number of sales calls, selling expenses); and (3) behavioral-related (level of product knowledge, customer service, selling and communication skills).
Concept Check

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-48
2. What three factors are used to structure sales organizations?
A: They are: (1) geography,
(2) customer, and (3) product or service.
Concept Check

Marketing, lecture 13
ass.prof.I.I.Skorobogatykh I.I.
Slide 17-71
Account management policies specify whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out.
Account Management Polices