Sales Management

Nature of Personal Selling

• Should Sales people are well-Knowledgeable,
• Well-trained professionals who work to build and
maintain long-term relationships with customers.
• The term sales person covers a wide spectrum
of positions from:
– Order taker (department store salesperson)
– Order getter (someone engaged in creative selling)
– Missionary salesperson (building goodwill or educating
buyers)
 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.
 The Role of the Sales Force

• Personal selling is effective because

salespeople can:
– Probe customers to learn more about their
problems,
– Adjust the marketing offer to fit the special
needs of each customer,
– Negotiate terms of sale,
– Build long-term personal relationships with key
decision makers.
 The Role of the Sales Force
Represent the Company
to Customers to Produce
Company Profit

Sales Force
Serves as a Critical Link
Between a Company and its Customers Since

Represent Customers to
the Company to Produce
Customer Satisfaction
 Characteristics of Personal Selling

Flexibility Builds Relationships

• Identify best • Long term
prospects • Assure buyers
• Adapt to situations receive appropriate
• Engage in dialogue services
• Solves customer’s
problems
Personal Selling Limitations
• Can not reach mass audience
• Expensive per contact
• Numerous calls needed to
generate sale
• Labor intensive
Personal Selling Tasks

Order taking
• Routine
– writing up orders
– checking invoices
– assuring prompt order
processing
• Suggestive selling
Personal Selling Tasks

Order getting
• Seeking out
customers
• Creative selling
• Pioneering
• Account management
Personal Selling Tasks

• Missionary
– Detailer
– Goodwill
– “Closers”
• Cross-functional
• Account service rep
Aligning Strategy and Sales
Sizing a Sales Force
Selling as a Boundary Role
Factors Affecting Job Attitudes
Effective Sales Compensation Systems
Some Traits of Good Salespeople
 Steps in the Selling Process

Step
Step1.1. Prospecting
Prospectingand
and Identifying and Screening For
Qualifying
Qualifying Qualified Potential Customers.

Learning
LearningAsAsMuch
MuchAsAsPossible
Possible
Step
Step 2.
2. Pre-approach
Pre-approach About
AboutaaProspective
ProspectiveCustomer
Customer
Before
BeforeMaking
MakingaaSales
SalesCall.
Call.

Knowing
KnowingHowHowtotoMeet
Meetthe
theBuyer
Buyer
Step
Step3.
3. Approach
Approach to
toGet
Getthe
theRelationship
RelationshipOff
Off
to
toaaGood
GoodStart.
Start.

Step Telling
Tellingthe
theProduct
Product“Story”
“Story”
Step4.
4.Presentation/
Presentation/ to
Demonstration tothe
theBuyer,
Buyer,and
andShowing
Showingthe
the
Demonstration Product
ProductBenefits.
Benefits.
 Steps in the Selling Process

Seeking Out, Clarifying,

Step
Step5.
5. Handling
HandlingObjections
Objections and Overcoming
Customer Objections to
Buying.

Step Asking the Customer

Step 6.
6. Closing
Closing
for the Order.

Step Following Up After the Sale to

Step7.
7. Follow-Up
Follow-Up
Ensure Customer Satisfaction
and Repeat Business.
 Alternative Steps:

Find ’em
Find ’em
Grab ‘em
Grab ‘em

Show ‘em
Show ‘em

Answer ‘em
Answer ‘em

Sell ‘em
Sell ‘em
Keep ‘em
Keep ‘em
 Creative Selling Process

Identify
Identify and
and Qualifying
Qualifying
Prospects
Prospects
•• Prospecting:
Prospecting: Identifying
Identifying
likely
likely new
new customers
customers
–– Leads
Leads
•• Qualifying:
Qualifying: Evaluating
Evaluating aa
prospect’s
prospect’s potential
potential
Creative Selling Process

Approaching
Approaching the the Prospect
Prospect
•• Contact
Contact
•• Rapport
Rapport
•• “Only
“Only one
one chance
chance toto
make
make aa first
first impression”
impression”
 Creative Selling Process

Sales
Sales Presentation
Presentation
•• Persuasive
Persuasive
communication
communication
•• Attention
Attention
•• Interest
Interest
•• Desire
Desire
•• “Tell
“Tell the
the product’s
product’s story”
story”
Creative Selling Process

Handling
Handling Objections
Objections
–– Questions
Questions
–– Reservations
Reservations
•• Understand
Understand Concern
Concern
•• Counterarguments
Counterarguments
•• Acknowledge
Acknowledge concern
concern
•• Clues
Clues to
to process
process
Creative Selling Process

Closing
Closing the
the Sale
Sale
•• Closing
Closing signals
signals
•• Trial
Trial close
close
•• Ask
Ask for
for the
the sale
sale
 Creative Selling Process

Following
Following Up
Up
•• Commitments
Commitments met
met
–– Shipment
Shipment
–– Performance
Performance
•• Reinforce
Reinforce relationship
relationship
•• Satisfied
Satisfied customers
customers
rebuy
rebuy && recommend
recommend
 Sales Management

Setting Organizing
objectives Planning Organizing activities

Recruit,
Motivate, select,
evaluate, train,
& control develop,
Controlling Directing
manage, &
motivate
Organizing Sales Activities

Sales
Sales Territor
Territory:
y:
•• Geographic
Geographic divisions
divisions
•• Customer
Customer types
types
•• Product
Product lines
lines
•• Selling
Selling task
task
 Geographic Division

Vice-President
Marketing

Regional Sales Regional Sales

Manager Manager

District Sales District Sales District Sales District Sales

Manager Manager Manager Manager

Sales Rep Sales Rep Sales Rep Sales Rep

California Pacific NW Southeast Northeast
 Customer Type

Vice-President
Sales

New Accounts Existing Accounts

Manager Manager

New Account New Account Existing Existing

#1 #2 Account #1 Account #2
 Product Line

Vice-President
Sales

Snack Foods Beverages

Sales Manager Sales Manager

Sales Rep Sales Rep Sales rep Sales Rep

Eastern Region West’n Region Eastern Region West’n Region
 Directing the Sales Force
• Recruiting and selecting
• Training & develop
• Compensating
• Motivating
 Compensation Methods

Straight
salary or
wage
Salary plus Straight
commission commission

Quota-bonus Commission
plan with draw
Evaluation and Control
• Required reports
• Measurement against
plan or sales
standards
• Expense control
• Productivity
• New account
development
 Ethical Issues
• Kickbacks, bribes and
“gifts”
• Price discrimination
• Cheating on expense
accounts
• Misrepresentation