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Personal Selling

    Dr. George Belch
San Diego State University
            ©
Promoting Products

• Direct promotion
  • Through advertising and promotion
  • Direct-marketing efforts
  • Dyadic communication allows for
    immediate feedback and adjustment
  • Plays critical role in industrial settings

• Indirect promotion
  • Through resellers
  • Through sales people
Determining the Role of Personal Selling


      What information must be exchanged
      between firm and potential customer?

    What are the alternative ways to carry out
       these communications objectives?

    How effective is each alternative in carrying
            out the needed exchange?

      How cost effective is each alternative?
Stages of Personal Selling Evolution


                    Selling activity limited to
   Provider
                    order-taking and delivery

                     Attempting to persuade
  Persuader
                         customer to buy

                 Seeking out buyers perceived to
  Prospector
                          have a need

                 Buyers identify problems to be
Problem-solver
                          met by goods

                 Seller determines buyer needs
  Procreator
                         and fulfills them
New Roles for Salespeople




         Surveying
        Mapmaking
          Guiding
        Fire Starting
Customer Relationship Marketing




• An organization’s effort to develop a link
  with individual customers that is
  • Long-term
  • Cost effective
  • Mutually beneficial
Factors in Keeping a Customer


               Perceived
             Price to Value
              Proposition


       Customer         Product
        Service         Quality


                                  Loyalty/
 Product       Depth of           Reward
Uniqueness   Product Line         Program
Salesperson Classifications

             Assess situation, determine needs
 Creative
  Selling    Present ability to satisfy needs

             Get order


 Order       More casual role
 Taking
             Often involves straight rebuying

             Essentially a support role
Missionary
  Sales      May not actually take orders
Personal Selling Responsibilities


     Locate prospective customers

 Determine customers’ needs and wants

   Recommend a way to satisfy them

   Demonstrate product capabilities

            Close the sale

   Follow up and service the account
Traits of Effective Salespeople



         Good
                          Reliable
      Communicator

Relationship-    Customer-
                                 Responsive
  oriented        focused

           Results-       Problem
           oriented        Solver

Knowledgeable   Professional         Thorough
Traits Buyers Like and Dislike


     Desirable          Objectionable


1. Knowledgeable     1. Unprepared
2. Empathizes        2. Uninformed
3. Well organized    3. Aggressive
4. Prompt            4. Undependable
5. Follows through   5. No follow through
6. Has solutions     6. Presumptive
7. Punctual          7. Walk-ins
8. Hard working      8. Gabbers
9. Energetic         9. Problem avoiders
10.Honest            10.Lack of respect
Pros and Cons of Personal Selling

   Advantages             Disadvantages
Two-way interaction       Messages may be
   with prospect            inconsistent

  Message can be        Possible management-
tailored to recipient     sales force conflict

Prospect isn't likely       Cost is often
  to be distracted         extremely high

 Seller involved in        Reach may be
 purchase decision          very limited

 Source of research        Potential ethical
    information               problems
Personal Selling + Other Tools


                     Advertising


                   Public Relations

 Personal
                   Direct Marketing
  Selling

                   Sales Promotion


                    The Internet
Personal Selling + Advertising
Personal Selling + PR




  Rep is often best source of PR

Representative of the organization

     Involved in community

        Creates goodwill
Personal Selling + Direct Marketing
Personal Selling + Sales Promotion



                         Reseller
     Sales
   Promotion            Consumer
    Targets
                       Sales Force
Personal Selling + the Internet
Evaluating the Personal Selling Effort

• Factors to be considered
  • Review of all target accounts
  • Review of all cross-functional selling
  • Review of specific territory objectives
  • Knowledge of products, customers, and
    customer organizations
  • Ability to apply this market knowledge
  • Development of a favorable attitude
  • Required course corrections
Characteristics Affecting Performance


     Strength of the field manager

      Clear link between company
    culture/values to sales strategies

      Management processes that
         drive performance
          Consistent training
        The courage to change
Evaluating Personal Selling



  Provision of
                    Follow-up
   marketing
                    activities
  intelligence


                   Attainment of
    Program
                  communications
implementations
                     objectives
Quantitative Measures of Sales Results

                        Orders

                     Sales Volume

                        Margins
Quantitative
 Measures
                   Customer Accounts

                      Sales Calls

                    Selling Expenses

                   Customer Service
Qualitative Measures of Sales Results




                      Selling Skills




                      Sales Related
                        Activities

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Lecture 11-personal selling

  • 1. Personal Selling Dr. George Belch San Diego State University ©
  • 2. Promoting Products • Direct promotion • Through advertising and promotion • Direct-marketing efforts • Dyadic communication allows for immediate feedback and adjustment • Plays critical role in industrial settings • Indirect promotion • Through resellers • Through sales people
  • 3. Determining the Role of Personal Selling What information must be exchanged between firm and potential customer? What are the alternative ways to carry out these communications objectives? How effective is each alternative in carrying out the needed exchange? How cost effective is each alternative?
  • 4. Stages of Personal Selling Evolution Selling activity limited to Provider order-taking and delivery Attempting to persuade Persuader customer to buy Seeking out buyers perceived to Prospector have a need Buyers identify problems to be Problem-solver met by goods Seller determines buyer needs Procreator and fulfills them
  • 5. New Roles for Salespeople Surveying Mapmaking Guiding Fire Starting
  • 6. Customer Relationship Marketing • An organization’s effort to develop a link with individual customers that is • Long-term • Cost effective • Mutually beneficial
  • 7. Factors in Keeping a Customer Perceived Price to Value Proposition Customer Product Service Quality Loyalty/ Product Depth of Reward Uniqueness Product Line Program
  • 8. Salesperson Classifications Assess situation, determine needs Creative Selling Present ability to satisfy needs Get order Order More casual role Taking Often involves straight rebuying Essentially a support role Missionary Sales May not actually take orders
  • 9. Personal Selling Responsibilities Locate prospective customers Determine customers’ needs and wants Recommend a way to satisfy them Demonstrate product capabilities Close the sale Follow up and service the account
  • 10. Traits of Effective Salespeople Good Reliable Communicator Relationship- Customer- Responsive oriented focused Results- Problem oriented Solver Knowledgeable Professional Thorough
  • 11. Traits Buyers Like and Dislike Desirable Objectionable 1. Knowledgeable 1. Unprepared 2. Empathizes 2. Uninformed 3. Well organized 3. Aggressive 4. Prompt 4. Undependable 5. Follows through 5. No follow through 6. Has solutions 6. Presumptive 7. Punctual 7. Walk-ins 8. Hard working 8. Gabbers 9. Energetic 9. Problem avoiders 10.Honest 10.Lack of respect
  • 12. Pros and Cons of Personal Selling Advantages Disadvantages Two-way interaction Messages may be with prospect inconsistent Message can be Possible management- tailored to recipient sales force conflict Prospect isn't likely Cost is often to be distracted extremely high Seller involved in Reach may be purchase decision very limited Source of research Potential ethical information problems
  • 13. Personal Selling + Other Tools Advertising Public Relations Personal Direct Marketing Selling Sales Promotion The Internet
  • 14. Personal Selling + Advertising
  • 15. Personal Selling + PR Rep is often best source of PR Representative of the organization Involved in community Creates goodwill
  • 16. Personal Selling + Direct Marketing
  • 17. Personal Selling + Sales Promotion Reseller Sales Promotion Consumer Targets Sales Force
  • 18. Personal Selling + the Internet
  • 19. Evaluating the Personal Selling Effort • Factors to be considered • Review of all target accounts • Review of all cross-functional selling • Review of specific territory objectives • Knowledge of products, customers, and customer organizations • Ability to apply this market knowledge • Development of a favorable attitude • Required course corrections
  • 20. Characteristics Affecting Performance Strength of the field manager Clear link between company culture/values to sales strategies Management processes that drive performance Consistent training The courage to change
  • 21. Evaluating Personal Selling Provision of Follow-up marketing activities intelligence Attainment of Program communications implementations objectives
  • 22. Quantitative Measures of Sales Results Orders Sales Volume Margins Quantitative Measures Customer Accounts Sales Calls Selling Expenses Customer Service
  • 23. Qualitative Measures of Sales Results Selling Skills Sales Related Activities

Notes de l'éditeur

  1. Relation to Text This slide relates to page 11 of the text and Figure 22-6. Summary Overview This slide lists traits that buyers prefer in sales people, and the ones that they find objectionable. Use of this slide This slide can be used when discussing what customers desire in a salesperson. The traits listed are the results of one company’s survey of buyers’ likes and dislikes regarding its sales force.
  2. Relation to text This slide relates to pages 14-18 of the text. Summary Overview This slide shows that personal selling is regularly combined with the other IMC tools including advertising, public relations, direct marketing, sales promotion, and the Internet. Use of this slide This slide can be used to introduce the fact that personal selling is rarely used alone… it is often supported by other IMC program elements. A more detailed discussion on combining personal selling with other promotional tools follows.
  3. Relation to text This slide relates to pages 14-15 of the text and Exhibit 22-4. Summary Overview This slide contains an ad by Dell that informs customers that they compete in the business-to-business market. Use of this slide This slide can be used when discussing how advertising that supports the sales effort is likely to: Improve reach Reduce costs Increase the probability of a sale Unfortunately, many salespeople do not understand the role that advertising plays and the contribution it can make to their sales efforts. A company with no brand awareness or image also has a disadvantage when trying to get sales people in the door.
  4. Relation to text This slide relates to material on pages 15-16 of the text. Summary Overview This slide shows how personal selling can be combined with public relations. Use of this slide This slide can be used to demonstrate how the sales representative plays a public relations role in a company. The sales rep is often the best source of good PR for the company Sales people are representatives of the organization Sales people are involved in community Sales people create goodwill for the company Their personalities, servicing of the account, cooperation, and empathy not only influence sales potential, but reflect on the organizations they represent.
  5. Relation to text This slide relates to pages 16-17 of the text and Exhibit 22-6. Summary Overview This slide shows an ad for Phone Works, a company that helps organizations with the sales process, including assisting in the development and implementation of direct marketing methods. Use of this slide This ad can be used to discuss how companies are integrating various forms of direct marketing into their sales programs to make selling efforts more effective. Various forms of direct marketing, including traditional mail, telemarketing and email ,are used by many companies to identify and quality prospects and provide them with information before they are contacted by a sales person.
  6. Relation to text This slide relates to pages 17-18 of the text. Summary Overview This slide shows how elements of sales promotion and personal selling support each other. Use of this slide This slide can be used to illustrate how sales promotion can support the sales force. For example, many sales promotions targeted to resellers are presented by the sales force, which is ultimately be responsible for removing or replace them as well. Other promotional tools, designed to assist the sales staff, also serve as reminders or create goodwill. Flip charts Leave-behinds Specialty ads Likewise, many sales promotions are targeted at the sales force itself in order to stimulate sales efforts. Free trips Cash bonuses Gifts Contests and sweepstakes
  7. Relation to text This slide relates to page 20 of the text. Summary Overview This slide shows the criteria for evaluating the contribution of the personal selling effort to the promotional program. Use of this slide This slide can be used to discuss the criteria for judging the personal selling effort’s contribution to the overall promotional program. Provision of marketing intelligence… how well the sales force fed back information regarding competitive programs, customer reactions, market trends, and other factors are important in the development of the promotional program. Follow-up activities… the use and dissemination of promotional brochures and correspondence with new and existing customers, providing feedback on the effectiveness of promotional programs. Program implementations… the number of promotional programs implemented; the number of shelf and/or counter displays used, and so forth; the implementation and assessment of cooperative advertising programs. Attainment of communications objectives… the number of accounts to whom presentations were made, the number of trial offers accepted, and the like.