Essentials of Marketing Chapter 14 - Personal Selling and Customer Service

Choices a salesperson must make

1) Which target customers to aim at

2) Which products to emphasize

3) Which intermediaries to rely on

4) What message to communicate and how to spend promotion money

5) How to adjust prices

3 Basic sales tasks

1) Order-getting

2) Order-taking

3) Supporting

Responsibilities of Order getters

Locates new prospects, opens new accounts, sees new opportunities, and helps establish and build channel relationships

Responsibilities of Order takers

Sells to established customers, completes most sales transactions, and maintains relationships with their customers

Order takers

This type of salesperson helps explain details, make adjustments, handle complaints, explains new prices or terms, place sales promotion materials, and keeps customers informed of new developments.

Supporting salespeople

Helps the order-oriented salespeople, but they don't try to get orders themselves

Missionary salespeople

Supporting salespeople who work for producers - calling on intermediaries and their customers. They develop goodwill and stimulate demand.

Technical specialists

Supporting salespeople who provide technical assistance to order-oriented salespeople. Shows the technical details of products rather than trying to sell them.

Customer service reps

Works with customers to resolve problems that arise with purchase, usually after the purchase has been made. They are the salespeople who promote a customer's next purchase by being sure that the customer is satisfied with a previous purchase.

Major accounts sales force

Sells directly to large accounts like Lowe's or other major retail chains.

3 basic methods of payment

1) Straight salary 2) Straight commission 3) Combination plan

Straight salary

This payment method increases the amount of supervision needed.

Straight commission

With this payment method, the salesperson tends to be his or her own boss.

Sales quota

The specific sales or profit objectives a salesperson is expected to achieve

Basic steps each salesperson should follow

Prospecting and Selecting Target Customers, Planning sales presentations, making sales presentations, and Following Up

Prospecting

Following all the leads in the target market to identify potential customers

Sales presentation

A salesperson's effort to make a sale or address a customer's problem.

2 methods to making sales presentations

1) Prepared approach 2) Consultative selling approach

Prepared Sales Presentation

Uses a memorized presentation that is not adapted to each individual customer.

Consultative Selling Approach

Involves developing a good understanding of the customer's needs before trying to close the sale. Also known as the problem-solving approach or need-satisfaction approach

Selling Formula Approach

Starts with prepared presentation outline and leads the customer through some logical steps to a final close