Ch. 17 Personal Selling and Sales Management Final Review

Advantages of personal selling

Provides detailed explanation or demonstration of the product/service, sales message can adapt to the needs of each customer, selling is only directed towards qualified customers, costs are controlled because the number of sellers is adjusted by each person when needed, most successful at gaining a sale and a satisfied customer.

Limitations of personal selling

Cost per contact is higher, companies have to be selective about where/when they use salespeople, sales force must be properly trained or message will be inaccurate and inconsistent, sellers could convince customers to buy unneeded products because they need to meet a certain quota, not completely genuine.

Relationship selling

Focuses on creating a long-lasting, beneficial relationship between the company/seller and the customer.

Transactional selling

Focuses on specific transactions at face-value.

Steps in the selling process

Generating leads, qualifying leads, approaching the customer and probing needs, developing and proposing solutions, handling objections, closing the sale, following up.

Lead qualification

Determined if the customer has money to buy, if they have the power to make the purchase, and if they have a desire to buy the products.

Qualification criteria (MAD)

Money, Authority, Desire.

FAB

Feature (describes the parts of the product), Advantage (what better qualities does it have than other products), Benefits (how it will benefit the customer).

Sales Management Responsibilities

Defining sales goals and the sales process, determining sales force structure, recruiting and training the sales force, compensating and motivating the sales force, evaluating the sales force.

Ways to organize sales force

By territory/region, by product line, by client type/industry, by client size.

Desirable personality traits in salespeople

Ego strength, assertiveness, sociable, risk takers, quick thinking, creativity, empathy.

Ways to compensate sales force

Salary only, commission only, salary & commission.

Oreo cookie principle

Start with the strengths of the seller, talk about areas of improvement, and end with things the seller did well.