Module 3d

Marketing: An Introduction

Personal Selling Definition

  • Salesperson: An individual acting for a company by performing activities such as:

    • Prospecting

    • Communicating

    • Servicing

    • Information Gathering

Names for Salespeople

  • Various titles include:

    • Agents

    • Sales Consultants

    • Sales Representatives

    • Account Executives

    • Sales Engineers

    • District Managers

    • Marketing Representatives

    • Account Development Representatives

The Role of the Sales Force

  • Importance of Sales Force:

    • Engages in two-way personal communication

    • More effective than advertising in complex selling situations

    • Plays a major role in ensuring customer satisfaction and profit for the company

Sales Force Management

  • Definition: Involves analysis, planning, implementation, and control of sales force activities:

    • Setting and designing strategy

    • Recruiting, selecting, training, supervising, compensating, and evaluating salespeople

Sales Force Strategy and Structure

  • Sales Force Structure:

    • Territorial Sales Force Structure

    • Product Sales Force Structure

    • Customer Sales Force Structure

    • Complex Sales Force Structure

Managing the Sales Force

  • Sales Force Size:

    • Companies often use workload approach to determine size

  • Issues to Consider:

    • Outside vs. inside sales forces

    • Team selling

Recruiting and Selecting Salespeople

  • Benefits of Careful Recruiting:

    • Increases overall sales performance

    • Reduces turnover

    • Lowers recruiting and training costs

Traits of Successful Salespeople

  • Essential traits:

    • Enthusiasm

    • Patience

    • Initiative

    • Self-confidence

    • Job commitment

    • Customer orientation

    • Independent and self-motivated

    • Excellent listeners

    • Friendly and persistent

    • Attentive, honest, and relationship-oriented

    • Disciplined and hardworking

    • Team players

Training Salespeople

  • Training Overview:

    • Average training period is 4 months

    • Though costly, training yields significant returns

    • Aims include sales skills enhancement and may involve web-based training programs

Compensating Salespeople

  • Elements of Compensation:

    • Salary, bonuses, commissions, expenses, fringe benefits

  • Basic Compensation Plans:

    • Straight salary

    • Straight commission

    • Salary plus bonus

    • Salary plus commission

Strategic Compensation Planning

  • Ensures alignment with marketing objectives:

    • Gain market share

    • Solidify market leadership

    • Maximize profitability

Supervising Salespeople

  • Effective Supervisory Practices:

    • Provide clear direction using annual call plans and time-and-duty analysis

    • Utilize sales force automation systems for efficiency

    • Recognize the role of the Internet as a growing sales tool

  • Motivation Techniques:

    • Establish organizational climate

    • Set sales quotas

    • Offer positive incentives (sales meetings, contests, honors)

Evaluating Salespeople

  • Evaluation Tools:

    • Sales reports

    • Call reports

    • Expense reports

Steps in the Selling Process

The Personal Selling Process

  1. Prospecting and Qualifying

    • Prospecting: Identifying potential customers

    • Qualifying: Screening leads

  2. Preapproach

    • Researching best practices regarding potential customers pre-call

  3. Approach

    • Initial meeting between salesperson and customer

  4. Presentation and Demonstration

    • Showcasing product benefits and understanding needs

  5. Handling Objections

    • Addressing and answering concerns

  6. Closing

    • Asking for the order

  7. Follow-up

    • Ensuring customer satisfaction