18/10/2012 1 Chapter 7 Managing the Personal Selling Function www.dinhtienminh.net Th.S Đinh Tiên Minh Trường ĐHKT TPHCM Khoa Thương Mại – Du Lịch – Marketing Th.S Đinh Tiên Minh Objectives 2  Understanding the role of personal selling (P.S) in the industrial marketing strategy. Understanding the relationship of industrial buying behavior to personal selling process. Learn the organization and management of the sales force. Know deployment of sales force. 18/10/2012 2 Th.S Đinh Tiên Minh Content 7.1 Role of P.S 7.2 Organizational Buying Behavior and P.S 7.3 Sales Force Organization 3 7.4 Deployment of Sales Force Th.S Đinh Tiên Minh4 Brainstorming P.S in B. Marketing plays a greater role than advertising and promotion in C. Marketing. An industrial Sales and Marketing Manager is responsible to achieve:  Short term objective: Sales targets.  Long term objective: Sales targets and effective sales organisation. 18/10/2012 3 Th.S Đinh Tiên Minh5 Brainstorming (cont’) With the help of technical persons, the salesman offer not just physical products but also technical assistance, ideas, and suggestions to solve the customer’s problems. Th.S Đinh Tiên Minh6 Brainstorming (cont’) Thus, sales management plan should focus on: 1. Understanding the role of PS. 2. Organizing and managing the sales force: • Size, structure. • Recruitment, selection. • Training, supervision. • Motivation, development, compensation. • Evaluation and control. 3. Deploying the sales force and allocating them to specific sales territories and business customers. 18/10/2012 4 Th.S Đinh Tiên Minh7 Brainstorming (cont’) Distinctive characteristics of Industrial Sales:  Trade selling (Working with distributors).  Missionary selling (working with customer to ask them to play orders on the company’s dealers).  Technical selling (To put together a sales team: Non-technical salesperson, Technical support person, Financial expert, and logistics person).  Business selling (Solving the business customer’s problems with the company’s products and services). Th.S Đinh Tiên Minh8 7.1 Role of Personal Selling What are the roles of Personal Selling? 18/10/2012 5 Th.S Đinh Tiên Minh9 7.1 Role of Personal Selling (cont’) Sales Rep as a part of problem-solving capabilities: 1. Helping customer to define the buying problem (especially, the highly technical products. If not, the sales person act as a business consultant to show the customer economic advantages of various purchase alternatives). Th.S Đinh Tiên Minh10 7.1 Role of Personal Selling (cont’) Sales Rep as a part of problem-solving capabilities (cont’): 2. Giving an prompt and effective customer service. It may be: • Drawing product specifications. • Application engineering. • Value Analysis. • Installation, maintenance, or repair. 18/10/2012 6 Th.S Đinh Tiên Minh11 7.1 Role of Personal Selling (cont’) Sales Rep as a part of problem-solving capabilities (cont’): 3. Representing the customer at the factory or head office (Fighting for the customer at the factory to ensure timely delivery, reasonable credit terms, or solving quality problems). ->Sales person need human relation skills in managing pressures and relationships in customer and in his own organisation. He may be disliked by some persons Th.S Đinh Tiên Minh12 7.1 Role of Personal Selling (cont’) Sales Rep as a part of communication mix: 1. Convey selling messages to potential as well as the existing customers. 2. Keep customers informed about the products and services (a good communicator). 3. Keep customers informed about the catalogues, exhibitions, trade shows, or direct mail. 4. Communicate market information on competition, market trends in sales reports. 18/10/2012 7 Th.S Đinh Tiên Minh13 7.2 Organisational buying behavior & P.S Sales Rep should study an industrial customer’s buying behavior from 2 questions: 1. Is the specific buying situation perceived by the buying company as a new-task, modified rebuy, or straight rebuy (repeat purchase)? 2. What are the influences of environmental, organisational, buying center, and individual variables on the firm’s buying process? Th.S Đinh Tiên Minh14 7.2 Organisational buying behavior & P.S The selling process: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3 rd edition, p253. Prospecting and Qualifying Presentation and Demonstration Pre-approach (Pre-call Planning) Approach Overcoming Objections Trial Close/Closing the Sales Follow-up and Service 18/10/2012 8 Th.S Đinh Tiên Minh30 7.2 Organisational buying behavior & P.S Use the FAB Approach Product Service Feature Advantage Benefit Electric Motor Special design for low voltage application This means the equipment like pump sets can be used even under low voltage situations. Our motor can be used even when you have low voltage conditions, as needed by you. Annual maintenance contract for computer systems We have twelve service engineers. This will ensure a quick service. Our service person will attend to your service needs within eight working hours as desired by you. Source: Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3 rd edition, p259. www.dinhtienminh.net . Business selling (Solving the business customer’s problems with the company’s products and services). Th.S Đinh Tiên Minh8 7.1 Role of Personal Selling What are the roles of Personal Selling? 18/10/2012 5 Th.S. Understanding the role of personal selling (P.S) in the industrial marketing strategy. Understanding the relationship of industrial buying behavior to personal selling process. Learn the organization. Sales:  Trade selling (Working with distributors).  Missionary selling (working with customer to ask them to play orders on the company’s dealers).  Technical selling (To put together a sales