CHAPTER PERSONAL SELLING AND SALES MANAGEMENT © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-2 AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: Discuss the nature and scope of personal selling and sales management in marketing Identify the different types of personal selling Explain the stages in the personal selling process © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-3 AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: Describe the major functions of sales management © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-4 SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT • Nature of Personal Selling and Sales Management – Personal Selling – two-way flow of communication between buyer and seller, often in a face-to-face encounter, designed to influence a person’s of group’s purchase decision • Also occurs by telephone , through video teleconferencing, and the internet between buyers and sellers © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-6 SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT • Nature of Personal Selling and Sales Management – Sales Management – planning the selling program and implementing and controlling the personal selling effort of the firm • Tasks involved include: setting objectives; organizing the sales force; recruiting, selecting, training, and compensating salespeople; and evaluating performance of individual salespeople © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-6 SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT • Selling Happens Almost Everywhere – “Everyone lives by selling something” © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-6 FIGURE 20-1 Personal selling and sales management quiz 20% False $350 60% © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-7 SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT • Personal Selling in Marketing • Creating Customer Value Through Salespeople: Relationship and Partnership Selling  Relationship Selling – long-term  Partnership Selling (or Enterprise Selling) © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-8 FIGURE 20-A How salespeople create value for customers © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-9 Salesperson in the Operating Room Why does Medtronic this? © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-10 Sales Engineer A A sales sales engineer engineer is is aa salesperson salesperson who who specializes specializes in in identifying, identifying, analyzing, analyzing, and and solving solving customer customer problems problems and and brings brings know-how know-how and and technical technical expertise expertise to to the the selling selling situation situation but but often often does does not not actually actually sell sell products products and and services services © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-89 Team Selling Team Team selling selling is is the the practice practice of of using using an an entire entire team team of of professionals professionals in in selling selling to to and and servicing servicing major major customers customers © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-90 Personal Selling Process The The personal personal selling selling process process consists consists of of sales sales activities activities occurring occurring before before and and after after the the sale sale itself, itself, consisting consisting of of six six stages: stages: (1) (1) prospecting, prospecting, (2) (2) preapproach, preapproach, (3) (3) approach, approach, (4) (4) presentation, presentation, (5) (5) close, close, and and (6) (6) follow-up follow-up © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-91 Stimulus-Response Presentation Stimulus-response Stimulus-response presentation presentation is is aa presentation presentation format format which which assumes assumes that that given given the the appropriate appropriate stimulus stimulus by by aa salesperson, salesperson, the the prospect prospect will will buy buy © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-92 Formula Selling Presentation Formula Formula selling selling presentation presentation is is aa presentation presentation format format that that consists consists of of information information that that must must be be provided provided in in an an accurate, accurate, thorough, thorough, and and step-by-step step-by-step manner manner to to inform inform the the prospect prospect © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-93 Need-Satisfaction Presentation Need-satisfaction Need-satisfaction presentation presentation is is aa presentation presentation format format that that emphasizes emphasizes probing probing and and listening listening by by the the salesperson salesperson to to identify identify needs needs and and interests interests of of prospective prospective buyers buyers © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-94 Adaptive Selling Adaptive Adaptive selling selling is is aa need-satisfaction need-satisfaction presentation presentation format format that that involves involves adjusting adjusting the the presentation presentation to to fit fit the the selling selling situation, situation, such such as as knowing knowing when when to to offer offer solutions solutions and and when when to to ask ask for for more more information information © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-95 Consultative Selling Consultative Consultative selling selling is is aa needneedsatisfaction satisfaction presentation presentation format format that that focuses focuses on on problem problem identification, identification, where where the the salesperson salesperson serves serves as as an an expert expert on on problem problem recognition recognition and and resolution resolution © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-96 Sales Plan A A sales sales plan plan is is aa statement statement describing describing what what is is to to be be achieved achieved and and where where and and how how the the selling selling effort effort of of salespeople salespeople is is to to be be deployed deployed © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-97 Major Account Management Major Major account account management management is is the the practice practice of of using using team team selling selling to to focus focus on on important important customers customers so so as as to to build build mutually mutually beneficial, beneficial, long-term, long-term, cooperative cooperative relationships relationships Also Also called called key key account account management management © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-98 Workload Method The The workload workload method method is is aa formulaformulabased based method method for for determining determining the the size size of of aa salesforce salesforce that that integrates integrates the the number number of of customers customers served, served, call call frequency, frequency, call call length, length, and and available available selling selling time time to to arrive arrive at at aa figure figure for for the the salesforce salesforce size size © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-99 Account Management Polices Account Account management management policies policies specify specify whom whom salespeople salespeople should should contact, contact, what what kinds kinds of of selling selling and and customer customer service service activities activities should should be be engaged engaged in, in, and and how how these these activities activities should should be be carried carried out out © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-100 Emotional Intelligence Emotional Emotional intelligence intelligence is is the the ability ability to to understand understand one’s one’s own own emotions emotions and and the the emotions emotions of of people people with with whom whom one one interacts interacts on on aa daily daily basis basis © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-101 Sales Quota A A sales sales quota quota contains contains specific specific goals goals assigned assigned to to aa salesperson, salesperson, sales sales team, team, branch branch sales sales office, office, or or sales sales district district for for aa stated stated time time period period © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-102 Salesforce Automation Salesforce Salesforce automation automation (SFA) (SFA) is is the the use use of of computer, computer, information, information, communication, communication, and and Internet Internet technologies technologies to to make make the the sales sales function function more more effective effective and and efficient efficient © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-103 ... OF PERSONAL SELLING AND SALES MANAGEMENT • Nature of Personal Selling and Sales Management – Sales Management – planning the selling program and implementing and controlling the personal selling. .. McGraw-Hill/Irwin Slide 20-4 SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENT • Nature of Personal Selling and Sales Management – Personal Selling – two-way flow of communication between... THIS CHAPTER YOU SHOULD BE ABLE TO: Discuss the nature and scope of personal selling and sales management in marketing Identify the different types of personal selling Explain the stages in the personal