Personal Selling

Personal Selling

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Advantages of Personal Selling •

Provides a detailed explanation or demonstration of product

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Message can be varied to fit the needs of each prospective customer

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Can be directed to specific qualified prospects

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Costs can be controlled by adjusting sales force size

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Most effective in obtaining sales and gaining satisfied customers 2

Personal Selling Personal Selling is more important if...

Advertising & Sales Promotion are more important if...

Product has a high value

Product has a low value

Product is custom made

Product is standardized

Product is technically complex

Product is simple to understand

There are few customers

There are many customers

Customers are concentrated

Customers are geographically dispersed 3

Relationship Selling A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.

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Relationship Selling Focus: Building Mutual Trust

Long-Term Value-Added Benefits to Buyer

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Relationship Selling vs. Traditional Selling Traditional Personal Selling

Relationship Selling

Sell products

Sell advice, assistance, counsel

Focus on closing sales

Focus on customer’s bottom line

Limited sales planning

Sales planning is top priority

Discuss product Build problem-solving environment Assess “Product-specific” Conduct discovery in scope of needs operations “Lone wolf” approach Team approach Profit impact and strategic Pricing/product focus benefit focus Short-term sales follow-up Long-term sales follow-up 6

Sales Process The set of steps a salesperson goes through in a particular organization to sell a particular product or service.

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Steps in Personal Selling 1. 2. 3. 4. 5. 6. 7.

Prospecting Preapproach Approach Presentation and Demonstration Handling Objections & Queries Closing Follow-up

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Steps in the Selling Process Generate Leads Qualify Leads Probe Customer Needs Develop Solutions

Basic Steps in the Personal Selling Process

Handle Objections Close the Sale Follow Up 9

Generating Leads Advertising

Publicity

Direct Mail/ Telemarketing

Cold Calling

Web Sites/ Internet

Referrals

Networking

Trade Shows/ Conventions

Company Records

Sources of Sales Leads 10

Cold Calling A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial status.

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Qualifying Leads Characteristics of Qualified Leads

Receptivity & Accessibility

Recognized Need Buying Power

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Probing Needs Product or service

Salesperson must know everything about...

Customers and their needs

Competition

Industry 13

Needs Assessment A determination of the customer’s specific needs and wants and the range of options a customer has for satisfying them.

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Developing and Proposing Solutions Sales Proposal

Sales Presentation

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Handling Objections View objections as requests for information

Handling Objections

Anticipate specific objections Use the objection to close the sale

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Closing the Sale Look for customer signals

Closing the Sale

Keep an open mind Negotiate

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Following Up

Responsibilities in Following Up

Ensure delivery schedules are met Goods or service perform as promised Employees are trained

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Prerequisites of effective selling Know your company Know your Product Know your competitors and their products Know your Customers Know the Process of Selling Know yourself

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Qualities of a Good Salesman • • • •

Physical Qualities Social Qualities Mental Qualities Moral Qualities

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Sales Management Responsibilities Define sales goals and sales process Determine sales force structure

Tasks of Sales Management

Recruit and train sales force Compensate and motivate sales force Evaluate sales force 21

Defining Sales Goals Clear

Precise

Sales Goals Should Be... Measurable

Time Specific 22

Quota A statement of the individual salesperson’s sales objectives, usually based on sales volume alone but sometimes including key accounts.

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Sales Force Structure Geographic Region

Common Sales Organization Structures

Product Line Marketing Function Market or Industry Individual client or account 24

Training the Sales Force Company policies and practice Selling techniques

Training includes...

Product knowledge Industry and customer characteristics Nonselling duties 25

Compensation Plans Basic Compensation Methods

Commission

Salary Combination Plans

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Compensation Plans Straight Commission

The salesperson is paid some percentage when a sale is made.

Straight Salary

The salesperson receives a salary regardless of sales productivity.

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Effective Sales Leaders Effective Sales Leaders... Are assertive Possess ego drive Possess ego strength Take risks Are innovative Have a sense of urgency Are empathetic 28

Evaluating the Sales Force Sales Volume Contribution to Profit Calls per Order

Performance Measures

Sales or Profits per Call Call Percentage Achieving Goals 29

The Impact of Technology on Personal Selling Laptop computer link Mobile telephones Pagers Personal data assistants

Sales Force Automation

E-Mail Internet 30