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

• 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

 Concept Check

1. What is personal selling?

A: Personal selling involves the two-

way flow of communication between
a buyer and seller, often in a face-to-
face encounter, designed to influence
a person’s or group’s purchase
decision.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-11

 Concept Check

2. What is involved in sales

management?
A: Sales management involves planning
the selling program and
implementing and controlling the
personal selling effort of the firm.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-12

 THE MANY FORMS OF
PERSONAL SELLING

• Order Taking
 Outside Order Takers
 Inside Order Takers, Order Clerks,
or Salesclerks
 Inbound Telemarketing
• Order Getting
 Outbound Telemarketing
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-13
 THE MANY FORMS OF
PERSONAL SELLING

• Customer Sales Support Personnel

 Missionary Salespeople – promotion and introduction
 Sales Engineer – identifying, analyzing & solving
 Team Selling – team of professionals (cross-functional)
 Conference Selling – discuss problems and opportunities
 Seminar Selling – conducts educational program for
technical staff

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-17

 Concept Check

2. What is team selling?

A: Team selling uses an entire team of

professionals in selling to and
servicing major customers.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-20

THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS

• Personal Selling Process – six

stages:
1. Prospecting
2. Preapproach
3. Approach
4. Presentation
5. Close
6. Follow-up

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-21

FIGURE 20-C Stages in the personal selling
process

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-23

FIGURE 20-3 Stages and objectives of the
personal selling process

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-22

THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS

• Prospecting – search for and qualification

of potential customers
 Lead – name who may be possible customer
 Prospect – customer who wants or needs product
 Qualified Prospect – want, money, and authority to buy
 Cold Canvassing

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-21

THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS

• Preapproach – obtaining further

information about prospect and deciding best
method of approach

• Approach – initial meeting between

salesperson and prospect

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-25

 THE SALES MANAGEMENT PROCESS

• Sales Plan Formulation: Setting Objectives

– Output-related – focuses on dollar or unit sales
volume, number of new customers, and profit
– Input-related – emphasizes the number of sales calls
and selling expenses
– Behaviorally-related – focuses on product knowledge,
customer service, and selling and communication skills

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-37

 THE SALES MANAGEMENT PROCESS

• Sales Plan Formulation: Setting Objectives

– Firms emphasize knowledge of competition as an
objective
– Objectives should be precise and measurable and
specify time period over which they are achieved
– Objectives should serve as performance standards for
the evaluation of the sales force

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-37

 THE SALES MANAGEMENT PROCESS

• Sales Plan Formulation: Organizing the

Sales Force
 Own Sales Force vs. Independent Agents
 Organized according to:
• Geography – simplest: regions, districts, territories
• Customer Type – different buyers have different
needs. Variation: Major Account Management
• Product/Service – specific knowledge required

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-37

FIGURE 20-6 Organizing the salesforce by
customer, product, and geography

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-43

FIGURE 20-6A Organizing the salesforce by
geography

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-44

THE SALES MANAGEMENT PROCESS

• Sales Plan Formulation: Setting

Direction
 Organizing the Salesforce—Size
• Workload Method
• Developing Account Management Policies

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-47

FIGURE 20-4 The sales management
process

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-38

THE SALES MANAGEMENT PROCESS

• Sales Plan Implementation: Putting the

Plan into Action
 Salesforce Recruitment and Selection
• Job Analysis

• Job Description

• Emotional Intelligence

 Salesforce Training

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-49

 Personal Selling

Personal selling involves the two-way

flow of communication between a buyer
and seller, designed to influence a
person’s or group’s purchase decision,
usually in face-to-face communication
between the sender and receiver.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-82

 Sales Management

Sales management involves planning

the selling program and implementing and
controlling the personal selling effort of
the firm.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-83

 Relationship Selling

Relationship selling is the practice of

building ties to customers based on a
salesperson’s attention and commitment
to customer needs over time.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-84

 Partnership Selling

Partnership selling is the practice

whereby buyers and sellers combine their
expertise and resources to create
customized solutions, commit to joint
planning, and share customer,
competitive, and company information for
their mutual benefit, and ultimately the
customer. Also called enterprise selling.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-85
 Order Taker

An order taker processes routine orders

or reorders for products that were already
sold by the company.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-86

 Order Getter

An order getter sells in a conventional

sense and identifies prospective
customers, provides customers with
information, persuades customers to buy,
closes sales, and follows up on customers’
use of a product or service.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-87

 Missionary Salespeople

Missionary salespeople are sales support

personnel who do not directly solicit
orders but rather concentrate on
performing promotional activities and
introducing new products.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-88

 Sales Engineer

A sales engineer is a salesperson who

specializes in identifying, analyzing, and
solving customer problems and brings
know-how and technical expertise to the
selling situation but often does not
actually sell products and services.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-89

 Team Selling

Team selling is the practice of using an

entire team of professionals in selling to
and servicing major customers.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-90

 Personal Selling Process

The personal selling process consists of

sales activities occurring before and after
the sale itself, consisting of six stages:
(1) prospecting, (2) preapproach,
(3) approach, (4) presentation, (5) close,
and (6) follow-up.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-91

Stimulus-Response Presentation

Stimulus-response presentation is a
presentation format which assumes that
given the appropriate stimulus by a
salesperson, the prospect will buy.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-92

Formula Selling Presentation

Formula selling presentation is a

presentation format that consists of
information that must be provided in
an accurate, thorough, and step-by-step
manner to inform the prospect.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-93

Need-Satisfaction Presentation

Need-satisfaction presentation is a
presentation format that emphasizes
probing and listening by the salesperson
to identify needs and interests of
prospective buyers.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-94

 Adaptive Selling

Adaptive selling is a need-satisfaction

presentation format that involves
adjusting the presentation to fit the selling
situation, such as knowing when to offer
solutions and when to ask for more
information.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-95

 Consultative Selling

Consultative selling is a need-

satisfaction presentation format that
focuses on problem identification, where
the salesperson serves as an expert on
problem recognition and resolution.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-96

 Sales Plan

A sales plan is a statement describing

what is to be achieved and where and
how the selling effort of salespeople is
to be deployed.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-97

 Emotional Intelligence

Emotional intelligence is the ability to

understand one’s own emotions and the
emotions of people with whom one
interacts on a daily basis.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-101

 Sales Quota

A sales quota contains specific goals

assigned to a salesperson, sales team,
branch sales office, or sales district for
a stated time period.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 20-102