Downloaded 91 times
Uploaded byManvendra Singh
Personal selling
This document provides an overview of sales management concepts across three units: introduction to sales management, personal selling, and the sales process. It discusses key topics such as the definition and tasks of sales management, examples of personal selling roles, the characteristics and types of salespeople, and the personal selling process which involves prospecting, qualifying, approaching, presenting, handling objections, closing, and following up. The document also examines theories of selling such as AIDA which focuses on gaining attention, interest, desire and action from prospects, and the buying formula theory which emphasizes understanding customer needs and problems.
More Related Content
Personal selling
- 1. SALES MANAGEMENT SESSION-1 BLOCK-I SALESMANAGEMENT FUNCTIONS UNIT-1 INTRODUCTION TO SALES MANAGEMENT UNIT-2 PERSONAL SELLING UNIT-3 SALES PROCESS
- 2. SALES MANAGEMENT: It hasbeen defined as the management of a firm’s personal selling function while distribution is the management of the indirect selling effort i.e.,selling through extra corporate organizations which form the distribution network of the firm. The sales management task thus includes analysis, planning, organizing, directing and controlling of the company’s sales effort. UNIT-1 INTRODUCTION TO SALES MANAGEMENT
- 3. BLOCK-1 SALES MANAGEMENT:BASIC FUNCTIONS UNIT-2PERSONAL SELLING & UNIT-3 SALES PROCESS
- 4. Examples of PersonalSelling Retail selling Field selling Telemarketing Inside selling
- 5. Relative Importance of Advertisingand Personal Selling Pre-transaction: Pre-transaction: Create recognition and Create recognition and info understanding info understanding Personal selling Advertising Post-transaction: Post-transaction: Reminder and Reminder and reassurance reassurance Transaction: Transaction: Persuasion Persuasion Personal selling Advertising Personal selling Advertising
- 6. Characteristics of PersonalSelling Pro Con Flexibility Adapt to situations Engage in dialog Builds Relationships Long term Assure buyers receive appropriate services Solves customer’s problems Can not reach mass audience Expensive per contact Numerous calls needed to generate sale Labor intensive
- 7. Types of Salespersons ORDER GETTERS Current customers New customers ORDER TAKERS InsideOrder Takers (via mail, telephone, internet) Outside Field Sales SUPPORT PERSONNEL Missionary Salespersons Trade Salespersons Technical Salespersons
- 8. Personal Selling • Salespeoplehave many names ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ Agents Sales consultants Sales Representatives Account Executives Sales Engineers District Managers Marketing representatives Account Development Representatives 16-8
- 9. Personal Selling Tasks Ordergetting Seeking out customers Creative selling Pioneering Account management Order taking Routine writing up orders checking invoices assuring prompt order processing Suggestive selling
- 10. Personal Selling Tasks Missionary ◦Detailer ◦ Goodwill ◦ “Closers” Cross-functional Account service rep
- 11. You are partof the total product
- 12. Diversity of Personal-sellingSituations Group A (service Selling) 1. Inside Order Taker –”waits on” customers; for example,the sales clerk behind the neckwear counter in a men’s store.These jobs are known as technical support staff, sales assistants, telemarketers, and telesales professionals. 2. Delivery Salesperson – mainly engages in delivering the product; for example, persons delivering milk, bread, or fuel oil. 3. Route or Merchandising Salesperson – operates as an order taker but works in the field – the soap or spice salesperson calling on retailers is typical. 4. Missionary – aims only to build goodwill or to educate the actual or potential user, and is not expected to take an order; for example, the distiller’s “missionary” and the pharmaceutical company’s “detail” person. 5. Technical Salesperson – emphasizes technical knowledge; for example the engineering salesperson, who is primarily a consultant to “client” companies.
- 13. Group B (developmentalSelling) 6. Creative Salesperson of Tangibles – for example, salespersons selling vacuum cleaners, automobiles, and encyclopedia. 7. Creative Salesperson of Intangibles – for example. Salespersons selling insurance, advertising services, and educational programs.
- 14. FOLLOWING UP CLOSING THESALE HANDLING OBJECTIONS MAKING THE SALES PRESENTATION APPROACHING THE PROSPECT Pre approach: QUALIFYING PROSPECTS PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS The Personal Selling Process
- 15. Creative Selling Process Prospecting:Identifying Prospecting: Identifying likely new customers likely new customers ◦◦ Leads Leads ◦◦ Developing lists of Developing lists of Potential Customers Potential Customers Pre-approach (Qualifying) Finding and analyzing information about prospects Evaluating a prospect’s potential
- 16. Approaching The Prospect HOWDO WE MAKE THE INITIAL CONTACT & BUILD RAPPORT There is only one time to make a first impression
- 17. Creative Selling Process MakingThe Sales Presentation Using Persuasive communication Hold Attention Stimulate Interest Desire “Tell the product’s story”
- 18. Creative Selling Process HandlingObjections ◦ Questions ◦ Reservations Understand Concern Counterarguments Acknowledge concern Clues to process
- 19. Overcoming Objections IF HEHADN’T TOLD ME WHAT HIS OBJECTION WAS, I NEVER WOULD HAVE BEEN ABLE TO HELP!
- 20. Creative Selling Process Closingthe Sale Closing signals Trial close Asking the prospect to buy
- 21. Creative Selling Process FollowingUp 7 Commitments met ◦ Shipment ◦ Performance Reinforce L-R relationship Satisfied customers rebuy & recommend
- 23. Managing the SalesForce Designing Sales Force Strategy and Structure ◦ Sales Force Structure Territorial sales force structure GM Sales Sales mgr South All products Sales mgr Central All products Sales Mgr West All products Product sales force structure Customer sales force structure Complex sales force structure
- 24. Managing the Sales Force Sales ForceStrategy and Structure ◦ Sales Force Size Many companies use the workload approach to set sales force size ◦ Other Issues Outside and inside sales forces Team selling
- 25. Try this.. There are150 large prospects (A type), 220 medium prospects (B), and 510 small prospects (C) to be covered for sales No. of calls in a year and duration of each call required for each A (52 calls 60 minutes each), B(24,30), C (12, 15) Each sales person works for 40 hrs per week, 48 weeks (selling time 45%, remaining in travel, office work etc) Find number of sales people required Work load method Classify customers as per potential A - large 150 B - medium 220 C - small 510 Decide time per sales call and frequency A 60 min x 52 calls pa = 52 hrs B 30 min x 24 calls pa = 12 hrs C 15 min x 12 calls = 3 hrs Calculate work load to cover entire market A 150 x 52 = 7800 hrs B 220 x 12 = 2640 C 510 x 3 = 1530 Total 11970 hrs Workload Method
- 26. Determine the totalwork time available with each sales person 40 hrs per week x 48 weeks = 1920 hrs pa Divide it by tasks Selling 45% 864 hrs Non selling 30% 576 hrs Traveling 25% 480 hrs total 1920 hrs 11970 / 864 = 13.8 = 14 sales people needed Workload Method
- 27. Managing the Sales Force Recruiting andSelecting Salespeople ◦ Careful recruiting can: Increase overall sales force performance Reduce turnover Reduce recruiting and training costs Traits ◦ ◦ ◦ ◦ of Successful Salespeople Intrinsic motivation Disciplined work style The ability to close a sale Ability to build relationships with customers
- 28. Managing the Sales Force Training Salespeople ◦Training period can be anywhere from a few weeks to a year or more ◦ Training is expensive, but yields strong returns ◦ Many companies are adding Web-based sales training programs
- 29. Managing the Sales Force Training Salespeople ◦Training programs have many goals Identify with the company and its products Know about customers and competitors The basics of the selling process
- 30. Managing the Sales Force Compensating Salespeople ◦Compensation elements: salary, bonuses, commissions, expenses, and fringe benefits ◦ Basic compensation plans: Straight salary Straight commission Salary plus bonus Salary plus commission ◦ Compensation plans should direct the sales force toward activities that are consistent with overall marketing objectives.
- 31. Managing the Sales Force Supervising Salespeople ◦ Supervision is used to direct and motivate salespeople ◦ Companies will vary in how closely they supervise their salespeople; will vary depending on the skill level and maturity of the sales force, and type of selling Tools used: ◦ Annual call plans and time-and-duty analysis can help provide direction ◦ Sales force automation systems assist in creating more efficient sales force operations ◦ The Internet is the fastest-growing sales technology tool
- 32. Managing the Sales Force Evaluating Salespeople ◦Several tools can be used Sales reports Call reports Expense reports
- 33. Job quality: doit right the first time Servi c Prompt warranty work e Awar d After-sales Service Ratings Speed .37 Reputation 3.38 Service Quality 7.87 Cost 4.39 10 0 Low 1 2 3 4 (SCALE: Degree of Importance) 5 6 7 8 High (JMR/Vol. 78)
- 34. A Key toSuccess Stay Close to Your Customer and LISTEN!
- 35. THEORIES OF SELLING AIDASTheory: ATTENTION INTEREST DESIRE ACTION SATISFACTION
- 36. The advocates ofthis theory define that all the circumstances, which led to the sales were appropriate for the sales to have taken place. In other words, if the sales person is successful in securing the prospect’s attention, maintaining his interest and inducing his desire to buy the product, the sales will result. Moreover, if the sales person is highly skilled, he will take control of the presentation, which would lead to sales. RIGHT SET OF CIRCUMSTANCES THEORY
- 37. Buying Formula Theory Thistheory emphasize on the buyer. This theory emphasizes on the needs or problems of the buyer. The sales person assist the buyer in finding an appropriate solution to the problem. This solution may be in terms of a product or service. This theory is based on the analysis of the sequence of events that goes in the buyer’s mind during the sales presentation. The theory is based on the presumption that the sales person will take care of the external factors. Need (or Problem) -------> Solution -------> Purchase
- 38. Conceptual Model of“Salesperson-Buyer” Dyadic Relationships