Chapter 19 Personal Selling and Sales Promotion 19 1 The Nature of Personal Selling Personal Selling paid personal communication that attempts to inform customers and persuade them to purchase products in an exchange situation It is the most precise of all promotion methods It is the most effective way to form relationships with customers 1 2 3 Generally used for business to business products that are expensive 4 Personal selling is itself the most expensive costing about 400 per sales call 5 Sales personnel must be well trained regarding both their products and the selling process in general 6 Sales personnel should be aware of competitive products and be able to offer incentives that make their product more attractive to consumers 7 Personal selling is important in satisfying customers which have the potential to return in the future to buy new upgraded products 19 2 Elements of the Personal Selling Process The general selling process involves seven steps 1 Prospecting 19 2A Prospecting developing a database of potential customers Most salespeople prefer to use referrals recommendations from current customers to find prospects A customer s trust in and satisfaction with a salesperson influences his or her willingness to provide referrals 2 Pre approach 19 2B The salesperson must find and analyze information about each prospect s specific product needs current use of brands feelings about available brands and personal characteristics Review account histories and problems contacting other clients for information assessing credit histories and problems preparing sales presentations identifying product needs etc 3 Approach 19 2C Approach the manner in which a salesperson contacts a potential customer Create a favorable impression and build rapport with client 4 Making the Presentation 19 2D Intended to attract and hold the prospect s attention stimulate interest and spark a desire for the product Salespeople should match their influencing tactics such as information exchange recommendations threats promises ingratiation and inspirational appeals to their products Should invite the prospect to use or try the product Adaptation is important the salesperson should be able to alter their attitude in response to customer concerns or enthusiasm 5 Overcoming Objections 19 2E An effective salesperson usually seeks out a prospect s objections in order to address them If they are not apparent the salesperson cannot deal with them and the prospect may not buy Should anticipate objections and have counter objections ready 6 Closing the Sale 19 2F Closing the sage in the selling process when the salesperson asks the prospect to buy the product The salesperson might ask about desired colors sizes or delivery arrangements A salesperson should try to close at several points during the presentation because the prospect may be ready to buy An attempt to close the sale may result in objections thus closing can uncover hidden objections 7 Follow Up 19 2G The salesperson determines whether the order was delivered on time and installed properly if it was required This stage helps the salesperson create a solid relationship with the customer 19 3 Types of Salespeople Most business organizations use several different kinds of sales personnel There are three groups of salespeople 1 Order Getters 19 3A 2 Order Takers 19 3B Order getters are responsible for increasing sales by selling to new customers and increasing sales to present customers Current Customer Sales Seek more sales from existing customers by following up on previous sales Call on people and organizations that have purchased products from the firm before New Business Sales Locate prospects and convert them into buyers New customer sales are especially important in real estate insurance appliance and automobile industries Order takers primarily seek repeat sales generating the bulk of many firms total sales They take orders from customers to deliver a product in the proper quantity Most order takers handle orders for standardized products that are purchased routinely and do not require extensive sales efforts Inside Order Takers work in sales offices receive orders by mail telephone etc Field Order Takers travel to customers and develop relationships outside of the sales office Support Personnel facilitate selling but usually are not involved solely with making sales They locate prospects educate customers build goodwill and provide after sale services There are three common types Missionary Salespeople usually employed by manufacturers to sell the manufacturer s products to retailers Trade Salespeople direct much effort toward helping customers especially retail stores promote the product Set up displays restock shelves provide in store demonstrations etc Technical Salespeople give technical assistance to the organization s current customers advising them on product characteristics and applications system designs and installation procedures Usually has technical skills and or engineering degree 3 Support Personnel 19 3C 19 4A Team Selling Team Selling involves the salesperson joining with people from the firm s financial engineering and other functional areas and is used for selling particularly expensive and high tech business products o Members of the team bring their unique skills knowledge and resources to the selling process to help customers find solutions to their own business challenges o Advantageous in situations that require detailed knowledge of new complex and dynamic technologies 19 4B Relationship Selling Relationship Selling involves building mutually beneficial long term associations with a customer through regular communications over prolonged periods of time o Like team selling it is especially used in business to business marketing o Involves listening to customer needs and providing support after the sale o Long term connections result in sales throughout the relationship 19 5 Managing the Sales Force The sales force is responsible for generating sales revenue and set the firm s ethical conduct A positive ethical climate has been linked with decreased role stress improved job attitudes and job performance 19 5A Establishing Sales Force Objectives Sales objectives tell salespeople what they are expected to accomplish during a specified time period Usually developed both for the total salesforce and for the individual salespeople Sales objectives or quotas for individual salespeople are commonly stated in terms of dollar
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