Marketing chapter 20a personal selling sales management

CHAPTER

PERSONAL
SELLING AND
SALES
MANAGEMENT

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

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AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
1. Discuss the nature and scope of
personal selling and sales
management in marketing.
2. Identify the different types of
personal selling.
3. Explain the stages in the personal
selling process.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
4. Describe the major functions of
sales management.

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

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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

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FIGURE 20-1 Personal selling and sales
management quiz

1. 20%

3. False

2. $350

4. 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

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FIGURE 20-A How salespeople create value
for customers

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

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Salesperson in the Operating Room
Why does Medtronic do this?

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

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Concept Check

1. What is personal selling?
A: Personal selling involves the twoway flow of communication between
a buyer and seller, often in a face-toface 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

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FIGURE 20-B Comparing order takers with
order getters

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

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FIGURE 20-2 How outside order-getting
salespeople spend their time each week

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

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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

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MARKETING NEWSNET
Creating and Sustaining Customer Value
through Cross-Functional
Team Selling

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

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Concept Check

1. What is the principal difference between
an order taker and an order getter?

A: An order taker processes routine orders or
reorders for products that were already sold by
the company. 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 their use of a product
or service.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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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

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THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS
•

Personal Selling Process – six
stages:
1.
2.
3.
4.
5.
6.

Prospecting
Preapproach
Approach
Presentation
Close
Follow-up
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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FIGURE 20-C Stages in the personal selling
process

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

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

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

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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

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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


An American Salesperson and
Japanese Customer
In the approach stage, what issues to address?

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

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