KOTCHA16.ppt 204KB Sep 15 2006 07:08:14 PM
16-1
16-1
PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong
Chapter
Chapter 16
16
Personal Selling and
Sales Management
Copyright 1999 Prentice Hall
The
The Nature
Nature of
of Personal
Personal Selling
Selling
16-2
16-2
• Involves an individual acting for a company by
performing one or more of the following activities:
–
–
–
–
Prospecting,
Communicating,
Servicing,
Information Gathering.
• The term salesperson covers a wide spectrum of
positions from:
– Order Taking (department store salesperson)
– Order Getting (someone engaged in creative selling)
– Missionary Selling (building goodwill or educating
buyers)
Copyright 1999 Prentice Hall
The
The Role
Role of
of the
the Sales
Sales Force
Force
• Personal Selling is effective because
salespeople can:
– probe customers to learn more about their problems,
– adjust the marketing offer to fit the special needs of
each customer,
– negotiate terms of sale,
– build long-term personal relationships with key
decision makers.
• The Sales Force serves as a critical link between
a company and its customers since they:
– represent the company to customers, and
– represent customers to the company.
Copyright 1999 Prentice Hall
16-3
16-3
Managing
Managing the
the Salesforce
Salesforce
Designing
Designing Salesforce
Salesforce Strategy
Strategy and
and Structure
Structure
Recruiting
Recruiting and
and Selecting
Selecting Salespeople
Salespeople
Training
Training Salespeople
Salespeople
Compensating
Compensating Salespeople
Salespeople
Supervising
Supervising Salespeople
Salespeople
Evaluating
Evaluating Salespeople
Salespeople
Copyright 1999 Prentice Hall
16-4
16-4
Designing
Designing Sales
Sales Force
Force Strategy
Strategy
and
and Structure
Structure
Types
Types of
of Sales
Sales Force
Force Structure
Structure
Territorial
Territorial
Exclusive
ExclusiveTerritory
Territoryto
to
Sell
Sellthe
theCompany’s
Company’s
Product
Product
Full
Product
Line
Full Product Line Sales Force
Sales ForceSells
SellsAlong
Along
Product
ProductLines
Lines
Customer
Customer
Sales
SalesForce
ForceSells
SellsAlong
Along
Customer/
Customer/Industry
IndustryLines
Lines
Complex
Complex
Combination
Combinationof
ofAbove
Above Types
Typesof
ofSales
SalesForce
ForceStructures
Structures
Copyright 1999 Prentice Hall
16-5
16-5
Designing
Designing Sales
Sales Force
Force Strategy
Strategy
and
and Structure
Structure
16-6
16-6
Sales
Sales Force
Force Size
Size
Other
Other Sales
Sales Force
Force Strategy
Strategy and
and Structure
Structure Issues
Issues
Who
WhoWill
WillBe
BeInvolved
Involvedin
inthe
the
Selling
SellingEffort?
Effort?
How
HowWill
WillSales
Salesand
andSales
SalesSupport
Support
People
PeopleWork
WorkTogether?
Together?
Outside
OutsideSales
SalesForce
Force
Inside
InsideSales
SalesForce
Force
Team
TeamSelling
Selling
Copyright 1999 Prentice Hall
Recruiting
Recruiting and
and Selecting
Selecting
Salespeople
Salespeople
Some
SomeCharacteristics
Characteristics
of
ofSalespeople
Salespeople
Recruiting
Recruiting Procedures
Procedures
Salesperson
SalespersonSelection
Selection
Process
Process
16-7
16-7
••Enthusiasm
Enthusiasmand
andSelf-Confidence
Self-Confidence
••Persistence
Persistence
••Initiative
Initiative
••Job
JobCommitment
Commitment
••Current
CurrentSalespeople
Salespeople
••Employment
EmploymentAgencies
Agencies
••Classified
Ads
Classified Ads
••College
CollegeCampuses
Campuses
••Sales
SalesAptitude
Aptitude
••Analytical
Analytical&&Organizational
OrganizationalSkills
Skills
••Personality
Traits
Personality Traits
••Other
OtherCharacteristics
Characteristics
Copyright 1999 Prentice Hall
Training
Training Salespeople
Salespeople
16-8
16-8
The Average Sales Training Program lasts for Four Months and
Has the Following Goals:
Help
Help Salespeople
Salespeople Know
Know && Identify
Identify
With
With the
the Company
Company
Learn
Learn How
How the
the Products
Products Work
Work
Learn
LearnAbout
About Competitors’
Competitors’
and
and Customers’
Customers’Characteristics
Characteristics
Learn
Learn How
How to
to Make
Make
Effective
Effective Presentations
Presentations
Understand
Understand Field
Field Procedures
Procedures
and
and Responsibilities
Responsibilities
Copyright 1999 Prentice Hall
Compensating
Compensating Salespeople
Salespeople
16-9
16-9
Sales Force Compensation Plans Can Both Motivate
Salespeople and Direct Their Activities.
Salary
YC
A
P
Benefits
C
HE
K
Components
of
Compensation
Commission
Copyright 1999 Prentice Hall
Bonus
Supervising
Supervising Salespeople
Salespeople
Directing
Salespeople
16-10
16-10
Motivating
Salespeople
• Identify Customer Targets
& Set Call Norms
• Organizational Climate
• Develop Prospect Targets
• Positive Incentives
• Sales Quotas
• Use Sales Time Efficiently
– Annual Call Schedule
– Time-and-Duty Analysis
– Sales Force Automation
– Honors
– Awards
– Merchandise/ Cash
– Trips
Copyright 1999 Prentice Hall
How
How Salespeople
Salespeople Spend
Spend Their
Their Time
Time
Administrative
Service Calls
Tasks
12%
17%
Telephone
Selling
21%
Face-to-Face
Selling
30%
Waiting/
Traveling
20%
Copyright 1999 Prentice Hall
16-11
16-11
Companies
Look For Ways
to Increase the
Amount of
Time
Salespeople
Spend Selling.
Evaluating
Evaluating Salespeople
Salespeople
Expense
Expense
Reports
Reports
Call
Call
Reports
Reports
16-12
16-12
Sales
Sales
Report
Report
Sources
Sources
of
of
Information
Information
Annual
Annual
Territory
Territory
Marketing
Marketing Plan
Plan
Copyright 1999 Prentice Hall
Work
Work
Plan
Plan
Steps
Steps in
in the
the Selling
Selling Process
Process
16-13
16-13
Step
Step1.
1. Prospecting
Prospectingand
andQualifying
Qualifying
Identifying and Screening For
Qualified Potential Customers.
Step
Step 2.
2. Preapproach
Preapproach
Learning As Much As Possible
About a Prospective Customer
Before Making a Sales Call.
Step
Step3.
3. Approach
Approach
Knowing How to Meet the
Buyer to Get the Relationship
Off to a Good Start.
Step
Step4.
4.Presentation/
Presentation/Demonstration
Demonstration
Copyright 1999 Prentice Hall
Telling the Product “Story” to
the Buyer, and Showing the
Product Benefits.
Steps
Steps in
in the
the Selling
Selling Process
Process
Step
Step5.
5. Handling
HandlingObjections
Objections
Step
Step 6.
6. Closing
Closing
16-14
16-14
Seeking Out, Clarifying, and
Overcoming Customer
Objections to Buying.
Asking the Customer for the
Order.
Step
Step7.
7. Follow-Up
Follow-Up
Following Up After the Sale to
Ensure Customer Satisfaction
and Repeat Business.
Copyright 1999 Prentice Hall
Relationship
Relationship Marketing
Marketing
• Process of creating, maintaining,
and enhancing strong, value-laden
relationships with customers and
other stakeholders.
• Based on the idea that important
accounts need focused and
continuous attention.
Copyright 1999 Prentice Hall
16-15
16-15
16-1
PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong
Chapter
Chapter 16
16
Personal Selling and
Sales Management
Copyright 1999 Prentice Hall
The
The Nature
Nature of
of Personal
Personal Selling
Selling
16-2
16-2
• Involves an individual acting for a company by
performing one or more of the following activities:
–
–
–
–
Prospecting,
Communicating,
Servicing,
Information Gathering.
• The term salesperson covers a wide spectrum of
positions from:
– Order Taking (department store salesperson)
– Order Getting (someone engaged in creative selling)
– Missionary Selling (building goodwill or educating
buyers)
Copyright 1999 Prentice Hall
The
The Role
Role of
of the
the Sales
Sales Force
Force
• Personal Selling is effective because
salespeople can:
– probe customers to learn more about their problems,
– adjust the marketing offer to fit the special needs of
each customer,
– negotiate terms of sale,
– build long-term personal relationships with key
decision makers.
• The Sales Force serves as a critical link between
a company and its customers since they:
– represent the company to customers, and
– represent customers to the company.
Copyright 1999 Prentice Hall
16-3
16-3
Managing
Managing the
the Salesforce
Salesforce
Designing
Designing Salesforce
Salesforce Strategy
Strategy and
and Structure
Structure
Recruiting
Recruiting and
and Selecting
Selecting Salespeople
Salespeople
Training
Training Salespeople
Salespeople
Compensating
Compensating Salespeople
Salespeople
Supervising
Supervising Salespeople
Salespeople
Evaluating
Evaluating Salespeople
Salespeople
Copyright 1999 Prentice Hall
16-4
16-4
Designing
Designing Sales
Sales Force
Force Strategy
Strategy
and
and Structure
Structure
Types
Types of
of Sales
Sales Force
Force Structure
Structure
Territorial
Territorial
Exclusive
ExclusiveTerritory
Territoryto
to
Sell
Sellthe
theCompany’s
Company’s
Product
Product
Full
Product
Line
Full Product Line Sales Force
Sales ForceSells
SellsAlong
Along
Product
ProductLines
Lines
Customer
Customer
Sales
SalesForce
ForceSells
SellsAlong
Along
Customer/
Customer/Industry
IndustryLines
Lines
Complex
Complex
Combination
Combinationof
ofAbove
Above Types
Typesof
ofSales
SalesForce
ForceStructures
Structures
Copyright 1999 Prentice Hall
16-5
16-5
Designing
Designing Sales
Sales Force
Force Strategy
Strategy
and
and Structure
Structure
16-6
16-6
Sales
Sales Force
Force Size
Size
Other
Other Sales
Sales Force
Force Strategy
Strategy and
and Structure
Structure Issues
Issues
Who
WhoWill
WillBe
BeInvolved
Involvedin
inthe
the
Selling
SellingEffort?
Effort?
How
HowWill
WillSales
Salesand
andSales
SalesSupport
Support
People
PeopleWork
WorkTogether?
Together?
Outside
OutsideSales
SalesForce
Force
Inside
InsideSales
SalesForce
Force
Team
TeamSelling
Selling
Copyright 1999 Prentice Hall
Recruiting
Recruiting and
and Selecting
Selecting
Salespeople
Salespeople
Some
SomeCharacteristics
Characteristics
of
ofSalespeople
Salespeople
Recruiting
Recruiting Procedures
Procedures
Salesperson
SalespersonSelection
Selection
Process
Process
16-7
16-7
••Enthusiasm
Enthusiasmand
andSelf-Confidence
Self-Confidence
••Persistence
Persistence
••Initiative
Initiative
••Job
JobCommitment
Commitment
••Current
CurrentSalespeople
Salespeople
••Employment
EmploymentAgencies
Agencies
••Classified
Ads
Classified Ads
••College
CollegeCampuses
Campuses
••Sales
SalesAptitude
Aptitude
••Analytical
Analytical&&Organizational
OrganizationalSkills
Skills
••Personality
Traits
Personality Traits
••Other
OtherCharacteristics
Characteristics
Copyright 1999 Prentice Hall
Training
Training Salespeople
Salespeople
16-8
16-8
The Average Sales Training Program lasts for Four Months and
Has the Following Goals:
Help
Help Salespeople
Salespeople Know
Know && Identify
Identify
With
With the
the Company
Company
Learn
Learn How
How the
the Products
Products Work
Work
Learn
LearnAbout
About Competitors’
Competitors’
and
and Customers’
Customers’Characteristics
Characteristics
Learn
Learn How
How to
to Make
Make
Effective
Effective Presentations
Presentations
Understand
Understand Field
Field Procedures
Procedures
and
and Responsibilities
Responsibilities
Copyright 1999 Prentice Hall
Compensating
Compensating Salespeople
Salespeople
16-9
16-9
Sales Force Compensation Plans Can Both Motivate
Salespeople and Direct Their Activities.
Salary
YC
A
P
Benefits
C
HE
K
Components
of
Compensation
Commission
Copyright 1999 Prentice Hall
Bonus
Supervising
Supervising Salespeople
Salespeople
Directing
Salespeople
16-10
16-10
Motivating
Salespeople
• Identify Customer Targets
& Set Call Norms
• Organizational Climate
• Develop Prospect Targets
• Positive Incentives
• Sales Quotas
• Use Sales Time Efficiently
– Annual Call Schedule
– Time-and-Duty Analysis
– Sales Force Automation
– Honors
– Awards
– Merchandise/ Cash
– Trips
Copyright 1999 Prentice Hall
How
How Salespeople
Salespeople Spend
Spend Their
Their Time
Time
Administrative
Service Calls
Tasks
12%
17%
Telephone
Selling
21%
Face-to-Face
Selling
30%
Waiting/
Traveling
20%
Copyright 1999 Prentice Hall
16-11
16-11
Companies
Look For Ways
to Increase the
Amount of
Time
Salespeople
Spend Selling.
Evaluating
Evaluating Salespeople
Salespeople
Expense
Expense
Reports
Reports
Call
Call
Reports
Reports
16-12
16-12
Sales
Sales
Report
Report
Sources
Sources
of
of
Information
Information
Annual
Annual
Territory
Territory
Marketing
Marketing Plan
Plan
Copyright 1999 Prentice Hall
Work
Work
Plan
Plan
Steps
Steps in
in the
the Selling
Selling Process
Process
16-13
16-13
Step
Step1.
1. Prospecting
Prospectingand
andQualifying
Qualifying
Identifying and Screening For
Qualified Potential Customers.
Step
Step 2.
2. Preapproach
Preapproach
Learning As Much As Possible
About a Prospective Customer
Before Making a Sales Call.
Step
Step3.
3. Approach
Approach
Knowing How to Meet the
Buyer to Get the Relationship
Off to a Good Start.
Step
Step4.
4.Presentation/
Presentation/Demonstration
Demonstration
Copyright 1999 Prentice Hall
Telling the Product “Story” to
the Buyer, and Showing the
Product Benefits.
Steps
Steps in
in the
the Selling
Selling Process
Process
Step
Step5.
5. Handling
HandlingObjections
Objections
Step
Step 6.
6. Closing
Closing
16-14
16-14
Seeking Out, Clarifying, and
Overcoming Customer
Objections to Buying.
Asking the Customer for the
Order.
Step
Step7.
7. Follow-Up
Follow-Up
Following Up After the Sale to
Ensure Customer Satisfaction
and Repeat Business.
Copyright 1999 Prentice Hall
Relationship
Relationship Marketing
Marketing
• Process of creating, maintaining,
and enhancing strong, value-laden
relationships with customers and
other stakeholders.
• Based on the idea that important
accounts need focused and
continuous attention.
Copyright 1999 Prentice Hall
16-15
16-15