Module 7
Lucy Bell
Chapter13PowerPointSlidessg.pptxChapter 13
Sales and Sales Management
Chapter 13 Learning Objectives
Understand the range of alternative sales positions.
Know the sequence of the personal sales process.
Differentiate between alternative sales approaches.
Recognize the elements in the management of a sales force.
Introduction
Personal selling
Historically involved direct, face-to-face communication between buyer and seller
Now occurs via telephone, video conferencing, and computer networks
Introduction
Personal selling (cont.)
Defined as the phenomenon of human-driven interaction between and within individuals or organizations in order to bring about economic exchange within a value-creation context
Sales people are multifaceted.
Conduct relationship-building activities, market research, etc.
Learning Objective 1
Types of sales jobs
New business selling
Trade selling
Missionary selling
Technical selling
e-detailing increasing due to cost and acceptance by customers
Variations of e-detailing (virtual live, on-line portal, scripted e-detailing)
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Discuss each type with the student, see pp. 346–347.
Learning Objective 1
The legal challenge to sales
Academic detailing—trained health care professionals calling on physicians
Suspicion of salespeople
Knowledge of clinical people
Some states are moving in the direction of requiring academic detailing.
Learning Objective 2
The personal sales process
Prospecting
Preapproach
Approach
Presentation
Close
Servicing
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FIGURE 13-1 The Sales Process
Learning Objective 2
The personal sales process (cont.)
Prospecting
Targeting leads
Cold calling
Qualifying prospects
Does the prospect have a need for my service?
Can I make the people responsible for buying so aware of that need that I can make the sale?
Will the sale be profitable to my company?
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Learning Objective 2
The personal sales process (cont.)
Preapproach
Information-gathering step, who is the decision maker?
Deal with gatekeepers
Approach
Initial meeting with the buyer
Salesperson attempts to generate interest.
Establishing trust and credibility
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Learning Objective 2
The personal sales process (cont.)
Presentation
Sales pitch
Handling buyer objections
Timing objections
Price objections
Competitive objections
Logical objections
Psychological objections
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Discussion of each type of objection, pp. 349–350.
Learning Objective 2
The personal sales process (cont.)
Presentation
Handling buyer objections
Agree and counter
List advantages and disadvantages
Positive conversion
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Discussion of each method of overcoming objection, p. 350.
Learning Objective 2
The personal sales process (cont.)
Close
Asking the buyer for a commitment to purchase
Trial close—getting to yes during the presentation
Assumptive close—asking the buyer to choose payment terms, assuming there is a sale
Servicing
Follow-up and service, relationship building
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Learning Objective 3
Sales approaches
Stimulus-response approach
Selling formula
Need satisfaction method
Consultative selling
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Learning Objective 3
Sales approaches (cont.)
Stimulus-response approach
Following a canned presentation
Salesperson dominates communication
Best for low-priced products
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Learning Objective 3
Sales approaches (cont.)
Selling formula
Series of steps—AIDA
Attention, Interest, Desire, Action
Add Conviction: Desire + Action
More customer involvement
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Learning Objective 3
Sales approaches (cont.)
Need satisfaction method
Most marketing oriented
Need development
Identify problems.
Need awareness
Make sure the customer acknowledges same problems.
Need fulfillment
How company can meet customer’s needs
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Learning Objective 3
Sales approaches (cont.)
Consultative selling
Problem identification
Salesperson is a consultant with defined area of expertise.
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Learning Objective 4
Managing the sales function
Sales force organization
Geographic—homogeneous customer base
Product—useful for product specialization
Customer—focused on a solutions strategy
Sales force size
Workload method
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Learning Objective 4
Recruitment and selection
Internet has helped screening of candidates.
Firms increasingly using Internet for recruiting.
Interview method is structured or unstructured.
Compensation
Plans take one of several forms (straight, commission, combination).
Summary
Personal selling is an ingredient of the promotional mix. Sales positions involve a range of sales functions.
There are six steps in the personal sales process: prospecting, preapproach, approach, presentation, close, and servicing.
The need satisfaction sales method is the most marketing oriented because it focuses on the customer’s problems.
Summary (cont.)
With the consultative selling method, the salesperson acts as a problem solver.
Sales forces can be organized geographically, by product, or by customer type.
A common method for determining the size of the sales force is the workload method, which estimates the work effort required to serve the market.
Summary (cont.)
Prior to recruitment and selection of the salesperson, the company should conduct a job analysis.
Sales force compensation can be either straight salary, commission, or a combination plan.
Sales staff evaluation should be based on input measures and output measures.
