check comments on the attached doc and rectify in less than an hour

Cengage Learning Australia hereby permits the usage and posting of our copyright controlled PowerPoint slide content for all courses wherein the associated text has been adopted. PowerPoint slides may be placed on course management systems that operate under a controlled environment (accessed restricted to enrolled students, instructors and content administrators). Cengage Learning Australia does not require a copyright clearance form for the usage of PowerPoint slides as outlined above.

Chapter 12

Personal selling

Learning objectives After studying this chapter you should understand and be able to explain: • the key advantages and disadvantages of personal

selling

• the principles underlying modern selling philosophy

• the importance of personal selling for building customer relationships

• the determinants of salesperson performance

Personal selling

• Selling occurs in many situations

– Politician

– Salvation army

– Job seekers

Personal selling Personal selling:

• is a form of person-to-person communication

• occurs when a salesperson works with prospective buyers and attempts to influence their purchase needs in the direction of the company’s products or services

• is based on creating strong relationships between the seller and the buyer

Personal selling advantages and disadvantages

Facilitates a high level of customer attention

Enables customisation of sales message to the

customer’s specific interests and needs

Provides immediate feedback during the sales presentation

Allows the salesperson to communicate a larger amount of

complex information than other methods

Greater ability to demonstrate a

product’s functioning and performance

characteristics

Potential to develop long-term relationship

with the customer

Personal selling advantages

More costly

Loss of control as staff often work alone and must use their own

initiative

Staff work under great pressure to attain

results

Potential for a lack of consistency related to

the marketing communications

objectives

Personal selling disadvantages

Build the sales process on a foundation of trust and mutual

agreement

A customer-driven atmosphere is

essential to long-term growth

Sales representatives should act as if they

were on the customer’s payroll

Emphasise after-sales service

Customise solutions to a customer’s

individual needs and problems

Salesperson professionalism and integrity is essential

Modern selling philosophy principles of consultative selling

How technology is shaping modern personal selling

Some of the main advantages offered by technology

• Less time and money spent of travelling

• Access to customers in any location

• Easier communication between seller and customer

• Instant information (‘email a quote in an hour’)

• Easier to monitor performance

• Easier to record and disseminate information on customers

Initiation

Enhancement

Maintenance

R e l a t i o n s h i p

Relationship marketing • Customer relationship management (CRM) involves:

Initiation, enhancement, and maintenance of mutually beneficial customer and partner long- term relationships through business intelligence-generated strategies based on the capture, storing, and analysis of information gathered from all customer and partner touch points and transaction processing systems.

Short-term activities

Feedback Gathering customer information Handling requests

Long-term perspective

Build relationships with the aim of making them long-term

CRM

The need for guanxi

• Guanxi is a general Chinese term used to describe relationships that may result in exchanges or favours of ‘connections’ that are beneficial for parties involved.

• An important part of guanxi is the idea that you do not create situations where others may ‘lose face’.

• Guanxi is a relationship, a development of trust.

Salesperson

Consumer Intermediaries B2B

Salesperson • Generally salespeople will deal with three different

entities.

• Each entity is separate, with its own unique demands; however, the chain needs to be seen holistically for best management.

Sales activities • Consumer sales

– Personal selling is important at decision-making time; poor sales techniques need to be avoided.

• Intermediary selling – Companies use large sales forces to inform and build relationships.

Intermediaries become more powerful as suppliers become more plentiful.

• Business-to-business – Due to the limited number of customers available in B2B, personal

selling makes sense.

Pre-approach

• Activities prior to seeing customer

• Background research

• Understanding what the customer may need

• Formulating a plan

Approach

• Seeing customers; generating interest in salesperson and product

• Building a rapport

• The approach may be judged in the first minutes of contact

Presentation

• Identify needs

• Present a solution

• Be a good listener

Demonstration

• Suitability of the product is essential

• Ensure performance is highlighted

• Demonstration types include: • models • physical product • charts, graphs • testimonials • simulations • photographs • videos

Performing the sales role

Negotiation

• Overcoming buyer resistance and addressing concerns

• The optimal outcome is where both parties ‘win’

Close

• Different types approaches to closing an order include:

Servicing the sale

• As important as any other step

• Helps develop longer-term relationships and provides additional value

Performing the sales role (cont.)

Salesperson performance • Salesperson performance is typically evaluated

quantitatively, e.g. by: – number of units sold – dollar volume – number of newly created accounts.

• No single factor may explain salesperson performance adequately. It may depend on: – the salesperson’s own resources – the nature of customer’s buying task – the customer–salesperson relationship.

Aptitude

• Interests, intelligence and personality characteristics

• Customer- oriented and empathetic, competitive

Skill level

• Individual’s learned proficiency at performing selling tasks (knowing how to make a sales presentation, resolve conflict)

Motivational level

• Amount of time and energy a person is willing to expend on job- related activities

• ‘Working hard’ and ‘working smart’

Six characteristics determining salesperson performance (1 – 3)

Role Perceptions

• Accurate perception of job roles

• Role conflict diminishes sales performance

Personal Characteristics

• Age, size, appearance, race, gender etc.

Adaptability

• Ability to adapt to situations • Adaptive selling

• Recognise need for different selling approaches in different situations

• Confidence in ability to use variety of selling approaches in different situations

• Confidence to alter selling tactic during a sales encounter

• Actually using different approaches in different situations

Six characteristics determining salesperson performance (4 – 6)

Video Case – Chicago Show

• Why are relationships (as opposed to transactions) with clients considered to be part of a sustainable business model?