LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 20, YOU SHOULD BE ABLE TO:
Discuss the nature and scope of personal selling and sales management in marketing.
Identify the different types of personal selling.
Explain the stages in the personal selling process.
Describe the major functions of sales management.
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McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.LO2Identify the different types of personal selling.Explain the stages in the personal selling process.LO3LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 20, YOU SHOULD BE ABLE TO:Discuss the nature and scope of personal selling and sales management in marketing.LO1Describe the major functions of sales management.LO4MEET TODAY’S SALES PROFESSIONALSCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENTLO1Personal SellingSales ManagementSelling Happens Almost EverywherePersonal Selling in Marketing“Everyone Lives by Selling Something”Cambridge SalesFIGURE 20-1 Personal selling and sales management quiz. What are your answers?SCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENTCREATING CUSTOMER VALUELO1Salespeople:Identify Creative Solutionsto Customer ProblemsEase the Customer Buying ProcessMake the After-the-Sale Follow-UpRelationship SellingPartnership SellingEnterprise SellingSCOPE AND SIGNIFICANCE OF PERSONAL SELLING AND SALES MANAGEMENTCREATING CUSTOMER VALUELO1THE MANY FORMS OF PERSONAL SELLINGORDER TAKINGLO2Order TakerOutside Order TakersInside Order TakersOrder ClerksSalesclerksInboundTelemarketingOutside Order GettersInside Order GettersOutbound TelemarketingTHE MANY FORMS OF PERSONAL SELLINGORDER GETTINGLO2Order GetterFIGURE 20-2 How outside order-getting salespeople spend their time each weekFIGURE 20-A Comparing order takers and order gettersMissionary SalespeopleSales EngineerTeam SellingConference SellingSeminar SellingTHE MANY FORMS OF PERSONAL SELLINGCUSTOMER SALES SUPPORT PERSONNELLO2MARKETING MATTERSCreating and Sustaining Customer Value Through Cross-Functional Team SellingLO2FIGURE 20-3 Stages and objectives of the personal selling processTHE PERSONAL SELLING PROCESS:BUILDING RELATIONSHIPSPROSPECTINGLO3Personal Selling ProcessProspecting StageTHE PERSONAL SELLING PROCESS:BUILDING RELATIONSHIPSPROSPECTINGLO3ProspectLeadQualified ProspectCold Canvassing/Cold CallingTypes of ProspectsTHE PERSONAL SELLING PROCESS:BUILDING RELATIONSHIPSPREAPPROACHLO3Preapproach StageWhen to ContactInternational CustomsTHE PERSONAL SELLING PROCESS:BUILDING RELATIONSHIPSAPPROACHLO3Approach StageGesturesCustomsTHE PERSONAL SELLING PROCESS:BUILDING RELATIONSHIPSPRESENTATIONLO3Presentation StageTHE PERSONAL SELLING PROCESS:BUILDING RELATIONSHIPSPRESENTATIONLO3FormatsStimulus-Response PresentationSuggestive SellingTHE PERSONAL SELLING PROCESS:BUILDING RELATIONSHIPSPRESENTATIONLO3Formula Selling PresentationCanned Sales PresentationFormatsTHE PERSONAL SELLING PROCESS:BUILDING RELATIONSHIPSPRESENTATIONLO3Need-Satisfaction PresentationAdaptive SellingConsultative SellingFormatsMARKETING MATTERSImagine ThisPutting the Customerinto Customer Solutions!LO3THE PERSONAL SELLING PROCESS:BUILDING RELATIONSHIPSPRESENTATIONHandling ObjectionsAcknowledge and ConvertPostponeAgree and NeutralizeAcceptanceDenialIgnoreLO3THE PERSONAL SELLING PROCESS:BUILDING RELATIONSHIPSCLOSEClose StageLO3Assumptive CloseTrial CloseUrgency CloseFinal CloseTHE PERSONAL SELLING PROCESS:BUILDING RELATIONSHIPSFOLLOW-UPFollow-up StageLO3Repeat SalesReferralsFIGURE 20-4 The sales management process involves sales plan formulation, implementation, and evaluationTHE SALES MANAGEMENT PROCESSSALES PLAN FORMULATIONLO4Sales PlanScopeSetting ObjectivesOutput-RelatedInput-RelatedBehaviorally-RelatedCompetition-RelatedServe as MetricsMAKING RESPONSIBLE DECISIONSEthics of Asking Customers About CompetitorsLO4THE SALES MANAGEMENT PROCESSSALES PLAN FORMULATIONLO4Own Salesforce vs. Independent AgentsOrganizing the SalesforceFIGURE 20-5 A break-even chart for comparing a company salesforce and independent agentsTHE SALES MANAGEMENT PROCESSSALES PLAN FORMULATIONLO4Structure of the SalesforceOrganizing the SalesforceCustomerProductGeographyKey Account ManagementFIGURE 20-6 Organizing the salesforce by customer, product, and geographyFIGURE 20-6A Organizing the salesforce by customerFIGURE 20-6B Organizing the salesforce by productFIGURE 20-6C Organizing the salesforce by geographyTHE SALES MANAGEMENT PROCESSSALES PLAN FORMULATIONLO4Workload MethodAccount Management PoliciesOrganizing the SalesforceFIGURE 20-7 An account management policy grid grouping customers accordingto the level of opportunity and a firm’s competitive sales positionTHE SALES MANAGEMENT PROCESSSALES PLAN IMPLEMENTATIONLO4Job AnalysisSalesforce Recruitment and SelectionJob DescriptionEmotional IntelligenceDiversityGOING ONLINEWhat is Your Emotional Intelligence or EQ?Self-Motivation SkillsEmotional Intelligence =Self-AwarenessManaging One’s EmotionsEmpathySocial SkillsLO4THE SALES MANAGEMENT PROCESSSALES PLAN IMPLEMENTATIONLO4Salesforce TrainingStraight SalaryStraight CommissionCombinationSalesforce Motivation and CompensationNonmonetaryTHE SALES MANAGEMENT PROCESSSALESFORCE EVALUATIONLO4Quantitative AssessmentsSales QuotaSubjective MeasuresBehavioral EvaluationCustomer SatisfactionUSING MARKETING DASHBOARDSTracking Salesperson Performance atMoore Chemical & Sanitation Supply, Inc.LO4THE SALES MANAGEMENT PROCESSSALESFORCE AUTOMATION AND CUSTOMER RELATIONSHIP MANAGEMENTLO4Salesforce Automation (SFA)Salesforce TechnologySalesforce CommunicationHome OfficesInternetXEROX: BUILDING CUSTOMER RELATIONSHIPS THROUGH PERSONAL SELLINGVIDEO CASE 20VIDEO CASE 20XEROX1. Why was Anne Mulcahy’s experience as a sales representative an importantpart of Xerox’s growth in recent years?VIDEO CASE 20XEROX2. How did the sales approach change after Mulcahy becamethe CEO of Xerox?VIDEO CASE 20XEROX3. (a) How does Xerox create customer value though its personal selling process?(b) How does Alison Capossela provide solutions for Xerox customers?VIDEO CASE 20XEROX4. Why is the Xerox training program so important to the company’s success?Personal SellingPersonal selling is the two-way flow of communication betweena buyer and seller, often in aface-to-face encounter, designed to influence a person’s or group’s purchase decision.Sales ManagementSales management consists of planning the selling program and implementing and evaluating the personal selling effort of the firm.Relationship SellingRelationship sellingis the practice of building tiesto customers based on a salesperson’s attention and commitment to customer needs over time.Partnership SellingPartnership selling is the practice whereby buyers and sellers combine their expertise and resources to create customized solutions, commit to joint planning, and share customer, competitive, and company information for their mutual benefit, and ultimately the customer.Also called enterprise selling.Order TakerAn order taker processes routine orders or reorders for products that were already sold by the company.Order GetterAn 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 customers’ use of a product or service.Team SellingTeam selling is the practiceof using an entire team of professionals in selling to and servicing major customers.Personal Selling ProcessThe personal selling process consists of sales activities occurring before, during, and after the saleitself, consisting of six stages:(1) prospecting, (2) preapproach,(3) approach, (4) presentation,(5) close, and (6) follow-up).Stimulus-Response PresentationA stimulus-response presentation is a presentation format that assumes that given the appropriate stimulus by a salesperson, the prospect will buy.Formula Selling PresentationA formula selling presentationis a presentation format that consists of information thatmust be provided in an accurate, thorough, and step-by-step manner to inform the prospect.Need-Satisfaction PresentationA need-satisfaction presentation is a presentation format that emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers.Adaptive SellingAdaptive selling is a need-satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when toask for more information.Consultative SellingConsultative selling is aneed-satisfaction presentation format that focuses on problem identification, where the salesperson serves as anexpert on problem recognitionand resolution.Sales PlanA sales plan is a statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed.Key Account ManagementKey account management isthe practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships.Workload MethodThe workload method is a formula-based method for determining thesize of a salesforce that integratesthe number of customers served,call frequency, call length, and available selling time to arrive at a figure for the salesforce size.Account Management PoliciesAccount management policies specify whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out.Emotional IntelligenceEmotional intelligence is the ability to understand one’s own emotions and the emotions of people with whom one interacts on a daily basis.A sales quota consists of specific goals assigned to a salesperson, sales team, branch sales office,or sales district for a stated time period.Sales QuotaSalesforce Automation (SFA)Salesforce automation (SFA)is the use of computer, information, communication, and Internet technologies to makethe sales function more effective and efficient.