1 / 25

Chapter 15: Personal Selling

Chapter 15: Personal Selling. Sales Is Important!. Weak Revenues = No Firm Sales is often the largest marketing expense Selling mistakes increase costs and lose revenues 1 in 10 workers are in sales Sales is the #1 job of AU grads Salespeople can earn very high incomes

solana
Download Presentation

Chapter 15: Personal Selling

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Chapter 15: Personal Selling

  2. Sales Is Important! • Weak Revenues = No Firm • Sales is often the largest marketing expense • Selling mistakes increase costs and lose revenues • 1 in 10 workers are in sales • Sales is the #1 job of AU grads • Salespeople can earn very high incomes • Pay is often a function of risk-return

  3. Personal Sales works better than Ads • Salespeople get more attention than ads • Salespeople can adjust to cultural or situational factors • Salespeople can ask questions • Salespeople can adjust to customer questions • Salespeople can take the order - now! • Salespeople can act to make sure the customer is satisfied - fix problems

  4. Salespeople are marketing managers for their territory • Identify which customers to aim at • Which products to emphasize • Which customers to call on and work hardest • How to use promotions/sales support money • When and how to adjust prices • Good salespeople help the customer buy.

  5. Critical Selling Skills • Product/marketing knowledge • Listening • Asking good questions • Asking for the order • Being Organized • Being able to handle failure • Keeping promises and being dependable

  6. Order-Getting ?????? ?????? ?????? ?????? ?????? Order-Taking Supporting Basic Sales Tasks 15-4

  7. Supporting Salespeople • MISSIONARY SALESPEOPLE • Supporting salespeople who work for producers—calling on their middlemen and the middlemen's customers • TECHNICAL SPECIALISTS • Supporting salespeople who provide technical assistance to order-oriented salespeople

  8. Business Telemarketing • Growing fast because of cost per contact ($250 vs $1 - $20 per contact). • Very helpful to identify prospects who are ready to buy • Calls & letters can often handle routine tasks without the cost of a face to face call • Remember, time is a critical resource for salespeople!

  9. Consumer Telemarketing • Outbound Calling Industry Killed by “Do Not Call” legislation • Only exceptions are for charities & politicians • Inbound calls still very important to many companies

  10. Limitations of Telemarketing • 1] Very difficult to sell complex products • 2] Very difficult to sell when there are multiple decision makers • 3] Very difficult to sell when customer needs are complex • However, telemarketing can often cover the basics and a face to face call can close the deal.

  11. Effective Telephone Communication • 1. Keep mouth clear and voice wet • 2. Smile! • 3. Have a long cord so you can use your normal gestures • 4. Eliminate distractions. Clear desk. • 5. Chose effective words. No jargon. • 6. Confirm any action by reading it back. Also read back critical information • 7. Be an active listener

  12. Some Ways to Set Sales Territories • Geographic areas • Customer types • Account size • Product to be sold • Any combination of the above

  13. Salesforce Turnover • Salesforce Turnover = • (# of salespeople who leave the company in a time period) / (Total Number of Salespeople)

  14. Salesforce Turnover Example • A company starts the year with 100 salespeople • During the year, 5 are fired, 6 leave the company and 1 dies. Another salesperson has a heart attack and is on medical leave for 90 days. • 12 people are hired during the year. • What is the salesforce turnover?

  15. Turnover Answer • 5 Fired + 6 Leave + 1 death / 100 = • 12% turnover

  16. Salesforce Turnover is Costly • Not covering customers • Not covering them well (stretching) • Hiring Costs • Most firms underspend on hiring costs or just “make do” with weak people. This is very costly in the long term.

  17. Very Low Turnover May Indicate • Salesforce is over paid • Salesforce is not challenged

  18. Sales Recruiting • A written job description lays the groundwork—by specifying what tasks the salesperson needs to be able to do • Commonly used selection tools are best when used in combination • multiple interviews—with several different people • personnel and psychological tests • background checks

  19. Training • Initial and ongoing training can help both experienced and inexperienced salespeople • company policies and practices • product information • selling techniques (and customer knowledge)

  20. Sales Compensation • 3 Main Types • Straight Salary • Straight Commission • Combination Plan • They differ in: • Degree of fixed costs • Motivation • Control over salesperson activities

  21. Sales Compensation Example • Company 1, 2 & 3 each have 10 salespeople • Company 1 pays each salesperson $80,000 in salary and benefits annually • Company 2 pays salespeople a flat 4% commission on sales • Company 3 pays their salespeople $30,000 in salary and a 2% commission • What is total salesforce compensation for each company at sales of $10, $20 and $40 million?

  22. $10 Million in Sales • Company 1 = 10 salespeople x $80,000 each = $800,000 • Company 2 = $10 million in sales x .04 = $400,000 • Company 3 = 10 salespeople x $30,000 and $10 million in sales x .02 = $500,000

  23. $20 million in Sales • Company 1 = $800,000 • Company 2 = $20 million x .04 = $800,000 • Company 3 = $300,000 + ($20 million x .02) = $700,000

  24. $40 million in Sales • Company 1 = $800,000 • Company 2 = $1,600,000 • Company 3 = $1,100,000

  25. Prospecting • Prospecting = following all the leads in the target market to identify potential clients (415) • Salespeople who are effective at prospecting: • Follow up on inquiries quickly (when customer is “Ready to buy” • Rapidly Identify: buying center, decision makers, ability to pay, customer needs

More Related