SELLING AND SALESPEOPLE

2. SELLING AND SALESPEOPLE chapter 1 • What is selling? • Why should you learn selling even if you do not plan to be a salesperson? • What is the role of personal selling in a firm? • What are the different types of salespeople? • What are the rewards of a selling career? SOME QUESTIONS ANSWERED IN THIS CHAPTER ARE: 1-2 McGraw-Hill/Irwin

3. “I truly enjoy what I do and it is a very rewarding career. I am providing a win-win situation for both the employer and the candidate.” ~Heather CarrCareer Professionals 1-3 McGraw-Hill/Irwin

4. Why Learn About Personal Selling? • The principles of selling are useful to everyone, not just people with the title of salesperson. • Developing mutually beneficial, long-term relationships is vital to all of us. • People in business use selling principles all the time. Personal selling is a person-to-person business activity in which a salesperson uncovers and satisfies the needs of a buyer to the mutual, long-term benefit of both parties. 1-4 McGraw-Hill/Irwin

5. The Role of Salespeople in Business • Go-to-market strategies • Lifetime customer value • Multichannel strategy • Sales-force intensive organizations • One element in firms’ marketing communications program • Integrated marketing communications • Importance of advertising 1-5 McGraw-Hill/Irwin

6. Communication Methods 1-6 McGraw-Hill/Irwin

7. Communication Methods Strengths and Weaknesses • Firms have more control when using paid vs. unpaid methods • Publicity and word of mouth usually perceived as more credible • Advertising, Internet sites, and sales promotions give companies control over content and timing • Personal selling allows more flexibility • Personal selling is the most costly method of communication 1-7 McGraw-Hill/Irwin

8. Integrated Marketing Communications • Communication programs that coordinate the use of various vehicles to maximize the total impact of the program on customers • Stouffer’s example: • Salespeople • Advertising • Coupons • Taste testing • Publicity 1-8 McGraw-Hill/Irwin

9. What do Salespeople do? • Client relationship manager • Account team manager • Vendor and channel manager • Information provider to their firm 1-9 McGraw-Hill/Irwin

10. How Salespeople Spend Their Time Each Week 1-10 McGraw-Hill/Irwin

11. Selling and Distribution Channels A distribution channel is a set of people and organizations responsible for the flow of products and services from the producer to the ultimate user. 1-11 McGraw-Hill/Irwin

12. Selling and Distribution Channels Business-to-business channels 1-12 McGraw-Hill/Irwin

13. Business-to-Business Channels (continued) • Direct sales to a business customer • Manufacturers to manufacturers • Sales through distributors • Manufacturer to distributor • Referred to as trade salespeople • Missionary salespeople • “Sell” the product, but firms buy from distributors or other manufacturers 1-13 McGraw-Hill/Irwin

14. Selling and Distribution Channels (continued) Consumer channels 1-14 McGraw-Hill/Irwin

15. Consumer Channels (continued) • Direct sales person • Example: State Farm Insurance • Sales through retailers • Example: Revlon to Wal-Mart • Sales through distributors • Example: Revlon to owner-operating stores through distributors 1-15 McGraw-Hill/Irwin

16. Describing Sales Jobs • Stage of buyer-seller relationship • New or continuing • Salesperson’s role • Taking orders or creating new solutions • Importance of the purchase to the customer 1-16 McGraw-Hill/Irwin

17. Describing Sales Jobs (continued) • Location of salesperson – customer contact • Field or inside sales • The nature of the offering sold by the salesperson • Products or services • Salesperson’s role in securing customer commitment • Information or placing an order 1-17 McGraw-Hill/Irwin

18. The Sales Job Continuum 1-18 McGraw-Hill/Irwin

19. Examples of Sales Jobs • Best Buy retail salesperson • Hershey foods salesperson • Abbott Labs pharmaceutical salesperson • IBM Computer servers salesperson 1-19 McGraw-Hill/Irwin

20. Characteristics of Successful Salespeople • Self-motivated • Dependability and trustworthiness • Ethical sales behavior • Customer and product knowledge • Ability to use information technology 1-20 McGraw-Hill/Irwin

21. Characteristics of Successful Salespeople (continued) • Communication skills • Flexibility and agility • Creativity • Confidence and optimism • Emotional intelligence 1-21 McGraw-Hill/Irwin

22. Are Salespeople Born or Made? • The skills required to be a successful salesperson can be learned. • Innate characteristics such as personality traits, gender, and height are largely unrelated to sales performance. • Companies spend billions of dollars each year on training. 1-22 McGraw-Hill/Irwin

23. Rewards in Selling • Independence and responsibility • Financial rewards • Management opportunities 1-23 McGraw-Hill/Irwin

24. Average Annual Compensation for Salespeople by Years of Sales/Marketing Experience Source: Rebecca Aronauer, “Trends,” Sales and Marketing Management Magazine 159, no. 4 (May 2007), pp. 38-39 1-24

25. The Building Partnerships Model 1-25 McGraw-Hill/Irwin

26. Summary • You should study personal selling because we all use selling techniques. • Salespeople play a vital role in business activities. • Selling offers opportunities for financial rewards and opportunities. • Salespeople engage in a wide range of activities. • The most exciting, rewarding, and challenging sales positions involve building long-term, win-win relationships with customers. 1-26 McGraw-Hill/Irwin

27. Summary (continued) • The specific duties and responsibilities of salespeople depend on the type of selling position. • Sales jobs can be classified by the roles salespeople and their firms play in the channel of distribution. • Research on the characteristics of effective salespeople indicates that many different personality types can be successful in sales. 1-27 McGraw-Hill/Irwin