Chapter 15 Personal Selling and Customer Service

1. Chapter 15 Personal Selling and Customer Service

2. At the end of this presentation, you should be able to: Understand the importance and nature of personal selling. Know the three basic sales tasks—order getting, order taking, and supporting—and what the various kinds of salespeople can be expected to do. Understand why customer service presents different challenges than other personal selling tasks. Know the different ways sales managers can organize salespeople so that personal selling jobs are handled effectively. Know how sales technology affects the way sales tasks are performed.

3. At the end of this presentation, you should be able to: Know what the sales manager must do, including selecting, training, and organizing salespeople to carry out the personal selling job. Understand how the right compensation plan can help motivate and control salespeople. Understand when and where to use the three types of sales presentations. Understand important new terms.

4. Marketing Strategy Planning Process

5. Strategy Planning and Personal Selling (Exhibit 15-1) CH 15: Personal Selling and Customer Service CH 14: Promotion Intro. to Integrated Marketing Communications CH 16: Advertising & Sales Promotion Importance of personal selling Personal selling tasks Strategy decisions Personal selling process

6. The Importance and Role of Personal Selling Helping to buy is good selling (meeting customer needs and building lasting relationships) Requires strategy decisions (number & kind of salespeople; technology to support how to compensate & motivate) Personal Selling Is Important Salespeople can be strategy planners (decisions to manipulate promotional mix elements to fit customer needs) Salespeople represent whole company (maybe all many customers will ever know about the company) Sales force provides market information (provide feedback to company about what customers think, feel, and want)

7. What Kinds of Personal Selling Are Needed? Order-Getting Order-Taking Basic Sales Tasks Supporting

8. Order Getters Develop New Business Relationships Order Getters (establishing business relationships with new customers) and Order-Getting (seeking possible buyers with organized sales presentation to sell a good, service, or idea) Producers’ Order Getters Find New Opportunities, Prospects, Accounts, Channels of distribution Wholesalers’ Order Getters (Salespeople for agent wholesalers are often order getters) Retail Order Getters Influence Buyer Behavior by moving through the product life cycle

9. Order Takers Nurture Relationships to Keep the Business Coming Order Takers and Order-Taking Producers’ Order Takers Train, Explain, & Collaborate Wholesalers’ Order Takers Don’t Get Orders But Keep Them Retail Order Takers Are Often Poor Sales Clerks

10. Supporting Sales Force Informs and Promotes in the Channel Technical Specialists (experts who know product applications; science or engineering backgrounds) Missionary Salespeople (increase sales by creating goodwill; providing training , & performing other activities) SupportingSalesTasks Customer Service Reps (resolve problems)

11. Checking Your Knowledge Julie Jones works for an investment firm. She calls on potential clients, introduces them to her firm, develops goodwill, and tries to set up contacts between customers and her firm’s account managers. Julie does not manage any accounts herself, but is using her current position as a training opportunity in hopes of moving up to an account manager position. Julie’s current position is that of a: order taker. order getter. missionary salesperson. sales manager. systems seller.

12. Customer Service Promotes the Next Purchase Not the product Part of promotion What Is Customer Service? Reps are customer advocates

13. The Right Structure Helps Assign Responsibility Different Markets, Different Tasks Team Selling Major Accounts Sales Force Sales Force Size and Workload Telemarketing Sales Territories

14. Interactive Exercise: Sales Force Workload

15. Sometimes Technology Can Substitute for Personal Selling (Exhibit 15-2)

16. An Example of Digital Self-Service

17. Information Technology Provides Tools to Do the Job New Software (e.g., spreadsheet analysis; electronic presentations) Great Changes in Handling Tasks New Hardware (e.g., personal digital assistants with wireless internet access; cellular phones) Good Selection and Training Needed Technology Can Be a Competitive Advantage What is Done vs. How It’s Done

18. Using Technology in Personal Selling © 2011 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

19. Sound Selection to Build a Sales Force

20. Training to Meet a Job Description Specific, Written Job Description Trained, Not Born All Salespeople Need Training

21. Training to Meet a Job Description Specific, Written Job Description Trained, Not Born (e.g., selling methods) All Salespeople Need Training (e.g., company policies and practices; product information; professional selling skills)

22. Selling Skills Can Be Learned

23. Compensating and Motivating Salespeople Level of Compensation Method of Payment Straight Salary Straight Commission Combination Plan

24. Interactive Exercise: Sales Force Compensation

25. Determining the Choice of the Pay Plan

26. Flexibility vs. Simplicity (Exhibit 15-3)

27. Checking Your Knowledge After spending two years in the insurance business, Anne McCauley decided to go to graduate school so that she could become qualified to teach high school English. Even though she had a reasonable amount of success in selling insurance, she could not deal with the variability in her income from month to month. She said, “In some months I earn all the money I need in a couple of days. In other months, I can work hard all month long and earn nothing.” She wanted a career with more regular earnings. It sounds as though Anne was on a _________ compensation plan in the insurance business. straight commission straight salary combination cost-plus

28. Key Steps in the Personal Selling Process (Exhibit 15-4) Prospect for new customers Evaluate needs of established customers and business opportunity Set effort priorities Select target customer Identify who influences purchase decision and/or who is involved in buyer-seller relationship • Preplan sales call and presentation(s) • Prepared presentation • Consultative selling approach • Selling formula approach

29. Checking Your Knowledge A seller of asset-management services specializes in marketing his services to people connected with the publishing business, such as authors, book distributors, and bookstore owners. He often gets leads by scanning newspapers and magazines, looking for new authors whose books are favorably reviewed. This searching takes place in the _________ stage of the personal selling process. follow-up sales presentation closing prospecting prequalification

30. Three Types of Sales Presentation Approaches May Be Useful ThreePresentationApproaches Prepared Approach Consultative Approach Selling Formula Approach

31. An Example of Consultative Selling © 2011 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

32. Key Steps in the Personal Selling Process (Exhibit 15-4) Prospect Set effort priorities Evaluate needs Select target customer Preplan sales call and presentation(s) • Make sales presentation • Create interest • Overcome problems/objections • Arouse desire Close the sale (get action)

33. Key Steps in the Personal Selling Process (Exhibit 15-4) Prospect Set effort priorities Evaluate needs Select target customer Preplan sales call and presentation(s) Feedback Make sales presentation Close the sale (get action) Follow up after sales call to establish relationship Follow-up after the purchase to maintain and enhance relationship

34. Checking Your Knowledge • Light-the-Way, Inc. sells standard household items such as • cleaners, trash bags, and light bulbs via telemarketing. The • products are made or packaged by people who are visually • impaired. The company donates a percentage of its sales • revenue to organizations that provide services to the blind. • The telephone sales presentation emphasizes this fact and • the quality of the merchandise. The salesperson making • the calls reads the same sales script to every potential • customer who is called. The only opportunity for the • customer to talk comes when the salesperson attempts to • close the sale. This is an example of a(n): • consultative selling approach. • selling formula approach. • prospecting approach. • systems selling approach. • prepared sales presentation.

35. Study Question 1 A salesperson who seeks possible buyers with a well-organized sales presentation designed to sell a good, service, or idea is called a(n) ____________.  A. InfluencerB. Order-getterC. Order takerD. Order-generatorE. Gatekeeper

36. Study Question 2 A Wendy's fast-food restaurant needs ______________ to serve its customers.  A. merchandisersB. order takersC. order gettersD. huckstersE. supporting salespeople

37. Study Question 3 A salesperson works for a producer, calls on intermediaries and their customers, tries to develop goodwill while stimulating demand, but doesn't take any orders for the producer's products. This salesperson is a(n):  A. Order getter.B. Technical specialist.C. Missionary salesperson.D. Order taker.E. Sales manager.

38. Study Question 4 Jim works for Sony. He doesn't take orders from customers, but he is extremely knowledgeable about the entire Sony product line and about how its specifications compare to the competition's products. He helps a regular Sony salesperson by providing details about how Sony's products work, and knows the customer applications for which the products are best suited. Jim is a:  A. Order getter.B. Technical specialist.C. Missionary salesperson.D. Order taker.E. Sales manager.

39. Study Question 5 A sales rep might use new software for ______________ to provide a competitive advantage:  A. sales forecasting.B. spreadsheet analysis.C. electronic presentations.D. customer contacts.E. all of the above.