PERSONAL SELLING AND SALES MANAGEMENT

1 Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000 MARKETING, 6/eMARKETING, 6/eBERKOWITZ KERIN HARTLEY RUDELIUSI rwin/McGraw-HillC H A P T E R T W E N T Y -O N EPERSONAL SELLING AND SALES MANAGEMENTI rwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000 MARKETING, 6/eMARKETING, 6/eBERKOWITZ KERIN HARTLEY RUDELIUSAFTER READING THIS CHAPTER YOU SHOULDAFTER READING THIS CHAPTER YOU SHOULDBE ABLE TO:BE ABLE TO: Recognize different types of PERSONAL SELLING . Describe the stages in the PERSONAL SELLING process.

2 Specify the functions and tasks in the SALES MANAGEMENT process. Determine whether a firm should use manufacturer s representatives or a company SALES force and the number of people needed in a company s SALES force. Understand how firms recruit, select, train, motivate, compensate, and evaluate salespeople. Describe recent applications of SALES force The McGraw-Hill Companies, Inc., 2000 MARKETING, 6/eMARKETING, 6/eBERKOWITZ KERIN HARTLEY RUDELIUSPP21PP21--AA Dun & Bradstreet: SELLING Information in the AA Dun & Bradstreet: SELLING Information in the Information AgeInformation Age SELLING information is a demanding task, even for D&B, which is a master of database managementand marketing, with a database of more than 11 million companies.

3 However, D&B is finding that its market has become more competitive, especially with so much free data via the Internet. D&B employs 600 field salespeople, who must demonstrate how much better off credit managers and marketing executives will be by using D&B s The McGraw-Hill Companies, Inc., 2000 MARKETING, 6/eMARKETING, 6/eBERKOWITZ KERIN HARTLEY RUDELIUSPP21PP21--BB PERSONAL SellingBB PERSONAL SELLING PERSONAL SELLING involvesa two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person s or group s purchase decision.

4 With advances in telecommunications, however, PERSONAL SELLING takes place overthe telephone, through video teleconfer-encingand interactive computer links between buyers and The McGraw-Hill Companies, Inc., 2000 MARKETING, 6/eMARKETING, 6/eBERKOWITZ KERIN HARTLEY RUDELIUSPP21PP21--CC SALES ManagementCC SALES MANAGEMENT SALES MANAGEMENT involvesplanning the SELLING program and implementing and controlling the PERSONAL SELLING effort of the firm. Numerous tasks are involved in managing PERSONAL SELLING including:--setting objectives;--organizing the SALES force;--recruiting, selecting, training, and compensating salespeople; and--evaluating the performance of The McGraw-Hill Companies, Inc.

5 , 2000 MARKETING, 6/eMARKETING, 6/eBERKOWITZ KERIN HARTLEY RUDELIUSPP21PP21--1a PERSONAL SELLING and SALES MANAGEMENT Quiz1a PERSONAL SELLING and SALES MANAGEMENT Quiz1. What percentage of chief executive officers in the 1,000 corporations have significant SALES and marketing experience in their work history?2. About how much does it cost for a manufacturer s SALES representative to make a single PERSONAL SALES call? (check one)$100 _____$200 _____$300 _____$150 _____$250 _____$350 _____Irwin/McGraw-Hill The McGraw-Hill Companies, Inc.

6 , 2000 MARKETING, 6/eMARKETING, 6/eBERKOWITZ KERIN HARTLEY RUDELIUSPP21PP21--1b PERSONAL SELLING and SALES MANAGEMENT Quiz1b PERSONAL SELLING and SALES MANAGEMENT Quiz3. A salesperson s job is finished when a sale is made. True or False? (circle one)TrueFalse4. About what percent of companies include customer satisfaction as a measure of salesperson performance? (check one)10% _____20% _____50% _____20% _____40% _____60% _____Irwin/McGraw-Hill The McGraw-Hill Companies, Inc.

7 , 2000 MARKETING, 6/eMARKETING, 6/eBERKOWITZ KERIN HARTLEY RUDELIUSPP21PP21--DD Pervasiveness of PERSONAL SellingDD Pervasiveness of PERSONAL SELLING 16 million peopleare employed in SALES positions in the Virtually every occupationthat involves customer contact has an element of PERSONAL SELLING . About 20% of the CEOs in the 1,000 largest firmshave significant SALES and marketing experience in their work history. SELLING often serves as a stepping-stoneto top The McGraw-Hill Companies, Inc.

8 , 2000 MARKETING, 6/eMARKETING, 6/eBERKOWITZ KERIN HARTLEY RUDELIUSPP21PP21--A How Salespeople Create Value for CustomersA How Salespeople Create Value for Customers Identify Creative Solutions To Customer Problems Identify Creative Solutions To Customer Problems Ease The Customer Buying Process Ease The Customer Buying Process Follow-up After The Sale Is Made Follow-up After The Sale Is MadeCustomer ValueCustomer ValueCustomer Value++=Irwin/McGraw-Hill The McGraw-Hill Companies, Inc.

9 , 2000 MARKETING, 6/eMARKETING, 6/eBERKOWITZ KERIN HARTLEY RUDELIUSPP21PP21--EE Relationship SellingEE Relationship SellingRelationship sellingis the practice of building ties to customers based on a salesperson s attention and commitment to customer needs over The McGraw-Hill Companies, Inc., 2000 MARKETING, 6/eMARKETING, 6/eBERKOWITZ KERIN HARTLEY RUDELIUSPP21PP21--FF Partnership SELLING FF Partnership SELLING With partnership SELLING , 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 The McGraw-Hill Companies, Inc.

10 , 2000 MARKETING, 6/eMARKETING, 6/eBERKOWITZ KERIN HARTLEY RUDELIUSPP21PP21--GG Concept CheckGG Concept is PERSONAL SELLING ? is involved in SALES MANAGEMENT ?Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 2000 MARKETING, 6/eMARKETING, 6/eBERKOWITZ KERIN HARTLEY RUDELIUSPP21PP21--HH Order Taking (HH Order Taking (order takerorder taker) ) An order takerprocesses routine orders or reorders for products that were already sold by the company. The primary responsibility of order takersis to preserve an ongoing relationship with existing customers and maintain SALES .