Chapter 18 – Personal Selling and Sales Management
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CHAPTER CONTENTS
PAGE
POWERPOINT RESOURCES TO USE WITH LECTURES …………………………………… 18-2
LEARNING OBJECTIVES (LO) ……………………………………………………………………………. 18-4
KEY TERMS ………………………………………………………………………………………………………….. 18-4
LECTURE NOTES
• Chapter Opener: Meet Today’s Sales Professional …………………………………………….. 18-5
APPLYING MARKETING KNOWLEDGE …………………………………………………………… 18-31
BUILDING YOUR MARKETING PLAN ………………………………………………………………. 18-34
VIDEO CASE (VC)
• VC-18: Xerox: Building Customer Relationships through Personal Selling………….. 18-35
IN-CLASS ACTIVITIES (ICA)
• ICA 18-1: Students’ Perceptions of Selling ………………………………………………………. 18-38
• ICA 18-2: Personal Selling Process: Direct Selling of the Mary Kay®
Lip Protector …………………………………………………………………………………. 18-41
CONNECT EXERCISES …………………………………….……………………………18-46
• Personal Selling Process Case Analysis
Chapter 18 – Personal Selling and Sales Management
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POWERPOINT RESOURCES TO USE WITH LECTURES
PowerPoint
Textbook Figures Slide
Figure 18-1 How outside order-getting salespeople spend their time each week ……………………… 18-10
Selected Textbook Images (Ads, People, Products, and Websites)
Chapter Opener: Photo of Lindsey Smith of GE Healthcare ……………………………………………………. 18-3
Applying Marketing Metrics
Tracking Sales Performance at Moore Chemical & Sanitation Supply: Various Metrics …………… 18-32
Marketing Matters, Making Responsible Decisions, and/or Marketing Insight
Marketing Matters—Customer Value: Science and Selling: Is Customer Value Creation in
Your Genes?…………………………………………………………………………………………………………………….. 18-7
Chapter 18 – Personal Selling and Sales Management
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POWERPOINT RESOURCES TO USE WITH LECTURES
PowerPoint
Excel Spreadsheets Slide
Behavioral Evaluation
[See CH20WorkloadMethod.xls]………………………………………………………………………………………… 18-31
Videos
18-2: Xerox Video Case …………………………………………………………………………………………………….. 18-37
In-Class Activities (ICA)
ICA 18-2: Personal Selling Process: Direct Selling of the Mary Kay® Lip Protector …………………. 18-43
Chapter 18 – Personal Selling and Sales Management
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LEARNING OBJECTIVES (LO)
After reading this chapter students should be able to:
LO 18-2: Identify the different types of personal selling.
LO 18-4: Describe the major functions of sales management.
KEY TERMS
account management policies
personal selling
adaptive selling
personal selling process
consultative selling
relationship selling
emotional intelligence
sales management
formula selling presentation
sales plan
key account management
sales quota
need-satisfaction presentation
sales force automation (SFA)
order getter
stimulus-response presentation
order taker
team selling
partnership selling
workload method
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LECTURE NOTES
MEET TODAY’S SALES PROFESSIONAL
• Lindsey Smith represents Molecular Imaging Products within the Medical
Diagnostics Division of GE Healthcare.
• Ms. Smith lists a few ingredients necessary for a successful sales career:
• To be an effective salesperson, she recognizes the importance of constantly updating
and refining her…
• Lindsey Smith’s selling orientation and customer relationship focus rest on 4 pillars:
a. A commitment to creating value for clients.
b. Seek to serve clients as a trusted consultant.
• Lindsey Smith’s approach to selling and customer relationships:
a. Has put her among the top revenue-producers in the company.
I. SCOPE AND SIGNIFICANCE OF PERSONAL SELLING
AND SALES MANAGEMENT [LO 18–1]
• Personal selling is a vehicle for communicating with present and potential buyers.
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A. Nature of Personal Selling and Sales Management
• Personal selling involves:
a. The two-way flow of communication between a buyer and seller…
b. Often in a face-to-face encounter…
c. Designed to influence a person’s or group’s purchase decision.
• Personal selling also occurs between buyers and sellers:
a. By telephone.
B. Selling Happens Almost Everywhere
• “Everyone lives by selling something,” wrote author Robert Louis Stevenson.
[ICA 18–1: Students’ Perceptions of Selling]
C. Personal Selling in Marketing and Entrepreneurship
Personal selling serves three major roles in a firm’s overall marketing effort.
• Salespeople:
a. Are the critical link between the firm and its customers. They:
• Match company interests with customer needs to…
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• Satisfy both parties in the exchange process.
b. Are the company in consumers’ eyes. They:
• Represent what the company is or attempts to be.
[Video 18-1: Cambridge Sales Video]
D. Creating Customer Solutions and Value through Salespeople: Relationship and
Partnership Selling
Because salespeople are close to customers, they can create value by:
• Identifying creative solutions to customer problems.
• Easing the customer buying process.
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MARKETING MATTERS
Customer Value: Science and Selling—Is Customer Value Creation in Your Genes?
Is a predisposition to create customer value in your genes? Are you a born
salesperson? Research by University of Michigan Marketing Professor Richard P. Bagozzi
and his colleagues offers a novel insight into this question may surprise you.
A genetic marker, the 7R variant of the DRD4 gene, is correlated with a salesperson’s
willingness to interact with customers and learn about their problems in order to meet their
LEARNING REVIEW
18-1. What is personal selling?
18-2. What is involved in sales management?
Answer: Sales management involves planning the selling program and implementing
II. THE MANY FORMS OF PERSONAL SELLING [LO 18–2]
Personal selling assumes many forms based on:
• The amount of selling done.
• The amount of creativity required to perform the sales task.
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A. Order-Taking Salespeople
• An order taker:
a. Processes routine orders or reorders for products already sold by the firm.
b. Is responsible for:
• Two types of order takers exist:
a. Outside order takers.
• Visit customers.
b. Inside order takers, order clerks, or salesclerks.
• Typically answer simple questions.
• Take orders.
• Order takers:
a. Do little selling in a conventional sense.
b. Engage in only modest problem solving with customers.
c. Represent products that:
• Have few options.
B. Order-Getting Salespeople
• An order getter:
a. Sells in a conventional sense. d. Persuades customers to buy.
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• Like order takers, order getters can be inside or outside.
• Order getting:
a. Involves creativity, empathy, product knowledge, and sales training.
• Order getters are problem solvers who:
a. Identify how a particular product satisfies a customer’s need in…
b. [Figure 18-1] Spend:
• 36% selling.
• 15% generating leads and researching customer accounts.
• Outside order getting is expensive:
a. A single field sales call costs about $500.
b. Affects salespeople’s compensation, benefits, travel, etc. expenses.
• Outbound telemarketing.
a. Uses the telephone rather than personal visits to contact customers.
C. Customer Sales Support Personnel
• Augment the selling efforts of order getters by performing a variety of services.
• Missionary salespeople.
a. Do not directly solicit orders.
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b. Concentrate on:
• Performing promotional activities.
• Sales engineers.
a. Specialize in identifying, analyzing, and solving customer problems.
b. Bring know-how and technical expertise to the selling situation.
• Team selling.
a. Uses a team of professionals in selling to and servicing major customers.
b. Is used when specialized knowledge is needed to satisfy the different interests
d. Takes two forms:
• Conference selling.
– A salesperson and other company resource people …
e. IBM and Xerox pioneered cross-functional team selling in working with
prospective buyers.
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MARKETING MATTERS
Customer Value: Creating and Sustaining Customer Value
through Cross-Functional Team Selling
The day of the lone salesperson calling on a customer is becoming history. Today,
LEARNING REVIEW
18-3. What is the principal difference between an order taker and an order getter?
Answer: An order taker processes routine orders or reorders for products that were
18-4. What is team selling?
III. THE PERSONAL SELLING PROCESS:
BUILDING CUSTOMER RELATIONSHIPS [LO 18–3]
• Although the salesperson-customer interaction is essential to personal selling, much
of a salesperson’s work occurs before and continues after the sale itself.
• [Figure 18-2] The personal selling process.
a. Consists of sales activities occurring before, during, and after the sale itself.
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A. Prospecting: Identifying and Qualifying Prospective Customers
• The prospecting stage.
a. Begins the personal selling process.
• There are three types of prospects:
a. A lead is the name of a person who may be a possible customer.
• Leads and prospects are generated using several sources:
a. Advertising may contain a coupon or a toll-free number.
b. Exhibits at trade shows, professional meetings, and conferences staffed by
salespeople to:
• Meet prospective buyers.
c. The Internet:
• Involves websites, e-mail, and social networks.
d. Cold canvassing or cold calling.
• Occurs either in person or by telephone.
• A salesperson may open a directory, pick a name, and visit or call that
individual or business.
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– Firms must provide more complete disclosure regarding solicitations.
– Firms may not contact consumers on the Do Not Call Registry.
B. Preapproach: Preparing for the Sales Call
• The preapproach stage involves:
a. Obtaining further information on the prospect.
b. Deciding on the best method of approach.
• Regardless of the industry or cultural setting, it is essential to know:
a. How the prospect prefers to be approached.
• This stage is very important in international selling:
a. Customs dictate appropriate protocol.
b. In many South American countries, buyers:
• Expect salespeople to be punctual for appointments.
C. Approach: Making the First Impression
• The approach stage involves the initial meeting between the salesperson and a
prospect.
• The objectives of the approach stage are to:
a. Gain the prospect’s attention.
Chapter 18 – Personal Selling and Sales Management
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Education.
18–15
b. Stimulate interest.
c. Build the foundation for the sales presentation and the working relationship.
• First impressions are critical. It is common to begin the conversation with:
a. A reference to common acquaintances.
b. A referral.
• This stage is very important in international settings.
a. Some societies spend time:
b. Gestures are very important, particularly whether, when, and how to use a
handshake, a bow, etc.
c. Knowing how to exchange business cards is important.
• Business cards should be printed:
– In English on one side.
D. Presentation: Tailoring a Solution for a Customer’s Needs
The presentation stage:
• Is at the core of the order-getting selling process.
• Converts a prospect into a customer by creating a desire for the offering.
1. Stimulus-Response Format.
a. Given the appropriate stimulus by a salesperson, the prospect will buy.
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2. Formula Selling Format.
a. Formula selling presentation format.
• Consists of information that…
b. Canned sales presentation format.
• Is a memorized, standardized message conveyed to every prospect.
• Is popular.
• Is used in the telephone and door-to-door selling of consumer products.
• Treats prospects the same regardless of differences in needs or information
preferences.
3. Need-Satisfaction Format.
a. The salesperson:
• Emphasizes probing and listening to identify needs and interests of
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– Involves adjusting the presentation to fit the selling situation.
– Salespeople must know:
* When to offer solutions.
• Consultative selling.
– Focuses on problem identification, where the salesperson serves as an
expert on problem recognition and resolution.
– Solutions to problems:
* Often arise from the interaction.
MARKETING MATTERS
Customer Value: Imagine This…Putting the Customer into Customer Solutions!
The day of the lone salesperson calling on a customer is becoming history. Today,
4. Handling Objections.
a. Objections. Are excuses for not making a purchase commitment or decision.
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• Acknowledge and convert the objection. Use the objection as a reason for
buying.
• Postpone. Say the objection will be addressed later in the presentation.
– A stalling mechanism.
– Clearly not important to the prospect.
e. Handling objections requires:
• A calm and professional interaction with the prospect.
• That they be anticipated in the preapproach stage.
E. Close: Asking for the Customer’s Order or Business
• The closing stage involves obtaining a purchase commitment from the prospect.
• This stage is:
a. The most important and most difficult.
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• Salespeople use 1 of 3 techniques when a buyer is ready to make a purchase:
a. Trial close. Asks the prospect to decide on some aspect of the purchase.
b. Assumptive close. Asks the prospect to consider choices concerning delivery,
warranty, or financing terms—assuming that a sale will be finalized.
F. Follow-Up: Solidifying the Customer Relationship
• The follow-up stage includes making certain:
a. The customer’s purchase has been properly delivered and installed.
[ICA 18-2: Personal Selling Process:
Direct Selling of the Mary Kay® Lip Protector]
Chapter 18 – Personal Selling and Sales Management
LEARNING REVIEW
18-5. What are the six stages in the personal selling process?
Answer: The six stages in the personal selling process are: (1) prospecting—searching
for qualified potential customers; (2) preapproach—obtaining further information on
18-6. What is the distinction between a lead and a qualified prospect?
18-7. Which presentation format is most consistent with the marketing concept? Why?
IV. THE SALES MANAGEMENT PROCESS [LO 18–4]
• Selling must be managed if it is going to contribute to a firm’s overall objectives.
• [Figure 18-3] Sales management consists of three interrelated functions: (1) sales
plan formulation, (2) sales plan implementation, and (3) salesforce evaluation.
A. Sales Plan Formulation: Setting Direction
• Sales plan formulation the is the most basic of the 3 sales management functions.
• The sales plan:
a. Is a statement describing: