Personal Selling and Sales Management Chapter 17 Introduction to Sales Personnel Importance of personal sales: Direct link to the customer Most customers see the sales person as the company Designing the sales force internationally is one of the most important functions of the marketing department “A salesman is someone who sells goods that won’t come back to customers who will.” (Anonymous) Steps in the Selling Process Step 1. Prospecting and Qualifying Step 2. Preapproach Step 3. Approach Step 4. Presentation/ Demonstration Identifying and Screening For Qualified Potential Customers. Learning As Much As Possible About a Prospective Customer Before Making a Sales Call. Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start. Telling the Product “Story” to the Buyer, and Showing the Product Benefits. Steps in the Selling Process Step 5. Handling Objections Step 6. Closing Step 7. Follow-Up Seeking Out, Clarifying, and Overcoming Customer Objections to Buying. Asking the Customer for the Order. Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business. Factors Affecting the Importance of Personal Selling in the Promotional Mix Variable Conditions That Favor Conditions That Favor Advertising Personal Selling Consumer Geographically dispersed Product Geographically concentrated Relatively low numbers Expensive Technically complex Custom made Special handling requirements Transactions frequently involve trade-ins Price Relatively high Relatively low Channels Relatively short Relatively long Relatively high numbers Inexpensive Simple to understand Standardized No special handling requirements Transactions seldom involve trade-ins The Evolution of Personal Selling Today’s salesperson is usually a highly-trained professional Sales professionals take a customer-oriented approach employing truthful, nonmanipulative tactics in order to satisfy the long-term needs of both the customer and the selling firm Today’s professional salespeople are problem solvers who seek to develop long-term relationships with customers Four Sales Channels Over-the-counter selling: personal selling conducted in retail and some wholesale locations in which customers come to the seller’ place of business Field selling: sales presentations made at prospective customers’ homes or businesses on a face-to-face basis Four Sales Channels Telemarketing: promotional presentation involving the use of the telephone on an outbound basis by salespeople or on an inbound basis by customers who initiate calls to obtain information and place orders Inside selling: performing the functions of field selling but avoiding travel-related expenses by relying on phone, mail, and electronic commerce to provide sales and product service for customers on a continuing basis I. Designing & Recruiting Sales Personnel 3 Ways to Design Sales Force 1. Expatriates 2. Local Nationals 3. Third Country Nationals Advantages/Disadvantages of all 3: 1. Expatriates (declining) • Advantages – Used most when products are highly technical or requires a lot of information in order to sell – Familiar with headquarters policies, procedures – Opinions/Ideas are valued more by home office I. Designing & Recruiting Sales Personnel Disadvantages – High cost – Cultural and legal barriers – Difficult to recruit – many highly skilled will not re-locate overseas Other type of Expatriates – Virtual Expatriates – Created by the internet and other advanced types of communications, where they manage operations in other countries, but do not move to that country. I. Designing & Recruiting Sales Personnel 2. Local Nationals Advantages – Most knowledgeable about culture, legal environments, business structure, distribution networks Disadvantages – Home office does not see as the “experts” in the field – Seen as not being familiar with home office procedures, policies – Not the experts on the products – Difficult to recruit most skilled and knowledgeable – Recruiting the best may mean taking away from another company or competitor – this goes against some cultural believes where “loyalty” is important – Crossing Borders 17.3 pg. 521 -“Avon calling – or not?” I. Designing & Recruiting Sales Personnel 3. Third-Country Nationals Advantages • If recruited within same area most are familiar with culture, language, how to conduct business Disadvantages • Host country does not see individual as one of their own • Many of the same disadvantages to a smaller scale with the expatriate. Selecting Sales and Marketing Personnel • To select personnel for international marketing positions effectively, management must choose individuals who have the following traits: 1. Maturity 4. Flexibility 2. Emotional Stability 5. Cultural Empathy 3. Breadth of Knowledge 6. Energetic and 7. Enjoy Travel III. Training Sales Personnel Types and method of training differs depending upon type of sales structure 1. Expatriates • Focus is on culture, customs, special foreign issues (not on products, selling methods, home office policies..) 2. Local Nationals/Third-County Nationals • Focus on product knowledge • More continual training • Methods of training need to be adapted to recipients’ way of learning Internet is facilitating faster and more efficient learning for all types of sales structures IV. Motivating Sales Personnel What motivates people varies from culture to culture Though some similarities exist in certain cultures, many cultures vary in a number of areas (individual bonuses vs. group bonuses; compensation vs. personal growth, etc) Designing Compensation Systems Expatriates • Things to consider – Countries with high taxes, prefer larger expense accounts, fringe benefits (things that are non-taxable) – Where the company is multi-national, sales personnel will compare compensation plans from home country to re-assigned country Compensating Salespeople Sales Force Compensation Plans Can Both Motivate Salespeople and Direct Their Activities. Salary Benefits Components of Compensation Commission Bonus IV. Motivating Sales Personnel 2. Global Sales Force • Allows for most flexibility in creating compensation plans • See “do’s and don’ts of global compensation” – pg. 532 Preparing U.S. Personnel for Foreign Assignments Obstacles to overcome 1. Reluctance to accept foreign assignment due to: • Concerns for career and family (most common) – Career fears relate to “out of sight, out of mind” – Family is uprooted in a very different environment 2. Reducing the rate of early returns • Unsuccessful family adjustment is the single most important reason for early returns. 3. Ensuring successful return home • Need to have a personal career plan designed to successfully transition the individual and family back to their home country. Important Points in Recruiting Sales Personnel & Managers Important characteristics/skills to look for when recruiting: Cross-cultural skills • More important in most cases than technical skills Language skills • Many believe that the more fluent in languages, the more culturally sensitive – Crossing Borders 17.6 pg. 525 Evaluating Salespeople Expense Reports Call Reports Sales Report Sources of Information Annual Territory Marketing Plan Work Plan Relationship Marketing Process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders. Based on the idea that important accounts need focused and continuous attention.