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.
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Personal Selling and Sales Management