Saeed Ur Rehman

Personal Selling

Learning Outcomes:
Describe the nature of personal selling and changes brought about the business shift to customer orientation Outline the role of the sales force in each of the marketing mix variables Trace the process of how sales management has changed Define the critical role, task, and activities of a field sales manager Assess sales management training and development activities.

Personal Selling
- Person-to-person communication (prospect)
- Personal selling is a process of Developing relationships

Discovering needs
Communicating features/benefits Matching products with needs

A process that adds value

The role and nature of the business function Sales Managers MUST SUPERVISE

The Nature of Personal Selling

Critical aspect of a firms promotional strategy. When correctly used, its a major factor to generate sales volume It is the part of promotion that brings the human element into marketing transactions. Develops, increases customer confidence. Allows buyer to act immediately. Simplifies the handling of customers problems

Personal Contact puts more influence on buyer compare to advertising message

The Nature of Personal Selling

Human Element is critical Salespeople , customer face to face dealing.

Long-lasting partnership is created

(Installation Modification)

Salespeople sell more than a product. Familiarity/friendship develops between salesperson and customer. Salesperson becomes company for customer.

Developing long term relationship, based on trust is essential to sales & marketing success

The Nature of Personal Selling

The Customers Confidence is enhanced Salespeople play important role to gain or enhance customer confidence. Being more professional Offering relevant products

Delivery timing, fulfilling the commitments

Salespeople sell more than a product. Personal selling offers the opportunity for salesperson to build a basis of trust and confidence

The Nature of Personal Selling

Customer Can Act Immediately Customer can work for a desired action .

Sales reps can get an order, commit to a purchasing plan for the next quarter, decide on an in- store promotion for the product Personal selling makes it more difficult for customer to delay or forget a promised commitment in future
Opportunity for salesperson to get the required decision on the spot.

The Nature of Personal Selling

Customers Are Treated As Individual
All preceding of personal selling are important . Most valuable is rep/customer personal contacts make it possible to customized sales presentation and to handle buyers problems complaints on individual basis Helps to identify each customers needs or problem and to respond individually. Only personal selling can deliver such customer by customer accommodation Value added or extra benefit that salesperson can provide The value addition is the difference sales success & failure in todays competitive markets

Change in Selling
The Modern view of personal selling
Salespersons are more than accomplished persuaders & negotiators. Must act as a problem solver.

Meet the needs & conditions of individual customers.

Must build & maintain relationship with customer. So, modern personal selling is creative & flexible, not simply persuasive Companies have changed their hiring, training and supervision methods to adapt the new market conditions

Sales managers have become the critical link between a firms marketing strategy and what takes place in the buyers office

Change in Selling
The Modern view of personal selling
General recognition that personal selling is more than just making a sales. Sales reps & sales managers are involved in other important aspects of total marketing process like distribution, credit, promotion of the product as well as pricing. With change in the role of personal selling, sales management has become more important to company success.

Change in Selling
Marketing Concept
Modern marketing concept is based on three major propositions 1. Customer orientation 2. Coordination of all customer related activities 3. Profit direction

Change in Selling
Marketing Concept
1. Customer orientation Focal point of modern marketing. Successful marketing requires complete understanding of customers, their needs, attitudes and buying behavior.

Change in Selling
Marketing Concept
2. Coordination
Between all customer serving functions is second fundamental point. (Big order, production schedule, delivery arrangements) 3. Profits Are the goals of business unit. Selling products without reasonable profit ? Satisfying customer need s is the means to achieve sales and profit. Sales reps and managers must control cost and generate sales volume for acceptable level of profitability.

Change in Selling
Modern Sales Approaches
1. Partnering Clearly understand and anticipate customers need and as partner - have moved from pure selling to mutually supporting role

2. Relationship selling
Dont sell product only Develop association, relations This relationship further strengthens as sales rep provides more services, identifies and satisfies needs, develops stronger contacts with customer

Change in Selling
Modern Sales Approaches
3. Team Selling - For large customers with complex need, salespeople MUST work with other colleagues to provide coordinated approach. Conventional independent sales approaches do not meet large, complex purchasing requirements 4. Value Added Selling - Salespeople are expected to exceed their customers expectation. Must go beyond selling products and provide value added services for demanding customers,(Installation, employee training) 5. Consultative Selling - Act as consultants, problem solver and MUST adapt their product or services to specific needs of customer

The Role of Personal Selling in The Marketing Mix

1-17

Personal Selling in The Marketing Mix

Marketing Mix?
Strategies that a company utilizes to implement its marketing plan and pursue its marketing objectives Composed of 4,5,6 major elements

PRODOCT PRICE PROMOTION PLACEMENT

1-18

The Marketing Mix

1-19

The Role of Personal Selling

Product Strategy
Under Marketing Concept Sales People Are Helpful

Specify desirable products features & benefit

Provide guidance during product development phase.

Participate in product testing and test marketing because of their familiarity with market place.

The Role of Personal Selling

Pricing Strategy Sales people and sales managers can assist pricing in number of ways Competitive pricing strategies Gauge market reaction Can advise/suggest senior management in pricing decision as per market conditions

Method

- Pricing Strategy

- Individual product prices are set in accordance with one of two approaches 1. Cost Plus Method 2. Market Oriented

- Most frequently used method is

Cost plus method - Markup of profit is added to the products cost (Simplicity)

Method

- Pricing Strategy

Market oriented pricing relies on assessment of market response to alternative price level and can be subdivided

1. Demand oriented 2. Competition oriented Demand oriented - Profit markup is based on what the
traffic will bear. Sales managers play an important role because of their familiarity with customer response patterns

Competition oriented A strategy where company

prices its products at, above or below competitors levels. Philosophy is MEETING THE COMPETITION

The Role of Personal Selling

Distribution Strategy
Sales Force has even closer connection with the
distribution component of the marketing mix

A Channel of distribution is the route a product takes from producer to ultimate user. This ownership transfer can take place in two ways

1. Direct Distribution 2. Indirect Distribution.

The Role of Personal Selling

Distribution Strategy
Distribution Channel

1. Direct Distribution
Form of ownership transfer in which the ultimate buyer acquires title directly from the manufacturer of the product
Consumer

The Role of Personal Selling

Distribution Strategy
Distribution Channel

2. Indirect Distribution
Form ownership transfer involving the use of intermediaries who buy and resell the merchandise Distributor

Wholesaler

Retailer

Consumer

Nothing happens until somebody sells something

The Role of Personal Selling

Promotional Strategy

Presentation of informative and persuasive messages to the firms target market to in an attempt to stimulate Sales
Personal selling is vital ingredient of this effort working in conjunction with advertising, sales promotion & public relation.

Tasks of Sales Managers

Sales management can be defined as the management of a firms personal selling function.
Sales managements tasks are analysis, planning, organization, implementation/direction & control of the companys sales activity

Tasks of Sales Managers

Analysis Review of internal sales record, sales reports,
investigation of market trends and relevant environmental factors.

Planning Setting objectives for the firms sales efforts and

mapping out strategies and tactics to achieve these objectives.

Organization Setting up structures and procedures for

smooth and effective execution of sales plan.

Implementation/Direction Staffing and supervision of

the day-to-day implementation of sales strategies, policies and plans.

Control Performance comparison of actual and planned

sales results, observation/reasons if any and evaluation of the need for plan revision.

Sales Managers Boundary Spanning Role

Internal Organizational Environment Production Human Resource Top Management Advertising Sales force

Finance & Accounting

Research & Development

Sales Manager

Other internal Information sources

Trade groups Regulatory Agencies Competitors External Environment Customers Other external sources

Suppliers

Field Sales Manager

Field Sales Managers Activities

Analyze the conditions of selling situation
Review individual sales records and performance of salespersons.
Asses specific market trends and condition Note relevant environment factors and trends

Plan for the immediate situation & long run

Establish specific sales objectives and develop strategies and procedures to attain these objectives.

Field Sales Managers Activities

Organize the sales team to achieve objectives
Break the selling task and supporting activities into operation parts (jobs) Create specific job descriptions for these tasks and activities Recruit and select personnel for these jobs

Field Sales Managers Activities

Oversee the operations of sales teams to improve its performance
Issue the necessary directions and guidelines Provide the conditions of motivation (incentives) for performers Train and coach sales team members for better sales performance. Assure the attainment of acceptable level of sales conduct and ethical behavior

Field Sales Managers Activities

Evaluate sales performance
Create/set/establish/administer performance standards and measurement Collect and analyze performance information against standards Take indicated remedial actions

Qualities - Field Sales Management

Sales Reps
Territory Management Sharp analytical skill to reviewing the potential of their customer and territories Identify prospects and their needs Rout planning and call pattern Effective sales presentation

The ability to organize varied responsibilities and activities in a systematic, efficient & effective manner
Achieve objectives, sales quotas

Field sales reps do not manage themselves well . They can not be managed by system, no matter how sophisticated or automated

Field sales managers MUST demonstrate, by their actions as well as their statements, a high level of ethical behavior

Qualities - Field Sales Management

Field Sales Managers
Management of a field sales team is both an art and science, requiring a delicate balance between subjective creativity and objective detachment Product & technical knowledge & capacity to conceptualize Decisiveness in handling the conflicts, problems and demands brought before them Patience and dedication to listening

Qualities - Field Sales Management

Traits for first level Sales Managers
Motivation Enthusiasm to all major task Human relation skills

Higher than average energy

Ambition Strong personal desire to achieve and advance Persuasiveness interest in persuasive involvement Behavior flexibility Intellectual ability Personal impact - Charisma

Selling to Managing
Most sales managers Former salespeople
Must make the transition from selling to managing An old myth about top performer ? Proved wrong, time and again

Salesperson Doer Sales Manager ?

Critical difference - Selling & Managing

Activity Primary responsibility Working relationship Role Part of management Diversity of responsibility Alone Player No Make call, sell & service Sales Rep Develop accounts Sales Manager Develop people Through others Coach Yes must sell the company plan to reps Develop people, recruit select, train, motivate, compensate, run branch office, manage key accounts, correspond, interact with other departments

Sales Management Training & Development

Survey of human resource specialist identified increased training for first level managers & supervisors as one of industrys most pressing need.
Keeps them competitive Management training helps to retain good people Most important Training Needs (First level managers) Communication Skills

Team Building
Performance Management Skills

Sales Management Training & Development

Survey of sales training by Princeton Research & Consulting Center emphasizes Great Need for sales management training. Most important Area of Training How to motivate sales people Effective time management How to coach & train salespeople How to listen for understanding How to make transition to sales manager How to be an effective sales manager How to make an effective presentation How to manage negotiation process

Sales Management Training & Development

Thereimportant is also growing need sales management The most reason forfor sales management in other career industries like Banking that trying to trainingtraining is to enhance development as training is develop the key to helpa asales salesculture person make difficult transition Started recognizing the need for ongoing sales management training for branch managers Banks are attempting to develop coaching and other skills Upper management also needs training to gain understanding of the role of selling and sales management in banking.

Sales Management & Change

The only thing I can be sure about when I get to the office in the To accomplish its thing task, will sales MUST deal with morning is that some bemanagers changed from yesterday

Change. All mangers, especially sales managers, work under constantly changing conditions

New products are introduced

A competitor cuts the price New government law New territories are opened

Evolution of Sales Management

% Volume Sold By Type Of Seller
Sales Positions

1950 - 1970
100% by direct sales force 1990 Onward 75% through direct sales 5% telemarketing 11% through distributors wholesalers 6.6% through outside sales

1950 - 1970
Territory sales reps District managers Regional managers 1990 Onward Territory sales reps Key or major account reps National account managers Customer service reps Telemarketing reps Administrators Sales trainers District managers Regional managers Product/industry specialists

Evolution of Sales Management

Marketing Approach
Performance Expectations

1950 - 1970
Mass marketing techniques targeting one type of customer 1990 Onward Marketing segmentation techniques targeting several niches

1950 - 1970
Increase in overall sales volume Minimize turnover 1990 Onward Increase sales volumes in strategic markets

Increase margin contribution

Decrease cost of sales Attract top sales performers

THANKS