BUAD301 Chapter 16

Prospecting

Identifying qualified customers & approaching the right ones

Salesperson

Individual who represents a company to customers by performing: -prospecting -communicating -selling -servicing -info gathering -relationship building

Robin works in a manufacturing company in Ohio. She sells products and handles customer requests via the company's online live chat feature. In her company, Robin is most likely a part of the ________.

Inside sales force

Personal selling is the _________ arm of the promotion mix

Interpersonal (vs. advertising which is non personal)

Follow-up

Last step in selling process: salesperson ensures customer satisfaction in order to repeat business

Eric Brown is a human resource manager in a company selling and manufacturing personal computers. Who is Eric most likely to hire as a salesperson if his objective is to minimize training costs post recruitment?

Melissa, a proven salesperson from a competing firm

Personal Selling

One of the oldest professions in the world -->salespeople, sales reps, agents, district managers, account executives, sales consultants, sales engineers

Kevin is a salesperson working for a company that manufactures gardening tools. He is involved in door-to-door sales and travels every day to call on customers. In his company, Kevin is most likely a part of the ________.

Outside sales force

Consumer promotion

Sales promotion tools to boost short-term customer buying & engagement: -samples, coupons, refunds, premiums, point-of-purchase displays to contests, sweepstakes, etc

Product sales force structure

Salespeople sell only a portion of the company's products or lines *company sells many products to many types of customers* ex) GE employs different sales forces within different product & service divisions of its major businesses --> no single salesperson can be an expert for all GE's products so product specialization is required

Customer (or market) sales force structure

Salespeople sell only to certain customers or industries -Separate sales forces set up to serve current customers versus finding new ones, & serving major accounts versus regular accounts ex) Whirlpool assigns individual teams of salespeople to big retail customers like Sears, Lowes, Best Buy, etc.

What would most likely improve coordination between marketing and sales?

Salespeople should participate in marketing planning sessions by *sharing firsthand customer knowledge*.

Outside sales force (field source)

Salespeople who travel to call on customers in the field

Preapproach

Salesperson learns as much as possible about the organization (what it needs, who is involved in buying) and prospective customer before making a sales call

Approach

Salesperson meets customer for first time: meet and greet the buyer

Handling objections

Salesperson seeks out, clarifies, and overcomes any customer objections to buying

Presentation

Salesperson tells "value story" to buyer usually using the *customer-solution approach*

Closing

Salesperson tries to close the sale and asks the customer for an order

Sales promotion

Short-term incentives to encourage the purchase or sale of a product or a service

Time-and-Duty analysis tool

Shows how much time is spent selling, traveling, waiting, taking breaks, and doing administrative chores by the salesperson

Amanda insists on ________, or using groups of people from various departments such as sales, technical support, engineering, and even upper management to service complex accounts.

Team selling

Business promotions

Used to generate business leads, stimulate purchases, reward customers, and motivate salespeople ex) conventions, trade shows, sales contests

Trade promotions

Used to persuade resellers to carry a brand, give it shelf space, and promote in advertising & push it to consumers

Team selling

Using teams of ppl from sales, marketing, engineering, finance, technical support, to service large complex

Sales Force Management

analyzing, planning, implementing, and controlling sales force activities: 1. Design sales force structure 2. Recruit salespeople 3. Train salespeople 4. Compensate salespeople 5. Supervise salespeople 6. Evaluate salespeople

If a company ________, it should adopt a *product sales force structure* in which the sales force specializes along product lines

has numerous and complex products

Social selling

using online, mobile, social media to engage w/ customers & build stronger relationships

Selling process

1. Prospecting & qualifying 2. Preapproach 3. Approach 4. Presentation & Demonstration 5. Handling objections 6. Closing 7. Follow-up

Territorial sales force structure

Assigns each salesperson to an exclusive geographic territory in which that salesperson sells company's full line -increases salesperson's desire to build local customer relationships *company sells only ONE product line to one industry with customers in many locations*

Which of the following is true with regard to personal selling? A.An outside sales force is not involved in personal selling. B.Personal selling involves making personal requests to potential buyers to enter into short-term business relationships with firms. C. Selling entails personal presentations by a firm's sales force for the purpose of making sales and building customer relationships. D.Personal selling distances the buyer from the seller and does not focus on building enduring relationships.

C. Selling entails personal presentations by a firm's sales force for the purpose of making sales and building customer relationships

Inside sales force

Conduct business from their offices via telephone -has grown recently as a result of increased outside selling costs and the surge in online, mobile, & social media technologies

Event marketing

Creating a brand-marketing event or serving as participating sponsors of events created by others

In the ________, separate sales forces are set up for different industries

Customer sales force structure