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Chapter 19

Personal Selling and Sales Management

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McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
 After studying this chapter
you should be able to:
• Understand the role and importance of personal
selling in the marketing communications mix.

• See how the key steps in personal selling

depend on a relationship perspective.

• Identify the similarities and differences in the

job responsibilities of salespeople and sales
managers.

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 After studying this chapter
you should be able to:
• Describe the key activities in sales
management.

• Appreciate important ethical issues face

by salespeople and sales managers.

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 Personal
Personal Selling
Selling and
and Sales
Sales
Management
Management
• Personal Selling: • Sales
– The face-to-face Management:
interaction – Provides leadership
between a seller and supervision of
and a buyer for the an organization’s
purpose of personal selling
satisfying buyer function.
needs to the
benefit of both

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 The
The Multiple
Multiple Roles
Roles of
of
Salespeople
Salespeople

– Contributions of Personal
Selling to Marketing:
• Producing Sales Revenue
• Meeting Buyer Expectations
• Providing Marketplace
Information

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 Job
Job Roles
Roles of
of Salespeople
Salespeople
Business-to-Business
Business-to-Business

Sales
SalesSupport:
Support: Promote
Promoteproduct
productor
orprovide
providetechnical
technical
support.
support.
New
NewBusiness:
Business: Sales
Salesgrowth
growthby
byselling
sellingnew
newproducts
products
or gaining new customers.
or gaining new customers.
Existing
ExistingBusiness:
Business: Maintain
Maintainand
andbuild
buildrelationships
relationshipswith
with
established
establishedcustomer
customerbase.
base.

Direct-to-Consumer
Direct-to-Consumer

Represent
Representseller
sellerinintransactions
transactionswith
with
ultimate
ultimateconsumers.
consumers. Includes
Includessales
sales
people
peopleininretail,
retail,direct
directselling,
selling,real
real
estate
estateand
andfinancial
financialservices.
services.
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 The
The Sales
Sales Process:
Process: A
A Relationship
Relationship
Approach
Approach
Salesperson
Salesperson
Attributes:
Attributes:
••Customer-oriented
Customer-oriented
••Honest
Honest
••Dependable
Dependable
••Competent
Competent
••Likeable
Likeable
Developing
Developing
Initiating
InitiatingCustomer
Customer Customer
Customer
Relationships:
Relationships: Relationships:
Relationships: Enhancing
Enhancing
••Prospecting
Prospecting ••Sales
SalesPresentation
Presentation Customer
Customer
••Precall
PrecallPlanning
Planning Delivery
Delivery Relationships
Relationships
••Approaching
Approachingthethe ••Gaining
GainingCustomer
Customer
customer
customer Commitment
Commitment

Selling
SellingStrategy:
Strategy:
••Sales
SalesTerritory
Territory
••Each
EachCustomer
Customer
••Each
Each SalesCall
Sales Call
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 Sales
Sales Management
Management Activities
Activities
Develop
Developaa
Sales
SalesStrategy
Strategy

Design
Designthe
the
Sales
Sales
Organization
Organization

Develop
Developthe
the
Salesforce
Salesforce

Direct
Directthe
the
Salesforce
Salesforce

Determine
Determine
Effectiveness
Effectiveness&&
Performance
Performance
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 Developing
Developing aa Sales
Sales Strategy
Strategy

Developing a
Relationship
Strategy
Developing a
Sales Channel
Strategy

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 Designing
Designing the
the Sales
Sales Organization
Organization
• Should salesforce be
generalists or specialists?

• If specialists, should they be

product, market, customer,
or functional specialists?

• Should centralized or
decentralized control be
used?

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 Designing
Designing the
the Sales
Sales
Organization
Organization
• How large should the salesforce
be?

• How should customers and

geographic areas be assigned to
form sales territories?

• How should salesforce turnover

be factored into sales
organization design decisions?

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 Developing
Developing the
the Salesforce
Salesforce
• Recruiting and Selecting

• Training: Initial and

Continual

• Directing the Salesforce

– Motivation
– Supervision
– Leadership

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 Evaluating
Evaluating Performance
Performance and
and
Effectiveness
Effectiveness

Setting
Standards

Evaluating
Performance

Analyzing
Effectiveness

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 Ethical
Ethical and
and Legal
Legal Issues
Issues in
in Personal
Personal
Selling
Selling
•• Strict
Strictcodes
codesof
ofethics
ethicsfor
forsales
salespeople.
people.

•• Sales
Salesmanagers
managersmust
musttake
takeresponsibility
responsibilityfor
forthe
the
proper
properbehavior
behaviorof
oftheir
theirsalespeople,
salespeople,and
andthey
they
must
mustlead
leadby
byexample.
example.

•• Salespeople
Salespeopleshould
shouldbebehonest
honestinintheir
theirdealings
dealings
with
withcustomers
customersand
andbebeinformed
informedof ofrelevant
relevant
laws
lawsgoverning
governingtheir
theirbusiness
businesssituation.
situation.

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 Unethical
Unethical Sales
Sales Behaviors
Behaviors Include:
Include:
•• Exaggerating
Exaggeratingfeatures
featuresand andbenefits
benefits
•• Lies
Liesabout
aboutavailability
availability
•• Lies
Liesabout
aboutcompetition
competition
•• Sells
Sellssomething
somethingpeople
peopledon’t
don’tneed
need
•• Giving
Givingfalse
falseanswers
answerstotoquestions
questions
•• Falsifying
Falsifyingproduct
producttestimonials
testimonials
•• Passing
Passingblame
blameforfortheir
theirown
ownmistakes
mistakes
•• Pose
Poseasasmarket
marketresearcher
researcherwhenwhendoing
doingphone
phonesales
sales
•• Misrepresent
Misrepresentwarranties
warranties&&guarantees
guarantees
•• Make
Makenonbinding
nonbindingoraloralpromises
promises
•• Bending
Bendingcompany
companyrules rules
•• Selling
Sellingdangerous
dangerousor orhazardous
hazardousproducts
products
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 Salesperson
Salesperson Competencies
Competencies Involve
Involve
the
the Ability
Ability to:
to:
1.
1. Go
Gobeyond
beyondproduct
productneeds
needstotoassess
assessbusiness
business
potential
potentialand
andadd
addvalue
valueto
tothe
therelationship.
relationship.

2.
2. Understand
Understandthethefinancial
financialimpact
impactof
ofthe
the
decisions
decisionsmade
madeby byyour
yourcompany
companyandandthe
the
client’s
client’sorganization.
organization.

3.
3. Organize
Organizecompany
companyresources
resourcestotobuild
build
customer-focused
customer-focusedrelationships.
relationships.

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 Salesperson
Salesperson Competencies
Competencies Involve
Involve
the
the Ability
Ability to:
to:
4.
4. Organize
Organizecompany
companyresources
resourcestotobuild
build
customer-focused
customer-focusedrelationships.
relationships.

5.5. Develop
Developconsultative
consultativeproblem
problemsolving
solvingand
andaa
willingness
willingnessto
tochange.
change.

6.
6. Establish
Establishaavision
visionof
ofaacommitted
committed
customer/supplier
customer/supplierrelationship.
relationship.

7.
7. Utilize
Utilizeself-appraisal
self-appraisaland
andcontinuous
continuouslearning
learning
by
byrequesting
requestingfeedback
feedbackfrom
fromcustomers,
customers,
colleagues,
colleagues,andandmanagers.
managers.
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 Sales
Sales Manager
Manager Competencies
Competencies
Involve
Involve the
the Ability
Ability to:
to:
1. Provide
1. Provide strategic
strategic vision
vision

2. Organize
2. Organize company
company
resources by
resources by leveraging
leveraging
relationships
relationships

3. Influence
3. Influence company
company
strategy
strategy

4. Coach
4. Coach effectively
effectively

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 Sales
Sales Manager
Manager Competencies
Competencies
Involve
Involve the
the Ability
Ability to:
to:
5. Diagnose
5. Diagnose performance
performance

6. Select
6. Select high-potential
high-potential
salespeople
salespeople

7. Leverage
7. Leverage technology
technology

8. Demonstrate
8. Demonstrate personal
personal
selling effectiveness
selling effectiveness

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