CHAPTER PERSONAL SELLING AND SALES MANAGEMENT Definition of Personal Selling Personal selling – 1) two-way flow of communication 2) between a buyer and seller 3) a face-to-face or real time encounter Why are “ face to face” and “two-way” important? Advantages of Personal Selling • Provides a detailed explanation or demonstration of product • Message can be varied to fit the needs of each prospective customer • Can be directed to specific qualified prospects • Instant feedback • Personal persuasion can be used “A good salesman can get you to buy ice in winter” When to Use Personal Selling Product has a high value Product is custom made Product is technically complex There are few customers Customers are concentrated Selling image, not product Creating Value Through Salespeople Relationship Selling building ties to the customer, based on a salesperson’s attention and commitment to customer needs over time. Six stages of Personal Selling 1) Prospecting 2) Pre-approach 3) Approach 4) Presentation 5) Close 6) Follow-Up Personal Selling: Prospecting Prospect- possible customer Qualified Prospect-customer who has desire, means and power to decide Cold Canvassing- seller initiated contact of,potential customers without advance warning. Personal Selling: Pre- Approach & Approach 2) Pre-approach-Gathering information (when to call, income level, risk tolerance) 3) Approach-First meeting (Physical impressions highly important- appearance, timeliness, confidence) Personal Selling:Presentation A) Stimulus-Response Format – (suggestive selling) keep suggesting items until the buyer responds, like the McDonalds order taker B) Formula Selling Format – more formal and planned, like a telemarketer Canned Selling Presentation Memorized, standardized message conveyed to every prospect. Works when seller is a novice or does not know the buyer well Personal Selling: Presentation Need-Satisfaction Format- Let the customer do the talking- Salesman probes, listens then suggests, like a financial planner • Adaptive Selling- pro-active but selective presentation of offerings, based on pre-approach data • Consultative Selling – re-active presentation for problem solution Personal Selling: Presentation Handling Objections • Acknowledge and Convert the Objection- use the objection as a reason to buy (expensive) •Postpone hold off answer because next info will convince buyer (complicated) •Agree and Neutralize show the objection’s insignificance (side effects) •Denial refute objection with clear facts Personal Selling: Close • Trial Close-”Can I put you down for blue or green?” •Assumptive Close-ask about delivery or warranty choices. • Urgency Close-”Offer valid for today only.” • Final Close-Buyer initiated acceptance of the sale. Personal Selling: Follow-Up Address concerns with delivery and installation, so today’s customer becomes tomorrow’s qualified prospect or referral source Sales Force Motivation • Compensation • Straight Salary Compensation Plan • Straight Commission Compensation Plan • Combination Compensation Plan Sales Force Evaluation Quantitative Assessments – sales quotas easy but ignores selling environment Qualitative Assessments – behavioral evaluations •attitude •attention • product knowledge •selling skills •appearance and professionalism Personal Selling Personal selling involves the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision. Personal Selling Process The personal selling process consists of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up. Adaptive Selling Adaptive selling involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information. Consultative Selling Consultative selling focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution.