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 encount

hy 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
Product has
has aa high
high value
value

Product
Product is
is custom
custom made
made

Product
Product is
is technically
technically complex
complex

There
There are
are few
few customers
customers

Customers
Customers are
are concentrated
concentrated

Selling
Selling image,
image, not
not product
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
Personal selling
selling involves
involves the
the
two-way
two-way flow
flow of
of communication
communication
between
between aa buyer
buyer and
and seller,
seller,
often
often in
in aa face-to-face
face-to-face
encounter,
encounter, designed
designed to
to
influence
influence aa person’s
person’s or
or
group’s
group’s purchase
purchase decision.
decision.
Personal Selling Process

The
The personal
personal selling
selling process
process consists
consists
of
of six
six stages:
stages: (1)
(1) prospecting,
prospecting,
(2)
(2) preapproach,
preapproach, (3)
(3) approach,
approach,
(4)
(4) presentation,
presentation, (5)
(5) close,
close, and
and
(6)
(6) follow-up.
follow-up.
 Adaptive Selling

Adaptive
Adaptive selling
selling involves
involves adjusting
adjusting
the
the presentation
presentation to
to fit
fit the
the selling
selling
situation,
situation, such
such as
as knowing
knowing whenwhen toto
offer
offer solutions
solutions and
and when
when to to ask
ask for
for
more
more information.
information.
 Consultative Selling

Consultative
Consultative selling
selling focuses
focuses on
on
problem
problem identification,
identification, where
where the
the
salesperson
salesperson serves
serves as
as an
an expert
expert on
on
problem
problem recognition
recognition and
and resolution.
resolution.