16-1

16-1

PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong

Chapter
Chapter 16
16
Personal Selling and
Sales Management

Copyright 1999 Prentice Hall

The
The Nature
Nature of
of Personal
Personal Selling
Selling
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Involves an individual acting for a company by

performing one or more of the following activities:
Prospecting,
Communicating,
Servicing,
Information Gathering.

The term salesperson covers a wide spectrum of

positions from:
Order Taking (department store salesperson)
Order Getting (someone engaged in creative selling)
Missionary Selling (building goodwill or educating
buyers)

Copyright 1999 Prentice Hall

The
The Role
Role of
of the
the Sales
Sales Force
Force
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Personal Selling is effective because

salespeople can:
probe customers to learn more about their problems,
adjust the marketing offer to fit the special needs of
each customer,
negotiate terms of sale,
build long-term personal relationships with key
decision makers.

The Sales Force serves as a critical link between

a company and its customers since they:
represent the company to customers, and
represent customers to the company.

Copyright 1999 Prentice Hall

Managing
Managing the
the Salesforce
Salesforce
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Designing
Designing Salesforce
Salesforce Strategy
Strategy and
and Structure
Structure

Recruiting
Recruiting and
and Selecting
Selecting Salespeople
Salespeople

Training
Training Salespeople
Salespeople

Compensating
Compensating Salespeople
Salespeople

Supervising
Supervising Salespeople
Salespeople

Evaluating
Evaluating Salespeople
Salespeople
Copyright 1999 Prentice Hall
Designing
Designing Sales
Sales Force
Force Strategy
Strategy
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and
and Structure
Structure

Types
Types of
of Sales
Sales Force
Force Structure
Structure

Territorial
Territorial
Exclusive
ExclusiveTerritory
Territoryto
to
Sell
Sellthe
theCompanys
Companys
Full Product Line Product
Product
Full Product Line Sales Force
Sales ForceSells
SellsAlong
Along
Product
ProductLines
Lines Customer
Customer
Sales
SalesForce
ForceSells
SellsAlong
Along
Customer/
Customer/Industry
IndustryLines
Lines

Complex
Complex
Combination
Combination of
ofAbove
AboveTypes
Typesof
of Sales
SalesForce
ForceStructures
Structures

Copyright 1999 Prentice Hall

Designing
Designing Sales
Sales Force
Force Strategy
Strategy
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and
and Structure
Structure

Sales
Sales Force
Force Size
Size

Other
Other Sales
Sales Force
Force Strategy
Strategy and
and Structure
Structure Issues
Issues

Who
WhoWill
WillBe
BeInvolved
Involvedininthe How
the HowWill
WillSales
Salesand
andSales
SalesSupport
Support
Selling
SellingEffort? People
Effort? PeopleWork
WorkTogether?
Together?
Outside
OutsideSales
SalesForce Team
Force TeamSelling
Selling
Inside
InsideSales
SalesForce
Force

Copyright 1999 Prentice Hall

Recruiting
Recruiting and
and Selecting
Selecting
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Salespeople
Salespeople

Some Enthusiasm
SomeCharacteristics
Characteristics Enthusiasmand
Persistence
andSelf-Confidence
Self-Confidence
of Persistence
ofSalespeople
Salespeople Initiative
Initiative
Job
JobCommitment
Commitment

Current
CurrentSalespeople
Salespeople
Recruiting
Recruiting Procedures
Procedures Employment
EmploymentAgencies
Agencies
Classified Ads
Classified Ads
College
CollegeCampuses
Campuses

Salesperson
SalespersonSelection
Selection Sales
SalesAptitude
Aptitude
Analytical
Analytical&&Organizational
OrganizationalSkills
Skills
Process
Process Personality Traits
Personality Traits
Other
OtherCharacteristics
Characteristics

Copyright 1999 Prentice Hall

Training
Training Salespeople
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Salespeople
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The Average Sales Training Program lasts for Four Months and
Has the Following Goals:
Help
Help Salespeople
Salespeople Know
Know && Identify
Identify
With
With the
the Company
Company

Learn
Learn How
How the
the Products
Products Work
Work

Learn
Learn About
About Competitors
Competitors
and
and Customers
CustomersCharacteristics
Characteristics

Learn
Learn How
How to
to Make
Make
Effective
Effective Presentations
Presentations

Understand
Understand Field
Field Procedures
Procedures
and
and Responsibilities
Responsibilities
Copyright 1999 Prentice Hall
Compensating
Compensating Salespeople
Salespeople
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Sales Force Compensation Plans Can Both Motivate

Salespeople and Direct Their Activities.

Salary K
C
HE
AYC
P

Components
Benefits of
Compensation
Bonus

Commission

Copyright 1999 Prentice Hall

Supervising
Supervising Salespeople
Salespeople
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Directing Motivating
Salespeople Salespeople
Identify Customer Targets Organizational Climate
& Set Call Norms
Sales Quotas
Develop Prospect Targets Positive Incentives

Use Sales Time Efficiently Honors

Annual Call Schedule Awards
Time-and-Duty Analysis
Sales Force Automation Merchandise/ Cash
Trips

Copyright 1999 Prentice Hall

How
How Salespeople
Salespeople Spend
Spend Their
Their Time
Time
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Administrative
Service Calls Tasks
12% 17%
Companies
Telephone Look For Ways
Selling to Increase the
21%
Face-to-Face Amount of
Selling Time
30%
Salespeople
Waiting/
Traveling Spend Selling.
20%

Copyright 1999 Prentice Hall

Evaluating
Evaluating Salespeople
Salespeople
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Expense
Expense Sales
Sales
Reports
Reports Report
Report

Sources
Sources
of
of
Call
Call Information
Information Work
Work
Reports
Reports Plan
Plan

Annual
Annual
Territory
Territory
Marketing
Marketing Plan
Plan
Copyright 1999 Prentice Hall
Steps
Steps in
in the
the Selling
Selling Process
Process
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Identifying and Screening For

Step
Step1.
1. Prospecting
Prospectingand
andQualifying
Qualifying Qualified Potential Customers.

Learning As Much As Possible

Step
Step 2.
2. Preapproach
Preapproach About a Prospective Customer
Before Making a Sales Call.

Step
Step3.
3. Approach
Approach Knowing How to Meet the
Buyer to Get the Relationship
Off to a Good Start.

Step
Step4.
4.Presentation/
Presentation/Demonstration
Demonstration Telling the Product Story to
the Buyer, and Showing the
Product Benefits.

Copyright 1999 Prentice Hall

Steps
Steps in
in the
the Selling
Selling Process
Process
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Seeking Out, Clarifying, and

Step
Step5.
5. Handling
HandlingObjections
Objections Overcoming Customer
Objections to Buying.

Step
Step 6.
6. Closing
Closing Asking the Customer for the
Order.

Step
Step7.
7. Follow-Up
Follow-Up Following Up After the Sale to
Ensure Customer Satisfaction
and Repeat Business.

Copyright 1999 Prentice Hall

Relationship
Relationship Marketing
Marketing
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Process of creating, maintaining,

and enhancing strong, value-laden
relationships with customers and
other stakeholders.

Based on the idea that important

accounts need focused and
continuous attention.

Copyright 1999 Prentice Hall