16-1

PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong

Chapter 16
Personal Selling and
Sales Management

Copyright 1999 Prentice Hall

The Nature of Personal Selling 16-2

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 Role of the Sales Force 16-3

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
 16-4
Managing the Salesforce

Designing Salesforce Strategy and Structure

Recruiting and Selecting Salespeople

Training Salespeople

Compensating Salespeople

Supervising Salespeople

Evaluating Salespeople

Copyright 1999 Prentice Hall

Designing Sales Force Strategy 16-5

and Structure

Types of Sales Force Structure

Territorial
Exclusive Territory to
Sell the Companys
Full Product Line Product
Sales Force Sells Along
Product Lines Customer
Sales Force Sells Along
Customer/ Industry Lines

Complex
Combination of Above Types of Sales Force Structures

Copyright 1999 Prentice Hall

Designing Sales Force Strategy 16-6

and Structure

Sales Force Size

Other Sales Force Strategy and Structure Issues

Who Will Be Involved in the How Will Sales and Sales Support
Selling Effort? People Work Together?
Outside Sales Force Team Selling
Inside Sales Force

Copyright 1999 Prentice Hall

 16-7
Recruiting and Selecting
Salespeople

Some Characteristics Enthusiasm and Self-Confidence

Persistence
of Salespeople Initiative
Job Commitment

Current Salespeople
Recruiting Procedures Employment Agencies
Classified Ads
College Campuses

Salesperson Selection Sales Aptitude

Analytical & Organizational Skills
Process Personality Traits
Other Characteristics

Copyright 1999 Prentice Hall

 16-8
Training Salespeople
The Average Sales Training Program lasts for Four Months and
Has the Following Goals:

Help Salespeople Know & Identify

With the Company

Learn How the Products Work

Learn About Competitors

and Customers Characteristics

Learn How to Make

Effective Presentations

Understand Field Procedures

and Responsibilities
Copyright 1999 Prentice Hall
 16-9
Compensating Salespeople
Sales Force Compensation Plans Can Both Motivate
Salespeople and Direct Their Activities.
Salary

Benefits Components
of
Compensation
Bonus

Commission

Copyright 1999 Prentice Hall

Supervising Salespeople 16-10

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 Salespeople Spend Their Time 16-11

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%

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Evaluating Salespeople 16-12

Expense Sales
Reports Report

Sources
of
Call Information Work
Reports Plan

Annual
Territory
Marketing Plan
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Steps in the Selling Process 16-13

Identifying and Screening For

Step 1. Prospecting and Qualifying Qualified Potential Customers.

Learning As Much As Possible

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

Step 3. Approach Knowing How to Meet the

Buyer to Get the Relationship
Off to a Good Start.

Step 4. Presentation/ Demonstration Telling the Product Story to

the Buyer, and Showing the
Product Benefits.

Copyright 1999 Prentice Hall

Steps in the Selling Process 16-14

Seeking Out, Clarifying, and

Step 5. Handling Objections Overcoming Customer
Objections to Buying.

Step 6. Closing Asking the Customer for the

Order.

Step 7. Follow-Up Following Up After the Sale to

Ensure Customer Satisfaction
and Repeat Business.

Copyright 1999 Prentice Hall

Relationship Marketing 16-15

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