Management and Organizational Studies 2320A/B Lecture Notes - National Do Not Call List, Sales, Personal Selling

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Published on 21 Apr 2013
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Western University
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Management and Organizational Studies
Course
Management and Organizational Studies 2320A/B
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Chapter 16 Textbook Summary Notes
Personal Selling and Sales Promotion
Personal selling: personal presentation by the firm’s sales force for the
purpose of making sales and building customer relationships
One of the oldest professions in the world
Today, most salespeople are well-educated, well-trained, professional who
add value for customers and maintain long-term customer relationships
They listen to their customers, assess customer needs, and organize the
company’s efforts to solve customer problems
Salesperson: an individual representing a company to customers by
performing one or more of the following activities: prospecting,
communicating, selling, servicing, information gathering, or relationship
building
A salesperson might be largely an order taker or an order getter, whose
positions demand creative selling and relationship building for products and
services
The Role of the Sales Force
o Personal selling involves interpersonal interactions between
salespeople and individual customers whether face to face, by
telephone, via email, through video or web conference, or by other
means
o Personal selling can be more effective
o Varies from company to company
Linking the Company with its Customers
o They represent the company to customers
o They represent customers to the company
o To many customers, the salesperson IS the company the only
tangible manifestation of the company that they see
Coordinating Marketing Sales
o The sales force and the firms other marketing functions should work
together closely to jointly create value for both customers and the
company
o Some companies still treat marketing and sales as separate functions
o The marketers sometimes feel that salespersons have their feet stuck
in the mud whereas salespeople feel that the marketers have their
heads stuck in the clouds
o Such disconnects between marketing and sales can damage customer
relationships and company performance
o To fix this, it can increase communication between the two groups by
arranging joint meetings and by spelling out when and with whom
each group should communicate
o The company can also create joint assignments
o A company can also create joint objectives and reward systems for
sales and marketing or appoint marketing-sales liaisons people from
marketing who live with the sales force and appoint a chief revenue
office a high level marketing executive who oversees both marketing
and sales
Sales force management: the analysis, planning, implementation, and
control of sales force activities. It includes designing sales force strategy and
structure, and recruiting, selecting, training, supervising, compensating, and
evaluating the firms salespeople
Sales Force Structure
o A company can divide sales responsibilities along any of several lines
o The decision is simple if the company sells only one product line to
one industry with customers in many locations
o Territorial sales force structure
A sales force organization that assigns each salesperson to an
exclusive geographic territory in which that salesperson sells
the company’s full line
Clearly defines each salespersons job and fixes accountability
Increases the salespersons desire to build local customer
relationships that, in turn, improve selling effectiveness
Used when the company sells only one product line to one
industry with customers in many locations
Salesperson travels within a limited geographic area, travel
expenses are relatively small
Sales merchandisers report to sales representatives, who
report to retail supervisors, who report to directors of retail
sales operations, who report to one of 22 regional sales
managers who report to a general sales manager who report to
a vice president and general sales manager
o Product Sales Force Structure
A sales force organization under which salespeople specialize
in selling only a portion of the company’s products or lines
Can lead to problems, however, if a single large customer buys
many different company products
Travel over the same routes and wait to see the customer’s
purchasing agents
o Customer Sales Force Structure
A sales force organization under which salespeople specialize
in selling only to certain customers or industries
Serving new customers vs. old ones or major accounts vs.
regular accounts
o Complex Sales Force Structure
When a company sells a wide variety of products to many
types of customers over a broad geographic area, it often
combines several types of sales force structures
A good sales structure can mean the difference between
success and failure
Sales Force Size
o Sales forces may range in size from only a few salespeople to tens of
thousands
o They are the most productive and most expensive assets
o A company first groups account into different classes according to
size, account status, or other factors related to the amount of effort
required to maintain them
Other Sales Force Strategy and Structure Issues
o Who will be involved in the selling effort and how many various sales
and sales support people will work together
o Outside and Inside Forces
Outside sales force: outside salespeople who travel to call on
customers in the field
Inside sales force: inside salespeople who conduct business
from their offices via telephone, the internet, or visits from
prospective buyers
Some inside salespeople provide support for the outside sales
force (technical support people)
Sales assistant provide administrative backup for outside
salespeople
Telemarketers and web sellers use the phone and internet to
find new leads and qualify prospects or to sell and service
accounts directly
Telemarketing and web selling can be very effective, less costly
ways to sell to smaller, harder to reach customers
Canada’s National Do Not Call List put a dent in telephone sales
o Team Selling
Using teams of people from sales, marketing, engineering,
finance, technical support, and even upper management of
service large, complex accounts
Might include experts from any area or level of the selling firm
Does have pitfalls
Salespeople are by nature competitive and have often
been trained and rewarded for outstanding individual
performance
May have trouble learning to work with and trust others
on a team
Selling teams can confuse or overwhelm customers who
are used to working with only one salesperson
Difficulties in evaluating individual contributions tot eh
team selling effort can create some sticky compensation
issues
Recruiting and Selecting Salespeople

Document Summary

Personal selling: personal presentation by the firm"s sales force for the purpose of making sales and building customer relationships. One of the oldest professions in the world. Today, most salespeople are well-educated, well-trained, professional who add value for customers and maintain long-term customer relationships. They listen to their customers, assess customer needs, and organize the company"s efforts to solve customer problems. Salesperson: an individual representing a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, or relationship building. A salesperson might be largely an order taker or an order getter, whose positions demand creative selling and relationship building for products and services. Linking the company with its customers: they represent the company to customers, they represent customers to the company, to many customers, the salesperson is the company the only tangible manifestation of the company that they see. Sales force management: the analysis, planning, implementation, and control of sales force activities.