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Chapter 16

Chapter 16 Notes


Department
Management (MGM)
Course Code
MGMA01H3
Professor
Tarun Dewan
Chapter
16

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Chapter 16:
Personal Selling
The Nature of Personal Selling
Personal selling personal presentation by the firms sales force for the purpose of
making sales and building customer relationships
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
Order taker department store salesperson standing behind the counter
Order getters position demand creative selling and relationship building for
products and services
The Role of the Sales Force
Personal selling involves interpersonal interactions between salespeople and
individual customers
Can be more effective than advertising in more complex selling situations
Salespeople can probe customers to learn more about their problems and then
adjust the marketing offer and presentation to fit the special needs of each
customers
Companies that sell business products and services, salespeople work directly
with customers
Consumer product companies, the sales force plays an important behind-the-
scenes role. It works with wholesalers and retailers to gain their support and
to help them be more effective in selling the company’s products
1.Linking the Company with Its Customers
a.sales force represent the company to customers
i. find and develop new customers and communicate information
about the company’s products and services
b.salespeople also represent customers to the company
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i.relay customer concerns about company products and actions
back inside to those who can handle them
c.salespeople is the company
i.strong relationships with the salesperson will result in strong
relationships with the company and its products
2.Coordinating Marketing and Sales
a.Sales force and the firms other marketing functions should work
together more familiar with each others ways of thinking and acting
a. Increase communications between two groups by arranging
joint meetings and by spelling out when and with whom each
group should communicate
b.Create joint assignments
i.Marketers should go along sales calls, sit in on
important account-planning sessions
ii.Salespeople should help to develop marketing plans, sit
in on product-planning reviews and share their deep
knowledge about customers’ purchasing habits
iii.They should preview ad and sales promotion campaigns
iv.Generate a playbook for expanding business with the
top 10 accounts in each market segment
v.Plan events and conferences
c.Create joint objectives and reward systems
i.Marketing-sales liaisons people from marketing who
live with the sales force and help to coordinate
marketing and sales force programs and efforts
ii.Chief revenue officer (chief customer officer) a high-
level marketing executive who oversees both marketing
and sales can help infuse marketing and sales with
the common goal of creating value for customers to
capture value in return
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Managing The Sales Force
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
Designing Sales Force Strategy and Structure
1.Sales Force Structure
a.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
i.Clearly defines each salespersons job and fixes accountability
ii.A territorial sales organization is often supported by many
levels of sales management positions
b.Product Sales Force Structure a sales force organization under
which salespeople specialize in selling only a portion of the company’s
products or lines
i.For large and complex company
ii.Extra costs for traveling over the same routes and wait to see
the same customers purchasing agents
c.Customer Sales Force Structure a sales force organization under
which salespeople specialize in selling only to certain customers or
industries
i.Separate sales force set up for different industries, for serving
current customers versus finding new ones, and for major
accounts versus regular accounts
ii.Many companies even have special sales forces set up to handle
the needs of individual large customers
iii.Company is broken up into separate divisions dedicated to
specific customers
d.Complex Sales Force Structures when company sells a wide variety
of products to many types of customers over a broad geographic area
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