Personal Selling and Sales

Management
Chapter 17

Introduction to Sales Personnel

Importance of personal sales:
Direct link to the customer
Most customers see the sales person as the
company
Designing the sales force internationally is
one of the most important functions of the
marketing department

A salesman is someone who sells

goods that wont come back to
customers who will. (Anonymous)

Steps
Steps in
in the
the Selling
Selling Process
Process
Step
Step1.
1. Prospecting
Prospectingand
andQualifying
Qualifying

Identifying and Screening For

Qualified Potential Customers.

Step
Step 2.
2. Preapproach
Preapproach

Learning As Much As Possible

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.

Steps
Steps in
in the
the Selling
Selling Process
Process
Step
Step5.
5. Handling
HandlingObjections
Objections

Step
Step 6.
6. Closing
Closing

Step
Step7.
7. Follow-Up
Follow-Up

Seeking Out, Clarifying, and

Overcoming Customer
Objections to Buying.

Asking the Customer for the

Order.

Following Up After the Sale to

Ensure Customer Satisfaction
and Repeat Business.

Factors Affecting the Importance of Personal Selling in

the PromotionalConditionsThatFavor
Mix
Variable
ConditionsThatFavor
Consumer

Product

Price
Channels

PersonalSelling

Advertising

Geographically
concentrated
Relativelylownumbers
Expensive
Technicallycomplex
Custommade
Specialhandling
requirements
Transactionsfrequently
involvetradeins
Relativelyhigh

Geographicallydispersed

Relativelyshort

Relativelylong

Relativelyhighnumbers
Inexpensive
Simpletounderstand
Standardized
Nospecialhandling
requirements
Transactionsseldom
involvetradeins
Relativelylow

The Evolution of Personal Selling

Todays salesperson is usually a highly-trained
professional
Sales professionals take a customer-oriented
approach employing truthful,
nonmanipulative tactics in order to satisfy the
long-term needs of both the customer and the
selling firm
Todays professional salespeople are problem
solvers who seek to develop long-term
relationships with customers

Four Sales Channels

Over-the-counter selling: personal
selling conducted in retail and some
wholesale locations in which customers
come to the seller place of business
Field selling: sales presentations made
at prospective customers homes or
businesses on a face-to-face basis

Four Sales Channels

Telemarketing: promotional presentation
involving the use of the telephone on an
outbound basis by salespeople or on an
inbound basis by customers who initiate calls
to obtain information and place orders
Inside selling: performing the functions of
field selling but avoiding travel-related
expenses by relying on phone, mail, and
electronic commerce to provide sales and
product service for customers on a continuing
basis

I. Designing & Recruiting Sales Personnel

3 Ways to Design Sales Force
1. Expatriates
2. Local Nationals
3. Third Country Nationals

Advantages/Disadvantages of all 3:
1. Expatriates (declining)
Advantages
Used most when products are highly technical or
requires a lot of information in order to sell
Familiar with headquarters policies, procedures
Opinions/Ideas are valued more by home office

I. Designing & Recruiting Sales Personnel

Disadvantages
High cost
Cultural and legal barriers
Difficult to recruit many highly skilled will
not re-locate overseas

Other type of Expatriates

Virtual Expatriates
Created by the internet and other
advanced types of communications, where
they manage operations in other countries,
but do not move to that country.

I. Designing & Recruiting Sales Personnel

2. Local Nationals
Advantages

Most knowledgeable about culture, legal

environments, business structure, distribution
networks
Disadvantages
Home office does not see as the experts in the field
Seen as not being familiar with home office
procedures, policies
Not the experts on the products
Difficult to recruit most skilled and knowledgeable
Recruiting the best may mean taking away from
another company or competitor this goes against
some cultural believes where loyalty is important
Crossing Borders 17.3 pg. 521 -Avon calling or not?

I. Designing & Recruiting Sales Personnel

3. Third-Country Nationals
Advantages
If recruited within same area most are familiar
with culture, language, how to conduct
business

Disadvantages
Host country does not see individual as one of
their own
Many of the same disadvantages to a smaller
scale with the expatriate.

Selecting Sales and Marketing Personnel

To
To select
select personnel
personnel for
for international
international marketing
marketing positions
positions
effectively,
effectively, management
management must
must choose
choose individuals
individuals who
who have
have the
the
following
following traits:
traits:
1.
1. Maturity
Maturity

4.
4. Flexibility
Flexibility

2.
2. Emotional
Emotional Stability
Stability

5.
5. Cultural
Cultural Empathy
Empathy

3.
3. Breadth
Breadth of
of Knowledge
Knowledge

6.
6. Energetic
Energetic and
and
7.
7. Enjoy
Enjoy Travel
Travel

III. Training Sales Personnel

Types and method of training differs
depending upon type of sales structure
1. Expatriates
Focus is on culture, customs, special foreign issues (not on
products, selling methods, home office policies..)

2. Local Nationals/Third-County Nationals

Focus on product knowledge
More continual training
Methods of training need to be adapted to recipients way
of learning

Internet is facilitating faster and more efficient

learning for all types of sales structures

IV. Motivating Sales Personnel

What motivates people varies from culture to
culture
Though some similarities exist in certain cultures, many
cultures vary in a number of areas (individual bonuses
vs. group bonuses; compensation vs. personal growth,
etc)

Designing Compensation Systems

Expatriates
Things to consider
Countries with high taxes, prefer larger expense accounts, fringe
benefits (things that are non-taxable)
Where the company is multi-national, sales personnel will compare
compensation plans from home country to re-assigned country

Compensating
Compensating Salespeople
Salespeople
Sales Force Compensation Plans Can Both Motivate
Salespeople and Direct Their Activities.

Salary

CK
E
CH
Y
PA

Benefits

Components
of
Compensation

Commission

Bonus

IV. Motivating Sales Personnel

2. Global Sales Force
Allows for most flexibility in creating
compensation plans
See dos and donts of global compensation
pg. 532

Preparing U.S. Personnel for

Foreign Assignments
Obstacles to overcome
1. Reluctance to accept foreign assignment due to:
Concerns for career and family (most common)
Career fears relate to out of sight, out of mind
Family is uprooted in a very different environment

2. Reducing the rate of early returns

Unsuccessful family adjustment is the single most important
reason for early returns.

3. Ensuring successful return home

Need to have a personal career plan designed to
successfully transition the individual and family back to their
home country.

Important Points in Recruiting

Sales Personnel & Managers

Important characteristics/skills to
look for when recruiting:
Cross-cultural skills
More important in most cases than
technical skills

Language skills
Many believe that the more fluent in
languages, the more culturally sensitive
Crossing Borders 17.6 pg. 525

Evaluating
Evaluating
Salespeople
Salespeople

Expense
Expense
Reports
Reports

Call
Call
Reports
Reports

Sales
Sales
Report
Report
Sources
Sources
of
of
Information
Information
Annual
Annual
Territory
Territory
Marketing
Marketing Plan
Plan

Work
Work
Plan
Plan

Relationship Marketing
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.