Multimedia Marketing/Marketing.iso/market/chapter7.6p

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SECTION 7.6  Personal Selling Strategy

INSTRUCTIONS Think about how you would go about selling a product of which you
are reasonably familiar, if you held such a job.

EXAMPLE

One of the most successful sales representatives (measuring success
by earnings) of all time was a new car salesman. He averaged two
car sales per day for many years, and grew wealthy in a profession
that many people are not that familiar with.

One of the major strengths of this person was his dedication to
satisfying consumers. He made a major effort to find out what people
wanted and then made an equally diligent effort to locate what they
needed. After a consumer had made a purchase, the salesman contacted
him or her to make sure that satisfaction was securely in place. If
a buyer was not satisfied, the salesman did everything he could to
overcome this situation, including allowing the car to be returned.
This individual carried out his responsibilities in a truly professional
manner. And he became a rich man in the process.

DETAILS

Few professions have borne the brunt of as much stereotyping as
sales and few are so widely misunderstood. Some people have a
negative view of the profession. This stems largely from a
general confusion about salespeople and what they do.

Essentially, many sales representatives, also called "reps", are
highly-trained problems solvers. They focus their efforts on
identifying customer needs and on helping them solve their
problems.

Most companies rely on a "sales force" for their promotion mix
mainstay. This being the case, marketing managers should become
very familiar with this important activity.

About seven million people are employed as salespeople in the U.S.
This amounts to about 7 percent of the work force and is around
14 times as many as are employed in advertising. Personal selling
expenditures generally run about 8 to 10 percent of a company's
sales. Further, most firms do not reduce personal selling expenditures
during economic downturns. When they must downsize, sales reps are
normally among the last to go.

Some people mistakingly assume that all sales jobs and people are
pretty much alike. This is far from the case. Following is a
classification of sales jobs that vary according to their degree
of professionalism:

1. Positions where the sales representative is primary a product
   deliverer (drivers of beer, milk, and fuel trucks).
2. Positions where the sales representative is basically an inside
   order taker (retail clerks in hardware stores).
3. Positions where the sales representative is basically an outside
   order taker (representatives for soap or packing house companies).
4. Positions where the sales representative builds goodwill, instead
   of taking orders (some computer and pharmaceutical sales reps).
5. Positions where a major emphasis is placed on technical knowledge
   of the product or service (sales engineers who serve as consultants
   to their customers).
6. Positions where creative selling of tangible products is necessary
   (jewelry and appliance reps).
7. Positions where creative selling of an intangible item is
   important (sales reps for professional business services).

As you can see, all selling jobs are not alike. Certainly, in the
sphere of professionalism, they differ widely.

PROBLEM 1

Which of the following sales jobs would have the highest degree of
professionalism?

A. A retail clerk in a maternity shop.
B. An outside order taker for a food wholesaler.
C. A stockbroker.
D. A computer store salesperson

WORKED

One of the jobs that requires a very high degree of professionalism
is a stockbroker. This individual is selling an intangible. It is
easier to sell a tangible product, because potential customers can
see, feel, touch, and otherwise examine it. If the product is a good
one it may help sell itself. This is not true for an intangible like
stock. The stockbroker can sell it only through his or her own creative
abilities. Sellers of intangibles must rely upon themselves to create
a demand for their offerings through problem solving and analysis of
customer wants. If they fail in this regard, the product will not
sell itself.

ANSWER  C
INSTRUCTIONS Think about how you would go about selling a product of which you
are reasonably familiar, if you held such a job.

EXAMPLE

One of the most successful sales representatives (measuring success
by earnings) of all time was a new car salesman. He averaged two
car sales per day for many years, and grew wealthy in a profession
that many people are not that familiar with.

One of the major strengths of this person was his dedication to
satisfying consumers. He made a major effort to find out what people
wanted and then made an equally diligent effort to locate what they
needed. After a consumer had made a purchase, the salesman contacted
him or her to make sure that satisfaction was securely in place. If
a buyer was not satisfied, the salesman did everything he could to
overcome this situation, including allowing the car to be returned.
This individual carried out his responsibilities in a truly professional
manner. And he became a rich man in the process.

DETAILS

It is important to realize that a sales representative is unique
among the employees of a firm. To many customers, the representative
is the company--the person who transforms the inanimate object--the
firm--into flesh and blood; a real person who may or may not offer
products that solve the customer's problems, answer complaints,
quote prices, and provide other services. The sales force is also
invaluable in gathering important marketing information about
customers and competition. Whether or not a marketing effort is
successful often depends upon the sales force's ability to satisfy
customer needs.

Personal selling is a powerful weapon in a marketer's promotional
arsenal. This is largely due to its flexibility--its principal
characteristic. Because it uniquely involves direct feedback from
customers through interaction, personal selling enables messages
to be individualized for specific circumstances and potential
customers.

Astute salespersons are able to "read" their audiences through
questions, listen to their concerns, and moniter their gestures
for nonverbal communication. This enables them to instantly adjust
their presentations to the situation, which increases effectiveness.

Further, personal selling can increase the flexibility of an overall
marketing mix. Salespeople  often have considerable latitude in
making adjustments in delivery schedules, credit terms, promotional
allowances, and prices to tailor-making an offering for a prospect.
In fact, salespeople are often instrumental in configuring the
product itself, as where a computer salesperson presents a customized
proposed package of computer hardware, software, maintenance, and
support to a customer.

This flexibility means that personal selling is often far more
effective in conveying messages than other promotional forms. It
is not the only means used, however, as it is not always the most
efficient method. While personal contacts by salespeople for
industrial goods can cost companies hundreds of dollars per call,
the cost of reaching target customers with mass promotion may be
only a few dollars each. Thus, management must make a tradeoff of
efficiency versus effectiveness when deciding how much of each type
of promotion to use.

Personal selling tends to be better than other forms of promotion
when certain factors exist. These are:

1. The product is relatively complex (computers) thus requiring
extensive individualized information and demonstrations either for
users or intermediaries.
2. The purchase represents a major commitment, such as expensive
products (machinery) and those requiring substantial lifestyle or
operating style changes (toupees or a new line of items for a
wholesaler).
3. Advertising and other nonpersonal forms of communication do
not efficiently convey the message, such as for unsought goods
(cemetary plots), items where the marketing mix requires adjustment
for unique needs (professional business services) and where prices
are negotiable (construction).
4. A "pushing" strategy is adopted to get goods through the channel.
With a pushing strategy the company uses sales representatives to get
intermediaries to stock the product. This is the opposite of a "pulling"
strategy, where the company advertises to consumers and assumes that
they will demand that intermediaries stock the product.
5. Margins are relatively high and enable the cost of personal
selling to be absorbed (diamonds versus candy).
6. The marketer's size is relatively small and thus does not enable
efficiencies from mass communication (most industrial firms).
7. Order sizes (measured in dollars) are high, enabling the firm
to cover the costs of sales calls.
8. Promotion messages must be customized for individual potential
buyers.

When these conditions exist, it is likely that personal selling will
be more effective than advertising, sales promotion, and publicity.

PROBLEM 2

An industrial consulting firm is developing a promotion mix and is
considering how much to use personal selling and how much to use
advertising. Which of the following is not one of the advantages of
using personal selling?

A. Personal selling has flexibility and sales representatives can
   individualize their messages for customers.
B. Salespeople have latitude in making adjustments for customers.
C. Sales representatives can provide information to management.
D. Personal selling is usually the most efficient means of promotion.

WORKED

Sales representatives would be advantageous to an industrial consulting
firm in a number of ways. Sales representatives have flexibility and can
individualize their messages for customers. In industrial consulting
this is important as the consulting needs of individual clients often
vary. Salespeople have latitude in making adjustments for customers.
This too is important in industrial consulting. The personalized
nature of the service requires that salespeople be able to consider
the specific demands of each client and to tailor-make a package of
utilities that will satisfy each. Sales representatives can provide
information to management. They can inform management as to the
conditions in the marketplace--what customers want and what rivals
are doing--so that management can make adjustments for these.
Sales representatives are not necessarily efficient means of promotion.
If the consulting firm wants a low cost per contact, advertising
would be superior.

ANSWER  D
INSTRUCTIONS Think about how you would go about selling a product of which you
are reasonably familiar, if you held such a job.

EXAMPLE

One of the most successful sales representatives (measuring success
by earnings) of all time was a new car salesman. He averaged two
car sales per day for many years, and grew wealthy in a profession
that many people are not that familiar with.

One of the major strengths of this person was his dedication to
satisfying consumers. He made a major effort to find out what people
wanted and then made an equally diligent effort to locate what they
needed. After a consumer had made a purchase, the salesman contacted
him or her to make sure that satisfaction was securely in place. If
a buyer was not satisfied, the salesman did everything he could to
overcome this situation, including allowing the car to be returned.
This individual carried out his responsibilities in a truly professional
manner. And he became a rich man in the process.

DETAILS

To make better marketing decisions, all marketing managers should be
at least familiar with the orderly process that effective salespeople
take in performing their jobs. The steps in the personal selling
process are:

1. Presale preparation
2. Prospecting
3. Planning a route
4. Sales presentation
5. Postsale activity

Presale preparation involves becoming intimately familiar with
the company's (and competitor) products so that customer problems
can be effectively solved by the salesperson. Company training
programs and personal study of new developments by each salesperson
are essential for effective performances.

Prospecting involves developing a list of names of potential customers
who are most likely to purchase. The idea is to minimize wasted
time calling on those who have little or no probability of purchase.
This involves:
  . Formulating prospect definitions--developing demographic and
sometimes psychographic profiles of those who are likely to buy.
  . Searching for potential accounts--developing a list of potential
customers who meet the prospect characteristics definition.
  . Qualifying prospects--evaluating prospects along a set of
criteria to establish if they have a need for the product or service,
if they have the money to make a purchase, and if they have the
authority to make a purchase.
  .Relating company products to prospect requirements--attempting
to solve the prospect's particular problems with company products.

PROBLEM 3

A producer of air compressors for use around the home and in
bicycle shops is in the process of deciding how to qualify
retail store prospects. Which of the following is not one of the
criteria that should be used?

A. Does the retailer have the authority to make a purchase?
B. Does the retailer have the money to make a purchase?
C. Does the retailer need the product?
D. Does the retailer have a track record of buying from the producer?

WORKED

A producer of air compressors for use around the home and in
bicycle shops is in the process of deciding how to qualify
retail store prospects. The producer should consider if the
retailer has the authority to make a purchase. In some retail
chains purchasing decisions are not made by the retail store
manager but by a central buying committee. The manager does not
qualify as a good prospect. Also the producer should determine
if the retailer has the money to make a purchase. The producer
may have a minimum purchase quantity that the retailer cannot
meet. Finally, the producer should determine if the retailer has
a need for the product. Perhaps the retailer already stocks a
competing brand of air compressor and has no need for this one.

ANSWER D
INSTRUCTIONS Think about how you would go about selling a product of which you
are reasonably familiar, if you held such a job.

EXAMPLE

One of the most successful sales representatives (measuring success
by earnings) of all time was a new car salesman. He averaged two
car sales per day for many years, and grew wealthy in a profession
that many people are not that familiar with.

One of the major strengths of this person was his dedication to
satisfying consumers. He made a major effort to find out what people
wanted and then made an equally diligent effort to locate what they
needed. After a consumer had made a purchase, the salesman contacted
him or her to make sure that satisfaction was securely in place. If
a buyer was not satisfied, the salesman did everything he could to
overcome this situation, including allowing the car to be returned.
This individual carried out his responsibilities in a truly professional
manner. And he became a rich man in the process.

DETAILS

The next step in selling is to establish a route to follow. Rather
than wasting time aimlessly calling on prospects, effective
salespeople carefully plan their calls and make appointments ahead
of time to reduce wasted time.

The fourth step is the actual sales presentation itself. In all
cases, the emphasis should be on solving the customer's problems.
Beyond this the presentation should be structured such that the
promotional message is effectively communicated.

Certain principles are useful in the presentation. The rep should
attempt to be a creative problem solver for prospects. Creativity
in identifying new, previously unrecognized solutions to prospects'
problems is essential to successful sales effort.

Sales representatives should be committed to solving the needs of
prospects. Ideally the prospect and the sales representative will
work together as partners to solve the problems of the prospect.

Effective sales representatives ask questions and observe. They
listen to prospects to find out about their needs. This involves
asking questions and observing the customer's operations as well
as his or her body language (nonverbal communications conveyed by
gestures, posture, and so on).

Participation is important. Getting the prospect to participate in
the sales presentation is much more effective than presenting a
message to a passive audience. Having the prospect try the product,
such as a personal computer, is much more effective than merely
describing the virtues

Salespeople should have empathy. They should be able to mentally
place themselves in the place of the prospect. This helps to gain
an understanding of the prospect's perspective and leads to more
effective presentations.

The final step in personal selling is postsale activity. Sales
reps do not discharge their responsibilities when they take an order.
A host of postsale activities are almost always needed to assure
full customer satisfaction. At the minimum, orders should be followed
up to ensure that deliveries arrive on time. Other actions include
making sure that proper product installation is made, that the right
items are received in good condition, and that the right quantities
arrive. Many of the most successful salespeople even contact
customers after they have used the items for a while to make sure
that they are satisfied.

If the personal selling process is done correctly, sales representatives
will develop a relationship with customers over a period of time.
This is essential, because repeat orders are a key to sales success.
Getting one order from a prospect may not be especially profitable
to the company or the rep. Repeat business, brought about through a
satisfying relationship, is essential.

PROBLEM 4

In order to be effective, sales representatives for a hardware
wholesaler should do all of the following in their presentations
except:

A. Get prospects to participate in the presentation.
B. Demonstrate vividly how inferior rivals' products are.
C. Ask questions and observe.
D. Develop empathy with customers.

WORKED

In order to be effective, sales representatives for a hardware
wholesaler should follow certain steps. They should get prospects to
participate in the presentation. Teachers have known for years that
student participation assists learning. The same is true for selling.

The reps should get prospects to try, feel, hold, and talk about
the product, in order to generate participation. The reps should
also ask questions and observe. They should take advantage of two-
way communication and allow prospects to reveal their problems and
needs. Only by doing this can the reps be true problem solvers. Also
the reps should develop empathy with customers. They should be able
to put themselves in the shoes of prospects and imagine what their
needs are and how these can be solved. Experience indicates that
it is a mistake to run down rivals' products. Most prospects will
perceive this as evidence of a lack of professionalism and will
react negatively.

ANSWER  B