Topic 05-Personal Sales Management

Question 1

Sources of Communication (4)

Answer 1

1) Personal communication, marketer sponsored:
-salespersons, DM to customers
-targetet emails and display ads
2) Personal communication, non-marketer sponsored:
Friends and family
-physical
-email/calls
-trial/sampling, personal experience
3) Mass Communication, market sponsored:
-TV/Radio/Print, PR, Spam, Blogs; Social Media, etc.
4) Mass communication, non marketer sponsored
Publicity by third parties
-objective customer blogs, reports
-ex.: Stiftung Warentest

Question 2

Stages in buying process (7)

Answer 2

1) Unawareness
2) Awareness
3) knowledge
4) Like/Dislike
5) Preference
6) Conviction
5) Purchase

Question 3

Transactional selling (5)

Answer 3

• get new accounts
• get the order
• cut price to get the sale
• manage all acounts to maximise short term sales
• sell to anyone

Question 4

Relationship selling

Answer 4

• retain existing accounts
• become the preferred supplier
• price for profit
• manage each account for long term profit
• concentrate on high-profit-potential accounts

Question 5

Characteristics of modern selling (6)

Answer 5

1) Problem solving/system selling
2) Adding value/satisfying need
3) customer retention & deletion
4) Database and knowledge management
5) Customer relationship management
6) marketing the product

Question 6

Definition: Personal Selling

Answer 6

Personal selling involves one-to-one communication, proving essential for certain product types and business markets. It is needed when a firm engages in a push strategy.

Question 7

Definition: Salesperson

Answer 7

A person who represents a company directly to customers by performing several sales activities.

Question 8

Types of sales jobs (6)

Answer 8

1) Team selling
2) Order getter
3) New-business salesperson
4) Missionary salesperson
5) Technical specialist
6) Order taker

Question 9

Definition: Team selling

Answer 9

Team selling is required for pigger products that are more complex so that several experts are required to explain certain aspects of it, meaning that the salespeople need to act as a team to get the sale.

Question 10

Definition: Order getter

Answer 10

First line salespeople who have to presuade the customer to buy a product. They also want to maintain good relations with the customer. He does a lot of cold calling and visits.

Question 11

Definition: New-business salesperson

Answer 11

This involves a salesperson who wants to sell to new businessmarket or environment, the company never sold befor. Ex.: Chinese ariplane manufacturers who want to sell to european market.

Question 12

Definition: Missionary salesperson

Answer 12

Somebody who sells ideas and solutions. These might be produced later. (ex: Pharmaceutical salespeople to doctors).

Question 13

Definition: Technical specialist

Answer 13

Somebody who also takes care of maintenance and can help in selling situations activities but wants to sell you something at the same time.
(ex.: 1&1, telecompany: customer service but want to sell an e-scooter)

Question 14

Definiton: Order taker

Answer 14

The typical person at the counter who simply registers your order.

Question 15

The sales process (8)

Answer 15

1) Prospecting and qualifying
2) Pre-approach
3) Approach
4) Need assesment
5) Presentation/the pitch
6) Meeting objectives
7) Closing
8) Follow-up and service

Question 16

Definition: Prospecting

Answer 16

• Process by which salespeople identify and develop a list of possible customers
• via directories and commercial databases, search engines, customer referrals, trade shows and cold calling.

Question 17

Definition: Qualifying

Answer 17

• Process of identifying good prospects and screening out poor ones; good prospect=MAD buyer
• Once the prospects are identified, the salesperson must then qualify leads.

Question 18

MAD Buyer

Answer 18

M - Money to spend
A - Authority to buy
D - Desire to buy

Question 19

Definition: Pre-approach

Answer 19

At this stage, the salesperson learns as much as possible about a prospective customer before making a sales call.

Question 20

Definition: Approach

Answer 20

Salesperson meets the buyer and gets the relationship off to a good start (first impressions very important!).

Question 21

Importance first impression

Answer 21

• A good approach makes a favorable impression and establishes some degree of rapport between the salesperson and the buyer
• good to have an ice breaker (ex.: fish and lemon in a pitcher of water)

Question 22

Definition: Need assesment

Answer 22

At this stage, the salesperson mus discover, clarify and understand the buyer’s needs via the following steps:

1) Questioning the customer
2) Need identification
3) Pre-commitment (to find out what is needed to be convinced)

Question 23

Definition: Presentation

Answer 23

• Now the salesperson tells the product “story” to the buyer using the need-satisfaction approach.
• Presentation is usually referred to as a discussion of those product and/or service features that the customer has indicated as important to them.

Question 24

Tips for effective presentations (6)

Answer 24

1) Built around a forceful product demonstration
2) Adaptive selling is better then a prepared presentation (pitch adapted to customers needs and wants)
3) KISS- Keep it short & simple
4) Talk prospects language
5) Stress the application of the product/service to the prospects situation
6) Seek credibility at every turn

Question 25

Definition: Handling (meeting) objections

Answer 25

Here the salesperson seeks out, clarifies and overcomes customer objections to buying.
-These should be welcomed as opportunities, because they indicate that the prospect has some interest in the proposition.

Question 26

Types of objections (4)

Answer 26

1) Price or value objections
2) Product or service objections
3) Procrastinating objections
4) Hidden objections (racism etc…)

Question 27

Definition: Closing

Answer 27

Finally, the salesperson asks the customer for an order. Closing the deal has to be anti-climactic and yes/no questions should be avoided to avoid rejection.

Question 28

Common sales closes (3)

Answer 28

1) Assumptive close (SP assumes that the customer wants to buy the product)
- Now what size do you want? You have to sign here.
2) Special offer close
3) Summary close (Summerizing features and benifits)
- summary + we can deliver it until…

Question 29

Definition: Follow-up

Answer 29

• Occurs after the sale and ensures customer satisfaction and repeat business.
• The sale is definetly not over when they get the order (relationship selling vs. transactional selling)
• The customer has to be fully satisfied, thus building trust and great loyality
• Existing customers are cheaper to maintain than to acquire new ones.

Question 30

Sales Management Responsibilities (6)

Answer 30

1) Strategic planning
2) Organizing the sales force
3) Recruiting, selection, assimilation
4) Training and development
5) Motivation and supervision
6) Performance evaluation

Question 31

Sales promotion targets (4)

Answer 31

1) Final Buyers
2) Retailers and wholesalers
3) Business customers
4) Members of the sales force

Question 32

Sales Promotion - targetet at trade/businesses (5)

Answer 32

1) Discounts
2) Allowances
3) Conventions
4) Trade shows
5) Sales Contests