Personal Selling in Sales Management

Sales Management

N5

www.futuremanagers.com

P

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Personal selling is the oral and physical offering of a product by a

salesperson, to one or more prospective buyers with the purpose of

identifying a problem or problems.

The marketing mix consists of the so-called four Ps:

Product, Price, Place, Promotion.

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www.futuremanagers.com

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Salespeople are becoming more and more involved in the determination of

marketing needs and problems. Owing to this, it is  that the salesperson

provides feedback to marketing management as part of his primary task, by

liaising with prospects and clients and by consulting with them about the

organisation’s marketing functions.

www.futuremanagers.com

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The modern professional salesperson:

•

Provides an extremely important and indispensable service to the

community;

•

Ensures that the economy is kept healthy and balanced; and

•

Makes a positive contribution to the profitability and future existence of his

organisation.

www.futuremanagers.com

M

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Job analysis is done to enable management to answer questions about a

specific position or job. A job description is compiled from the information

gained. A job specification is an explanation of the minimum personal

characteristics, such as skills, knowledge, experience, qualifications and

abilities, required by the incumbent to be able to fill the position successfully.

www.futuremanagers.com

M

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:

•

Creativity, resourcefulness and imaginativeness;

•

Self-motivation to attainment of goal;

•

Persuasive and mentally sharp;

•

Self-confidence and self-assuredness;

•

Social, person- and service-orientated with empathy; and

•

Observant; studios, adaptable and reliable

.

www.futuremanagers.com

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N

The following aspects of a person’s physical image are important when

dealing with customers:

•

Personal neatness and attire;

•

Appearance;

•

Good health;

•

Manners and habits; and

•

Good use of voice.

www.futuremanagers.com

T

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Knowledge enables the salesperson to answer questions and to provide

information, approach his presentation professionally and with confidence,

overcome objections and achieve success in selling. The most important is

product knowledge.

M

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www.futuremanagers.com

M

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.

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Knowledge of the industry.

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www.futuremanagers.com

M

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Product knowledge is of utmost importance to the salesperson, because if he

cannot answer a prospect’s questions about the product or prove that the use

of his product will enable the prospect to satisfy his needs, solve his problem

or fulfil his desires, the salesperson cannot expect to achieve any success in

selling.

www.futuremanagers.com

M

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•

Experience gained in practice;

•

Training programmes;

•

Internet;

•

Mentor;

•

Local chamber of commerce;

•

Sales manuals, portfolios and

brochures;

•

Sales meetings;

•

Educational institutions;

•

Customers themselves;

•

Trade shows and exhibitions;

•

Other salespeople; and

•

The library.

www.futuremanagers.com

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G

A sales forecast is an estimate of sales at some point in the future. The most

important function of forecasting is that it provides a basis for organisational

planning and budgeting and forms part of the strategic planning process of a

business. Managers can determine how many units to produce and

distribute.

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www.futuremanagers.com

M

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Market potential refers to the total expected sales for a given product or

service for the entire industry, in a specific market over a specific period of

time. Sales potential, also known as market share, refers to the share of the

market potential that an individual business can reasonably expect to

achieve.

www.futuremanagers.com

M

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•

Any changes in a business's marketing policy/4 Ps.

•

Any external or internal conditions in the market.

•

Competitors entering the market.

•

Political, economic and regulations in a country.

www.futuremanagers.com

M

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The sales forecast typically is less than the sales potential for several

reasons:

•

Production facilities may be too limited to allow the business to reach its full

sales potential.

•

Current distribution systems may not reach all of its potential market.

•

Financial resources/capital may be inadequate.

www.futuremanagers.com

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Forecasts help determine the following:

•

The number of salespeople to employ.

•

The amount that can be spend on samples, travel and entertainment.

www.futuremanagers.com

M

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•

Time available;

•

Availability of data;

•

Personnel/staff;

•

Accuracy; and

•

Product or service.

www.futuremanagers.com

B

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Some of the benefits obtained by establishing sales territories include:

•

Ensure proper market coverage;

•

Workload equalisation;

•

Increases salespeople’s morale;

•

Better evaluation and control over sales force;

•

Better analysis and planning of sales activities; and

•

Sales are improved.

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www.futuremanagers.com

M

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The most important consideration in territorial design is to have all territories

equal in both sales potential and the salesperson’s workload. The general

steps applies:

•

Select a geographical control unit.

•

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•

Determine sales potentials in each

control unit.

•

Determine the basic territories.

•

Assign salespeople to territories.

www.futuremanagers.com

M

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)

•

Nature of the sales job;

•

Nature of the product;

•

Stage of market development;

•

Intensity of market coverage; and

•

Intensity of competition.

www.futuremanagers.com

I

N

T

R

O

D

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N

Quotas/targets are quantitative objectives assigned to sales organisational

units, for example individual sales personnel. Sales management usually

sets quotas for individual sales territories and sales personnel.

M

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5

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www.futuremanagers.com

M

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The general objective of quotas is to control the sales effort. Sales control is

facilitated through setting quotas to use in appraising performances of sales

territories and individual salespeople. Sales management uses quotas to

motivate personnel to achieve desired performance levels.

www.futuremanagers.com

M

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There are four types of quotas:

•

Sales volume quotas;

•

Budget quotas;

•

Activity quotas; and

•

Combination and point system quotas.

www.futuremanagers.com

M

o

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5

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Skill in administering the quota system is basic, not only to realising the full

benefit for control purposes, but to securing staff co-operation. Most

salespeople oppose quotas, and anything that makes them doubt the

accuracy, fairness and attainability of those quotas makes them less willing to

accept them, thus reducing the system’s effectiveness.

www.futuremanagers.com

B

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-

T

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-

B

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S

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A

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(

B

2

B

)

When it comes to Business-to-Business sales, forging long-term

relationships with the customer is very important. The salesperson must get

to know the staff of the customer, especially the key role players in decision

making.

M

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6

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www.futuremanagers.com

M

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A buying team can be appointed on a permanent or temporary basis:

•

Temporary basis: For purchase decisions that is not often made, for

example, a hospital puts a buying team together to decide on a new

cleaning service agency.

•

Permanent basis: For purchase decisions that are often made.

www.futuremanagers.com

M

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6

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c

e

i

v

e

d

.

•

Initiators - this person is first to recognise a need/problem.

•

Influencers - direct or indirect influence on purchasing decision.

•

Final decision makers - make the actual buying decision.

•

Buyers - select suppliers.

•

Gatekeepers - control flow of information in and out of the business to

persons in the buying team.

www.futuremanagers.com

M

o

d

u

l

e

6

–

T

y

p

e

s

o

f

s

e

l

l

i

n

g

(

c

o

n

t

i

n

u

e

d

)

T

E

L

E

S

A

L

E

S

The telephone is one of the most important communication channels

available to the salesperson in personal selling. Salespeople should therefore

know how to use it effectively and professionally. The most important

prerequisite for telesales is the effective selection of the salesperson with the

right qualities for this job, good training, professional behaviour and support

from management and the information system.

www.futuremanagers.com

M

o

d

u

l

e

6

–

T

y

p

e

s

o

f

s

e

l

l

i

n

g

(

c

o

n

t

i

n

u

e

d

)

E

T

H

I

C

S

I

N

T

E

L

E

P

H

O

N

E

S

A

L

E

S

The following guidelines are recommended as a code of ethics for telesales:

•

The contact person must immediately give his name, the name of the

business, and purpose of the call.

•

An offer should be clear and unambiguous.

•

People should not be contacted at unreasonable hours.

•

Telephone orders must be delivered as quickly as possible after the order

is placed.

www.futuremanagers.com

P

R

O

S

P

E

C

T

I

N

G

T

E

C

H

N

I

Q

U

E

S

Prospecting is the first step in the personal selling process. Prospecting is

the identification of a person or business that has a need, authority and the

means to pay for the product. Effective prospecting enables the salesperson

to spend more time on sales presentations and the successful closing of

transactions.

M

o

d

u

l

e

7

–

P

r

o

s

p

e

c

t

i

n

g

www.futuremanagers.com

I

N

T

R

O

D

U

C

T

I

O

N

Before the salesperson can make a professional presentation, he must set

up an appointment with the prospect. The information gathered in the pre-

approach provides the salesperson with facts to use when setting up the

appointment.

M

o

d

u

l

e

8

–

P

l

a

n

n

i

n

g

t

h

e

s

a

l

e

s

p

r

e

s

e

n

t

a

t

i

o

n

(

P

r

e

-

a

p

p

r

o

a

c

h

)

www.futuremanagers.com

M

o

d

u

l

e

8

–

P

l

a

n

n

i

n

g

t

h

e

s

a

l

e

s

p

r

e

s

e

n

t

a

t

i

o

n

(

P

r

e

-

a

p

p

r

o

a

c

h

)

(

c

o

n

t

i

n

u

e

d

)

Q

U

A

L

I

F

I

C

A

T

I

O

N

O

F

P

R

O

S

P

E

C

T

S

Qualification is the evaluation of possible consumers of the salesperson’s

product or service by the salesperson, whether the person or institution has

an immediate need for the product or service, has the authority to buy and the

means to pay for the product.

www.futuremanagers.com

M

o

d

u

l

e

8

–

P

l

a

n

n

i

n

g

t

h

e

s

a

l

e

s

p

r

e

s

e

n

t

a

t

i

o

n

(

P

r

e

-

a

p

p

r

o

a

c

h

)

(

c

o

n

t

i

n

u

e

d

)

T

H

E

I

M

P

O

R

T

A

N

C

E

O

F

G

A

T

H

E

R

I

N

G

P

R

E

-

A

P

P

R

O

A

C

H

I

N

F

O

R

M

A

T

I

O

N

•

It provides the salesperson with background information in order to plan his

presentation;

•

Pre-approach saves the salesperson valuable time and energy by being

able to distinguish between prospects and general leads;

•

Information gained provides clues indicating the prospect’s real buying

motives and the specific needs he wants satisfied.

www.futuremanagers.com

M

o

d

u

l

e

8

–

P

l

a

n

n

i

n

g

t

h

e

s

a

l

e

s

p

r

e

s

e

n

t

a

t

i

o

n

(

P

r

e

-

a

p

p

r

o

a

c

h

)

(

c

o

n

t

i

n

u

e

d

)

T

Y

P

E

S

O

F

I

N

F

O

R

M

A

T

I

O

N

N

E

E

D

E

D

Personal information such as:

•

Age and date of birth;

•

Home address and private telephone number;

•

Educational background;

•

Marital status and family details;

•

Social contacts/circles; and

•

Reputation.

www.futuremanagers.com

M

o

d

u

l

e

8

–

P

l

a

n

n

i

n

g

t

h

e

s

a

l

e

s

p

r

e

s

e

n

t

a

t

i

o

n

(

P

r

e

-

a

p

p

r

o

a

c

h

)

(

c

o

n

t

i

n

u

e

d

)

S

O

U

R

C

E

S

O

F

P

R

E

-

A

P

P

R

O

A

C

H

I

N

F

O

R

M

A

T

I

O

N

Examples of information sources are:

•

Customers

•

The Internet

•

Social media

•

Financial institutions

•

Other businesses

•

Other salespeople

•

Credit and trade reference agencies:

ITC, Credit Inform

•

The company's own records

•

Personal observation

•

The prospect

•

Local directories.

www.futuremanagers.com

A

P

P

R

O

A

C

H

T

E

C

H

N

I

Q

U

E

S

An approach technique is a method to get a prospect’s attention and interest

and to make a smooth changeover into the next part of the presentation

where the goal is to find out what the prospect’s needs are.

M

o

d

u

l

e

9

–

T

h

e

a

p

p

r

o

a

c

h

t

o

t

h

e

s

a

l

e

s

p

r

e

s

e

n

t

a

t

i

o

n

www.futuremanagers.com

M

o

d

u

l

e

9

–

T

h

e

a

p

p

r

o

a

c

h

t

o

t

h

e

s

a

l

e

s

p

r

e

s

e

n

t

a

t

i

o

n

(

c

o

n

t

i

n

u

e

d

)

F

A

C

T

O

R

S

W

H

I

C

H

A

S

S

U

R

E

A

N

E

F

F

E

C

T

I

V

E

A

N

D

S

U

C

C

E

S

S

F

U

L

A

P

P

R

O

A

C

H

•

The appointment requires good planning and preparation.

•

Set out clear objectives for the approach.

•

Planning for the approach must provide for every possible eventuality.

•

The salesperson must pay special attention to his appearance, personality,

attitude, posture, general behaviour and gestures.

•

Never ask questions that require negative answers.

www.futuremanagers.com

O

B

J

E

C

T

I

V

E

S

F

O

R

A

N

E

F

F

E

C

T

I

V

E

S

A

L

E

S

P

R

E

S

E

N

T

A

T

I

O

N

A salesperson must use the time available with the prospect effectively and

therefore plan each presentation carefully. Objectives are to:

•

Get the prospect’s attention;

•

Make the prospect aware of his problem or need;

•

Point out the advantages to the prospect; and

•

Provide proof of advantages.

M

o

d

u

l

e

1

0

–

T

h

e

s

a

l

e

s

p

r

e

s

e

n

t

a

t

i

o

n

www.futuremanagers.com

M

o

d

u

l

e

1

0

–

T

h

e

s

a

l

e

s

p

r

e

s

e

n

t

a

t

i

o

n

(

c

o

n

t

i

n

u

e

d

)

T

E

C

H

N

I

Q

U

E

S

U

S

E

D

T

O

P

R

O

V

E

C

L

A

I

M

S

•

I

f

t

h

e

g

u

a

r

a

n

t

e

e

i

s

i

n

w

r

i

t

i

n

g

a

n

d

t

h

e

f

i

r

m

t

h

a

t

g

i

v

e

s

i

t

i

s

r

e

g

a

r

d

e

d

a

s

t

r

u

s

t

w

o

r

t

h

y

,

i

t

i

s

m

u

c

h

e

a

s

i

e

r

t

o

g

a

i

n

t

h

e

p

r

o

s

p

e

c

t

’

s

t

r

u

s

t

.

•

Testimonials must contain full details so that the prospect can follow it up if

he deems it necessary.

www.futuremanagers.com

M

o

d

u

l

e

1

0

–

T

h

e

s

a

l

e

s

p

r

e

s

e

n

t

a

t

i

o

n

(

c

o

n

t

i

n

u

e

d

)

C

R

I

T

E

R

I

A

F

O

R

A

N

E

F

F

E

C

T

I

V

E

A

N

D

S

U

C

C

E

S

S

F

U

L

S

A

L

E

S

P

R

E

S

E

N

T

A

T

I

O

N

The following criteria will ensure the success of the conveyance of the

presentation:

•

Do not talk too much.

•

Keep the message simple.

•

Speak the prospect’s language.

•

Speak clearly and understandably.

•

Be specific.

•

Use sales talk.

•

Ask questions throughout.

www.futuremanagers.com

M

o

d

u

l

e

1

0

–

T

h

e

s

a

l

e

s

p

r

e

s

e

n

t

a

t

i

o

n

(

c

o

n

t

i

n

u

e

d

)

D

E

M

O

N

S

T

R

A

T

I

O

N

S

A demonstration is a very effective and important visual sales technique,

which salespeople use to sell their products. It is a technique that:

•

Draws attention;

•

Ensures interest and involvement;

•

Can involve all the prospect’s senses;

•

Lets the product sell itself; and

•

Saves time.

www.futuremanagers.com

M

o

d

u

l

e

1

0

–

T

h

e

s

a

l

e

s

p

r

e

s

e

n

t

a

t

i

o

n

(

c

o

n

t

i

n

u

e

d

)

T

H

E

P

R

I

N

C

I

P

L

E

S

O

F

E

F

F

E

C

T

I

V

E

P

R

O

D

U

C

T

D

E

M

O

N

S

T

R

A

T

I

O

N

•

Plan each demonstration individually.

•

Suit the sales talk to the demonstration.

•

Be prepared (Prior arrangements for demonstrations).

•

Cover the most important product features.

•

Get the prospect involved.

•

Maintain control.

www.futuremanagers.com

T

Y

P

E

S

O

F

O

B

J

E

C

T

I

O

N

S

Objections are golden opportunities to solve problems and to close the deal.

Objections give the salesperson an indication of how he is progressing with

his sales presentation. There are mainly two types of objections:

•

Physical objections; and

•

Psychological objections.

M

o

d

u

l

e

1

1

–

H

a

n

d

l

i

n

g

o

b

j

e

c

t

i

o

n

s

www.futuremanagers.com

M

o

d

u

l

e

1

1

–

H

a

n

d

l

i

n

g

o

b

j

e

c

t

i

o

n

s

(

c

o

n

t

i

n

u

e

d

)

T

E

C

H

N

I

Q

U

E

S

T

O

O

V

E

R

C

O

M

E

O

B

J

E

C

T

I

O

N

S

•

A

s

k

m

o

r

e

s

p

e

c

i

f

i

c

q

u

e

s

t

i

o

n

;

•

Convert the objection into an advantage;

•

Provide proof;

•

Agree and qualify;

•

Provide more information;

•

Overcome with agreement; and

•

Compare products or services.

www.futuremanagers.com

T

H

E

R

I

G

H

T

T

I

M

E

F

O

R

T

H

E

C

L

O

S

E

The biggest reason why salespeople lose sales is their inability to close at

the right time. They either wait too long before trying to close, or they try

before the prospect is ready to close. The clue to knowing when to close lies

embodied in the prospect’s mind.

M

o

d

u

l

e

1

2

–

C

l

o

s

i

n

g

t

h

e

s

a

l

e

s

www.futuremanagers.com

M

o

d

u

l

e

1

2

–

C

l

o

s

i

n

g

t

h

e

s

a

l

e

s

(

c

o

n

t

i

n

u

e

d

)

S

A

L

E

S

C

L

O

S

I

N

G

T

E

C

H

N

I

Q

U

E

S

There are several techniques appropriate for closing a sale:

•

The assumptive close;

•

The minor question technique;

•

The direct approach technique;

•

The inducement technique;

•

The emotional closing technique; and

•

The physical action technique.

www.futuremanagers.com

M

o

d

u

l

e

1

2

–

C

l

o

s

i

n

g

t

h

e

s

a

l

e

s

(

c

o

n

t

i

n

u

e

d

)

A

C

T

I

V

I

T

I

E

S

A

F

T

E

R

A

S

U

C

C

E

S

S

F

U

L

C

L

O

S

E

•

Briefly explain the delivery and installation procedures;

•

Arrange a follow-up visit/call after delivery to make sure the customer is

satisfied with the product;

•

M

a

k

e

s

u

r

e

a

l

l

i

n

f

o

r

m

a

t

i

o

n

a

n

d

f

o

r

m

s

r

e

g

a

r

d

i

n

g

t

h

e

c

u

s

t

o

m

e

r

a

r

e

c

a

p

t

u

r

e

d

o

n

t

h

e

b

u

s

i

n

e

s

s

’

s

s

y

s

t

e

m

,

f

o

r

r

e

f

e

r

e

n

c

e

w

h

e

n

t

h

e

s

a

l

e

s

p

e

r

s

o

n

v

i

s

i

t

s

t

h

e

c

u

s

t

o

m

e

r

a

g

a

i

n

;

a

n

d

•

Send an e-mail to the customer confirming the order.

www.futuremanagers.com

M

o

d

u

l

e

1

2

–

C

l

o

s

i

n

g

t

h

e

s

a

l

e

s

(

c

o

n

t

i

n

u

e

d

)

A

C

T

I

V

I

T

I

E

S

A

F

T

E

R

A

N

U

N

S

U

C

C

E

S

S

F

U

L

C

L

O

S

E

•

Create goodwill.

•

Review the sales presentation.

•

Record everything that happened.

•

Ask the prospect why he declined your proposition and listen carefully.

•

List all the mistakes made.

•

Maintain contact with the prospect (by means of telephone, SMS or e-mail).

•

Do not give up.

www.futuremanagers.com

T

H

E

I

M

P

O

R

T

A

N

C

E

O

F

A

F

T

E

R

-

S

A

L

E

S

S

E

R

V

I

C

E

Providing after-sales service is vital in building long-term customer

relationships, ensuring customer loyalty. It also encourages the customer to

refer more business to the salesperson, thus leading to more sales.

M

o

d

u

l

e

1

3

–

A

f

t

e

r

-

s

a

l

e

s

s

e

r

v

i

c

e

www.futuremanagers.com

M

o

d

u

l

e

1

3

–

A

f

t

e

r

-

s

a

l

e

s

s

e

r

v

i

c

e

(

c

o

n

t

i

n

u

e

d

)

W

H

Y

M

U

S

T

C

U

S

T

O

M

E

R

S

B

E

F

O

L

L

O

W

E

D

U

P

?

•

To ensure customer satisfaction.

•

To make the customer feel important.

•

To ensure customer loyalty.

•

To build strong long-term relationships with customers.

•

To provide support to customers.

•

To handle complaints/enquiries.

•

To provide customer care and after-sales service.

www.futuremanagers.com

M

o

d

u

l

e

1

3

–

A

f

t

e

r

-

s

a

l

e

s

s

e

r

v

i

c

e

(

c

o

n

t

i

n

u

e

d

)

W

H

I

C

H

F

O

L

L

O

W

-

U

P

A

C

T

I

V

I

T

I

E

S

A

R

E

N

E

C

E

S

S

A

R

Y

?

•

Thank the customer;

•

Confirm delivery details of the product;

•

Follow-up to ensure continued satisfaction;

•

Follow-up to determine future needs;

•

Adjustments to order;

•

Follow-up of existing customers for obtaining prospects; and

•

Follow-up with the view to providing service.

www.futuremanagers.com

M

o

d

u

l

e

1

3

–

A

f

t

e

r

-

s

a

l

e

s

s

e

r

v

i

c

e

(

c

o

n

t

i

n

u

e

d

)

T

H

E

P

L

A

N

N

I

N

G

A

N

D

E

X

E

C

U

T

I

V

E

O

F

F

O

L

L

O

W

-

U

P

A

C

T

I

V

I

T

I

E

S

•

Personal observation during visits to the customer will identify many

aspects about the business’s business.

•

Informal conversations with the customer may also help with follow-ups.

•

Questionnaires to the customer, his staff and his customers provide

additional information.

•

Information obtained from the customer’s other suppliers, financial

institutions and competitors.

www.futuremanagers.com

M

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It is imperative that businesses ask for customers’ feedback in order to see

whether the business has any problems. The most successful businesses

have constructive mechanisms to facilitate customer feedback:

•

Social networks;

•

Questionnaires;

•

Via sales-people; and

•

Live chats.

www.futuremanagers.com

M

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Complaints must be followed up immediately. Complaints and any

dissatisfaction passed through to management must be followed up quickly to

ensure quick action. The salesperson remains the person who is held

responsible for the solution of problems.

www.futuremanagers.com

M

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An inactive customer is a customer who has stopped buying. To find out why

a customer might be inactive, a salesperson should ask several questions

such as whether the salesperson or the business was at fault; whether he

kept up the changing needs; whether whether he monitored the customer’s

needs; and whether the products and services offered kept up with changing

circumstances.

www.futuremanagers.com

M

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Customer care and service is of utmost importance if a business wants to

retain loyal customers. Most successful companies today have a loyalty

programme in place for their customers. Many companies also join forces and

offer a combined loyalty programme.

www.futuremanagers.com

S

C

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D

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I

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A salesperson must be scheduled in order to eliminate wasted time, increase

efficiency and maximise productivity. Examples of time allocation problems

are:

•

Deciding which accounts to call on;

•

Dividing time between selling and administration;

•

Allocating time between present customers, prospective customers and

service calls.

M

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www.futuremanagers.com

M

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There are many aids available to help manage time more efficiently and make

salespeople more productive such as:

•

Telephones;

•

Cell phones;

•

The Internet;

•

Smart devices; and

•

Computers.

www.futuremanagers.com

M

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d

u

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1

4

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T

i

m

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a

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R

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Routing is a travel plan or pattern used by a salesperson for when they visit

customers in their specific sales area. A properly designed route system has

the following advantages:

•

R

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;

•

Improved territory coverage;

•

Improved information.

www.futuremanagers.com

M

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i

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a

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In order to develop a routing plan, the salesperson and the sales manager

must gather the following information:

•

The number of calls to be made each day by the salesperson;

•

The call frequency on each class of customer;

•

The distance to each customer;

•

The method of transportation to be used.