LO1  Discuss the nature and scope of personal selling and sales management in marketing.

Personal selling involves the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision. Sales management involves planning the selling program and implementing and controlling the personal selling effort of the firm. The scope of selling and sales management is apparent in three ways. First, virtually every occupation that involves customer contact has an element of personal selling. Second, selling plays a significant role in a company's overall marketing effort. Salespeople occupy a boundary position between buyers and sellers; they are the company to many buyers and account for a major cost of marketing in a variety of industries; and they can create value for customers. Finally, through relationship and partnership selling, salespeople play a central role in tailoring solutions to customer problems as a means to customer value creation.

LO2  Identify the different types of personal selling.

Three types of personal selling exist: (a) order taking, (b) order getting, and (c) customer sales support activities. Each type differs from the others in terms of actual selling done and the amount of creativity required to perform the sales task. Order takers process routine orders or reorders for products that were already sold by the company. They generally do little selling in a conventional sense and engage in only modest problem solving with customers. Order getters sell in a conventional sense and identify prospective customers, provide customers with information, persuade customers to buy, close sales, and follow up on customers' use of a product or service. Order getting involves a high degree of creativity and customer empathy and is typically required for selling complex or technical products with many options. Customer sales support personnel augment the sales effort of order getters by performing a variety of services. Sales support personnel are prominent in cross-functional team selling, the practice of using an entire team of professionals in selling to and servicing major customers.

LO3  Explain the stages in the personal selling process.

The personal selling process consists of six stages: (a) prospecting, (b) preapproach, (c) approach, (d) presentation, (e) close, and (f) follow-up. Prospecting involves the search for and qualification of potential customers. The preapproach stage involves obtaining further information on the prospect and deciding on the best method of approach. The approach stage involves the initial meeting between the salesperson and prospect. The presentation stage involves converting a prospect into a customer by creating a desire for the product or service. The close involves obtaining a purchase commitment from the prospect. The follow-up stage involves making certain that the customer's purchase has been properly delivered and installed and difficulties experienced with the use of the item are addressed.

LO4  Describe the major functions of sales management.

Sales management consists of three interrelated functions: (a) sales plan formulation, (b) sales plan implementation, and (c) evaluation of the salesforce. Sales plan formulation involves setting objectives, organizing the salesforce, and developing account management policies. Sales plan implementation involves salesforce recruitment, selection, training, motivation, and compensation. Finally, salesforce evaluation focuses on quantitative assessments of sales performance and behavioral measures such as customer satisfaction that are linked to selling objectives and account management policies.