Chapter 19 Summary
This aspect of the communications mix involves direct contact with the customer. Because of this, it can become the firm’s largest operating expense. A sales person’s basic tasks are: 1) order getting, 2) order taking, and 3) order delivery. Order getting is developing business by seeking out potential customers, providing them necessary information, and persuading them to purchase. Order taking, on the other hand, is simply completing transactions after customers have already decided to buy. Order delivery involves getting products to the customers.
The selling process assists sales people in obtaining orders. The process includes:
- Prospecting for customers
- Preparing for sales calls
- Approach qualified prospects
- Making the sales presentation
- Handling objections
- Closing the sale, and
- Building long-term relationships
It is important to remember that customers prefer sales presentations that are adapted to their needs, not a canned approach that is simply memorized.
Just like any other employee, sales people need to be managed. To this end, someone must plan, direct, and control the personal selling effort (sales management). The sales manager must organize the sales force, recruit new sales people, supervise and train new and existing ones, motivate and compensate them, as well as evaluate and control sales people. While some firms have no formal sales training program, the majority of firms today have formalized programs. They have found it provides their sales people with a competitive edge in the marketplace.
There are a number of ethical issues that must be addressed in personal selling. The first is the manipulation of potential customers. Many of us have encountered sales people that are pushy, make unrealistic claims and guarantees about the product, and just will not take "no" for an answer. These people give a bad name to the sales profession. Likewise, some sales people give out gifts, money, or favors in exchange for purchases. In some cases, this practice is the equivalent of bribery and can be illegal. Inaccurate expense accounts and call reports are also areas of manipulation by the sales representative.
