Exam 33: Personal Selling and Sales Management

Before approaching the customer,a salesperson should learn as much as possible about the prospect's organization and its buyer.

Advanced Bionics Advanced Bionics is a global leader in the development of implantable, high-tech neurostimulation devices used to treat deafness and chronic pain. Just two-and-a- half years after introducing its new stimulators, the firm is doing $200 million in domestic sales. How has Advanced Bionics been so successful? Its success can be attributed to its outstanding products and to three aspects of its sales approach. First, Advanced Bionics hired the right talent for its sales force. Companies tend to use experienced sales reps-often hired away from competing companies-to sell new medical devices. This can be very expensive since experienced reps generally expect as much as $200,000 in annual income. So when Advanced Bionics brought its medical device to market, it hired people with no experience selling medical devices and turned them into sales reps. Hiring inexperienced salespeople created some problems, however, and the company experienced high turnover rates during its first two years in operation. Second, Advanced Bionics provided salespeople with a rigorous training program. Third, Advanced Bionics allowed salespeople to plan their own activities while managers monitored their progress and pushed them to improve. In short, the company has been able to succeed by selecting good people, training them well, and managing them carefully. -Refer to Advanced Bionics.Personal selling is important for Advanced Bionics because:

Tara is a salesperson with several satisfied customers.She asks her customers to recommend her to their business associates.Tara is using cold calling to generate leads.

To target outdoor enthusiasts,Subaru of America added an outdoor life section to its Web site that is organized by area of interest.The site will serve as a platform for co-marketing and promotional programs.This offering of customized products to a customer segment for the purpose of enhancing the auto manufacturer's customer relationships is an example of:

Jayson typically negotiates the price with prospective customers because he knows price is the most effective negotiating tool when closing a sale.

Discuss the customer and product conditions that suggest personal selling is more important than advertising and sales promotion.Give some examples of products for which personal selling would likely be the best tactic.

College Entertainers Most colleges and universities have a campus activity board that brings entertainers and special events to campuses. To locate and hire these entertainers, many campuses send their student activity board members to one of the seven regional conventions or the National Association of Campus Activities (NACA) convention. More than 100 entertainers, talent agencies, and companies that provide promotional services exhibit their products at these conventions in an area similar to a trade show. (Conference attendees call this the Marketplace.) Approximately 20 entertainers are selected to present a short program (called a showcase) in which they demonstrate what they would do if hired to perform on campus. Many other entertainers have videos and CDs, which they hand out to student attendees. Only one or two members of any student group can actually set up a contractual agreement with an entertainer or his or her agency. Other student attendees provide input as to which entertainers best match the demographics of their institutions. -Refer to College Entertainers.The student activity board members who attended a NACA convention were approached by a talent agent who represents a group of comedians who have been known to use profane language in their routines.Several of the college students told the agent that this type of language would not be welcome at their college.The agent promised the group that the comedians were able and willing to perform an act that the students could bring their grandmothers to see without being embarrassed.In this example,the agent was:

Customer relationship management initially was popularized as _____.

_____ is a process of finding out about potential clients from friends,business contacts,coworkers,acquaintances,and fellow members in professional or civic organizations.

To qualify a sales lead,a salesperson must identify the person in an organization who has the authority to buy the product and must close the sale with that individual.

_____ involves delegating authority to solve customers' problems.

Generally speaking,personal selling becomes more important as the number of potential customers _____ and as the value of the product _____.

As a manufacturer of jams and jellies,Smucker's sells a highly standardized product to consumers all over the United States.You would expect Smucker's to rely on _____ to promote its product.

Increasingly,sales professionals are using _____to connect with targeted leads and clients around the world.

Effective sales management begins with:

Sales managers should look for sociability,creativity,and ego strength in applicants.

When Sony PlayStation users want to access amenities on the Sony Web site,they are required to log in and supply information such as their name,e-mail address,and birth date.They are also given the opportunity to complete a survey that captures much more information about them and their gaming habits.Sony gathers this information and makes it available internally to better serve the customer.This is an example of a company using:

Joe Hamas sells for Rush Beverages.He is trying to convince retailers to carry his company's Ginseng Rush,a new all-natural beverage that delivers an energy punch without caffeine.When he gets retailers to agree to stock his product,he asks them for the names of other retail operations that might be interested in carrying it.He is using _____ to get his sales leads.

The seven steps of the selling process closely follow the:

Personal selling is more important than advertising and sales promotion if: