Chapter 16: Personal Selling and Sales Promotion

16.1 Personal Selling

O Personal presentation by Iirm`s sales Iorce Ior purpose oI making sales and building
customer relationships
O ink company with customers
O oordinate marketing and sales

16.2 Managing the Sales Force (6 Step Process)

16.2a Designing Sales Force Strategy and Structure
O $ales Force $tructure
4 erritorial $ales Force $tructure (geographic)
learly deIined job, builds local relationships, low travel expenses
4 Product $ales Force $tructure (product line)
an have problems iI single large customer buys many diIIerent products
4 ustomer $ales Force $tructure (customer or industry)
4 omplex $ales Force $tructure (combination)
O $ales Force $ize
4 g. Workload Approach
O ther $trategy and $tructure Issues
4 utside and Inside $ales Force (travel vs. phone)
4 eam $elling Ior large, complex accounts

16.2b Recruiting & Selecting Salespeople
O Four Key Talents
4 Intrinsic Motivation, Disciplined Work $tyle, Ability to lose $ales, Ability to
Build Relationships with ustomers

16.2c Training Salespeople
O Training Program Goals
4 Teach about customers and needs, motives, habits
4 Basics oI selling process
4 Know about company and products

16.2d Compensating Salespeople
O Fixed amount, variable amount, expenses, and Iringe beneIits

16.2e Supervising & Motivating Salespeople
O 'ery little time actually spent selling (mostly administration, travel)
O $elling and the Internet
O Motivating $alespeople
4 $ales quotas
4 rganizational limate
4 Positive Incentives

4 $ales ontests

16.2f Evaluating Salespeople & Sales Force Performance
O $ales Reports, all Reports, xpense Reports, Return on $ales Investment

16.3 The Personal Selling Process

16.3a Steps in the Selling Process (7 Steps)
O Prospecting and QualiIying (identiIy potential customers)
O Preapproach (learn about organization and buyers)
O Approach (meet customer Ior Iirst time)
O Presentation and Demonstration (present value proposition to customer)
4 Don`t want to be pushy, late, deceitIul, unprepared
O andling bjections (seek out, clariIy, overcomes customer objections)
O losing (ask customer Ior order)
O Follow-Up (ensure customer satisIaction and repeat business)

16.3c Personal Selling & Managing Customer Relationships
O $teps are transaction oriented, but should be relational

16.4 Sales Promotion
O $hort-term incentives to encourage purchase/sale oI product or service
O Rapid Growth in $ales Promotion
4 ustomer Promotions
$amples, oupons, ReIunds, Premiums, Point-oI-Purchase Displays,
ontests, $weepstakes, vent $ponsorship
4 Trade Promotion
Discounts, Allowances, Free Goods, Push Money, Free $pecialty
Advertising Items
4 Business Promotions
onventions and Trade $hows, $ales ontests
4 $ales Force Promotions
4 Because:
Greater pressure to increase current sales
Increased competition and less diIIerentiated brands
Decline in advertising eIIiciency
onsumers are more deal oriented
4 Results in Promotion lutter
O Developing the $ales Promotion Program
4 $ize oI Incentive
4 Method oI Promotion and Distribution
4 valuation