13

Chapter Outline

A. Personal Selling
- The Nature of Personal Selling
- The Role of the Sales Force
B. The Personal Selling Process
C. Sales Promotion
- Sales Promotion Objectives
- Major Sales Promotion Tools
- Developing the Sales Promotion Program

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(Armstrong, Kotler & Opresnik)
 A. Personal Selling

Personal selling is the personal presentations

by the firm’s sales force
for the purpose
of making sales
and building
customer
relationships.

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(Armstrong, Kotler & Opresnik)
 The Nature of Personal Selling
The term salesperson covers a wide range of positions.

At one extreme, a salesperson might be an order taker,

such as the department store salesperson standing
behind the counter, which is a least creative sales
position.

At the other extreme are order getters, whose positions

demand creative selling and relationship building for
products and services ranging from appliances to
industrial equipment.
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(Armstrong, Kotler & Opresnik)
 The Nature of Personal Selling
Personal selling is the interpersonal part of the
promotion mix and can include:
• Face-to-face communication
• Telephone communication
• Video or Web conferencing

Some firms have no salespeople at all.

Copyright 2017 Pearson Education, Ltd

(Armstrong, Kotler & Opresnik)
 The Nature of Personal Selling
Salespeople are an effective link between the
company and its customers to produce customer
value and company profit by
• Representing the company to customers
• Representing customers to the company
• Working closely with marketing

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(Armstrong, Kotler & Opresnik)
 Linking the Company with its Customers

They learn about customers

They find & develop new
needs & work with
customers & information about
marketing department to
the company’s products/services.
create greater customer
value.

Represent the Represent

company to customers to
customers the company

Copyright 2017 Pearson Education, Ltd

(Armstrong, Kotler & Opresnik)
Linking the Company with its Customers

Working closely with marketing

Ideally, the sales force and other
marketing functions should work
together closely to jointly create value
for customers. Unfortunately, Some
companies still treat sales and
marketing as separate functions and
the groups may not get along well.

Copyright 2017 Pearson Education, Ltd

(Armstrong, Kotler & Opresnik)
 Social Selling: Online, Mobile,
and Social Media Tools
• Provide salespeople with powerful
tools for
– Identifying and learning about prospects
– Engaging customers
– Creating customer value
– Closing sales
– Nurturing customer relationships
• Help sales forces to be more efficient,
cost-effective, and productive
Copyright 2017 Pearson Education, Ltd
(Armstrong, Kotler & Opresnik)
B. The Personal Selling Process

Copyright 2017 Pearson Education, Ltd

(Armstrong, Kotler & Opresnik)
 Steps in the Selling Process

1. Prospecting and Qualifying

• Prospecting is identifying qualified
potential customers.
• The best source of prospects is referrals.
• Sources of referrals:
• Customers
• Suppliers
• Dealers
• Internet
 Steps in the Selling Process

• Qualifying involves identifying good

customers and screening out poor ones by
looking at
• Financial ability
• Volume of business
• Needs
• Location
• Growth potential
 Steps in the Selling Process
2. Preapproach
• Preapproach is the process of learning as much as
possible about a prospect, including needs, who is
involved in the buying, and the characteristics and
styles of the buyers.

Objectives Approaches

• Qualify the prospect • Personal visit

• Gather information • Phone call
• Make an immediate • Letter/e-mail
sale
 Steps in the Selling Process
3. Approach
• Approach is the process where the salesperson
meets and greets the buyer and gets the
relationship off to a good start and involves the
salesperson’s:
• Appearance
• Opening lines
• Follow-up remarks
 Steps in the Selling Process
4. Presentation and Demonstration
• During the presentation step of the selling process,
the salesperson tells the “value story” to the buyer,
showing how the company’s offer solves the
customer’s problems.

• Need-satisfaction approach is when buyers want

solutions and salespeople should listen and respond
with the right products and services to solve
customer problems.
 Steps in the Selling Process
5. Handling Objections
• Handling objections is the process where
salespeople resolve problems that are logical,
psychological, or unspoken.

• In handling objections, the salesperson should:

• Use a positive approach
• Seek out hidden objections
• Ask the buyer to clarify any objections
• Take objections as opportunities to provide more
information
• Turn the objections into reasons for buying
 Steps in the Selling Process
6. Closing
• Closing is the process where salespeople should
recognize signals from the buyer—including physical
actions, comments, and questions—to ask for a order
and finalize the sale.

• Closing is difficult for some salespeople because they

lack confidence, feel guilty about asking for an order,
or may not recognize the right time to ask for an
order.
 Steps in the Selling Process

7. Follow-Up
• Follow-up is necessary if the salesperson
wants to ensure customer satisfaction and
repeat business.
 C. Sales Promotion

Sales promotion consists of short-term

incentives to encourage the purchase or sales of
a product or service.

Copyright 2017 Pearson Education, Ltd

(Armstrong, Kotler & Opresnik)
 Rapid Growth of Sales Promotions

Product managers pressure to Outside competition and less

increase sales differentiation
Reasons for Growth
Advertising less effective Consumers are deal oriented

Consumer Trade promotions Business promotions Sales force

promotions promotions
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 1. Consumer Promotion
Urge short-term customer buying or to
enhance customer brand involvement which
focus on consumer market.

Copyright 2017 Pearson Education, Ltd

(Armstrong, Kotler & Opresnik)
 Consumer Promotion Tools
Tools Description
Samples • Offers of a trial amount of a product
• Most effective and expensive

Coupons • Certificates that save buyers money when

Rebates (cash refunds)
Price packs (cents-off deals)
Premiums
they purchase specified products
• Price reduction occurs after the purchase
• Customer sends proof of purchase to the
manufacturer, which then refunds part of
the purchase price by mail
• Offer consumers savings off the regular
price of a product
• Goods offered either free or at low cost as
an incentive to buy a product
 Consumer Promotion Tools
Tools Description
Advertising specialties • Useful articles imprinted with an
advertiser’s name, logo, or message that
are given as gifts to consumers
Point-of-purchase (POP) • Displays and demonstrations that take
promotions place at the point of sale
Contests, sweepstakes, and • Give consumers the chance to win
games something

Event marketing • Creating a brand-marketing event or

(or event sponsorships) serving as a sole or participating sponsor
of events created by others
 2. Trade Promotions

Trade promotions are sales promotion tools used to

persuade resellers to carry a brand, give it shelf
space, promote it in advertising and push it to the
consumer.
• Manufacturers use several trade promotion tools:
• Offer a straight discount (also called off-invoice)
• Offer an allowance
• Offer free goods

Copyright 2017 Pearson Education, Ltd

(Armstrong, Kotler & Opresnik)
 3. Business Promotions

• Business promotions • Conventions and trade

are sales promotion
tools used to generate
business leads,
stimulate purchases,
reward customers and
motivate salespeople.
shows are effective to
reach many customers
not reached with the
regular sales force.

Copyright 2017 Pearson Education, Ltd

(Armstrong, Kotler & Opresnik)
 4. Sales Force Promotions
• Also called sales contests
• Contests for salespeople or dealers to motivate
them to increase their sales performance over a
given period.
• Work when they’re tied to achievable sales
objectives
• How? Finding new accounts, reviving old accounts,
or increasing account profitability.

Copyright 2017 Pearson Education, Ltd

(Armstrong, Kotler & Opresnik)
 Developing the Sales Promotion Program

Selecting types of promotions,

Size of incentive

Conditions for participation

Promotion distribution of the

promotional program

Length of promotion
evaluations
Copyright 2017 Pearson Education, Ltd
(Armstrong, Kotler & Opresnik)
 Looking Ahead to Chapter 14

Direct and Online

Marketing:
Building Direct Customer
Relationships