CHAPTER 17 Personal Selling and Sales Promotion

INTEGRATED MARKETING COMMUNICATION

RAYAT LONDON COLLEGE 2011

Personal Selling and Sales Promotion

Objectives

1. Describe the role of todays salesperson. 2. Describe the four sales channels. 3. Describe the major trends in personal selling. 4. Identify and briefly describe the three basic sales tasks. 5. Outline the seven steps in the sales process. 6. Identify the seven basic functions of a sales manager.

CHAPTER 17 Personal Selling and Sales Promotion

INTRODUCTION
Personal Selling

Interpersonal influence process involving a sellers promotional presentation conducted on a person-toperson basis with the buyer. Sixteen million people in the U.S. are employed in sales. Personal selling is the single largest marketing expense in many firms.

CHAPTER 17 Personal Selling and Sales Promotion

THE EVOLUTION OF PERSONAL SELLING

Salespeople are problem solvers who focus on meeting customers needs before, during, and after the sale. Must be able to do the following: Focus on customers needs and problems, and offer solutions. Follow through with phone calls and other communications. Develop expertise about their industry and product. Go the extra mile to fulfill customers needs beyond their expectations. Bureau of Labor Statistics predicts that jobs in sales will grow by 10 percent over the next decade.

CHAPTER 17 Personal Selling and Sales Promotion

THE FOUR SALES CHANNELS

Channels all include both business-to-business and direct-to-customer selling. Over-the-counter selling Personal selling conducted in retail and some wholesale locations in which customers come to the sellers place of business. Field selling Sales presentations made at prospective customers locations on a face-to-face basis. Telemarketing Promotional presentation involving the use of the telephone on an outbound basis by salespeople or on an inbound basis by customers who initiate calls to obtain information and place orders. Inside selling Selling by phone, mail, and electronic commerce. Firms generally blend sales channels in their sales organization.

CHAPTER 17 Personal Selling and Sales Promotion

TRENDS IN PERSONAL SELLING

Companies rely on three major personal selling approaches to meet customer needs. Relationship selling Regular contacts between sales representatives and customers over an extended period to establish a sustained buyer-seller relationship. Consultative selling Meeting customer needs by listening to them, understanding their problems, paying attention to details, and following through after the sale. Team selling Selling situation in which several sales associates or other members of the organization are recruited to help the lead sales representative reach all those who influence the purchase decision.

CHAPTER 17 Personal Selling and Sales Promotion

SALES TASKS
Ensuring that buyers purchases are in his or her best interest aids the development of long-term relationships. Selling involves three basic tasks: Order processing Selling, mostly at the wholesale and retail levels, that involves identifying customer needs, pointing them out to customers, and completing orders. Creative selling Personal selling that involves situations in which a considerable degree of analytical decision making on the buyers part results in the need for skillful proposals of solutions for the customers needs. Missionary selling Indirect type of selling in which specialized salespeople promote the firms goodwill among indirect customers, often by helping customers use products.

CHAPTER 17 Personal Selling and Sales Promotion

CREATIVE SELLING
Creative selling Personal selling that involves situations in which a considerable degree of analytical decision making on the buyers part results in the need for skillful proposals of solutions for the customers needs. Generally used to develop new business with either new customers of new products for existing customers.

MISSIONARY SELLING
Missionary selling Indirect type of selling in which specialized salespeople promote the firms goodwill among indirect customers, often by helping customers use products. Example: Pharmaceutical companies that use free samples, educational seminars to court doctors. May involve both field selling and telemarketing.

CHAPTER 17 Personal Selling and Sales Promotion

THE SALES PROCESS

Steps follow the AIDA concept. Attention Interest Desire Action

CHAPTER 17 Personal Selling and Sales Promotion

PROSPECTING AND QUALIFYING

Prospectingidentifying potential customers. Qualifyingdetermining that the prospect really is a potential customer.

APPROACH
Initial contact with prospective customer. Use precall planning research to identify how your products might best meet customers needs.

PRESENTATION
Conveying marketing message to the customer. Features-benefits framework focuses on the good or service in terms that are meaningful to the buyer.

CHAPTER 17 Personal Selling and Sales Promotion

DEMONSTRATION
Buyer has a chance to try a product or see how it works.

HANDLING OBJECTIONS
Expressions of resistance, such as stalling or indecision, by the prospect are an opportunity to reassure the buyer or offer suitable alternatives.

CLOSING
Point at which salesperson asks the prospect for an order. Let buyer know you are ready to be of service in the future.

FOLLOW-UP
Successful sales people turn todays customers into tomorrows by reinforcing the purchase decision. Ensure that customer service needs are met.

CHAPTER 17 Personal Selling and Sales Promotion

MANAGING THE SALES EFFORT

Sales managers mix sales and management skills to manage the overall direction and control of the personal selling effort.

RECRUITMENT AND SELECTION

Important because of company investment in the hiring process and the potential damage to customer relationships and overall performance.

TRAINING
Primary methods are on-the-job training, individual instruction, how-to classes, and external seminars; often ongoing for experienced salespeople.

ORGANIZATION
National accounts organizationassigning senior sales personnel or sales teams to major accounts in each market.

CHAPTER 17 Personal Selling and Sales Promotion

SUPERVISION
Span of controlnumber of sales representatives who report to first-level sales managers.

MOTIVATION
Tools include information sharing, recognition, bonuses, and benefits. Expectancy theorymotivation depends on the expectations an individual has of his or her ability to perform the job and on how performance relates to attaining rewards that the individual values.

COMPENSATION
Commissioncompensation tied directly to the sales or profits the salesperson achieves. Salaryfixed payment made periodically to an employee. Many firms combine the features of both commission and salary in their compensation programs.

CHAPTER 17 Personal Selling and Sales Promotion

EVALUATION AND CONTROL Managers must set standards and choose the best methods for measuring sales performance. Sales quotasspecified sales or profit targets that the firm expects salespeople to achieve. Other measures include customer satisfaction, profit contribution, share of product-category sales, and customer retention. Evaluations should motivate improved performance.

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ETHICAL ISSUES IN SALES Long-term success requires strong code of ethics. Honesty and ethical behavior is encouraged when: Employees understand what is expected of them. Open communication is encouraged. Managers lead by example.

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SALES PROMOTION

Sales promotion refers to any paid consumer or trade communication program of limited duration that adds tangible value to a product or brand
Price vs. non-price promotions Consumer vs. trade promotions

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SALES PROMOTION
Sales promotion Marketing activities other than personal selling, advertising, and publicity that enhance consumer purchasing and dealer effectiveness. Goal is speeding the sales process and increasing sales volume. Produce best results when combined with other marketing activities, such as advertising. Cannot overcome poor brand images, product deficiencies, or poor training for salespeople.

CONSUMER-ORIENTED SALES PROMOTIONS

Goals: Encourage repurchases by rewarding current users, boost sales of complementary products, and increase impulse purchases. Couponsmost widely used form of sales promotion.

CHAPTER 17 Personal Selling and Sales Promotion

Refunds or rebateshelp packaged-goods companies increase purchase rates, promote multiple purchases, and reward product users. Samples, bonus packs, and premiumsa try it, youll like it approach. Contestsrequire entrants to complete a task such as solving a puzzle or answering questions in a trivia quiz. Sweepstakeschoose winners by chance; no product purchase is necessary. Specialty Advertisingsales promotion technique that places the advertisers name, address, and advertising message on useful articles that are then distributed to target consumers.

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TRADE-ORIENTED PROMOTION
Sales promotion that appeals to marketing intermediaries rather than to final consumers. Accounts for half of typical firms promotion budget. Trade allowancesspecial financial incentives offered to wholesalers and retailers that purchase or promote specific products. Point-of-purchase advertisingdisplay or other promotion located near the site of the actual buying decision. Trade showsvendors who serve the industries display and demonstrate their products for members. Dealer incentives, contests, and training programs.

CHAPTER 17 Personal Selling and Sales Promotion