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no1knows
16.ppt
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Chapter 16 - slide *
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Sixteen
Personal Selling
and
Sales Promotion
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Personal Selling and
Sales Promotion
- Personal Selling
- Role of the Sales Force
- Managing the Sales Force
- The Personal Selling Process
- Sales Promotion
Topic Outline
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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
The Role of the Sales Force
Note to Instructor
This Web link is to one of many professional sales organizations—it is important to mention what a well respected field sales is as students often think of in-store retail sales only.
Discussion Question
Who has held a sales position? What were your responsibilities?
You can the ask them to describe the job so you can use it as an example in future slides. Many students will have worked at inside sales positions and many of them have cold called extensively as part of their jobs. You can also ask them how they were paid—salary, commission, bonus? This will tie into future slides.
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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
The Nature of Personal Selling
Note to Instructor
Examples of people who do the selling include:
Salespeople
Sales representatives
District managers
Account executives
Sales engineers
Agents
Account development reps
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Managing the Sales Force
- Sales force management is the analysis, planning, implementation, and control of sales force activities
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Managing the Sales Force
Designing Sales Force Structure
Note to Instructor
These are the four ways that sales responsibilities can be divided.
Discussion Question
How will a company decide which structure is best for them?
The decision is based on how many product lines, how many industries, the size of the sales force, and the number of buyers.
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Managing the Sales Force
Territorial sales force structure refers to a structure where each salesperson is assigned an exclusive geographic area and sells the company’s full line of products and services to all customers in that territory
- Defines salesperson’s job
- Fixes accountability
- Lowers sales expenses
- Improves relationship building and selling effectiveness
Sales Force Structure
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Managing the Sales Force
Product sales force structure refers to a structure where each salesperson sells along product lines
- Improves product knowledge
- Can lead to territorial conflicts
Sales Force Structure
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Managing the Sales Force
Customer sales force structure refers to a structure where each salesperson sells along customer or industry lines
- Improves customer relationships
Sales Force Structure
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Managing the Sales Force
Complex sales force structure refers to a structure where a wide variety of products is sold to many types of customers over a broad geographic area and combines several types of sales force structures
Sales Force Structure
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Managing the Sales Force
Salespeople are one of the company’s most productive and expensive assets.
- Increases in sales force size can increase sales and costs
- Workload approach to sales forces size refers to grouping accounts into different classes to determine the number of salespeople needed
Sales Force Size
Note to Instructor
It is interesting for students to have a relative understanding of the size of some companies sales forces.
The book quotes the following:
- Xerox employs 16, 000 U.S. salespeople
- American Express, 23,400
- PepsiCo 36,000
- AFLAC 56,000
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Managing the Sales Force
Outside salespeople call on customers in the field
Inside salespeople conduct business from their offices and often provide support for the outside salespeople
- Technical sales support people
- Sales assistants
Team selling is used to service large, complex accounts
Other Sales Force Strategy and Structure Issues
Note to Instructor
Challenges of team selling include:
- Confusing and overwhelming customers used to working with one salesperson.
- Salespeople used to working alone can have difficulties working with and trusting teams.
- Evaluating individual contributions can lead to compensation issues.
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Managing the Sales Force
- Careful selection and training increases sales performance
- Poor selection
- Increases recruiting and training costs
- Lost sales
- Disrupts customer relationships
Recruiting and Selecting Salespeople
Issues in Recruiting and Selecting
Note to Instructor
This Web site link is to salesjobs.com. This is one of the largest online sales recruiting Web sites. It might be interesting to explore listings, salaries, and job requirements with the students.
In slideshow view, click on movie icon to launch Principal Financial Group video snippet. See accompanying DVD for full video segment.
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Managing the Sales Force
Salesperson compensation based on:
Note to Instructor
To attract good salespeople, a company must have an appealing compensation plan. Compensation is made up of several elements—a fixed amount, a variable amount, expenses, and fringe benefits. The fixed amount, usually a salary, gives the salesperson some stable income. The variable amount, which might be commissions or bonuses based on sales performance, rewards the salesperson for greater effort and success. This Web link ties to a survey of salesperson salaries.
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Managing the Sales Force
- The goal of supervision is to help salespeople work smart by doing the right things in the right ways
- The goal of motivation is to encourage salespeople to work hard and energetically toward sales force goals
Supervising and Motivating Salespeople
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Managing the Sales Force
How Salespeople Spend Their Time
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Managing the Sales Force
Major tool to support salespeople
Selling and the Internet
Note to Instructor
The text has an excellent example of how the internet helps pharmaceutical reps:
U.S. pharmaceutical company reps are finding it harder than ever to get through to the busy doctors.
The pharmaceutical companies now regularly use product Web sites, e-mail marketing, and video conferencing to help reps deliver useful information to physicians on their home or office PCs.
One study found that last year more than 200,000 physicians participated in “e-detailing”—the process of receiving drug marketing information via the Web—a 400 percent jump in only three years. More than 20 percent have now substituted e-detailing for face-to-face meetings with reps entirely.
Using direct-to-doctor Web conferences, pharmaceuticals reps can make live, interactive medical sales presentations to any physician with a PC and Web access, saving both the customer’s and the rep’s time.
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Managing the Sales Force
- Sales morale and performance can be increased through:
- Organizational climate
- Sales quotas
- Positive incentives
Supervising and Motivating Salespeople
Note to Instructor
This link is to the Mary Kay Web site. This page lists the rewards that are available to Mary Kay salespeople including a pink Cadillac for the highest seller.
Organizational climate describes the feeling that salespeople have about their opportunities, value, and rewards for good performance.
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Managing the Sales Force
Evaluating Salespeople and Sales Force Performance
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The Personal Selling Process
The goal of the personal selling process is to get new customers and obtain orders from them
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The Personal Selling Process
Prospecting identifies qualified potential customers through referrals from:
- Customers
- Suppliers
- Dealers
- Internet
Steps in the Personal Selling Process
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The Personal Selling Process
Qualifying is identifying good customers and screening out poor ones by looking at:
- Financial ability
- Volume of business
- Needs
- Location
- Growth potential
Steps in the Personal Selling Process
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The Personal Selling Process
Pre-approach 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
Steps in the Personal Selling Process
Note to Instructor
In the pre-approach stage, the salesperson sets call objectives and the best approach.
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The Personal Selling Process
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 Personal Selling Process
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The Personal Selling Process
- Opening lines should be positive, build goodwill, and be followed by key questions to learn about the customer’s needs or showing a display or sample to attract the buyer’s attention and curiosity
- The most important attribute is for the salesperson to: listen
Steps in the Personal Selling Process
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The Personal Selling Process
Presentation is when the salesperson tells the product story to the buyer, presenting customer benefits and showing how the product solves the customer’s problems
- Need-satisfaction approach: Buyers want solutions and salespeople should listen and respond with the right products and services to solve customer problems
Steps in the Personal Selling Process
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The Personal Selling Process
Steps in the Personal Selling Process
Bad Traits
Good traits
Note to Instructor
Before advancing to second set of traits—ask students what qualities buyers like in a salesperson.
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The Personal Selling Process
Handling objections is the process where salespeople resolve problems that are logical, psychological, or unspoken
Steps in the Personal Selling Process
Note to Instructor
When handling objections from buyers, salespeople should:
Be positive
Seek out hidden objections
Ask the buyer to clarify any objections
Take objections as opportunities to provide more information
Turn objections into reasons for buying
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The Personal Selling Process
Closing is the process where salespeople should recognize signals from the buyer—including physical actions, comments, and questions—to close the sale
Steps in the Personal Selling Process
Note to Instructor
Discussion Question
How does a salesperson can close a sale?
Closing techniques can include:
- Asking for the order
- Reviewing points of agreement
- Offering to help write up the order
- Asking if the buyer wants this model or another one
- Making note that the buyer will lose out if the order is not placed now
- Offering incentives to buy, including lower price or additional quantity
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The Personal Selling Process
Follow-up is the last step in which the salesperson follows up after the sale to ensure customer satisfaction and repeat business
Steps in the Personal Selling Process
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The Personal Selling Process
Personal selling is transaction-oriented to close a specific sale with a specific customer
- The long-term goal is to develop a mutually profitable relationship
Personal Selling and Managing Customer Relationships
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Sales Promotion
Sales promotion refers to the short-term incentives to encourage purchases or sales of a product or service:
- Consumer promotions
- Trade promotions
- Sales force promotions
Note to Instructor
This is a Web link to promomagazine.com. It is worth exploring with the students as it give excellent current examples of promotions.
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Sales Promotion
- Product managers are under pressure to increase current sales
- Companies face more competition
- Competing brands offer less differentiation
- Advertising efficiency has declined due to rising costs, clutter, and legal constraints
- Consumers have become more deal-oriented
Factors in the Growth of Sales Promotions
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Sales Promotion
- Setting sales promotion objectives includes using:
- Consumer promotions
- Trade promotions
- Sales force promotions
Sales Promotion Objectives
Note to Instructor
Consumer promotion objectives:
Urge short-term customer buying
Enhance long-term customer relationships
Trade promotions urge retailers to:
Carry new items or more inventory
Buy in advance
Advertise company products
Get more shelf space
Sales force objectives include getting:
More sales force support for new or current products
Salespeople to sign up new accounts
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Sales Promotion
Major Sales Promotion Tools
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Sales Promotion
Samples offer a trial amount of a product
Coupons are certificates that give buyers a saving when they purchase specified products
Cash refunds are similar to coupons except that the price reduction occurs after the purchase
Price packs offer consumers savings off the regular price of a product
Major Sales Promotion Tools
Consumer Promotion Tools
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Sales Promotion
Premiums are goods offered either for free or at low price
Advertising specialties are useful articles imprinted with the advertiser’s name, logo, or message that are given as gifts to consumers
Point-of-purchase promotions include displays and demonstrations that take place at the point of sales
Major Sales Promotion Tools
Consumer Promotion Tools
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Sales Promotion
Contests, sweepstakes, and games give consumers the chance to win something—such as cash, trips, or goods—by luck or through extra effort
- Contests require an entry by a consumer
- Sweepstakes require consumers to submit their names for a drawing
- Games present consumers with something that may or may not help them win a prize
- Event marketing
Major Sales Promotion Tools
Consumer Promotion Tools
Note to Instructor
Event marketing is on the rise. The text gives an example of Charmin:
P&G recently sponsored a holiday event promotion for its Charmin brand in New York’s Times Square, where it can be very difficult to find a public restroom. For the second year running, P&G set up 20 sparkling clean Charmin-themed mini-bathrooms, each with its own sink and a bountiful supply of Charmin. The event turned out to be the ultimate in experiential marketing—touching people in places advertising wouldn’t dare to go. More than 420,000 people gratefully used the facilities and privately voted for the Charmin they preferred (Charmin Ultra Soft or Ultra Strong).
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Sales Promotion
Major Sales Promotion Tools
Trade Promotion Tools
Note to Instructor
Trade promotion tools persuade resellers to:
- Carry a brand
- Give the brand more shelf space
- Promote the brand in advertising
- Push the brand to consumers
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Sales Promotion
Conventions and trade shows are effective to reach many customers not reached with the regular sales force
Sales contests are effective in motivating salespeople or dealers to increase performance over a given period
Major Sales Promotion Tools
Business Promotion Tools
Note to Instructor
Business promotion tools are used to:
Generate leads
Stimulate purchases
Reward customers
Motivate salespeople
This Web link is to the International Boston Seafood show which is held annually for three days in Boston. It is worth exploring this sight to learn more about the trade show industry.
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Sales Promotion
- Size of the incentive
- Conditions for participation
- Promote and distribute the program
- Length of the program
- Evaluation of the program
Developing the Sales Promotion Program
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Five-Minute Drill
- Select a Product or Service…
- Develop a Sales Promotion Using at Least Three of the Major Sales Promotion “Tools” That We Have Discussed
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