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Kotler, Armstrong
Principles of Marketing 4e
Chapter 13
IMC: Sales Promotion and
Personal Selling
Chapter Objectives (1)
1. Describe sales promotion tools and
techniques which may be used to create
immediacy and close sales, as well as
reward loyal customers.
2. Discuss the role of a company's
salespeople in creating value for customers
and building customer relationships.
3. Identify the six major salesforce
management steps.
Chapter Objectives (2)
4. Explain how companies recruit, select and
train salespeople.
5. Describe how companies compensate and
supervise salespeople, and how they
evaluate salesforce effectiveness.
6. Discuss the personal selling process,
distinguishing between transaction-oriented
marketing and relationship marketing.
Sales Promotion
• Sales promotion is the act of influencing
customer/consumer perception and behaviour to
build market share and sales which reinforces brand
image.
1. Sales promotion is a term that is closely linked with direct
and digital marketing, but has its origins in FMCG.
2. Although the words may be used to mean different things
in different organisations, nearly all marketing scientists
and practitioners agree on what sales promotion tools do.
3. They cover a range of incentives that are used with
products promoted via either mass media advertising or by
direct and digital methods.
Purpose of Sales Promotion
• Sellers use sales promotions to attract new triers, to
reward brand-loyal customers and thereby retain
them, to reduce the time between purchases, and
even to turn light users into medium or heavy users.
The aim might also be to regain past purchasers
who have ceased buying.
• New triers of a product category fall into one of three
groups:
– non-users.
– loyal users of another brand.
– brand switchers.
Setting Sales Promotion Objectives
• Sales promotion objectives are as varied as the
methods used. Sellers may use consumer
promotions to increase short-term sales or to help
build long-term market share.
• The objective may be one of the following:
– to entice consumers to try a new product or
brand.
– to lure consumers away from competitors’
products or brands.
– to get consumers to ‘load up’ on a mature
product.
– to hold and reward loyal customers.
Sales Promotion
• The main tools falling into this category include:
1.Samples
2.Redeemable coupons
3.Cash-back offers
4.Cents-off deals or price packs
5.Premium offers
6.Advertising specialties
7.Patronage rewards
8.Point-of-purchase (POP) promotions
9.Contests and games of chance and skill
Sales Promotion
• Trade Promotion Tools
– An incentive applied to the retail trade to stock
more of a product or to provide increased
merchandising space, usually during a
consumer promotion.
• Business-to-Business Promotion Tools
– Industrial marketers adapt many promotion
tools to suit their own situations in addition to
conventions, trade shows and sales contests
Sales promotions may be used to:
A.
B.
C.
D.
E.
attract new buyers
reward loyal customers
reduce the time between purchases
convert medium users into heavy users
all of the above
Developing Sales Promotion
Programs
• A number of decisions must be made in
order to define the full sales promotion
program:
– Size of the incentive.
– How to promote and distribute the program.
– The length of the promotion.
– Evaluation.
Personal Selling
• There are many types of personal selling jobs, and
the role of personal selling can vary greatly from one
industry to another and from one company to
another.
• The people who do the selling go by many names:
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–
–
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Salespeople
Sales representatives
Account executives/representatives
Sales consultants/engineers
Agents
District mangers
Marketing representatives
The Role of the Salesforce
• Personal selling is the interpersonal arm of the
promotion mix.
• Advertising consists of one-way, non-personal
communication with target consumer groups. In
contrast, personal selling involves two-way, personal
communication between salespeople and individual
customers—whether
–
–
–
–
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face-to-face
by telephone
through video conferences
or by other means
This means that personal selling can be more effective
than advertising in complex selling situations.
Managing the Salesforce
• Salesforce Management
– The analysis, planning, implementation and
control of salesforce activities. It includes
setting salesforce objectives, designing
salesforce strategy, and recruiting, selecting,
training, compensating, supervising and
evaluating the firm’s salesforce.
Recruiting and Selecting Sales
People
• At the head of a successful salesforce operation is
the selection of good salespeople.
• Successful salespeople include a variety of people
but the best share four key talents:
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Intrinsic motivation
Disciplined work style
The ability to close a sale
The ability to build relationships with customers
• Top performers are empathetic, patient, caring,
responsive, good listeners and honest.
Recruiting and Selecting Sales
People
• Recruiting Procedures
– The personnel department looks for applicants by getting
names from current salespeople, using employment
agencies, placing job ads and contacting university
students.
• Selecting Salespeople
– Selection procedures vary from a single informal interview
to lengthy testing and interviewing.
– Tests typically measure sales aptitude, analytical and
organisational skills, personality traits and other
characteristics.
– Required information about applicants includes personal
characteristics, references, past employment history and
interviewer reactions.
Training Salespeople
• Today, the average training period for a salesperson
is four months.
• Training programs have several goals:
– Sales people need to know and identify with the company.
– They need to be familiar with the company’s products.
– They need to know customers’ and competitors’
characteristics.
– Salespeople must know how to make effective
presentations and be trained in the principles of selling.
– They need to understand field procedures and
responsibilities.
As a general rule, the first part of a sales
training program concentrates on:
A. competitor information
B. sales presentations
C. company information
D. procedures and responsibilities
E. "breaking the ice"
Compensating Salespeople
• To attract need salespeople, a company must have
an attractive compensation plan.
• The level of compensation must be close to the
‘going rate’ for the type of job and skills required.
• Compensation is made up of several elements-a
fixed amount, a variable amount, expenses and
fringe benefits.
• Management must decide what mix of these
compensation elements makes the most sense for
each sales job.
Supervising and Motivating
Salespeople
• New salespeople need supervision to help them
‘work smart’.
• Motivation helps them to ‘work hard’ and
energetically towards agreed salesforce goals.
• Salespeople need to use their time efficiently, tools
include:
– Annual call schedule
– Time and duty analysis
– Salesforce automation systems
• Management can boost salesforce morale and
performance through:
– Sales quotas
– Positive incentives
Figure 13.2 How Salespeople
Spend Their Time
Evaluating Salespeople and
Performance
• Sources of Information about salespeople are
derived in several ways:
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Sales reports
Call reports
Expense reports
Personal observation
Customers’ letter and complaints
Customer surveys
Other salespeople
The Personal Selling Process
• Steps in the Selling Process:
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Prospecting
Pre-approach
Approach
Presentation and demonstration
Handling objections
Closing
Follow-up
Personal Selling and Relationship
Marketing
• Relationship marketing (RM) is the process of creating,
maintaining and enhancing strong, value-laden relationships
with customers and other stakeholders.
• RM emphasises building and maintaining profitable long-term
relationships with customers by creating superior customer
value and satisfaction.
• More companies are realising that winning and keeping
accounts requires more than making good products and
closing lots of sales. It requires a carefully coordinated, wholecompany effort to create value-laden satisfying relationships
with important customers.
After the presentation, the salesperson must
be prepared to handle:
A.
B.
C.
D.
E.
objections
money
orders
follow-ups
all of the above