Download Chapter 13 slides

Personal Selling and
Sales Promotion
Chapter 13
Rest Stop: Previewing the Concepts
• Discuss the role of a company’s salespeople
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in creating value for customers and building
customer relationships
Identify and explain the six major sales force
management steps
Discuss the personal selling process,
distinguishing between transaction-oriented
marketing and relationship marketing
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Rest Stop: Previewing the Concepts
• Explain how sales promotion campaigns are
developed and implemented
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First Stop: P&G
• Its sales force has long been an American icon
for selling at its very best
• It understands that if its customers don’t do
well, neither will the company
• Its business development involves partnering
with customers to jointly identify strategies
that create shopper value and satisfaction
and drive profitable sales at the store level
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Personal selling
• Personal presentations by the firm’s sales
force for the purpose of making sales and
building customer relationships
Salesperson
• Individual representing a company to
customers by performing one or more of the
following activities:
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Prospecting
Communicating
Selling
Servicing
Information gathering
Relationship building
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The Role of the Sales Force
• Serve as a critical
link between a
company and its
customers
• Coordinate
marketing and sales
Salespeople link the company with
its customers. To many customers,
the salesperson is the company.
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Sales force management
• Analyzing, planning, implementing, and
controlling sales force activities
Figure 13.1 – Major Steps in Sales
Force Management
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Types of Sales Force Structure
• Territorial: Assigns each salesperson to an
exclusive geographic territory in which that
salesperson sells the company’s full line
• Product: Salespeople specialize in selling only
a portion of the company’s products or lines
• Customer (or market): Salespeople specialize
in selling only to certain customers or
industries
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Sales Force Structure
Whirlpool specializes its sales force by customer and by
territory for each key customer group
Sales Force Size
• May range from only a few to thousands
• Many companies use some form of workload
approach to set sales force size
• Company first groups accounts into different
classes according to size, account status, or other
factors
• Then determines the number of salespeople
needed to call on each class of accounts
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Other Sales Force Strategy and
Structure Issues
• Outside sales force (or field sales force):
Salespeople who travel to call on customers
in the field
• Inside sales force: Salespeople who conduct
business from their offices via telephone, the
Internet, or visits from prospective buyers
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Other Sales Force Strategy and
Structure Issues
For many types of selling situations, phone or Web selling can be as
effective as a personal sales call. At Climax Portable Machine Tools, phone
reps build surprisingly strong and personal customer relationships.
Team selling
• Using teams of people from sales,
marketing, engineering, finance, technical
support, and even upper management to
service large, complex accounts
Recruiting and Selecting Salespeople
The best salespeople possess intrinsic motivation, a disciplined work
style, the ability to close a sale, and, perhaps most important, the ability
to build relationships with customers
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Training Salespeople
• Training programs teach salespeople:
• About different types of customers and their
needs, buying motives, and buying habits
• How to sell effectively
• Basics of the selling process
• How to know and identify themselves with the
company, its products, and the strategies of major
competitors
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Training Salespeople
• Companies provide
continuing sales
training via
seminars, sales
meetings, and
Internet e-learning
throughout the
salesperson’s career
E-Training can make sales training more
efficient—and more fun. Bayer
HealthCare Pharmaceuticals’ roleplaying video game—Rep Race—helped
improve sales rep effectiveness by 20
percent.
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Compensating Salespeople
• Compensation consists of four elements:
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Fixed amount,
Variable amount
Expenses
Fringe benefits
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Compensating Salespeople
• Different combinations of fixed and variable
compensation give rise to four basic types of
compensation plans:
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Straight salary
Straight commission
Salary plus bonus
Salary plus commission
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Supervising Salespeople
• Goal
• Help salespeople work smart by doing the right
things in the right way
• Sales force management tools:
• Call plan – Shows which customers and prospects
to call on and which activities to carry out
• Time-and-duty analysis
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Sales Force Automation System
• Computerized,
digitized sales force
operations that let
salespeople work
more effectively
anytime, anywhere
Technology has reshaped the ways in
which salespeople carry out their
duties and engage customers
Marketing At Work
• Online selling tools
build customer
awareness and
consideration,
purchase interest,
and salespeople,
• Extend their reach
and effectiveness of
salespeople
Selling on the Internet
• Benefits
• Conserves salespeople’s valuable time, saves
travel dollars, and gives them a new vehicle for
selling and servicing accounts
• Gives customers more control over the sales
process
• Drawbacks
• Expensive
• Intimidates low-tech salespeople or clients
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Motivating Salespeople
• Goal
• Encourage salespeople to work hard and
energetically toward sales force goals
• Management boost sales force morale by:
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Organizational climate
Sales quotas
Positive incentives
Sales meetings
Sales contests
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Organizational climate
• Describes the feeling that salespeople have about
opportunities, value, and rewards for a good
performance
Sales quotas
• Standard that states the amount a salesperson should
sell and how sales should be divided among the
company’s products
Sales meetings
• Provides social occasions, breaks from the routine,
chances to meet and talk with company brass, and
opportunities to air feelings and identify with a larger
group
Evaluating Salespeople and Sales
Force Performance
• Management gets information about its
salespeople from:
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Sales reports
Call reports
Expense reports
Monitoring the sales and profit performance
data in the salesperson’s territory
• Personal observation, customer surveys, and
talks with other salespeople
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Evaluating Salespeople and Sales Force
Performance
• Formal evaluation
• Forces management to develop and
communicate clear standards for judging
performance
• Provides salespeople with constructive feedback
and motivates them to perform well
• Company should measure its return on sales
investment
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Steps in the Selling Process
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Prospecting and qualifying
Preapproach
Approach
Presentation and demonstration
Handling objections
Closing
Follow-up
Figure 13.3 – Steps in the Selling
Process
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Steps in the Selling Process
• Prospecting and qualifying
• Prospecting: Identifying qualified potential
customers
• Qualifying – Identifying good ones and screening
out poor ones
• Preapproach: Learning as much as possible
about a prospective customer before making
a sales call
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Steps in the Selling Process
• Approach: Meeting the customer for the first
time
• Presentation and demonstration:
• Presentation: Telling the value story to the buyer,
showing how the company’s offer solves the
customer’s problems
• Handling objections: Seeking out, clarifying,
and overcoming any customer objections to
buying
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Steps in the Selling Process
• Closing: Asking the
customer for an
order
• Follow-up: Following
up after the sale to
ensure customer
satisfaction and
repeat business
This classic ad from Boise makes the
point that good selling starts with
listening. “Our account
representatives have the unique
ability to listen to your needs.”
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Personal Selling and Managing Customer
Relationships
• Most companies want their salespeople to
practice value selling
• Value selling requires:
• Listening to customers
• Understanding their needs
• Carefully coordinating the whole company’s
efforts to create lasting relationships based on
customer value
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Sales promotion
• Short-term incentives to encourage the
purchase or sales of a product or a service
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Targets of Sales Promotion
• Final buyers (consumer
promotions)
• Retailers and wholesalers
(trade promotions)
• Business customers
(business promotions)
• Members of the sales force
(sales force promotions)
Magazines are loaded
with offers like this one
that promote a strong
and immediate
response
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Factors Contributing to the Growth of
Sales Promotion
• Product managers view promotion as an
effective short-run sales tool
• Competitors use sales promotion to
differentiate their offers
• Advertising efficiency has declined
• Sales promotions help attract today’s more
thrift-oriented consumers
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Sales Promotion Objectives
• Sales promotions:
• Are used together
with other
promotion mix tools
• Help reinforce
product’s position
and build long-term
customer
relationships
Customer loyalty programs:
Kroger keeps its Plus Card
holders coming back by linking
food purchases to discounts on
gasoline prices
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Consumer promotion
• Sales promotion tools used to boost short-term
customer buying and involvement or to
enhance long-term customer relationships
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Consumer Promotion Tools
• Samples – Offers of a trial amount of a
product
• Coupons – Certificates that save buyers
money when they purchase specified
products
• Cash refunds (or rebates) – Price reduction
occurs after purchase to the manufacturer,
which then refunds part of the purchase price
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Marketing at Work
• Mobile marketing
can be very effective
• Coupons by phone
offer an alluring
opportunity
As mobile phones become appendages that
many people can’t live without, companies
from Target and Sears to Chick-fil-A and
Enterprise Rent-A-Car are testing the mobile
couponing waters
Consumer Promotion Tools
• Price packs (or cents-off deals) – Offer
consumers savings off the regular price of a
product
• Premiums – Goods offered either free or at
low cost as an incentive to buy a product
• Advertising specialties (or promotional
products) – Useful articles imprinted with an
advertiser’s name, logo, or message
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Consumer Promotion Tools
• Point-of-purchase (POP) promotions –
Displays and demonstrations that take place
at the point of sale
• Contests, sweepstakes, and games – Give
consumers the chance to win something
• Event marketing: Creating a brand-marketing
event or serving as a sole or participating
sponsor of events created by others
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Companies use sweepstakes and contests to create brand attention and boost
consumer involvement. Enter this year’s “Dads Making a Difference Contest” and
you could win your dad up to $30,000 in support of a community project
Trade promotion
• Sales promotion tools used to persuade
resellers to carry a brand, give it shelf space,
promote it in advertising, and push it to
consumers
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Trade Promotion Tools
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Contests
Premiums
Displays
Discounts/Price-off/Off-invoice/Off-list
Allowances
Free goods
Push money
Specialty advertising items
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Business promotion
• Sales promotion tools used to generate
business leads, stimulate purchases, reward
customers, and motivate salespeople
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Business Promotion Tools
• Include many of the same tools used for
consumer or trade promotions
• Conventions and trade shows – Help vendors
find new sales leads, contact customers,
introduce new products, etc.
• Sales contests – Contest for salespeople or
dealers to motivate them to increase their
sales performance over a given period
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Developing the Sales Promotion Program
• Marketers must:
• Determine the size of the incentive
• Set conditions for participation
• Determine how to promote and distribute the
promotion program itself
• Set the length of promotion
• Evaluate the promotion
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Rest Stop: Reviewing the Concepts
• Discuss the role of a company’s salespeople
•
•
in creating value for customers and building
customer relationships
Identify and explain the six major sales force
management steps
Discuss the personal selling process,
distinguishing between transaction-oriented
marketing and relationship marketing
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Rest Stop: Reviewing the Concepts
• Explain how sales promotion campaigns are
developed and implemented
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mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2013 Pearson Education, Inc.
Publishing as Prentice Hall
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