Download Marketing Management

Marketing Management
29th of June 2011
Personal Selling and Sales
Promotion
The Nature of Personal Selling
• Personal Selling: Personal presentation by a firm’s
sales force for the purpose of making sales and building
customer relationships
• Salespeople are no longer the typical sales people
stereotypes we used to think
• Today, buying is about more than the transaction
• Sales is about building customer relationships through a
focus on differentiation and linking these to customer’s
realisation of value
• Salespeople vary from order takers, to order getters, and
relationship builders
The Role of The Sales Force
• Advertising consists of non personal communication
whereas personal selling is interpersonal
• Personal selling involves interpersonal interactions
between salespeople and customers
• Personal selling allows the opportunity to probe and
adjust marketing to fit customer needs
• Personal selling varies from different companies
• In services orientated companies, sales team works
directly with customers
• In FMCG environment, sales team is more behind the
scenes and works with intermediaries
The Role of The Sales Force
• Linking Company with Customers
– Sales force play a critical part of the above
Sales force represent the company to the customer
– Develop new customers and communicate information about
products and services
– Present products, negotiate terms and prices, closing sales, and
handling objections
– Carry our market research and intelligence
Sales force represents customer to the company
– They champion the customer’s interests and manage
relationships
– Communicate customer concerns about products
– Develop greater customer value after assessing wants and
needs
– Sales force is the company to the end customer
The Role of The Sales Force
The Role of The Sales Force
• Coordinating Marketing and Sales
– Sales force and all marketing functions should work
together to create customer value
– Unfortunately “feet stuck in the mud” – sales and
“heads stuck in the clouds” – brand marketing
– Actions to bring sales and marketing together:
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Increase Joint Communication initiatives
Joint Assignments involving both parties
Joint Objectives and Rewards systems
Appoint Marketing and Sales Liaisons
Marketing Executive to oversee both – Chief Customer
Officer
The Role of The Sales Force
Managing the Sales Force
• Sales Force Management: the analysis,
planning, implementation, and control of sales
force activities. It includes:
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Designing Sales Force Strategy and Structure
Recruiting and Selecting Salespeople
Training Salespeople
Compensating Salespeople
Supervising and Motivating Salespeople
Evaluating Salespeople and Sales force Performance
Steps in Sales Force Management
The Personal Selling Process
• Selling Process: the steps which a salesperson must
master including:
– Prospecting and Qualifying: identifying qualified potential
customers
– Pre-approach: learning as much about the prospective customer
– Approach: meeting the customer
– Presentation and Demonstration: selling value and solutions to
the customer
– Handling Objections: clarifying and overcoming objections
– Closing: asking for the order
– Follow-up: ensure customer satisfaction and repeat business
• The above steps are transaction orientated
The Personal Selling Process
The Personal Selling Process
• Personal Selling and Managing Customer
Relationships
– Sometimes companies seek to win and keep
customers
– The aim is to build profitable customer relationships
– These sales people work with customer teams to
improve products and processes
– The initial sale is only the beginning of the longer term
relationship
– These sales people practice value selling –
demonstrating and delivering superior customer value
– Also involves capturing fair return on value for both
the customer and the company
The Personal Selling Process
• Personal Selling and Managing Customer
Relationships
– Value Selling Involves:
• Listening to customers
• Understanding Customer Needs
• Carefully co-ordinating company efforts to create
lasting relationships based on customer value
– The aim is not to just make a sale transaction
– The aim is to establish and to build an
enduring relationship between the companies
Sales Promotion
• Sales Promotion: short-term incentives to encourage the
purchase or sale of a product or service.
• Factors which have contributed to rapid growth of sales
promotions
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Pressure to increase product sales
More competition and less differentiation
Decline in advertising efficiency
More deal and value orientated consumers
• More promotion clutter similarly to advertising clutter
• Companies have to come up with means and ways of
breaking the clutter
• Sales Promotion programmes have to have proper set
objectives and the right tools to fulfil the objectives
Sales Promotion
• Sales Promotion Objectives
– Sales promotion objectives vary widely and may be used for
short-term or to enhance involvement
– Trade Promotion Objectives:
• Retailers carrying new items and new inventory
• Buying ahead and more shelf space
– Sales Promotion Objectives:
• More sales force support for current or new products
• Getting sales force to sign up new accounts
– Sales promotions are usually used with advertising , personal
selling, direct marketing and other mix tools
– Sales promotions should be reinforce the product’s position and
build long-term customer relationships
– If executed well short-term excitement and long-term
relationships are achieved
Sales Promotion
• Major Sales Promotion Tools
– Consumer Promotions: Sales promotion tools used
to boost short-term customer buying and involvement
or to enhance long-term customer relationships
• Samples, coupons, refunds, premiums, POS displays, event
marketing
– Trade Promotions: Sales promotion tools used to
persuade resellers to carry a brand, give it shelf
space, advertise it and push it to consumers
– Business Promotions: Sales promotion tools used
to generate business leads, stimulate purchases,
reward customers, and motivate sales people
• Conventions and trade shows as well as sales contests
Sales Promotion
Sales Promotion
See you next time.
Cheers Guys!