Chapter 20 Personal Selling And Sales Promotion0

Objectives Understand purposes of personal selling Describe steps in personal selling process Identify types of sales force personnel Recognize types of personal selling Understand sales management decisions and activities Explain sales promotion activities and how used Explore specific consumer/trade sales promotion methods

Elements of the Personal Selling Process Prospecting Preapproach Approach Making the presentation Overcoming objections Closing the sale Following up

General Steps in the Personal Selling Process

Prospect Must Be: Able Willing Authorized

Many sales teams use technology like WebEx to enhance presentations Reprinted with permission of WebEx Communications, Inc.

Advantages/Disadvantages Of Personal Selling Freedom to adjust message to customer Most precise promotion method Most expensive promotion method

Types Of Salespeople Order Getter Order Taker Support Personnel Current-Customer New-Business Order Taker Inside Field Support Personnel Missionary Trade Technical

Selected Types Of Selling Team – experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process Relationship – mutually beneficial long-term associations with a customer through regular communications

Managing The Sales Force Establish Objectives Determine Size Recruit/Select Train Compensate Salary Commission Combination Motivate Manage Territories Create Route/Schedule Control/Evaluate

Prepare Job Description Analyze Successful Salespeople Recruiting Steps Prepare Job Description Develop Requirements Analyze Successful Salespeople

Compensating Salespeople Straight salary compensation plan paid a specified amount despite effort Straight commission compensation plan compensated solely by sales Combination compensation plan

Average Salaries for Sales Representatives

Sales Force Compensation Methods

Managing Sales Territories Creating sales territories Measurable sales potential Geographic size Routing and scheduling salespeople Geographic size/shape Number of customers

Controlling and Evaluating Sales Force Performance Information for managers Call reports Customer feedback Invoices Set sales objectives/performance indicators Calls per day and cost per call Average sales per customer and gross profit per customer Actual sales vs. sales potential Number of new customer orders

Nature of Sales Promotion Sales promotion – an activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it

Consumer Sales Promotion Methods Sales promotion techniques that encourage consumers to patronize specific stores or try particular products

Coupons A written price reduction used to encourage consumers to buy a specific product

Effect Of Income On Coupon Usage

Effect Of Age On Coupon Usage

Coupon Advantages Effective for brand awareness Users Reward present Win back former Encourage quantity purchase Traceable to target market

Coupon Drawbacks Fraud Misredemption Expensive for manufacturers Losing value Brand loyalty diminished Not enough of item in stock

Types Of Coupons Cents-Off Money Refunds Rebates Frequent-User Incentives

Other Promotional Methods Point-of-Purchase Materials Demonstrations Free Sample Premiums Consumer Contests Consumer Games Sweepstakes

Trade Sales Promotion Methods Intended to persuade wholesalers and retailers to carry a producer’s products and market them more aggressively

Methods Trade Allowances Cooperative Advertising and Dealer Listing Buying Buy-back Scan-back Merchandise Cooperative Advertising and Dealer Listing Free Merchandise and Gifts Premium (Push) Money Sales Contests