Personal Selling Sales Promotion 16

Definition Salesperson An individual acting for a company by performing one or more of the following activities: prospecting, communicating, servicing, and information gathering.

Salespeople Have Many Names Personal Selling Salespeople Have Many Names Agents Sales consultants Sales Representatives Account Executives Sales Engineers District Managers Marketing Representatives Account Development Representatives

Personal Selling The Role of the Sales Force Two-way personal communication More effective than advertising in complex selling situations The sales force plays a major role in most companies The sales force works to produce customer satisfaction and company profit

Definition Sales Force Management The analysis, planning, implementation, and control of sales force activities. It includes setting and designing sales force strategy; and recruiting, selecting, training, supervising, compensating, and evaluating the firm’s salespeople.

Major Steps in Sales Force Management

Managing the Sales Force Sales Force Strategy and Structure Sales Force Structure Territorial sales force structure Product sales force structure Customer sales force structure Complex sales force structure

Managing the Sales Force Compensating Salespeople Compensation elements: salary, bonuses, commissions, expenses, and fringe benefits Basic compensation plans: Straight salary Straight commission Salary plus bonus Salary plus commission

The Personal Selling Process

Definition Sales Promotion Sales Promotions are short-term incentives to encourage the purchase or sale of a product or service.

Sales Promotion Sales Promotions Can be targeted at final buyers, retailers and wholesalers, business customers, and members of the sales force. The use of sales promotions has been growing rapidly.

Sales Promotion Objectives – Consumer Promotions: Increase short-term sales Generate product trial

Major Consumer Sales Promotion Tools Sample Trial amount of a product Coupons Savings when purchasing specified products Cash Refunds Refund of part of the purchase price Price Packs Reduced prices marked on the label or package Premiums Goods offered free or low cost as an incentive to buy a product Advertising Specialties Articles imprinted with an advertiser’s name given as gifts

Major Consumer Sales Promotion Tools Patronage Rewards Point-of-Purchase Contests Sweepstakes Game Cash or other rewards for the use of a certain product Displays and demonstrations that take place at the point of sale Consumers submit an entry to be judged Consumers submit their names for a drawing Presents consumers with something every time they buy

Sales Promotion Objectives – Trade Promotions: Obtaining distribution and shelf space Encouraging retailers to advertise the brand

Sales Promotion Objectives – Sales Force Promotions: Signing up new accounts Stimulating sales of specific items

Sales Promotion Trade Promotion Tools Discounts (also called price-offs, off-list, and off-invoice discounts) Allowances Advertising allowances Display allowances Free goods Push money Specialty advertising items

Sales Promotion Business Promotion Tools Includes many of the same tools used in trade and consumer promotions Two additional tools: Conventions & trade shows Sales contests