Personal Selling, Sales Management, and Sales Promotion Chapter Fifteen Personal Selling, Sales Management, and Sales Promotion 1

Objectives Describe roles of selling and relationship management Identify when to use personal selling Understand contributions of a salesperson Outline the steps involved in making a sale Understand ongoing nature of selling & marketing Describe major aspects of sales manager’s job Classify various forms of sales compensation Identify ethical issues facing sales personnel Overview sales promotion

Methods of Personal Selling Retail selling Field selling Telemarketing Inside selling

Characteristics of Personal Selling Flexibility Adapt to situations Engage in dialog Identify best prospects Builds Relationships Long term Assure buyers receive appropriate services Solves customer’s problems 6

Personal Selling Limitations Can not reach mass audience Expensive per contact Numerous calls needed to generate sale 7

Personal Selling Tasks Order taking Routine writing up orders checking invoices assuring prompt order processing Suggestive selling

Personal Selling Tasks Order getting Seeking out customers Analyze customer problems Match firm’s solutions w/ customer problem Arouse customer interest Sell

Personal Selling Tasks Missionary Detailer Goodwill “Closers” Cross-functional Account service team 11

The Creative Selling Process FOLLOWING UP CLOSING HANDLING OBJECTIONS MAKING THE PRESENTATION APPROACHING THE PROSPECT PREAPPROACH PLANNING LOCATING QUALIFIED PROSPECTS The Creative Selling Process 12

Creative Selling Process Locating Qualified Prospects Prospecting: Identifying likely new customers Leads Qualifying: Evaluating a prospect’s potential

Creative Selling Process Preapproach Planning Understand situation People Roles Needs

Creative Selling Process Approaching the Prospect Contact Rapport “Only one chance to make a first impression”

Creative Selling Process Sales Presentation Persuasive communication Attention Interest Desire “Tell the product’s story”

Creative Selling Process Handling Objections Questions Reservations Understand Concern Counterarguments Acknowledge concern Clues to process

Creative Selling Process Closing the Sale Closing signals Trial close Ask for the sale

Creative Selling Process Following Up Commitments met Shipment Performance Reinforce relationship Satisfied customers rebuy & recommend

Sales Management Planning Organizing Controlling Directing Setting objectives Organizing activities Organizing Controlling Recruit, select, train, develop, manage, & motivate Directing Motivate, evaluate, & control

Organizing Sales Activities Sales Territory: Geographic divisions Customer types Product lines

Geographic Division Vice-President Marketing Regional Sales Manager District Sales Manager Sales Rep California Pacific NW Southeast Northeast

Customer Type Vice-President Sales New Accounts Manager Existing Accounts New Account #1 #2 Existing Account #1 Account #2

Product Line Vice-President Sales Snack Foods Sales Manager Beverages Sales Rep Eastern Region West’n Region Sales rep

Directing the Sales Force Recruiting and selecting Training Compensating Motivating

Compensation Methods Straight salary or wage Salary plus commission Quota-bonus plan

Evaluation and Control Measurement against objectives Mutual standards Activity logs 30

Ethical Issues Honesty Accurate information Misrepresentation No bribes or gifts No conspiracy 31

Sales Promotion Objective: Bolster/complement other promotional mix elements during a specific time period Targeted toward: Sales force Wholesalers and retailers Consumers

Trade Promotions Objective: Motivate for special efforts Increase number of distributors

Major Forms of Trade Promotion Trade shows Contests Display equipment and P-O-P materials Cooperative advertising & promotions Allowances

Consumer Promotion Product sampling Coupons Rebates Contest & sweepstakes

Consumer Promotion Premiums Multiple purchase offers P-O-P material Product placements/tie-ins

Review Describe roles of selling and relationship management Identify when to use personal selling Understand contributions of a salesperson Outline the steps involved in making a sale Understand ongoing nature of selling & marketing Describe major aspects of sales manager’s job Classify various forms of sales compensation Identify ethical issues facing sales personnel Overview sales promotion