Copyright © 2012 Pearson Canada Inc Personal Selling And Sales Promotion Chapter 13

Copyright © 2012 Pearson Canada Inc Discuss the role of a company’s salespeople in creating value for customers and building customer relationships 2.Identify and explain the six major sales force management steps, and the role of sales force automation 3.Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing 4.Define sales promotion, and list the major consumer sales promotion tools 5.Distinguish between consumer and trade promotions Previewing the Concepts

Copyright © 2012 Pearson Canada Inc Personal Selling

Copyright © 2012 Pearson Canada Inc Personal Selling ORDER TAKER or ORDER GETTER

Copyright © 2012 Pearson Canada Inc The Role of the Sales Force Personal selling: –Interpersonal interactions between individual customers and salespeople which can occur: Face-to-face By telephone Via Through video or Web conferences

Copyright © 2012 Pearson Canada Inc Critical Link External –Represent company to the customer –Represent customer to company Internal –Sales & Marketing work together –Communication –Reward systems

Copyright © 2012 Pearson Canada Inc Managing the Sales Force Major steps in sales force management:

Copyright © 2012 Pearson Canada Inc Managing the Sales Force Types of sales force structure: –Territorial –Product –Customer –Complex

Copyright © 2012 Pearson Canada Inc Managing the Sales Force

Copyright © 2012 Pearson Canada Inc HRM Careful RECRUITing, SELECTtion and TRAINing of salespeople can enhance overall sales performance and minimize costly turnover Key talents of successful salespeople: –Intrinsically motivated –Disciplined work style –Ability to close a sale –Ability to build relationships with customers

Copyright © 2012 Pearson Canada Inc Training Seminars, sales meetings, and Web e- learning Training programs have several goals: –Customer knowledge –The selling process –Company, product, and market knowledge E-learning techniques are making sales training more efficient

Copyright © 2012 Pearson Canada Inc Compensation Compensating salespeople involves a mix of compensation elements: –Fixed amount: Salary –Variable amount: Commissions or bonuses –Expenses and fringe benefits

Copyright © 2012 Pearson Canada Inc Managing the Sales Force Supervision can encourage salespeople to “work smart” by: –Helping identify customers and set call norms –Specifying time to be spent prospecting via: Annual call plan Time-and-duty analysis –Helping them save time by simplifying administrative duties, improving sales planning, and using technology to reduce traveling

Copyright © 2012 Pearson Canada Inc Motivation

Copyright © 2012 Pearson Canada Inc Evaluation

Copyright © 2012 Pearson Canada Inc Automation

Copyright © 2012 Pearson Canada Inc The Personal Selling Process Steps in the selling process:

Copyright © 2012 Pearson Canada Inc Sales Promotion Sales promotion: –Short-term incentives to encourage the purchase or sale of a product or service –Can be targeted toward: Consumers (consumer promotions) Retailers and wholesalers (trade promotions) Business customers (business promotions) Members of the sales force (sales force promotions)

Copyright © 2012 Pearson Canada Inc Sales Promotion Reasons for rapid growth: –Product managers are facing more pressure to increase their current sales –Companies face more competition from less differentiated brands –Advertising efficiency has declined –Consumers have become more deal oriented This has resulted in promotion clutter

Copyright © 2012 Pearson Canada Inc Sales Promotion Objectives Short term sales Shelf space Slow sales period Frequency programs Brand engagement

Copyright © 2012 Pearson Canada Inc Sales Promotion Consumer Promotions Tools Samples Coupons Rebates Price packs Premiums Advertising specialties Point-of-purchase (POP) promotions Contests Sweepstakes Event marketing (event sponsorships)

Copyright © 2012 Pearson Canada Inc Sales Promotion Trade promotions: –81% versus 19% (retailers and wholesalers than to final consumers) –Several trade promotion tools exist: Discounts Allowances Free goods Push money Specialty advertising items

Copyright © 2012 Pearson Canada Inc Promotional Programs Developing the sales promotion program: –Size of the incentive –Conditions for participation –Distribution method –Length –Evaluate