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Personal Selling, Sales Management, and Sales Promotion
Chapter Fifteen Personal Selling, Sales Management, and Sales Promotion 1
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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
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Methods of Personal Selling
Retail selling Field selling Telemarketing Inside selling
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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
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Personal Selling Limitations
Can not reach mass audience Expensive per contact Numerous calls needed to generate sale 7
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Personal Selling Tasks
Order taking Routine writing up orders checking invoices assuring prompt order processing Suggestive selling
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Personal Selling Tasks
Order getting Seeking out customers Analyze customer problems Match firm’s solutions w/ customer problem Arouse customer interest Sell
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Personal Selling Tasks
Missionary Detailer Goodwill “Closers” Cross-functional Account service team 11
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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
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Creative Selling Process
Locating Qualified Prospects Prospecting: Identifying likely new customers Leads Qualifying: Evaluating a prospect’s potential
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Creative Selling Process
Preapproach Planning Understand situation People Roles Needs
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Creative Selling Process
Approaching the Prospect Contact Rapport “Only one chance to make a first impression”
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Creative Selling Process
Sales Presentation Persuasive communication Attention Interest Desire “Tell the product’s story”
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Creative Selling Process
Handling Objections Questions Reservations Understand Concern Counterarguments Acknowledge concern Clues to process
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Creative Selling Process
Closing the Sale Closing signals Trial close Ask for the sale
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Creative Selling Process
Following Up Commitments met Shipment Performance Reinforce relationship Satisfied customers rebuy & recommend
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Sales Management Planning Organizing Controlling Directing Setting
objectives Organizing activities Organizing Controlling Recruit, select, train, develop, manage, & motivate Directing Motivate, evaluate, & control
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Organizing Sales Activities
Sales Territory: Geographic divisions Customer types Product lines
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Geographic Division Vice-President Marketing Regional Sales Manager
District Sales Manager Sales Rep California Pacific NW Southeast Northeast
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Customer Type Vice-President Sales New Accounts Manager
Existing Accounts New Account #1 #2 Existing Account #1 Account #2
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Product Line Vice-President Sales Snack Foods Sales Manager Beverages
Sales Rep Eastern Region West’n Region Sales rep
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Directing the Sales Force
Recruiting and selecting Training Compensating Motivating
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Compensation Methods Straight salary or wage Salary plus commission
Quota-bonus plan
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Evaluation and Control
Measurement against objectives Mutual standards Activity logs 30
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Ethical Issues Honesty Accurate information Misrepresentation
No bribes or gifts No conspiracy 31
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Sales Promotion Objective: Bolster/complement other promotional mix elements during a specific time period Targeted toward: Sales force Wholesalers and retailers Consumers
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Trade Promotions Objective: Motivate for special efforts
Increase number of distributors
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Major Forms of Trade Promotion
Trade shows Contests Display equipment and P-O-P materials Cooperative advertising & promotions Allowances
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Consumer Promotion Product sampling Coupons Rebates
Contest & sweepstakes
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Consumer Promotion Premiums Multiple purchase offers P-O-P material
Product placements/tie-ins
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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
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