Copyright © 2012 Pearson Canada Inc.13 - 1 Personal Selling And Sales Promotion Chapter 13.

Copyright © 2012 Pearson Canada Inc.13 - 1

Personal Selling

And Sales Promotion

Chapter 13


1. 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


Personal Selling


Personal Selling

ORDER TAKER or ORDER GETTER


The Role of the Sales Force

• Personal selling:– Interpersonal interactions between individual

customers and salespeople which can occur:• Face-to-face• By telephone• Via email• Through video or Web conferences


Critical Link

• External– Represent company to the customer– Represent customer to company

• Internal– Sales & Marketing work together– Communication– Reward systems


Managing the Sales Force

• Major steps in sales force management:



• Types of sales force structure:– Territorial

– Product

– Customer

– Complex




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


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


Compensation

• Compensating salespeople involves a mix of compensation elements:– Fixed amount: Salary– Variable amount: Commissions or bonuses– Expenses and fringe benefits



• 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


Motivation


Evaluation


Automation


The Personal Selling Process

• Steps in the selling process:


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)


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


Sales Promotion Objectives

Short term sales

Shelf space

Slow sales period

Frequency programs

Brand engagement


Sales Promotion

Consumer Promotions Tools

• Samples• Coupons• Rebates• Price packs• Premiums• Advertising

specialties

• Point-of-purchase (POP) promotions

• Contests• Sweepstakes• Event marketing

(event sponsorships)


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


Promotional Programs

• Developing the sales promotion program:– Size of the incentive– Conditions for participation– Distribution method– Length– Evaluate

Copyright © 2012 Pearson Canada Inc.13 - 1 Personal Selling And Sales Promotion Chapter 13.

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