1. Chapter 12: Selling, Sales Promotion, and Public Relations

2. The Sales Function
the sales function is responsible for selling products and services to customers, through the communication of information during customer interaction
it is a relatively high-cost form of promotion, often a firm’s largest single operating expense
there is more to a personal selling job than selling; often the job is to build a relationship; many sales people are now referred to as customer-services reps
personal selling is the most flexible promotional tool; can be tailored to the specific customer

3. Sales is Most Effective When…
the sales function is more likely to be dominant when:
the market is concentrated geographically
product value is not readily apparent
the product has high unit value. is technically, or requires much explanation
the product must be tailored to a customer
the sale involves a trade-in
the product is at the introductory stage of its life cycle
the firm has a small budget for advertising

4. Scope of the Sales Function
there are many types of sales jobs
retailing involves inside selling; these jobs may involve proactive selling or reactive selling
outside sales persons go to the customer; there is usually some opportunity for creative selling and addressing customer needs
electronic selling through telemarketing is a relatively new development which combines with databases to better target customers

5. Figure 12-1 Scope of the Sales Function

6. The New Focus of Selling
“selling” may be a misleading term; often there is no selling involved – sales personnel are providing service and building relationships
because of their interpersonal contact with the customer, sales people influence the image of the firm
they provide a valuable service role , and ideally become the customer’s trusted partner

7. The Nature of Sales Jobs
many sales reps are now professional sales persons with complete responsibility for relations with their customers
there is often considerable opportunity for role conflict and role ambiguity
there is a wide variety of sales jobs from delivery drivers to creative sales engineers
the sales staff is the front line and represents the firm to its customers

8. Changing Patterns in Sales
the nature of the selling job is changing, reflecting changing market situations
many firms have organized sales teams
others now offer their customers a coordinated systems and solutions for their problems
there is considerable emphasis today on the development of relationships with customers
technology has changed the way many firms sell, relying on telemarketing and the Internet

9. Relationship Selling high levels of trust are important
buyer must demonstrate trust in the salesperson as well as the selling organization
trusted salespeople can retain the buyer’s commitment even in the face of policies that may not be considered satisfactory
sales people have a major role in the management of customer relationships

10. The Sales Process many firms follow a predictable sales pattern
prospecting involves the identification of prospects from various sources
qualifying the prospect determines the willingness and capability to buy
presenting the sales message (attract attention, hold interest, stimulate desire, close the sale)
there is often a need to serve customers after the sale to ensure their satisfaction

11. Figure 12-2 The Personal Selling Process

12. Staffing/Operating a Sales Force
staffing is a critical sales-force decision: must ensure that staff have necessary qualifications
the firm needs a system to generate applicants
recruitment often involves extensive screening
extensive sales force training is often needed
the sales force must be supervised and managed
their performance has to be evaluated; compensation systems must be put in place

13. Figure 12-3 Staffing and Operating a Sales Force

14. Evaluating Sales Performance
a system must exist to evaluate performance
serves as the basis for training programs and for determining appropriate rewards
quantitative bases for performance review include sales generated, number of orders, closing rate, number of calls made
qualitative bases include product knowledge, preparedness for calls, success in establishing relationships, appearance, and attitude

15. Sales Promotion
sales promotions stimulate short-term sales through non-advertising means; coupons, contests, samples, displays, premiums, trade shows
may be directed at end consumers (consumer promotions) or at intermediaries (trade promotions) or a firm’s sales force
sales promotions are short-term in orientation and tactical in achieving certain objectives
it may be easier to evaluate the effectiveness of sales promotions than it is for advertising

16. Public Relations
public relations is intended to develop and maintain a positive public image for a firm
objective is to maintain good relations with a number of “publics”; this may be achieved by generating positive publicity
publicity is usually considered to be a “news item” that appears about a specific company
positive publicity is achieved through press releases, press conferences, and events