Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Chapter 17 Personal Selling and Sales Promotion

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Objectives 1.Explain the conditions that determine the relative importance of personal selling in the promotional mix. 2.Contrast over-the-counter selling, field selling, telemarketing, and inside selling. 3.Describe each of the four major trends in personal selling. 4.Identify the three basic sales tasks. 5.Outline the steps in the sales process. 6.Describe the sales manager’s boundary-spanning role. 7.List and discuss the functions of sales-force management. 8.Discuss the role of ethics in personal selling and sales- force management.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Personal Selling Process of a seller’s person-to-person promotional presentation to a buyer. Is essentially interpersonal. Is basic to any enterprise. Is likely % of total sales.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Factors Affecting the Importance of Personal Selling in the Promotional Mix

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Alternative Sales Channels for Serving Customers Over-the-Counter Selling Customers in retail setting With typical, routine needs Field Selling Customers who need solutions to complex problems Telemarketing New customers and customers of competitors Inside Selling Customers who need answers to frequently asked questions Customers

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Telemarketing Are There Downsides? Who has not experienced it -- ringing of the phone just as dinner goes on the table. You answer, it's not a friend, it's not a family member, it's not even from work. It's someone calling to sell you something -- a telemarketer. What can you do if you wish to slow down the number of telemarketing calls?

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Cost of a Sales Call by Industry $133 $154 $158 $200 $262 Manufactures of Industrial Products Services Retailing Manufactures of Consumer Products Wholesaling SOURCE: sales data reported in “Cost of a A Call Survey,” Sales & Marketing Management, September 2000, p. 82.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Trends in Personal Selling Sell to teams of corporate representatives. Answer technical questions. Want representatives who understand technical jargon. Patience.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Four Personal Selling Approaches 1.Relationship selling, a technique for building a mutually beneficial relationship. 2.Consultative selling, involves meeting customer needs by listening to customers, understanding—and caring about—their problems, paying attention to details, and following through after the sale. 3.Team selling, in which the salesperson joins with specialists from other functional areas of the firm to complete the selling process. 4.Sales-force automation (SFA) - the application of new technologies to the sales process.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Three Basic Sales Tasks Classification System 1.Order processing. 2.Creative selling. 3.Missionary sales.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developing an Efficient Sales Force Technology and information is helping to develop the most modern, efficient sales force ever.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. The AIDA Concept and the Personal Selling Process ATTENTION INTEREST ACTION Step 1 Prospecting and Qualifying Step 2 Approach Step 3 Presentation Step 4 Demonstration Step 5 Handling Objections DESIRE Step 6 Closing Step 7 Follow-Up AIDA

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Effective Precall Planning Questions Who are the audience members and what jobs do they perform each day? What is their level of knowledge? What do they want to hear? What do they need to hear?

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Methods of Closing a Sale 1.The “if I can show you... ” technique. 2.The alternative-decision technique. 3.The SRO (standing-room only) technique. 4.Silence. 5.An extra-inducement.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. How Salespeople Spend Their Time Prospecting

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. How Sales Managers Spend Their Time Administrativ e Tasks

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Motivation 1.Let each salesperson know in detail what is expected. 2.Make the work valuable. 3.Make the work achievable. 4.Provide immediate and specific feedback. 5.Offer rewards that each salesperson values.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Methods for Measuring Sales Performance 1.Sales volume. 2.Profitability. 3.Investment return.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Creating an Ethical Sales Environment 1.Promoting ethical awareness during training programs, sales meetings, and sales calls. 2.Making sure that all employees know that the firm opposes unethical conduct. 3.Establishing control systems to monitor ethical conduct.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Ethics and Selling & Information FTC Tips How often do you share personal information about yourself with others. It's so routine that you may not even realize you're doing it. It could be that you wrote a check at the grocery store, charge something at you favorite retailer, rented a car, mailed in your tax return, or bought a gift online, or applied for a credit card. For each transaction you are required to share personal information: your bank and credit card account numbers; your income; your Social Security number (SSN); or your name, address and phone numbers. The FTC web site offers tips to help you manage your personal information.