1. Personal Selling and Sales Promotion
Chapter 13

2. Rest Stop: Previewing the Concepts
Discuss the role of a company’s salespeople in creating value for customers and building customer relationships
Identify and explain the six major sales force management steps
Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing

3. Rest Stop: Previewing the Concepts
Explain how sales promotion campaigns are developed and implemented

4. First Stop: P&G
Its sales force has long been an American icon for selling at its very best
It understands that if its customers don’t do well, neither will the company
Its business development involves partnering with customers to jointly identify strategies that create shopper value and satisfaction and drive profitable sales at the store level

5. Personal presentations by the firm’s sales force for the purpose of making sales and building customer relationships
Personal selling

6. Salesperson
Individual representing a company to customers by performing one or more of the following activities:
Prospecting
Communicating
Selling
Servicing
Information gathering
Relationship building

7. The Role of the Sales Force
Serve as a critical link between a company and its customers
Coordinate marketing and sales
Salespeople link the company with its customers. To many customers, the salesperson is the company.

8. Sales force management
Analyzing, planning, implementing, and controlling sales force activities
Sales force management

9. Figure 13.1 – Major Steps in Sales Force Management
Note to Instructor: Sales force management includes designing sales force strategy and structure, as well as recruiting, selecting, training, compensating, supervising, and evaluating the firm’s salespeople.

10. Types of Sales Force Structure
Territorial: Assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company’s full line
Product: Salespeople specialize in selling only a portion of the company’s products or lines
Customer (or market): Salespeople specialize in selling only to certain customers or industries
Note to Instructor: When a company sells a wide variety of products to many types of customers over a broad geographic area, it often employs a complex sales force structure, which combines several types of organization.

11. Sales Force Structure
Note to Instructor: No single structure is best for all companies and situations. Each company should select a sales force structure that best serves the needs of its customers and fits its overall marketing strategy.
Whirlpool specializes its sales force by customer and by territory for each key customer group

12. Sales Force Size May range from only a few to thousands
Many companies use some form of workload approach to set sales force size
Company first groups accounts into different classes according to size, account status, or other factors
Then determines the number of salespeople needed to call on each class of accounts

13. Other Sales Force Strategy and Structure Issues
Outside sales force (or field sales force): Salespeople who travel to call on customers in the field
Inside sales force: Salespeople who conduct business from their offices via telephone, the Internet, or visits from prospective buyers
Note to Instructor: Some inside salespeople provide support for the outside sales force, freeing them to spend more time selling to major accounts and finding new prospects. For example, technical sales support people provide technical information and answers to customers’ questions. Sales assistants provide administrative backup for outside salespeople. Telemarketers and Internet sellers use the phone and Internet to find new leads and qualify their prospects or sell and service accounts directly.

14. Other Sales Force Strategy and Structure Issues
For many types of selling situations, phone or Web selling can be as effective as a personal sales call. At Climax Portable Machine Tools, phone reps build surprisingly strong and personal customer relationships.

15. Using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts
Team selling
Note to Instructor: As products become more complex, and as customers grow larger and more demanding, a single salesperson simply can’t handle all of a large customer’s needs. This is when, most companies start using team selling.

16. Recruiting and Selecting Salespeople
Note to Instructor: Research conducted by Gallup Consulting, a division of the well-known Gallup polling organization, suggests that the best salespeople possess four key talents: intrinsic motivation, a disciplined work style, the ability to close a sale, and, perhaps most important, the ability to build relationships with customers.
The best salespeople possess intrinsic motivation, a disciplined work style, the ability to close a sale, and, perhaps most important, the ability to build relationships with customers

17. Training Salespeople Training programs teach salespeople:
About different types of customers and their needs, buying motives, and buying habits
How to sell effectively
Basics of the selling process
How to know and identify themselves with the company, its products, and the strategies of major competitors

18. Training Salespeople
Companies provide continuing sales training via seminars, sales meetings, and Internet e-learning throughout the salesperson’s career
E-Training can make sales training more efficient—and more fun. Bayer HealthCare Pharmaceuticals’ role-playing video game—Rep Race—helped improve sales rep effectiveness by 20 percent.

19. Compensating Salespeople
Compensation consists of four elements:
Fixed amount,
Variable amount
Expenses
Fringe benefits

20. Compensating Salespeople
Different combinations of fixed and variable compensation give rise to four basic types of compensation plans:
Straight salary
Straight commission
Salary plus bonus
Salary plus commission

21. Supervising Salespeople
Goal
Help salespeople work smart by doing the right things in the right way
Sales force management tools:
Call plan – Shows which customers and prospects to call on and which activities to carry out
Time-and-duty analysis

22. Sales Force Automation System
Computerized, digitized sales force operations that let salespeople work more effectively anytime, anywhere
Technology has reshaped the ways in which salespeople carry out their duties and engage customers

23. Marketing At Work
Online selling tools build customer awareness and consideration, purchase interest, and salespeople,
Extend their reach and effectiveness of salespeople

24. Selling on the Internet
Benefits
Conserves salespeople’s valuable time, saves travel dollars, and gives them a new vehicle for selling and servicing accounts
Gives customers more control over the sales process
Drawbacks
Expensive
Intimidates low-tech salespeople or clients

25. Motivating Salespeople
Goal
Encourage salespeople to work hard and energetically toward sales force goals
Management boost sales force morale by:
Organizational climate
Sales quotas
Positive incentives
Sales meetings
Sales contests

26. Organizational climate
Describes the feeling that salespeople have about opportunities, value, and rewards for a good performance
Organizational climate
Standard that states the amount a salesperson should sell and how sales should be divided among the company’s products
Sales quotas
Provides social occasions, breaks from the routine, chances to meet and talk with company brass, and opportunities to air feelings and identify with a larger group
Sales meetings
Note to Instructor: Companies use various positive incentives to increase the sales force effort. Companies sponsor sales contests to spur the sales force to make a selling effort above and beyond what is normally expected. Other incentives include honors, merchandise and cash awards, trips, and profit-sharing plans.

27. Evaluating Salespeople and Sales Force Performance
Management gets information about its salespeople from:
Sales reports
Call reports
Expense reports
Monitoring the sales and profit performance data in the salesperson’s territory
Personal observation, customer surveys, and talks with other salespeople

28. Evaluating Salespeople and Sales Force Performance
Formal evaluation
Forces management to develop and communicate clear standards for judging performance
Provides salespeople with constructive feedback and motivates them to perform well
Company should measure its return on sales investment

29. Steps in the Selling Process
Prospecting and qualifying
Preapproach
Approach
Presentation and demonstration
Handling objections
Closing
Follow-up

30. Figure 13.3 – Steps in the Selling Process
Note to Instructor: The selling process consists of seven steps: prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow-up.

31. Steps in the Selling Process
Prospecting and qualifying
Prospecting: Identifying qualified potential customers
Qualifying – Identifying good ones and screening out poor ones
Preapproach: Learning as much as possible about a prospective customer before making a sales call

32. Steps in the Selling Process
Approach: Meeting the customer for the first time
Presentation and demonstration:
Presentation: Telling the value story to the buyer, showing how the company’s offer solves the customer’s problems
Handling objections: Seeking out, clarifying, and overcoming any customer objections to buying

33. Steps in the Selling Process
Closing: Asking the customer for an order
Follow-up: Following up after the sale to ensure customer satisfaction and repeat business
Note to Instructor: Before salespeople can present customer solutions, they must develop solutions to present. The solutions approach calls for good listening and problem-solving skills. The qualities that buyers dislike most in salespeople include being pushy, late, deceitful, unprepared, disorganized, or overly talkative. The qualities they value most include good listening, empathy, honesty, dependability, thoroughness, and follow-through. Great salespeople know how to sell, but more importantly they know how to listen and build strong customer relationships.
This classic ad from Boise makes the point that good selling starts with listening. “Our account representatives have the unique ability to listen to your needs.”

34. Personal Selling and Managing Customer Relationships
Most companies want their salespeople to practice value selling
Value selling requires:
Listening to customers
Understanding their needs
Carefully coordinating the whole company’s efforts to create lasting relationships based on customer value

35. Short-term incentives to encourage the purchase or sales of a product or a service
Sales promotion

36. Targets of Sales Promotion
Final buyers (consumer promotions)
Retailers and wholesalers (trade promotions)
Business customers (business promotions)
Members of the sales force (sales force promotions)
Magazines are loaded with offers like this one that promote a strong and immediate response

37. Factors Contributing to the Growth of Sales Promotion
Product managers view promotion as an effective short-run sales tool
Competitors use sales promotion to differentiate their offers
Advertising efficiency has declined
Sales promotions help attract today’s more thrift-oriented consumers
Note to Instructor: The growing use of sales promotion has resulted in promotion clutter, which is similar to advertising clutter.

38. Sales Promotion Objectives
Sales promotions:
Are used together with other promotion mix tools
Help reinforce product’s position and build long-term customer relationships
Note to Instructor: Marketers should avoid quick fix, price-only promotions in favour of promotions that are designed to build brand equity. Examples include the various frequency marketing programs and loyalty cards that have mushroomed in popularity in recent years.
Customer loyalty programs: Kroger keeps its Plus Card holders coming back by linking food purchases to discounts on gasoline prices

39. Sales promotion tools used to boost short-term customer buying and involvement or to enhance long-term customer relationships
Consumer promotion

40. Consumer Promotion Tools
Samples – Offers of a trial amount of a product
Coupons – Certificates that save buyers money when they purchase specified products
Cash refunds (or rebates) – Price reduction occurs after purchase to the manufacturer, which then refunds part of the purchase price

41. Marketing at Work Mobile marketing can be very effective
Coupons by phone offer an alluring opportunity
As mobile phones become appendages that many people can’t live without, companies from Target and Sears to Chick-fil-A and Enterprise Rent-A-Car are testing the mobile couponing waters

42. Consumer Promotion Tools
Price packs (or cents-off deals) – Offer consumers savings off the regular price of a product
Premiums – Goods offered either free or at low cost as an incentive to buy a product
Advertising specialties (or promotional products) – Useful articles imprinted with an advertiser’s name, logo, or message

43. Consumer Promotion Tools
Point-of-purchase (POP) promotions – Displays and demonstrations that take place at the point of sale
Contests, sweepstakes, and games – Give consumers the chance to win something
Event marketing: Creating a brand-marketing event or serving as a sole or participating sponsor of events created by others

44. Companies use sweepstakes and contests to create brand attention and boost consumer involvement. Enter this year’s “Dads Making a Difference Contest” and you could win your dad up to $30,000 in support of a community project

45. Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers
Trade promotion

46. Trade Promotion Tools Contests Premiums Displays
Discounts/Price-off/Off-invoice/Off-list
Allowances
Free goods
Push money
Specialty advertising items

47. Sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople
Business promotion

48. Business Promotion Tools
Include many of the same tools used for consumer or trade promotions
Conventions and trade shows – Help vendors find new sales leads, contact customers, introduce new products, etc.
Sales contests – Contest for salespeople or dealers to motivate them to increase their sales performance over a given period

49. Developing the Sales Promotion Program
Marketers must:
Determine the size of the incentive
Set conditions for participation
Determine how to promote and distribute the promotion program itself
Set the length of promotion
Evaluate the promotion

50. Rest Stop: Reviewing the Concepts
Discuss the role of a company’s salespeople in creating value for customers and building customer relationships
Identify and explain the six major sales force management steps
Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing

51. Rest Stop: Reviewing the Concepts
Explain how sales promotion campaigns are developed and implemented

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Copyright © 2013 Pearson Education, Inc.
Publishing as Prentice Hall