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SixteenPersonal
SellingandSales
PromotionPersonal
Selling
andSales
PromotionCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
2Topic
OutlineThe
Nature
of
Personal
SellingThe
Role
of
the
Sales
ForceManaging
the
Sales
ForceThe
Personal
Selling
ProcessSales
PromotionPersonal
SellingCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
3The
Roleof
the
Sales
ForcePersonal
selling
is
the
interpersonal
parof
the
promotion
mix
and
can
include:Face-to-face
communicationTelephone
communicationVideo
or
Web
conferencingPersonal
SellingCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
4The
Nature
of
Personal
SellingSalespeople
are
an
effective
link
betweenthe
company
and
its
customers
to
producecustomer
value
and
company
profit
by:Representing
the
company
to
customersRepresenting
customers
to
the
companyWorking
closely
with
marketingManaging
the
Sales
ForceCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
5Sales
force
management
is
theanalysis,
planning,
implementation,
andcontrol
of
sales
force
activitiesManaging
the
Sales
ForceDesigning
Sales
Force
StructureCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
6Managing
the
Sales
ForceCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
7Sales
Force
StructureTerritorial
sales
force
structure
refers
to
astructure
where
each
salesperson
is
assignedan
exclusive
geographic
area
and
sells
thecompany’s
full
line
of
products
and
servicesto
all
customers
in
that
territoryDefines
salesperson’s
jobFixes
accountabilityLowers
sales
expenses
Improves
relationship
building
and
sellingeffectivenessManaging
the
Sales
ForceCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
8Sales
Force
StructureProduct
sales
force
structure
refers
to
astructure
where
each
salesperson
sellsalong
product
linesImproves
product
knowledgeCan
lead
to
territorial
conflictsManaging
the
Sales
ForceCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
9Sales
Force
StructureCustomer
sales
force
structure
refersto
a
structure
where
each
salespersonsells
along
customer
or
industry
linesImproves
customer
relationshipsManaging
the
Sales
ForceCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
10Sales
Force
StructureComplex
sales
force
structure
refers
toa
structure
where
a
wide
variety
ofproducts
is
sold
to
many
types
ofcustomers
over
a
broad
geographicarea
and
combines
several
types
ofsales
force
structuresManaging
the
Sales
ForceCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
11Sales
Force
SizeSalespeople
are
one
of
the
company’smost
productive
and
expensive
assets.
Increases
in
sales
force
size
canincrease
salesandcosts
Workload
approach
to
sales
forcessize
refers
to
grouping
accounts
intodifferent
classes
to
determine
thenumber
of
salespeople
neededManaging
the
Sales
ForceCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
12Other
Sales
Force
Strategy
and
StructureIssuesOutside
salespeople
call
on
customers
inthe
fieldInside
salespeople
conduct
business
fromtheir
offices
and
often
provide
support
forthe
outside
salespeopleTechnical
sales
support
peopleSales
assistantsTeam
selling
is
used
to
service
large,complex
accountsManaging
the
Sales
ForceCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
13Recruiting
and
Selecting
SalespeopleIssues
in
Recruiting
and
Selecting
Careful
selection
and
training
increasessales
performancePoor
selectionIncreases
recruiting
and
training
costsLost
salesDisrupts
customer
relationshipsManaging
the
Sales
ForceSalesperson
compensation
based
on:Copyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
14Managing
the
Sales
ForceCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
15Supervising
and
MotivatingSalespeople
The
goal
of
supervision
is
to
helpsalespeople
work
smart
by
doing
theright
things
in
the
right
ways
The
goal
of
motivation
is
to
encouragesalespeople
to
work
hard
andenergetically
toward
sales
force
goalsManaging
the
Sales
ForceSelling
and
the
InternetMajor
tool
to
support
salespeopleCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
16Managing
the
Sales
ForceCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
17Supervising
and
MotivatingSalespeople
Sales
morale
and
performance
can
beincreased
through:Organizational
climateSales
quotasPositive
incentivesManaging
the
Sales
ForceEvaluating
Salespeople
and
Sales-ForcePerformanceCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
18The
Personal
Selling
ProcessCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
19 The
goal
of
the
personal
selling
processis
to
get
new
customers
and
obtain
orders
from
themThe
Personal
Selling
ProcessCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
20Steps
in
the
Personal
Selling
ProcessProspecting
identifies
qualified
potentiacustomers
through
referrals
from:CustomersSuppliersDealersInternetThe
Personal
Selling
ProcessCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
21Steps
in
the
Personal
Selling
ProcessQualifying
is
identifying
good
customersand
screening
out
poor
ones
by
lookingat:Financial
abilityVolume
of
businessNeedsLocationGrowth
potentialThe
Personal
Selling
ProcessSteps
in
the
Personal
Selling
Process
Pre-approach
is
the
process
of
learningas
much
as
possible
about
a
prospect,including
needs,
who
is
involved
in
thebuying,
and
the
characteristics
and
stylesof
the
buyersCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
22The
Personal
Selling
ProcessCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
23Steps
in
the
Personal
Selling
ProcessApproach
is
the
process
where
thesalesperson
meets
and
greets
thebuyer
and
gets
the
relationship
off
to
agood
start
and
involves
thesalesperson’s:AppearanceOpening
linesFollow-up
remarksThe
Personal
Selling
ProcessCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
24Steps
in
the
Personal
Selling
Process
Opening
lines
should
be
positive,
buildgoodwill,
and
be
followed
by
keyquestions
to
learn
about
thecustomer’s
needs
or
showing
adisplay
or
sample
to
attract
thebuyer’s
attention
and
curiosity
The
most
important
attribute
is
for
thesalesperson
to:
listenThe
Personal
Selling
ProcessCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
25Steps
in
the
Personal
Selling
ProcessPresentation
is
when
the
salesperson
tellsthe
product
story
to
the
buyer,
presentingcustomer
benefits
and
showing
how
theproduct
solves
the
customer’s
problems
Need-satisfaction
approach:
Buyers
wantsolutions
and
salespeople
should
listenand
respond
with
the
right
products
andservices
to
solve
customer
problemsThe
Personal
Selling
ProcessSteps
in
the
Personal
Selling
ProcessBad
Traits
Good
traitsCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
26The
Personal
Selling
ProcessCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
27Steps
in
the
Personal
Selling
ProcessHandling
objections
is
the
processwhere
salespeople
resolve
problemsthat
are
logical,
psychological,
orunspokenThe
Personal
Selling
ProcessCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
28Steps
in
the
Personal
Selling
ProcessClosing
is
the
process
wheresalespeople
should
recognize
signalsfrom
the
buyer—including
physicalactions,
comments,
and
questions—toclose
the
saleThe
Personal
Selling
ProcessCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
29Steps
in
the
Personal
Selling
ProcessFollow-up
is
the
last
step
in
which
thesalesperson
follows
up
after
the
sale
toensure
customer
satisfaction
and
repeatbusinessThe
Personal
Selling
ProcessCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
30Personal
Selling
andManaging
Customer
RelationshipsPersonal
selling
is
transaction-orientedto
close
a
specific
sale
with
a
specificcustomer
The
long-term
goal
is
to
develop
amutually
profitable
relationshipSales
PromotionCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
31
Sales
promotion
refers
to
the
short-termincentives
to
encourage
purchases
orsales
of
a
product
or
serviceTypes
of
promotions
include:Consumer
promotionsTrade
promotionsSales
force
promotionsSales
PromotionCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
32Factors
in
the
Growth
of
SalesPromotions
Productmanagers
are
under
pressure
toincrease
current
salesCompanies
face
more
competitionCompeting
brands
offer
less
differentiation
Advertising
efficiency
has
declined
due
torising
costs,
clutter,
and
legal
constraints
Consumers
have
become
more
deal-orientedSales
PromotionCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
33Sales
Promotion
Objectives
Setting
sales
promotion
objectivesincludes
using:Consumer
promotionsTrade
promotionsSales
force
promotionsSales
PromotionMajor
Sales
Promotion
ToolsCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
34Sales
PromotionCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
35Major
Sales
Promotion
ToolsConsumer
Promotion
ToolsSamples
offer
a
trial
amount
of
a
productCoupons
are
certificates
that
give
buyers
asaving
when
they
purchase
specifiedproductsCash
refunds
are
similar
to
coupons
exceptthat
the
price
reduction
occurs
after
thepurchasePrice
packs
offer
consumers
savings
off
theregular
price
of
a
productSales
PromotionCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
36Major
Sales
Promotion
ToolsConsumer
Promotion
ToolsPremiums
are
goods
offered
either
for
freeor
at
low
priceAdvertising
specialties
are
useful
articlesimprinted
with
the
advertiser’s
name,logo,
or
message
that
are
given
as
gifts
toconsumersPoint-of-purchase
promotions
includedisplays
and
demonstrations
that
takeplace
at
the
point
of
salesSales
PromotionCopyright
?
2010
Pearson
Education,
Inc.Publishing
as
Prentice
HallChapter
16
-
slide
37Major
Sales
Promotion
ToolsConsumer
Promotion
Tools
Contests,
sweepstakes,
and
games
giveconsumers
thechanceto
win
something—such
ascash,
trips,
or
goods—by
luck
or
through
extraeffortContests
require
an
entry
by
a
consumer
Sweepstakes
requireconsumers
to
submit
theirnames
for
a
drawing
Games
present
consumers
with
something
thatmay
or
may
not
help
them
win
a
prizeEvent
Ma
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