Chapter 17
Personal Selling and Sales
Promotion
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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 salesforce management.
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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 10-15 % of total sales.
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Factors Affecting the Importance of
Personal Selling in the Promotional Mix
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Alternative Sales Channels for
Serving Customers
Over-the-Counter Selling
Customers in retail setting
With typical, routine needs
Telemarketing
Field Selling
Customers who need solutions
to complex problems
Customers
New customers and
customers of competitors
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Inside Selling
Customers who need answers
to frequently asked questions
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?
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Cost of a Sales Call by Industry
Manufactures of
Industrial
Products
$262
$200
Services
$158
Retailing
Manufactures of
Consumer
Products
$154
$133
Wholesaling
0
50
100
150
200
250
SOURCE: sales data reported in “Cost of a A Call Survey,” Sales & Marketing Management, September
2000, p. 82.
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300
Trends in Personal Selling
• Sell to teams of corporate representatives.
• Answer technical questions.
• Want representatives who understand
technical jargon.
• Patience.
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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.
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Three Basic Sales Tasks
Classification System
1. Order processing.
2. Creative selling.
3. Missionary sales.
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Developing an Efficient Sales Force
Technology and information is helping to
develop the most modern, efficient sales
force ever.
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The AIDA Concept and the Personal
Selling Process
AIDA
Step 7 Follow-Up
Step 6 Closing
Step 5 Handling Objections
ACTION
DESIRE
Step 4 Demonstration
INTEREST
Step 3 Presentation
Step 2 Approach
ATTENTION
Step 1 Prospecting and
Qualifying
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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?
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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.
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How Salespeople Spend Their Time
Prospecting
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How Sales Managers Spend Their
Time
Administrativ
e Tasks
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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.
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Methods for Measuring Sales
Performance
1. Sales volume.
2. Profitability.
3. Investment return.
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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.
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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.
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