Sales
Hettche, Fall 2014
(Kotler and Armstrong Chapter 16)
Lecture Overview
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Some techniques (and insight)
Sales (as a field)
Sales (as a process)
Sales Promotion
Some Classic Techniques
• “Foot in the Door”
• “The Reversal”
• “Smoke and Mirrors”
The Tipping Point (2000)
Malcom Gladwell Quotes
• “Tipping points are the levels at which the
momentum for change becomes
unstoppable.”
• "Ideas and products and messages and
behaviors spread like viruses do.“
(Epidemiology)
The Law of the Few
• “80/20 Principle, which is the idea that in any situation
roughly 80 percent of the 'work' will be done by 20 percent
of the participants.”
– Connectors are the people who "link us up with the world ...
people with a special gift for bringing the world together." They
are "a handful of people with a truly extraordinary knack [... for]
making friends and acquaintances".
– Mavens are "information specialists", or "people we rely upon to
connect us with new information." They accumulate knowledge,
especially about the marketplace, and know how to share it with
others. Mavens start "word-of-mouth epidemics“
– Salesmen are "persuaders", charismatic people with powerful
negotiation skills. They tend to have an indefinable trait that
goes beyond what they say, which makes others want to agree
with them.
The Stickiness Factor
• Stickiness is the specific content of a
message that renders its impact memorable.
The Power of Context
• "Epidemics are sensitive to the conditions and
circumstances of the times and places in
which they occur."
Designing Sales Force Structure
Territorial sales force structure
Product sales force structure
Customer sales force structure
Complex sales force structure
Compensation Models
Fixed
amounts
Variable
amounts
Expenses
Fringe
benefits
Supervising and Motivating
Salespeople
• The goal of supervision is to help salespeople
work smart by doing the right things in the
right ways
• The goal of motivation is to encourage
salespeople to work hard and energetically
toward sales force goals
Managing the Sales Force
The Personal Selling Process
Steps in the Personal Selling Process
Bad Traits
Good traits
Pushy
Late
Good
listeners
Empathetic
Deceitful
Disorganized
Honest
Dependable
Thorough
Follow-up
types
Unprepared
Sales Promotion
Sales promotion refers to the short-term
incentives to encourage purchases or sales of
a product or service:
– Consumer promotions
– Trade promotions
– Sales force promotions
Major Sales Promotion Tools
Samples
Coupons
Cash refunds
Price packs
Premiums
Advertising
specialties
Patronage
rewards
Point-ofpurchase
displays
Demonstrations
Contests
Sweepstakes
Games
Sales Promotion
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Size of the incentive
Conditions for participation
Promote and distribute the program
Length of the program
Evaluation of the program