Chapter 20
Personal Selling
And Sales Promotion0
Objectives
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Understand purposes of personal selling
Describe steps in personal selling process
Identify types of sales force personnel
Recognize types of personal selling
Understand sales management decisions and
activities
• Explain sales promotion activities and how used
• Explore specific consumer/trade sales promotion
methods
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Elements of the
Personal Selling Process
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Prospecting
Preapproach
Approach
Making the presentation
Overcoming objections
Closing the sale
Following up
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General Steps in
the Personal Selling Process
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Prospect Must Be:
• Able
• Willing
• Authorized
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Many sales teams use technology
like WebEx to enhance presentations
Reprinted with permission of WebEx Communications, Inc.
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Advantages/Disadvantages
Of Personal Selling
• Freedom to adjust message to customer
• Most precise promotion method
• Most expensive promotion method
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Types Of Salespeople
• Order Getter
– Current-Customer
– New-Business
• Order Taker
– Inside
– Field
• Support Personnel
– Missionary
– Trade
– Technical
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Selected Types Of Selling
• Team – experts from all functional areas of
a firm, led by a salesperson, to conduct the
personal selling process
• Relationship – mutually beneficial long-term
associations with a customer through regular
communications
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Managing The Sales Force
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Establish Objectives
Determine Size
Recruit/Select
Train
Compensate
• Motivate
• Manage Territories
– Create
– Route/Schedule
• Control/Evaluate
– Salary
– Commission
– Combination
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Recruiting Steps
Prepare Job
Description
Develop
Requirements
Analyze
Successful
Salespeople
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Compensating Salespeople
• Straight salary compensation plan
– paid a specified amount despite effort
• Straight commission compensation plan
– compensated solely by sales
• Combination compensation plan
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Average Salaries
for Sales Representatives
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Sales Force
Compensation Methods
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Managing Sales Territories
• Creating sales territories
– Measurable sales potential
– Geographic size
• Routing and scheduling salespeople
– Geographic size/shape
– Number of customers
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Controlling and Evaluating
Sales Force Performance
• Information for managers
– Call reports
– Customer feedback
– Invoices
• Set sales objectives/performance indicators
– Calls per day and cost per call
– Average sales per customer and gross profit per
customer
– Actual sales vs. sales potential
– Number of new customer orders
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Nature of Sales Promotion
• Sales promotion – an activity and/or
material intended to induce resellers or
salespeople to sell a product or consumers
to buy it
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Consumer Sales
Promotion Methods
Sales promotion techniques that encourage
consumers to patronize specific stores or try
particular products
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Coupons
A written price reduction used to encourage
consumers to buy a specific product
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Effect Of Income
On Coupon Usage
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Effect Of Age
On Coupon Usage
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Coupon Advantages
• Effective for brand awareness
• Users
– Reward present
– Win back former
– Encourage quantity purchase
• Traceable to target market
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Coupon Drawbacks
• Fraud
• Misredemption
• Expensive for manufacturers
• Losing value
• Brand loyalty diminished
• Not enough of item in stock
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Types Of Coupons
• Cents-Off
• Money Refunds
• Rebates
• Frequent-User Incentives
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Other Promotional Methods
• Point-of-Purchase Materials
• Demonstrations
• Free Sample
• Premiums
• Consumer Contests
• Consumer Games
• Sweepstakes
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Trade Sales
Promotion Methods
Intended to persuade wholesalers and
retailers to carry a producer’s products
and market them more aggressively
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Methods
• Trade Allowances
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Buying
Buy-back
Scan-back
Merchandise
Cooperative Advertising and Dealer Listing
Free Merchandise and Gifts
Premium (Push) Money
Sales Contests
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