Chapter 20 Personal Selling And Sales Promotion0 Objectives • • • • • 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 Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 3 Elements of the Personal Selling Process • • • • • • • Prospecting Preapproach Approach Making the presentation Overcoming objections Closing the sale Following up Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 4 General Steps in the Personal Selling Process Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 5 Prospect Must Be: • Able • Willing • Authorized Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 6 Many sales teams use technology like WebEx to enhance presentations Reprinted with permission of WebEx Communications, Inc. Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 7 Advantages/Disadvantages Of Personal Selling • Freedom to adjust message to customer • Most precise promotion method • Most expensive promotion method Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 8 Types Of Salespeople • Order Getter – Current-Customer – New-Business • Order Taker – Inside – Field • Support Personnel – Missionary – Trade – Technical Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 9 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 Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 10 Managing The Sales Force • • • • • Establish Objectives Determine Size Recruit/Select Train Compensate • Motivate • Manage Territories – Create – Route/Schedule • Control/Evaluate – Salary – Commission – Combination Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 11 Recruiting Steps Prepare Job Description Develop Requirements Analyze Successful Salespeople Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 12 Compensating Salespeople • Straight salary compensation plan – paid a specified amount despite effort • Straight commission compensation plan – compensated solely by sales • Combination compensation plan Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 13 Average Salaries for Sales Representatives Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 14 Sales Force Compensation Methods Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 15 Managing Sales Territories • Creating sales territories – Measurable sales potential – Geographic size • Routing and scheduling salespeople – Geographic size/shape – Number of customers Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 16 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 Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 17 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 Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 18 Consumer Sales Promotion Methods Sales promotion techniques that encourage consumers to patronize specific stores or try particular products Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 19 Coupons A written price reduction used to encourage consumers to buy a specific product Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 20 Effect Of Income On Coupon Usage Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 21 Effect Of Age On Coupon Usage Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 22 Coupon Advantages • Effective for brand awareness • Users – Reward present – Win back former – Encourage quantity purchase • Traceable to target market Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 23 Coupon Drawbacks • Fraud • Misredemption • Expensive for manufacturers • Losing value • Brand loyalty diminished • Not enough of item in stock Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 24 Types Of Coupons • Cents-Off • Money Refunds • Rebates • Frequent-User Incentives Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 25 Other Promotional Methods • Point-of-Purchase Materials • Demonstrations • Free Sample • Premiums • Consumer Contests • Consumer Games • Sweepstakes Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 26 Trade Sales Promotion Methods Intended to persuade wholesalers and retailers to carry a producer’s products and market them more aggressively Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 27 Methods • Trade Allowances – – – – • • • • Buying Buy-back Scan-back Merchandise Cooperative Advertising and Dealer Listing Free Merchandise and Gifts Premium (Push) Money Sales Contests Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 28