Chapter 12:
Selling, Sales Promotion, and
Public Relations
The Sales Function
 the sales function is responsible for selling products
and services to customers, through the communication
of information during customer interaction
 it is a relatively high-cost form of promotion, often a
firm’s largest single operating expense
 there is more to a personal selling job than selling;
often the job is to build a relationship; many sales
people are now referred to as customer-services reps
 personal selling is the most flexible promotional tool;
can be tailored to the specific customer
Sales is Most Effective When…
 the sales function is more likely to be dominant when:
 the market is concentrated geographically
 product value is not readily apparent
 the product has high unit value. is technically, or requires
much explanation
 the product must be tailored to a customer
 the sale involves a trade-in
 the product is at the introductory stage of its life cycle
 the firm has a small budget for advertising
Scope of the Sales Function
 there are many types of sales jobs
 retailing involves inside selling; these jobs may
involve proactive selling or reactive selling
 outside sales persons go to the customer; there is
usually some opportunity for creative selling and
addressing customer needs
 electronic selling through telemarketing is a
relatively new development which combines with
databases to better target customers
Figure 12-1
Scope of the Sales Function
The New Focus of Selling
 “selling” may be a misleading term; often there
is no selling involved – sales personnel are
providing service and building relationships
 because of their interpersonal contact with the
customer, sales people influence the image of
the firm
 they provide a valuable service role , and
ideally become the customer’s trusted partner
The Nature of Sales Jobs
 many sales reps are now professional sales persons
with complete responsibility for relations with their
customers
 there is often considerable opportunity for role
conflict and role ambiguity
 there is a wide variety of sales jobs from delivery
drivers to creative sales engineers
 the sales staff is the front line and represents the firm
to its customers
Changing Patterns in Sales
 the nature of the selling job is changing, reflecting
changing market situations
 many firms have organized sales teams
 others now offer their customers a coordinated
systems and solutions for their problems
 there is considerable emphasis today on the
development of relationships with customers
 technology has changed the way many firms sell,
relying on telemarketing and the Internet
Relationship Selling
 high levels of trust are important
 buyer must demonstrate trust in the
salesperson as well as the selling organization
 trusted salespeople can retain the buyer’s
commitment even in the face of policies that
may not be considered satisfactory
 sales people have a major role in the
management of customer relationships
The Sales Process
 many firms follow a predictable sales pattern
 prospecting involves the identification of prospects
from various sources
 qualifying the prospect determines the willingness
and capability to buy
 presenting the sales message (attract attention, hold
interest, stimulate desire, close the sale)
 there is often a need to serve customers after the
sale to ensure their satisfaction
Figure 12-2
The Personal Selling Process
Staffing/Operating a Sales Force
 staffing is a critical sales-force decision: must ensure
that staff have necessary qualifications
 the firm needs a system to generate applicants
 recruitment often involves extensive screening
 extensive sales force training is often needed
 the sales force must be supervised and managed
 their performance has to be evaluated; compensation
systems must be put in place
Figure 12-3
Staffing and Operating a Sales Force
Evaluating Sales Performance
 a system must exist to evaluate performance
 serves as the basis for training programs and
for determining appropriate rewards
 quantitative bases for performance review
include sales generated, number of orders,
closing rate, number of calls made
 qualitative bases include product knowledge,
preparedness for calls, success in establishing
relationships, appearance, and attitude
Sales Promotion
 sales promotions stimulate short-term sales through
non-advertising means; coupons, contests, samples,
displays, premiums, trade shows
 may be directed at end consumers (consumer
promotions) or at intermediaries (trade promotions)
or a firm’s sales force
 sales promotions are short-term in orientation and
tactical in achieving certain objectives
 it may be easier to evaluate the effectiveness of
sales promotions than it is for advertising
Public Relations
 public relations is intended to develop and
maintain a positive public image for a firm
 objective is to maintain good relations with a
number of “publics”; this may be achieved by
generating positive publicity
 publicity is usually considered to be a “news
item” that appears about a specific company
 positive publicity is achieved through press
releases, press conferences, and events