Personal Selling and Sales Promotion

CHAPTER 18 Pricing Concepts
Principles of
Contemporary Marketing
Kurtz & Boone
Personal Selling and Sales
Promotion

CHAPTER 12 Personal Selling
and Sales Promotion
Personal Selling
o Interpersonal influence process
involving a sellers promotional
presentation conducted on a personto-person basis with the buyer.
Table 12.1 Factors Affecting the Importance of Personal Selling in the
Promotional Mix

and Sales Promotion
Role of Todays Salesperson

o Focus on customers situation and
needs and create solutions that meet
those needs.
o Follow through and stay in touch
before, during and after a sale.
o Know the industry and have a firm
grasp not only of their own firms
capabilities but also of their
competitors abilities.
o Work hard to exceed their customers
expectations.

and Sales Promotion
The Four Sales Channels
o Personal selling occurs through

several types of communication
channels:
- Over-the-Counter Selling
- Field selling
- Telemarketing
- Inside selling

and Sales Promotion
OVER-THE-COUNTER SELLING
o Personal selling conducted in retail
and some wholesome locations in
which costumer came to the sellers
place of business.
o Others respond to many kinds of
appeals:
- direct mail
- advertisement for sales
- special events
- new-product introduction

and Sales Promotion
FIELD SELLING
o Sales presentation made of
prospective customers location on a
face-to-face basis.
o Salesperson must first convince
costumers that they need the
particular brand the salesperson is
selling
o View as a market in itself and have
developed goods and service
designed to help salespeople do their
jobs

and Sales Promotion
NETWORK MARKETING
o Personal selling that relies on

list of family members and
friends of a salesperson, who
organize gathering of
potential costumer for an inhome presentation of
selected product.

and Sales Promotion
TELEMARKETING
o Promotional presentation
involving the use of the
telephone on an outbound
basis by salespeople or on an
inbound basis by costumer
who initiate calls to obtain
information and place orders.

and Sales Promotion
OUTBOUND TELEMARKETING
o Sales personnel place phone calls to
prospects and try to conclude the
sale over the phone.
o Predictive dialers- weed on busy
signals and answering machines,
nearly doubling the number of calls
made per hour.
o Autodialing- allows telemarketers
to dial numbers continually.
o Random-digit dialing allows
telemarketers to reach unlisted and

and Sales Promotion
INBOUND TELEMARKETING
o Prospects call center to

obtain information , make
reservations, and purchase
goods and service.

and Sales Promotion
INSIDE SELLING
o Selling by phone, mail, and
electronic commerce.
- They turn opportunities into actual
sales.
- Support technicians and purchases
with current solutions.
ROLES
- Taking orders to solving problems
- Providing costumer service and
selling
OVER-THE-COUNTER
SELLING
Costumer in retail setting
with typical, routine
needs.
FIELD SELLING
Costumers who need
solution to complex
problem.
TELEMARKETING COSTUMER
Outbound: Existing
INSIDE SELLING
costumers; people or
companies granted
Costumer who need
permission to call.
answers to frequently
Inbound: new and
asked questions
existing costumer.

and Sales Promotion
TRENDS IN PERSONAL SELLING
RELATIONSHIP SELLING
o It is the regular contacts
between sales representative
and customers over an extended
period to establish a sustained
buyer And seller Relationship.
Buyers prefer to do business with

salespeople who;

and Sales Promotion
Orchestrate Events and bring whatever resources are necessary to

satisfy the customer.
Provide counseling to the customer based on depth knowledge of the
product , the market, and the customers needs.
Solve problems proficiently to ensure satisfactory customer service over
extended time periods.
Demonstrate high ethical standards and communicate honestly at all
times.
Willingly advocate the customers cause within the selling organization.
Create Imaginative arrangements to meet buyers needs.
Arrive well prepared for sales calls

and Sales Promotion
CONSULTATIVE SELLING
o Meeting customer needs by

listening to them, understanding
their problems, paying attention
to details, and following through
after the scale.
o Cross-Selling Selling multiple,
often unrelated goods and
services to the same customer
based on knowledge of the
customers needs.

and Sales Promotion
TEAM SELLING
o It is a selling Situation in which
several sales associates or other
members of the organization are
employed to help the leads sales
representative reach all those who
influence the purchase decision.
o Virtual sales team Network of
strategic partners, Suppliers, and
others who recommend a firms
Goods or Services

and Sales Promotion
SALES TASK
ORDER PROCESSING
o It involve both field selling and
telemarketing is most often typified
by selling mostly at the wholesale
and retail levels.
1. Identify costumer needs
2. Point out the need to the costumer
3. Complete the order

and Sales Promotion
CREATIVE SELLING
o Personal selling in which

salespeople use well-planned
strategies to seek new
customers by proposing
innovative solutions to
customer.

and Sales Promotion
MISSIONARY SELLING
o Indirect selling method in

which salespeople promote
goodwill for the firm by
educating customers and
providing technical or
operational assistance.
o Sales incentives- programs
that reward salespeople for
superior performance.

and Sales Promotion

and Sales Promotion
PROSPECTING AND QUALIFYING
o Prospecting- the process of

identifying potential customers
may involve hours, days, or
weeks of effort, but it is a
necessary step.
o Qualifying-Determining a
prospects needs, income, and
purchase authority as a potential
customers.

and Sales Promotion
APPROACH
o Approach- salesperson's initial

contact with a prospective
customers.
o Precall planning- Use of
information collected during the
prospecting and qualifying
stages of the sales process and
during previous contacts with the
prospect to tailor the approach
and presentation to match the

and Sales Promotion
PRESENTATION
o Presentation- personal selling

function of describing a
product's major features and
relating them to a customer's
problems or needs.
o Cold calling situation- the
approach and presentation
often take place at the same
time.

and Sales Promotion
DEMONSTRATION

and Sales Promotion
HANDLING OBJECTIONS

and Sales Promotion
CLOSING

and Sales Promotion
FOLLOW-UP

and Sales Promotion
MANAGING THE SALES EFFORT

o Sales skills is important for first levelsales manager.
o 7 Managerial Functions of a Sales
Manager
-
recruitment and selection
-training
-organization
-supervision
-motivation
-compensation
-evaluation and control

and Sales Promotion
RECRUITMENT AND SELECTION

o Successful sales career offers
satisfaction:
Opportunity for advancement,
potential for high earning, personal
satisfaction, job security &
independence and variety.
o Careful selection is important

because
Company invests a social amount of
time and money in the selection
process.

and Sales Promotion
RECRUITMENT AND SELECTION

o Seven step process for selecting
personnel
Application screening
Initial interview
In-depth interview
Testing- assessment centers
(measure candidate skills, knowledge
and ability)
Reference checks
Physical examination

and Sales Promotion
TRAINING
o On-the-Job training
o Individual instruction
o In-house classes
o External seminars
o Simulation/enrolling at colleges/hiring
specialists
o Popular training techniques
Instructional videos/DVD lectures
Role-playing exercises
Interactive computer programs

and Sales Promotion
ORGANIZATION
o National Accounts Organizationpromotional effort in which a dedicated
sales team is assigned to a firms major
customers to provide sales and service
needs.

and Sales Promotion
SUPERVISION
o Span of control- number of

representatives who report to
first-level sales managers.
o Optimal span of control is
affected by factors like
activities being performed,
ability of the individual sale
manager, degree of
interdependence among

and Sales Promotion
MOTIVATION
o Expectancy theory- theory that

motivation depends on an
individuals expectations of his or
her ability to perform a job and
how that performance relates to
attaining a desired reward.
o Ways to motivate people
Psychological encouragement
Financial encouragement

and Sales Promotion
COMPENSATION
o Commission- incentive
compensation directly related to
the sales or profits achieved by a
salesperson.
o Salary- fixed compensation
payment made periodically to an
employee.

and Sales Promotion
EVALUATION AND CONTROL

o Sales quotas- specified sales or profit
that the firm expects salespeople to
achieve.
o Other measures such as customer
satisfaction, profit contribution, share
of product-category sales and
customer retention
o Another way to categorize a
salesperson strong points:
Task or technical ability

and Sales Promotion
ETHICAL ISSUES IN SALES

o Characteristics of companies that
encourage ethical behavior:
-Employees understand what is
expect of them.
-Open communication.
-Managers lead by example.

and Sales Promotion
HOW TO MAKE AN ETHICAL CHOICE

o Does my decision effect anyone
other than myself and the bottom
line?
o Is my success based on making the
sale or creating a loyal customer?
o Is my dealing with a customer in
their best interest and not exploiting
their trust?
o What price will I pay for this
decision?

and Sales Promotion
SALES PROMOTION
o Marketing activities other

than personal selling,
advertising, and publicity that
enhance consumer
purchasing and dealer
effectiveness.

and Sales Promotion
COUPON AND REFUNDS
o Coupon sales promotion

technique that offers a discount
on the purchase price of goods
or services.
o Refund cash given back to
consumer who send in proof of
purchase for one or more
products.

and Sales Promotion
SAMPLES, BONUS PACKS, AND PREMIUMS
o Sampling Free distribution of a

product in an attempt to obtain
future sales; process of selecting
survey respondents or research
participants.
o Bonus packs Specially packaged
items that gives the purchaser a
larger quantity at the regular price.
o Premiums Item given free or at a
reduced cost with purchases of other
products.

and Sales Promotion
CONTEST AND SWEEPSTAKES

o Contest require entrants to
complete a task such as solving
puzzle or answering question on
a quiz, for a chance to win a
prize.
o Sweepstakes Sales promotion
technique in which prize winners
are selected by a chance.

and Sales Promotion
SPECIALTY ADVERTISING
o Is a sales promotion
technique that places the
advertisers name, address,
and advertising message on
useful articles that are then
distributed to target
consumer.

and Sales Promotion
TRADE-ORIENTED PROMOTION
o Is a sales promotion that

appeals to intermediaries
rather than a consumers.

and Sales Promotion
TRADE AND ALLOWANCES
o Special financial incentives

offered to wholesalers and
retailers that purchase or
promote specific products.

and Sales Promotion
POINT-OF-PURCHASE ADVERTISING
o (POP) display or other

promotion placed near the
site of the actual buying
decision.

and Sales Promotion
DEALER INCENTIVES, CONTESTS AND

TRAINING PROGRAM
o Manufacturers run dealer incentive
programs and contests to reward
retailers and their salespeople who
increase sales and, more generally,
to promote specific product.
o Push money Cash reward paid to
retail salespeople for every unit of
product they sell.

and Sales Promotion

Personal Selling and Sales Promotion

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CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

Role of Todays Salesperson

CHAPTER 18 Pricing Concepts

The Four Sales Channels

o Personal selling occurs through

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

o Personal selling that relies on

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

o Prospects call center to

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

TRENDS IN PERSONAL SELLING

Buyers prefer to do business with

CHAPTER 18 Pricing Concepts

Orchestrate Events and bring whatever resources are necessary to

CHAPTER 18 Pricing Concepts

o Meeting customer needs by

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

o Personal selling in which

CHAPTER 18 Pricing Concepts

o Indirect selling method in

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

PROSPECTING AND QUALIFYING

o Prospecting- the process of

CHAPTER 18 Pricing Concepts

o Approach- salesperson's initial

CHAPTER 18 Pricing Concepts

o Presentation- personal selling

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

MANAGING THE SALES EFFORT

recruitment and selection

CHAPTER 18 Pricing Concepts

RECRUITMENT AND SELECTION

o Careful selection is important

CHAPTER 18 Pricing Concepts

RECRUITMENT AND SELECTION

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

o Span of control- number of

CHAPTER 18 Pricing Concepts

o Expectancy theory- theory that

CHAPTER 18 Pricing Concepts

CHAPTER 18 Pricing Concepts

EVALUATION AND CONTROL

CHAPTER 18 Pricing Concepts

ETHICAL ISSUES IN SALES

CHAPTER 18 Pricing Concepts

HOW TO MAKE AN ETHICAL CHOICE