17

CHAPTER

Personal Selling and

Sales Promotion
Chapter Objectives
1 Describe the role of todays 4 Identify and briefly
7 Identify the role of ethical
salesperson.
describe the three basic
behavior in personal
sales tasks.
selling.
2 Describe the four sales
5 Outline the seven steps in 8 Describe the role of sales
channels.
the sales process.
promotion in the
3 Describe the major trends
promotional mix, and
in personal selling.
6 Identify the seven basic
identify the different
functions of a sales
types of sales promotions.
manager.

CHAPTER 17 Personal Selling and Sales Promotion

Personal selling Interpersonal influence process involving a sellers

promotional presentation conducted on a person-to-person basis with the
buyer.
Sixteen million people in the U.S. are employed in sales.
Personal selling is the single largest marketing expense in many firms.

CHAPTER 17 Personal Selling and Sales Promotion

THE EVOLUTION OF PERSONAL SELLING

Salespeople are problem solvers who focus on meeting customers needs
before, during, and after the sale.
Must be able to do the following:
Focus on customers needs and problems, and offer solutions.
Follow through with phone calls and other communications.
Develop expertise about their industry and product.

Go the extra mile to fulfill customers needs beyond their

expectations.
Bureau of Labor Statistics predicts that jobs in sales will grow by 10
percent over the next decade.

CHAPTER 17 Personal Selling and Sales Promotion

THE FOUR SALES CHANNELS

Channels all include both business-to-business and
direct-to-customer selling.
Over-the-counter selling Personal selling conducted
in retail and some wholesale locations in which customers
come to the sellers place of business.
Field selling Sales presentations made at prospective
customers locations on a face-to-face basis.

Telemarketing Promotional presentation involving the use of the

telephone on an outbound basis by salespeople or on an inbound basis by
customers who initiate calls to obtain information and place orders.
Inside selling Selling by phone, mail, and electronic commerce.
Firms generally blend sales channels in their sales organization.

CHAPTER 17 Personal Selling and Sales Promotion

TRENDS IN PERSONAL SELLING

Companies rely on three major personal selling approaches
to meet customer needs.
Relationship selling Regular contacts between sales
representatives and customers over an extended period to
establish a sustained buyer-seller relationship.
Consultative selling Meeting customer needs by listening
to them, understanding their problems, paying attention to
details, and following through after the sale.
Team selling Selling situation in which several sales associates or other
members of the organization are recruited to help the lead sales
representative reach all those who influence the purchase decision.

CHAPTER 17 Personal Selling and Sales Promotion

SALES TASKS
Ensuring that buyers purchases are in his or her best interest aids the
development of long-term relationships.
Selling involves three basic tasks:
Order processing Selling, mostly at the wholesale and retail levels, that
involves identifying customer needs, pointing them out to customers, and
completing orders.
Creative selling Personal selling that involves situations in which a
considerable degree of analytical decision making on the buyers part results
in the need for skillful proposals of solutions for the customers needs.
Missionary selling Indirect type of selling in which specialized
salespeople promote the firms goodwill among indirect customers, often by
helping customers use products.

CHAPTER 17 Personal Selling and Sales Promotion

CREATIVE SELLING
Creative selling Personal selling that involves situations in
which a considerable degree of analytical decision making on
the buyers part results in the need for skillful proposals of
solutions for the customers needs.
Generally used to develop new business with either new
customers of new products for existing customers.

MISSIONARY SELLING
Missionary selling Indirect type of selling in which
specialized salespeople promote the firms goodwill among
indirect customers, often by helping customers use products.
Example: Pharmaceutical companies that use free samples,
educational seminars to court doctors.
May involve both field selling and telemarketing.

CHAPTER 17 Personal Selling and Sales Promotion

THE SALES PROCESS

Steps follow the AIDA concept.
Attention
Interest
Desire
Action

CHAPTER 17 Personal Selling and Sales Promotion

PROSPECTING AND QUALIFYING

Prospectingidentifying potential customers.
Qualifyingdetermining that the prospect really is a potential customer.

APPROACH
Initial contact with prospective customer.
Use precall planning research to identify how your products might
best meet customers needs.

PRESENTATION
Conveying marketing message to the customer.
Features-benefits framework focuses on the good or service in terms that
are meaningful to the buyer.

CHAPTER 17 Personal Selling and Sales Promotion

DEMONSTRATION
Buyer has a chance to try a product or see how it works.

HANDLING OBJECTIONS
Expressions of resistance, such as stalling or indecision, by the prospect are
an opportunity to reassure the buyer or offer suitable alternatives.

CLOSING
Point at which salesperson asks the prospect for an order.

Let buyer know you are ready to be of service in the future.

FOLLOW-UP
Successful sales people turn todays customers into tomorrows by
reinforcing the purchase decision.
Ensure that customer service needs are met.

CHAPTER 17 Personal Selling and Sales Promotion

MANAGING THE SALES EFFORT

Sales managers mix sales and management skills to manage the overall
direction and control of the personal selling effort.

RECRUITMENT AND SELECTION

Important because of company investment in the hiring process and the
potential damage to customer relationships and overall performance.

TRAINING
Primary methods are on-the-job training, individual instruction, how-to
classes, and external seminars; often ongoing for experienced salespeople.

ORGANIZATION
National accounts organizationassigning senior sales personnel or sales
teams to major accounts in each market.

CHAPTER 17 Personal Selling and Sales Promotion

SUPERVISION
Span of controlnumber of sales representatives who report to first-level
sales managers.

MOTIVATION
Tools include information sharing, recognition, bonuses, and benefits.
Expectancy theorymotivation depends on the expectations an individual
has of his or her ability to perform the job and on how performance relates
to attaining rewards that the individual values.

COMPENSATION
Commissioncompensation tied directly to the sales or profits the
salesperson achieves.

Salaryfixed payment made periodically to an employee.

Many firms combine the features of both commission and salary in their
compensation programs.

CHAPTER 17 Personal Selling and Sales Promotion

EVALUATION AND CONTROL

Managers must set standards and choose the best methods for measuring
sales performance.
Sales quotasspecified sales or profit targets that the firm expects
salespeople to achieve.
Other measures include customer satisfaction, profit contribution, share of
product-category sales, and customer retention.
Evaluations should motivate improved performance.

CHAPTER 17 Personal Selling and Sales Promotion

ETHICAL ISSUES IN SALES

Long-term success requires strong code of ethics.
Honesty and ethical behavior is encouraged when:
Employees understand what is expected of them.
Open communication is encouraged.
Managers lead by example.

CHAPTER 17 Personal Selling and Sales Promotion

SALES PROMOTION
Sales promotion Marketing activities other than personal selling,
advertising, and publicity that enhance consumer purchasing and dealer
effectiveness.

Goal is speeding the sales process and increasing sales volume.

Produce best results when combined with other other marketing activities,
such as advertising.
Cannot overcome poor brand images, product deficiencies, or poor training
for salespeople.

CONSUMER-ORIENTED SALES PROMOTIONS

Goals: Encourage repurchases by rewarding current users, boost sales of
complementary products, and increase impulse purchases.
Couponsmost widely used form of sales promotion.

CHAPTER 17 Personal Selling and Sales Promotion

Refunds or rebateshelp packaged-goods companies increase purchase

rates, promote multiple purchases, and reward product users.
Samples, bonus packs, and premiumsa try it, youll like it approach.
Contestsrequire entrants to complete a task such as solving a puzzle or
answering questions in a trivia quiz.
Sweepstakeschoose winners by chance; no product purchase is
necessary.
Specialty Advertisingsales promotion technique that places the
advertisers name, address, and advertising message on useful articles that
are then distributed to target consumers.

CHAPTER 17 Personal Selling and Sales Promotion

TRADE-ORIENTED PROMOTIONS
Sales promotion that appeals to marketing intermediaries rather than to
final consumers.
Accounts for half of typical firms promotion budget.

Trade allowancesspecial financial incentives offered to wholesalers and

retailers that purchase or promote specific products.
Point-of-purchase advertisingdisplay or other promotion located near the
site of the actual buying decision.

Trade showsvendors who serve the industries display and demonstrate

their products for members.
Dealer incentives, contests, and training programs.