Transcript PF_FM_4e_Ch17.ppt

Chapter 17:
Personal Selling and
Sales Promotion
Pride/Ferrell
Foundations of Marketing
Fourth Edition
Prepared by Milton Pressley
University of New Orleans
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Objectives
1. Define personal selling and understand its
purpose.
2. Describe the basic steps in the personal
selling process.
3. Identify the types of sales force personnel.
4. Understand sales management decisions and
activities.
5. Explain what sales promotion activities are
and how they are used.
6. Recognize specific consumer and trade sales
promotion methods.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Personal Selling
• Paid personal
communication that
attempts to inform
customers and persuade
them to purchase products
in an exchange situation
Nature of Personal Selling
State Farm provides
professional sales career
opportunities to serve local
communities.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Personal Selling in the Promotion
Mix
• Provides greatest freedom to adjust message
• Most precise focus on sales prospects
• Usually most expensive element in the
promotion mix
• Often the closest relationship with
customers
• Sales professionals are gaining respect and
trust as ethical codes of conduct are
enforced
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 17.1 General Steps in the
Personal Selling Process
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Prospecting for Customers
• Developing a list of potential
customers
- Sources of prospects:
Sales records
Trade shows
Commercial databases
Newspaper announcements
Public records
Telephone directories
Trade association directories
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Personal Selling
• Evaluating prospects
- Find and analyze information about each prospect’s specific need,
current use of brands, feelings about available brands and personal
characteristics
• Preapproaching and approaching the customer
- The manner in which a salesperson researches, then contacts a potential
customer
• Making the presentation
-Must attract and hold the prospect’s attention, stimulate interest and
spark a desire for the product
• Overcoming objections
- Anticipate and counter them before the prospect raises them
• Closing the sale
- The stage when the salesperson asks the prospect to buy the product
• Following up
- Determine if the order was delivered on time and if there were problems
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion Question
• Often when following up on a sale,
salespeople will find that the customer has
one or more complaints. Wouldn’t it make
more sense just to skip the follow up step
instead of creating the additional work
necessary to handle such complaints?
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Salespeople
• Order getters
- The salesperson who sells to new customers and increases
sales to current ones
Current-customer sales
New-business sales
• Order takers
- Salespersons who primarily seek repeat sales
Inside order takers
Outside/field order takers
• Support personnel
- Sales staff members who facilitate selling but usually are
not involved solely with making sales
Missionary salespeople
Trade salespeople
Technical salespeople
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Selling
• Team Selling
- The use of a team of experts from all functional
areas of a firm, led by a salesperson, to conduct the
personal selling process
• Relationship Selling
- The building of mutually beneficial long-term
associations with a customer through regular
communications over prolonged periods of time
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Integrity Issues in Sales and
Marketing
Source: KPMG Forensic Integrity Survey, KPMG LLP (U.S.), 2008–2009.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managing the Sales Force
• Establishing sales force
objectives
• Determining sales force size
• Recruiting and selecting
salespeople
• Training sales personnel
• Compensating salespeople
• Motivating salespeople
• Managing sales territories
• Controlling and evaluating
sales force performance
Recruiting and Selecting Salespeople
Careerbuilder.com assists in recruiting
the right sales professionals.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Training Salespeople
Training Sales Personnel
Sales training occurs in numerous ways, such as small groups with
technological support.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Compensating Salespeople
• Straight salary compensation plan
- Paying salespeople a specific amount per time period,
regardless of selling effort
• Straight commission compensation plan
- Paying salespeople according to the amount of their sales
in a given time period
• Combination compensation plan
- Paying salespeople a fixed salary plus a commission
based on sales volume
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Average Salaries for Sales
Representatives and Executives
Source: From Christine Galea, “Average Salary for Sales Staffers in 2005,” Sales and Marketing Management, May
2006, p. 30. 2004 VNU Business Media, Inc. Reprinted with permission from Sales and Marketing Management.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Characteristics of Sales Force
Compensation Methods
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Discussion Question
• If you were the owner of a company that
compensated its salespeople using a
(contribution-to-profit) straight commission
compensation plan, and the commission for
5 of your 32 salespeople was higher than
your salary, what (if anything) would you
do? Why?
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What is Sales Promotion?
• Sales Promotion
- An activity and/or
material meant to
induce resellers or
salespeople to sell a
product or consumers
to buy it
Sales Promotion
DenTek included a sample and
a coupon in this sales
promotion program.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Consumer Sales Promotion
Methods
• Ways of encouraging consumers to patronize
specific stores or try particular products
- Coupons and cents-off offers
- Refunds and rebates
- Frequent-user incentives
- point-of-purchase materials and demonstrations,
such as signs and display racks
- Free samples and premiums
- Consumer games, contests, and sweepstakes
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Top Ten Coupon Categories
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Younger Consumers Prefer Online
Coupons
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Trade Sales Promotion Defined
• Trade sales promotion methods stimulate
wholesalers and retailers to carry a
producer’s products and to market those
products more aggressively
– Encourage resellers to carry a product or stock more of
it
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Trade Sales Promotion Methods
• Trade allowances
- Buying allowance – Temporary price
reduction for purchasing specified quantities
- Buy-back allowance – Money given to a
reseller for each unit bought after an initial
promotion is over
- Scan-back allowance – Manufacturer’s
reward based on the number of pieces scanned
- Merchandise allowance – Manufacturer’s
agreement to pay in exchange for providing
special promotional efforts
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Trade Sales Promotion Methods
• Cooperative Advertising – Manufacturer
agrees to pay a portion of retailer’s media costs
for advertising the manufacturer’s products
• Dealer Listings – Ads that promote a product
and list the names of retailers of that product
• Free merchandise – manufacturer’s reward to
retailers for purchasing a stated quantity of
product
• Dealer Loader – Gift given to a retailer for
purchasing a stated quantity of product
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Trade Sales Promotion Methods
(con’t)
• Premium (push) money – Extra
compensation to salespeople for pushing a
product line
• Sales contest – Used to motivate
distributors, retailers, and salespeople by
recognizing outstanding sales
achievements
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion Question
• Which form of compensation do
you think the very best
salespersons will prefer?
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
After Reviewing This Chapter
You Should:
•
•
•
•
•
•
Be able to define personal selling and
understand its purpose.
Know the basic steps in the personal selling
process.
Know the types of sales force personnel.
Understand sales management decisions and
activities.
Know what sales promotion activities are
and how they are used.
Be able to recognize specific consumer and
trade sales promotion methods.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
After Reviewing This Chapter
You Should:
•
•
Be able to examine physical distribution as a
part of supply-chain management.
Know how to explore legal issues in channel
management.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Key Concepts
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Prospecting
Approach
Closing
Order getter
Order takers
Support personnel
Missionary salespeople
Trade salespeople
Technical salespeople
Team selling
Relationship selling
Straight salary compensation
plan
• Straight commission
compensation
• Combination compensation
plan
• Sales promotion
• Consumer sales promotion
methods
• Coupons
• Cents-off offer
• Money refunds
• Point-of-purchase (P-O-P)
materials
• Rebates
• Demonstrations
• Free samples
• Premiums
• Consumer contests
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Key Concepts
•
•
•
•
•
•
•
•
•
•
•
•
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Consumer games
Consumer sweepstakes
Trade sales promotion methods
Buying allowance
Buy-back allowance
Scan-back allowance
Merchandise allowance
Cooperative advertising
Dealer listings
Free merchandise
Dealer loader
Premium (push) money
Sales contests
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.