Chapter 17 Personal Selling and Sales Promotion
Objectives • Explain the conditions that determine the relative importance of personal selling in the promotional mix. • Contrast over-the-counter selling, field selling, telemarketing, and inside selling. • Describe each of the four major trends in personal selling. • Identify the three basic sales tasks. • Outline the steps in the sales process. • Describe the sales manager’s boundary-spanning role. • List and discuss the functions of sales-force management. • Discuss the role of ethics in personal selling and sales-force management.
Personal Selling • Process of a seller’s person-to-person promotional presentation to a buyer. • Is essentially interpersonal. • Is basic to any enterprise. • Is likely 10-15 % of total sales.
Factors Affecting the Importance ofPersonal Selling in the Promotional Mix
Alternative Sales Channels for Serving Customers Over-the-Counter Selling Customers in retail setting With typical, routine needs Field Selling Customers who need solutions to complex problems Customers Telemarketing New customers and customers of competitors Inside Selling Customers who need answers to frequently asked questions
TelemarketingAre There Downsides? • Who has not experienced it -- ringing of the phone just as dinner goes on the table. You answer, it's not a friend, it's not a family member, it's not even from work. It's someone calling to sell you something -- a telemarketer. • What can you do if you wish to slow down the number of telemarketing calls?
Manufactures of Industrial Products $262 $200 Services $158 Retailing Manufactures of Consumer Products $154 $133 Wholesaling SOURCE: sales data reported in “Cost of a A Call Survey,” Sales & Marketing Management, September 2000, p. 82. Cost of a Sales Call by Industry
Trends in Personal Selling • Sell to teams of corporate representatives. • Answer technical questions. • Want representatives who understand technical jargon. • Patience.
Four Personal Selling Approaches • Relationship selling,a technique for building a mutually beneficial relationship. • Consultative selling, involves meeting customer needs by listening to customers, understanding—and caring about—their problems, paying attention to details, and following through after the sale. • Team selling, in which the salesperson joins with specialists from other functional areas of the firm to complete the selling process. • Sales-force automation (SFA) - the application of new technologies to the sales process.
Three Basic Sales Tasks Classification System • Order processing. • Creative selling. • Missionary sales.
Developing an Efficient Sales Force • Technology and information is helping to develop the most modern, efficient sales force ever.
AIDA ACTION Step 7 Follow-Up Step 6 Closing DESIRE Step 5 Handling Objections Step 4 Demonstration INTEREST Step 3 Presentation ATTENTION Step 2 Approach Step 1 Prospecting and Qualifying The AIDA Concept and the Personal Selling Process
Effective Precall Planning Questions • Who are the audience members and what jobs do they perform each day? • What is their level of knowledge? • What do they want to hear? • What do they need to hear?
Methods of Closing a Sale • The “if I can show you . . . ” technique. • The alternative-decision technique. • The SRO (standing-room only) technique. • Silence. • An extra-inducement.
Prospecting How Salespeople Spend Their Time
Administrative Tasks How Sales Managers Spend Their Time
Motivation • Let each salesperson know in detail what is expected. • Make the work valuable. • Make the work achievable. • Provide immediate and specific feedback. • Offer rewards that each salesperson values.
Methods for Measuring Sales Performance • Sales volume. • Profitability. • Investment return.
Creating an Ethical Sales Environment • Promoting ethical awareness during training programs, sales meetings, and sales calls. • Making sure that all employees know that the firm opposes unethical conduct. • Establishing control systems to monitor ethical conduct.
Ethics and Selling & InformationFTC Tips How often do you share personal information about yourself with others. It's so routine that you may not even realize you're doing it. It could be that you wrote a check at the grocery store, charge something at you favorite retailer, rented a car, mailed in your tax return, or bought a gift online, or applied for a credit card. For each transaction you are required to share personal information: your bank and credit card account numbers; your income; your Social Security number (SSN); or your name, address and phone numbers. The FTC web site offers tips to help you manage your personal information.