Chapter 20 Personal Selling And Sales Promotion0

2. Chapter 20Personal Selling And Sales Promotion0

3. Objectives • Understand purposes of personal selling • Describe steps in personal selling process • Identify types of sales force personnel • Recognize types of personal selling • Understand sales management decisions and activities • Explain sales promotion activities and how used • Explore specific consumer/trade sales promotion methods

4. Elements of the Personal Selling Process • Prospecting • Preapproach • Approach • Making the presentation • Overcoming objections • Closing the sale • Following up

5. General Steps in the Personal Selling Process

6. Prospect Must Be: • Able • Willing • Authorized

7. Many sales teams use technology like WebEx to enhance presentations Reprinted with permission of WebEx Communications, Inc.

8. Advantages/DisadvantagesOf Personal Selling • Freedom to adjust message to customer • Most precise promotion method • Most expensive promotion method

9. Types Of Salespeople • Order Getter • Current-Customer • New-Business • Order Taker • Inside • Field • Support Personnel • Missionary • Trade • Technical

10. Selected Types Of Selling • Team – experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process • Relationship – mutually beneficial long-term associations with a customer through regular communications

11. Establish Objectives Determine Size Recruit/Select Train Compensate Salary Commission Combination Motivate Manage Territories Create Route/Schedule Control/Evaluate Managing The Sales Force

12. Recruiting Steps Prepare Job Description Develop Requirements Analyze Successful Salespeople

13. Compensating Salespeople • Straight salary compensation plan • paid a specified amount despite effort • Straight commission compensation plan • compensated solely by sales • Combination compensation plan

14. Average Salaries for Sales Representatives

15. Sales ForceCompensation Methods

16. Managing Sales Territories • Creating sales territories • Measurable sales potential • Geographic size • Routing and scheduling salespeople • Geographic size/shape • Number of customers

17. Controlling and Evaluating Sales Force Performance • Information for managers • Call reports • Customer feedback • Invoices • Set sales objectives/performance indicators • Calls per day and cost per call • Average sales per customer and gross profit per customer • Actual sales vs. sales potential • Number of new customer orders

18. Nature of Sales Promotion • Sales promotion – an activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it

19. Consumer Sales Promotion Methods Sales promotion techniques that encourage consumers to patronize specific stores or try particular products

20. Coupons A written price reduction used to encourage consumers to buy a specific product

21. Effect Of IncomeOn Coupon Usage

22. Effect Of AgeOn Coupon Usage

23. Coupon Advantages • Effective for brand awareness • Users • Reward present • Win back former • Encourage quantity purchase • Traceable to target market

24. Coupon Drawbacks • Fraud • Misredemption • Expensive for manufacturers • Losing value • Brand loyalty diminished • Not enough of item in stock

25. Types Of Coupons • Cents-Off • Money Refunds • Rebates • Frequent-User Incentives

26. Other Promotional Methods • Point-of-Purchase Materials • Demonstrations • Free Sample • Premiums • Consumer Contests • Consumer Games • Sweepstakes

27. Trade SalesPromotion Methods Intended to persuade wholesalers and retailers to carry a producer’s productsand market them more aggressively

28. Methods • Trade Allowances • Buying • Buy-back • Scan-back • Merchandise • Cooperative Advertising and Dealer Listing • Free Merchandise and Gifts • Premium (Push) Money • Sales Contests