Personal Selling • interpersonal promotional process involving a seller’s person-to-person presentation to a prospective buyer.
Personal Selling Communication Mode Direct and face-to-face Communication Control High Feedback Amount Much Feedback Speed Immediate Message Flow Direction Two-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Slow Message Flexibility Tailored to prospect Characteristics of Personal Selling
Intro to Personal Selling • Importance: almost every company can benefit from personal selling • 10% of workforce (how many have? How many would like to?) • Often largest operating expense (up or out; car dealers) • Customer contact (info & customer impressions)
Sales management: decisions • Sales force • # (of salespeople; big issues with commissions, customers and turnover) • Compensation • Straight salary: most security, control, and simplicity • Straight commission (most incentive) • Direct: Salary • Indirect: part of firm earnings • Compensation • Align incentive with firm interest (Sears) • Combination: most popular (some security and incentives • Supervision/Training
Who to serve? • Sales territory: geographic area; clear responsibility (overlap; lead in another) • Major accounts: special treatment for large (fleet sales for cars)
Selling techiques • Selling techniques • Customers ≠ (80-20 rule) • 3 sales presentations • Prepared: more talk, canned leads to trial close, low skill (telemarketing) • Consultative: listen, less talk, help solve problems, customers differ, high skill • Selling formula: start prepared then steps outlined
Job of Personal Selling (1) • Duties: • Order getting: without order getters, many of the products we now rely on – ranging from mutual funds to air conditioners – might have died in the market introduction stage • Seek new clientele with sales presentation • Prospecting: follow all leads (allocate time on potential) – insurance, graduate
Job of Personal Selling (2) • Duties (cont…) • Order taking • Serve current customers and complete routine sales • Regular route and customers • Low aggression and pressure: pejorative
Job of Personal Selling (3) • Duties (cont…) • Supporting salespeople: no selling, help order getters & order takers • Missionary: entry level • Goodwill, stimulate demand for products • Tasks: training, coop ads, sales promotion (increase sales 2-3x) • Technical specialists: often after o.g. & o.t. visit • Scientists and engineers • Provide details on complex processes (installation, maintenance etc.) • May mix three jobs (retraining people)
Sales Promotion Targets ConsumerSales Promotion Trade Sales Promotion Sales Promotion
Popular Tools for Consumer Sales Promotion Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion Tools for Consumer Sales Promotion
Sales Promotion Methods for Consumers • Coupons Discounts on the purchase price of a good or service
Sales Promotion Methods for Consumers • Premiums – Items given free or at a reduced cost
Sales Promotion Methods for Consumers • Loyalty Programs • Reward regular customers
Contests During the annual search, which includes both the U.S. and Canada, the grandchildren, children, spouses and friends of outstanding grandmas are invited to write in and tell us, in 100 words or less, why their grandmas are the greatest.
Sweepstakes • Consumer Sweepstakes - Chance Universal Studios Hollywood Terminator 2:3D Sweepstakes OFFICIAL GIVEAWAY RULES; NO PURCHASE NECESSARY ENTRY: To enter the Universal Studios Hollywood Terminator 2:3D Sweepstakes, register your name and information (no password required). Completed entries must be received by 11:59pm PST on June 1, 2006 to be eligible for the Grand Prize.
http://www.thefreesite.com/freesamples.htm Sales Promotion Methods for Consumers • Sampling • In store, mail, door-to-door • Higher response rates than coupons
Sales Promotion Methods for Consumers • Point-of-Purchase Displays • Signs, Window displays, Counter pieces, Display racks to attract customers • 70% purchase decisions in-store
Gain new distributors Build or reduce dealer inventories Improve trade relations The Role of Trade Sales Promotion
Unique Tools for Trade Sales Promotion Trade Allowances Push Money Tools for Trade Sales Promotion