Chapter 13: Personal Selling & Sales Management & Selling

Personal Selling

Occurs when a company representative interacts directly with a (prospective) customer to communicate about a good or service

• adds a “personal touch”

• high mobility

Personal Selling importance

• B2B context

• selling durable shopping products bough infrequently (cars, houses, etc)

• push strategy

• COSTLY

Outside sales force

• travel to call on customers in the field

Inside sales force

• conduct business from office, internet, telephone

• sales assistants

• telemarketers + online selling

Team selling

teams of people from different departments used to service large complex accounts

Sales force structure

• territorial

• product

• customer (or market)

Sales force specialization

customer + territory

• product + territory

• product and customer

Transactional selling

High-pressure process that focuses

on making an immediate sale with

no concern for developing long-

term customer relationship

Relationship selling

Process of building long-term customers by developing mutually satisfying, win-win relationships with customers

Selling Process: Step 1

Prospecting: Developing a list of potential customers

Qualifying: Determining how likely potential customers are to become customers

Selling Process: Step 2

The pre-approach: Compiling background information about prospective customers and planning the sales interview

• Purchase history, current needs, customer’s

  interests

• informal sources

Selling Process: Step 3

The approach: contacting the prospect

• learning about customers needs to creation good impression + build rapport

Selling Process: Step 4

Sales Presentation: Laying out the benefits and added value of a firm’s product/service and its advantages over the competition

• invite conversation through questions and feedback

Selling Process: Step 5

Handling objectives: Anticipating why a prospect is reluctant to make a commitment and responding with additional information or persuasive arguments

• welcome objections

Selling Process: Step 6

Closing the sale: Gaining the customer’s commitment in the decision stage using a variety of approaches

• last objection close

• assumptive or minor points close

• standing room only or buy now close

• solution should justify prices

Final Stage

Follow up —— solution should provide savings that justify the price

Straight Commission

• Earn a percentage of sales margin or selling price

Commission with a draw

Advance salary to be paid with future commissions

Straight salary

• Base salary with bonuses based on making quotas

Additional Compensation

• Sales contests & Incentive programs

– Sales Meetings (i.e., conference trips to “nice” places)

– Recognition & honors

Salespeople motivations

• Organizational climate

• Sales quotas

• Positive incentives

Sales Force Performance Evaluations

• From sales, call, and expense reports

• By monitoring the sales and profit performance data in the salesperson’s territory

• Through personal observation, customer surveys, and talks with other salespeople

Consumer promotions

To urge short-term customer buying or boost customer brand involvement

Trade Promotions

To get retailers to carry new items and more inventory, buy ahead, or promote the company’s products and give them more shelf space

Business promotions

 To generate business leads, stimulate purchases, reward customers, and motivate salespeople

Sales force promotions

 To get more sales force support for current or new products and motivate salespeople to sign up new accounts

Samples

• Offers of a trial amount of a product

• Most effective and expensive

Coupons

 Certificates that save buyers money when

they purchase specified products

Rebates (cash refunds)

• Price reduction occurs after the purchase

• Customer sends proof of purchase to the

manufacturer, which then refunds part of the

purchase price by mail

Price packs (cents-off deals)

• Offer consumers savings off the regular price

of a product

Premiums

Goods offered either free or at low cost as an

incentive to buy a product.

Advertising Specialties

Useful articles imprinted with an advertiser’s name, logo, or message that are given as gifts to consumers

Point of Purchase Promotions

Displays and demonstrations that take

place at the point of sale

Contests, sweepstakes, and games

• Give consumers the chance to win

something

Event marketing / event sponsorships

Creating a brand-marketing event or serving as a sole or participating sponsor of events created by others

Trade promotions

Used to persuade resellers to carry a brand,

give it shelf space, and promote it in ads

• free goods

• push money

• discounts + allowances

• specialty advertising items

Business Promotions

Used to generate business leads, stimulate purchases, reward customers, and motivate salespeople

Business promotion tools

• conventions and trade shows

• Sales contests