Chapter 15: The Promotion Mix: Personal Selling and Sales Promotion

Chapter 15: The Promotion Mix: Personal Selling and Sales Promotion

15.1 Personal Selling and Its Role in the Promotion Mix

  • Definition: Personal selling involves one-on-one interactions between salespeople and customers.

  • Role: Helps uncover customer needs, build relationships, and communicate product benefits.

  • Focus: Dependent on marketing strategy, product nature, and target market.

15.2 Classifications of Salespeople Involved in Personal Selling

  • Order Takers: Identify customer needs (Inside and Outside).

  • Order Getters: Persuade customers to purchase.

  • Support Personnel: Aid in the sales process.

  • Team Selling: Collaborative approach involving multiple sales roles.

15.3 Steps in the Personal Selling Process

  1. Prospecting & Qualifying: Identify and qualify potential customers.

  2. Pre-Approach: Analyze needs and develop a contact plan.

  3. Approach: Build rapport with prospects.

  4. Presentation: Match product features to customer needs using various selling methods.

  5. Handle Objections: Address concerns and persuade.

  6. Closing: Finalize sale details.

  7. Follow-Up: Maintain relationships and ensure customer satisfaction.

15.4 Management of the Sales Force

  • Activities: Hiring, training, motivating, and monitoring sales personnel.

  • Objectives: Develop customer relationships, increase market share, and ensure high performance.

  • Compensation Models: Include salary, commission, or combinations to incentivize performance.

15.5 Sales Promotion and Its Role in the Promotion Mix

  • Definition: Sales promotions are short-term strategies to boost sales.

  • Strategies: Push (to intermediaries) and Pull (directly to consumers).

  • Importance: Increases awareness, stimulates demand, and enhances customer satisfaction.

15.6 Main Types of Sales Promotion

  • Consumer-Oriented: Coupons, samples, premiums, contests, loyalty programs, rebates.

  • Trade-Oriented: Discounts, cooperative advertising, cash bonuses, dealer training, push incentives.

15.7 Ethical Issues in Personal Selling and Sales Promotion

  • Personal Selling: Dishonest claims, misuse of funds, inflating sales data, bribery.

  • Sales Promotion: Hidden fees, ambiguous terms.