Chapter 12:Selling, Sales Promotion, and

Public Relations

The Sales Function

the sales function is responsible for selling products and services to customers, through the communication of information during customer interaction

it is a relatively high-cost form of promotion, often a firm’s largest single operating expense

there is more to a personal selling job than selling; often the job is to build a relationship; many sales people are now referred to as customer-services reps

personal selling is the most flexible promotional tool; can be tailored to the specific customer

Sales is Most Effective When…

the sales function is more likely to be dominant when: the market is concentrated geographicallyproduct value is not readily apparent the product has high unit value. is technically, or requires

much explanation the product must be tailored to a customer the sale involves a trade-in the product is at the introductory stage of its life cycle the firm has a small budget for advertising

Scope of the Sales Function there are many types of sales jobs retailing involves inside selling; these jobs may

involve proactive selling or reactive selling outside sales persons go to the customer; there is

usually some opportunity for creative selling and addressing customer needs

electronic selling through telemarketing is a relatively new development which combines with databases to better target customers

Figure 12-1 Scope of the Sales Function

The New Focus of Selling

“selling” may be a misleading term; often there is no selling involved – sales personnel are providing service and building relationships

because of their interpersonal contact with the customer, sales people influence the image of the firm

they provide a valuable service role , and ideally become the customer’s trusted partner

The Nature of Sales Jobs

many sales reps are now professional sales persons with complete responsibility for relations with their customers

there is often considerable opportunity for role conflict and role ambiguity

there is a wide variety of sales jobs from delivery drivers to creative sales engineers

the sales staff is the front line and represents the firm to its customers

Changing Patterns in Sales

the nature of the selling job is changing, reflecting changing market situations

many firms have organized sales teams others now offer their customers a coordinated

systems and solutions for their problems there is considerable emphasis today on the

development of relationships with customers technology has changed the way many firms sell,

relying on telemarketing and the Internet

Relationship Selling

high levels of trust are importantbuyer must demonstrate trust in the

salesperson as well as the selling organization trusted salespeople can retain the buyer’s

commitment even in the face of policies that may not be considered satisfactory

sales people have a major role in the management of customer relationships

The Sales Process many firms follow a predictable sales pattern prospecting involves the identification of prospects

from various sources qualifying the prospect determines the willingness

and capability to buy presenting the sales message (attract attention, hold

interest, stimulate desire, close the sale) there is often a need to serve customers after the

sale to ensure their satisfaction

Figure 12-2 The Personal Selling Process

Staffing/Operating a Sales Force

staffing is a critical sales-force decision: must ensure that staff have necessary qualifications

the firm needs a system to generate applicants recruitment often involves extensive screening extensive sales force training is often needed the sales force must be supervised and managed their performance has to be evaluated; compensation

systems must be put in place

Figure 12-3 Staffing and Operating a Sales Force

Evaluating Sales Performance

a system must exist to evaluate performance serves as the basis for training programs and

for determining appropriate rewards quantitative bases for performance review

include sales generated, number of orders, closing rate, number of calls made

qualitative bases include product knowledge, preparedness for calls, success in establishing relationships, appearance, and attitude

Sales Promotion sales promotions stimulate short-term sales through

non-advertising means; coupons, contests, samples, displays, premiums, trade shows

may be directed at end consumers (consumer promotions) or at intermediaries (trade promotions) or a firm’s sales force

sales promotions are short-term in orientation and tactical in achieving certain objectives

it may be easier to evaluate the effectiveness of sales promotions than it is for advertising

Public Relations

public relations is intended to develop and maintain a positive public image for a firm

objective is to maintain good relations with a number of “publics”; this may be achieved by generating positive publicity

publicity is usually considered to be a “news item” that appears about a specific company

positive publicity is achieved through press releases, press conferences, and events