Personal Selling & Sales Promotion

Learning ObjectivesDiscuss the role of a companys salespeople in creating value for customers and building customer relationships.Identify and explain the six major sales force management steps.

Learning ObjectivesDiscuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing.Explain how sales promotion campaigns are developed and implemented.

First Stop: IBMWatson had a different vision for selling. Hired only top-performing graduates from Ivy League universitiesEnsured high ethical standards were followedProvided intensive sales training on developing a deep knowledge of IBM and its customersTrained salespeople to listen, observe, and study through observationTo be really good in sales today, salespersons should be part diplomat, part entrepreneur, and part inventor to solve customer problems ( Culture at IBM).

Personal SellingPersonal presentations by a sales force to make sales and build customer relationshipsSalesperson: Represents a company to customers by performing one or more of the following activities:Prospecting and communicatingSelling and servicing Gathering information and building relationships

Role of the Sales ForceLinks the company with its customersCoordinates marketing and sales

Sales Force ManagementAnalyzing, planning, implementing, and controlling sales force activitiesSteps of sales force management:Designing a sales force strategy and structureRecruiting and selecting salespeopleTraining salespeopleCompensating salespeopleSupervising salespeopleEvaluating salespeople

Designing the Sales Force Strategy and StructureTypes of sales force structures:TerritorialProductCustomer (or market)Salespeople can be specialized by:Customer and territoryProduct and territoryProduct and customerTerritory, product, and customer

Sales Force SizeMay range from only a few to thousandsCompanies may use the workload approach to set sales force size.Accounts are grouped into different classes based on size, account status, or other factors. The number of salespeople needed to call on each class of accounts is then determined.

Other Sales Force Strategy and Structure Issues

Recruiting & Selecting SalespeopleA company should analyze the sales job and the characteristics of its most successful salespeople.Sources for the recruitment of salespeople:Referrals from current salespeopleEmployment agenciesInternet and online social mediaCollege placement servicesSalespeople at other companies

Training SalespeopleGoals of training are to teach salespeople:About different types of customers How to sell effectively About the companys objectives, organization, products, and the strategies of competitorsOnline training builds sales skills using videos, Internet-based exercises, or simulations.Virtual instructor-led training (VILT)

Compensating Salespeople

Supervising SalespeopleHelp salespeople work smart by doing the right things in the right waysTools of supervision:Call planTime-and-duty analysis Sales force automation system

Motivating SalespeopleEncourage salespeople to work hard and energetically toward sales force goalsManagement can boost sales force morale and performance through its:Organizational climateSales quotasPositive incentives

Evaluating Salespeople and Sales Force PerformanceManagement gets information about its salespeople:From sales, call, and expense reports By monitoring the sales and profit performance data in the salespersons territoryThrough personal observation, customer surveys, and talks with other salespeopleFormal evaluations force management to develop standards for judging performance.

Selling Digitally: Online, Mobile,and Social Media ToolsProvide salespeople with powerful tools for:Identifying and learning about prospectsEngaging customersCreating customer valueClosing salesNurturing customer relationshipsHelp sales forces to be more efficient, cost-effective, and productive

Steps in the Selling Process

Personal Selling and Managing Customer RelationshipsValue selling - Demonstrating and delivering superior customer value Capturing a return on that value that is fair for both the customer and the companyRequires:Listening to customersUnderstanding customers needsCoordinating the companys efforts to create lasting relationships based on customer value

Sales PromotionShort-term incentives to encourage the purchase or sale of a product or a serviceSales promotion targets:Final buyers - Consumer promotionsRetailers and wholesalers - Trade promotionsBusiness customers - Business promotionsMembers of the sales force - Sales force promotions

Sales PromotionMany factors have contributed to the rapid growth of sales promotion.Product managers view promotion as an effective short-run sales tool.Competitors use sales promotion to differentiate their offers.Advertising efficiency has declined.Sales promotions help attract todays more thrift-oriented consumers.

Sales Promotion Objectives

Consumer Promotion Tools

ToolsDescriptionSamplesOffers of a trial amount of a productMost effective and expensiveCouponsCertificates that save buyers money when they purchase specified productsRebates (cash refunds)Price reduction occurs after the purchaseCustomer sends proof of purchase to the manufacturer, which then refunds part of the purchase price by mailPrice packs (cents-off deals)Offer consumers savings off the regular price of a productPremiumsGoods offered either free or at low cost as an incentive to buy a product

Consumer Promotion Tools

ToolsDescriptionAdvertising specialtiesUseful articles imprinted with an advertisers name, logo, or message that are given as gifts to consumersPoint-of-purchase (POP) promotionsDisplays and demonstrations that take place at the point of saleContests, sweepstakes, and gamesGive consumers the chance to win somethingEvent marketing(or event sponsorships)Creating a brand-marketing event or serving as a sole or participating sponsor of events created by others

Trade PromotionsUsed to persuade resellers to carry a brand, give it shelf space, and promote it in ads Trade promotion tools: Contests, premiums, and displaysDiscounts and allowancesFree goodsPush money Specialty advertising items

Business PromotionsUsed to generate business leads, stimulate purchases, reward customers, and motivate salespeopleBusiness promotion tools:Conventions and trade showsSales contests

Developing the Sales Promotion ProgramMarketers must:Determine the size of the incentiveSet conditions for participationDetermine how to promote and distribute the promotion program itselfSet the length of the promotionEvaluate the promotion

Learning ObjectivesDiscuss the role of a companys salespeople in creating value for customers and building customer relationships.Identify and explain the six major sales force management steps.

Learning ObjectivesDiscuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing.Explain how sales promotion campaigns are developed and implemented.

Thank you