Chapter 20 Personal Selling And Sales Promotion 0

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Chapter 20 Personal Selling And Sales Promotion 0

Chapter 20 Personal Selling And Sales Promotion 0

Objectives • • • Understand purposes of personal selling Describe steps in personal selling

Objectives • • • Understand purposes of personal selling Describe steps in personal selling process Identify types of sales force personnel Recognize types of personal selling Understand sales management decisions and activities • Explain sales promotion activities and how used • Explore specific consumer/trade sales promotion methods Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 3

Elements of the Personal Selling Process • • Prospecting Preapproach Approach Making the presentation

Elements of the Personal Selling Process • • Prospecting Preapproach Approach Making the presentation Overcoming objections Closing the sale Following up Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 4

General Steps in the Personal Selling Process Copyright © Houghton Mifflin Company. All rights

General Steps in the Personal Selling Process Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 5

Prospect Must Be: • Able • Willing • Authorized Copyright © Houghton Mifflin Company.

Prospect Must Be: • Able • Willing • Authorized Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 6

Many sales teams use technology like Web. Ex to enhance presentations Reprinted with permission

Many sales teams use technology like Web. Ex to enhance presentations Reprinted with permission of Web. Ex Communications, Inc. Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 7

Advantages/Disadvantages Of Personal Selling • Freedom to adjust message to customer • Most precise

Advantages/Disadvantages Of Personal Selling • Freedom to adjust message to customer • Most precise promotion method • Most expensive promotion method Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 8

Types Of Salespeople • Order Getter – Current-Customer – New-Business • Order Taker –

Types Of Salespeople • Order Getter – Current-Customer – New-Business • Order Taker – Inside – Field • Support Personnel – Missionary – Trade – Technical Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 9

Selected Types Of Selling • Team – experts from all functional areas of a

Selected Types Of Selling • Team – experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process • Relationship – mutually beneficial long-term associations with a customer through regular communications Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 10

Managing The Sales Force • • • Establish Objectives Determine Size Recruit/Select Train Compensate

Managing The Sales Force • • • Establish Objectives Determine Size Recruit/Select Train Compensate • Motivate • Manage Territories – Create – Route/Schedule • Control/Evaluate – Salary – Commission – Combination Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 11

Recruiting Steps Prepare Job Description Develop Requirements Analyze Successful Salespeople Copyright © Houghton Mifflin

Recruiting Steps Prepare Job Description Develop Requirements Analyze Successful Salespeople Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 12

Compensating Salespeople • Straight salary compensation plan – paid a specified amount despite effort

Compensating Salespeople • Straight salary compensation plan – paid a specified amount despite effort • Straight commission compensation plan – compensated solely by sales • Combination compensation plan Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 13

Average Salaries for Sales Representatives Copyright © Houghton Mifflin Company. All rights reserved. Microsoft

Average Salaries for Sales Representatives Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 14

Sales Force Compensation Methods Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart

Sales Force Compensation Methods Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 15

Managing Sales Territories • Creating sales territories – Measurable sales potential – Geographic size

Managing Sales Territories • Creating sales territories – Measurable sales potential – Geographic size • Routing and scheduling salespeople – Geographic size/shape – Number of customers Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 16

Controlling and Evaluating Sales Force Performance • Information for managers – Call reports –

Controlling and Evaluating Sales Force Performance • Information for managers – Call reports – Customer feedback – Invoices • Set sales objectives/performance indicators – Calls per day and cost per call – Average sales per customer and gross profit per customer – Actual sales vs. sales potential – Number of new customer orders Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 17

Nature of Sales Promotion • Sales promotion – an activity and/or material intended to

Nature of Sales Promotion • Sales promotion – an activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 18

Consumer Sales Promotion Methods Sales promotion techniques that encourage consumers to patronize specific stores

Consumer Sales Promotion Methods Sales promotion techniques that encourage consumers to patronize specific stores or try particular products Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 19

Coupons A written price reduction used to encourage consumers to buy a specific product

Coupons A written price reduction used to encourage consumers to buy a specific product Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 20

Effect Of Income On Coupon Usage Copyright © Houghton Mifflin Company. All rights reserved.

Effect Of Income On Coupon Usage Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 21

Effect Of Age On Coupon Usage Copyright © Houghton Mifflin Company. All rights reserved.

Effect Of Age On Coupon Usage Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 22

Coupon Advantages • Effective for brand awareness • Users – Reward present – Win

Coupon Advantages • Effective for brand awareness • Users – Reward present – Win back former – Encourage quantity purchase • Traceable to target market Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 23

Coupon Drawbacks • Fraud • Misredemption • Expensive for manufacturers • Losing value •

Coupon Drawbacks • Fraud • Misredemption • Expensive for manufacturers • Losing value • Brand loyalty diminished • Not enough of item in stock Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 24

Types Of Coupons • Cents-Off • Money Refunds • Rebates • Frequent-User Incentives Copyright

Types Of Coupons • Cents-Off • Money Refunds • Rebates • Frequent-User Incentives Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 25

Other Promotional Methods • Point-of-Purchase Materials • Demonstrations • Free Sample • Premiums •

Other Promotional Methods • Point-of-Purchase Materials • Demonstrations • Free Sample • Premiums • Consumer Contests • Consumer Games • Sweepstakes Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 26

Trade Sales Promotion Methods Intended to persuade wholesalers and retailers to carry a producer’s

Trade Sales Promotion Methods Intended to persuade wholesalers and retailers to carry a producer’s products and market them more aggressively Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 27

Methods • Trade Allowances – – • • Buying Buy-back Scan-back Merchandise Cooperative Advertising

Methods • Trade Allowances – – • • Buying Buy-back Scan-back Merchandise Cooperative Advertising and Dealer Listing Free Merchandise and Gifts Premium (Push) Money Sales Contests Copyright © Houghton Mifflin Company. All rights reserved. Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 28