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PersonalSellingand

SalesPromotion1ObjectivesDescribetheroleoftoday’ssalesperson.Describethefoursaleschannels.Describethemajortrendsinpersonalselling.Identifyandbrieflydescribethethreebasicsalestasks.2ObjectivesOutlinethesevenstepsinthesalesprocess.Identifythesevenbasicfunctionsofasalesmanager.Explaintheroleofethicalbehaviorinpersonalselling.Describetheroleofsalespromotioninthepromotionalmix,andidentifythedifferenttypesofsalespromotions.3IntroductionPersonalselling-Interpersonalinfluenceprocessinvolvingaseller’spromotionalpresentationconductedonaperson-to-personbasiswiththebuyer4Table17.1-FactorsAffectingtheImportanceofPersonalSellinginthePromotionalMix5TheEvolutionofPersonalSellingSellinghasbeenastandardbusinessactivityforthousandsofyearsSalespeopleareproblemsolversPersonalsellingisavital,vibrant,dynamicprocess6TheEvolutionofPersonalSellingSalespeoplemustbeableto:Focusonacustomer’ssituationandneedsandcreatesolutionsthatmeetthoseneedsFollowthroughandstayintouchbefore,during,andafterasaleKnowtheindustryandhaveafirmgraspoftheirfirm’sandtheircompetitors’abilitiesWorkhardtoexceedtheircustomers’expectations7Over-the-CounterSellingPersonalsellinginwhichcustomerscometotheseller’splaceofbusiness8FieldSellingSalespresentationsmadeatprospectivecustomers’locationsonaface-to-facebasisExpensiveformofselling,particularlybecauseoftravelexpensesInroutinecases,thesalespersonprocessesregularcustomers’ordersInmorecomplexcases,thesalespersonpreparesforweeks,makespresentations,andfollowsup9FieldSellingNetworkmarketing-Personalsellingthatreliesonlistsoffamilymembersandfriendsofthesalesperson,whoorganizesagatheringofpotentialcustomersforademonstrationofproductsExamples:Avon,PamperedChef,Tupperware10TelemarketingSellingprocessconductedbyphoneServestwopurposesSalesServiceServestwomarketsB2BB2C11TelemarketingOutboundtelemarketing-

SalesmethodinwhichsalespersonnelplacephonecallstoprospectsandtrytoconcludethesaleoverthephoneTechnologiesusedPredictivedialersAutodialingRandom-digitdialing12TelemarketingDrawbackMostconsumersdislikethepracticeandhavesignedupforthenationalDoNotCallRegistrySomefirmsstillusetelemarketingbecause:TheaveragecallcostislowFirmspointtoasignificantrateofsuccess13TelemarketingInboundtelemarketing-

Salesmethodinwhichprospectscallasellertoobtaininformation,makereservations,andpurchasegoodsandservices14InsideSellingSellingbyphone,mail,andelectroniccommerceTurnsopportunitiesintoactualsalesSupporttechniciansandpurchaserswithcurrentsolutions15Figure17.1-AlternativeSalesChannelsforServingCustomers16RelationshipSellingRegularcontactsbetweensalesrepresentativesandcustomersoveranextendedperiodtoestablishasustainedbuyer-sellerrelationshipImportanttoboth,B2BandB2Csales17Table17.2-WhatBuyersExpectfromSalespeople18ConsultativeSellingMeetingcustomerneedsbylisteningtothem,understandingtheirproblems,payingattentiontodetails,andfollowingthroughafterthesaleCross-selling-Offeringmultiplegoodsorservicestothesamecustomer19TeamSellingSeveralsalesassociatesareemployedtohelptheleadsalesrepresentativereachallthosewhoinfluencethepurchasedecisionCustomersoftenfeelbetterservedbyateamapproachRelationshipsformbetweencompaniesratherthanbetweenindividuals20TeamSellingVirtualsalesteams-Anetworkofstrategicpartners,suppliers,andotherswhoarequalifiedandwillingtorecommendafirm’sgoodsorservices21OrderProcessingSellingthatinvolvesidentifyingcustomerneeds,pointingthemouttocustomers,andcompletingordersIdentifycustomerneedsPointouttheneedtothecustomerComplete(writeup)theorder22CreativeSellingSalespeopleusewell-plannedstrategiestoseeknewcustomersbyproposinginnovativesolutionstocustomers’needsUsedtodevelopnewbusinesswitheithernewcustomersornewproductsGenerates“buzz〞foraproduct23MissionarySellingPromotinggoodwillforthefirmbyeducatingcustomersandprovidingtechnicaloroperationalassistanceSalesincentives-ProgramsthatrewardsalespeopleforsuperiorperformanceTrips,gascards,orfreeproductupgradesMayinvolvebothfieldsellingandtelemarketing24Figure17.2-TheAIDAConceptandthePersonalSellingProcess25ProspectingandQualifyingProspecting-PersonalsellingfunctionofidentifyingpotentialcustomersQualifying-Determiningaprospect’sneeds,income,andpurchaseauthorityasapotentialcustomer26ApproachInitialcontactwithprospectivecustomerPrecallplanning27PresentationDescribingaproduct’smajorfeaturesandrelatingthemtoacustomer’sproblemsorneedsTechnologymustbeusedefficientlytobeeffectiveColdcalling-Contactingaprospectwithoutapriorappointment28DemonstrationCustomerhastheopportunitytotryouthowagoodworksbeforepurchaseMultimediainteractivedemonstrationsarenowcommonExample:DemonstrationvideosBlack&Deckerpostsonitswebsite29HandlingObjectionsObjections-ExpressionsofresistancebytheprospectMaytaketheformofstallingorindecisivenessUseobjectionsasanopportunitytoreassurethebuyers30ClosingthesalespersonasksthecustomertomakeapurchasedecisionPossiblestrategiesAddressingtheprospect’smajorconcernaboutapurchaseandthenofferingaconvincingargumentPosingchoicesfortheprospectinwhicheitheralternativerepresentsasale31ClosingAdvisingthebuyerthataproductisabouttobediscontinuedorwillgoupinpricesoonRemainingsilentsothebuyercanmakeadecisiononhisorherownOfferinganextrainducementdesignedtomotivateafavorablebuyerresponse32Follow-UpPostsaleactivitiesthatoftendeterminewhetheran:Individualwhohasmadearecentpurchasewillbecomearepeatcustomer33ManagingtheSalesEffortSalesmanagershandletheoveralldirectionandcontrolofthepersonalsellingeffortRequiresanappropriatemixofsalesandmanagementskills34RecruitmentandSelectionSuccessfulsalescareersoffer:OpportunityforadvancementPotentialforhighearningsPersonalsatisfactionJobsecurityIndependenceandvariety35TrainingPrimarymethodsareon-the-jobtraining,individualinstruction,how-toclasses,andexternalseminarsUsevideos,simulations,andexecutivedevelopmentprogramsOngoingtrainingisimportantforexperiencedsalespeople36OrganizationMaybebasedongeography,products,typesofcustomers,orsomecombinationofthesefactorsNationalaccountsorganization-Adedicatedsalesteamisassignedtoafirm’smajorcustomerstoprovidesalesandserviceneeds37Figure17.3-BasicApproachestoOrganizingtheSalesForce38SupervisionSpanofcontrol-Numberofsalesrepresentativeswhoreporttofirst-levelsalesmanagersOptimalspanofcontrolisaffectedby:ComplexityofworkactivitiesAbilityoftheindividualsalesmanagerDegreeofinterdependenceamongindividualsalespeopleExtentoftrainingeachsalespersonreceives39MotivationMotivationaltoolsincludeinformationsharing,recognition,bonuses,incentives,andbenefitsExpectancytheory–Motivationdependsonanindividual’sexpectationsof:Hisorherabilitytoperformajobandhowthatperformancerelatestoattainingadesiredreward40CompensationCommission-IncentivecompensationdirectlyrelatedtothesalesorprofitsachievedbyasalespersonSalary-FixedpaymentmadeperiodicallytoanemployeeCompensationpackagesvaryaccordingtoindustry41Figure17.4-MedianPayforAccountManagersbyYearsofExperience42EvaluationandControlManagersmustsetstandardsandchoosethebestmethodsformeasuringsalesperformanceSalesquotas-Levelofexpectedsalesforaterritory,product,customer,orsalespersonagainstwhichactualresultsarecompared43EvaluationandControlOthermeasuresinclude:CustomersatisfactionProfitcontributionShareofproduct-categorysalesCustomerretention44EthicalIssuesinSalesHonestyandethicalbehaviorisencouragedwhen:EmployeesunderstandwhatisexpectedofthemOpencommunicationisencouragedManagersleadbyexample45SalesPromotionMarketingactivitiesotherthanpersonalselling,advertising,andpublicitythatenhanceconsumerpurchasinganddealereffectivenessIntegratedintooverallmarketingplanPromotionsarelikelytostresspriceadvantages,giveaways,orspecialoffers46SalesPromotionGoalisspeedingthesalesprocessandincreasingsalesvolumeCannotovercomepoorbrandimages,productdeficiencies,orpoortrainingforsalespeople47Consumer-OrientedSalesPromotionsEncouragerepurchasesbyrewardingcurrentusersBoostsalesofcomplementaryproductsIncreaseimpulsepurchases48CouponsandRefundsCoupons-OffersadiscountonthepurchasepriceofgoodsorservicesRefundsorrebates-Cashgivenbacktoconsumerswhosendinproofofpurchaseforoneormoreproducts49Samples,BonusPacks,andPremiumsSampling-FreedistributionofaproducttoobtainfuturesalesHigherresponseratethanotherformsofpromotionGoodforpromotingneworunusualproductsRelativelyexpensiveformofpromotion50Samples,BonusPacks,andPremiumsBonuspack-SpeciallypackageditemthatgivesthepurchaseralargerquantityattheregularpricePremiums-Itemsgivenfreeoratreducedcostwithpurchasesofotherproducts51ContestsandSweepstakesContest

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