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SixteenPersonal

SellingandSales

PromotionPersonal

Selling

andSales

PromotionCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

2Topic

OutlineThe

Nature

of

Personal

SellingThe

Role

of

the

Sales

ForceManaging

the

Sales

ForceThe

Personal

Selling

ProcessSales

PromotionPersonal

SellingCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

3The

Roleof

the

Sales

ForcePersonal

selling

is

the

interpersonal

parof

the

promotion

mix

and

can

include:Face-to-face

communicationTelephone

communicationVideo

or

Web

conferencingPersonal

SellingCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

4The

Nature

of

Personal

SellingSalespeople

are

an

effective

link

betweenthe

company

and

its

customers

to

producecustomer

value

and

company

profit

by:Representing

the

company

to

customersRepresenting

customers

to

the

companyWorking

closely

with

marketingManaging

the

Sales

ForceCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

5Sales

force

management

is

theanalysis,

planning,

implementation,

andcontrol

of

sales

force

activitiesManaging

the

Sales

ForceDesigning

Sales

Force

StructureCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

6Managing

the

Sales

ForceCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

7Sales

Force

StructureTerritorial

sales

force

structure

refers

to

astructure

where

each

salesperson

is

assignedan

exclusive

geographic

area

and

sells

thecompany’s

full

line

of

products

and

servicesto

all

customers

in

that

territoryDefines

salesperson’s

jobFixes

accountabilityLowers

sales

expenses

Improves

relationship

building

and

sellingeffectivenessManaging

the

Sales

ForceCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

8Sales

Force

StructureProduct

sales

force

structure

refers

to

astructure

where

each

salesperson

sellsalong

product

linesImproves

product

knowledgeCan

lead

to

territorial

conflictsManaging

the

Sales

ForceCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

9Sales

Force

StructureCustomer

sales

force

structure

refersto

a

structure

where

each

salespersonsells

along

customer

or

industry

linesImproves

customer

relationshipsManaging

the

Sales

ForceCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

10Sales

Force

StructureComplex

sales

force

structure

refers

toa

structure

where

a

wide

variety

ofproducts

is

sold

to

many

types

ofcustomers

over

a

broad

geographicarea

and

combines

several

types

ofsales

force

structuresManaging

the

Sales

ForceCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

11Sales

Force

SizeSalespeople

are

one

of

the

company’smost

productive

and

expensive

assets.

Increases

in

sales

force

size

canincrease

salesandcosts

Workload

approach

to

sales

forcessize

refers

to

grouping

accounts

intodifferent

classes

to

determine

thenumber

of

salespeople

neededManaging

the

Sales

ForceCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

12Other

Sales

Force

Strategy

and

StructureIssuesOutside

salespeople

call

on

customers

inthe

fieldInside

salespeople

conduct

business

fromtheir

offices

and

often

provide

support

forthe

outside

salespeopleTechnical

sales

support

peopleSales

assistantsTeam

selling

is

used

to

service

large,complex

accountsManaging

the

Sales

ForceCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

13Recruiting

and

Selecting

SalespeopleIssues

in

Recruiting

and

Selecting

Careful

selection

and

training

increasessales

performancePoor

selectionIncreases

recruiting

and

training

costsLost

salesDisrupts

customer

relationshipsManaging

the

Sales

ForceSalesperson

compensation

based

on:Copyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

14Managing

the

Sales

ForceCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

15Supervising

and

MotivatingSalespeople

The

goal

of

supervision

is

to

helpsalespeople

work

smart

by

doing

theright

things

in

the

right

ways

The

goal

of

motivation

is

to

encouragesalespeople

to

work

hard

andenergetically

toward

sales

force

goalsManaging

the

Sales

ForceSelling

and

the

InternetMajor

tool

to

support

salespeopleCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

16Managing

the

Sales

ForceCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

17Supervising

and

MotivatingSalespeople

Sales

morale

and

performance

can

beincreased

through:Organizational

climateSales

quotasPositive

incentivesManaging

the

Sales

ForceEvaluating

Salespeople

and

Sales-ForcePerformanceCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

18The

Personal

Selling

ProcessCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

19 The

goal

of

the

personal

selling

processis

to

get

new

customers

and

obtain

orders

from

themThe

Personal

Selling

ProcessCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

20Steps

in

the

Personal

Selling

ProcessProspecting

identifies

qualified

potentiacustomers

through

referrals

from:CustomersSuppliersDealersInternetThe

Personal

Selling

ProcessCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

21Steps

in

the

Personal

Selling

ProcessQualifying

is

identifying

good

customersand

screening

out

poor

ones

by

lookingat:Financial

abilityVolume

of

businessNeedsLocationGrowth

potentialThe

Personal

Selling

ProcessSteps

in

the

Personal

Selling

Process

Pre-approach

is

the

process

of

learningas

much

as

possible

about

a

prospect,including

needs,

who

is

involved

in

thebuying,

and

the

characteristics

and

stylesof

the

buyersCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

22The

Personal

Selling

ProcessCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

23Steps

in

the

Personal

Selling

ProcessApproach

is

the

process

where

thesalesperson

meets

and

greets

thebuyer

and

gets

the

relationship

off

to

agood

start

and

involves

thesalesperson’s:AppearanceOpening

linesFollow-up

remarksThe

Personal

Selling

ProcessCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

24Steps

in

the

Personal

Selling

Process

Opening

lines

should

be

positive,

buildgoodwill,

and

be

followed

by

keyquestions

to

learn

about

thecustomer’s

needs

or

showing

adisplay

or

sample

to

attract

thebuyer’s

attention

and

curiosity

The

most

important

attribute

is

for

thesalesperson

to:

listenThe

Personal

Selling

ProcessCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

25Steps

in

the

Personal

Selling

ProcessPresentation

is

when

the

salesperson

tellsthe

product

story

to

the

buyer,

presentingcustomer

benefits

and

showing

how

theproduct

solves

the

customer’s

problems

Need-satisfaction

approach:

Buyers

wantsolutions

and

salespeople

should

listenand

respond

with

the

right

products

andservices

to

solve

customer

problemsThe

Personal

Selling

ProcessSteps

in

the

Personal

Selling

ProcessBad

Traits

Good

traitsCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

26The

Personal

Selling

ProcessCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

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slide

27Steps

in

the

Personal

Selling

ProcessHandling

objections

is

the

processwhere

salespeople

resolve

problemsthat

are

logical,

psychological,

orunspokenThe

Personal

Selling

ProcessCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

28Steps

in

the

Personal

Selling

ProcessClosing

is

the

process

wheresalespeople

should

recognize

signalsfrom

the

buyer—including

physicalactions,

comments,

and

questions—toclose

the

saleThe

Personal

Selling

ProcessCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

29Steps

in

the

Personal

Selling

ProcessFollow-up

is

the

last

step

in

which

thesalesperson

follows

up

after

the

sale

toensure

customer

satisfaction

and

repeatbusinessThe

Personal

Selling

ProcessCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

30Personal

Selling

andManaging

Customer

RelationshipsPersonal

selling

is

transaction-orientedto

close

a

specific

sale

with

a

specificcustomer

The

long-term

goal

is

to

develop

amutually

profitable

relationshipSales

PromotionCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

31

Sales

promotion

refers

to

the

short-termincentives

to

encourage

purchases

orsales

of

a

product

or

serviceTypes

of

promotions

include:Consumer

promotionsTrade

promotionsSales

force

promotionsSales

PromotionCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

32Factors

in

the

Growth

of

SalesPromotions

Productmanagers

are

under

pressure

toincrease

current

salesCompanies

face

more

competitionCompeting

brands

offer

less

differentiation

Advertising

efficiency

has

declined

due

torising

costs,

clutter,

and

legal

constraints

Consumers

have

become

more

deal-orientedSales

PromotionCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

33Sales

Promotion

Objectives

Setting

sales

promotion

objectivesincludes

using:Consumer

promotionsTrade

promotionsSales

force

promotionsSales

PromotionMajor

Sales

Promotion

ToolsCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

34Sales

PromotionCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

35Major

Sales

Promotion

ToolsConsumer

Promotion

ToolsSamples

offer

a

trial

amount

of

a

productCoupons

are

certificates

that

give

buyers

asaving

when

they

purchase

specifiedproductsCash

refunds

are

similar

to

coupons

exceptthat

the

price

reduction

occurs

after

thepurchasePrice

packs

offer

consumers

savings

off

theregular

price

of

a

productSales

PromotionCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

36Major

Sales

Promotion

ToolsConsumer

Promotion

ToolsPremiums

are

goods

offered

either

for

freeor

at

low

priceAdvertising

specialties

are

useful

articlesimprinted

with

the

advertiser’s

name,logo,

or

message

that

are

given

as

gifts

toconsumersPoint-of-purchase

promotions

includedisplays

and

demonstrations

that

takeplace

at

the

point

of

salesSales

PromotionCopyright

©

2010

Pearson

Education,

Inc.Publishing

as

Prentice

HallChapter

16

-

slide

37Major

Sales

Promotion

ToolsConsumer

Promotion

Tools

Contests,

sweepstakes,

and

games

giveconsumers

thechanceto

win

something—such

ascash,

trips,

or

goods—by

luck

or

through

extraeffortContests

require

an

entry

by

a

consumer

Sweepstakes

requireconsumers

to

submit

theirnames

for

a

drawing

Games

present

consumers

with

something

thatmay

or

may

not

help

them

win

a

prizeEvent

Ma

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