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chapter 16 Personal Selling & sales Promotion.pptx

personal selling play vital role in promoting the organizational products. The benefits of personal selling are two fold; organization can get feedback how their customer perceive the benefit of the product and service. they also get suggestion what customer wants in rpoduct

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developed by Kiran Liaquat Personal Selling & Sales Promotion Chapter 16
Personal Selling and Sales Promotion • The Nature of Personal Selling • The Role of the Sales Force • Managing the Sales Force • The Personal Selling Process • Sales Promotion Topic Outline
Personal Selling Personal selling: is the interpersonal part of the promotion mix and can include: • Face-to-face communication • Telephone communication • Video or Web conferencing The Role of the Sales Force
Personal Selling Salespeople: are an effective link between the company and its customers to produce customer value and company profit by: • Representing the company to customers • Representing customers to the company • Working closely with marketing The Nature of Personal Selling
developed by Kiran Liaquat
Managing the Sales Force Territorial sales force structure Product sales force structure Customer sales force structure Complex sales force structure Designing Sales Force Structure
Managing the Sales Force  Territorial sales force structure: refers to a structure where each salesperson is assigned an exclusive geographic area and sells the company’s full line of products and services to all customers in that territory • Defines salesperson’s job • Fixes accountability • Lowers sales expenses • Improves relationship building and selling effectiveness Sales Force Structure
Managing the Sales Force Product sales force structure refers to a structure where each salesperson sells along product lines • Improves product knowledge • Can lead to territorial conflicts Sales Force Structure
Managing the Sales Force Product sales force: structure refers to a structure where each salesperson sells along product lines • Improves product knowledge • Can lead to territorial conflicts Customer sales force structure: refers to a structure where each salesperson sells along customer or industry lines • Improves customer relationships Sales Force Structure
Managing the Sales Force Complex sales force: structure refers to a structure where a wide variety of products is sold to many types of customers over a broad geographic area and combines several types of sales force structures Sales Force Structure
Managing the Sales Force  Salespeople: are one of the company’s most productive and expensive assets. • Increases in sales force size can increase sales and costs  Workload approach: to sales forces size refers to grouping accounts into different classes to determine the number of salespeople needed Sales Force Size
Managing the Sales Force  Outside salespeople: call on customers in the field  Inside salespeople: conduct business from their offices and often provide support for the outside salespeople – Technical sales support people – Sales assistants  Team selling: is used to service large, complex accounts Other Sales Force Strategy and Structure Issues
Managing the Sales Force • Careful selection and training increases sales performance • Poor selection • Increases recruiting and training costs – Lost sales – Disrupts customer relationships Recruiting and Selecting Salespeople Issues in Recruiting and Selecting
developed by Kiran Liaquat Managing the Sales Force • Training Salespeople: Goals of training program include: – Sales people need to know about the Customer and how to build relationships with them. – It must also teach them how to Selling effectively and train them in the basis of selling process. – Effective training program teach about the company’s objectives, products, and strategies of major competitors. • Training online can instead of on-site can cut travel and other training cost.
Managing the Sales Force Fixed amounts Variable amounts Expenses Fringe benefits Salesperson compensation based on:
Managing the Sales Force • The goal of supervision is to help salespeople work smart by doing the right things in the right ways • The goal of motivation is to encourage salespeople to work hard and energetically toward sales force goals – One tool is the weekly, monthly and annual ‘Call Plan’- that shows which customers & prospects to call on and which activity to carry out. – Time and Duty Analysis: time spent selling, the salesperson spends time travelling, waiting, taking breaks, and doing administrative chores Supervising and Motivating Salespeople
Managing the Sales Force Major tool to support salespeople Selling and the Internet Training Sales meetings Live sales presentations Servicing accounts
Managing the Sales Force • Sales morale and performance can be increased through: – Organizational climate: describes the feeling that salespeople have about their opportunities, value & reward for good performance. – Sales quotas: a standard that states the amount a salesperson should sell and how sales should be divided among the company’s products. – Positive incentives: company use this to increase the sales force efforts. – Sales contests: used by company to spur the sales force to make a selling effort above and beyond what is normally expected. Supervising and Motivating Salespeople
Managing the Sales Force Evaluating Salespeople and Sales-Force Performance • Management get information about its salespeople in several ways – Sales reports: including weekly or monthly work plans long term territory marketing plans. – Salespeople also write up their completed activities on call reports – Expense report: management get information by that for which they are partly or wholly reimbursed.
The Personal Selling Process • The goal of the personal selling process is to get new customers and obtain orders from them. • Selling Process: the steps that salespeople follow when selling, which include prospecting & qualifying, pre-approach, approach, presentation & demonstration, handling objections, closing and fellow-up
The Personal Selling Process  Prospecting identifies qualified potential customers through referrals from: • Customers • Suppliers • Dealers • Internet (This approach also known as cold calling). Steps in the Personal Selling Process
The Personal Selling Process  Qualifying: is identifying good customers and screening out poor ones by looking at: • Financial ability • Volume of business • Needs • Location • Growth potential Steps in the Personal Selling Process
The Personal Selling Process  Pre-approach: is the process of learning as much as possible about a prospect, including needs, who is involved in the buying, and the characteristics and styles of the buyers Steps in the Personal Selling Process Objectives • Qualify the prospect • Gather information • Make an immediate sale Approaches • Personal visit • Phone call • Letter
The Personal Selling Process  Approach: is the process where the salesperson meets and greets the buyer and gets the relationship off to a good start and involves the salesperson’s: • Appearance • Opening lines • Follow-up remarks Steps in the Personal Selling Process
The Personal Selling Process • Opening lines should be positive, build goodwill, and be followed by key questions to learn about the customer’s needs or showing a display or sample to attract the buyer’s attention and curiosity • The most important attribute is for the salesperson to: listen Steps in the Personal Selling Process
The Personal Selling Process  Presentation: is when the salesperson tells the product story to the buyer, presenting customer benefits and showing how the product solves the customer’s problems • customer-solution approach: Buyers want solutions and salespeople should listen and respond with the right products and services to solve customer problems to fit better with today’s relationship marketing. Steps in the Personal Selling Process
The Personal Selling Process Pushy Late Deceitful Disorganized Unprepared Steps in the Personal Selling Process Good listeners Empathetic Honest Dependable Thorough Follow-up types Bad Traits Good traits
The Personal Selling Process  Handling objections: is the process where salespeople resolve problems that are logical, psychological, or unspoken  Closing is the process where salespeople should recognize signals from the buyer—including physical actions, comments, and questions—to close the sale  Follow-up is the last step in which the salesperson follows up after the sale to ensure customer satisfaction and repeat business Steps in the Personal Selling Process
The Personal Selling Process • Personal selling is transaction-oriented to close a specific sale with a specific customer • The long-term goal is to develop a mutually profitable relationship • Companies want their salespeople to practice value selling– demonstrating and delivering customer value and capturing a return on that value that is fair for both the customer and the company. Personal Selling and Managing Customer Relationships
Sales Promotion • Sales promotion: refers to the short-term incentives to encourage purchases or sales of a product or service • Types of promotions include: – Consumer promotions – Trade promotions – Sales force promotions
Sales Promotion • Product managers are under pressure to increase current sales • Companies face more competition • Competing brands offer less differentiation • Advertising efficiency has declined due to rising costs, clutter, and legal constraints • Consumers have become more deal-oriented Factors in the Growth of Sales Promotions
Sales Promotion • Setting sales promotion objectives includes using: – Consumer promotions: to urge short term buying or enhance customer brand involvement. – Trade promotions: it involve getting retailers to carry new items and more inventory buy ahead or promote company’s product and give them more shelf space – Sales force promotions: getting more sales force support for current or new product. Sales Promotion Objectives
Sales Promotion Samples Coupons Cash refunds Price packs Premiums Advertising specialties Patronage rewards Point-of- purchase displays Demonstrations Contests Sweepstakes Games Major Sales Promotion Tools
Sales Promotion • Samples offer a trial amount of a product • Coupons are certificates that give buyers a saving when they purchase specified products • Cash refunds are similar to coupons except that the price reduction occurs after the purchase • Price packs offer consumers savings off the regular price of a product Major Sales Promotion Tools Consumer Promotion Tools
Sales Promotion • Premiums are goods offered either for free or at low price • Advertising specialties are useful articles imprinted with the advertiser’s name, logo, or message that are given as gifts to consumers • Point-of-purchase promotions include displays and demonstrations that take place at the point of sales
Sales Promotion • Contests, sweepstakes, and games give consumers the chance to win something—such as cash, trips, or goods —by luck or through extra effort • Contests require an entry by a consumer • Sweepstakes require consumers to submit their names for a drawing • Games present consumers with something that may or may not help them win a prize • Event Marketing: creating a brand marketing event or serving as a sole or participating sponsor of events created by others. Major Sales Promotion Tools Consumer Promotion Tools
Sales Promotion Major Sales Promotion Tools Trade Promotion Tools • Discount: off the list price on each case purchased during a stated period of time (also called a price- off, off-invoice, or off-list) • Allowance: (usually so much off per case) in return for the retailer’s agreement to feature manufacturer’s product in some way. • Manufacturer may offer free goods • Specialty advertising items: that carry the company’s name such as pens, pencils, calendars etc.
Sales Promotion  Business Promotion: sales promotion tools used to generate business leads, stimulate purchase reward customers and motivate salespeople. • Conventions and trade shows are effective to reach many customers not reached with the regular sales force • Sales contests are effective in motivating salespeople or dealers to increase performance over a given period Major Sales Promotion Tools Business Promotion
Sales Promotion • Size of the incentive • Conditions for participation • Promote and distribute the program • Length of the program • Evaluation of the program Developing the Sales Promotion Program