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8/10/2019 38878032 Sales Presentations
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Chapter Objectives
Personal Selling and
Sales Promotion
CHAPT
ER
17
1
2
4 7
8
Describe the role of todays
salesperson.
Describe the four sales
channels.
Describe the major trends
in personal selling.
Identify and briefly
describe the three basic
sales tasks.
Outline the seven steps inthe sales process.
Identify the seven basic
functions of a sales
manager.
Identify the role of ethical
behavior in personal
selling.
Describe the role of salespromotion in the
promotional mix, and
identify the different
types of sales promotions.
5
3
6
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CHAPTER 17Personal Selling and Sales Promotion
Personal sellingInterpersonal influence process involving a sellers
promotional presentation conducted on a person-to-person basis with the
buyer. Sixteen million people in the U.S. are employed in sales.
Personal selling is the single largest marketing expense in many firms.
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CHAPTER 17Personal Selling and Sales Promotion
THE EVOLUTION OF PERSONAL SELLING
Salespeople are problem solvers who focus on meeting customers needsbefore, during, and after the sale.
Must be able to do the following:
Focus on customers needs and problems, and offer solutions.
Follow through with phone calls and other communications. Develop expertise about their industry and product.
Go the extra mile to fulfill customers needs beyond their
expectations.
Bureau of Labor Statistics predicts that jobs in sales will grow by 10percent over the next decade.
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CHAPTER 17Personal Selling and Sales Promotion
THE FOUR SALES CHANNELS
Channels all include both business-to-business anddirect-to-customer selling.
Over-the-counter sellingPersonal selling conducted
in retail and some wholesale locations in which customers
come to the sellers place of business.
Field sellingSales presentations made at prospective
customers locations on a face-to-face basis.
TelemarketingPromotional presentation involving the use of the
telephone on an outbound basis by salespeople or on an inbound basis by
customers who initiate calls to obtain information and place orders. Inside sellingSelling by phone, mail, and electronic commerce.
Firms generally blend sales channels in their sales organization.
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CHAPTER 17Personal Selling and Sales Promotion
TRENDS IN PERSONAL SELLING
Companies rely on three major personal selling approachesto meet customer needs.
Relationship sellingRegular contacts between sales
representatives and customers over an extended period to
establish a sustained buyer-seller relationship.
Consultative sellingMeeting customer needs by listening
to them, understanding their problems, paying attention to
details, and following through after the sale.
Team sellingSelling situation in which several sales associates or other
members of the organization are recruited to help the lead salesrepresentative reach all those who influence the purchase decision.
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CHAPTER 17Personal Selling and Sales Promotion
SALES TASKS
Ensuring that buyers purchases are in his or her best interest aids thedevelopment of long-term relationships.
Selling involves three basic tasks:
Order processingSelling, mostly at the wholesale and retail levels, that
involves identifying customer needs, pointing them out to customers, andcompleting orders.
Creative sellingPersonal selling that involves situations in which a
considerable degree of analytical decision making on the buyers part results
in the need for skillful proposals of solutions for the customers needs.
Missionary sellingIndirect type of selling in which specialized
salespeople promote the firms goodwill among indirect customers, often by
helping customers use products.
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CHAPTER 17Personal Selling and Sales Promotion
CREATIVE SELLING
Creative sellingPersonal selling that involves situations in
which a considerable degree of analytical decision making on
the buyers part results in the need for skillful proposals of
solutions for the customers needs.
Generally used to develop new business with either new
customers of new products for existing customers.
MISSIONARY SELLING
Missionary sellingIndirect type of selling in which
specialized salespeople promote the firms goodwill among
indirect customers, often by helping customers use products.Example: Pharmaceutical companies that use free samples,
educational seminars to court doctors.
May involve both field selling and telemarketing.
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CHAPTER 17Personal Selling and Sales Promotion
THE SALES PROCESS
Steps follow the AIDA concept.
Attention
Interest
Desire
Action
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CHAPTER 17Personal Selling and Sales Promotion
PROSPECTING AND QUALIFYING
Prospectingidentifying potential customers.
Qualifyingdetermining that the prospect really is a potential customer.
APPROACH
Initial contact with prospective customer.
Use precall planning research to identify how your products might
best meet customers needs.
PRESENTATION
Conveying marketing message to the customer.
Features-benefits framework focuses on the good or service in terms that
are meaningful to the buyer.
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CHAPTER 17Personal Selling and Sales Promotion
DEMONSTRATION
Buyer has a chance to try a product or see how it works.
HANDLING OBJECTIONS
Expressions of resistance, such as stalling or indecision, by the prospect are
an opportunity to reassure the buyer or offer suitable alternatives.
CLOSING
Point at which salesperson asks the prospect for an order.
Let buyer know you are ready to be of service in the future.
FOLLOW-UPSuccessful sales people turn todays customers into tomorrows by
reinforcing the purchase decision.
Ensure that customer service needs are met.
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CHAPTER 17Personal Selling and Sales Promotion
MANAGING THE SALES EFFORT
Sales managers mix sales and management skills to manage the overalldirection and control of the personal selling effort.
RECRUITMENT AND SELECTION
Important because of company investment in the hiring process and the
potential damage to customer relationships and overall performance.
TRAINING
Primary methods are on-the-job training, individual instruction, how-to
classes, and external seminars; often ongoing for experienced salespeople.
ORGANIZATION
National accounts organizationassigning senior sales personnel or sales
teams to major accounts in each market.
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C S S
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CHAPTER 17Personal Selling and Sales Promotion
EVALUATION AND CONTROL
Managers must set standards and choose the best methods for measuring
sales performance.
Sales quotasspecified sales or profit targets that the firm expects
salespeople to achieve.
Other measures include customer satisfaction, profit contribution, share of
product-category sales, and customer retention.
Evaluations should motivate improved performance.
CHAPTER 17 P l S lli d S l P ti
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CHAPTER 17Personal Selling and Sales Promotion
ETHICAL ISSUES IN SALES
Long-term success requires strong code of ethics.
Honesty and ethical behavior is encouraged when:
Employees understand what is expected of them.
Open communication is encouraged.
Managers lead by example.
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CHAPTER 17 P l S lli d S l P ti
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CHAPTER 17Personal Selling and Sales Promotion
Refunds or rebateshelp packaged-goods companies increase purchase
rates, promote multiple purchases, and reward product users.
Samples, bonus packs, and premiumsa try it, youll like it approach.
Contestsrequire entrants to complete a task such as solving a puzzle or
answering questions in a trivia quiz.
Sweepstakeschoose winners by chance; no product purchase is
necessary.
Specialty Advertisingsales promotion technique that places the
advertisers name, address, and advertising message on useful articles that
are then distributed to target consumers.
CHAPTER 17 P l S lli d S l P ti
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CHAPTER 17Personal Selling and Sales Promotion
TRADE-ORIENTED PROMOTIONS
Sales promotion that appeals to marketing intermediaries rather than to
final consumers.
Accounts for half of typical firms promotion budget.
Trade allowancesspecial financial incentives offered to wholesalers and
retailers that purchase or promote specific products.
Point-of-purchase advertisingdisplay or other promotion located near the
site of the actual buying decision.
Trade showsvendors who serve the industries display and demonstrate
their products for members.
Dealer incentives, contests, and training programs.