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Chapter 12:Selling, Sales Promotion, and
Public Relations
The Sales Function
the sales function is responsible for selling products and services to customers, through the communication of information during customer interaction
it is a relatively high-cost form of promotion, often a firm’s largest single operating expense
there is more to a personal selling job than selling; often the job is to build a relationship; many sales people are now referred to as customer-services reps
personal selling is the most flexible promotional tool; can be tailored to the specific customer
Sales is Most Effective When…
the sales function is more likely to be dominant when: the market is concentrated geographicallyproduct value is not readily apparent the product has high unit value. is technically, or requires
much explanation the product must be tailored to a customer the sale involves a trade-in the product is at the introductory stage of its life cycle the firm has a small budget for advertising
Scope of the Sales Function there are many types of sales jobs retailing involves inside selling; these jobs may
involve proactive selling or reactive selling outside sales persons go to the customer; there is
usually some opportunity for creative selling and addressing customer needs
electronic selling through telemarketing is a relatively new development which combines with databases to better target customers
Figure 12-1 Scope of the Sales Function
The New Focus of Selling
“selling” may be a misleading term; often there is no selling involved – sales personnel are providing service and building relationships
because of their interpersonal contact with the customer, sales people influence the image of the firm
they provide a valuable service role , and ideally become the customer’s trusted partner
The Nature of Sales Jobs
many sales reps are now professional sales persons with complete responsibility for relations with their customers
there is often considerable opportunity for role conflict and role ambiguity
there is a wide variety of sales jobs from delivery drivers to creative sales engineers
the sales staff is the front line and represents the firm to its customers
Changing Patterns in Sales
the nature of the selling job is changing, reflecting changing market situations
many firms have organized sales teams others now offer their customers a coordinated
systems and solutions for their problems there is considerable emphasis today on the
development of relationships with customers technology has changed the way many firms sell,
relying on telemarketing and the Internet
Relationship Selling
high levels of trust are importantbuyer must demonstrate trust in the
salesperson as well as the selling organization trusted salespeople can retain the buyer’s
commitment even in the face of policies that may not be considered satisfactory
sales people have a major role in the management of customer relationships
The Sales Process many firms follow a predictable sales pattern prospecting involves the identification of prospects
from various sources qualifying the prospect determines the willingness
and capability to buy presenting the sales message (attract attention, hold
interest, stimulate desire, close the sale) there is often a need to serve customers after the
sale to ensure their satisfaction
Figure 12-2 The Personal Selling Process
Staffing/Operating a Sales Force
staffing is a critical sales-force decision: must ensure that staff have necessary qualifications
the firm needs a system to generate applicants recruitment often involves extensive screening extensive sales force training is often needed the sales force must be supervised and managed their performance has to be evaluated; compensation
systems must be put in place
Figure 12-3 Staffing and Operating a Sales Force
Evaluating Sales Performance
a system must exist to evaluate performance serves as the basis for training programs and
for determining appropriate rewards quantitative bases for performance review
include sales generated, number of orders, closing rate, number of calls made
qualitative bases include product knowledge, preparedness for calls, success in establishing relationships, appearance, and attitude
Sales Promotion sales promotions stimulate short-term sales through
non-advertising means; coupons, contests, samples, displays, premiums, trade shows
may be directed at end consumers (consumer promotions) or at intermediaries (trade promotions) or a firm’s sales force
sales promotions are short-term in orientation and tactical in achieving certain objectives
it may be easier to evaluate the effectiveness of sales promotions than it is for advertising
Public Relations
public relations is intended to develop and maintain a positive public image for a firm
objective is to maintain good relations with a number of “publics”; this may be achieved by generating positive publicity
publicity is usually considered to be a “news item” that appears about a specific company
positive publicity is achieved through press releases, press conferences, and events