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Chapter 20 Personal Selling And Sales Promotion0. Objectives. Understand purposes of personal selling Describe steps in personal selling process Identify types of sales force personnel Recognize types of personal selling Understand sales management decisions and activities - PowerPoint PPT Presentation
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Chapter 20 Personal Selling
And Sales Promotion0
Copyright © Houghton Mifflin Company. All rights reserved.Microsoft clipart and photos reprinted with permission from Microsoft Corp. 20 | 3
Objectives
• Understand purposes of personal selling• Describe steps in personal selling process• Identify types of sales force personnel• Recognize types of personal selling• Understand sales management decisions and
activities• Explain sales promotion activities and how used• Explore specific consumer/trade sales promotion
methods
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Elements of the Personal Selling Process
• Prospecting
• Preapproach
• Approach
• Making the presentation
• Overcoming objections
• Closing the sale
• Following up
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General Steps in the Personal Selling Process
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Prospect Must Be:
• Able
• Willing
• Authorized
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Many sales teams use technology like WebEx to enhance presentations
Reprinted with permission of WebEx Communications, Inc.
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Advantages/DisadvantagesOf Personal Selling
• Freedom to adjust message to customer
• Most precise promotion method
• Most expensive promotion method
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Types Of Salespeople
• Order Getter– Current-Customer– New-Business
• Order Taker– Inside– Field
• Support Personnel– Missionary– Trade– Technical
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Selected Types Of Selling
• Team – experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process
• Relationship – mutually beneficial long-term associations with a customer through regular communications
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Managing The Sales Force
• Establish Objectives• Determine Size• Recruit/Select• Train• Compensate
– Salary– Commission– Combination
• Motivate• Manage Territories
– Create– Route/Schedule
• Control/Evaluate
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Recruiting Steps
Prepare Job Prepare Job DescriptionDescription
Analyze Analyze Successful Successful SalespeopleSalespeople
Develop Develop RequirementsRequirements
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Compensating Salespeople
• Straight salary compensation plan – paid a specified amount despite effort
• Straight commission compensation plan– compensated solely by sales
• Combination compensation plan
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Average Salaries for Sales Representatives
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Sales ForceCompensation Methods
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Managing Sales Territories
• Creating sales territories– Measurable sales potential– Geographic size
• Routing and scheduling salespeople– Geographic size/shape– Number of customers
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Controlling and Evaluating Sales Force Performance
• Information for managers– Call reports– Customer feedback– Invoices
• Set sales objectives/performance indicators– Calls per day and cost per call– Average sales per customer and gross profit per
customer– Actual sales vs. sales potential– Number of new customer orders
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Nature of Sales Promotion
• Sales promotion – an activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it
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Consumer Sales Promotion Methods
Sales promotion techniques that encourage consumers to patronize specific stores or try particular products
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Coupons
A written price reduction used to encourage consumers to buy a specific product
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Effect Of IncomeOn Coupon Usage
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Effect Of AgeOn Coupon Usage
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Coupon Advantages
• Effective for brand awareness
• Users
– Reward present
– Win back former
– Encourage quantity purchase
• Traceable to target market
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Coupon Drawbacks
• Fraud
• Misredemption
• Expensive for manufacturers
• Losing value
• Brand loyalty diminished
• Not enough of item in stock
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Types Of Coupons
• Cents-Off
• Money Refunds
• Rebates
• Frequent-User Incentives
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Other Promotional Methods
• Point-of-Purchase Materials
• Demonstrations
• Free Sample
• Premiums
• Consumer Contests
• Consumer Games
• Sweepstakes
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Trade SalesPromotion Methods
Intended to persuade wholesalers and retailers to carry a producer’s productsand market them more aggressively
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Methods
• Trade Allowances– Buying– Buy-back– Scan-back– Merchandise
• Cooperative Advertising and Dealer Listing• Free Merchandise and Gifts• Premium (Push) Money• Sales Contests