PoM 6th ed. chapter 16

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Chapter 16

Personal selling and sales promotion

its good and good for youSlide 16.#Kotler et al., Principles of Marketing, 6th edition Pearson Education Limited 2013

Kotler et al., Principles of Marketing, 6th edition Pearson Education Limited 2013Slide 16.#

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Personal selling and sales promotionPersonal sellingManaging the sales forceThe personal selling processSales promotionTopic outline


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Personal sellingPersonal selling is the interpersonal part of the promotion mix and can include: Face-to-face communicationTelephone communicationVideo or web conferencing.Personal selling


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Personal selling (Continued)Salespeople are an effective link between the company and its customers to produce customer value and company profit by:Representing the company to customersRepresenting customers to the companyWorking closely with marketing.

The nature of personal selling

Kotler et al., Principles of Marketing, 6th edition Pearson Education Limited 2013Slide 16.#Notes to Instructor:Examples of people who do the selling include:Salespeople Sales representativesDistrict managersAccount executivesSales engineersAgentsAccount development reps.

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Managing the sales forceSales force management is the analysis, planning, implementation and control of sales force activities.

Figure 16.1 Major steps in sales force management


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Managing the sales force (Continued)Designing sales force structure

Kotler et al., Principles of Marketing, 6th edition Pearson Education Limited 2013Slide 16.#Note to Instructor:These are the four ways that sales responsibilities can be divided.

Discussion QuestionHow will a company decide which structure is best for them?The decision is based on how many product lines, how many industries, the size of the sales force and the number of buyers.6

Managing the sales force (Continued)Territorial sales force structure refers to a structure where each salesperson is assigned an exclusive geographic area and sells the companys full line of products and services to all customers in that territory.Defines salespersons job Fixes accountabilityLowers sales expensesImproves relationship building and selling effectiveness.Sales force structure


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Managing the sales force (Continued)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


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Managing the sales force (Continued)Customer sales force structure refers to a structure where each salesperson sells along customer or industry lines.Improves customer relationships.Sales force structure


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Managing the sales force (Continued)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


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Managing the sales force (Continued)Salespeople are one of the companys 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


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Managing the sales force (Continued)Outside salespeople call on customers in the field.Inside salespeople conduct business from their offices and often provide support for the outside salespeopleTechnical sales support peopleSales assistants.Team selling is used to service large, complex accounts.Other sales force strategy and structure issues

Kotler et al., Principles of Marketing, 6th edition Pearson Education Limited 2013Slide 16.#Notes to Instructor:Challenges of team selling include:Confusing and overwhelming customers used to working with one salesperson.Salespeople used to working alone can have difficulties working with and trusting teams.Evaluating individual contributions can lead to compensation issues.

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Careful selection and training increases sales performance.Poor selection.Increases recruiting and training costs Lost salesDisrupts customer relationships.Recruiting and selecting salespeopleIssues in recruiting and selecting

Managing the sales force (Continued)


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Managing the sales force (Continued)Salesperson compensation based on


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Managing the sales force (Continued)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.Supervising and motivating salespeople


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Managing the sales force (Continued)How salespeople spend their time?

Figure 16.2 How salespeople spend their timeSource: Proudfoot Consulting.Data used with permission.


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Managing the sales force (Continued)Major tool to support salespeople

Selling and the internet


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Managing the sales force (Continued)Sales morale and performance can be increased through:Organisational climateSales quotasPositive incentivesSupervising and motivating salespeople


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Managing the sales force (Continued)Evaluating salespeople and sales force performance


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The personal selling processThe goal of the personal selling process is to get new customers and obtain orders from them.

Figure 16.3 steps in the selling process


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The personal selling process (Continued)Prospecting identifies qualified potential customers through referrals from:CustomersSuppliersDealersInternet

Steps in the personal selling process


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The personal selling process (Continued)Qualifying is identifying good customers and screening out poor ones by looking at:Financial abilityVolume of businessNeedsLocationGrowth potential



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The personal selling process (Continued)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

Kotler et al., Principles of Marketing, 6th edition Pearson Education Limited 2013Slide 16.#Notes to Instructor:In the pre-approach stage, the salesperson sets call objectives and the best approach.

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The personal selling process (Continued)Approaching is the process where the salesperson meets the customer for the first time. Important elements are:AppearanceOpening linesFollow-up remarksSteps in the personal selling process


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The personal selling process (Continued)Opening lines should be positive, build goodwill and be followed by key questions to learn about the customers needs or showing a display or sample to attract the buyers attention and curiosity.The most important task of a salesperson is to listen.



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The personal selling process (Continued)Presenting is when the salesperson tells the value story to the buyers, showing how the companys offer solves the customers problems.Steps in the personal selling process


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The personal selling process (Continued)Steps in the personal selling process

Bad TraitsGood traits


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The personal selling process (Continued)Handling objections is the process where salespeople resolve problems that are logical, psychological or unspoken.Steps in the personal selling process

Kotler et al., Principles of Marketing, 6th edition Pearson Education Limited 2013Slide 16.#Notes to Instructor:When handling objections from buyers, salespeople should:Be positiveSeek out hidden objectionsAsk the buyer to clarify any objectionsTake objections as opportunities to provide more informationTurn objections into reasons for buying.

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The personal selling process (Continued)Closing is the process where salespeople should recognise signals from the buyerincluding physical actions, comments and questionsto close the sale.Steps in the personal selling process

Kotler et al., Principles of Marketing, 6th edition Pearson Education Limited 2013Slide 16.#Discussion QuestionHow does a salesperson can close a sale?Closing techniques can include:Asking for the orderReviewing points of agreementOffering to help write up the orderAsking if the buyer wants this model or another oneMaking note that the buyer will lose out if the order is not placed nowOffering incentives to buy, including lower price or additional quantity

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The personal selling process (Continued)Following-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


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The personal selling process (Continued)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.Personal selling and managing customer relationships


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Sales promotionSales promotion refers to the short-term incentives to encourage purchases or sales of a product or a service:Consumer promotionsTrade promotionsSales force promotions


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Sales promotion (Continued)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.Rapid growth of sales promotions


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Sales promotion (Continued)Setting sales promotion objectives includes using:Consumer promotions Trade promotions Sales force promotionsSales promotion objectives

Kotler et al., Principles of Marketing, 6th edition Pearson Education Limited 2013Slide 16.#Notes to Instructor:Consumer promotion objectives:Urge short-term customer buyingEnhance long-term customer relationshipsTrade promotions urge retailers to:Carry new items or more inventoryBuy in advanceAdvertise company productsGet more shelf spaceSales force objectives include getting:More sales force support for new or current productsSalespeople to sign up new accounts.

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Sales promotion (Continued)Major sales promotion tools


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Sales promotion (Continued)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


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Sales promotion (Continued)Premiums are goods offered either for free or at a low price.Advertising specialities are useful articles imprinted with the advertisers 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.Major sales promotion tools Consumer promotion tools


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Sales promotion (Continued)Contests, sweepstakes and games give consumers the chance to win somethingsuch as cash, trips or goodsby 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.Major sales promotion tools Consumer promotion tools


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Sales promotion (Continued)Major sales promotion tools Trade promotion tools

Kotler et al., Principles of Marketing, 6th edition Pearson Education Limited 2013Slide 16.#Notes to Instructor:Trade promotion tools persuade resellers to:Carry a brandGive the brand more shelf spacePromote the brand in advertisingPush the brand to consumers.

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Sales promotion (Continued)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 tools

Kotler et al., Principles of Marketing, 6th edition Pearson Education Limited 2013Slide 16.#Notes to Instructor:Business promotion tools are used to:Generate leadsStimulate purchasesReward customersMotivate salespeople.40

Sales promotion (Continued)Size of the incentiveConditions for participationPromote and distribute the programLength of the programEvaluation of the programDeveloping the sales promotion program


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