Slide 1The Nature of Personal SellingThe Role of the Sales ForceThe Role of the Sales ForceMajor Steps in Sales Force ManagementSales Force StructureInside Sales ForceTeam SellingRecruiting SalespeopleSales Force Training GoalsCompensating SalespeopleSupervising SalespeopleHow Salespeople Spend Their TimeSupervising SalespeopleMajor Steps in Effective SellingThe Personal Selling ProcessThe Personal Selling ProcessSales Promotion DefinedRapid Growth of Sales PromotionSales Promotion ObjectivesRemember this slide??Consumer Sales Promotion ToolsConsumer Sales Promotion ToolsTrade PromotionCommunicating Customer Value: Personal Selling and Sales PromotionChapter 13The Nature of Personal SellingProfessional salespeople are well-educated, well-trained professionals who work to build and maintain long-term customer relationships.The term salesperson covers a wide range of positions:Order taker: Order getter: For many firms, particularly those in business-to-business contexts, personal selling is the most important element of the marketing communication mix.The Role of the Sales ForcePersonal selling is a paid, personal form of promotion.Involves two-way personal communication between salespeople and individual customers.Salespeople:Probe customers to learn about problems  adjust marketing offers to fit special needs  The Role of the Sales ForceSales Force serves as critical link between company and its customersThey represent the company to the customersThey represent the customers to the companyGoal =Customer satisfaction and Company ProfitMajor Steps in Sales Force ManagementSales Force StructureTerritorial: Salesperson assigned to exclusive area and sells full line of productsProduct: sales force sells only certain product lines Customer: sales force organizes along customer or industry lines Complex: Combination of several types of structuresInside Sales ForceConduct business from their offices via telephone or visits from prospective buyers.Includes:Technical support people Sales assistants TelemarketersDuPont: experienced telemarketers sell complex chemicals by product from their telecom centerTeam SellingUsed to service large, complex accounts.Can include experts from different areas of selling firm.Pitfalls:Can confuse or overwhelm customers Some people have trouble working in teams Hard to evaluate individual contributions.Recruiting SalespeopleRecommendations from current sales forceEmployment agencies  classified ads Web searches Are you on LinkedIn?College recruiting Recruit from other companiescustomers CompetitorsSales Force Training GoalsLearn about and identify with the company. Learn about the company’s productsLearn customers’ and competitors’ characteristics. Learn how to make effective presentations Learn field procedures and responsibilities.Compensating SalespeopleFixed amount:  Salary Variable amount: commissions or bounusesMOST IMPORTANT ISSUE HERE: ALIGN INCENTIVES WITH ORGANIZATIONAL GOALSSupervising SalespeopleDirecting SalespeopleHelp them identify customers and set call norms.Specify time to be spent prospectingAnnual call planTime-and-duty analysisSales force automation systemsHow Salespeople Spend Their TimeIf you’re a sales manager: Which activities do you want to maximize? Which do you want to minimize?Supervising SalespeopleMotivating SalespeopleOrganizational climate Sales quotas Positive incentives:Sales meetingsSales contests Recognition and honorsCash awards, trips, profit sharingMajor Steps in Effective SellingThe Personal Selling ProcessProspectingThe salesperson identifies qualified potential customersPre-approachThe salesperson learns as much as possible about a prospective customer before making a sales callApproachThe salesperson meets the customer for the first timePresentationThe salesperson listens to customer needs, and tells the how his/her product can solve those customer needs.The Personal Selling ProcessHandling ObjectionsThe salesperson seeks out, clarifies, and overcomes customer objections to buyingClosingThe salesperson asks the customer for commitmentFollow-upThe salesperson follows up after the sale to ensure customer satisfaction and repeat businessSales Promotion DefinedShort-term incentives to encourage the purchase or sale of a product or service.Sales promotions can be targeted toward consumers, businesses, channel members, or members of the firm’s own sales force.The idea is to generate IMMEDIATE SALES!Rapid Growth of Sales PromotionRapid growth in the industry has been achieved because:Product managers are facing more pressure to increase their current salesCompanies face more competition Advertising efficiency has declined Customers have become more deal orientedSales Promotion ObjectivesConsumer Promotions: increase short-term sales or help build long-term market share.Trade Promotions: get retailers to:carry new items and more inventoryadvertise productsgive products more shelf spacebuy aheadSales Force: getting more sales support.Remember this slide??SampleSampleCouponsCouponsCash Refunds“Rebates”Cash Refunds“Rebates”Price Packs“Cents-Off Deals”Price Packs“Cents-Off Deals”PremiumsPremiumsAdvertising SpecialtiesAdvertising SpecialtiesOffers a trial amount of a productOffers a trial amount of a productSavings when purchasing specified productsSavings when purchasing specified productsRefund of part of the purchase price by mailRefund of part of the purchase price by mailReduced prices marked on the label or package by producerReduced prices marked on the label or package by producerGoods offered free or low cost as an incentive to buy a productGoods offered free or low cost as an incentive to buy a productArticles imprinted with an advertiser’s name given as giftsArticles imprinted with an advertiser’s name given as giftsConsumer Sales Promotion ToolsPatronage RewardsPatronage RewardsPoint-of-Purchase PromotionsPoint-of-Purchase PromotionsContestContestSweepstakesSweepstakesGamesGamesCash or other award offered for regular use of a product or serviceCash or other award offered for regular use of a product or serviceDisplays or demonstrations at the point of purchase or saleDisplays or demonstrations at the point of purchase or saleConsumers submit an entry to be judged by a panelConsumers