Chapter 19 Overview Personal selling oral communication with prospective buyers by paid representatives for the purpose of making sales Sales Promotion paid marketing communication activities that stimulate consumers and dealers The Scope and Importance of Personal Selling Selling is stressed when orders are large consumers are concentrated items are expensive and service is required B to b customers expect a lot of personal contact Selling costs are than advertising costs o Ways to decrease costs Effectively route sales people Telemarketing Computerization The Characteristics of personal selling Positives individual attention flexible can apply as much persuasion as needed more concentrated so less waste feedback is immediate Negatives ineffective for generating awareness few accounts discouraged by some people high costs poor image for final consumers Personal selling takes place during the purchase stage Buyer and seller dyad the two way flow of communication between both parties o Relationship selling long term customer bonds are developed Developing a Personal Selling Plan Setting objectives demand or image oriented o Main goal persuasion Assigning Responsibility o A manager must oversee selling functions Establishing a Budget o Sales expense budget allots selling costs for a specific amount of time Flexible and tied to sales forecasts o Large budget for geographically dispersed people Determining the types of Sales Positions o Order taker processes routine orders and reorders a lot of clerical duties Ad low comp little training selling non Dis improper choices personal turnover high enthuse limited o Order getter obtains leads provides information persuades customers and closes sales Training needed comp high o Support personnel supplement a sales force Missionary gives out info Engineer accompanies an order getter if a very technical or complex item is involved Service deals with customers after sales Selecting a Sales Technique o Canned sales presentation a memorized repetitive presentation give to all customers interested in a given item Provides info for inexperienced people structured o Need satisfaction approach a high level selling method based on the principle that each customer had different attributes and wants and therefore the sales presentation should be adapted to the individual consumer o Canned inexpensive routine items that are heavily advertised o Need expensive complex items that have moderate advertising Outlining Sales Tasks o Prospecting creates customer leads depends on referrals o Approaching customers pre approach and greeting o Determining customer wants o Sales presentation converts an undecided customer verbal o Answering questions o Closing clinches a sale Applying the Plan o Sales management tasks range from employee selection to supervision Should be used in applying a personal selling plan Employee selection Territory size and salesperson allocation Territory geographic area customers products assigned to a sales person Compensation Supervision Straight salary Straight commission plan Combination sales compensation plan Motivated sales personnel Performance measured Non selling tasks must be completed Modify behavior when necessary The Scope and Importance of Sales Promotion Increase due to competitive edge various forms of sales promotions are more acceptable rapid results with short run profits seeking promotions before buying Advertising and personal selling have become more expensive relative to sales promotion The characteristics of Sales promotion Sales promotion lures customers maintains loyalty creates excitement is often keyed to patronage and appeals to channel members Sales promotion may hurt image cause consumers to wait for special offers and shift the focus from the product Developing a Sales Promotion Plan Setting objectives usually demand oriented o Channel member gaining distribution shelf space dealer enthusiasm raising sales o Consumer brand awareness product trials hiking average purchases impulse sales Assigning responsibility o Advertising manager coupons customer contests calendars mass promotions o Sales trade shows cooperative promotions special events demonstrations Outlining the Overall Plan o Sales promotion orientations refers to its focus and its theme o Sales promotion conditions eligibility requirements o The use of shared promotions should be desired Selecting the type of sales promotion Coordinating the plan o Advertising and sales promotion plans should be integrated o Sales force should be notified of all promotions well in advance and trained to implement them o Publicity should be generated o Consistent with channel members activities Evaluating success and failure
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