16Personal Selling/sales

Promotions

Personal Sellinginterpersonal promotional process involving a seller’s person-to-person presentation to a prospective buyer.

Characteristics of Personal Selling

Communication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message Flexibility

Personal SellingPersonal Selling

Direct and face-to-face HighMuchImmediateTwo-wayYesYesSlow Tailored to prospect

Importance: almost every company can benefit from personal selling10% of workforce (how many have? How many

would like to?)Often largest operating expense (up or out; car

dealers)Customer contact (info & customer impressions)

Intro to Personal Selling

Sales management: decisionsSales force

# (of salespeople; big issues with commissions, customers and turnover)

Compensation Straight salary: most security, control, and simplicity Straight commission (most incentive)

o Direct: SalaryIndirect: part of firm earnings

CompensationAlign incentive with firm interest (Sears)Combination: most popular (some security and incentives

Supervision/Training

Who to serve?Sales territory: geographic area; clear

responsibility (overlap; lead in another)Major accounts: special treatment for large

(fleet sales for cars)

Selling techiquesSelling techniques

Customers ≠ (80-20 rule)3 sales presentations

Prepared: more talk, canned leads to trial close, low skill (telemarketing)

Consultative: listen, less talk, help solve problems, customers differ, high skill

Selling formula: start prepared then steps outlined

Job of Personal Selling (1)Duties:

Order getting: without order getters, many of the products we now rely on – ranging from mutual funds to air conditioners – might have died in the market introduction stageSeek new clientele with sales presentationProspecting: follow all leads (allocate time on

potential) – insurance, graduate

Job of Personal Selling (2)Duties (cont…)

Order takingServe current customers and complete routine salesRegular route and customersLow aggression and pressure: pejorative

Job of Personal Selling (3)Duties (cont…)

Supporting salespeople: no selling, help order getters & order takersMissionary: entry level

Goodwill, stimulate demand for productsTasks: training, coop ads, sales promotion (increase

sales 2-3x)Technical specialists: often after o.g. & o.t. visit

Scientists and engineersProvide details on complex processes (installation,

maintenance etc.)May mix three jobs (retraining people)

Sales Promotion

ConsumerSales Promotion

Trade Sales Promotion

Sales PromotionSales PromotionTargetsTargets

Tools for Consumer Sales Promotion

Coupons and Rebates

Premiums

Loyalty Marketing Programs

Contests & Sweepstakes

Sampling

Point-of-Purchase Promotion

Popular ToolsPopular Toolsforfor

Consumer SalesConsumer SalesPromotionPromotion

Sales Promotion Methods for Consumers

Coupons Discounts on the purchase price of a good or service

Sales Promotion Methods for Consumers

Premiums – Items given free or at a reduced cost

Sales Promotion Methods for Consumers

Loyalty ProgramsReward regular customers

Contests

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SweepstakesConsumer Sweepstakes -

Chance

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ENTRY: To enter the Universal Studios Hollywood

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Sales Promotion Methods for Consumers

SamplingIn store, mail, door-to-doorHigher response rates than coupons

http://www.thefreesite.com/freesamples.htm

Sales Promotion Methods for Consumers

Point-of-Purchase DisplaysSigns, Window displays, Counter pieces, Display racks to attract customers

70% purchase decisions in-store

The Role of Trade Sales Promotion

Improve trade relations

Gain new distributors

Build or reducedealer inventories

Tools for Trade Sales Promotion

Trade Allowances

Push Money

Unique ToolsUnique Toolsforfor

Trade SalesTrade SalesPromotionPromotion