Marketing Chapter 16

Personal selling

the interpersonal part of the promotion mix and can include: Face-to-face communication Telephone communication Video or Web conferencing Sales professionals succeed not by taking advantage of customers but by listening to their needs and helping them to forge solutions. Personal selling consists of interpersonal interactions with customers and prospects to make sales and maintain customer relationships. Sales promotion involves using short-term incentives to encourage customer purchasing, reseller support, and sales force efforts.

Follow-up

the last step in which the salesperson follows up after the sale to ensure customer satisfaction and repeat business. Right after closing, the salesperson should complete any details on delivery time, purchase terms, and other matters. The salesperson then should schedule a follow-up call after the buyer receives the initial order to make sure proper installation, instruction, and servicing occur. This visit would reveal any problems, assure the buyer of the salesperson's interest, and reduce any buyer concerns that might have arisen since the sale.

Point-of-purchase promotions

include displays and demonstrations that take place at the point of sale. Point-of-purchase (POP) promotions include displays and demonstrations at the point of sale. Think of your last visit to the local Safeway, Costco, CVS, or Bed Bath & Beyond. Chances are good that you were tripping over aisle displays, promotional signs, "shelf talkers," or demonstrators offering free tastes of featured food products. Unfortunately, many retailers do not like to handle the hundreds of displays, signs, and posters they receive from manufacturers each year. Manufacturers have therefore responded by offering better POP materials, offering to set them up, and tying them in with television, print, or online messages.

Order taker or consultant?

"the main task of sales people is not to sell but to ask the right questions"

Supervising Salespeople

Companies are always looking for ways to save time—simplifying administrative duties, developing better sales-call and routing plans, supplying more and better customer information, and using phone, e-mail, or Internet conferencing instead of traveling. Many firms have adopted sales force automation systems: computerized, digitized sales force operations that let salespeople work more effectively anytime, anywhere. With these technologies salespeople can more effectively and efficiently profile customers and prospects, analyze and forecast sales, schedule sales calls, make presentations, prepare sales and expense reports, and manage account relationships. The result is better time management, improved customer service, lower sales costs, and higher sales performance. In all, technology has reshaped the ways in which salespeople carry out their duties and engage customers.

What are the advantages of Physical?

Edited assortment Shopping as an event and an experience Ability to test, try on, or experience products Personal help from caring associates Convenient returns Instant access to products Help with initial setup or ongoing repairs Instant gratification of all senses

Coordinating Marketing and Sales

Ideally, the sales force and other marketing functions should work together closely to jointly create value for customers. Unfortunately, Some companies still treat sales and marketing as separate functions and the groups may not get along well. A company should take several actions to help bring its marketing and sales functions closer together: increase communications between the two groups and create opportunities for the groups to work together create joint objectives and reward systems appoint marketing-sales liaisons and a marketing executive to oversee both groups

When should you use the different price promotion strategies?

It depends on the PLC

What are the goals of training salespeople?

New salespeople may spend anywhere from a few weeks or months to a year or more in training. After the initial training ends, most companies provide continuing sales training via seminars, sales meetings, and Internet e-learning throughout the salesperson's career. Today, many companies are adding e-learning to their sales training programs. Online training may range from simple text-based product training and Internet-based sales exercises that build sales skills to sophisticated simulations that re-create the dynamics of real-life sales calls. It also makes on-demand training available to salespeople, letting them train as little or as much as needed, whenever and wherever needed. Although most e‑learning is Web-based, many companies now offer on-demand training from anywhere via almost any mobile digital device. Many companies are now using imaginative and sophisticated e-learning techniques to make sales training more efficient—and sometimes even more fun. Customer knowledge First : Find out about the customer's needs, AIDA the last step is the Selling process Knowledge of products, company, competitors

What are the steps in the personal selling process

Prospecting Qualifying Pre approach approach presentation need satisfaction recognition handling objections closing follow up

What are the advantages of digital?

Rich product information Customer reviews and tips Editorial content and advice Social engagement and two-way dialogue Broadest selection Convenient and fast checkout Price comparison and special deals Convenience of anything, anytime, anywhere access

Sales force management

Sales force management is the analysis, planning, implementation, and control of sales force activities. We define sales force management as analyzing, planning, implementing, and controlling sales force activities. It includes designing sales force strategy and structure, as well as recruiting, selecting, training, compensating, supervising, and evaluating the firm's salespeople.

What are the seven major sales promotion tools?

Samples Coupons Rebates Price packs premiums point of purchase promotions advertising specialties

Compensating Sales people, and its four methods

To attract good salespeople, a company must have an appealing compensation plan. Compensation consists of four elements: a fixed amount, a variable amount, expenses, and fringe benefits. The fixed amount, usually a salary, gives the salesperson some stable income. The variable amount, which might be commissions or bonuses based on sales performance, rewards the salesperson for greater effort and success. Management must determine what mix of these compensation elements makes the most sense for each sales job. A sales force compensation plan can both motivate salespeople and direct their activities. Compensation should direct salespeople toward activities that are consistent with the overall sales force and marketing objectives. For example, if the strategy is to acquire new business, grow rapidly, and gain market share, the compensation plan might include a larger commission component, coupled with a new-account bonus to encourage high sales performance and new account development. In contrast, if the goal is to maximize current account profitability, the compensation plan might contain a larger base-salary component with additional incentives for current account sales or customer satisfaction. More and more companies are moving away from high commission plans that may drive salespeople to make short-term grabs for business. They worry that a salesperson who is pushing too hard to close a deal may ruin the customer relationship. Instead, companies are designing compensation plans that reward salespeople for building customer relationships and growing the long-run value of each customer. You shouldn't just give them money as a reward. when the exceed an agreed upon target, you should give them some nice reward like a vacation. The more expertise they have, the more they will want a fixed cost, not a variable cost because they already paid for their expertise. When the complexity of the product is low, there can be variable payment programs.

when should we use sales promotion?

When the product is not unique (when there isnt much differentiation) If your product is unique, you have a loyal following, you dont have to do any specials!

Salespeople

an effective link between the company and its customers to produce customer value and company profit by Representing the company to customers Representing customers to the company Working closely with marketing the most expensive tool in the IMC but effective if a 2 way communication is needed and customization possible Examples of people who do selling include: Salespeople, representatives and agents District managers, account executives and development reps Sales engineers Salespeople need to first ask for information and then they should be able to define exactly what the customer wants so that they may then be able to offer exactly what the customer wants. Linking the Company with Its Customers They find and develop new customers and communicate information about the company's products and services. They sell products by approaching customers, presenting their offerings, answering objections, negotiating prices and terms, closing sales, and servicing accounts. To many customers, the salesperson is the company and customers may become loyal to salespeople as well as to the companies and products they represent. This concept of salesperson-owned loyalty lends even more importance to the salesperson's customer relationship-building abilities. A customer-solutions focus is a must not only for the sales force but also for the entire organization.

Premiums

are goods offered either for free or at a low price. Premiums are as an incentive to buy a product, ranging from toys included with kids' products to phone cards and DVDs. A premium may come inside the package (in-pack), outside the package (on-pack), or through the mail.

Coupons

certificates that give buyers a saving when they purchase specified products. Coupons can promote early trial of a new brand or stimulate sales of a mature brand. However, to combat the increase in coupon clutter, most major consumer-goods companies are issuing fewer coupons and targeting them more carefully. Marketers are also cultivating new outlets for distributing coupons, such as supermarket shelf dispensers, electronic point-of-sale coupon printers, and online and mobile coupon programs.

Samples

offer a trial amount of a product. Sampling is the most effective—but most expensive—way to introduce a new product or create new excitement for an existing one. Some samples are free; for others, the company charges a small amount to offset its cost. The sample might be sent by mail, handed out in a store or at a kiosk, attached to another product, or featured in an ad or an e-mail. Samples are sometimes combined into sample packs, which can then be used to promote other products and services. Sampling can be a powerful promotional tool.

Price packs

offer consumers savings off the regular price of a product. Price packs (also called cents-off deals) reduce prices directly on the label or package. Price packs can be single packages sold at a reduced price (such as two for the price of one) or two related products banded together (such as a toothbrush and toothpaste). Price packs are very effective—even more so than coupons—in stimulating short-term sales.

Rebates

similar to coupons except that the price reduction occurs after the purchase. Rebates (or cash refunds) are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet.

Handling objections

the process where salespeople resolve problems that are logical, psychological, or unspoken. Great salespeople know how to sell, but more important, they know how to listen and build strong customer relationships. When handling objections from buyers, salespeople should: be positive seek out hidden objections ask the buyer to clarify any objections take objections as opportunities to provide more information turn objections into reasons for buying

Closing

the process where salespeople should recognize signals from the buyer—including physical actions, comments, and questions—to ask for a order and finalize the sale. Closing techniques can include: Asking for the order Reviewing points of agreement Offering to help write up the order Asking if the buyer wants this model or another one Making note that the buyer will lose out if the order is not placed now Offering incentives to buy, including lower price or additional quantity

Approach

the process where the salesperson meets and greets the buyer and gets the relationship off to a good start and involves the salesperson's: Appearance Opening lines: has to be the advantage for the (buyer) and not just for you. it will make them listen Follow-up remarks The opening lines of an approach should be positive to build goodwill from the outset. This opening might be followed by some key questions to learn more about the customer's needs or by showing a display or sample to attract the buyer's attention and curiosity. As in all stages of the selling process, listening to the customer is crucial.

Advertising specialties

useful articles imprinted with the advertiser's name, logo, or message that are given as gifts to consumers.goods offered either for free or at a low price. Advertising specialties, also called promotional products, include T-shirts and other apparel, pens, coffee mugs, calendars, key rings, mouse pads, tote bags, coolers, golf balls, and caps. U.S. marketers spent nearly $18 billion on advertising specialties last year. Such items can be very effective. The "best of them stick around for months, subtly burning a brand name into a user's brain," notes a promotional products expert.

Need-satisfaction approach

when buyers want solutions and salespeople should listen and respond with the right products and services to solve customer problems. The customer-solution approach fits better with today's relationship marketing focus than does a hard sell or glad handing approach. The goal should be to show how the company's products and services fit the customer's needs. Buyers today want insights and solutions, not smiles; results, not razzle-dazzle. Moreover, they don't want just products. More than ever in today's economic climate, buyers want to know how those products will add value to their businesses. They want salespeople who listen to their concerns, understand their needs, and respond with the right products and services.

Presentation

when the salesperson tells the product story to the buyer, presenting customer benefits and showing how the product solves the customer's problems. During the presentation step of the selling process, the salesperson tells the "value story" to the buyer, showing how the company's offer solves the customer's problems