Ch. 13: Personal Selling and Sales Promotion

variable amount

often in the form of commissions or bonuses based on sales performance, rewards the salesperson for greater efforts and success a sales force compensation plan can both motivate salespeople and direct their activities

Sales force size

once a company has set its structure, it is ready to consider sales force size since salespeople make up one of the company's most productive - and most expensive - assets. Therefore, increasing their numbers will increase both sales and costs

business promotions

sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople

Product sales force structure

A sales force organization in which salespeople specialize in selling only a portion of the company's products or lines.

Territorial sales force structure

A sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company's full line

sales quota

A standard that states the amount a salesperson should sell and how sales should be divided among the company's products.

complex sales force structure

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

recruitment steps

1) company should analyze the sales job itself and the characterisitics of its most successful salespeople to identify the traits needed by a successful salesperson in their industry. 2) recruit the right salespeople. HR dept looks for applicants by getting names from current salespeople, via employment agencies, internet and social media, working through colelge placement services, and attracting top salespeople from other companies. 3) selecting the best applicants via a single formal interview or lengthy interviewing/testing

developing the sales promotion program

1) determine size of incentive 2) set conditions for participation 3) determine how to promote and distribute the promotion program itself 4) length of the promotion 5) evaluate promotion

Training salespeople

American firms spend roughly $15billion on sales training/year training programs have several goals: 1) salespeople need to know about customers and how to build relationships with them 2) therefore, must teach salespeople about different types of customers and their needs, buying motives, and buying habits 3) teach them how to sell effectively and train them in the basics of the selling process 3) salespeople need to know and identify with company, its products, and its competitors. Thus, an effective training program teaches salespeople about the company's objectives, organization, products, and the strategies of major competitors.

salesperson

An individual who represents a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building link btween a compnay and itscustomers (2 ways) 1. they represent the company to customers 2. represent customers to the company

value selling

Demonstrating and delivering superior customer value and capturing a return on that value that is fair for both the customer and the company

time-and-duty analysis

Helps show salespersons the time the salesperson spends selling, traveling, waiting, taking breaks, and doing administrative chores in hopes of determining ways they could be more productive/efficient.

consumer promotion

Sales promotion tools used to boost short-term customer buying and engagement or enhance long-term customer relationships.

inside sales force

Salespeople who conduct business from their offices via telephone, online and social media interactions, or visits from prospective buyers

sales promotion

Short-term incentives to encourage the purchase or sale of a product or service

organizational climate

The feeling that employees have about their opportunities, value, and rewards for good performance within the business.

closing

The sales step in which a salesperson asks the customer for an order

follow-up

The sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business

preapproach

The sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call

approach

The sales step in which a salesperson meets the customer for the first time

Prospecting and qualifying

The sales step in which a salesperson or company identifies qualified potential customers, need to know how to qualify leads (Identify good ones and screen poor ones)

handling objections

The sales step in which a salesperson seeks out, clarifies, and overcomes any customer objections to buying

selling process

The steps that salespeople follow when selling, which include prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow-up. transaction oriented- their aim is to help salespeople close a specific sale with a customer

team selling

Using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts.

sales force management

analyzing, planning, implementing, and controlling sales force activities includes designing sales force strategy and structure, recruiting, selecting, training, compensating, supervising, and evaluating the firm's salespeople

supervising salespeople: the tools

call plan time-and-duty analysis sales force automation systems

Workload approach

company first groups accounts into different classes according to size, account status, or other factors related to the amount of effort required to maintain the account. Then determines the number of salespeople needed to call on each class of accounts the desired number of times

sales force automation systems

computerized, digitized sales force operations that let salespeople work more effectively anytime, anywhere

major sales promotion tools

consumer promotions include a wide-range of tools trade promotions business promotions

4 key talents possessed by the best salespeople

intrinsic motivation, disciplined work style, the ability to close a sale, and the ability to build relationships with customers

motivating salespeople

management can boost sales force morale and performance through its organizational climate, sales quotas, and positive incentives

evaluating salespeople and sales force performance

mangement get information about its salespeople in several ways: sales reports -most important source call reports expense reports

Personal selling

personal presentations by the firm's sales force for the purpose of engaging customers, making sales, and building customer relationships personal selling if the interpersonal arm of the promotion mix. It involves interpersonal interactions and engagement between salespeople and individual customers

salesperson-omened loyalty

quality of customers' relationships with salesperson will result in quality of relationships with the company and its products

the sales force structure

territorial sales force structure product sales force structure customer (or market) sales force structure

the goal of Supervision

the help the salespeople "work smart" by doing the right things in the right way

fixed amount

usually a salary, gives the salesperson some stable income

presentation

The sales step in which a salesperson tells the "value story" to the buyer, showing how the company's offer solves the customer's problems

Compensating salespeople (4 elements of compensation)

fixed amount variable amount expenses fringe benefits

Supervising and motivating salespeople

new salespeople need more than a territory, compensation, and training - they need supervision and motivation

Other sales force strategy and strucuture issues

outside and inside sales forces team selling

consumer promotion tools

samples coupons rebates (or cash refunds) price packs (or cents-off deals) premiums advertising specialties point-of-purchase (POP) promotions contests sweepstakes games event marketing (or event sponsorships)

call plan

shows which customers and prospects to call on and which activities to carry out

Customer (or market) sales force structure

a sales force organization in which salespeople specialize in selling only to certain customers or industries

positive incentives

sales meeting provide social occasions, breaks from routine, chances to meet and talk with "company brass", and opportunities to air feelings and identify witha l arger group. sales contests to spur the sales force to make a selling effort above and beyond what is normally expected honors, merchandise and cash awards, trips, profit-sharing plans

Trade promotions

sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to customers

outside sales force (or field sales force)

salespeople who travel to call on customers in the field

the goal of motivation

to encourage salespeople to "work hard" and energetically toward sales force goals

social selling

using online, mobile, and social media to engage customers, build stronger customer relationships, and augment sales performance