Chapter 13: Personal Selling and Sales Promotion

Salesforce: You Need a Great Sales Force to Sell Salesforce

*First Stop* *_____* (Salesforce: You Need a Great Sales Force to Sell Salesforce)... The first fundamental of good selling at Salesforce is to *listen and learn*... Understanding the customer leads to a second selling fundamental: *empathize* - let customer know that you understand their issues and feel their pain... So the next important step is to *offer solutions* - to show how Salesforce's cloud-based solutions will help clients make their sales forces more effective and productive in connecting with and selling to customers...

outside sales force (or field sales force), inside sales force

*Managing the Sales Force*... *Designing the Sales Force Strategy and Structure*... *Other Sales Force Strategy and Structure Issues*... *Outside and ___2___s* A company may have an ___1___, an ___2___, or both. Outside salespeople travel to call on customers in the field. In contrast, inside salespeople conduct business from their offices via telephone, online, and social media interactions, or visits from buyers.

team selling

*Managing the Sales Force*... *Designing the Sales Force Strategy and Structure*... *Other Sales Force Strategy and Structure Issues*... *_____* As products become more complex and as customers grow larger and more demanding, a single salesperson simply can't handle all of a large customer's need. Instead, most companies now use _____ to service large, complex accounts.

Outside and Inside Sales Forces

*Managing the Sales Force*... *Designing the Sales Force Strategy and Structure*... *Other Sales Force Strategy and Structure Issues*... *_____*(Outside and Inside Sales Forces)... Some inside salespeople provide support for the outside sales force, freeing them to spend more time selling to major accounts and finding new prospects. For example, *technical sales-support people* provide technical information and answers to customers' questions. *Sales assistants* provide research and administrative backup for outside salespeople... *Telemarketers* and *online sellers* use the phone, Internet, and social media to find new leads, learn about customers and their business, and sell and service accounts directly.

product sales force structure

*Managing the Sales Force*... *Designing the Sales Force Strategy and Structure*... *The Sales Force Structure*... If a company has numerous and complex products, it can adopt a _____, in which the sales force specializes along product lines. =Normally product, then territory within products

territorial sales force structure

*Managing the Sales Force*... *Designing the Sales Force Strategy and Structure*... *The Sales Force Structure*... In the _____, each salesperson is assigned to an exclusive geographic area and sells the company's full line of products or services to all customers in that territory. =Geography (most common way to organize sales force because you find all customers that way (?))

customer (or market) sales force structure

*Managing the Sales Force*... *Designing the Sales Force Strategy and Structure*... *The Sales Force Structure*... Using a _____, a company organizes its sales force along customer or industry lines.

Sales Force Size

*Managing the Sales Force*... *Designing the Sales Force Strategy and Structure*... *_____* Once the company has set its structure, it is ready to consider *_____*... A company might use some form of *workload approach* to set _____. -May range from only a few to thousands -Companies may use the workload approach to set _____. --Accounts are grouped into different classes based on size, account status, or other factors. --The number of salespeople needed to call on each class of accounts is then determined. =Direct sales force are most expensive form of advertising =-*NOT* superbowl ads ("trick question")

The Sales Force Structure

*Managing the Sales Force*... *Designing the Sales Force Strategy and Structure*... *_____* (The Sales Force Structure)... The structure decision is simple if the company sells only one product line to one industry with customers in many locations. In that case the company would use a *territorial sales force structure*. However, if the company sells many products to many types of customers, it might need a *product sales force structure*, a *customer sales force structure*, or a combination of the two... When a company sells a wide variety of products to many types of customers over a broad geographic area, it often employs a *complex sales force structure*, which combines several types of organizations... For example, Whirpool specializes its sales force by customer (with different sales teams for Sears, Lowe's, Best Buy, Home Depot, and smaller independent retailers) *and* by territory for each key customer group (territory representatives, territory managers, regional managers, and so on).

sales quotas

*Managing the Sales Force*... *Supervising and Motivating Salespeople*... *Motivating Salespeople*... Many companies motivate their salespeople by setting _____ - standards stating the amount they should sell and how sales should be divided among the company's products.

Supervising Salespeople

*Managing the Sales Force*... *Supervising and Motivating Salespeople*... *_____* (Supervising Salespeople) Companies vary in how closely they supervise their salespeople... One tool is the weekly, monthly, or annual *call plan* that shows which customers and prospects to call on and which activities to carry out. Another tool is *time-and-duty analysis*... Figure 13.2 shows how salespeople spend their time... Many firms have adopted *sales force automation systems*: computerized, digitized sales force operations that let salespeople work more effectively anytime, anywhere.

Motivating Salespeople

*Managing the Sales Force*... *Supervising and _____*... *_____* (Motivating Salespeople)... *Organizational climate* describes the feeling that salespeople have about their opportunities, value, and rewards for a good performance. Some companies treat salespeople as if they are not very important, so performance suffers accordingly... Companies also use various *positive incentives* to increase the sales force effort. *Sales meetings* provide social occasions, breaks from the routine, chances to meet and talk with "company brass," and opportunities to air feelings and identify with a larger group. Companies also sponsor *sales contests* to spur the sales force to make a selling effort above and beyond what is normally expected. -Encourage salespeople to work hard and energetically toward sales force goals -Management can boost sales force morale and performance through its: --Organizational climate --*Sales quotas* =-*Sales quota* - Target/budget for how much you're supposed to sell =-You are highly accountable if only person in sales force =-Swing for quota - try or else you won't get! --Positive incentives

Evaluating Salespeople and Sales Force Performance

*Managing the Sales Force*... *_____* (Evaluating Salespeople and Sales Force Performance)... Management gets information about its salespeople in several ways. The most important source is *sales reports*, including weekly or monthly work plans and longer-term territory marketing plans. Salespeople also write up their completed activities on *call reports* and turn in *expense reports* for which they are partly or wholly reimbursed... As with other marketing activities, the company wants to measure its *return on sales investment*.

Supervising and Motivating Salespeople

*Managing the Sales Force*... *_____* (Supervising and Motivating Salespeople)... The goal of *supervision* is to help salespeople "work smart" by doing the right things in the right ways. The goal of *motivation* is to encourage salespeople to "work hard" and energetically toward sales force goals.

sales force management

*Managing the Sales Force*... We define _____ as analyzing, planning, implementing, and controlling sales force activities.

Linking the Company with Its Customers

*Personal Selling*... *The Nature of Personal Selling*... *The Role of the Sales Force*... *_____* (Linking the Company with Its Customers)... In many cases, salespeople serve two masters - the seller and the buyer. First, they *represent the company to customers*... At the same time, salespeople *represent customers to the company*, acting inside the firm as "champions" of customers' interests and managing the buyer-seller relationship... In fact, to many customers, the salesperson *is* the company - the only tangible manifestation of the company that they see. Hence, customers may become loyal to salespeople as well as to the companies and products they represent. This concept of *salesperson-owned loyalty* tends even more importance to the salesperson's customer-relationship building abilities.

salesperson

*Personal Selling*... *The Nature of Personal Selling*... The term _____ covers a wide range of positions. At one extreme, a _____ might be largely an *order taker*, such as the department store _____ standing behind the counter. At the other extreme are *order getters*, whose positions demand *creative selling*, *social selling*, and *relationship building* for products and services ranging from appliances, industrial equipment, and airplanes to insurance and IT services.

The Nature of Personal Selling

*Personal Selling*... *_____* (The Nature of Personal Selling)... *Salesman* may bring to mind the image of Dwight Schrute, the opinionated Dunder Mifflin paper salesman from the old TV show *The Office*, who lacks both common sense and social skills.

drives sales

*Sales Promotion - "_____!"* -Many factors have contributed to the rapid growth of sales promotion. --Product managers view promotion as an effective short-run sales tool. --Competitors use sales promotion to differentiate their offers. --Advertising efficiency has declined. --Sales promotions help attract today's more thrift-oriented consumers. =Promotions are different from advertising or PR in that promotions always involve sales incentives or sales and accomplishes other marketing goal =Some businesses can get promotions and others can't for ethical reasons

event marketing, event sponsorships

*Sales Promotion*... *Major Sales Promotion Tools*... *Consumer Promotions*... Finally, marketers can promote their brands through ___1___ (or ___2___). They can create their own brand-marketing events or serve as sole or participating sponsors of events created by others.

Consumer promotions

*Sales Promotion*... *Major Sales Promotion Tools*... *_____* _____ include a wide range of tools - from samples, coupons, refunds, premiums, and point-of-purchase displays to contests, sweepstakes, and event sponsorships... *Samples* are offers of a trial amount of a product... *Coupons* are certificates that save buyers money when they purchase specified products... *Rebates* (or *cash refunds*) are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet... *Price packs* (also called *cents-off deals*) offer consumers savings off the regular price of a product... *Premiums* are goods offered either free or at a low cost as an incentive to buy a product, ranging from toys included with kids' products to phone cards and DVDs... *Advertising specialties*, also called *promotional products*, are useful articles imprinted with an advertiser's name, logo, or message that are given as gifts to consumers... *Point-of-purchase (POP) promotions* include displays and demonstrations that take place at the point of sale... *Contests*, *sweepstakes*, and *games* give consumers the chance to win something, such as cash, trips, or goods, by luck or through extra effort. A *contest* calls for consumers to submit an entry - a jingle, guess, suggestion - to be judged by a panel that will select the best entries. A *sweepstakes* calls for consumers to submit their names for a drawing. A *game* presents consumers with something - bingo numbers, missing letters - every time they buy, which may or may not help them win a prize.

Business promotions

*Sales Promotion*... *Major Sales Promotion Tools*... *_____*... _____ are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople... Many companies and trade associations organize *conventions and trade shows* to promote their products... A *sales contest* is a contest for salespeople or dealers to motivate them to increase their sales performance over a given period.

Trade promotions

*Sales Promotion*... *Major Sales Promotion Tools*... *_____*... _____ can persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers... Many of the tools used for consumer promotions - contests, premiums, displays - can also be used as _____. Or the manufacturer may offer a straight *discount* off the list price on each case purchased during a stated period of time (also called a *price-off*, *off-invoice*, or *off-list*). Manufacturers may offer an *allowance* (usually so much off per case) in return for the retailer's agreement to feature the manufacturer's products in some way... Manufacturers may offer *free goods*, which are extra cases of merchandise, to resellers who buy a certain quantity or who feature a certain flavor or size. They may also offer *push money* - cash or gifts to dealers or their sales forces to "push" the manufacturer's goods. Manufacturers may give retailers free *specialty advertising items* that carry the company's name, such as pens, calendars, memo pads, flashlights, and tote bags.

Developing the Sales Promotion Program

*Sales Promotion*... *_____* (Developing the Sales Promotion Program) Beyond selecting the types of promotions to use, marketers must make several other decisions in designing the full sales promotion program. First, they must determine the *size of the incentive*... The marketer also must set *conditions for participation*... Marketers must determine how to *promote and distribute the promotion* program itself... The *length of the promotion* is also important... *Evaluation* is also very important.

Sales Promotion Objectives

*Sales Promotion*... *_____* (Sales Promotion Objectives)... Sellers may use *consumer promotions* to urge short-term customer buying or boost customer-brand engagement. Objectives for *trade promotions* include getting retailers to carry new items and more inventory, buy ahead, or promote the company's products and give them more shelf space. *Business promotions* are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople... Marketers should avoid "quick fix," price-only promotions in favor of promotions that are designed to build brand equity. Examples include the various *frequency marketing programs* and loyalty cards that have mushroomed in popularity in recent years.

The Rapid Growth of Sales Promotion

*Sales Promotion*... *_____* (The Rapid Growth of Sales Promotion) Sales promotion tools are used by most organizations, including manufacturers, distributors, retailers, and not-for-profit institutions. They are targeted toward final buyers (*consumer promotions*), retailers and wholesalers (*trade promotions*), business customers (*business promotions*), and members of the sales force (*sales force promotions*)... The growing use of sales promotion has resulted in *promotion clutter*, which is similar to advertising clutter. With so many products being sold on deal these days, a given promotion runs the risk of being lost in a sea of other promotions, weakening its ability to trigger an immediate purchase.

prospecting, pre-approach, approach, needs identification, presentation, handling objections, closing (the sale), follow-up (implementation)

*The Personal Selling Process*... *Steps in the Selling Process* As shown in Figure 13.3, the selling process consists of eight steps: ___1___ and qualifying, ___2___, ___3___, ___4___, ___5___ and demonstration, ___6___, ___7___, and ___8___.

presentation

*The Personal Selling Process*... *Steps in the Selling Process*... *_____ and Demonstration* During the _____ 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. -*_____*: salesperson describes product and how it meets buyer's needs --Feature --Evidence =-Evidence is like "free sample" --Benefit --Agreement =---FEBA (Feature, Evidence, Benefit, Agreement)

prospecting

*The Personal Selling Process*... *Steps in the Selling Process*... *_____ and Qualifying* The first step in the selling process is _____ - identifying qualified potential customers. -*_____* involves identifying potential customers for a particular product or service -A *prospect* is a *MAD* buyer --the *M*oney to spend --the *A*uthority to buy --the *D*esire to buy it =Figure out who could possibly want what we have =-Desire - emotional component =--Even professional business settings have emotions take over

closing (the sale)

*The Personal Selling Process*... *Steps in the Selling Process*... *_____* After handling the prospect's objections, the salesperson next tries to close the sale. However, some salespeople do not get around to _____ or don't handle it well. -*Close*: when salesperson asks buyer for the sale -Good close --Reinforce decision to buy --Confirm implementation schedule --Thank the buyer --Ask for referral =Always ask even if you think it's going bad ="No" -> thank for time, be polite ="Yes" -> PREVENT buyer's remorse =-Implementation and other details =-Thank people for doing business with you

Pre-approach

*The Personal Selling Process*... *Steps in the Selling Process*... *_____* Before calling on a prospect, the salesperson should learn as much as possible about the organization (What it needs, who is involved in the buying) and its buyers (their characteristics and buying styles). This step is known as _____... The salesperson should set *call objectives*, which may be to qualify the prospect, gather information, or make an immediate sale. -During *_____*, the salesperson tries to learn everything she can about the account -Can take a significant amount of time =Finding out all information

approach

*The Personal Selling Process*... *Steps in the Selling Process*... *_____* During the _____ step, the salesperson should know how to meet and greet the buyer and get the relationship off to a good start. -*_____*: salesperson asks buyer to commit to a meeting -Opening statement must get buyer's attention =*_____* *allows* you opportunity to be successful! =-"I can help your business make/save money" =--Both/either is good _____!

follow-up (implementation)

*The Personal Selling Process*... *Steps in the Selling Process*... *_____* The last step in the selling process - _____ - is necessary if the salesperson wants to ensure customer satisfaction and repeat business. -*_____*: After delivery, ensure that the customer has good experience with product -Training, service, policies and procedures =Where a lot of sales people fall off =-A lot of heavy lifting because job isn't done =-Buyer's relationship with seller is just beginning

Presentation and Demonstration

*The Personal Selling Process*... *Steps in the Selling Process*... *_____* (Presentation and Demonstration)... The *customer-solution approach* fits better with today's relationship marketing focus than does a hard sell or glad-handling approach... But before salespeople can *present* customer solutions, they must *develop* solutions to present... The qualities that buyers *dislike most* in salespeople include being pushy, late, deceitful, unprepared, disorganized or overly talkative. The qualities they *value most* include good listening, empathy, honesty, dependability, thoroughness, and follow-through.

Prospecting and Qualifying

*The Personal Selling Process*... *Steps in the Selling Process*... *_____* (Prospecting and Qualifying)... A salesperson must often approach many prospects to get only a few sales... The best source is referrals... Or, as a last resort they can drop in unannounced on various offices (a practice known as *cold calling*). Salespeople also need to know how to *qualify* leads - that is, how to identify the good ones and screen out the poor ones.

handling objections

*The Personal Selling Process*... *Steps in the Selling Process*... *_____*... In _____, the salesperson should use a positive approach, seek out hidden objections, ask the buyer to clarify any objections, take objections as opportunities to provide more information, and turn the objections into reasons for buying. -*Objections*: reasons a buyer offers to not buy your product -Can occur at any time -Salesperson should find out root of concern and resolve it =We think of objections as negative =-but it's potentially positive - seller knows consumer is interested and what needs to be done to further/finish sale =-Cost/price objections are most common =Types of objections: =-Need, Product, Price, Source, Stall (timing) =--Ask if there is anything else of concern or uncertain before leaving.

Personal Selling and Managing Customer Relationships

*The Personal Selling Process*... *_____* (Personal Selling and Managing Customer Relationships) The steps in the just-described selling process are *transaction oriented* - their aim is to help salespeople close a specific sale with a customer. But in most cases, the company is not simply seeking a sale. Rather, it wants to engage the customer over the long haul in a mutually profitable *relationship*... Thus, as shown in Figure 13.3, the selling process must be understood in the context of building and maintaining profitable customer relationships... If the company wishes only to close sales and capture short-term business, it can do this by simply slashing its prices to meet or beat those of competitors. Instead, most companies want their salespeople to practice *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.

selling process

*The Personal _____*... The _____ consists of several steps that salespeople must master. These steps focus on the goal of getting new customers and obtaining orders from them.

Resonate, Differentiate, Substantiate

*Three Legs of the Value Proposition* -___1___ + ___2___ + ___3___

Compensating Salespeople

*_____* (Compensating Salespeople) -*Elements of compensation* --Fixed amount =-Salary --Variable amount =-Incentive, commissions --Expenses --Fringe benefits -*Types of compensation plans* --Straight salary --Straight commission --Salary plus bonus --Salary plus commission =Use process during job attainment process; sell product (i.e. yourself) *SINGLE STAR*

Managing the Sales Force

*_____* (Managing the Sales Force)... sales force management... includes designing sales force strategy and structure as well as recruiting, selecting, training, compensating, supervising, and evaluating the firm's salespeople. These major sales force management decisions are shown in Figure 13.1 and discussed in the following sections.

Nothing happens in business until somebody sells something

*_____* (Nothing happens in business until somebody sells something) =If no sales, we don't even need business =-We need to sell to live =-Grows with sales, dies with sales =*2 fundamental business requirements* =-1. Make stuff =-2. Sell stuff

Previewing the Concepts

*_____* (Previewing the Concepts) In the previous two chapters, you learned about engaging customers and communicating customer value through integrated marketing communications (IMC) and two elements of the promotion mix: advertising and public relations. In this chapter, we examine two more IMC elements: personal selling and sales promotion.

Promotional Mix is the Marketer's "Tool Box"

*_____* (Promotional Mix is the Marketer's "Tool Box") *Goal: Drive Profitable Sales - generate ROI!* -Advertising -Public Relations -Direct & Digital -*Sales Promotion* -*Personal Selling* =-B2C - used in channels, but not to consumer. Much more common in B2B =-*Outside sales* - Go out of company's soil and get to customer's turf =-*Inside sales* - Work in group (usually with computers, texting tech) - servicing customers inside =--Lots of companies have people starting inside, then go outside =--Can also be useful experience with right sales force =-Personal selling is individual skill

Recruiting & Selecting Salespeople

*_____* (Recruiting & Selecting Salespeople) -A company should analyze the sales job and the characteristics of its most successful salespeople. -Sources for the recruitment of salespeople: --Referrals from current salespeople --Employment agencies --Internet and online social media --*College placement services (Entry level Marketing job!!!!)* --Salespeople at other companies

Role of the Sales Force

*_____* (Role of the Sales Force) -Links the company with its customers -Coordinates marketing and sales --Sales Rep *is your Brand* to your customers --*B2B: marketing deployed through Sales Reps* =2 years sales job is great for development =Takes motivation =Links... (serves as bridge)

Sales Promotion & ROI?

*_____* (Sales Promotion & ROI?) -Strong or weak connection? -Direct link! =Can see transaction history - easiest to track =ROI vs. marketing & PR *SINGLE STAR*

What is "Sales"?

*_____* (What is "Sales"?) =*Persuasive* (about persuading to buy something in their best interest) =-*Helping/helpful* =-*Sociable* (meet lots of people constantly) =-*Learning/understanding* consumer behavior, social style, message =Sales are NOT =-*Manipulative* (forcing you to buy something you don't need) =-*Annoying* (bugging constantly) =-*Boring* (wait, wait, etc.)

Personal selling

*_____*... *The Nature of _____* _____ is one of the oldest professions in the world. The people who do the selling go by many names, including salespeople, sales representatives, agents, district managers, account executives, sales consultants, and sales engineers. -Person-to-person communication with a prospect -Personal selling is a process of: -Developing relationships -Discovering needs -Matching products with needs -Communicating benefits A process that adds value =Most flexible form of communication =-Develop relationships, *then* discover needs, *then*...

sales promotion

*_____*... _____ consists of short-term incentives to encourage the purchase or sales of a product or service. Whereas advertising offers reasons to buy a product or service, _____ offers reasons to buy *new*.

social selling

*_____: Online Mobile, and Social Media Tools*... The fastest-growing sales trend is the explosion in _____ - the use of online, mobile, and social media to engage customers, build stronger customer relationships, and augment sales performance.

needs identification

-*_____*: salesperson confirms prospect is *MAD* (*M*oney, *A*uthority, *D*esire) -Includes 3 elements: --1. Questioning --2. Identification --3. Pre-commitment =This is the fourth step of the selling process. =Persuasion happens in buyer's mind =-*They* identify issues and gain interests

Feature, Evidence, Benefit, Agreement

FEBA (___1___, ___2___, ___3___, ___4___)

Money, Authority, Desire

MAD (___1___, ___2___, ___3___)