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YPRIMAR CHAPTER 11: PERSONAL SELLING AND SALES PROMOTION Personal selling paid personal communication that attempts

ts to inform customers and persuade them to buy products in an exchange situation ELEMENTS OF THE PERSONAL SELLING PROCESS General steps in the personal selling process: 1. Prospecting developing a database of potential customers 2. Preapproach involves identifying key decision makers, reviewing account histories and problems, contacting other clients for information, assessing credit histories and problems, preparing sales presentations, identifying product needs, and obtaining relevant literature 3. Approach the manner in which a salesperson contacts a potential customer 4. Making the presentation 5. Overcoming objections 6. Closing the sale Closing the stage in the personal selling process when the salesperson asks the prospect to buy the product 7. Following up TYPES OF SALESPEOPLE A. Order getter a salesperson who sells to new customers and increases sales to current customers Creative selling the task to increase sales by selling to new customers and increasing sales to present customers Two categories of order getting: 1. Current-customer sales seeking more sales from existing customers by following up previous sales 2. New-business sales locating prospects and converting them into buyers B. Order takers salespeople who primarily seek repeat sales Two groups of order takers: 1. Inside order takers order takers who work in sales offices, receive orders by mail, telephone, and the internet 2. Field order takers order takers who travel to customers C. Support personnel sales staff members who facilitate selling but usually are not involved solely with making sales Three most common kinds of sales support personnel: 1. Missionary salespeople support salespeople, usually employed by a manufacturer, who assist the producers customers in selling to their own customers Detail reps salespeople used by manufacturers of medical supplies and pharmaceuticals 2. Trade salespeople salespeople involved mainly in helping a producers customers promote a product 3. Technical salespeople support salespeople who give technical assistance to a firms current customers SELECTED TYPES OF SELLING A. Team selling the use of a team of experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process B. Relationship selling or consultative selling the building of mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time MANAGING THE SALES FORCE Eight general areas of sales management: 1. Establishing sales force objectives 2. Determining sales force size 3. Recruiting and selecting salespeople Recruiting developing a list of qualified applicants for sales positions 4. Training sales personnel 5. Compensating salespeople Three basic compensation methods: Straight salary compensation plan paying salespeople a specific amount per time period, regardless of selling effort Straight commission compensation plan paying salespeople according to the amount of their sales in a given time period Combination compensation plan paying salespeople a fixed salary plus a commission based on sales volume 6. Motivating salespeople Source: Marketing, 2013 ed. (Ferrell, Hult, & Pride) v3.0 7. Managing sales territories 8. Controlling and evaluating sales force performance Sales promotion an activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it CONSUMER SALES PROMOTION METHODS Consumer sales promotion methods sales promotion techniques that encourage consumers to patronize specific stores or try particular products A. Coupons written price reductions used to encourage consumers to buy a specific product B. Cents-off offer a promotion that allows buyers to pay less than the regular price to encourage purchase C. Money refund a sales promotion technique that offers consumers a specified amount of money when they mail in a proof of purchase, usually for multiple product purchases D. Rebate a sales promotion technique in which a consumer receives a specified amount of money for making a single product purchase E. Frequent-user incentives reward customers who engage in repeat (frequent) purchases and foster customer loyalty to a specific company or group of cooperating companies F. Point-of-purchase (POP) materials signs, window displays, display racks, and similar devices used to attract customers G. Demonstration a sales promotion method a manufacturer uses temporarily to encourage trial use and purchase of a product or to show how a product works H. Free sample a sample of a product given out to encourage trial and purchase I. Premium an item offered free or at a minimal cost as a bonus for purchasing a product J. Consumer contests sales promotion methods in which individuals compete for prizes based on their analytical or creative skills K. Consumer games sales promotion methods in which individuals compete for prizes based primarily on chance L. Consumer sweepstakes a sales promotion in which entrants submit their names for inclusion in a drawing for prizes TRADE SALES PROMOTION METHODS Trade sales promotion methods methods intended to persuade wholesalers and retailers to carry a producers products and market them aggressively A. Buying allowance a temporary price reduction to resellers for purchasing specified quantities of a product B. Buy-back allowance a sum of money given to a reseller for each unit bought after an initial promotion deal is over C. Scan-back allowance a manufacturers reward to retailers based on the number of pieces scanned D. Merchandise allowance a manufacturers agreement to pay resellers certain amounts of money for providing special promotional efforts, such as setting up and maintaining a display E. Cooperative advertising an arrangement in which a manufacturer agrees to pay a certain amount of a retailers media costs for advertising the manufacturers products F. Dealer listing an advertisement that promotes a product and identifies the names of participating retailers that sell the product G. Free merchandise a manufacturers reward given to resellers that purchase a stated quantity of products H. Dealer loader a gift, often part of a display, given to a retailer that purchases a specified quantity of merchandise I. Premium money or push money extra compensation to salespeople for pushing a line of goods J. Sales contest a sales promotion method used to motivate distributors, retailers, and sales personnel through recognition of outstanding achievements

Prepared by: Acidera, Jaypaul O.