Global Edition

Personal Selling and

Sales Promotion
Chapter 13
 Rest Stop: Previewing the Concepts

• Discuss the role of a company’s salespeople

in creating value for customers and building
customer relationships
• Identify and explain the six major sales force
management steps
• Discuss the personal selling process,
distinguishing between transaction-oriented
marketing and relationship marketing

13 - 2
 Rest Stop: Previewing the Concepts

• Explain how sales promotion campaigns are

developed and implemented

13 - 3
 First Stop: Nokia
• Nokia’s sales force works passionately towards
delighting their customers.
• Nokia believes that if the trade customers are
supported and satisfied, this will ultimately have
a significant impact on the satisfaction of the
ultimate consumer of their products
• The sales team offers the trade customers
unflinching business support in many
ramifications.

13 - 4
Personal selling

• Personal presentations by the firm’s sales

force for the purpose of making sales and
building customer relationships
 Salesperson
• Individual representing a company to
customers by performing one or more of the
following activities:
• Prospecting
• Communicating
• Selling
• Servicing
• Information gathering
• Relationship building
13 - 6
 The Role of the Sales Force
• Serve as a critical
link between a
company and its
customers
• Coordinate
marketing and sales
Salespeople link the company with
its customers. To many customers,
the salesperson is the company.

13 - 7
Sales force management

• Analyzing, planning, implementing, and

controlling sales force activities
Figure 13.1 – Major Steps in Sales
Force Management

13 - 9
 Types of Sales Force Structure
• Territorial: Assigns each salesperson to an
exclusive geographic territory in which that
salesperson sells the company’s full line
• Product: Salespeople specialize in selling only
a portion of the company’s products or lines
• Customer (or market): Salespeople specialize
in selling only to certain customers or
industries

13 - 10
 Sales Force Structure

Whirlpool specializes its sales force by customer and by

territory for each key customer group
 Sales Force Size
• May range from only a few to thousands
• Many companies use some form of workload
approach to set sales force size
• Company first groups accounts into different
classes according to size, account status, or other
factors
• Then determines the number of salespeople
needed to call on each class of accounts

13 - 12
 Other Sales Force Strategy and
Structure Issues
• Outside sales force (or field sales force):
Salespeople who travel to call on customers
in the field
• Inside sales force: Salespeople who conduct
business from their offices via telephone, the
Internet, or visits from prospective buyers

13 - 13
Other Sales Force Strategy and
Structure Issues

For many types of selling situations, phone or Web selling can be as

effective as a personal sales call. At Climax Portable Machine Tools, phone
reps build surprisingly strong and personal customer relationships.
Team selling

• Using teams of people from sales,

marketing, engineering, finance, technical
support, and even upper management to
service large, complex accounts
Recruiting and Selecting Salespeople

The best salespeople possess intrinsic motivation, a disciplined work

style, the ability to close a sale, and, perhaps most important, the ability
to build relationships with customers
13 - 16
 Training Salespeople
• Training programs teach salespeople:
• About different types of customers and their
needs, buying motives, and buying habits
• How to sell effectively
• Basics of the selling process
• How to know and identify themselves with the
company, its products, and the strategies of major
competitors

13 - 17
 Training Salespeople
• Companies provide
continuing sales
training via
seminars, sales
meetings, and
Internet e-learning E-Training can make sales training more
throughout the efficient—and more fun. Bayer
HealthCare Pharmaceuticals’ role-
salesperson’s career playing video game—Rep Race—helped
improve sales rep effectiveness by 20
percent.

13 - 18
 Compensating Salespeople
• Compensation consists of four elements:
• Fixed amount,
• Variable amount
• Expenses
• Fringe benefits

13 - 19
 Compensating Salespeople
• Different combinations of fixed and variable
compensation give rise to four basic types of
compensation plans:
• Straight salary
• Straight commission
• Salary plus bonus
• Salary plus commission

13 - 20
 Supervising Salespeople

• Goal
• Help salespeople work smart by doing the right
things in the right way
• Sales force management tools:
• Call plan – Shows which customers and prospects
to call on and which activities to carry out
• Time-and-duty analysis

13 - 21
 Sales Force Automation System
• Computerized,
digitized sales force
operations that let
salespeople work
more effectively
anytime, anywhere
Technology has reshaped the ways in
which salespeople carry out their
duties and engage customers
 Marketing At Work
• Online selling tools
build customer
awareness and
consideration,
purchase interest,
and salespeople,
• Extend their reach
and effectiveness of
salespeople
 Selling on the Internet
• Benefits
• Conserves salespeople’s valuable time, saves
travel dollars, and gives them a new vehicle for
selling and servicing accounts
• Gives customers more control over the sales
process
• Drawbacks
• Expensive
• Intimidates low-tech salespeople or clients
13 - 24
 Motivating Salespeople
• Goal
• Encourage salespeople to work hard and
energetically toward sales force goals
• Management boost sales force morale by:
• Organizational climate
• Sales quotas
• Positive incentives
• Sales meetings
• Sales contests
13 - 25
Organizational climate
• Describes the feeling that salespeople have about
opportunities, value, and rewards for a good
performance

Sales quotas
• Standard that states the amount a salesperson should
sell and how sales should be divided among the
company’s products

Sales meetings
• Provides 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
 Evaluating Salespeople and Sales
Force Performance
• Management gets information about its
salespeople from:
• Sales reports
• Call reports
• Expense reports
• Monitoring the sales and profit performance
data in the salesperson’s territory
• Personal observation, customer surveys, and
talks with other salespeople
13 - 27
Evaluating Salespeople and Sales Force
Performance
• Formal evaluation
• Forces management to develop and
communicate clear standards for judging
performance
• Provides salespeople with constructive feedback
and motivates them to perform well
• Company should measure its return on sales
investment

13 - 28
 Steps in the Selling Process
• Prospecting and qualifying
• Preapproach
• Approach
• Presentation and demonstration
• Handling objections
• Closing
• Follow-up
Figure 13.3 – Steps in the Selling
Process

13 - 30
 Steps in the Selling Process
• Prospecting and qualifying
• Prospecting: Identifying qualified potential
customers
• Qualifying – Identifying good ones and screening
out poor ones
• Preapproach: Learning as much as possible
about a prospective customer before making
a sales call

13 - 31
 Steps in the Selling Process
• Approach: Meeting the customer for the first
time
• Presentation and demonstration:
• Presentation: Telling the value story to the buyer,
showing how the company’s offer solves the
customer’s problems
• Handling objections: Seeking out, clarifying,
and overcoming any customer objections to
buying
13 - 32
 Steps in the Selling Process
• Closing: Asking the
customer for an
order
• Follow-up: Following
up after the sale to
ensure customer
satisfaction and This classic ad from Boise makes the
point that good selling starts with
repeat business listening. “Our account
representatives have the unique
ability to listen to your needs.”
13 - 33
Personal Selling and Managing Customer
Relationships
• Most companies want their salespeople to
practice value selling
• Value selling requires:
• Listening to customers
• Understanding their needs
• Carefully coordinating the whole company’s
efforts to create lasting relationships based on
customer value

13 - 34
Sales promotion

• Short-term incentives to encourage the

purchase or sales of a product or a service

13 - 35
 Targets of Sales Promotion
• Final buyers (consumer
promotions)
• Retailers and wholesalers
(trade promotions)
• Business customers
(business promotions)
• Members of the sales force Magazines are loaded
with offers like this one
(sales force promotions) that promote a strong
and immediate
response
13 - 36
Factors Contributing to the 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

13 - 37
 Sales Promotion Objectives
• Sales promotions:
• Are used together
with other
promotion mix tools
• Help reinforce
product’s position
and build long-term
Customer loyalty programs:
customer Kroger keeps its Plus Card
relationships holders coming back by linking
food purchases to discounts on
gasoline prices
13 - 38
 Consumer promotion

• Sales promotion tools used to boost short-term

customer buying and involvement or to
enhance long-term customer relationships

13 - 39
 Consumer Promotion Tools
• Samples – Offers of a trial amount of a
product
• Coupons – Certificates that save buyers
money when they purchase specified
products
• Cash refunds (or rebates) – Price reduction
occurs after purchase to the manufacturer,
which then refunds part of the purchase price

13 - 40
 Marketing at Work
• Mobile marketing
can be very effective
• Coupons by phone
offer an alluring
opportunity

As mobile phones become appendages that

many people can’t live without, companies
from Target and Sears to Chick-fil-A and
Enterprise Rent-A-Car are testing the mobile
couponing waters
 Consumer Promotion Tools
• Price packs (or cents-off deals) – Offer
consumers savings off the regular price of a
product
• Premiums – Goods offered either free or at
low cost as an incentive to buy a product
• Advertising specialties (or promotional
products) – Useful articles imprinted with an
advertiser’s name, logo, or message

13 - 42
 Consumer Promotion Tools
• Point-of-purchase (POP) promotions –
Displays and demonstrations that take place
at the point of sale
• Contests, sweepstakes, and games – Give
consumers the chance to win something
• Event marketing: Creating a brand-marketing
event or serving as a sole or participating
sponsor of events created by others

13 - 43
Companies use sweepstakes and contests to create brand attention and boost
consumer involvement. Enter this year’s “Dads Making a Difference Contest” and
you could win your dad up to $30,000 in support of a community project
Trade promotion
• Sales promotion tools used to persuade
resellers to carry a brand, give it shelf space,
promote it in advertising, and push it to
consumers

13 - 45
 Trade Promotion Tools
• Contests
• Premiums
• Displays
• Discounts/Price-off/Off-invoice/Off-list
• Allowances
• Free goods
• Push money
• Specialty advertising items
13 - 46
Business promotion
• Sales promotion tools used to generate
business leads, stimulate purchases, reward
customers, and motivate salespeople

13 - 47
 Business Promotion Tools
• Include many of the same tools used for
consumer or trade promotions
• Conventions and trade shows – Help vendors
find new sales leads, contact customers,
introduce new products, etc.
• Sales contests – Contest for salespeople or
dealers to motivate them to increase their
sales performance over a given period

13 - 48
Developing the Sales Promotion Program

• Marketers must:
• Determine the size of the incentive
• Set conditions for participation
• Determine how to promote and distribute the
promotion program itself
• Set the length of promotion
• Evaluate the promotion

13 - 49
 Rest Stop: Reviewing the Concepts

• Discuss the role of a company’s salespeople

in creating value for customers and building
customer relationships
• Identify and explain the six major sales force
management steps
• Discuss the personal selling process,
distinguishing between transaction-oriented
marketing and relationship marketing

13 - 50
 Rest Stop: Reviewing the Concepts

• Explain how sales promotion campaigns are

developed and implemented

13 - 51