Managing the Sales Force

Sales force management is the analysis, planning,

implementation, and control of sales force
activities and includes:
• Designing the sales force strategy and
structure
• Recruiting
• Selecting
• Training
• Compensating
• Supervising
• Evaluating
16-9
 Managing the Sales Force
Sales Force Structure

• Territorial sales force structure

• Product sales force structure
• Customer sales force structure
• Complex sales force structure

16-10
 Managing the Sales Force
Sales Force Structure

Territorial sales force structure refers to a

structure where each salesperson is
assigned an exclusive geographic area and
sells the company’s full line of products
and services to all customers in that
territory
• Defines salesperson’s job
• Fixes accountability
• Lowers sales expenses
• Improves relationship building and selling
effectiveness

16-11
 Managing the Sales Force
Sales Force Structure

Product sales force structure refers

to a structure where each
salesperson sells along product
lines
• Improves product knowledge
• Can lead to territorial conflicts

16-12
 Managing the Sales Force
Sales Force Structure

Customer sales force structure refers

to a structure where each
salesperson sells along customer
or industry lines
• Improves customer relationships

16-13
 Managing the Sales Force
Sales Force Structure

Complex sales force structure refers

to a structure where 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

16-14
 Managing the Sales Force
Sales Force Size

Salespeople are one of the

company’s most productive and
expensive assets

Increases in sales force size can

increase sales and costs

16-15
 Recruiting and Selecting Salespeople

Issues in recruiting and selecting include:

Careful selection
• Increases sales performance
Poor selection
• Increases recruiting and training costs
• Lost sales
• Disrupts customer relationships

16-22
 Compensating Salespeople

Compensation is made up of:

• Fixed amounts
• Variable amounts
• Expenses
• Fringe benefits

16-23
 Compensating Salespeople

Fixed amounts, usually a salary, give the

salesperson some stable income

Variable amounts can include commission

or bonus based on sales performance;
rewards the salesperson for greater
effort and success

16-24
 Compensation in the global market is an
extremely important managerial area
 This is because the compensation plan:

◦ Helps attract potential salespersons

◦ Impacts a salesperson’s motivation
◦ Is a determinant of status and value
◦ Determines lifestyle and purchasing power
 Compensation package is complex and
affected by multiple forces:
◦ A balance between company policies and country-
specific elements
◦ Total compensation package includes financial
 Salary, commission, bonus, stock options, benefits
◦ and non-financial incentives
 Awards, recognition, vacation, and promotion
 Hard to compare compensation plans
because of their differences
◦ Lower salary, but higher deferred components
◦ Cannot simply transfer a compensation plan
from one culture to another
 What works in one culture will not work in another!
◦ Compensation should motivate sales force to
accomplish goals set by management
 Compensation may be changed to meet firm goals
 Straight Salary
 Straight Commission
 Combination Plan
 Salesperson paid a set amount of money
based upon hours or days worked
◦ Often adopted when salesperson must devote
significant amounts of time to other duties
 Market research, customer service, administration
◦ Simple to administer by sales manager
◦ But, no direct link between performance and
reward!
 More commonly used in Europe and may be
difficult to change by global sales managers
 Adopted by performance-oriented firms
that pay salesperson for their achievements
◦ Each person is paid a percentage of their total
sales
 Easy to evaluate performance
 Plans encompass an element of insecurity
 Not believed acceptable in some cultures, like EU
 Some evidence of acceptance in Japan
 Can lead salesperson to shirk duties or pressure
customers to buy
 The combination plan is the most popular
◦ Employed by more than 80% of US firms
◦ May appear in many forms:
 Salary, commission, individual and group bonuses
◦ Basic security bestowed by set salary
◦ Motivation introduced by commission/bonus
 Combination plans more time consuming for
sales managers to oversee
 Major dilemma – hire the best salesperson
for the lowest possible salary. Other
dilemmas include:
◦ Pay at, below or above market salaries?
◦ Setting a cap on total pay?
◦ Assigning lucrative sales territories?
◦ Team vs. individual incentives?
◦ Frequency of paying commission?
◦ Pay discrimination?
 What are the advantages of each pay plan?
The disadvantages?
 Which pay plan would work best for a

software firm that is a market leader?

 Sales contests are short-term incentive
programs implemented to motivate
salespersons to achieve specific goals or
activities
 For sales contests to be successful:
◦ Objectives must be specific and clearly defined
◦ Contest theme must be exciting and clearly
communicated
◦ Each salespersons must believe they can win
◦ Awards must be attractive to participants
◦ Contest must be promoted and managed properly
 Contest Objectives
◦ To increase total and product sales most
common
◦ Sales force must be given sufficient time
◦ All contest information and rules must be clear
 Theme
◦ Contests receive a theme to create excitement
 Chance of winning
◦ Compete against self, others, or as a team?
 Sales contests can offer many types of
reward in the form of:
◦ Cash, prizes, or travel
◦ Perceived value very important as it must be of
sufficient value to motivate additional effort
 Promotion of contest important
◦ Launched as a special event with handouts
◦ Large scorecards to communicate progress
◦ Newsletter articles or interim prizes can keep
motivation up
 A number of concerns have been raised about
sales contests
◦ When not properly designed contests take a lot of
managerial time to administer
◦ Improper contests can actually de-motivate
◦ Do sales contests generate additional sales?
◦ Should sales force be paid twice for doing job?
◦ If contests are for short-term, then why have a
“never-ending” sales contest?
 How might a sales contest motivate sales
personnel to greater efforts?
 Does a sales contest take into consideration

the needs of the buyer?

 Is it possible sales contests have become a

part of the compensation system? If so, what

does this tell us?
 Human needs require approaches other than
compensation to remain satisfied
◦ Ability to grow
◦ Recognition programs
 Salesperson of the year, President’s Club
◦ Opportunity to travel
◦ Educational assistance
 Linked to salary in some ways
◦ Globally, firm may pay salesperson’s expenses to
live overseas that include family
◦ Expatriate expenses are significant
 Expense plans include
◦ Unlimited
◦ Per diem
◦ Limited expense plan
 All legitimate expenses are reimbursed
 Plan has a number of advantages
◦ Communicates trust to the sales force
◦ Sales manager can focus on more important
issues
◦ Salesperson cannot complain that resources not
available to make sale
 Sales force must be given guidance and
expenses must still be monitored to insure
sound judgment
◦ Reimbursed expenses vary by country – e.g.
entertainment and alcohol
 The salesperson is given a set amount of
money for each day s/he is in the field
◦ For example, US$250 per day
 Budget can be set by multiplying rate times total days
sales force expected to travel
 Single rate unlikely to work in all locales due to varying
costs
 Sales manager must adjust per diem rates regularly as
prices expand or contract
 The firm sets a maximum daily amount paid
for each category of expense
◦ That is, US$125 for lodging, $50 for meals, $30 for
auto rental, and $20 for miscellaneous
 Limits firm’s upper travel expense limit
 Must be updated and will vary by location
 When actual costs exceed plan, salesperson may try to
save in some areas to meet expenses in other
 Salesperson’s attention may be diverted from client
 Is there a connection between the ethical
practices of sales managers, regarding pay
matters, and the ethical behavior of
salespersons?
 What is the purpose of expense plans?

Compare and contrast the advantages and

disadvantages of the three expense plans
covered in this chapter
 Importance of Recruiting and Selection

 The Recruitment Process

 Sources of Salespeople

 The Sales Force Selection Process

 Making the Selection

 Sales Force Socialization

After reading this chapter, you should be able to
do the following:
1. Follow the steps in the sales force recruitment
process.
2. Identify sources of sales applicants.
3. Follow the steps in the sales force selection
process.
4. Apply the criteria used to make the final selection
decision.
5. Implement the sales force socialization process.
 Recruitment refers to finding potential job
applicants, telling them about the company, and
getting them to apply.

 Selection refers to activities involved in choosing

qualified candidates that have the greatest aptitude
for the job.

 Ineffective recruitment and selection can result in the

following:
◦ wrong salespeople being hired
◦ thousands of dollars a year spent in training
◦ lost productivity
◦ lost sales
 Identify Attract
Conduct Prepare Select
sales job a pool
a job a job best
qualifications. of sales
analysis. description. recruits.
recruits.
 1. Steps in 2.
Analyze the conducting a Determine duties and
environment in which responsibilities
the salesperson
job analysis expected from
is to work. the salesperson .

3.
Observe and
• What is the competition
the salesperson faces?
record sales tasks Obtain information from
being performed. these sources:
• What kinds of • salespeople
customers will be • channel partners
contacted, and what
• customers
problems do they have?
• distribution manager
• What knowledge, skills,
and potential are
needed for this
position?
 • Install the
• Counsel customers on • Make regular calls. product or
their problems. display.
• Sell the product or product line.
• Build relationships • Report
• Check stock; identify possible complaints.
with channel partners. product uses.
• Maintain loyalty for • Handle
the company. adjustments,
returns, and
allowances.
1.
Sales activities
6. 2.
Goodwill Servicing functions

Preparing a
job description
3.
5.
Account/territory
Executive activities
management
4.
Sales promotion
• Develop monthly and
weekly work plan. • Arrange route for best
• Make a daily work coverage.
plan for the next day. • Develop new accounts. • Maintain sales
• Organize field activity portfolios, samples.
• Promote products.
for sales calls . • Maintain customer
• Make calls with buyer’s database.
salespeople.
 Developing
1. 2.
a set of job
Personality traits Qualifications
qualifications
 Here are some critical
personality traits of
salespeople:
◦ intelligence
◦ decisiveness
◦ energy and enthusiasm
◦ results orientation
◦ maturity
◦ assertiveness
◦ sensitivity
◦ openness Source: Digital Vision
◦ tough-mindedness
 Continuously
identify, locate, and
attract salespeople.

 Candidates become
the pool from which
new salespeople are
chosen.
Source: Digital Vision
 To see a video on how to attract the best
sales talent, go to
◦ http://www.sellingpower.com/video/index.asp?
date=10/10/2007
 1.
Persons within
the company
6.
Professional 2.
recruiters Competitors
Sources of
salespeople
3.
5.
Non-competing
Advertisements
companies
4.
Educational
institutions
 Peruse the websites of various recruiting
firms and agencies:
◦ http://www.navigaservices.com
◦ http://www.qualifindsales.com
◦ http://www.optimalss.com
◦ http://www.resolutionsystemsinc.com/salesRecr
uitment_managers.shtml
 nature of the product
 nature of the market
 promoting from within
 sales training provided by

the company
 personnel needs of the

company
 sources of successful Source: Triange Images
recruits in the past
 recruiting budget
 legal considerations
 In-depth
Initial Reference Employment Follow-up Making the
interviews
screening checking testing interviews selection
 Initial screening may start with this process:
1. Application forms
◦ Weighted application forms place more importance on
the following:
 years of selling experience
 employment length
 career objectives
 educational level
2. Initial screening interviews and tests
◦ Initial interviews and test are conducted in person or over the
telephone; the best candidates are invited for in-depth interviews.
3. Automated screening techniques
◦ Automated screening speeds the gathering and analysis of data from
applicants.
◦ Computer screening tests measure honesty and personality.
 honesty
 drug abuse
 customer relations
 safety
 work values
 supervision (attitudes

toward authority)
 employability index

(composite score of
everything but validity) Source: Digital Vision
 To see a video about applicant tracking
systems for “Recruiting sales superstars and
best practices for finding and hiring top
talent,” go to
◦ http://blogs.salesforce.com/dreamforce06/200
6/09/recruiting_sale.html
 1.
Current employment

6. 2.
Education Prior sales
experience
Factors
that predict
performance
5. 3.
Residential Knowledge of job
moves requirements
4.
Recruitment
source
 1.
Career
aspirations

4. Factors
that predict 2.
Employment
Employment
length low turnover

3.
Prior sales
experience
 Reference checking is a screening tool that
enables a company to obtain information
from these sources:
◦ former and current bosses
◦ coworkers
◦ clients

 These are important because fraudulent

resumes are often received.
 1.
Physical
examinations

Standard
company
reviews
3.
2.
Background
Drug tests
checks
 To see a video on how to select the right
sales candidate, go to
◦ http://www.sellingpower.com/video/index.asp?d
ate=10/11/2007
 In-depth interviews help determine issues
such as these:
– whether a person is right for the job
– source and quality of candidate’s past sales leads
– length of sales cycle the candidate has been successful
with
– level candidate has been selling to
– whether candidate has worked alone or as a team
member
– why the candidate wants to change sales positions
 In informal interviews,
probing questions are
used to learn the
following:
a) whether candidate is self-
motivated
b) whether candidates will
work on their own
c) whether the candidate has
a pattern for winning or
recovering from loss

1. Types of 2.
Structured in-depth Unstructured
interview interviews interview

Each candidate receives the

same set of standardized
questions designed to
determine the applicant’s
fitness for a sales position.
 Prepare for interviews by learning
about the company and anticipate
questions that may be asked.
 Some questions candidates typically
ask interviewers:
◦ What percentage of the job will
require travel?
◦ What is the likelihood of
relocation?
◦ What are the starting salaries for a
particular position?
◦ What is the typical career path
of each
position?
◦ What is the compensation
package?
◦ What are the benefits?
 Factors that lead to rejection of applicants:
◦ poor appearance
◦ overbearing, overaggressive, conceited attitude
◦ inability to express self clearly; poor voice,
diction, grammar
◦ lack of knowledge in field of specialization
◦ low moral standards
◦ intolerance; strong prejudice
◦ inability to take criticism
◦ condemnation of past employers
 1.
Intelligence tests
6. 2.
Personality tests Knowledge tests
Employment
testing
5. 3.
Attitude and Sales
lifestyle tests aptitude tests
4.
Vocational
interest tests
 1.
Emotional intensity
6. 2.
Trust Intuition
Personality
tests measure
3.
5.
Recognition
Assertiveness
motivation
4.
Sensitivity
 Some key points to
cover upon making a
formal offer:
◦ Duties of the salesperson
◦ Compensation
 salary
 draw
 bonus
 commission
 expenses
◦ Territory coverage
◦ Length of employment Source: Stockbyte
relationship
◦ Termination of employment
 Compare these traits in
candidates:

◦ Interviewing skills
 temperament
 well-organized and prepared
 questions asked
Source: Triange Images
◦ Background/job
skills/experience
 job stability
 career pattern
 recommendations
 Compare these traits in
candidates:
◦ Personality traits
 maturity
 planning skills
 sociability
 ambition
 enthusiasm
 persuasiveness
◦ Summary points
 salary level
Source: Digital Vision
 challenge/opportunity
 Use a point rating system.
 Refers to introducing the recruit to the following:
◦ company practices, procedures, and philosophy
◦ social aspects of the job
 These are benefits of socialization:
◦ greater job satisfaction
◦ increased employee commitment
◦ greater job involvement,
◦ better understanding role in the company

 Socialization contributes to person-organization fit (POF),

which describes how consistent a salesperson’s value system
is with those of the firm.
◦ Positive job outcomes of POF include the following:
 higher job satisfaction
 lower stress
 lower likelihood of turnover
 makes new salespeople
feel they are an integral
part of the company by
exposing them to the
corporate culture (values,
philosophy, group norms,
different work groups,
corporate officers)

1. Types of 2.
Initial Extended
socialization socialization socialization

begins with the recruiting

and selection process and
ends with the initial
orientation of the
salesperson to the firm’s
procedures and policies
 Initial
1. 2.
Recruiting socialization Selection

3.
Send the sales candidate Introductory
literature that details training In interview process
the company’s candidate can be
philosophy. exposed to company
Internet site may values and philosophy.
discuss corporate culture
and explains why a Salespeople can be socialized
recruit would want to by doing the following:
seek a job there.
• reading literature on
company’s history, products,
job description, and
compensation and benefit
packages
• attending introductory
training programs before they
are exposed to actual
operations of the firm
 1. Extended
2.
Long-term socialization Job rotation
training

3.
Long-term training Corporate
helps with social activity Sales trainees learn
standardization of how different
values, behavior
norms, and departments work as
philosophy and it well as making social
helps produce contacts when they
consistent sales Socializing new are exposed to the
performance results salespeople at company overall organization.
as salespeople picnics, sports teams, and
become highly sales meetings allows
motivated team interaction with
players. experienced
salespersons, sales
managers, and company
executives.
 To read articles on recruitment, go to
◦ http://www.recruitersnetwork.com/articles/resu
lts.cfm?Article=&Author
=

 For a white paper on the modern science of

salesperson selection, go to
◦ www.objectivemanagement.com/articles/spselec
tion.pdf
 Discussion Question
When you first became a sales managers a few years ago, one of
the saleswomen you hired became pregnant within the first year,
and went on leave for several months to take care of her baby.
You remember how you really had to scramble to cover her
territory during her maternity leave by requiring other
salespeople to cover parts of her territory. What’s more, she
decided not to return to the job after her maternity leave was up.
Ever since then, even though you are a female sales manager
and the mother of two teenagers, you have tried to subtly avoid
hiring young saleswomen, if other candidates were at least
equally qualified. To keep from looking like you’re
discriminating against women, however, you have hired a few
saleswomen who are generally past the child bearing age.
 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
16-26
 Supervising and Motivating Salespeople

Sales force automation systems are

computerized. Digitalized sales force
operations let salespeople work more
effectively anywhere, anytime,
providing improved:
• Time management
• Customer service
• Lower sales costs
• Higher sales performance

16-27
 Supervising and Motivating Salespeople

Sales morale and performance can be

increased through:
• Organizational climate
• Sales quotas
• Positive incentives

16-28
 Supervising and Motivating Salespeople

Organizational climate describes the

feeling that salespeople have
about their opportunities, value,
and rewards for good
performance

16-29
 Supervising and Motivating Salespeople

Sales quotas are standards stating

the amount salespeople should
sell and how sales should be
divided among the company’s
products

16-30
 Supervising and Motivating Salespeople

Positive incentives include:

• Sales meetings that can provide
social occasions to meet
management and discuss
opportunities and challenges
• Sales contests to motivate the
sales force to make additional
effort
16-31
Evaluating Salespeople and Sales Force Performance

• Sales reports
• Call reports
• Expense reports

16-32
The goal of the personal selling
process is to get new customers
and obtain orders from them

16-33
 Steps in the Personal Selling Process

1. Prospecting and qualifying

2. Pre-approach
3. Approach
4. Presentation and demonstration
5. Handling objections
6. Closing
7. Follow-up

16-34
 Steps in the Personal Selling Process

Prospecting identifies qualified

potential customers through
referrals from:
• Customers
• Suppliers
• Dealers
• Internet

16-35
 Steps in the Personal Selling Process

Qualifying is identifying good

customers and screening out poor
ones by looking at:
• Financial ability
• Volume of business
• Needs
• Location
• Growth potential

16-36
 Steps in the Personal Selling Process

Pre-approach is the process of

learning as much as possible
about a prospect, including
needs, who is involved in the
buying, and the characteristics
and styles of the buyers

16-37
 Steps in the Personal Selling Process

In the pre-approach stage, the salesperson sets

call objectives and the best approach

Objectives Approaches
• Qualify the prospect • Personal visit
• Gather information • Phone call
• Make an immediate • Letter
sale

16-38
 Steps in the Personal Selling Process

Approach is 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
• Follow-up remarks

16-39
 Steps in the Personal Selling Process

Opening lines should be positive, build

goodwill, and be followed by key
questions to learn about the customer’s
needs or by showing a display or
sample to attract the buyer’s attention
and curiosity
The most important attribute is for the
salesperson to:
Listen
16-40
 Steps in the Personal Selling Process

Presentation is when the salesperson tells

the product story to the buyer,
presenting customer benefits and
showing how the product solves the
customer’s problems

Need-satisfaction approach: Buyers want

solutions, and salespeople should listen
and respond with the right products and
services to solve customer problems

16-41
 Steps in the Personal Selling Process

Buyers dislike salespeople that are:

• Pushy
• Late
• Deceitful
• Disorganized
• Unprepared

16-42
 Steps in the Personal Selling Process

Buyers appreciate salespeople that

are:
• Good listeners
• Empathetic
• Honest
• Dependable
• Thorough
• Follow-up types

16-43
 Steps in the Personal Selling Process

Handling objections is the process where

salespeople resolve problems that are logical,
psychological, or unspoken

When handling objections from buyers, salespeople

should:
• Be positive
• Seek out hidden objections
• Ask the buyers to clarify any objections
• Take objections as opportunities to provide more
information
• Turn objections into reasons for buying

16-44
 Steps in the Personal Selling Process

Closing is the process where

salespeople should recognize
signals from the buyer, including
physical actions, comments, and
questions to close the sale

16-45
 Steps in the Personal Selling Process

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
16-46
 Personal Selling and
Customer Relationship Management

Personal selling is a transaction-

oriented approach to close a
specific sale with a specific
customer, with the long-term
goal to develop a mutually
profitable relationship
16-47
 Personal Selling and
Customer Relationship Management

Attributes of a favorable supplier include

the ability to:
• Deliver a coordinated set of products
and services to many locations
• Work with customer teams and improve
products and processes
• Listen to customers and understand
their needs
16-48
Sales promotion is the short-term
incentives to encourage
purchases or sales of a product or
service

16-49
 Rapid Growth of Sales Promotion
Types of Sales Promotions

• Consumer promotions
• Trade promotions
• Sales force promotions

16-50
 Rapid Growth of Sales Promotion
Factors in the Growth of Sales Promotions

• Product managers are under pressure to

increase current sales
• Companies face more competition
• Competing brands offer less differentiation
• Advertising efficiency has declined due to rising
costs, clutter, and legal constraints
• Consumers have become more deal-oriented
• Large retailers are demanding more deals from
suppliers

16-51
 Rapid Growth of Sales Promotion
Factors in the Growth of Sales Promotions

Developing a sales promotion

program
• Set sales promotion objectives
• Select sales promotion tools

16-52
 Sales Promotion Objectives

Setting sales promotion objectives

include using:
• Consumer promotions
• Trade promotions
• Sales force promotions

16-53
 Sales Promotion Objectives

Consumer promotions objectives are

to:
• Urge short-term customer buying
• Enhance long-term customer
relationships

16-54
 Sales Promotion Objectives

Trade promotions urge retailers to:

• Carry new items or more
inventory
• Buy in advance
• Advertise company products
• Get more shelf space

16-55
 Sales Promotion Objectives

Sales force promotion objectives

include getting:
• More sales force support for new
or current products
• Salespeople to sign up new
accounts

16-56
 Major Sales Promotion Tools

• Consumer promotion tools

• Trade promotion tools
• Business promotion tools

16-57
 Major Sales Promotion Tools
Consumer Promotion Tools

• Samples • Patronage rewards

• Coupons • Point of purchase
• Cash refunds displays
• Price packs
• Demonstrations
• Premiums
• Contests
• Advertising
• Sweepstakes
specialties • Games

16-58
 Major Sales Promotion Tools
Consumer Promotion Tools

Price packs offer consumers savings off the

regular price of a product
Premiums are goods offered either free or
at low cost to buy a product
Advertising specialties are useful articles
imprinted with the advertiser’s name,
logo, or message that are given as gifts
to consumers
16-59
 Major Sales Promotion Tools
Consumer Promotion Tools

Samples offer a trial amount of a product

Coupons are certificates that give buyers a
saving when they purchase specified
products
Cash refunds are similar to coupons except
that the price reduction occurs after the
purchase

16-60
 Major Sales Promotion Tools
Consumer Promotion Tools

Patronage rewards are cash or other

awards offered for the regular use of a
certain company’s products or services

Point-of-purchase promotions include

displays and demonstrations that take
place at the point of sales

16-61
 Major Sales Promotion Tools
Consumer Promotion Tools

Contests, sweepstakes, and games give

consumers the chance to win
something, such as cash, trips, or
goods, by luck or through extra effort
• Contests require an entry by a
consumer
• Sweepstakes require consumers to
submit their names for a drawing
• Games present consumers with
something that may or may not help
them win a prize 16-62
 Major Sales Promotion Tools
Trade Promotion Tools

Trade promotion tools persuade

resellers to:
• Carry a brand
• Give the brand more shelf space
• Promote the brand in advertising
• Push the brand to consumers

16-63
 Major Sales Promotion Tools
Trade Promotion Tools

Trade promotion tools include:

• Discount
• Allowance
• Free goods
• Specialty advertising

16-64
 Major Sales Promotion Tools
Business Promotion Tools

Business promotion tools are used to:

• Generate leads
• Stimulate purchases
• Reward customers
• Motivate salespeople
• Conventions and trade shows
• Sales contests

16-65
 Major Sales Promotion Tools
Business Promotion Tools

Conventions and trade shows are effective

ways to reach many customers not
reached with the regular sales force

Sales contests are effective in motivating

salespeople or dealers to increase
performance over a given period
16-66
 Developing the Sales Promotion Program

• Size of the incentive

• Conditions for participation
• Promote and distribute the
program
• Length of the program
• Evaluation of the program

16-67