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Chapter 18: Personal Selling & Sales Promotion - Coggle Diagram
Chapter 18: Personal Selling & Sales Promotion
Personal selling
Person-to-person promotional presentation to a buyer
Factors Affecting the Importance of
Personal Selling
Product
Price
Channel
Consumer
Sales Channels
Field selling
Sales calls made at the prospective customer’s location on a
face-to-face basis
Telemarketing
Outbound telemarketing
Sales method in which sales personnel
contact potential buyers by phone
Inbound telemarketing
Sales method in which prospects call a seller to obtain
information, make reservations, or purchase products
When the selling process is conducted by phone
Over-the-counter selling
Selling in retail or wholesale locations in which
customers come to the seller’s place of business
Inside selling
The process of inbound sales management utilizing phone,
mail, and the Internet
The Sales Process and the AIDA Concept
AIDA Concept
Interest
Desire
Attention
Action
Sales Process
Prospecting and qualifying
Approach
Presentation
Demonstration
Handling objections
Closing
Follow-up
The Sales Process
Precall planning
The process of conducting research and gathering
information before a sales call
Presentation
Describing a product’s benefits and relating them to the
customer’s problems or needs
Demonstration
When the buyer has the opportunity to try out or otherwise
see how a product works before purchasing
Approach
The initial contact with the prospective customer
Qualifying
Determining whether the prospect meets certain criteria for
making a purchase
Objections
Expressions of resistance by the prospect
Prospecting
The process of identifying potential customers
Closing
The point at which the salesperson asks the prospect for an order
Follow-up
It is not enough to close the sale and move on
Sales Management Functions
Supervision
Span of control: the number of sales representatives who
report to first-level sales managers
Factors of Effective Span
Complexity of work activities
Ability of the sales manager
Degree of interdependence among individual salespeople
Each salesperson’s extent of training
Motivation
The sales manager must figure out what motivates salespeople
to perform their best
Information sharing
Recognition
Bonuses
Incentives
Benefits
Organization
Sales managers are responsible for the organization of the
field sales force
Factors of organizational alignments
Geography
Products
Types of customers
Some combination of these factors
Compensation
Commission
A payment tied directly to the sales or profits a salesperson achieves
Salary
A fixed payment made periodically to an employee
Sales compensation can be based on a commission, a straight salary, or a combination of both
End-of-year bonuses
Training
An effective training program is needed to shape new sales recruits into an efficient sales organization
Principal methods
On-the-job training
Individual instruction
In-house classes
External seminars
Popular training techniques
Lectures
Role-playing exercises
Interactive computer programs
Videos
Evaluation and control
The most difficult tasks of sales managers
Means of evaluating sales effectiveness
Changes in market share
Customer satisfaction
Profitability
Profit contribution
Sales volume
Share of product–category sales
Customer retention
Recruitment and Selection
The recruitment and selection of successful salespeople are among the sales manager’s greatest challenges
New salespeople
Trade schools
The military
Other companies
Colleges
Sales Promotion
Marketing activities other than personal selling, advertising, and publicity designed to enhance consumer purchasing and dealer effectiveness
Consumer-oriented sales promotions
Encourage repurchases by rewarding current users, boosting sales of complementary products, and increasing impulse purchases
Specialty Advertising
An advertiser’s message or logo is placed on useful articles that are distributed to target customers
Contests and Sweepstakes
Contests may require entrants to complete a task such as uploading a picture while anyone can enter a sweepstakes with an opportunity to win the advertised prize
Sampling
Free distribution of a product in an attempt to obtain future sales
Rebates
Consumers are offered cash back for sending in proof of purchase
Coupons
Consumer is offered discounts on the purchase price of goods and services and radeem coupons at retail outlets
Trade promotion
Trade allowances
Financial incentives offered to wholesalers and retailers that purchase or promote specific products
Point-of-purchase
Display or other promotion placed near the site of the actual buying
decision
Sales promotion that appeals to distribution intermediaries rather than final consumers
Trade shows
Product exhibitions organized by industry trade associations to showcase goods and services
Effective Promotional Tactics
Marketers are most likely to use a combination of elements
Marketing Objectives
Budget
Situation