8/14/2019 PRIMAR CHAPTER 11 [PRINT].docx

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Source: Marketing, 2013 ed. (Ferrell, Hult, & Pride) v3.0 Prepared by: Acidera, Jaypaul O

YPRIMARCHAPTER 11: PERSONAL SELLING AND SALES PROMOTION

Personal selling paid personal communication that attempts 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. Prospectingdeveloping a database of potential customers2. 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 potentialcustomer

4. Making the presentation5. Overcoming objections6. Closing the sale

Closingthe stage in the personal selling process when the salespersonasks the prospect to buy the product

7. Following upTYPES OF SALESPEOPLE

A. Order getter a salesperson who sells to new customers and increasessales to current customers

Creative sellingthe task to increase sales by selling to new customersand increasing sales to present customers

Two categories of order getting:

1. Current-customer sales seeking more sales from existing customersby following up previous sales

2. New-business sales locating prospects and converting them intobuyers

B. Order takerssalespeople who primarily seek repeat salesTwo groups of order takers:

1. Inside order takers order takers who work in sales offices, receiveorders by mail, telephone, and the internet

2. Field order takersorder takers who travel to customersC. 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 amanufacturer, who assist the producers customers in selling to their

own customers

Detail repssalespeople used by manufacturers of medical suppliesand pharmaceuticals

2. Trade salespeople salespeople involved mainly in helping aproducers customers promote a product

3. Technical salespeople support salespeople who give technicalassistance to a firms current customers

SELECTED TYPES OF SELLING

A. Team selling the use of a team of experts from all functional areas of afirm, led by a salesperson, to conduct the personal selling process

B. Relationship selling or consultative selling the building of mutuallybeneficial 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 objectives2. Determining sales force size3. Recruiting and selecting salespeople

Recruitingdeveloping a list of qualified applicants for sales positions4. Training sales personnel5. Compensating salespeople

Three basic compensation methods:

Straight salary compensation plan paying salespeople a specificamount per time period, regardless of selling effort

Straight commission compensation planpaying salespeople accordingto the amount of their sales in a given time period

Combination compensation planpaying salespeople a fixed salary plusa commission based on sales volume

6. Motivating salespeople

7. Managing sales territories8. Controlling and evaluating sales force performanceSales promotion an activity and/or material intended to induce resellers o

salespeople to sell a product or consumers to buy it

CONSUMER SALES PROMOTION METHODS

Consumer sales promotion methods sales promotion techniques tha

encourage consumers to patronize specific stores or try particular products

A. Couponswritten price reductions used to encourage consumers to buya specific product

B. Cents-off offer a promotion that allows buyers to pay less than theregular price to encourage purchase

C. Money refund a sales promotion technique that offers consumers aspecified 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 aspecified amount of money for making a single product purchase

E. Frequent-user incentives reward customers who engage in repea(frequent) purchases and foster customer loyalty to a specific company

or group of cooperating companies

F. Point-of-purchase (POP) materials signs, window displays, displayracks, and similar devices used to attract customers

G. Demonstration a sales promotion method a manufacturer usetemporarily to encourage trial use and purchase of a product or to show

how a product worksH. 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 forpurchasing a product

J. Consumer contests sales promotion methods in which individualcompete for prizes based on their analytical or creative skills

K. Consumer games sales promotion methods in which individualcompete for prizes based primarily on chance

L. Consumer sweepstakes a sales promotion in which entrants submitheir names for inclusion in a drawing for prizes

TRADE SALES PROMOTION METHODS

Trade sales promotion methodsmethods intended to persuade wholesaler

and retailers to carry a producers products and market them aggressively

A. Buying allowance a temporary price reduction to resellers fopurchasing specified quantities of a product

B. Buy-back allowancea sum of money given to a reseller for each unitbought after an initial promotion deal is over

C. Scan-back allowancea manufacturers reward to retailers based on thenumber of pieces scanned

D. Merchandise allowancea manufacturers agreement to pay resellercertain amounts of money for providing special promotional efforts, such

as setting up and maintaining a display

E. Cooperative advertising an arrangement in which a manufactureagrees to pay a certain amount of a retailers media costs for advertising

the manufacturers products

F. Dealer listingan advertisement that promotes a product and identifiesthe names of participating retailers that sell the product

G. Free merchandise a manufacturers reward given to resellers thapurchase a stated quantity of products

H.

Dealer loader a gift, often part of a display, given to a retailer thapurchases a specified quantity of merchandise

I. Premium money or push money extra compensation to salespeoplefor pushing a line of goods

J. Sales contesta sales promotion method used to motivate distributorsretailers, and sales personnel through recognition of outstanding

achievements