Chapter Sixteen

Personal Selling
and
Sales Promotion
Chapter 16 - slide 1
 Personal Selling and
Sales Promotion
Topic Outline

• Personal Selling
• Role of the Sales Force
• Managing the Sales Force
• The Personal Selling Process
• Sales Promotion

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 2
Publishing as Prentice Hall
 Personal Selling
The Role of the Sales Force

Personal selling is the interpersonal part of

the promotion mix and can include:
• Face-to-face communication
• Telephone communication
• Video or Web conferencing

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 3
Publishing as Prentice Hall
 Personal Selling
The Nature of Personal Selling

Salespeople are an effective link between the

company and its customers to produce
customer value and company profit by:
• Representing the company to customers
• Representing customers to the company
• Working closely with marketing

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 4
Publishing as Prentice Hall
 Managing the Sales Force

• Sales force management is the analysis,

planning, implementation, and control of
sales force activities

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 5
Publishing as Prentice Hall
 Managing the Sales Force
Designing Sales Force Structure

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 6
Publishing as Prentice Hall
 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
Copyright © 2010 Pearson Education, Inc.  
Chapter 16 - slide 7
Publishing as Prentice Hall
 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

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 8
Publishing as Prentice Hall
 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

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 9
Publishing as Prentice Hall
 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

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 10
Publishing as Prentice Hall
 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
• Workload approach to sales forces size
refers to grouping accounts into different
classes to determine the number of
salespeople needed

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 11
Publishing as Prentice Hall
 Managing the Sales Force
Other Sales Force Strategy and Structure Issues

Outside salespeople call on customers in the

field
Inside salespeople conduct business from their
offices and often provide support for the
outside salespeople
– Technical sales support people
– Sales assistants
Team selling is used to service large, complex
accounts
Copyright © 2010 Pearson Education, Inc.  
Chapter 16 - slide 12
Publishing as Prentice Hall
 Managing the Sales Force
Recruiting and Selecting Salespeople
Issues in Recruiting and Selecting

• Careful selection and training increases

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

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 13
Publishing as Prentice Hall
 Managing the Sales Force
Salesperson compensation based on:

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 14
Publishing as Prentice Hall
 Managing the Sales Force
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

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 15
Publishing as Prentice Hall
 Managing the Sales Force
How Salespeople Spend Their Time

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 16
Publishing as Prentice Hall
 Managing the Sales Force
Selling and the Internet

Major tool to support salespeople

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 17
Publishing as Prentice Hall
 Managing the Sales Force
Supervising and Motivating Salespeople

• Sales morale and performance can be

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

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 18
Publishing as Prentice Hall
 Managing the Sales Force
Evaluating Salespeople and Sales Force Performance

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 19
Publishing as Prentice Hall
 The Personal Selling Process

The goal of the personal selling process is to

get new customers and obtain orders from
them

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 20
Publishing as Prentice Hall
 The Personal Selling Process
Steps in the Personal Selling Process

Prospecting identifies qualified potential

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

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 21
Publishing as Prentice Hall
 The Personal Selling Process
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
Copyright © 2010 Pearson Education, Inc.  
Chapter 16 - slide 22
Publishing as Prentice Hall
 The Personal Selling Process
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

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 23
Publishing as Prentice Hall
 The Personal Selling Process
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

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 24
Publishing as Prentice Hall
 The Personal Selling Process
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
showing a display or sample to attract the
buyer’s attention and curiosity
• The most important attribute is for the
salesperson to: listen

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 25
Publishing as Prentice Hall
 The Personal Selling Process
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

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 26
Publishing as Prentice Hall
 The Personal Selling Process
Steps in the Personal Selling Process

Negative Traits Positive Traits

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 27
Publishing as Prentice Hall
 The Personal Selling Process
Steps in the Personal Selling Process

Handling objections is the

process where
salespeople resolve
problems that are logical,
psychological, or
unspoken

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 28
Publishing as Prentice Hall
 The Personal Selling Process
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

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 29
Publishing as Prentice Hall
 The Personal Selling Process
Steps in the Personal Selling Process

Follow-up is the last step in which the

salesperson follows up after the sale to
ensure customer satisfaction and repeat
business

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 30
Publishing as Prentice Hall
 The Personal Selling Process
Personal Selling and Managing Customer Relationships

Personal selling is transaction-oriented to

close a specific sale with a specific
customer
• The long-term goal is to develop a mutually
profitable relationship

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 31
Publishing as Prentice Hall
 Sales Promotion

Sales promotion refers to the short-term

incentives to encourage purchases or sales
of a product or service:
– Consumer promotions
– Trade promotions
– Sales force promotions

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 32
Publishing as Prentice Hall
 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

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 33
Publishing as Prentice Hall
 Sales Promotion
Sales Promotion Objectives

• Setting sales promotion objectives includes

using:
– Consumer promotions
– Trade promotions
– Sales force promotions

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 34
Publishing as Prentice Hall
 Sales Promotion
Major Sales Promotion Tools

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 35
Publishing as Prentice Hall
 Sales Promotion
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
Price packs offer consumers savings off the regular
price of a product

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 36
Publishing as Prentice Hall
 Sales Promotion
Major Sales Promotion Tools
Consumer Promotion Tools

Premiums are goods offered either for free or at

low price
Advertising specialties are useful articles imprinted
with the advertiser’s name, logo, or message that
are given as gifts to consumers
Point-of-purchase promotions include displays and
demonstrations that take place at the point of
sales
Copyright © 2010 Pearson Education, Inc.  
Chapter 16 - slide 37
Publishing as Prentice Hall
 Sales Promotion
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
• Event marketing

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 38
Publishing as Prentice Hall
 Sales Promotion
Major Sales Promotion Tools
Trade Promotion Tools

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 39
Publishing as Prentice Hall
 Sales Promotion
Major Sales Promotion Tools
Business Promotion Tools

Conventions and trade shows are effective 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

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 40
Publishing as Prentice Hall
 Sales Promotion
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

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 41
Publishing as Prentice Hall
 All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2010 Pearson Education, Inc.  

Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc.  

Chapter 16 - slide 42
Publishing as Prentice Hall