Chapter 13 Flashcards
Personal selling
Involves personal presentations by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships
Salesperson
Individual who represents a company to customers by performing one or more activities (prospecting, communicating, selling, servicing, information gathering, and relationship building)
Role of sales force
Links company with customers
Coordinates marketing and sales
Effective for complex selling situations
Sales force management
Analyzing, planning, implementing, and controlling sales force activities
- Designing sales force strategy and structure, recruiting and selecting, training, compensating, supervising, and evaluating salespeople
Types of sales force structures
- Territorial - sales force organization that 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
Inside selling
Growing much faster than in person selling.
Salespeople conducting business from their offices via phone, online, social, or visits from prospective buyers
Outside selling
Reps who travel to call on customers in the field
Team selling
Teams of people from differ departments used to service large, complex accounts
Sales force size
May range from only a few salespeople to tens of thousands
Recruiting and selecting salespeople
Company should analyze sales job and the characteristics of most successful salespeople
Sources of recruitment of salespeople: •referrals from current salespeople •employment agencies •internet and social media •posting ads and notices •college placement services •salespeople at other companies
Training salespeople
Goals of training salespeople
- About differ types of customers
- How to sell effectively
- About company’s objectives, organization, products, and strategies of competitors
Compensating salespeople
Fixed amount - salary
Variable amount - commissions or bonuses
Supervising salespeople
Tools of supervision
- Call plan - shows which customers and prospects to call on and which activities to carry out
- Time and duty analysis - salesperson spends time traveling, waiting, taking breaks, and doing administrative chores
- Sales force automation systems - digitized sales force operations that let sales pole work more effectively anytime and anywhere
Motivating salespeople
Can boost sales force morale through:
- Organizational climate - describes feeling that salespeople have about their opportunities, value, rewards for good performance
- Sales quotas - standard that states amount salespeople should sell (often related to compensation)
- Positive incentives
Evaluating salespeople
Management obtains info about salespeople from
- sales, call, and expense reports
- monitoring sales and profit performance data in salesperson’s territory
- through personal observation, customer surveys, and talks with other salespeople
Formal evaluations force management to develop standards for judging performance
New digital technologies
Provide salespeople with powerful tools for identifying and learning about prospects, engaging customers, creating customer value, closing sales, nurturing customer relationships
Selling process
- Prospecting and qualifying - identifying qualified potential customers
- Preapproach- learning as much as possible about prospective customer before sales call
- Approach- should know how to meet and greet buyer and get relationship off on positive note
- Presentation and demonstration- “value story” demonstrates how company’s offer solves customer’s problem
- Handling objections- should use positive approach, seek out hidden objections, ask buyer to clarify objections, take objections as opportunities to provide more info and turn objections into reasons for buying
- Closing- asking customer for an order
- Follow up - following up after sale for ensure customer satisfaction and repeat business
Value selling
Demonstrates and deliver superior customer value, captures a return in value that is fair for both customer and company
Requires:
- listening to customers
- understanding customer’s needs
- coordinating company’s efforts to create lasting relationships based on customer value
Sales promotion
Short term incentives to encourage purchase or sale of a product or service
Targeted towards
final buyers-consumer promotions
retailers and wholesalers-trade promotions
business customers-business promotions
members of the sales force-sales force promotions
Rapid growth of sales promotions
- product managers view promotion as an effective short run sales tool
- competitors use sales promotions to differentiate their offers
- advertising efficiency has declined
- sales promotions help attract today’s more thrift oriented consumers
Consumer promotions
Urge short term customer buying or boost customer brand engagement
Trade promotions
Get retailers to carry new items and more inventory, but ahead, or promote the company’s products and give them more shelf space
Business promotions (B2B)
Generate business leads, stimulate purchases, reward customers, and motivate salespeople
Promotion tools
Samples- offers trial amount of product, most effective but most expensive
Coupons- save money certificates
Rebates- cash refunds
Price packs- cents off deal, offer consumer savings off regular price of product
Premiums- goods offered either free or at low costs as incentive to buy product
Advertising specialties- promo products imprinted with advertiser’s name, logo, etc.
Point of purchase- displays and demonstrations at point of sale
Contests, sweepstakes, and games- gives consumers chance to win something
Event marketing or event sponsorships
Self liquidating
Cost charged to the consumer that covers the cost
Product placement
Used brand name product in movie, TV show, video game, commercial for another product
Reverse product placement- something comes out of movie
Trade promotions
Used to persuade resellers to carry a brand, give it shelf space, and promote it in ads
Trade promotion tools: Contests, premiums, displays Discounts and allowances Free goods Push money- cash or gifts to dealers or their sales forces to “push” manufacturer’s goods Specialty advertising items
Business promotions
Used to generate business leads, stimulate purchases, reward customers, and motivate salespeople
Business promo tools:
Conventions and trade shows
Sales contest- salespeople or dealers to motivate them to increase sales performance
