15 Personal Selling

18Personal Selling/Sales Promotions1Personal Sellinginterpersonal promotional process involving a sellers person-to-person presentation to a prospective buyer.

2Characteristics of Personal SellingCommunication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message FlexibilityPersonal SellingDirect and face-to-face HighMuchImmediateTwo-wayYesYesSlow Tailored to prospect3Importance: almost every company can benefit from personal selling10% of workforce (how many have? How many would like to?)Often largest operating expense (up or out; car dealers)Customer contact (info & customer impressions)

Intro to Personal Selling4Sales management: decisionsSales force# (of salespeople; big issues with commissions, customers and turnover)CompensationStraight salary: most security, control, and simplicityStraight commission (most incentive)Direct: SalaryIndirect: part of firm earningsCompensationAlign incentive with firm interest (Sears)Combination: most popular (some security and incentivesSupervision/Training

5Who to serve?Sales territory: geographic area; clear responsibility (overlap; lead in another)Major accounts: special treatment for large (fleet sales for cars)

6Selling techiquesSelling techniquesCustomers (80-20 rule)3 sales presentationsPrepared: more talk, canned leads to trial close, low skill (telemarketing)Consultative: listen, less talk, help solve problems, customers differ, high skillSelling formula: start prepared then steps outlined

7Job of Personal Selling (1)Duties:Order getting: without order getters, many of the products we now rely on ranging from mutual funds to air conditioners might have died in the market introduction stageSeek new clientele with sales presentationProspecting: follow all leads (allocate time on potential) insurance, graduate

8Job of Personal Selling (2)Duties (cont)Order takingServe current customers and complete routine salesRegular route and customersLow aggression and pressure: pejorative9Job of Personal Selling (3)Duties (cont)Supporting salespeople: no selling, help order getters & order takersMissionary: entry levelGoodwill, stimulate demand for productsTasks: training, coop ads, sales promotion (increase sales 2-3x); drugsTechnical specialists: often after o.g. & o.t. visitScientists and engineersProvide details on complex processes (installation, maintenance etc.)May mix three jobs (retraining people)10Sales PromotionConsumerSales PromotionTrade Sales Promotion Sales PromotionTargetsCopyright 2000 by Houghton Mifflin Company. All rights reserved.17-11Tools for Consumer Sales PromotionCoupons and RebatesPremiumsLoyalty Marketing ProgramsContests & SweepstakesSamplingPoint-of-Purchase PromotionPopular ToolsforConsumer SalesPromotion

Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-12Sales Promotion Methods for ConsumersCoupons Discounts on the purchase price of a good or service

Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-13Trial and purchase: 90% of new products fail, many because of insufficient trial; new brands are often not recognized as truly different and so advertising alone cant induce trial; sample often include a coupon to induce both trial and repurchaseIncreased consumption: identify new uses for product (Arm&Hammer); use promotions that attract nonusers of a product category (price only effective promotion); attract users of competitor (Pepsi Challenge sampling plan)Defending: retain customers through loading (bonus packs, coupons)Targeting: event sponsorships; sampling is geographic segmentingCoupons are a written price reduction used to stimulate trial of a new or established product, to increase sales volume quickly, to attract repeat purchasers, or to introduce new package sizesor features and usually reduce the purchase price of an itemSales Promotion Methods for ConsumersPremiums Items given free or at a reduced cost

Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-14Premiums are items offered free or at a minimum cost as a bonus for purchasing a product. In-pack (cereal), on-pack, containerSales Promotion Methods for ConsumersLoyalty ProgramsReward regular customers

Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-15Frequent user incentives such as frequent flyer programs offered by most airlines reward consumers who engage in frequent (repeat) purchases, to foster customer loyalty to a specific company or group of cooperating companies that provide extra incentives for patronage.Contests

During the annual search, which includes both the U.S. and Canada, the grandchildren, children, spouses and friends of outstanding grandmas are invited to write in and tell us, in 100 words or less, why their grandmas are the greatest.Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-16Consumer contests are based on the analytical or creative skill of contestants who compete for prizes. This method is used to generate traffic at the retail level.SweepstakesConsumer Sweepstakes - Chance

Universal Studios Hollywood Terminator 2:3D Sweepstakes OFFICIAL GIVEAWAY RULES; NO PURCHASE NECESSARY ENTRY: To enter the Universal Studios Hollywood Terminator 2:3D Sweepstakes, register your name and information (no password required). Completed entries must be received by 11:59pm PST on June 1, 2006 to be eligible for the Grand Prize. Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-17The entrants in a consumer sweepstakes submit their names for inclusion in a drawing for prizes. No skill is needed.Sales Promotion Methods for ConsumersSamplingIn store, mail, door-to-doorHigher response rates than coupons

http://www.thefreesite.com/freesamples.htm

Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-18Samples: offering product free (or very cheap); trial size; demonstrationSales Promotion Methods for ConsumersPoint-of-Purchase DisplaysSigns, Window displays, Counter pieces, Display racks to attract customers70% purchase decisions in-store

Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-19The Role of Trade Sales PromotionImprove trade relationsGain new distributorsBuild or reducedealer inventories Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-20Tools for Trade Sales PromotionTrade AllowancesPush MoneyUnique ToolsforTrade SalesPromotion

Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-21