copyright © houghton mifflin company. all rights reserved. 18–1 what is personal selling?...

Copyright © Houghton Mifflin Company. All rights reserved. 18–1

What Is Personal Selling?

• Personal Selling

–Paid personal communication that informs customers and persuades them to buy products• Most adjustable to customer information needs

• Most precise (targeted) form of promotion methods

• Most expensive element in promotion mix


General Steps in the Personal Selling Process

FIGURE 18.1


Prospecting for Customers

• Prospecting

–Developing a list of potential customers• Sales records, trade shows, commercial

databases, newspaper announcements, public records, telephone directories, trade association directories

• Reponses to advertisements with information request forms

• Referrals—recommendations from current customers


Evaluating Prospects

• Preapproach (before contacting the customer)– Finding and analyzing information about the prospect

• Specific product needs• Current use of brands• Feelings about available brands• Personal characteristics

– Additional research• 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


Approaching the Customer

• Approach

–The manner in which a salesperson contacts a potential customer• Purpose is to gather information about the buyer’s

needs and objectives

• Important to create a favorable first impression and build rapport with prospective customer

–Typical approaches• Referral by another customer to a prospective

customer

• “Cold canvass” call without prior introduction to the customer


Making the Presentation

• During the Presentation

– Attract and hold the prospect’s attention.

– Stimulate interest in the product.

– Spark a desire for the product.

– Listen and respond to the prospect questions and comments.

• Ways to Enhance the Presentation’s Effects

– Have the prospect touch, hold, or use the product.

– Use audiovisual technology to heighten the impact of the presentation.


Overcoming Objections

• Anticipate objections and counter them during the presentation

• Generally, best to handle objections as they arise


Closing the Sale

• Closing

– The stage in the selling process when the salesperson asks the prospect to buy the product

• Closing strategies

– “Trial” closing: asking questions (what, how, or why) that assume the customer will buy the product

– Asking for a tryout order: low-risk way for customer to try out the product


Following Up

• Determining if the delivery and setup of order was completed to the customer’s satisfaction

• Ascertaining the customer’s future product needs


What Is Sales Promotion?

• Sales Promotion

–An activity and/or material that acts as a direct inducement to resellers or salespeople to sell a product or consumers to buy it

–Encourages product trial and purchase by adding value to the product

–Facilitates or is facilitated by personal selling and advertising

–Use has grown dramatically over the last 20 years at the expense of traditional advertising


Sales Promotions Like This Provide Incentives to Customers

Reprinted with permission of LORD’S & LADY’S Hair Salon, Inc.


What Is Sales Promotion? (cont’d)

• Deciding Which Sales Promotion Method to Use

–Product characteristics

–Target market characteristics

–Distribution channel(s)

–Number and types of resellers

–Competitive and legal environment


Consumer Sales Promotion Methods

• Consumer sales promotion methods encourage consumers to patronize specific stores or to try particular products

• Coupons

– Written price reductions used to encourage consumers to buy a specific product

– Effective coupons are easily recognized and state the offer clearly

– Advantages: generate brand awareness and interest and reward brand loyalty

– Disadvantages: Fraud and misredemptions; consumer ill-will from stock-outs during promotions


Who Uses Coupons?

Source: Promotion Marketing Association, press release, August 30 2004, www.couponmonth.com/pages/news.htm.

Income % Using Coupons

< $25,000 77

$25,000 – 50,000 79

$50,000 – 75,000 80

> $75,000 74


Consumer Sales Promotion Methods (cont’d)

• Cents-Off Offers

–Let buyers pay less than the regular price to encourage purchase

• Money Refund

–Offers consumers money when they mail in a proof of purchase, usually for multiple product purchases

• Rebate

–Sends consumers a specific amount of money for making a single product purchase



• Frequent-User Incentives

– Loyalty programs reward frequent buyers

• Point-of-Purchase Displays

– Signs, window displays, display racks, and similar means used to attract customers and to encourage immediate purchases

• Demonstrations

– Used temporarily to encourage trial use and purchase of a product or to show how a product works.

– Highly effective yet costly in practice


Consumer Sales Promotions Methods: Frequent User Incentives

Reprinted with permission of the Sperry & Hutchinson Company, Inc.



• Free Samples

– Free products given out to encourage trial and purchase

– Used to increase sales volume and obtain desirable distribution for fast turnover products

– The most expensive form of sales promotion

• Premiums

– Items offered free or at a minimal cost as a bonus for purchasing a product

– Premium must match both the target market and the brand’s image.

– Premiums must be easily recognizable and desirable.



• Consumer Contests and Games

– Individuals compete for prizes based on analytical or creative skills

– Used to generate retail traffic and to increase exposure to promotional messages

• Consumer Sweepstakes

– A sales promotion in which entrants submit their names for inclusion in a drawing for prizes

– Used more than contests and attract more widespread interest

copyright © houghton mifflin company. all rights reserved. 18–1 what is personal selling?...

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