Marketing Management

29th of June 2011

Personal Selling and Sales Promotion

The Nature of Personal Selling

• Personal Selling: Personal presentation by a firm’s sales force for the purpose of making sales and building customer relationships

• Salespeople are no longer the typical sales people stereotypes we used to think

• Today, buying is about more than the transaction• Sales is about building customer relationships through a

focus on differentiation and linking these to customer’s realisation of value

• Salespeople vary from order takers, to order getters, and relationship builders

The Role of The Sales Force

• Advertising consists of non personal communication whereas personal selling is interpersonal

• Personal selling involves interpersonal interactions between salespeople and customers

• Personal selling allows the opportunity to probe and adjust marketing to fit customer needs

• Personal selling varies from different companies• In services orientated companies, sales team works

directly with customers• In FMCG environment, sales team is more behind the

scenes and works with intermediaries

The Role of The Sales Force

• Linking Company with Customers– Sales force play a critical part of the aboveSales force represent the company to the customer– Develop new customers and communicate information about

products and services– Present products, negotiate terms and prices, closing sales, and

handling objections– Carry our market research and intelligenceSales force represents customer to the company– They champion the customer’s interests and manage

relationships– Communicate customer concerns about products– Develop greater customer value after assessing wants and

needs– Sales force is the company to the end customer

The Role of The Sales Force

The Role of The Sales Force

• Coordinating Marketing and Sales– Sales force and all marketing functions should work

together to create customer value– Unfortunately “feet stuck in the mud” – sales and

“heads stuck in the clouds” – brand marketing– Actions to bring sales and marketing together:

• Increase Joint Communication initiatives• Joint Assignments involving both parties• Joint Objectives and Rewards systems• Appoint Marketing and Sales Liaisons• Marketing Executive to oversee both – Chief Customer

Officer

The Role of The Sales Force

Managing the Sales Force

• Sales Force Management: the analysis, planning, implementation, and control of sales force activities. It includes:– Designing Sales Force Strategy and Structure– Recruiting and Selecting Salespeople– Training Salespeople – Compensating Salespeople – Supervising and Motivating Salespeople– Evaluating Salespeople and Sales force Performance

Steps in Sales Force Management

The Personal Selling Process

• Selling Process: the steps which a salesperson must master including:– Prospecting and Qualifying: identifying qualified potential

customers– Pre-approach: learning as much about the prospective customer– Approach: meeting the customer– Presentation and Demonstration: selling value and solutions to

the customer– Handling Objections: clarifying and overcoming objections– Closing: asking for the order– Follow-up: ensure customer satisfaction and repeat business

• The above steps are transaction orientated

The Personal Selling Process

The Personal Selling Process

• Personal Selling and Managing Customer Relationships– Sometimes companies seek to win and keep

customers– The aim is to build profitable customer relationships– These sales people work with customer teams to

improve products and processes– The initial sale is only the beginning of the longer term

relationship– These sales people practice value selling –

demonstrating and delivering superior customer value– Also involves capturing fair return on value for both

the customer and the company

The Personal Selling Process

• Personal Selling and Managing Customer Relationships– Value Selling Involves:

• Listening to customers• Understanding Customer Needs• Carefully co-ordinating company efforts to create

lasting relationships based on customer value

– The aim is not to just make a sale transaction– The aim is to establish and to build an

enduring relationship between the companies

Sales Promotion

• Sales Promotion: short-term incentives to encourage the purchase or sale of a product or service.

• Factors which have contributed to rapid growth of sales promotions– Pressure to increase product sales– More competition and less differentiation– Decline in advertising efficiency– More deal and value orientated consumers

• More promotion clutter similarly to advertising clutter• Companies have to come up with means and ways of

breaking the clutter• Sales Promotion programmes have to have proper set

objectives and the right tools to fulfil the objectives

Sales Promotion

• Sales Promotion Objectives– Sales promotion objectives vary widely and may be used for

short-term or to enhance involvement– Trade Promotion Objectives:

• Retailers carrying new items and new inventory• Buying ahead and more shelf space

– Sales Promotion Objectives:• More sales force support for current or new products• Getting sales force to sign up new accounts

– Sales promotions are usually used with advertising , personal selling, direct marketing and other mix tools

– Sales promotions should be reinforce the product’s position and build long-term customer relationships

– If executed well short-term excitement and long-term relationships are achieved

Sales Promotion

• Major Sales Promotion Tools– Consumer Promotions: Sales promotion tools used

to boost short-term customer buying and involvement or to enhance long-term customer relationships

• Samples, coupons, refunds, premiums, POS displays, event marketing

– Trade Promotions: Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, advertise it and push it to consumers

– Business Promotions: Sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate sales people

• Conventions and trade shows as well as sales contests

Sales Promotion

Sales Promotion

See you next time.

Cheers Guys!