Marketing: An Introduction
Fourteenth Edition
Chapter 13
Personal Selling and Sales
Promotion
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Objectives Outline (1 of 4)
13.1 Discuss the role of a company’s salespeople in
creating value for customers and building customer
relationships.
13.2 Identify and explain the six major sales force
management steps.
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Objectives Outline (2 of 4)
13.3 Discuss the personal selling process, distinguishing
between transaction-oriented marketing and relationship
marketing.
13.4 Explain how sales promotion campaigns are developed
and implemented.
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First Stop: Salesforce You Need a
Great Sales Force to Sell Salesforce
Salesforce’s “Customer
Success Platform” helps
its customers
“supercharge their sales.”
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Objective Outline 13-1
Discuss the role of a company’s salespeople in creating
value for customers and building customer relationships.
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Personal Selling (1 of 2)
• Personal presentations by a sales force to engage
customers, make sales, and build customer relationships
• Salesperson: Represents a company to customers by
performing the following activities:
– Prospecting and communicating
– Selling and servicing
– Gathering information and building relationships
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Personal Selling (2 of 2)
Professional selling takes more than fast talk and a
warm smile to sell expensive GE locomotives.
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The Role of the Sales Force
• Links the company with its customers
• Coordinates marketing and sales
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Objective Outline 13-1 Summary
• Personal selling—engaging customers, making sales, and
building customer relationships
• A sales force serves as a critical link between a company
and its customers.
– Prospecting, communicating, selling, servicing,
information gathering, and relationship building
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Objective Outline 13-2
Identify and explain the six major sales force management
steps.
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Sales Force Management
Sales force management—analyzing, planning,
implementing, and controlling sales force activities
Major Steps in Sales Force Management
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Designing the Sales Force Strategy
and Structure
• Types of sales force structures:
– Territorial
– Product
– Customer (or market)
• Salespeople can be specialized by
– Customer and territory
– Product and territory
– Product and customer
– Territory, product, and customer
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The Sales Force Structure
Inside selling is growing
much faster than in-
person selling.
And a growing proportion
of outside selling is now
done over a phone or
mobile device.
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Sales Force Size
• May range from only a few to thousands
• Companies may use the workload approach to set sales
force size.
– Accounts grouped into classes based on size, status,
or the amount of effort required to maintain the account
– Number of salespeople needed to call on each class of
accounts is then determined
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Other Sales Force Strategy and
Structure Issues
Outside sales force (field sales force)
• Travels to call on customers in the field
Inside sales force
• Conducts business from their offices via telephone, the
Internet, or visits from prospective buyers
– Technical sales support people
– Sales assistants
– Telemarketers and online sellers
Team selling
• Teams of people from different departments used to
service large, complex accounts
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Recruiting and Selecting Salespeople
• A company should analyze the sales job and the
characteristics of its most successful salespeople.
• Sources for the recruitment of salespeople:
– Referrals from current salespeople
– Employment agencies
– Internet and online social media
– Posting ads and notices
– College placement services
– Salespeople at other companies
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Training Salespeople
• Goals of training are to teach salespeople
– About different types of customers
– How to sell effectively
– About the company’s objectives, organization,
products, and the strategies of competitors
• Online training builds sales skills using videos, Internet-
based exercises, or simulations.
– Virtual instructor-led training (VILT)
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Compensating Salespeople (1 of 2)
• Elements of compensation
– Fixed amount—salary
– Variable amount—commissions or bonuses
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Compensating Salespeople (2 of 2)
A good compensation plan both motivates salespeople and
directs their activities.
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Supervising Salespeople
• Help salespeople work smart by doing the right things in
the right ways
• Tools of supervision:
– Call plan
– Time-and-duty analysis
– Sales force automation system
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Figure 13.2 How Salespeople
Spend Their Time
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Motivating Salespeople
• Encourage salespeople to work hard and energetically
toward sales force goals
• Management can boost sales force morale and
performance through its
– Organizational climate
– Sales quotas
– Positive incentives
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Evaluating Salespeople and Sales
Force Performance
• Management gets information about its salespeople
– From sales, call, and expense reports
– By monitoring the sales and profit performance data in
the salesperson’s territory
– Through personal observation, customer surveys, and
talks with other salespeople
• Formal evaluations force management to develop
standards for judging performance.
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Social Selling: Online, Mobile, and
Social Media Tools
• Provide salespeople with powerful tools for
– Identifying and learning about prospects
– Engaging customers
– Creating customer value
– Closing sales
– Nurturing customer relationships
• Help sales forces to be more efficient, cost-effective, and
productive
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Objective Outline 13-2 Summary
• Sales force management—analyzing, planning,
implementing, and controlling sales force activities
• Major steps in sales force management:
– Designing sales force strategy and structure, recruiting,
selecting, training, compensating, supervising, and
evaluating the firm’s salespeople
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Objective Outline 13-3
Discuss the personal selling process, distinguishing between
transaction-oriented marketing and relationship marketing.
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Figure 13.3 Steps in the Selling
Process
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The Personal Selling Process (1 of 2)
• Value selling—demonstrating and delivering superior
customer value capturing a return on that value that is fair
for both the customer and the company
• Value selling requires:
– Listening to customers
– Understanding customers’ needs
– Coordinating the company’s efforts to create lasting
relationships based on customer value
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The Personal Selling Process (2 of 2)
Sales management’s
challenge is to transform
salespeople into company
advocates for value.
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Objective Outline 13-3 Summary
• Selling involves a seven-step process:
– Prospecting and qualifying, preapproach, approach,
presentation and demonstration, handling objections,
closing, and follow-up
• Relationship marketing
– Profitable long-term relationships
– Based on customer value and satisfaction
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Objective Outline 13-4
Explain how sales promotion campaigns are developed and
implemented.
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Sales Promotion (1 of 2)
• Short-term incentives to encourage the purchase or sale of
a product or a service
• Sales promotion targets
– Final buyers—Consumer promotions
– Retailers and wholesalers—Trade promotions
– Business customers—Business promotions
– Members of the sales force—Sales force promotions
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Sales Promotion (2 of 2)
• Many factors have contributed to the rapid growth of sales
promotion.
– Product managers view promotion as an effective
short-run sales tool.
– Competitors use sales promotion to differentiate their
offers.
– Advertising efficiency has declined.
– Sales promotions help attract today’s more thrift-
oriented consumers.
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Sales Promotion Objectives
Consumer promotions
• To urge short-term customer buying or boost customer-
brand engagement
Trade promotions
• To get retailers to carry new items and more inventory, buy
ahead, or promote the company’s products and give them
more shelf space
Business promotions
• To generate business leads, stimulate purchases, reward
customers, and motivate salespeople
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Consumer Promotion Tools (1 of 2)
Tools Description
• Offers of a trial amount of a product
Samples
• Most effective and expensive
• Certificates that save buyers money when
Coupons
they purchase specified products
• Price reduction occurs after the purchase
• Customer sends proof of purchase to the
Rebates (cash refunds)
manufacturer, which then refunds part of
the purchase price by mail
Price packs (cents-off • Offers consumers savings off the regular
deals) price of a product
• Goods offered either free or at low cost as
Premiums
an incentive to buy a product
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Consumer Promotion Tools (2 of 2)
Tools Description
Advertising specialties • Useful articles imprinted with an
advertiser’s name, logo, or message that
are given as gifts to consumers
Point-of-purchase • Displays and demonstrations that take
(POP) promotions place at the point of sale
Contests, • Give consumers the chance to win
sweepstakes, and something
games
Event marketing • Creating a brand-marketing event or
(or event sponsorships) serving as a sole or participating sponsor of
events created by others
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Event Marketing
#HappiMess campaign, Delta Faucet shows target
consumers firsthand how well its low-flow showerheads
worked under really tough conditions.
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Trade Promotions
• Used to persuade resellers to carry a brand, give it shelf
space, and promote it in ads
• Trade promotion tools:
– Contests, premiums, and displays
– Discounts and allowances
– Free goods
– Push money
– Specialty advertising items
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Business Promotions
• Used to generate business leads, stimulate purchases,
reward customers, and motivate salespeople
• Business promotion tools:
– Conventions and trade shows
– Sales contests
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Developing the Sales Promotion
Program
• Sales promotion program design decisions:
– Determine the size of the incentive
– Set conditions for participation
– Determine how to promote and distribute the
promotion program
– Set the length of the promotion
– Evaluate the promotion
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Objective Outline 13-4 Summary
• Sales promotion objectives—consumer promotions, trade
promotions, and business promotions
• Consumer promotion tools—samples, coupons, rebates,
price packs, and premiums
• Trade promotion tools—contests, premiums, and displays,
discounts and allowances, free goods, push money, and
specialty advertising items
• Business promotion tools—conventions and trade shows,
and sales contests
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Objectives Outline (3 of 4)
13.1 Discuss the role of a company’s salespeople in creating
value for customers and building customer relationships.
13.2 Identify and explain the six major sales force
management steps.
Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved
Objectives Outline (4 of 4)
13.3 Discuss the personal selling process, distinguishing
between transaction-oriented marketing and relationship
marketing.
13.4 Explain how sales promotion campaigns are developed
and implemented.
Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved
Copyright
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