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Principles of Marketing
Session 17
Dr Farrah Arif
http://lums.edu.pk/http://lums.edu.pk/sdsb/index.php
There are two types of personal selling activities: one, when the salesperson goes to the customer and the second when the customer goes to the salesperson. The first happens in case of industrial selling in a B2B scenario or in direct marketing where the marketers sales force contacts the end user directly. The second typically happens in retailing.
Personal selling is the interpersonal part of the promotion mix and can include:
Face-to-face communication Telephone communication Video or Web conferencing
Covers a wide range of activities:Order takingOrder gettingCreative selling Relationship building
Salespeople are an effective link between the company and its customers to produce customer value and company profit by:
Representing the company to customers Representing customers to the company Working closely with marketing
It can increase communications between the two groups (Marketing and Sales Functions) by arranging joint meetings and by spelling out when and with whom each group should communicate. The company can create joint assignments.The company can create joint objectives and reward systemsfor sales and marketing.They can appoint marketing-sales liaisonspeople from marketing who live with the sales force and help to coordinate marketing and sales force programs and efforts. The firm can appoint a chief revenue officer (or chief customer officer)a high-level marketing executive who oversees both marketing and sales.
Challenging Task: What should a company do?
Managing the Sales Force
Sales force management is the analysis, planning, implementation, and control of sales force activities
Territorial sales force structure
Product sales force structure
Customer sales force structure
Complex sales force structure
Salespeople are one of the companys most productive and expensive assets.
Increases in sales force size can increase sales and costs Workload approach to sales forces size refers to grouping
accounts into different classes to determine the number of salespeople needed
Careful selection and training increases sales performanceKey talents:Intrinsic motivation.Disciplined work style.The ability to close a sale.The ability to build relationships with customers.
Poor selection increases recruiting and training costs Lost sales Disrupts customer relationships
Careful selection and training increases sales performanceKey talents:Intrinsic motivation.Disciplined work style.The ability to close a sale.The ability to build relationships with customers.
Poor selection increases recruiting and training costs Lost sales Disrupts customer relationships
Training : Web-based
Fixed amounts
Variable amounts
Expenses Fringe benefits
Straight salaryStraight commissionSalary plus bonusSalary plus commission
The average salespersons pay consists of about 67 percent salary and 33 percent incentive pay.
The goal of supervision is to help salespeople work smart by doing the right things in the right waysThe goal of motivation is to encourage salespeople to work hard and energetically toward sales force goals
The goal of supervision is to help salespeople work smart by doing the right things in the right ways
The annual call plan shows which customers and prospects to call on and which activities to carry out. The time-and-duty analysis
Major tool to support salespeople
Sales Force Automation System
Training Sales meetings
Live sales presentations
Servicing accounts
Sales morale and performance can be increased through:
Organizational climateSales quotasPositive incentives (sales meetings; sales contests; honors; merchandise ; cash awards; trips)
The goal of motivation is to encourage salespeople to work hard and energetically toward sales force goals
Formal evaluation forces management to develop and communicate clear standards for judging performance and provides salespeople with constructive feedback and motivates them to perform well.
Sales reports
Call reports
Expense reports
Work in pairs to describe the stages in the selling process for a small company in your community that sells cleaning services to owners of small businesses, such as restaurants, hospitals, and department stores. Role-play the actual selling process, from approach to close, with one team member acting as the salesperson. The other member of the team should act as a customer and raise at least three objections.
The Personal Selling Process
The goal of the personal selling process is to get new customers and obtain orders from them
Pre-approach is the process of learning as much as possible about a prospect, including needs, who is involved in the buying, and the characteristics and styles of the buyers
Objectives
Qualify the prospect Gather information Make an immediate sale
Approaches
Personal visit Phone call Letter
Approach is the process where the salesperson meets and greets the buyer and gets the relationship off to a good start and involves the salespersons:
AppearanceOpening linesFollow-up remarks
Pushy Late
Deceitful Disorganized
Unprepared
Good listeners Empathetic
Honest Dependable
Thorough Follow-up types
Negative Traits Positive Traits
Sales promotion refers to the short-term incentives to encourage purchases or sales of a product or service: Consumer promotions Trade promotions Sales force promotions
Samples Coupons Cash refunds Price packs
Premiums Advertising specialtiesPatronage rewards
Point-of-purchase displays
Demonstrations Contests Sweepstakes Games
Major Consumer Promotion Tools
Discount Allowance
Free goods Specialty advertising
Trade Promotion Tools
Size of the incentive Conditions for participation Promote and distribute the program Length of the program Evaluation of the program
Developing the Sales Promotion Program
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