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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