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Personal selling

Personal presentations by the firm's sales force for the purpose of making sales and building customer relationships

Salesperson

individual representing a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, relationship building

The Role of the Sales Force

1. serve as a critical link between a company and its customers.
2. coordinate marketing and sales

Sales force management

Analyzing, planning, implementing, and controlling sales force activities

Major Steps in Sales Force Management

includes designing sales force strategy and structure, as well as recruiting, selecting, training, compensating, supervising, and evaluating the firm's salesperson

Types of Sales Force Structure

Territorial: Assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company's full line
Product: Salesperson specialize in selling only a portion of the company's products or lines
Customer (or market): Salespeople specialize in selling only to certain customers or industries
No single structure is best for all companies and situations. Each company should select a sales force structure that best serves the needs of its customers and fits its overall marketing strategy

Sales Force Size

may range from only a dew to thousands. Many companies use some form of workload approach to set sales force size. Company first groups accounts into different classes according to size, account status, or other factors. Then determines the number of salespeople needed to call on each class of accounts

Outside sales force (or field sales force)

Salespeople who travel to call on customers in the field. Sales assistants provide administrative backup for outside salespeople.

Inside sales force

Salespeople who conduct business from their offices vis telephone, the internet, or visits from prospective buyers. Some inside salespeople provide support for the outside sales force, feeling them to spend more time selling to major accounts and finding new products. For example, technical sales support people provide technical information and answers to customers' questions. Sales assistants provide administrative backup for outside salespeople.

Team selling

using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts. As products become more complex, and as customers grow larger and more demanding, a single salesperson simply cant handle all of a large customer's needs. This is when, most companies start using team selling.

Recruiting and Selecting Salespeople

The best salespeople possess intrinsic motivation, a disciplined work style, the ability to close a sale, and, perhaps most important, the ability to build relationships with customers. Research conducted by Gallup Consulting, a division of the well-known Gallup polling organization, suggests that the best salespeople possess four key talents: intrinsic motivation, a disciplined work style, the ability to close a sale, and, perhaps most important, the ability to build relationships with customers.

Training Salespeople

Teach salespeople about different types of customers and their needs, buying motives, and buying habits, how to sell effectively, basics of the selling process, how to know and identify themselves with the company, its products, and the strategies of major competitors. Companies provide continuing sales training via seminars, sales meetings, and Internet e-learning throughout the salesperson's career

Compensating Salespeople

Compensation consists of four elements: fixed amount, variable amount, expenses, fringe benefits.
Four basic types of compensation plans: straight salary, straight commission, salary plus bonus, salary plus commission

Supervising Salespeople

Goal: help salespeople work smart by doing the right things the right way.

Sales force management tools: Call plan- Shows which customers and prospects to call on and which activities to carry out. Time-and-duty analysis

Selling on the Internet

Benefits: 1. Conserves salespeople's valuable time, saves travel dollars, and gives them a new vehicle for selling the servicing accounts. 2. Gives customers more control over the sales process

Drawbacks: 1. Expensive 2. Intimidates low-tech salespeople or clients

Motivating Salespeople

Goal: Encourage salespeople to work hard and energetically toward sales force goals

Management boost sales force morale by: organization climate, sales quotas, positive incentives, sales meetings, sales contest

Organizational climate

describes the feeling salespeople have about opportunities, value, and rewards for a good performance

Sales quotas

Standard that states the amount a salesperson should sell and how sales should be divided among the company's products

Sales meetings

Provides social occasions, breaks from the routine, chances to meet and talk with company brass, and opportunities to air feelings and identify with a larger group

Steps in the Selling Process

Prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, follow-up

Prospecting and qualifying

Prospecting: identifying qualified potential customers
Qualifying: identifying good ones and screening poor ones

Preapporach

Learning as much as possible about a prospective customer before making a sales call

Approach

meeting the customer for the first time

Presentation and demonstration

Presentation: telling the value story to the buyer, showing how the company's offer solves the customer's problems

Handling objections

Seeking out, clarifying, and overcoming any customer objections to buying

Closing

asking the customer for an order

Follow-up

Following up after the sale to ensure customer satisfaction and repeat business

Solutions apporach

calls for good listening and problem-solving skills. The aulities that buyers dislike mist in salespeople include being pushy, late, decietful, unprepared, disorganized, or overly talkative. The qualities the most value include good listening, empathy, honesty, dependability, thoroughness, and follow-through

Value selling

Listening to customers, understanding their needs, carefully coordinating the whole company's efforts to create lasting relationships based on customer value

Sales promotion

short-term incentives to encourage the purchase or sales of a product or a service

Targets of Sales Promotion

Final buyers (consumer promotions), retailers and wholesalers (trade promotions), business customers (business promotions), members of the sales force (sales force promotions)

Factors Contributing to the 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

Sales Promotion Objectives

Are used together with other promotion mix tools. Help reinforce product's position and build long term customer relationships

Consumer promotion

Sales promotion tools used to boost short-term customer buying and involvement or to enhance long-term customer relationships

Consumer Promotion Tools

Samples- offers of a trail amount of a product.

Coupons- certificates that save buyers money when they purchase specified products.

Cash refunds (or rebates)- price reduction occurs after purchase to the manufacturer, which then refund part of the purchase price

Price packs (or cents-off deals)- offer consumers savings off the regular price of a product

Premiums- goods offered either free or at low cost as an incentive to buy a product

Advertising specialties (or promotional products) - useful articles imprinted with an advertiser's name, logo, or message

Point-of-purchase (POP) promotions- displays and demonsrtations that take place at the point of sale

Contests, sweepstakes, and games- give consumers the chance to win something

Event marketing- creating a brand-marketing event or serving as a sole or participating sponsor of events created by others

Trade promotion

Sales promotion tools used to persuade to carry a brand, give it shelf space, promote it in advertising, and push it to consumers

Trade Promotion Tools

Contests, premiums, displays, discounts/price-off/off-invoice/off-list, allowances. free good, push money, specialty advertising items

Business promotion

Sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople

Business Promotion Tools

Include many of the same tools used for consumer or trade promotions.
Conventions and trade shows- Help vendors find new sales leads, contact customers, introduce new products, etc.
Sales contests- Contest for salespeople or dealers to motivate them to increase their sales performance over a given period

Developing the Sales Promotion Program

Marketers must determine the size of the incentive, set conditions for participation, determine how to promote and distribute the promotion program itself, set the length of promotion, evaluate the promotion

The difference between an inside sales force and an outside sales force is that, an outside sales force ________.

travels to call on customers in the field

Time-and-duty analysis is a ________ tool used by managers for their salespeople.

supervision

If a company assigns individual teams of salespeople to big retail customers, it is most likely to have a ________ sales force structure.

market

Vintage is one of the largest companies in the country. Vintage produces a vast range of goods which includes cars, cameras, home appliances, personal-care products, and food items. The company also competes vigorously in the services market as it runs hotels, hospitals, and schools. Vintage entered the real-estate industry in the last decade and proved to be successful in this field too. Which of the following would classify as a business promotion tool used by Vintage?

a trade show depicting the new villas and condominiums that are being developed under the Well Homes project

________ are sales promotion tools used to generate new leads, stimulate purchases, reward customers, and motivate salespeople.

Business promotions

Which of the following is a supervision tool used by managers for their salespeople?

call plan

Vintage is one of the largest companies in the country. Vintage produces a vast range of goods which includes cars, cameras, home appliances, personal-care products, and food items. The company also competes vigorously in the services market as it runs hotels, hospitals, and schools. Vintage entered the real-estate industry in the last decade and proved to be successful in this field too. Which of the following would classify as a trade promotion tool used by Vintage?

off-invoice offers for a new product being sold for the first three months

A sweepstakes calls for consumers to submit their names for a drawing.

true

Sales promotions should help in creating short-term sales rather than building long-term customer relationships.

false

Preapproach is the sales step in which the salesperson meets the customer for the first time.

false

If a company sells only one product line to one industry with customers in many locations, it would use a territorial sales force structure.

true

Salespeople turn in sales reports for which they are partly or wholly reimbursed.

false

Conventions and trade shows are tools for business promotions.

true

Sales quota is a type of motivation technique.

true

"Buy one, get one free" is an example of ________.

price packs

La Viva, a chain of clubs and resorts, is known to be one of most preferred options for consumers seeking hospitality of a good standard. La Viva follows a mission which stresses long-term relationship building. It does not offer customers frequent price discounts which do increase footfalls, but fail to add value to the company. Which of the following statements, if true, strengthens the argument that La Viva uses the relationship-building approach over the transaction-oriented approach?

The largest proportion of customers coming to La Viva are holders of a "Lifetime with La Viva" card or have been referred by satisfied customers.

________ is the sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call.

preapproch

________ are certificates that save buyers money while they purchase specified products.

coupons

Freaky Lays, a leading bottled juice manufacturer, introduces a new range of potato chips. To promote this new product, it offers a packet of chips free with every bottle of Freaky Lays juice. Though very expensive, it is the most effective method of promotion. Which of the following promotional tools has Freaky Lays used here?

samples

Which of the following statements is true of salespersons?

They represent a company to customers by communicating and selling

Which of the following examples represents a product sales force structure?

Cartlon Computers sells its highly specialized computers through special teams which have received training in the configuration, uses, and USPs of a single model of its computers.

Which of the following examples represents a product sales force structure?

close relationships with important customers

Howard Genks works as a sales representative in a company that produces all kinds of hospital supplies. Recently, a prospective buyer walked into the store and spoke of how he was starting a non-profit organization to provide free treatment to children with cancer and required all furnishings for the ward to be designed specially for children. Howard quickly showed the client the range of beds and other hospital requirements the store had which were designed specifically for children to use. They also had rounded edges and colors that would appeal to children. Which of the following steps of the sales process is Howard executing in this scenario?

presentation and demonstration

Which of the following statements is true of team selling?

It includes experts from many areas like marketing, operations, finance, and others.

________ are offers of a trial amount of a product.

samples

In which of the following sales force structures is each salesperson assigned to an exclusive geographic area?

territorial sales force structure

Inside salespeople conduct business from their offices via telephone, the Internet, or visits from buyers.

true

The last step in the selling process is closing.

false

Commissions and bonuses are the variable amounts of compensation.

true

One manner in which manufacturers gain more shelf space for their products is through allowances given to retailers.

true

Which of the following is an advantage of an outside sales force?

It provides face-to-face collaboration and relationship building.

In which of the following steps in the sales process does the salesperson meet the customer for the first time?

approach

Koffee, a brand of instant coffee, offers a free coffee mug with its logo imprinted on it with the purchase of every packet of its instant coffee powder. Which of the following promotional tools has Koffee used here?

advertising specialities

Carmalax is the country's largest vendor of printers and digital imaging services. Carmalax is known for its highly-trained and experienced sales force which has provided the company with exemplary service for decades. Much of the success Carmalax enjoys has been attributed to the fact that the management of Carmalax treats its sales division with respect and recognition. Which of the following statements, if true, would reflect this positive approach to managing the sales force that is practised by Carmalax?

The salespeople at Carmalax are invited to frequent sales meetings to voice their concerns and rewarded well for individual and group performance.

Cream Bay has come out with a new range of ice creams. To promote its new products, it has set up kiosks outside malls which offer free samples of the ice cream to the potential customers. Which of the following promotional tools has Cream Bay adopted?

point-of-purchase promotions

Which of the following is an action that is primarily associated with a member of the outside sales force?

calling on potential and existing customers in the field

Which of the following is true of the stage of presentation in the selling process?

telling the value story to the buyer, showing how the company's offer solves the customer's problems

Sheldon Parks works as a salesperson in a large company selling vending machines and beverages like coffee, tea, and hot chocolate. He recently met Rosa Thoms, a potential client who heads the administration department of a large MNC, and spoke to her at length to determine what kind of vending machine and beverages the company would need. Depending on the client's specifications, he provided a small team of employees with samples and obtained their feedback. Which of the following steps of the sales process is Sheldon executing in this scenario?

presentation and demonstration

Sales Force Automation System

Computerized, digitized sales force operations that let salespeople work more effectively anytime, anywhere

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