c




 




 
 c


1. Outline the marketplace conditions that make personal

selling a primary component of a firm¶s promotional mix.
2. Describe the four sales channels.
3. Describe the major trends in personal selling.
4. Identify and briefly describe the three basic sales tasks.
5. Outline the seven steps in the sales process.
6. Identify the seven basic functions of a sales manager.
7. Explain the role of ethical behavior in personal selling.
8. Describe the role of sales promotion in the promotional
mix.
9. Identify the different types of consumer-oriented and
trade-oriented sales promotions.

17-2
 -   

 




 Πinterpersonal influence
ã 


 
process involving a seller¶s promotional
presentation conducted on a person-to-
person basis with the buyer

ã º salesman is someone who sells goods that

won¶t come back to customers who will.´
( nonymous)

17-3
ã Has been a standard business activity for
thousands of years
ã Early peddlers sold goods they manufactured
or imported . . . viewed selling as a secondary
activity
ã In 18th century merica, peddlers sold
directly to farmers and settlers in the West
ã In the 19th century, drummers sold to both
consumers and intermediaries sometimes
using questionable practices and built
negative stereotypes which persist today

17-4
ã Today¶s salesperson is usually a highly-
trained professional
ã Sales professionals take a customer-oriented
approach employing truthful, nonmanipulative
tactics in order to satisfy the long-term needs
of both the customer and the selling firm
ã Today¶s professional salespeople are
problem solvers who seek to develop long-
term relationships with customers

17-5
ã Factor affecting the importance of personal
selling in the promotional mix
Î
   
 
 
  
 
 


   



ü

 ü

  

   
  

    
 

 
    
 

   
  

   
   
   
         
 
  
  
 


    
   

   
   


    

   



17-6
ã A



o Product
Requiring
Personal
Selling

17-7
 - 

c


ã Personal selling occurs through several types

of communication channels including these
fourŒ
oOver-the-Counter
oField Selling
oTelemarketing
oInside Selling

17-8
ã 
 
c
cŒ
personal selling
conducted in retail
and some
wholesale locations
in which customers
come to the seller¶
place of business
o -

Salespeople
Engage in Over-
the-Counter Selling

17-9
  
 Πsales
ã  
 
presentations made
at prospective
customers¶ homes or
businesses on a
face-to-face basis
o 


!


"



#
Type of Field
Sales

17-10
c



c
$%
$

17-11
ã - 
&
- 
&Œ
promotional
presentation involving
the use of the telephone
on an  basis
by salespeople or on an
 basis by
customers who initiate
calls to obtain
information and place
orders
o - - 
&
c
$
o TelemarketingŒ
Popular Selling
Technique
17-12
 %
 Πperforming the functions of
ã %
 
field selling but avoiding travel-related
expenses by relying on phone, mail, and
electronic commerce to provide sales and
product service for customers on a continuing
basis

17-13
 -
 

 


  regular contacts over an
ã "


 Œ
extended period to establish a sustained
seller-buyer relationship

c
 

 Πmeeting customer
ã c
 

 
needs by listing to them, understanding -- and
caring about -- their problems, paying attention
to details, and following through after the sale
ã c


 #offer multiple goods and
services to the same customer

17-14
ã $



' 


 ' #
o Orchestrate events and bring to bear whatever
resources are necessary
to satisfy the customer
o Provide counseling to the customer based on in-depth
knowledge of the product, the market, and the
customer¶s needs
o Solve problems extremely proficiently to ensure
satisfactory customer service over extended time
periods
o Demonstrate high ethical standards and communicate
honestly at all times
o Willingly advocate the customer¶s cause within the
selling organization
o Create imaginative arrangements to meet buyers¶
needs
o rrive well-prepared for sales calls

17-15
ã -
 
-
 Œ
combination of
salespeople with
specialists from other
functional areas to
promote a product
o





oTeam Selling at
c() Computer
Centers

17-16
ã 


*
 (SF )Œ
applications of
computer and other
technologies to make
the sales function
more efficient and
competitive
o enefits include
improved effectiveness
due to improved access
to information, lower
costs, improved product
launches, and attentive
customer service

17-17
 

-

&

ã Three basic sales tasks can be

identifiedŒ
o 


oc
 
o+


$



17-18
  

Πselling, mostly at the

ã  


wholesale and retail levels, that involves
identifying customer needs, pointing them out to
customers, and completing orders
c
 Πpersonal selling involving
ã c
 
situations in which a considerable degree of
analytical decision making on the buyer¶s part
results in the need for skillful proposals of
solutions for the customer¶s needs
+


$


Πindirect type of selling in
ã +


$



which specialized salespeople promote the

firm¶s goodwill among indirect customers, often
by assisting customers in product use

17-19
 - 

 

ã - *%(*c
  


  

17-20
ã 


Œ
personal-selling
function of identifying
potential customers
ã ë
$
ë
$Œ
determining that a
prospect has the
needs, income, and
purchase authority
necessary for being a
potential customer
ã &
o wsing advertising to
identify prospective
customers

17-21
ã *
 Œ salesperson¶s initial contact with
a prospective customer

o 

Πuse of information

collected during the prospecting and
qualifying stages of the sales process and
during previous contacts with the prospect
to tailor the approach and presentation to
match the customer¶s needs

17-22
ã 




Œ
describing a product¶s
major features and
relating them to a
customer¶s problems
or needs
o

(

$
,
!
 

oSupport Tools
Increase the
Effectiveness of
Presentations

17-23
ã (


allows the customer
to experience a good
or service
oEven ads as well
done as this
 
  ad,
can not substitute
for an effective
demonstration ride
in a new
automobile

17-24

 
expressions of sales
ã
 
Œ
resistance by the prospect
oExampleŒ customer¶s ºI don't like the
color´ is probably their way of asking what
other colors are available
oObjections are reasonable and
professional salespeople are prepared to
handle them appropriately

17-25
 c 
Πstages of personal selling where the
ã c 

salesperson asks the customer to make a
purchase decision

ã  '  post-sales activities that often

 'Œ
determine whether an individual who has
made a recent purchase will become a repeat
customer
oHelps build mutually beneficial long-term
relationships

17-26
 +

 







Πctivities of planning,
ã 




organizing, staffing, motivating compensating,
and evaluating and controlling a sales force
to ensure its effectiveness

17-27
ã '


 







 

17-28
ã "
 
oOne of the sales manager¶s greatest
challenges
oCareful selection is important for two
reasonsŒ
Substantial costs involved
Mistakes are costly and detrimental to
customer relations and sales-force
performance

17-29
ã -

oPrincipal methods
used are on-the-job
training, individual
instruction, in-house
classes, and external
seminars
oPopular training
techniques include
instructional
videotapes/DVDs,
lectures, roll-playing
exercises, slides,
films, and interactive
computer programs
17-30
ã 
-

oüeneral organizational alignment may be
based on geography, products, types of
customers, or some combination of these
factors
oA




-
Œ
organizational arrangement that assigns
sales teams to a firm¶s largest accounts

17-31
ã 



 

- 




17-32
ã 

o
 Πthe number of sales
representatives who report to the first level
of sales management
oOptimal span of control is affected by such
factors as complexity work activities being
performed, ability of the individual sales
manager, degree of interdependence
among individual salespersons, and the
extent of training each salesperson receives

17-33
ã +

oEfforts to motivate salespeople usually take
the form of the briefings, information sharing,
and both psychological and financial
encouragement
oPsychological encouragement includes
appeals to emotional needs, recognition, and
peer acceptance
oFinancial encouragement includes monetary
rewards and fringe benefits such as club
memberships and sales contest awards

17-34
ã c


oc

Πincentive compensation
directly related to the sales or profits
achieved by a salesperson
o

$Πfixed compensation payments
made periodically to an employee

17-35
ã .
o verage nnual Pay for Sales Representatives

17-36
ã 


c
o

/

Πlevel of expected sales for
territory, product, customer, or salesperson
against which actual results are compared
oOther measures such as customer
satisfaction, profit contribution, share of
product-category sales, and customer
retention
o nother way to categorize a salesperson¶s
strong pointsŒ
Task, or technical ability
Process, or sequence of work flow
üoal, or end results (output) of sales
performance
17-37
  
%





ã Promotional activities, including personal

sales, raise many ethical questions
ã Sales managers can foster a corporate
culture for an ethical sales environmentŒ
oEmployees understand what is expected of
them
oOpen communication exists between
employees and managers
oManagement leads by example
oEmployees are proud of and loyal to their
organization

17-38
 

 
ã Marketing activities other than personal
selling, advertising, and publicity that
stimulate consumer purchasing and dealer
effectiveness; includes displays, trade shows
and expositions, demonstrations and various
nonrecurrent selling efforts
oc

c
 

o-

-
 

17-39
ã .0
oCurrent Spending by
Companies for Different
Sales Promotion

17-40
ã -
 .1
oSeven Most Frequently wsed Consumer
Promotion Techniques

17-41
ã c

c
 

oc

"

c
offer discounts on the
purchase price. Nearly $5 billion
redeemed annually




(FSIs) in
Sunday newspapers account for
about 75 percent of all coupons

"
offer cash back to consumers
with proof of purchasing one or more
products

17-42
ã -

o dvertisement
wses Coupons
in Free
Standing Insert
to Promote
New Food Line

17-43
o
 
2

&
2
 


  refers to the free distribution

of a product in an attempt to obtain future
sales. ºTry it, you'll like it.´


& is a specially packaged
item that gives the purchaser a larger
quantity at the regular price.

are items given free or at a
reduced cost with the purchases of other
products

17-44
oc



'

&

c

require
entrants to solve
problems or write
essays -- they may
also require proofs of
purchase
'

&
select
winners by chance --
no product purchase
is necessary

17-45
o
$*
 ·ºTrinkets and Trash´]

$*
·ºTrinkets
Sales promotion technique that places the
advertiser's name, address, and advertising
message on useful articles that are then
distributed to target markets
More than $8 billion worth of specialty
advertising items are given out annually

17-46
ã -

-
 

Sales promotion that appeals to

marketing intermediaries rather than to
consumers
-

'

Πdeals offered to
o-

'


wholesalers and retailers for

purchasing or promoting specific
products
o 



3  4


Πa display or other



promotion located near the site of the
actual buying decision

17-47
 '
vendors¶ displays and the
o-

'
Œ
demonstrations at sites often organized by
industry trade associations, perhaps as
part of these association¶s annual meetings
or conventions.
o(

2
2




are run by the manufacturers to
induce retailers and their salespeople to
increase sales and to promote product

$ is an incentive that gives
retail salespeople cash rewards for
every unit of a product they sell

17-48
ã +



 

oSince many sales promotions result in

direct consumer responses, marketers can
relatively easily track their effectiveness
o s with other methods, marketers must
weigh the cost against the benefits

17-49
ã  


 
oSales promotions provide opportunities for
unscrupulous companies to take advantage
of consumers
oTrade allowances, particularly slotting
allowances, have been criticized for years
as a form of bribery

17-50
c


17-51