Personal Selling and Sales Promotion

Intro to Marketing

Chapter 17

Personal SellingInterpersonal influence process involving a seller’s promotionalpresentations conducted on a person-to-person basis with the buyer. Used when:

– Consumers are geographically concentrated and small in number.

– The product is expensive, complex, custom-made, requires special handling, or involves trade-ins.

– The price is high

NetJetsExecutive JetA Product Requiring Personal Selling

Variable Conditions That Favor Personal Selling

Conditions That Favor Advertising

Consumer

Product

Geographically concentratedRelatively low numbersExpensiveTechnically complexCustom madeSpecial handling requirementsTransactions frequently involve trade-ins

Geographically dispersed

Relatively high numbersInexpensiveSimple to understandStandardizedNo special handling requirementsTransactions seldom involve trade-ins

Price Relatively high Relatively low

Channels Relatively short Relatively long

Four Sales Channels Over-the-counter selling

– Retail and some wholesale where customers come to them

Field selling - presentations made at the customers home or business– An emerging trend in field selling is team

selling where the salesperson is joined by specialists for other areas of the firm.

Telemarketing Inside selling – by phone, mail, electronic

– For customers who need answers to frequently asked questions

Figure 17.1: Starbuck Offers Personalized Over-the-Counter Selling

Figure 17.1: Starbuck Offers Personalized Over-the-Counter Selling

Trends in Personal Selling Relationship Selling

– salesperson builds a relationship with a customer over an extended period of time.

Consultative Selling– listening to customers, understanding &

caring about their problems, paying attention to details, and following through after the sale.

Team Selling

Better Homes and Gardens Real Estate Service

Another Type of Field Sales

Better Homes and Gardens Real Estate Service

Another Type of Field Sales

Sales Tasks

Order Processing

- selling at retail and wholesale levels Creative Selling

– Skillful proposals of solutions by the sales person

Missionary Sales– Indirect selling, sells the image of the firm

Use of Endorsements in a Creative Selling

Strategy

The Sales Process

1. Prospecting & Qualifyingidentifying potential customers

determining whether or not the prospect can buy it

2. Approach Initial contact of salesperson with customer

3. Presentation the seller describes the product’s major

features and strengths

4. Demonstrations– allow the customer

to become involved

5. Handling Objections6. Closing

– The “If I can show you” technique– The alternative-decision– The SRO (standing room only)– Silence– Extra-inducement closes

7. Follow-up

Sales Process (cont.)

Sales Promotion

Those marketing activities, other than personal selling, advertising, and publicity, that stimulate consumer purchasing and dealer effectiveness.

Sales Promotion

Coupons & Refunds Samples Contests Specialty

– Trinkets Point-of-Purchase Displays Trade Shows Dealer Incentives