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Marketing:AnIntroductionFifteenthEditionChapter13PersonalSellingandSalesPromotionCopyright©2023,2020,2017PearsonEducation,Inc.AllRightsReservedObjectivesOutline(1of2)13.1Discusstheroleofacompany’ssalespeopleinengagingcustomers,creatingcustomervalue,andbuildingcustomerrelationships.13.2Identifyandexplainthesixmajorsalesforcemanagementsteps.ObjectivesOutline(2of2)13.3Discussthepersonalsellingprocess,distinguishingbetweentransaction-orientedmarketingandrelationshipmarketing.13.4Explainhowsalespromotioncampaignsaredevelopedandimplemented.FirstStop:Salesforce:YouNeedaGreatSalesForcetoSellSalesforceSalesforce’scloud-based“CustomerSuccessPlatform”providesawidearrayofcustomerrelationshipmanagementtoolsthathelpitscustomers“superchargetheirsales.”ObjectiveOutline
13.1Discusstheroleofacompany’ssalespeopleincreatingvalueforcustomersandbuildingcustomerrelationships.PersonalSelling(1of2)Personalpresentationsbyasalesforcetoengagecustomers,makesales,andbuildcustomerrelationshipsSalesperson:Representsacompanytocustomersbyperformingthefollowingactivities:ProspectingandcommunicatingSellingandservicingGatheringinformationandbuildingrelationshipsPersonalSelling(2of2)Professionalselling:Ittakesmorethanfasttalkandawarmsmiletosellexpensiveairplanes.Boeing’srealchallengeistowinandkeepbusinessbybuildingpartnershipswithcustomers.TheRoleoftheSalesForceLinksthecompanywithitscustomersCoordinates
marketingandsalesObjectiveOutline13.1SummaryPersonalselling—engagingcustomers,makingsales,andbuildingcustomerrelationshipsAsalesforceservesasacriticallinkbetweenacompanyanditscustomers.Prospecting,communicating,selling,servicing,informationgathering,andrelationshipbuildingObjectiveOutline13.2Identifyandexplainthesixmajorsalesforcemanagementsteps.SalesForceManagementSalesforcemanagement—analyzing,planning,implementing,andcontrollingsalesforceactivitiesFigure13.1MajorStepsinSalesForceManagementDesigningtheSalesForceStrategyandStructureTypesofsalesforcestructures:TerritorialProductCustomer(ormarket)SalespeoplecanbespecializedbyCustomerandterritoryProductandterritoryProductandcustomerTerritory,product,andcustomerTheSalesForceStructureCustomersalesforcestructure:P&G’sWalmartCustomerBusinessDevelopmentsalesteamconsistsofhundredsofP&GerswhoworkcloselywithWalmartbuyersinWalmart’shometownofBentonville,Arkansas.SalesForceSizeMayrangefromonlyafewtothousandsCompaniesmayusetheworkloadapproachtosetsalesforcesize.Accountsgroupedintoclassesbasedonsize,status,ortheamountofeffortrequiredtomaintaintheaccountNumberofsalespeopleneededtocalloneachclassofaccountsisthendeterminedOtherSalesForceStrategyandStructureIssuesOutsidesalesforce(fieldsalesforce)TravelstocalloncustomersinthefieldInsidesalesforceConductsbusinessfromtheirofficesviatelephone,theInternet,orvisitsfromprospectivebuyersTechnicalsalessupportpeopleSalesassistantsTelemarketersandonlinesellersTeamsellingTeamsofpeoplefromdifferentdepartmentsusedtoservicelarge,complexaccountsRecruitingandSelectingSalespeopleAcompanyshouldanalyzethesalesjobandthecharacteristicsofitsmostsuccessfulsalespeople.Sourcesfortherecruitmentofsalespeople:ReferralsfromcurrentsalespeopleEmploymentagenciesInternetandonlinesocialmediaPostingadsandnoticesCollegeplacementservicesSalespeopleatothercompaniesTrainingSalespeopleGoalsoftrainingaretoteachsalespeopleAboutdifferenttypesofcustomersHowtoselleffectivelyAboutthecompany’sobjectives,organization,products,andthestrategiesofcompetitorsOnlinetrainingbuildssalesskillsusingvideos,Internet-basedexercises,orsimulations.Virtualinstructor-ledtraining(VILT)CompensatingSalespeople(1of2)ElementsofcompensationFixedamount—salaryVariableamount—commissionsorbonusesCompensatingSalespeople(2of2)Salesforcecompensation:Agoodcompensationplanbothmotivatessalespeopleanddirectstheiractivities.SupervisingSalespeopleHelpsalespeopleworksmartbydoingtherightthingsintherightwaysToolsofsupervision:CallplanTime-and-dutyanalysisSalesforceautomationsystemMotivatingSalespeopleEncouragesalespeopletoworkhardandenergeticallytowardsalesforcegoalsManagementcanboostsalesforcemoraleandperformancethroughitsOrganizationalclimateSalesquotasPositiveincentivesEvaluatingSalespeopleandSalesForcePerformanceManagementgetsinformationaboutitssalespeopleFromsales,call,andexpensereportsBymonitoringthesalesandprofitperformancedatainthesalesperson’sterritoryThroughpersonalobservation,customersurveys,andtalkswithothersalespeopleFormalevaluationsforcemanagementtodevelopstandardsforjudgingperformance.SocialSelling:UsingDigitalPlatformsandToolsProvidesalespeoplewithpowerfultoolsforIdentifyingandlearningaboutprospectsEngagingcustomersCreatingcustomervalueClosingsalesNurturingcustomerrelationshipsHelpsalesforcestobemoreefficient,cost-effective,andproductiveObjectiveOutline13.2SummarySalesforcemanagement—analyzing,planning,implementing,andcontrollingsalesforceactivitiesMajorstepsinsalesforcemanagement:Designingsalesforcestrategyandstructure,recruiting,selecting,training,compensating,supervising,andevaluatingthefirm’ssalespeopleObjectiveOutline13.3Discussthepersonalsellingprocess,distinguishingbetweentransaction-orientedmarketingandrelationshipmarketing.Figure13.2StepsintheSellingProcessThePersonalSellingProcess(1of2)Valueselling—demonstratinganddeliveringsuperiorcustomervaluecapturingareturnonthatvaluethatisfairforboththecustomerandthecompanyValuesellingrequires:ListeningtocustomersUnderstandingcustomers’needsCoordinatingthecompany’seffortstocreatelastingrelationshipsbasedoncustomervalueThePersonalSellingProcess(2of2)Salesmanagement’schallengeistotransformsalespeopleintocompanyadvocatesforvalue.ObjectiveOutline13.3SummarySellinginvolvesaseven-stepprocess:ProspectingandqualifyingPreapproachApproachPresentationanddemonstrationHandlingobjectionsClosingFollow-upRelationshipmarketingProfitablelong-termrelationshipsBasedoncustomervalueandsatisfactionObjectiveOutline13.4Explainhowsalespromotioncampaignsaredevelopedandimplemented.SalesPromotion(1of2)Short-termincentivestoencouragethepurchaseorsaleofaproductoraserviceSalespromotiontargetsFinalbuyers—ConsumerpromotionsRetailersandwholesalers—TradepromotionsBusinesscustomers—BusinesspromotionsMembersofthesalesforce—SalesforcepromotionsSalesPromotion(2of2)Manyfactorshavecontributedtotherapidgrowthofsalespromotion.Productmanagersviewpromotionasaneffectiveshort-runsalestool.Competitorsusesalespromotiontodifferentiatetheiroffers.Advertisingefficiencyhasdeclined.Salespromotionshelpattracttoday’smorethrift-orientedconsumers.SalesPromotionObjectivesConsumerpromotionsTourgeshort-termcustomerbuyingorboostcustomer-brandengagementTradepromotionsTogetretailerstocarrynewitemsandmoreinventory,buyahead,orpromotethecompany’sproductsandgivethemmoreshelfspaceBusinesspromotionsTogeneratebusinessleads,stimulatepurchases,rewardcustomers,andmotivatesalespeopleConsumerPromotionTools(1of2)ToolsDescriptionSamplesOffersofatrialamountofaproductMosteffectiveandexpensiveCouponsCertificatesthatsavebuyersmoneywhentheypurchasespecifiedproductsRebates(cashrefunds)PricereductionoccursafterthepurchaseCustomersendsproofofpurchasetothemanufacturer,whichthenrefundspartofthepurchasepricebymailPricepacks(cents-offdeals)OffersconsumerssavingsofftheregularpriceofaproductPremiumsGoodsofferedeitherfreeoratlowcostasanincentivetobuyaproductConsumerPromotionTools(2of2)ToolsDescriptionAdvertisingspecialtiesUsefularticlesimprintedwithanadvertiser’sname,logo,ormessagethataregivenasgiftstoconsumersPoint-of-purchase(POP)promotionsDisplaysanddemonstrationsthattakeplaceatthepointofsaleContests,sweepstakes,andgamesGiveconsumersthechancetowinsomethingEventmarketing(oreventsponsorships)Creatingabrand-marketingeventorservingasasoleorparticipatingsponsorofeventscreatedbyothersEventMarketingEventmarketing:RedBullhasturnedeventmarketingintoascience.Ithostshundredsofeventseachyeardesignedtobringthehigh-octaneworldofRedBulltoitscommunityofenthusiasts.TradePromotionsUsedtopersuaderesellerstocarryabrand,giveitshelfspace,andpromoteitinadsTradepromotiontools:Contests,premiums,anddisplaysDiscountsandallowancesFreegoodsPushmoneySpecialtyadvertisingitemsBusinessPromotionsUsedtogeneratebusinessleads,stimulatepurchases,rewardcustomers,andmotivatesalespeopleBusinesspromotiontools:ConventionsandtradeshowsSalescontestsDevelopingtheSalesPromotionProgramSalespromotionprogramdesigndecisions:DeterminethesizeoftheincentiveSetconditionsforparticipationDeterminehowtopromoteanddistributethepromotionprogramSetthelengthofthepromotionEvaluatethepromotionObjectiveOutline13.4SummarySalespromotionobjectives—consumerpromotions,tradepromotio
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