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17

CHAPTER

Personal Selling and


Sales Promotion
Chapter Objectives
1 Describetheroleoftodays 4 Identifyandbriefly
7 Identifytheroleofethical
salesperson.
describethethreebasic
behaviorinpersonal
salestasks.
selling.
2 Describethefoursales
5 Outlinethesevenstepsin 8 Describetheroleofsales
channels.
thesalesprocess.
promotioninthe
3 Describethemajortrends
promotionalmix,and
inpersonalselling.
6 Identifythesevenbasic
identifythedifferent
functionsofasales
typesofsalespromotions.
manager.

CHAPTER 17 Personal Selling and Sales Promotion

PersonalsellingInterpersonalinfluenceprocessinvolvingasellers
promotionalpresentationconductedonapersontopersonbasiswiththe
buyer.
SixteenmillionpeopleintheU.S.areemployedinsales.
Personalsellingisthesinglelargestmarketingexpenseinmanyfirms.

CHAPTER 17 Personal Selling and Sales Promotion

THE EVOLUTION OF PERSONAL SELLING


Salespeopleareproblemsolverswhofocusonmeetingcustomersneeds
before,during,andafterthesale.
Mustbeabletodothefollowing:
Focusoncustomersneedsandproblems,andoffersolutions.
Followthroughwithphonecallsandothercommunications.
Developexpertiseabouttheirindustryandproduct.
Gotheextramiletofulfillcustomersneedsbeyondtheir
expectations.
BureauofLaborStatisticspredictsthatjobsinsaleswillgrowby10
percentoverthenextdecade.

CHAPTER 17 Personal Selling and Sales Promotion

THE FOUR SALES CHANNELS


Channelsallincludebothbusinesstobusinessand
directtocustomerselling.
OverthecountersellingPersonalsellingconducted
inretailandsomewholesalelocationsinwhichcustomers
cometothesellersplaceofbusiness.
FieldsellingSalespresentationsmadeatprospective
customerslocationsonafacetofacebasis.
TelemarketingPromotionalpresentationinvolvingtheuseofthe
telephoneonanoutboundbasisbysalespeopleoronaninboundbasisby
customerswhoinitiatecallstoobtaininformationandplaceorders.
InsidesellingSellingbyphone,mail,andelectroniccommerce.
Firmsgenerallyblendsaleschannelsintheirsalesorganization.

CHAPTER 17 Personal Selling and Sales Promotion

TRENDS IN PERSONAL SELLING


Companiesrelyonthreemajorpersonalsellingapproaches
tomeetcustomerneeds.
RelationshipsellingRegularcontactsbetweensales
representativesandcustomersoveranextendedperiodto
establishasustainedbuyersellerrelationship.
ConsultativesellingMeetingcustomerneedsbylistening
tothem,understandingtheirproblems,payingattentionto
details,andfollowingthroughafterthesale.
TeamsellingSellingsituationinwhichseveralsalesassociatesorother
membersoftheorganizationarerecruitedtohelptheleadsales
representativereachallthosewhoinfluencethepurchasedecision.

CHAPTER 17 Personal Selling and Sales Promotion

SALES TASKS
Ensuringthatbuyerspurchasesareinhisorherbestinterestaidsthe
developmentoflongtermrelationships.
Sellinginvolvesthreebasictasks:
OrderprocessingSelling,mostlyatthewholesaleandretaillevels,that
involvesidentifyingcustomerneeds,pointingthemouttocustomers,and
completingorders.
CreativesellingPersonalsellingthatinvolvessituationsinwhicha
considerabledegreeofanalyticaldecisionmakingonthebuyerspartresults
intheneedforskillfulproposalsofsolutionsforthecustomersneeds.
MissionarysellingIndirecttypeofsellinginwhichspecialized
salespeoplepromotethefirmsgoodwillamongindirectcustomers,oftenby
helpingcustomersuseproducts.

CHAPTER 17 Personal Selling and Sales Promotion

CREATIVESELLING
CreativesellingPersonalsellingthatinvolvessituationsin
whichaconsiderabledegreeofanalyticaldecisionmakingon
thebuyerspartresultsintheneedforskillfulproposalsof
solutionsforthecustomersneeds.
Generallyusedtodevelopnewbusinesswitheithernew
customersofnewproductsforexistingcustomers.

MISSIONARYSELLING
MissionarysellingIndirecttypeofsellinginwhich
specializedsalespeoplepromotethefirmsgoodwillamong
indirectcustomers,oftenbyhelpingcustomersuseproducts.
Example:Pharmaceuticalcompaniesthatusefreesamples,
educationalseminarstocourtdoctors.
Mayinvolvebothfieldsellingandtelemarketing.

CHAPTER 17 Personal Selling and Sales Promotion

THE SALES PROCESS


StepsfollowtheAIDAconcept.
Attention
Interest
Desire
Action

CHAPTER 17 Personal Selling and Sales Promotion

PROSPECTINGANDQUALIFYING
Prospectingidentifyingpotentialcustomers.
Qualifyingdeterminingthattheprospectreallyisapotentialcustomer.

APPROACH
Initialcontactwithprospectivecustomer.
Useprecallplanningresearchtoidentifyhowyourproductsmight
bestmeetcustomersneeds.

PRESENTATION
Conveyingmarketingmessagetothecustomer.
Featuresbenefitsframeworkfocusesonthegoodorserviceintermsthat
aremeaningfultothebuyer.

CHAPTER 17 Personal Selling and Sales Promotion

DEMONSTRATION
Buyerhasachancetotryaproductorseehowitworks.

HANDLINGOBJECTIONS
Expressionsofresistance,suchasstallingorindecision,bytheprospect
areanopportunitytoreassurethebuyeroroffersuitablealternatives.

CLOSING
Pointatwhichsalespersonaskstheprospectforanorder.
Letbuyerknowyouarereadytobeofserviceinthefuture.

FOLLOWUP
Successfulsalespeopleturntodayscustomersintotomorrowsby
reinforcingthepurchasedecision.
Ensurethatcustomerserviceneedsaremet.

CHAPTER 17 Personal Selling and Sales Promotion

MANAGING THE SALES EFFORT


Salesmanagersmixsalesandmanagementskillstomanagetheoverall
directionandcontrolofthepersonalsellingeffort.

RECRUITMENTANDSELECTION
Importantbecauseofcompanyinvestmentinthehiringprocessandthe
potentialdamagetocustomerrelationshipsandoverallperformance.

TRAINING
Primarymethodsareonthejobtraining,individualinstruction,howto
classes,andexternalseminars;oftenongoingforexperiencedsalespeople.

ORGANIZATION
Nationalaccountsorganizationassigningseniorsalespersonnelorsales
teamstomajoraccountsineachmarket.

CHAPTER 17 Personal Selling and Sales Promotion

SUPERVISION
Spanofcontrolnumberofsalesrepresentativeswhoreporttofirstlevel
salesmanagers.

MOTIVATION
Toolsincludeinformationsharing,recognition,bonuses,andbenefits.
Expectancytheorymotivationdependsontheexpectationsanindividual
hasofhisorherabilitytoperformthejobandonhowperformancerelates
toattainingrewardsthattheindividualvalues.

COMPENSATION
Commissioncompensationtieddirectlytothesalesorprofitsthe
salespersonachieves.
Salaryfixedpaymentmadeperiodicallytoanemployee.
Manyfirmscombinethefeaturesofbothcommissionandsalaryintheir
compensationprograms.

CHAPTER 17 Personal Selling and Sales Promotion

EVALUATIONANDCONTROL
Managersmustsetstandardsandchoosethebestmethodsformeasuring
salesperformance.
Salesquotasspecifiedsalesorprofittargetsthatthefirmexpects
salespeopletoachieve.
Othermeasuresincludecustomersatisfaction,profitcontribution,shareof
productcategorysales,andcustomerretention.
Evaluationsshouldmotivateimprovedperformance.

CHAPTER 17 Personal Selling and Sales Promotion

ETHICAL ISSUES IN SALES


Longtermsuccessrequiresstrongcodeofethics.
Honestyandethicalbehaviorisencouragedwhen:
Employeesunderstandwhatisexpectedofthem.
Opencommunicationisencouraged.
Managersleadbyexample.

CHAPTER 17 Personal Selling and Sales Promotion

SALES PROMOTION
SalespromotionMarketingactivitiesotherthanpersonalselling,
advertising,andpublicitythatenhanceconsumerpurchasinganddealer
effectiveness.
Goalisspeedingthesalesprocessandincreasingsalesvolume.
Producebestresultswhencombinedwithotherothermarketingactivities,
suchasadvertising.
Cannotovercomepoorbrandimages,productdeficiencies,orpoor
trainingforsalespeople.

CONSUMERORIENTEDSALESPROMOTIONS
Goals:Encouragerepurchasesbyrewardingcurrentusers,boostsalesof
complementaryproducts,andincreaseimpulsepurchases.
Couponsmostwidelyusedformofsalespromotion.

CHAPTER 17 Personal Selling and Sales Promotion

Refundsorrebateshelppackagedgoodscompaniesincreasepurchase
rates,promotemultiplepurchases,andrewardproductusers.
Samples,bonuspacks,andpremiumsatryit,youlllikeitapproach.
Contestsrequireentrantstocompleteatasksuchassolvingapuzzleor
answeringquestionsinatriviaquiz.
Sweepstakeschoosewinnersbychance;noproductpurchaseis
necessary.
SpecialtyAdvertisingsalespromotiontechniquethatplacesthe
advertisersname,address,andadvertisingmessageonusefularticlesthat
arethendistributedtotargetconsumers.

CHAPTER 17 Personal Selling and Sales Promotion

TRADEORIENTEDPROMOTIONS
Salespromotionthatappealstomarketingintermediariesratherthanto
finalconsumers.
Accountsforhalfoftypicalfirmspromotionbudget.
Tradeallowancesspecialfinancialincentivesofferedtowholesalersand
retailersthatpurchaseorpromotespecificproducts.
Pointofpurchaseadvertisingdisplayorotherpromotionlocatednear
thesiteoftheactualbuyingdecision.
Tradeshowsvendorswhoservetheindustriesdisplayanddemonstrate
theirproductsformembers.
Dealerincentives,contests,andtrainingprograms.

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