Personal Selling Sales Promotion

1. Personal Selling Sales Promotion 16

2. Definition • Salesperson • An individual acting for a company by performing one or more of the following activities: prospecting, communicating, servicing, and information gathering.

3. Agents Sales consultants Sales Representatives Account Executives Personal Selling Salespeople Have Many Names Sales Engineers District Managers Marketing Representatives Account Development Representatives

4. Personal Selling • The Role of the Sales Force • Two-way personal communication • More effective than advertising in complex selling situations • The sales force plays a major role in most companies • The sales force works to produce customer satisfaction and company profit

5. Definition • Sales Force Management • The analysis, planning, implementation, and control of sales force activities. It includes setting and designing sales force strategy; and recruiting, selecting, training, supervising, compensating, and evaluating the firm’s salespeople.

6. Major Steps in Sales Force Management

7. Managing the Sales Force • Sales Force Strategy and Structure • Sales Force Structure • Territorial sales force structure • Product sales force structure • Customer sales force structure • Complex sales force structure

8. Managing the Sales Force • Compensating Salespeople • Compensation elements: salary, bonuses, commissions, expenses, and fringe benefits • Basic compensation plans: • Straight salary • Straight commission • Salary plus bonus • Salary plus commission

9. The Personal Selling Process

10. Definition • Sales Promotion • Sales Promotions are short-term incentives to encourage the purchase or sale of a product or service.

11. Sales Promotion • Sales Promotions • Can be targeted at final buyers, retailers and wholesalers, business customers, and members of the sales force. • The use of sales promotions has been growing rapidly.

12. Sales Promotion • Objectives – Consumer Promotions: • Increase short-term sales • Generate product trial

13. Major Consumer Sales Promotion Tools Sample Trial amount of a product Coupons Savings when purchasing specified products Cash Refunds Refund of part of the purchase price Price Packs Reduced prices marked on the label or package Premiums Goods offered free or low cost as an incentive to buy a product Advertising Specialties Articles imprinted with an advertiser’s name given as gifts

14. Patronage Rewards Cash or other rewards for the use of a certain product Point-of-Purchase Displays and demonstrations that take place at the point of sale Contests Consumers submit an entry to be judged Sweepstakes Consumers submit their names for a drawing Game Presents consumers with something every time they buy Major Consumer Sales Promotion Tools

15. Sales Promotion • Objectives – Trade Promotions: • Obtaining distribution and shelf space • Encouraging retailers to advertise the brand

16. Sales Promotion • Objectives – Sales Force Promotions: • Signing up new accounts • Stimulating sales of specific items

17. Sales Promotion • Trade Promotion Tools • Discounts (also called price-offs, off-list, and off-invoice discounts) • Allowances • Advertising allowances • Display allowances • Free goods • Push money • Specialty advertising items

18. Sales Promotion • Business Promotion Tools • Includes many of the same tools used in trade and consumer promotions • Two additional tools: • Conventions & trade shows • Sales contests