Kotler, Armstrong Principles of Marketing 4e

1. 0 Kotler, ArmstrongPrinciples of Marketing 4e Chapter 13 IMC: Sales Promotion and Personal Selling

2. 0 Chapter Objectives (1) • Describe sales promotion tools and techniques which may be used to create immediacy and close sales, as well as reward loyal customers. • Discuss the role of a company's salespeople in creating value for customers and building customer relationships. • Identify the six major salesforce management steps.

3. Chapter Objectives (2) • Explain how companies recruit, select and train salespeople. • Describe how companies compensate and supervise salespeople, and how they evaluate salesforce effectiveness. • Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing.

4. 0 Sales Promotion • Sales promotion is the act of influencing customer/consumer perception and behaviour to build market share and sales which reinforces brand image. • Sales promotion is a term that is closely linked with direct and digital marketing, but has its origins in FMCG. • Although the words may be used to mean different things in different organisations, nearly all marketing scientists and practitioners agree on what sales promotion tools do. • They cover a range of incentives that are used with products promoted via either mass media advertising or by direct and digital methods.

5. 0 Purpose of Sales Promotion • Sellers use sales promotions to attract new triers, to reward brand-loyal customers and thereby retain them, to reduce the time between purchases, and even to turn light users into medium or heavy users. The aim might also be to regain past purchasers who have ceased buying. • New triers of a product category fall into one of three groups:  • non-users. • loyal users of another brand. • brand switchers.

6. 0 Setting Sales Promotion Objectives • Sales promotion objectives are as varied as the methods used. Sellers may use consumer promotions to increase short-term sales or to help build long-term market share. • The objective may be one of the following: • to entice consumers to try a new product or brand. • to lure consumers away from competitors’ products or brands. • to get consumers to ‘load up’ on a mature product. • to hold and reward loyal customers.

7. 0 Sales Promotion • The main tools falling into this category include: • Samples • Redeemable coupons • Cash-back offers • Cents-off deals or price packs • Premium offers • Advertising specialties • Patronage rewards • Point-of-purchase (POP) promotions • Contests and games of chance and skill

8. Sales Promotion • Trade Promotion Tools • An incentive applied to the retail trade to stock more of a product or to provide increased merchandising space, usually during a consumer promotion. • Business-to-Business Promotion Tools • Industrial marketers adapt many promotion tools to suit their own situations in addition to conventions, trade shows and sales contests

9. Sales promotions may be used to: • attract new buyers • reward loyal customers • reduce the time between purchases • convert medium users into heavy users • all of the above

10. Developing Sales Promotion Programs • A number of decisions must be made in order to define the full sales promotion program: • Size of the incentive. • How to promote and distribute the program. • The length of the promotion. • Evaluation.

11. Personal Selling • There are many types of personal selling jobs, and the role of personal selling can vary greatly from one industry to another and from one company to another. • The people who do the selling go by many names: • Salespeople • Sales representatives • Account executives/representatives • Sales consultants/engineers • Agents • District mangers • Marketing representatives

12. The Role of the Salesforce • Personal selling is the interpersonal arm of the promotion mix. • Advertising consists of one-way, non-personal communication with target consumer groups. In contrast, personal selling involves two-way, personal communication between salespeople and individual customers—whether • face-to-face • by telephone • through video conferences • or by other means • This means that personal selling can be more effective than advertising in complex selling situations.

13. Managing the Salesforce • Salesforce Management • The analysis, planning, implementation and control of salesforce activities. It includes setting salesforce objectives, designing salesforce strategy, and recruiting, selecting, training, compensating, supervising and evaluating the firm’s salesforce.

14. Recruiting and Selecting Sales People • At the head of a successful salesforce operation is the selection of good salespeople. • Successful salespeople include a variety of people but the best share four key talents: • Intrinsic motivation • Disciplined work style • The ability to close a sale • The ability to build relationships with customers • Top performers are empathetic, patient, caring, responsive, good listeners and honest.

15. Recruiting and Selecting Sales People • Recruiting Procedures • The personnel department looks for applicants by getting names from current salespeople, using employment agencies, placing job ads and contacting university students. • Selecting Salespeople • Selection procedures vary from a single informal interview to lengthy testing and interviewing. • Tests typically measure sales aptitude, analytical and organisational skills, personality traits and other characteristics. • Required information about applicants includes personal characteristics, references, past employment history and interviewer reactions.

16. Training Salespeople • Today, the average training period for a salesperson is four months. • Training programs have several goals: • Sales people need to know and identify with the company. • They need to be familiar with the company’s products. • They need to know customers’ and competitors’ characteristics. • Salespeople must know how to make effective presentations and be trained in the principles of selling. • They need to understand field procedures and responsibilities.

17. As a general rule, the first part of a sales training program concentrates on: • competitor information • sales presentations • company information • procedures and responsibilities • "breaking the ice"

18. Compensating Salespeople • To attract need salespeople, a company must have an attractive compensation plan. • The level of compensation must be close to the ‘going rate’ for the type of job and skills required. • Compensation is made up of several elements-a fixed amount, a variable amount, expenses and fringe benefits. • Management must decide what mix of these compensation elements makes the most sense for each sales job.

19. Supervising and Motivating Salespeople • New salespeople need supervision to help them ‘work smart’. • Motivation helps them to ‘work hard’ and energetically towards agreed salesforce goals. • Salespeople need to use their time efficiently, tools include: • Annual call schedule • Time and duty analysis • Salesforce automation systems • Management can boost salesforce morale and performance through: • Sales quotas • Positive incentives

20. Figure 13.2 How Salespeople Spend Their Time

21. Evaluating Salespeople and Performance • Sources of Information about salespeople are derived in several ways: • Sales reports • Call reports • Expense reports • Personal observation • Customers’ letter and complaints • Customer surveys • Other salespeople

22. The Personal Selling Process • Steps in the Selling Process: • Prospecting • Pre-approach • Approach • Presentation and demonstration • Handling objections • Closing • Follow-up

23. Personal Selling and Relationship Marketing • Relationship marketing (RM) is the process of creating, maintaining and enhancing strong, value-laden relationships with customers and other stakeholders. • RM emphasises building and maintaining profitable long-term relationships with customers by creating superior customer value and satisfaction. • More companies are realising that winning and keeping accounts requires more than making good products and closing lots of sales. It requires a carefully coordinated, whole-company effort to create value-laden satisfying relationships with important customers.

24. After the presentation, the salesperson must be prepared to handle: • objections • money • orders • follow-ups • all of the above