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I. PERSONAL SELLING Personal selling consists of interpersonal interactions with customers andprospects to make sales and maintain customer relationships. II. MANAGING THE SALES FORCE: Managing the sales forceis analyzing, planning, implementing and controlling sales force activities.It includes designing sales forces strategy and structure, recruiting, selecting, training, compensating, supervising and evaluating the firm’s sale people.
GROUP ASSIGNMENT GROUP 12 -Course : Principles of Marketing Class : International Business K56 (High-Quality Educational Program) Topic: Personal selling and Sales promotion Group Members: Đặng Hương Giang Phạm Thị Hoàng Diệu Nguyễn Cẩm Tú Nguyễn Thị Khánh Linh Page of 26 Table of Contents PERSONAL SELLING AND SALES PROMOTION I PERSONAL SELLING Personal selling consists of interpersonal interactions with customers andprospects to make sales and maintain customer relationships The Nature of Personal Selling Personal Selling isone of the oldest professions in the world People who the selling go by many names: salespeople, sales representatives, agents, district managers, account executives, Page of 26 sales consultants, and sales engineers.It is the personal presentations by the firm’s sales force for the purpose of making sales and building customer relationships Personal selling is the interpersonal part of the promotion mix and can include: • • • Face-to-face communication Telephone communication Video or web conferencing Salespeople can include an order taker such as someone standing behind the counter or an order getter whose position demands more creative selling and relationship building The Role of the Sales Force Personal selling can be more effective than advertising in more complex selling situations because salespeople can learn about customer problems and adjust the marketing offer and presentation accordingly to meet the special needs of each customer 2.1 Linking the Company with Its Customers In many cases, salespeople serve two masters: seller and buyer Salespeople are an effective link between the company and its customers to produce customer value and company profit by: • Representing the company to customers: They find and develop new customers and communicate information about the company’s products and services They sell products by approaching customers, presenting their offerings, answering objections, negotiating prices and terms, and closing sales In addition, salespeople provide customer service and carry out market research and intelligence work • Representing customers to the company: Salespeople relay customer concerns about company products and actions back inside to those who can handle them They learn about customer needs and work with other marketing and non-marketing people in the company to develop greater customer value To many customers, the salesperson is the company - the only tangible manifestation of the company that they see Strong relationships with the salesperson will result in strong relationships with the company and its products Page of 26 2.2 Coordinating Marketing and Sales Sales force and other marketing functions (marketing planners, brand managers,and researchers) should work together to create value for customers, however, some companiesstill treat sales and marketing as separate functions If not repaired, such disconnects between marketing and sales can damage customer relationships andcompany performance A company can take several actions to help bring its marketing and sales functions closer together by : • Increasing communications between the two groups by arranging joint meetings and spelling out communications channels then create opportunities for salespeople and marketers to work together • Creating joint objectives and reward systems for sales and marketing teams or appoint marketing-sales liaisons-people from marketing who “live with the sales force” and help coordinate marketing and sales force programs and efforts • Appointing a high-level marketing executive to oversee both marketing and sales Advantages and disadvantages of Personal selling 3.1 Advantages of Personal Selling - Convey More Information You can express added information with personal selling when compared to any other types of promotion, such as advertising Personal selling is predominantly beneficial when functioning with goods of high value You will require influencing buyers more with supplementary luxurious stuffs Most enterprises use notebook presentation, exhibitions and extremely comprehensive product information when promoting goods like medical equipment, computers, and - industrial goods More Impact • Personal selling has a superior impact on consumers than direct mail or advertising The buyers don’t require to wait long to get his queries responded He can find out what he requires to be acquainted with instantly You as a retailer also obtain an enhanced experience for what the consumer’s demands You can recommend specific goods if you have widespread merchandise line or adapt your services, like discussing, to the buyer's specific requirements Page of 26 Disadvantages of personal selling Limited Reach • One disadvantage is that your customer reach is limited through personal sales 3.2 - As a result, it will require extended time period to create product awareness, particularly if you don’t use other forms of advertising Sales representatives have to cover up one region or place at a time As a Sales representative, you can only talk to twenty five potential buyers per day and put together 3-5 presentations Contact can be principally partial in rural regions where fewer - potential buyers are situated Expensive • Personal selling isexpensive, particularly when bearing in mind the sales representative's salary, bonus, commission as well as travel time It requires plenty of money to prepare sales representatives, educating them on a range of goods and sales techniques That is the reason it paramount to study the pros and cons of personal selling against other forms of advertising II MANAGING THE SALES FORCE: Managing the sales forceis analyzing, planning, implementing and controlling sales force activities.It includes designing sales forces strategy and structure, recruiting, selecting, training, compensating, supervising and evaluating the firm’s sale people Page of 26 Designing the sales force strategy and structure: A marketing manager has to be careful in designing and structuring sales force and answers these questions: How should salespeople and their tasks be structured? How big should the sales force be? Should salespeople sell alone or work in team? Should they sell in the field, by telephone or on web? 1.1 The sales force structure: 1.1.1 Territorial sales force structure: Each salesperson is assigned to an exclusive geographic area and sells the company’s full line of products or services to all customers in that territory This structure is preferred for the company sells only one product line to one industry with customer in many locations and building relationships with local customers there force it improves selling effectiveness A particular example is Stanley Black & Decker which is a company sell tools and storage, commercial electronic security and engineered fastening systems.each salesperson in Stanley Page of 26 Black &Decker who is territory sales representative, is responsible for selling all of the company’s products in assigned territories They start cover small areas such as Eastern North Carolina then report to territory managers, cover larger areas like Carolinas and Virginia Next, territory managers report to regional managers, who cover region such as the Southeast or West Coast Finally, they report to director of sales Page of 26 Page of 26 - Advantages and Disadvantages: + Advantages: • Low cost Because sales force divided into geography, salesperson of company travels within a • limited area, travel expenses are relatively small Low geographic duplication of effort Salespeople in territory just focus resources on an area to make best customer value • and build customer relationships Thus it has not duplication in geography Sensitive with demand of customers In each region has different culture and custom, territory sales representative have knowledge about customers can improve product fits to customer and caches trend + Disadvantages: • • • Work best when products line is simple If company have many products, personal selling would be too complex and customers can be confused Lack of management control over product or customer emphasis Duplication of customers: If salespeople are require quotas of sale, sometime salesperson in the same geography area can competitive each other and approach same customers In that case, territorial sales force structure can effectiveness 1.1.2 Product Sales Force Structure: It is a sales force organization in which salespeople specialize in selling only a portion of the company’s products or line Salespeople must know their products and it can make them stronger sellers In addition, this structure leads the growth of product management Product structure is used for complex and un-related product portfolio This is especially true with products that are highly technical or which are sold to professionals such as medical device and equipment sales, for example, requires a salesperson to have an in-depth understanding of his product Physicians who might purchase these products can have complicated and technical questions that require the salesperson to have a thorough Page 10 of 26 understanding of how the product works and the setting in which it is used Here the sales people are directly associated with research and development of the products Another example is FPT employ different sales forces within different products Within FPT Telecommunication, for instance, the company has separate sales forces for broadband internet, television services: HD box, One TV ; online service: sendo.vn, Fshare…; leased line; data center FPT technology has sales forces for software copyright, telephone, tablet,… - Advantages and disadvantages + Advantages: • • Sales reps develop product expertise Management can guide selling efforts + Disadvantages: • Higher costs due to duplication of effort within geographies and customer accounts • Coordination required when more sales reps have the same geography/accounts 1.1.3 Customer sales force structure: Thesedays, more and more companies are now using a customer (or market) sales force structure In customer sales force structure, salespeople specialize in selling only to certain customers or industries This structure is used if the companies are operating different industry or market segments Every sales force specializes in a definite market and helps push a product efficiently across the given market For instance, Vietnam Airlines divided its sales force into two customers based teams One sales force focuses on “key” customers (economy class) – large accounts that purchase average equipment and price The second sales force focuses on “prime” customers (Business class) – smaller accounts that are generally more concerned about getting the high-end feature and service they need for the best possible price - Advantages and disadvantages: + Advantages: Page 12 of 26 Therefore, the salespeople need = 60 000/1000= 60 1.3 Other Sales Force Strategy and Structure Issues: 1.3.1 Outside and inside sales force: Outside sales force (or field sales force) work from the office, but frequently visit prospect and client sites to call on customers in the field and may be involved in overnight travel for this purpose Inside salespeople conduct business from their offices via telephone, the internet or visit from buyers.Telemarketers and Web sellers use the phone and internet to find new leads and qualify prospects or sell and service account directly The company may have an outside sales force, an inside sales force or both.Some inside salespeople provide support for the outside sales force More specifically, technical sales support people provide technical information and answer customer’s questions Sales assistants provide administrative backup for outside salespeople.Combination of inside and outside salespeople can help serve important customer better 1.3.2 Team selling Team sellingis using teams of people from sales, marketing, engineering, finance, technical support and even upper management to service large, complex accounts For example,P&G used team selling for a long time and its organized into Customer business development (CBD) teams - Advantages and disadvantages of team selling + Advantages: • • Save time More effectively + Disadvantages: • • • Conflict in team selling Difficulty in evaluating individual contributions Confuse or over whelm customers who are used to working with only one salesperson Page 13 of 26 Recruiting and Selecting Salespeople: Recruitment of talented employees is an essential part of any company's ability to maintain success and ensure the achievement of standards within an organization When a salesperson quits, the cost of finding and training a new salesperson can be very high In addition, a sales force with many new people is less productive and disrupts important customer relationship It is research suggest that the best salespeople possess four key talents: - Intrinsic motivation Some salespeople are driven by money, a desire for recognition, or the satisfaction of competing and winning Others are driven by the desire to provide service and build - relationship Disciplined work style The good salespeople also lay out detailed, organized plans and then follow through in a - timely way Ability to close a sale Super salespeople build the skills and knowledge to understand their customers need They are also are excellent customer problems solvers Last but not least, they want to - add value for their customers Ability to build relationship with customers Personal selling plays an important role in building profitable customer relationships And top performers have to have: good listener, empathetic, patient, caring and responsive Before recruiting, company should analyze the sales jobs itself and the characteristics of its most successful sales people to identify the traits needed by a successful salesperson in their industry Test typically measured sales attitude, analytical and organization skills, personal traits and other characteristics After that, the company must select the best candidates Training salespeople: Page 14 of 26 Training is essential to remain ahead of the competition Sales force needs training before entering the market as well as training at different stage of the product life cycle New salespeople may spend anywhere from a few weeks or months to a year or more in training Training is expensive but yields strong returns Most companies provide continuing sales training tools throughout the salesperson’s career by via seminars, sales meeting and Web e-learning Training programs have several goals: • Know about customers how to build relationship with customers: Training program must teach salespeople about different types of customers and their needs, buying • motivates and buying habits Know how to sell effectively: Salespeople are also trained basic of the selling process, know company’s objectives, organization, products and the strategy of major competitors These days, many companies are adding Web-based sales training programs which build sales skills to sophisticated simulations that re-create the dynamics of real-life sales calls Training online have many advantages such as: Cut travel and other training costs Take up less of a salesperson’s selling time Can practice many times Easy to understand Compensating salespeople: • • • • To attract good salespeople, a company must have an appealing compensation plan Compensation consists of four elements: • • A fixed amount: usually a salary, gives the salesperson some stable income A variable amount: might be commissions or bonuses based on sales performance, • • reward the salesperson for greater effort and success Expenses Fringe benefit Management must determine what mix of these compensation elements makes the most sense Page 15 of 26 Variable compensation give rise to four basic compensation plan:Straight salary, straight commission, salary plus bonus, salary plus commission A sales force compensation plan can both motivate salespeople and direct their activities, however, the company Dir should direct salespeople toward activities consistent with overall sales Re Ter ect force and marketing ritgio objectives nal or of yma For example, if strategy is to acquire new business, grow rapidly, gain marketshare na ma sal ger na es Compensationreger plan: a larger commission component, coupled with new account bonus s s pr to encourage high sales performance and new account development es en In contrast, if the goal is to maximize current account profitability ta tiv Compensation plan: contain a larger base-salary component with additional incentives e for current account sales or customer satisfaction Company should designing compensation plans that reward salespeople for building customer relationships and growing the long-run value of each customer When the times get tough economically, some companies cut sales force compensation This cost-cutting measure complete does not effective and if you burn the salesperson, you might burn the customer relationships In case must be reduced: keep the pay up for the top performers and turn the low performers loose Supervising and Motivating Salespeople: Supervising salespeople: 5.1 Supervision on sales force is decided on the profile of product portfolio The goal of supervision is to help salespeople work smart by doing the right things in the right ways There are four mainly tool to supervise salespeople: • Weekly, monthly, or annual call plan that shows which customers and prospects to call on and which activities to carry out Page 16 of 26 • • • Time-and-duty analysis Sales force automation systems assists in creating more efficient sales force operation The internet is the fastest growing-sales technology tool: laptop, smartphone, wireless web connection, webcams for videoconferencing, ⇒Better time management, improved customer service, lower sales costs, higher sales performance Selling and the Internet: 5.2 The internet offers explosive potential for conducting sales operations and interacting with and serving customers Sales organizations are now using Internet approaches to: train sales reps, hold sales meeting, service accounts, conduct live meeting with customers Web 2.0enables a way of interacting, collaborating and information sharing Sales 2.0 will not make salespeople obsolete It will make them a lot more productive and effective + Advantages of Web-based technologies: • • • • Help conserve salespeople’s valuable time Save travel expense Give new vehicle for selling and servicing accounts Creating new avenues for connecting with customers + Disadvantages: • Not cheap for starter Systems can intimidate low-tech salespeople or clients For example, the social networking site Facebook, many companies have fan-page, therefore, they can advertising new products, text direct with customer,… 5.3 Motivating salespeople: Motivation is a key aspect for management of the sales force Here compensation plays an important in driving up the motivational level Page 17 of 26 Management can boost sales force morale and performance through three tools: • Organizational climate: describe the feeling that sales people have about their opportunities, value, reward for a good performance • Sales quotas: standards stating the amount they should sell and how sales should be divided among the company’s products • Positive incentives: increase the sales force effort + Sales meetings + Sales contest + Honors, merchandise and cash award, trips, profit-sharing plans Evaluating Salespeople and sales force performance: Evaluation is essential to management of a sales force Sales reports sent by the sales force serve a good starting point of evaluation Management gets information about its salespeople in several ways: • • • Sales report Call reports Expense reports Sales management evaluates salespeople on their ability to “Plan their work, work their plan” It also provide constructive feedback, motivate salespeople perform well Formal evaluation forces management to develop and communicate clear standard for judging performance III PERSONAL SELLING PROCESS The goal of the personal selling process is to get new customers and obtain orders from them The Selling Process consists of seven steps Page 18 of 26 Prospecting and Qualifying The first step in the selling process is Prospecting—identifying qualified potential customers The salesperson must often approach many prospects to get only a few sales Although the company supplies some leads, salespeople need skill in finding their own The best source is referrals • • • • Current customers Suppliers, dealers, and noncompeting salespeople The web or other social network contacts Unannounced office visits (a parcatice known as “cold calling”) Qualifying a lead requires knowing how to identify the good one and screen out the poor ones Prospects can be qualified by looking at various factors Financial ability Volume of business Specian needs Location Possibilities for growth Pre-approach • • • • • Pre-approach is the process of learning as much as possible about the organization (what it needs, who is involved in the buying) and its buyers (their characteristics and buying styles) Page 19 of 26 The salesperson should set call objectives, which may be to qualify the prospect, gather information, or make an immediate sale Another task is to determine the best approach, which might be a personal visit, a phone call, or a letter or an e-mail Approach Approach is the process where the salesperson meets and greets the buyer and gets therelationship off to a good start, and involves the salesperson’s appearance, opening lines, and follow-up remarks Presentation and Demonstration During the presentation step of the selling process, the salesperson tells the “value story” to the buyer, showing how the company’s offer solves the customer’s problems The customer-solution approach fits better with a relationship marketing focus than does a hard sell or glad-handing approach Before salespeople can present customer solution, they must develop solution to present Qualities thatbuyers dislike most in salespeople • • • • Pushiness Being late Deceitfulness Being unprepared or disorganized Qualities that buyers value most in salespeople • • • • • • Good listening skills Empathy Honesty Dependability Thoroughness Follow-through Handling Objections In handling objections, the salespeople should following: • • • • • Use a positive approach Seek out hidden objections Ask the buyer to clarify any objections Take objections as opportunities Turn the objections into the reasons for buying Every salespeople needs training in the skills of handling objections Page 20 of 26 Closing Salespeople can use one of several closing techniques: • • • • • Ask for the order Review points of agreement Offer to help write up the order Ask whether the buyer wants this model or that one Note that the buyer will lose out if the order is not placed now Follow-up Follow-up is necessary if the salesperson wants to ensure customer satisfaction and repeat business The salesperson should complete any details on delivery time, purchase terms, and other matters and schedule a follow-up call to make sure proper installation, instruction, and servicing occur This visit would reveal any problems, assure the buyer of the salesperson’s interest, and reduce any buyer concerns that might have arisen since the sale IV SALES PROMOTION Sales promotion consists of short-term incentives to encourage the purchase or sales of a product or service.Whereas advertising offers reasons to buy a product or service, sales promotion offers reasons to buy now Examples:a comestic store offers discount 20% on every products due to Reunification Day April 30and International Workers' Day - May day- May A hardware store chain receives a 10 percent discount on selected Stihl power lawn and garden tools if it agrees to advertise them in local newspapers The rapid growth of sales promotion 1.1 Target Page 21 of 26 This tool userstarget toward final buyers (consumer promotions), retailers and whole-salers (trade promotions), business customers (business promotions), and members of the sales force (sales force promotions).sales promotion accounts for 77 percentof all marketing expenditures 1.2 Facters contributed to the growth • Internally, Product managers face greater pressures to increase current sales, and they view promotion as an effective short-run sales tool • Externally, Company faces more competition, and competing brands are less differentiated Competitors are using sales promotion tohelp differentiate their offers • Advertising efficiency has declined because of rising costs, media clutter, and legal restraints • Consumers have become more deal oriented 1.3 Sales Promotion Objectives Sellers may use consumer promotions to urge short-term customer buying or enhance customer brand involvement Objectives for trade promotions include getting retailers to carry new items and more inventory, buy ahead For the sales force, objectives include getting more sales force support for current or new products However, rather than creating only shortterm sales or temporary brand switching, sales promotions should help to reinforce the product’s position and build long-term customer relationships Marketers should avoid “quick fix,” price-only promotions in favor of promotions that are designed to build brand equity.All kinds of companies now offer rewards programs Such promotional programs can build loyalty through added value rather than discounted prices For example, rather than offering promotional discounts that might damage its premium positioning, Starbucks ran ads telling customers why its coffee is worth the higher price Then, to build loyalty,the company promoted the Starbucks Card Rewards Major sales promotion tools 2.1 Consumer Promotions Consumer promotions include a wide range of tools from samples, coupons, refunds, premiums, and point-of-purchase displays to contests, sweepstakes, and event sponsorships Sales promotion tools used to boost short-term customer buying and involvement or enhance long-term customer relationships Page 22 of 26 • Samples are offers of a trial amount of a product.It is the most effective but most expensive way to introduce a new product or create new excitement for an existing one • Coupons are certificates that give buyers a saving when purchasing specified products • Cash refunds (or rebates) are like coupons except that the price reduction occurs after thepurchase rather than at the retail outlet • Price packs (cents-off deals) offer consumers savings off the regular price of aproduct • Premiums are goods offered either free or at low cost as an incentive to buy a • product,ranging from toys included with kids products to phone cards and DVDs Advertising specialties, also called promotional products, are useful articles imprinted withan advertiser’s name, logo, or message that are given as gifts to consumers • Point-of-purchase (POP) promotions include displays and demonstrations that take placeat the point of sale • Contests, sweepstakes, and sponsorship games give consumers the chance to win • something, such ascash, trips, or goods, by luck or through extra effort Finally, marketers can promote their brands through event marketing (or event sponsorships).They can create their own brand-marketing events or serve as sole or participating sponsors of events created by others.Procter & Gamble creates numerous events for its major brands Consider this example: For example, P&G has sponsored a holiday event promotion for its Charminbrand in New York’s Times Square, where it can be very difficult to find a public rest-room P&G sets up 20 free, sparkling clean Charmin-themed mini-bathrooms, eachwith its own sink and a bountiful supply of Charmin The event is the ultimate in experiential marketing touching people in places advertising wouldn’t dare go Overthe past holiday seasons, the event has been flush with success More than 1million people have gratefully used the facilities 2.2 Pros and cons of consumers promotion PROS Samples - Increase the number of new customers - Entice former customers to return - Be easy to make impression to customers right away, right there to help them remember about the companyproduct Coupon - Reward current customer- customer are satisfied CONS - Not to be easy to measured as other promotional strategies - Not be effective if the company set the incorrect sampling goup - Be difficult to ask to give customer sample - The coupon may not best fit for Page 23 of 26 Price packs when they receive a gift of saving - Provide the marketers with higher measurable promoting program - Increase the number of new customer Name on the coupon even when the coupon is not redeemed target customers - Have no monetary value - Allow the company to new segment in price sensitive group of customers - Effect the brand image - May reflect the dropping in price quantity - Break the law of other company - Provide product with lower cost, attract more customers Premiu m - Increase brand loyalty - Impact at point-of-sale due to their visibility - Other immediate consumer gratification Contest and game Refund and rebates - Not effective if the company set the wrong target - Don’t expect the premium to increase the profit - Maintain current customer - Not as easy as other promotion to measure - Create a buzz about your product - Draw traffic to your website or store -To set up event company has to be rely on sponsorship - Maintain current customers - Require procedures and assume the out-the-door price when considering the purchase - Offer customers lower price - Easy to measure the effectiveness of the sales promotion campaign - Most of them are exaggerated - Customers need more skill to receive benefit 2.3 Trade Promotions Manufacturers direct more sales promotion dollars toward retailers and wholesalers (81%) than to final consumers Trade promotions can persuade re-sellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers Shelf space is so scarce these days that manufacturers often have to offer price-offs,allowances, buy-back guarantees, or free goods to retailers and wholesalers to get products on the shelf , once there, to keep them on it Page 24 of 26 Manufacturers use several trade promotion tools: • An allowance (usually so much off per case) in return for the retailer’s agreement to feature the manufacturer’s products in some way • Offer free goods, which are extra cases of merchandise, to resellers who buy a certain quantity or who feature a certain flavor or size • Free specialty advertising items that carry the company’s name, such as pens, pencils, 2.4 calendars, paperweights, matchbooks, memo pads, and yardsticks Business promotion Business promotions are used to generate business leads, stimulate purchases, rewardcustomers, and motivate salespeople Many companies and trade associations organize conventions and trade shows to promotetheir products Firms selling to the industry show their products at the trade show.Some trade shows are huge For example, at this year’s International Consumer Electronics Show, 3,000 exhibitors attracted some 120,000 professional visitors Even more impressive, at the BAUMA mining and construction equipment trade show in Munich, Germany, more than 3,100 exhibitorsfrom 53 countries presented their latest product innovations to more than 415,000 attendees from more than 200 countries Total exhibition space equaled about 5.9 million square feet (more than 124 football fields) A sales contest is a contest for salespeople or dealers to motivate them to increase their sales performance over a given period Sales contests motivate and recognize good company performers, who may receive trips, cash prizes, or other gifts Developing the sales promotion program Beyond selecting the types of promotions to use, marketers must make several decisions in designing the full sales promotion program First, they must determine the size ofthe incentive.The marketer also must set conditions for participation Incentives might be offered to everyone or only to select groups.Marketers must determine how to promote and distribute the promotion program itself Increasingly, marketers are blending several media into a total campaign concept The length of the promotion is also important If the sales promotion period is too short, many prospects (who may not be buying during that time) will miss it Clearly, sales promotion plays an important role in the total promotion mix Page 25 of 26 THE DIFFIRENCES BETWEEN PERSONAL SELLING & SALES V PROMOTION BASIS FOR CUSTOMER Meaning Consequence Cost involved Communication Customers Incentive schemes and offers Nature of product Method used for which kind of product - PERSONAL SELLING SALES PROMOTION Personal Selling is a marketing tool in which the sales person presents the goods to the customers and instigates them to purchase it Long term increase in sales High Face to face Few Not always present Sales Promotion is a range of non-personal marketing activities that are carried on to initiate sales of product and service Short term increase in sales Comparatively less Indirect Many Always present Customized and technically complex High value Standardized and easy to understand Low value Purpose • Personal Selling: is to create awareness and build a long term relationship which will lead to closing the sale Sales Promotion: is to increase the sales and dispose of stocks in a short time Personal Interaction • Personal Selling: is performed by individuals and has a face to face interaction • - where customers are offered information on products, and mutual long-term relationships are built • Sales Promotion: does not have any personal interaction and offers incentives to - encourage purchase and to disseminate information Incentives • Personal Selling: is negotiation based, and incentive is an option But, it’s not mandatory • Sales Promotion: would definitely have an incentive element to entice customers to increase sales Page 26 of 26 - Nature of Product • Personal Selling: will be used for products which may have the characteristics of high value, technically complex, or custom made The product may have any • - one of the above characteristics or more Sales Promotion: will be used for products which usually have a low value, standardized or easy to understand usage Market Size • Personal Selling: is used in markets with less potential customers or customers with high purchasing power • Sales Promotion: is used in markets where a larger number of customers exists - and the product is of low value comparatively Cost of Undertaking • Personal Selling: is expensive as it needs employee training, dedicated • workforce, repeated visits and transportation Sales Promotion: is less expensive to conduct ⇒The above factors differentiate personal selling and sales promotion Though both of them are part of a marketing communication the purpose they serve and the process adopted reflect the different dimension of each But, both are effective tools for integrated marketing communications THE END [...]... sale Sales Promotion: is to increase the sales and dispose of stocks in a short time Personal Interaction • Personal Selling: is performed by individuals and has a face to face interaction • - where customers are offered information on products, and mutual long-term relationships are built • Sales Promotion: does not have any personal interaction and offers incentives to - encourage purchase and to... on selected Stihl power lawn and garden tools if it agrees to advertise them in local newspapers 1 The rapid growth of sales promotion 1.1 Target Page 21 of 26 This tool userstarget toward final buyers (consumer promotions), retailers and whole-salers (trade promotions), business customers (business promotions), and members of the sales force (sales force promotions) .sales promotion accounts for 77 percentof... BETWEEN PERSONAL SELLING & SALES V PROMOTION BASIS FOR CUSTOMER Meaning Consequence Cost involved Communication Customers Incentive schemes and offers Nature of product Method used for which kind of product - PERSONAL SELLING SALES PROMOTION Personal Selling is a marketing tool in which the sales person presents the goods to the customers and instigates them to purchase it Long term increase in sales High... face Few Not always present Sales Promotion is a range of non -personal marketing activities that are carried on to initiate sales of product and service Short term increase in sales Comparatively less Indirect Many Always present Customized and technically complex High value Standardized and easy to understand Low value Purpose • Personal Selling: is to create awareness and build a long term relationship... feeling that sales people have about their opportunities, value, reward for a good performance • Sales quotas: standards stating the amount they should sell and how sales should be divided among the company’s products • Positive incentives: increase the sales force effort + Sales meetings + Sales contest + Honors, merchandise and cash award, trips, profit-sharing plans 6 Evaluating Salespeople and sales force... management to develop and communicate clear standard for judging performance III PERSONAL SELLING PROCESS The goal of the personal selling process is to get new customers and obtain orders from them The Selling Process consists of seven steps Page 18 of 26 1 Prospecting and Qualifying The first step in the selling process is Prospecting—identifying qualified potential customers The salesperson must often... buyers.Telemarketers and Web sellers use the phone and internet to find new leads and qualify prospects or sell and service account directly The company may have an outside sales force, an inside sales force or both.Some inside salespeople provide support for the outside sales force More specifically, technical sales support people provide technical information and answer customer’s questions Sales assistants... increase current sales, and they view promotion as an effective short-run sales tool • Externally, Company faces more competition, and competing brands are less differentiated Competitors are using sales promotion tohelp differentiate their offers • Advertising efficiency has declined because of rising costs, media clutter, and legal restraints • Consumers have become more deal oriented 1.3 Sales Promotion. .. more Sales Promotion: will be used for products which usually have a low value, standardized or easy to understand usage Market Size • Personal Selling: is used in markets with less potential customers or customers with high purchasing power • Sales Promotion: is used in markets where a larger number of customers exists - and the product is of low value comparatively Cost of Undertaking • Personal Selling: ... structure, it is ready to consider sales force size The addition of salespeople increases sales considerably more than the selling cost However, as salespeople continue to be added, sales increases tend to decline until a point is reached when the costs to add a salesperson are more than the revenue that salesperson can make Some sales force are huge such as PepsiCo employs 36 000 salespeople Many companies