Personal Selling and Promotion 4/18/2013 11:44:00 AM
One of the oldest professions in the world
Personal presentation by the firm’s sales force for the purpose of making sales and building
Go by names of; sales people, sales representative, etc.
Used to have poor stereotype
However, modern day salespeople are well educated, well trained professionals. Listen to
their customers, asses their needs and organize the company’s efforts to try and help them.
Salesperson – covers a wide range of positions. An individual representing a company to
customers by performing one or more of the following activities: prospecting,
communicating, selling, servicing, information gathering, or relationship building.
May be an order taker; salesperson behind a cashier or an order getter, who’s positions
demand creative selling and relationship building for products and services.
Role of Sales Force
Advertising consists largely of nonpersonal communication.
Personal selling involves interpersonal interactions between them and the customer.
Links the company with its consumers. Represents both the company to the customers and
the customers to the company. To many the salesperson is the company.
Need sales people and marketers to work together to fully grasp full potential of company.
Managerial Sales Force
Sales Force Management – analysis, planning, implementation, and control of sales force
activities. It includes designing sales force strategy and structure, and recruiting, selecting,
training, supervising, compensating, and evaluating the firm’s sales people.
1) Designing Sales Force Strategy and Structure
Sales Force Structure
o Division of sales responsibilities
o 1) Territorial Sales Force Structure – a sales force organization that assigns each sales
person to an exclusive geographic territory in which the salesperson sells the company’s full line. Travel expenses small and build local relationships and expertise
o 2) Product Sales Force Structure – a sales force organization under which salespeople
specialize in selling only a portion of the company’s products or lines. Can gain
expertise. Good for company with many different products. However, could cause
problems if one company wants multiple products. Will have to contact many sales
reps and could be expensive.
o 3) Customer Sales Force Structure – a sales force organization under which
salespeople specialize in selling only to certain customers or industries. Help a
company build closer relationships with companies.
o 4) Product Sales Force Structure – a sales force organization under which salespeople
specialize in selling only a portion of the company’s products or line.
o Complex Sales Force Structures
When companies sell a wide variety of product to many types of consumers
over a broad geographical area, it often combines several types of sales force
Can be specialized by customer and territory, by product and territory, by
product and customer, etc.
A sales structure should be chosen based on what best serves the needs of
their customers and fits its overall marketing strategies.
Sales Force Size
Once set structure can not set size.
Constitute one of the most product and most expensive aspects of company. Increasing the
number will increase both sales and costs.
Workload Approach – a company first accounts into different classes according to size,
account status or other factors related to the amount of effort required to maintain them. It
then determines the number of salespeople needed to call on each class of accounts the
desired number of times.
Other Sales Force Strategy and Structure Issues
Outside and Inside Sales Forces
Outside Sales Force (field sales force) – outside salespeople who travel to call on customers
in the field. Inside Sales Force – who conduct business from their offices via telephone, the internet or
visits from prospective buyers.
When companies are large and products become more complex a single person cannot handle
Most companies now use team selling – using teams of people from sales, marketing,
engineering, finance, technical support and even upper management to service large, complex
To service large and complex accounts.
Careful selection can greatly increase overall sales.
Four key talents:
o Intrinsic motivation
o Disciplines work style
o Ability to close and sale
o Build relationships with customers
Driven by money, desire of recognition combined with service provision and building
Motivate and direct activities.
Move away from high commission plans but now moving toward rewarding salespeople for
building customer long term relationships
Help salespeople work smart
Time and duty analysis, call plan, new technologies
Higher supervision results in better time management, improved customer service, lower
sales costs, and higher sales performance.
Selling and the Internet o Offers potential for conducting sales operations and for interacting with and serving