Chapter 16 - Personal Selling and Promotion.docx

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Management and Organizational Studies
Management and Organizational Studies 2320A/B
Kevin Thompson

Personal Selling and Promotion 4/18/2013 11:44:00 AM Personal Selling  One of the oldest professions in the world  Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.  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 of area. 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 structures.  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. Team Selling  When companies are large and products become more complex a single person cannot handle all duties.  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 accounts.  To service large and complex accounts. Selecting  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 relationships. Recruiting Training Compensating  Motivate and direct activities.  Move away from high commission plans but now moving toward rewarding salespeople for building customer long term relationships Supervising  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
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