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Chapter 15 Personal selling and sales promotion.docx

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Tauri Caputo

Chapter 15 – Personal Selling and Sales Promotion The evolution of personal selling:  Selling has been a standard business activity for thousands of years.  Professional salespeople are problem solvers who focus on satisfying the needs of customers before, during and after sales are made. Sales people pursue a common goal of creating mutually beneficial long term relationships with customers.  Personal selling is a vibrant, vital, dynamic process. as domestic and foreign competition increases emphasis on productivity, personal selling is taking on more prominent role in the marketing mix.  Sales people must communicate the advantages of their firms’ goods and services over those of the competitors. They must: o Focus on customer’s situation and needs and create solutions that meet those needs o Follow through and stay in touch before, during and after the sale. o know their own industry and their customers’ industry, and have a firm grasp not only of their own firm’s capabilities but also of their competitors’ abilities. o Work hard to exceed their customers’ expectation, even if it means going above and beyond the call of duty.  Relationship marketing affects all aspects of an organization’s marketing function, including personal selling. Now marketers need to develop different sales skills. Its all about building long lasting relationships with buyers by providing high levels of customer service rather than providing a quick sale. Factors affecting the importance of personal selling in the promotional mix Variable Conditions that favour Conditions that favour personal selling advertising Customer Geographically concentrated Geographically dispersed Relatively low numbers Relatively high numbers Product Expensive Inexpensive Technically complex Simple to understand Transactions frequently Transactions rarely involve require trade ins trade ins Price Relatively high Relatively low The Four Sales Channels: 1. Over the Counter Selling – personal selling conducted in retail and some wholesale locations in which customers come to the seller’s place of business to purchase desired items.  Example, at Best Buy, they follow the CARE montra … which stands for contact with the customer, ask questions to learn what are their needs, make recommendations to the customer and encouragement praising the customer for a wise purchase. 2. Field selling – sales presentation made at prospective customers’ locations on a face to face basis.  the sales person must convince customers first that they need the good/service and then that they need the particular brans the salesperson is selling.  More expensive than other selling options. To overcome this, some firms have replaced travel with conference calls or staying in less expensive hotels and paying less on meals.  For established customers in industries like food and wholesaling, the salesperson is basically the order takers who processes regular customer’s orders.  Network marketing is a new time of field selling which is a type of selling that relies on lists of family members and friends of the salesperson, who organizes a gathering of potential customers for a demonstration of products. 3. Telemarketing- promotional presentation involving the use of the telephone on an outbound basis by sales people or an inbound basis by customers who initiate calls to obtain information and place orders.  Serves 2 general purposes: sales and service, and 2 general markets: B2B and direct to customer.  Outbounding telemarketing involves a sales force that relies on the telephone to contact customers, reducing the substantial costs of personal visits to customer’s homes or businesses. Technologies increase chances that telemarketers will reach customers at home. i. Predictive diallers – weed out busy signals and answering machines, nearly doubling the number of calls made per hour. ii. Autodialling – allows telemarketers to dial numbers continually; when a customer answers the phone, the call is automatically routed to a sales representative. iii. Random digit dialling – allows telemarketers to reach unlisted numbers and block caller-ID.  Major drawback in telemarketing is that most consumers dislike the practice and have implemented a Canadian do not call list as of late 2008.  Marketers use telemarketing because the avg call cost is low and companies point to a significant rate of success.  Marketers also use inbound telemarketing which involves a toll free numbers that customers can call to obtain information. This form of selling provides maximum convenience for customers who initiate the sales process. 4. Inside selling  Selling by phone, mail and electronic commerce.  Inside sales reps perform 2 primary jobs: they turn opportunities into actual sales and they support technicians and purchasers with current solutions. Trends in Personal Selling 1. Relationship Selling – regular contacts between sales representatives and customers over an extended period to establish a sustained seller-buyer relationship.  such bonds become increasingly important as companies cut back on the number of suppliers and look for companies that provide high levels of customer service ans satisfaction.  Salespeople must also find ways to distinguish themselves and their products from competitors. To create strong, long lasting relationships with customers, salespeople must meet buyers’ expectations. what buyers expect from salespeople Buyers prefer to do business with salespeople who:  Orchestrate events and bring to bear whatever resources are necessary to satisfy the customer  Provide counselling to the customer based on in depth knowledge of the product, the market, and the customer’s needs  Solve problems proficiently to ensure satisfactory customer service over extended time periods  Demonstrate high ethical standards and communicate honestly at all times  Create imaginative arrangements to meet buyers’ needs  Arrive well prepared for sales calls. 2. Consultative Selling – involves meeting customer needs by listening to customers, understanding their problems, paying attention to details, and following through after the sale.  It works hand in hand with relationship selling in building customer loyalty.  Cross selling – offering many goods or services to the same customer, is another technique that capitalizes on a firm’s strengths.  Ex it costs a bank 5 times more to acquire a new customer than to cross sell to an existing one. 3. Team Selling – when a salesperson joins with specialists from other functional areas of the firm to complete the selling process.  Customers often prefer the team selling approach since it makes them feel well served.  Another advantage of team selling is the formation of relationships between companies rather than between individuals. Sales Tasks 1. Order Processing – selling, mostly at the wholesale and retail levels, that involves identifying customer needs, pointing them out to customers and comple
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