Chapter 15 – Personal Selling and Sales Promotion
Personal selling is critical to the success of many organizations
Salespeople are often the most important revenue generator
provide value to their organizations, if they are able to provide value to their
Sales promotion includes those marketing activities other than personal selling, advertising,
and publicity designed to enhance consumer purchasing and dealer effectiveness
The Evolution of Personal Selling
Personal selling is the process of a seller’s person-to-person promotional presentation to a
Interpersonal influence process, is basic to any enterprise
Seller needs to match the needs of a client/customer before, during and after sale
almost 10 percent of the Canadian labour force is employed in sales positions testifies to the
importance of selling
the single largest marketing expense in many firms
thousands of years old.
Personal selling is a vital, vibrant, dynamic process
The Four Sales Channels
Includes business-to-business and direct-to-customer selling
Personal selling conducted in retail and some wholesale locations in which customers come
to the seller’s place of business
Best Buy’s CARE Plus mantra has allowed it to outsell its competitors.
Sales presentations made at prospective customers’ locations on a face-to-face basis
Expensive travel expenses
In routine cases, the salesperson processes regular customers’ orders.
In more complex cases, the salesperson prepares for weeks, makes presentations, and
Developed g/s designed to help salespeople do their jobs
On a per call basis it’s Expensive because of :
Car Operating Costs
o Easily exceeds $100,000 per Rep
1 Field Rep can influence M’s of sales per Sales Territory
Maximum impact when company uses sustained Pull Strategy
Personal Selling is the most context-rich of all Promotional techniques Field Territories are Designed and Adjusted to reflect:
Direct sales potential
Indirect sales potential
# of Customers/Accounts
Types of Customers/Accounts
Work load balance across territories
Network marketing – Personal selling that relies on lists of family members and friends of
the salesperson, who organizes a gathering of potential customers for a demonstration of
Ex: Avon, Mary Kay Cosmetics
The selling process is conducted by phone.
Serves two purposes:
Serves two markets:
Outbound telemarketing – Sales method in which sales personnel place phone calls to
prospects and try to conclude the sale over the phone
o Predictive diallers
o Random-digit dialling
Most consumers dislike the practice and have signed up for the Canadian Do Not Call
Some firms still use telemarketing because:
The average call cost is low
Firms point to a significant rate of success
Inbound telemarketing – Sales method in which prospects call a seller to obtain
information, make reservations, and purchase goods and services
Call-center positions in Canada inbound
Technical knowledge and better sales process skills higher salaries
Selling by phone, mail, and electronic commerce
Lead generation. Turn opportunities into actual sales
Support technicians and purchasers with current solutions
go beyond taking orders to solving problems, providing customer service, and selling
relies on close working relationships with field sales representatives to solidify customer
Integrating the Various Selling Channels
how firms are likely to blend alternative sales channels to create a successful cost-effective
Existing customers whose business problems require complex solutions are likely to be best
served by the traditional field sales force. current customers who need answers but not the same attention as the first group can be
served by inside sales reps who call on them as needed.
Over-the-counter sales reps serve existing customers by supplying information and advice
and completing sales transactions.
Telemarketers may be used to strengthen communication with customers or to re-establish
relationships with customers that may have lapsed over a few months.
Trends in Personal Selling
Buyers prefer to do business with people who:
1. Orchestrate events and bring to bear whatever resources are necessary to satisfy the
2. Provide counseling to the customer based on in-depth knowledge of the product,
marketer and customers needs
3. Solve problems efficiently to ensure satisfaction service over time periods
4. Demonstrate high ethical standards and communicate honestly
5. Willingly advocate the customers cause within the selling organization
6. Create imaginative arrangements to meet buyers’ needs
7. Arrive prepared for sales calls
Consultative Selling (needs-driven)
Meeting customer needs by listening to them, understanding their problems, paying
attention to details, and following through after the sale
Online companies have instituted consultative selling models to create long-term customers.
Cross selling – Offering multiple goods or services to the same customer based on
knowledge of that customer’s needs Team Selling
A salesperson joins with specialists from other functional areas of the firm to complete the
Customers often feel better served by a team approach.
Relationships form between companies rather than between individuals.
companies establish permanent sales-and-tech teams that conduct all sales presentations
Virtual sales teams – A network of strategic partners, suppliers, and others who are
qualified and willing to recommend a firm’s goods or services
Selling, mostly at the wholesale and retail levels, that involves identifying customer needs,
pointing them out to customers, and completing orders
primary task in situations where needs can be readily identified and are acknowledged by
will devote some time persuading their wholesale or retail customers to carry more
complete inventories of their firms’ merchandise or to handle additional product lines
to try to motivate purchasers to feature some of their firms’ products, increase the amount
of shelf space devoted to these items, and improve product location in the store
Personal selling in which a considerable degree of analytical decision making on the buyer’s
part results in the need for skillful proposals of solutions for the customer’s needs
can generate “buzz” for a product
Used to develop new business with either new customers or new products
Missionary Selling (Detailing)
Indirect selling method in which salespeople promote goodwill for the firm by educating
customers and providing technical or operational assistance
May offer sales incentives such as trips, gas cards, or free product upgrades
Ex: a cosmetics company salesperson may call on retailers to check on special
promotions and overall product movement, even though a wholesaler takes
orders and delivers merchandise
salesperson services the retail customer, who then places an order on a wholesaler.
The Sales Process
AIDA concept and Personal Selling Process Prospecting and Qualifying
Prospecting – Identifying potential customers
Time-consuming and involves many sources
Ex. direct mail and advertising campaigns effective for identifying
Qualifying – Determining that the prospect really is a potential customer
Not all prospects are qualified to make purchase decisions.
telemarketers to prospect and qualify leads that are then handed over to salespeople
Prospects may fail to become customers for several reasons:
1. They do not really see a need.
2. They cannot afford to make a purchase.
3. They do not have the authority to make a decision.
4. They may be unwilling to consider making a purchase
Ex: I need a new car. I have a good credit rating and can get a loan. My spouse has agreed
that I can decide to buy one if I wish. (This meets three criteria.) Unfortunately, I am not
confident of the economy and so I do not want to make a purchase at this time. I do not meet
the fourth criteria. I am not a qualified prospect.
Initial contact with prospective customer
precall planning research to learn about the industry, the customer, his or her needs, and
how your products might best meet these needs
o Educate yourself about the industry in general; and g/s of competitors
o Read marketing research; go to trade shows (learn about companies and their
o Learn about the firm you’re approaching website, articles, press
Conveying the marketing message to the customer
A “features-benefits” framework focuses on the good or service in terms that are meaningful
to the buyer.
Presentations should be well organized, clear, and concise.
Technology must be used efficiently to be effective.
Cold calling – Contacting a prospect without a prior appointment
approach and presentation often take place at the same time.
Requires nerve, skill, and creativity
The customer has the opportunity to try out or otherwise see how a g/s works before
Multimedia interactive demonstrations are becoming more common.
Ex: Demonstration videos Black & Decker posts on its website
Key to an outstanding demonstration is planning
work because they visually prove any claims you may make
should be prepared to stop and answer questions, re-demonstrate a certain feature, or let
the customer try the product firsthand. Han