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Chapter 16

Chapter 16 Notes


Department
Management (MGM)
Course Code
MGMA01H3
Professor
Alison Jing Xu
Chapter
16

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Chapter 16 Personal Selling and Sales Promotion Notes
Personal Selling
The Nature of Personal Selling
personal selling personal presentation by firm’s sales force for purpose of making sales and building customer relationships
salesperson 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
The Role of the Sales Force
personal selling involves interpersonal interactions between salespeople and individual customers
personal selling can be more effective in complex selling situations—salespeople can probe customers to learn more about their
problems and then adjust the marketing offer and presentation to fit the special needs of each customer
Linking the Company with Its Customers
in many cases, salespeople serve both the seller and the buyer
salespeople find and develop new customers and communicate info about the company’s products and services
salespeople provide customer service and carry out market research and intelligence work
they relay customer concerns about company products and actions back inside to those who can handle them
Coordinating Marketing and Sales
a company can take several actions to help bring its marketing and sales functions closer together
at the most basic level, it can increase communications between the two groups by arranging joint meetings and by spelling out
when and with whom each group should communicate and the company can also create joint assignments
a company can also create joint objectives and reward systems for sales and marketing or appoint market-sales liaisons—people
from marketing who “live with the sales force” and help to coordinate marketing and sales force programs and efforts
firm can appoint chief revenue officer (or chief customer officer)—high-level marketing executive who oversees both marketing
and sales—as such person can hep infuse marketing and sales with goal of creating value for customers to capture value in return
Managing the 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 salespeople
the major steps in sales force management—designing sales force strategy and structure recruiting and selecting salespeople
training salespeople compensating salespeople supervising salespeople evaluating salespeople
Designing Sales Force Strategy and Structure
Sales Force Structure
territorial sales force structure a sales force organization that assigns each salesperson to an exclusive geographic territory in
which that salesperson sells the company’s full line
a territorial sales organization is often supported by many levels of sales management positions
product sales force structure a sales force organization under which salespeople specialize in selling only a portion of the
company’s products or line; can lead to problems if a single large customer buys many different company products
customer sales force structure organization under which salespeople specialize in selling to certain customers or industries
organizing the sales force around customers can help a company build closer relationships with important customers
many companies often combine several types of sales force structures when they sell a wide variety of products to many types of
customers over a broad geographic area—salespeople can be specialized by customer and territory, by product and territory, by
product and customer, or by territory, customer, and product
Sales Force Size
sales forces may range in size from only a few salespeople to tens of thousands
salespeople constitute one of the company’s most productive—and most expensive—assets
many companies use some form of workload approach to set sales force size, where a company first groups 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
sales management must decide who will be involved in selling effort and how sales and support people will work together
outside sales force (field sales force) outside salespeople who travel to call on customers in the field
inside sales force inside people who conduct business from offices via telephone, Internet, or visits from prospective buyers
some insiders provide support for outsiders freeing them to spend more time selling to major accounts and finding new prospects
team selling using teams of people from sales, marketing, engineering, finance, technical support, operations, technical and
support services, R & D, and even upper management to service large, complex accounts
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