Principles of Marketing
Eighteenth Edition, Global Edition
Chapter 16
Personal Selling and
Sales Promotion
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Learning Objectives
16.1 Discuss the role of a company’s salespeople in
engaging customers, creating customer value,
and building customer relationships.
16.2 Identify and explain the six major sales force
management steps.
16.3 Discuss the personal selling process, distinguishing
between transaction-oriented marketing and
relationship marketing.
16.4 Explain how sales promotion campaigns are developed
and implemented.
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Personal Selling
Personal selling
Face-to-face Telephone Video or web
communication communication conferencing
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Personal Selling
Linking the
Company with
Its Customers
The roles of
sales force
Coordinating
Marketing and
Sales
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Managing the Sales Force
Figure 16.1 Major Steps in Sales Force Management
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Managing the Sales Force
Step 1. Designing Sales Force Strategy and Structure
Sales Force Structure
Territorial Product Customer
each salesperson is assigned
an exclusive geographic area
and sells the company’s full
line of products and services to
all customers in that territory.
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Managing the Sales Force
Step 1. Designing Sales Force Strategy and Structure
Sales Force Structure
Territorial Product Customer
each salesperson sells
along product lines.
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Managing the Sales Force
Step 1. Designing Sales Force Strategy and Structure
Sales Force Structure
Territorial Product Customer
each salesperson sells along
customer or industry lines.
=> Improves customer relationships
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Managing the Sales Force
Step 2. Recruiting and Selecting Salespeople
Careful selection and training sales performance
Recruiting and
training costs
Problems of
poor selection Sales
???
Customer
relationships
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Managing the Sales Force
Step 3. Training Salespeople
Goals of training
➢ Customer knowledge
➢ Selling process
➢ Knowledge of products, company, competitors
E-training can make sales training
more effective and more engaging.
BLP’s game-based sales-training tool.
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Managing the Sales Force (10 of 14)
Step 4. Compensating Salespeople
A good compensation plan
both motivates salespeople
and directs their activities.
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Managing the Sales Force
Step 5. Supervising Salespeople
Salespeople work smart by doing the right things
in the right ways.
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Managing the Sales Force
Step 5. Supervising Salespeople
Sales force automation
➢ help salespeople work more efficiently and effectively anytime,
anywhere,
➢ salespeople equipped with laptops or tablets, smartphones,
wireless connections, videoconferencing technologies, and
customer relationship management software.
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Managing the Sales Force
Step 6. Motivating Salespeople
Sales morale and performance can be
increased through
✓ Organizational climate
✓ Sales quotas
✓ Positive incentives
Sales quotas are standards stating the
amount salespeople should sell and
how sales should be divided among
the company’s products
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Managing the Sales Force
Step 7. Evaluating Salespeople and
Sales Force Performance
➢ Sales reports
➢ Call reports
➢ Expense reports
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The Personal Selling
Process
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The Personal Selling Process
Figure 16.2 Steps in the Selling Process
Building and maintaining profitable customer relationships
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The Personal Selling Process
Step 1. Prospecting
identify potential customers
➢ Current customers
➢ Suppliers
➢ Dealers
➢ Internet
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The Personal Selling Process
Step 2. Preapproach
the process of learning
needs, characteristics and styles of buyers.
Step 3. Approach
the process where the salesperson
meets and greets the buyer and gets
the relationship off to a good start
➢ Personal visit
➢ Phone call
➢ Letter/email
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The Personal Selling Process
Step 4. Presentation
➢ tells the product story
➢ presenting customer benefits
➢ showing how the product solves
the customer’s problems.
Great salespeople know how to
sell, but more important, they
know how to listen and build
strong customer relationships.
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The Personal Selling Process
Step 5. Handling objections
Salespeople resolve problems that are
logical, psychological, or unspoken.
Step 6. Closing
➢Recognize signals from the buyer—physical
actions, comments, and questions
➢Ask for a order and finalize the sale.
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The Personal Selling Process
Step 7. Follow-up
the salesperson follows up after the sale to ensure
customer satisfaction and repeat business.
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Sales Promotion
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Sales Promotion
➢ Product managers are under pressure to increase
current sales.
➢ Companies face more competition.
➢ Competing brands offer less differentiation.
➢ Advertising efficiency has declined due to rising costs,
clutter, and legal constraints.
➢ Consumers have become more deal-oriented.
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Sales Promotion Objectives
Consumer promotions
Sales promotion
objectives
Trade promotions
Business promotions
Sales force promotions
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Sales Promotion Tools
❖ Samples offer a trial amount of a product.
❖ Coupons are certificates that give buyers
a saving when they purchase specified
products.
❖ Rebates are similar to coupons except
that the price reduction occurs after the
purchase.
❖ Price packs offer consumers savings off
the regular price of a product.
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Sales Promotion Tools
➢ Premiums are goods offered either
for free or at a low price.
➢ Advertising specialties are
useful articles imprinted with the
advertiser’s name, logo, or message
that are given as gifts to consumers.
➢ Point-of-purchase promotions
include displays and demonstrations
that take place at the point of sale.
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Sales Promotion Tools
➢ Contests, sweepstakes, and games give consumers the chance
to win something—such as cash, trips, or goods—by luck or through extra
effort.
• Contests require an entry by a consumer.
• Sweepstakes require consumers to submit their names for a drawing.
• Games present consumers with something that may or may not help them
win a prize.
➢Event marketing or event sponsorship is creating a brand-
marketing event or serving as a sole or participating sponsor of events
created by others.
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Sales Promotion Tools
Contests, sweepstakes, and games ???
give consumers the chance to win something
such as cash, trips, or goods
Event marketing or event sponsorship
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Sales Promotion
Conventions and trade shows are effective to reach
many customers not reached with the regular sales force.
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Sales Promotion
Developing the Sales Promotion Program
✓ Size of the incentive
✓ Conditions for participation
✓ Promotion and distribution of the program
✓ Length of the program
✓ Evaluation of the program
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