Chapter 16: Personal selling and Sale promotion

16.1: Discuss the role of a company’s salespeople in creating value for customers and building customer
relationships.
Personal selling: are personal presentations by the firm's sales force for the purpose of making sales and
building customer relationships.
A salesperson is an individual representing a company to customers by performing one or more of the
following activities: prospecting, communicating, selling, services, information gathering and relationship
building.
Personal selling is an interpersonal part of the promotion mix. The sales force is a link between the
company and its customers. Sales people represent the company to customers, but at the same time they
represent customers to a particular company.

 Face-to-face communication
 Telephone communication
 Video or Web conferencing
16.2: Identify and explain the six major sales force management steps.
Sales force management means analysing, planning, implementing and controlling sales force activities.
There are six major steps in the sales force management process:

1. Designing the sales force strategy.

a. The Sales Force Structure
A territorial sales force structure is about each salesperson has a specific geographic area to sell all the
company's products and services.
• Defines salesperson's job
• Fixes accountability
• Lowers sales expenses
• Improves relationship building and selling effectiveness
Product sales force structure is A sales force organization in which Salespeople specialize in selling
specific product lines
 Improve product knowledge
 Can lead to territorial conflict
Customer (or market) sales force structure: Salespeople focus on specific customer types or industries
 Improve customer relationships.
b. Sales Force Size
Salespeople are one of the company's most productive and expensive assets.
Workload approach to sales force size refers to grouping accounts into different classes to determine the
number of salespeople needed
 Sales forces may range in size from only a few salespeople to tens of thousands
c. Other Sales Force Strategy and Structure Issues
• Outside sales force (field sales force) are salespeople who travel to call on customers in the
field.
• Inside sales force are salespeople who conduct business from their offices via telephone,
online and social media interactions, or visits from prospective buyers.
• Team selling involves Using teams of people from sales, marketing, engineering, finance,
technical support, and even upper management to service large, complex accounts.

2. Recruiting salespeople
Careful selection and training increases sales performance.
Poor selection increases recruiting and training costs, leads to lost sales, and disrupts customer
relationships.
The success of a sales force operations depends on the skills of salespeople. Good sales people
are motivated, disciplined, have skills and knowledge and a great understanding of customer
needs.
Top salespeople: problem solvers & relationship builders
Different sales styles succeed - find the right fit when hiring
Gallup identified 4 key talents of top salespeople:

 Intrinsic motivation
 Disciplined work style
 Ability to close sales
 Ability to build relationships
3. Training salespeople
Most companies provide continuous sales training. Training programmes teach salespeople
what they need to know about their customers and give them the necessary skills.
4. Compensating salespeople
To attract good salespeople, they need to be compensated.
A sales force compensation plan can both motivate salespeople and direct their activities.
Compensation should direct salespeople toward activities that are consistent with the overall
sales force and marketing objectives
Compensation can consist of four elements:

 a fixed amount: lương cứng

 a variable amount: KPI, base on performance
 expenses: phụ cấp đi lại – tiền gửi xe, ăn trưa, chi phí đi công tác
 fringe benefits: insurance
5. Supervising salespeople
The goal of supervision is to help salespeople work smart by doing the right things in the right
ways.
The goal of motivation is to encourage salespeople to work hard and energetically toward sales
force goals.
Sales 2.0 is the merging of innovative sales practices within Web 2.0 technologies to improve
sales force effectiveness and efficiency. Beyond directing, sales managers must also motivate
salespeople.
Sales quota are standards that state the amount a salesperson should sell and how sales should
be divided among the company's products.
Organisational climate describes the feeling salespeople have about their opportunities and
rewards. Sales meetings provide occasions to air feelings.

6. Evaluating salespeople
The last step in the process is evaluating the salespeople. Information can be gathered in
different ways: sales reports, call reports and expense reports.
16.3: Discuss the personal selling process, distinguishing between transaction-oriented
marketing and relationship marketing.

The selling process are the steps that salespeople follow when selling, which include prospecting
and qualifying, pre-approaching, presenting an demonstrating, handling objections, closing and
following up.
1. Prospecting: a salesperson or company identifies qualified potential customers from:
 Customers
 Suppliers
 Dealers
 Internet
Qualifying involves identifying good customers and screening out poor ones by looking at

 Financial ability
 Volume of business
 Needs
 Location
 Growth potential
2. Pre-approaching: a salesperson learns as much as possible about a prospective customer
before making a sales call.

3. Approaching: a salesperson meets the customer for the first time and involves the
salesperson’s:

 Appearance
 Opening lines
 Follow-up remarks
4. Presenting: a salesperson tells the "value story" to the buyers, showing how the company's
offer solves the customer's problems.
5. Handling objections: a salesperson seeks out, clarifies and overcomes any customer objections
to buying.
6. Closing: a salesperson asks the customer for an order.
7. Following up: a salesperson follows up after the sale to ensure customer satisfaction and
repeat business.
The steps in the selling process can be described as transaction oriented. But in most cases, the
long-term goals are to develop a profitable relationship.

16.4: Explain how sales promotion campaigns are developed and implemented..
Sales promotion: short-term incentives to encourage the purchase or sale of product or service.
Sales promotions tools are used by most companies and can be consumer promotions, trade
promotions, business promotions and sales force promotions.
Rapid Growth of 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.
Sales promotion objectives can vary widely and are used together with other promotion mix
tools:
- Consumer promotions are sales promotion tools used to boost short-term customer buying and
involvement or enhance long-term customer relationships, including:
 samples (trial products),
 coupons (saving certificates),
 rebates: are similar to coupons except that the price reduction occurs after the purchase.
 price packs (money-off deals), Ví dụ: bộ sản phẩm gồm một chai dầu gội và một chai dầu
xả được bán cùng nhau với một giá ưu đãi so với việc mua từng sản phẩm tách rời.
 premiums (goods offered at low cost). Ví dụ: việc tặng kèm một chiếc áo thun miễn phí
khi mua một chai nước hoa, hoặc cung cấp dịch vụ giao hàng miễn phí khi mua một số
lượng sản phẩm nhất định.
 advertising specialties are useful articles imprinted with the advertiser’s name, logo, or
message that are given as gifts to consumers. Mua café trong katinat được tặng ly
 Point-of-purchase promotions include displays and demonstrations that take place at the
point of sale.)
 Contests: tổ chức cuộc thi – lựa ra bài thi hay nhất
 games are sales promotion tools.
 Sweepstakes: bốc thăm trúng thưởng
 Event marketing (event sponsorship) means creating a brand-marketing event or serving
as a sole or participating sponsor of events created by others.
- Trade promotions are sales promotion tools used to persuade resellers to carry a brand, give it
shelf space, promote it in advertising and push it to consumers.
 Discount
 Allowance
 Free goods
 Specialty advertising
- Business promotions are sales promotion tools used to generate business leads, stimulate
purchases, reward customers and motivate salespeople.
 Conventions and trade shows are effective to reach many customers not reached with
the regular sales force.
 Same tools consumer and trade
- Sale force promotion (for member of sale force)
Getting more sales force support for current or new product
Getting salespeople to sign up new accounts.
 Sales contests are effective in motivating salespeople or dealers to increase performance
over a given period.
 Developing the Sales Promotion Program
Determine Size of the incentive
Set Conditions for participation
Promotion and distribution of the program
Determine Length of the program
Determine Evaluation of the program

Chapter 17: Direct, online, social media, and mobile

marketing
17.1: Define direct and digital marketing and discuss their rapid growth and benefits to
customers and companies.
Direct and digital marketing involve engaging directly with carefully targeted individual
consumers and customer communities to both obtain an immediate response and build lasting
customer relationships.
The new direct marketing model
Early direct marketers—catalog companies, direct mailers, and telemarketers—gathered
customer names and sold goods mainly by mail and telephone.
Today, however, we use and buy products in digital technologies—from smartphones, tablets,
and other digital devices through online social and mobile media -> direct marketing has
undergone a dramatic transformation.
Rapid Growth of Direct and Digital Marketing
Direct and digital marketing have become the fastest-growing form of marketing.
Direct marketing continues to become more Internet-based, and digital direct marketing is
claiming a surging share of marketing spending and sales.
Benefits of Direct and Digital Marketing-Buyers

 Convenience
 Ready access to many products
 Access to comparative information about companies, products, and competitors
 Interactive and immediate
17.2: Identify and discuss the major forms of direct and digital marketing.

17.3: Explain how companies have responded to the internet and the digital age with various
online marketing strategies.
Marketing, The Internet, and the Digital Age
 Digital and social media marketing—Using digital marketing tools such as websites, social
media, mobile apps and ads, online video, email, and blogs that engage consumers anywhere,
anytime via their digital devices.
Omni-channel retailing creates a seamless cross-channel buying experience that integrates in-
store, online, and mobile shopping—creates a single shopping experience.
Online Marketing
- Online marketing is marketing via the Internet using company Web sites, online ads and
promotions, e-mail, online video, and blogs.
- Marketing Web sites engage consumers to move them closer to a direct purchase or other
marketing outcome.
- Branded community Web sites present brand content that engages consumers and creates
customer community around a brand.
- Online advertising is advertising that appears while consumers are browsing online and
includes display ads, search-related ads, online classifieds, and other forms.
- E-mail marketing involves sending highly targeted, highly personalized, relationship-building
marketing messages via e-mail.
- Spam is unsolicited, unwanted commercial e-mail messages.
- Online video marketing involves posting digital video content on brand Web sites or social
media sites such as YouTube, Facebook, and others.
- Viral marketing is the digital version of word-of-mouth marketing: videos, ads, and other
marketing content that is so infectious that customers will seek it out or pass it along to
friends.
- Blogs are online journals where people and companies post their thoughts and other content,
usually related to narrowly defined topics.
17.4: Discuss how companies use social media and mobile marketing to engage consumers and
create brand community.
Mobile marketing delivers messages, promotions, and other content to on-the-go consumers
through mobile phones, smartphones, tablets, and other mobile devices.
Advantages:

 Targeted and personal

 Interactive
 Immediate and timely
 Real-time marketing
 Cost effective
 Engagement and social sharing capabilities
Disadvantages:

 Out of control
 Low ROI
 Negative word of mouth
 User Privacy Concerns
 Screen Size Limitations:
  Distraction and Interruption
17.5: Identify and discuss the traditional direct marketing forms and overview public policy and
ethical issues presented by direct marketing
Direct-mail marketing involves an offer, announcement, reminder, or other item to a person at a
particular address.

 Personalized
 Easy-to-measure results
 Costs more than mass media
 Provides better results than mass media
Catalog direct marketing involves printed and Web-based catalogs.

Telemarketing involves using the telephone to sell directly to consumers and business
customers.

 Outbound telephone marketing sells directly to consumers and businesses.

 Inbound telephone marketing uses toll-free numbers to receive orders from television
Direct-response television marketing includes the following:
 60 to 120 second advertisements that describe products or give customers a toll-free
number or website for ordering
 30-minute infomercials such as home shopping channelsand print ads, direct mail, and
catalogs.
Kiosk Marketing

Public Policy Issues in Direct and Digital Marketing

- Irritation includes annoying and offending customers.
- Unfairness includes taking unfair advantage of impulsive or less-sophisticated buyers.
- Deception includes “heat merchants” who design mailers and write copy designed to mislead
consumers.
- Fraud includes identity theft and financial scams.
- Consumer privacy involves concerns that marketers may have too much information and use it
to take unfair advantage.