Chapter 13 SH

Chapter 13
Personal Selling and

Sales Promotion
Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

1
Overview
• Five elements IMC: advertising, public relations
personal selling, sales promotion, direct & digital
marketing
– Personal selling: interpersonal interactions to
engage customers, build relationships
– Sales promotion: short term incentives to
encourage customer purchasing, reseller support
Copyright © 2021 Pearson Canada, Inc. All Rights Reserved 2

Objectives Outline
13.1 Discuss the role of a company’s salespeople in
engaging customers, creating customer value, and
building customer relationships.
13.2 Identify and explain the six major sales force
management steps.
13.3 Discuss the personal selling process,
distinguishing between transaction-oriented
marketing and relationship marketing.
13.4 Explain how sales promotion campaigns are
developed and implemented.

Salesforce: You Need a Great Sales
Force to Sell Salesforce
• SalesForce provides customer
relationship management solutions
• Salesforce’s “Customer Success
Platform” helps customers
“supercharge their sales.”
• AI predicts customer outcomes based on sales data, social
media. Cloud software, available anywhere
• Not salespeople who are pushy, but those who listen and
help with solutions
• It has own experienced, well-trained, motivated sales reps
– Selective recruiting programs, well compensated
– Teams: listen, learn, empathize, offer solutions
Objective 13.1 –
Personal Selling (1 of 2) role of a company’s
salespeople
• Sales forces everywhere: companies, universities,
museums, government
• Personal selling: Personal presentations by a sales
force to engage customers, make sales, and build
customer relationships
• Salesperson: Represents a company to customers
by performing the following activities:
– Prospecting and communicating
– Selling and servicing
– Gathering information and building relationships

Personal Selling (2 of 2)
• Professional selling takes more than fast talk and a warm
smile to sell expensive $2 million GE locomotives.
• GE’s real challenge is to win and keep business by
building day-in, day-out, year-in, year-out partnerships
with customers.

The Role of the Sales Force
• Interactions by phone, email, social media, video
• Sales force probes consumers to learn more about
product, adjust marketing offer meet customers’ needs
• Linking the company with its customers:
– Represent the company, represent the customers
 To many customers, salesperson is the company
 Salesperson-owned loyalty relationships
• Coordination marketing (planners, brand managers,
content managers) and sales
– Both sides should work together to create value
– Open communications between both groups
– Have joint objectives and reward systems
– Have high-level executives to oversee both groups
Objective 13.2 – six
Managing the Sales Force (1 of 2) major sales force
management steps
Source: YouTube, Pipedrive

Managing the Sales Force (2 of 2)
Sales force management—analyzing, planning,

implementing, and controlling sales force activities
Figure 13.1 Major Steps in Sales Force Management

1. Designing the Sales Force Strategy and
Structure (1 of 4)
Sales Force Structure: Types of sales force structures:
• Territorial: each person assigned to a geography, sell
company’s full line.
– Create relationships, selling effectiveness, low travel costs
• Product: sales force specializes by product lines
– Product specialization is required
– GE by divisions of major businesses: aviation, energy,
transportation, health care (then, diagnostic, imaging, etc.)
• Customer (or market): sales force by customer, industry line
– Closer relationships, meet individual needs
– P&G: Teams for Walmart, Safeway, CVS
• Complex: combines several types (two or more)
– P&G: By customer (Walmart, CVS) and territory
Structure (2 of 4)
Sales Force Size
• May range from only a few to thousands
• Increasing number increase sales and costs
• Companies may use the workload approach to set
sales force size.
– Accounts grouped into classes based on size, status, or
the amount of effort required to maintain the account
– Then determine number of salespeople needed to call
on each class of accounts
 Number of accounts, number of calls per year, avg. call
per person (1000, 30, 500 = 60)

Structure (3 of 4)
Other Sales Force Strategy and Structure Issues
• Outside sales force (field sales force): Travels to call on
customers in the field
• Inside sales force: Conducts business from their offices via
phone, online, social media, or visits from the buyers. Has grown
in recent years
– Technical sales support people: provide technical info to customers
– Sales assistants: track leads, appointments, deliveries, etc.
– Telemarketers and online sellers: sell service directly
• Team selling: Teams of people from different departments used to
service large, complex accounts (rather than one person)
– Can overwhelm customers, hard to reward individual contributions,
trust among team members
Structure (4 of 4)
• Digital, mobile, social media

selling is cheaper, and people
inclined to prefer over face-to-
face contact
• Hence, inside selling growing
faster than in-person selling
• And a growing proportion of
outside selling is now done
over a phone or mobile
device.

2. Recruiting and Selecting Salespeople
• Poor selection can result in costly turnover, costs of
training, lost sales, disrupts consumers, team morale
– 30% of salespeople might bring 60% of the sales
• Companies should analyze the sales job and the
characteristics of its most successful salespeople.
– Motivated by purpose, disciplined with work plans, able to
close sales, build relationships with customers, solve problems
• Sources for the recruitment of salespeople:
– Referrals from current salespeople
– Employment agencies
– Internet and online social media
– Posting ads and notices
– College placement services
– Salespeople at other companies
3. Training Salespeople
• Goals of training are to teach salespeople
– About different types of customers, needs, and how to
build relationships
– How to sell effectively
– About the company’s objectives, organization, products,
and the strategies of competitors
• Online training builds sales skills using videos, internet-
based exercises, or simulations.
– Virtual instructor-led training (VILT)
– Single-pass games Knowledge Guru

4. Compensating Salespeople (1 of 2)
• Elements of compensation
– Fixed amount—salary
– Variable amount—commissions or bonuses
– Expenses
– Fringe benefits
• Compensation should direct salespeople to activities
consistent with sales force & marketing objectives
• Companies are moving away from high-commission for
short term accounts
– More about long-term customer relationships
• Cutting sales force compensation across the board is

usually an action of last resort
4. Compensating Salespeople (2 of 2)
• A good compensation plan both motivates
salespeople and directs their activities.

5.1 Supervising Salespeople
• Help salespeople work smart by doing the right things
in the right ways
• Tools of supervision:
– Call plan: which customers/prospects to call; which activities
– Time-and-duty analysis
– Sales force automation system: laptops or tablets,
smartphones, wireless connections, videoconferencing
technologies, customer relationship management software.

5.2. Motivating Salespeople
• Encourage salespeople to work hard and
energetically toward sales force goals
• Salespeople often work alone, travel, face competition
• Management can boost sales force morale and
performance through its
– Organizational climate: feeling salespeople have about
opportunities, value, rewards
– Sales quotas: compensation often related to it
– Positive incentives: sales meetings, sales contests,
honours, merchandise, cash awards, trips, profit sharing
plans

6. Evaluating Salespeople and Sales
Force Performance
• Management gets information about its salespeople
– From sales reports, call reports, expense reports
– By monitoring the sales and profit performance data in
the salesperson’s territory
– Through personal observation, customer surveys, and
talks with other salespeople
• Formal evaluations force management to develop
standards for judging performance
– Provides constructive feedback, motivates to perform well
• Evaluate as a whole: sales, collaboration with other
areas, costs and outcomes
Social Selling: Online, Mobile, & Social
Media Tools (1 of 2)
Source: YouTube, Brand 24, What is social selling? (…)

Social Selling: Online, Mobile, & Social
Media Tools (2 of 2)
• Social selling: use of online, mobile, social media, video tech, AI
assistants
• Provide salespeople with powerful tools for
– Identifying and learning about prospects
– Engaging customers
– Creating customer value
– Closing sales
– Nurturing customer relationships
• Help sales forces to be more efficient, cost-effective, productive
– Customers today carry more of buying process on their own
– Want less of product, pricing info, more about problem solving,
solutions
• Combine social selling with traditional selling
Objective 13.3 –
The Personal Selling Process personal selling
(1 of 3) process
Figure 13.2: Seven Steps in the Selling Process

The Personal Selling Process (2 of 3)
1. Prospecting and Qualifying: identify qualified potential
customers
– Best source is referrals from suppliers, social media, etc.
2. Preapproach: learn about organization and its buyers

– Have call objectives: gather info, method to reach, timing
3. Approach: How to meet, greet buyer, initiate relationship

– Appearance, opening lines, following-up remarks
4. Preparations and Demonstration: Tell how company solves

problems – customer-solution approach
– Listen to buyers
– Plan presentation methods, good interpersonal skills, be
engaging
The Personal Selling Process (3 of 3)
5. Handling Objections: Positive approach
– Seek hidden objections, ask to clarify, take actions, turn into
reasons for buying
6. Closing: Have confidence about asking for the order at right
moment
– Recognize signals: physical actions, comments, questions
– Use closing techniques: might not be available later, price, etc.
7. Follow-Up: To ensure customer satisfaction, repeat business

– Complete details on delivery, terms, other matters
– Follow-up call for installation , instruction, servicing

Objective 13.4 – sales
Sales Promotion (1 of 2) promotion campaigns
• Short-term incentives to encourage the purchase or

sale of a product or a service
– Advertising offers reasons to buy, sales promotion offers
reasons to buy now ($2 off UberEATS delivery)
• Sales promotion targets
– Final buyers—Consumer promotions
– Retailers and wholesalers—Trade promotions
– Business customers—Business promotions
– Members of the sales force—Sales force promotions

Sales Promotion (2 of 2)
• Factors contributed to rapid growth of sales promotion
– Product managers trying to increase sales.
– To compete and differentiate from competitors
– Advertising efficiency has declined
– Consumers are more deal-oriented
• Promotion clutter: like advertising clutter
• To develop a sales promotion program must:
– Set sales promotion objectives
– Select the best tools to accomplish objectives

Sales Promotion Objectives
1. Consumer promotions: To urge short-term customer
buying or boost customer-brand engagement
2. Trade promotions: To get retailers to carry new items,
more inventory, buy ahead, promote company’s
products, give more shelf space
3. Business promotions: To generate business leads,
stimulate purchases, reward customers, motivate
salespeople
• Usually go together with advertising, personal selling,
direct and digital marketing
• Use to build long-term relationships: loyalty programs

Sales Promotions
Source: YouTube, Educationleave, What is Sales promotion? (…)

1. Consumer Promotion Tools (1 of 2)
Tools Description
• Offers of a trial amount of a product
Samples • Most effective and expensive
• By mail or handed (Ben & Jerry’s)
• Certificates that save buyers money when
Coupons purchase specified products
• Promote new brand or stimulate mature brand.
• Price reduction occurs after the purchase
Rebates (cash
• Customer sends proof of purchase to
refunds)
manufacturer, then refunds part price by mail
• Offers consumers savings off the regular price
Price packs (cents-off of a product
deals) • E.g., two for price of one, bundle shampoo &
conditioner. Effect increase short-term sales
• Goods offered either free or at low cost as an
Premiums incentive to buy a product
• In-pack, on-pack, by mail (toys in Happy Meal)

1. Consumer Promotion Tools (2 of 2)
Tools Description
Advertising specialties • Useful articles imprinted with advertiser’s
(promotional products) name, logo, or message given as gifts to
consumers
Point-of-purchase • Displays & demonstrations at the point of sale
(POP) promotions • Like free tastes of featured food at supermarket
Contests, • Give consumers chance to win something
sweepstakes, and ─ Contest: submit an entry
games ─ Sweepstakes: name on a drawing
─ Game: bingo, missing letters
Event marketing • Creating a brand-marketing event or serving as
(or event sponsorships) sponsor of events created by others
• Festivals, marathons, concerts
• Fastest growing area of promotion
• If effective links events to brand’s value position
• One time not as effective as event campaigns

Event Marketing
• #HappiMess campaign, Delta Faucet shows consumers firsthand
how well low-flow showerheads worked under tough conditions.
• Red Bull: Unique product, brand personality, event-marketing
approach
– “Red Bull Gives You Wings”: To broaden narrow target segment
– Constant participation in small events (also large)
– Site has a selection of video clips organized by events

2. Trade Promotions
• Used to persuade resellers to carry a brand, give it
shelf space, promote it in ads, push it to consumers
• Trade promotion tools:
– Contests, premiums, and displays: Like customer
promotion
– Discounts and allowances: Price off per case or lower
price for displaying
– Free goods: Extra cases of merchandise
– Push money: To push manufacturers’ goods
– Specialty advertising items: Pens, calendars, etc.

3. Business Promotions
• Used to generate business leads, stimulate purchases,
reward customers, and motivate salespeople
• Business promotion tools:
– Conventions and trade shows: To promote products,
find sales leads, reach customers
– Sales contests: To motivate salespeople or dealers to
increase sales.
 Trips, cash prizes, gifts

Developing the Sales Promotion
Program
• Sales promotion program design decisions:
– Determine the size of the incentive (small vs. large)
– Set conditions for participation (everyone vs. selected)
– Determine how to promote and distribute the promotion
program ($2 off in an ad)
– Set the length of the promotion (short vs. long)
– Evaluate the promotion (compare sales before, after;
new customers vs. existent, new relationships or not)

Class Discussion #1
• Your team (10 min)
• Discussion:
– Which sales promotion tools would you use for your
product/service, and how? Refer to slides 28-31
– How could your company start promote using event marketing?
– For example: pregnancy app
• Contests, sweepstakes, and games: The app would give parents a
chance to win baby gear based on contests regarding participation
in parents' forums.
• Event marketing: The app will promote many small “Me & baby”
groups, they are usually small and informal, and could benefit from
sponsors to be able to operate
– 2-3 groups selected randomly. Count for group
participation
Objective Outline 13.1 Summary
• Personal selling—engaging customers, making sales,
and building customer relationships
• A sales force serves as a critical link between a
company and its customers.
– Prospecting, communicating, selling, servicing,
information gathering, and relationship building

• Sales force management—analyzing, planning,
implementing, and controlling sales force activities
• Major steps in sales force management:
– Designing sales force strategy and structure, recruiting,
selecting, training, compensating, supervising, and
evaluating the firm’s salespeople

• Selling involves a seven-step process:
– Prospecting and qualifying, preapproach, approach,
presentation and demonstration, handling objections,
closing, and follow-up
• Relationship marketing
– Profitable long-term relationships
– Based on customer value and satisfaction

• Sales promotion objectives—consumer promotions,
trade promotions, and business promotions
• Consumer promotion tools—samples, coupons,
rebates, price packs, and premiums
• Trade promotion tools—contests, premiums, and
displays, discounts and allowances, free goods, push
money, and specialty advertising items
• Business promotion tools—conventions and trade
shows, and sales contests

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Chapter 13

Personal Selling and

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

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Source: YouTube, Pipedrive

Sales force management—analyzing, planning,

Figure 13.1 Major Steps in Sales Force Management

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• Digital, mobile, social media

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• Cutting sales force compensation across the board is

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Source: YouTube, Brand 24, What is social selling? (…)

Figure 13.2: Seven Steps in the Selling Process

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2. Preapproach: learn about organization and its buyers

3. Approach: How to meet, greet buyer, initiate relationship

4. Preparations and Demonstration: Tell how company solves

7. Follow-Up: To ensure customer satisfaction, repeat business

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• Short-term incentives to encourage the purchase or

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Copyright © 2021 Pearson Canada, Inc. All Rights Reserved 28

Source: YouTube, Educationleave, What is Sales promotion? (…)

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