MKTG CHAPTER. Lamb, Hair, McDaniel. Sales Promotion and Personal Selling. Designed by Amy McGuire, B-books, Ltd.
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1 Lamb, Hair, McDaniel Designed by Amy McGuire, B-books, Ltd. MKTG 18 CHAPTER Sales Promotion and Personal Selling Prepared by Dana Freeman, B-books, Ltd.
2 Advantages of Personal Selling
3 Comparison Personal Selling is more important if... Product has a high value. Advertising & Sales Promotion are more important if... Product has a low value. Product is custom made. Product is standardized. There are few customers. Product is technically complex. Customers are concentrated. There are many customers. Product is simple to understand. Customers are geographically dispersed.
4 Personal Selling Detailed explanation or demonstration Personal Selling Advantages Variable sales message Directed to qualified prospects Controllable adjustable selling costs More effective than other promotion in obtaining sale and gaining customer satisfaction
5 Relationship Selling Relationship (Consultative) Selling A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.
6 Traditional Selling vs. Relationship Selling Sell products Traditional Personal Selling Focus on closing sales Limited sales planning Discuss product Assess product-specific needs Lone wolf approach Pricing/product focus LO 5 Short-term sales follow-up Relationship Selling Sell advice, assistance, counsel Focus on customer s bottom line Sales planning is top priority Build problem-solving environment Conduct discovery in scope of operations Team approach Profit impact and strategic benefit focus Long-term sales follow-up
7 Relationship Selling vs. Traditional Selling Sales Increases Result From Creating Value Initial Sales Repeat Sales Traditional Sales Successive Sales Relationship Sales
8 Selling in the Technology Age Personal selling has taken a technological turn Younger shoppers research styles and prices before setting foot in a store Not interested in interacting with salespeople Independent Shoppers ipads and touch screens are replacing sales personnel
9 CRM Customer Relationship Management The ultimate goal of a new trend in marketing that focus on understanding customers as individuals instead of as part of a group.
10 Customer Relationship Management
11 Identify customer relationships
12 Interactions of current database
13 Capture customer data Rather than focusing on the amount of data that can be obtained, companies should focus on the type of data to be acquired and how it can be used to enhance relationships
14 Common CRM marketing database application
15 CRM and Social Media
16 Steps in the Selling Process Generate Leads Qualify Leads Probe Customer Needs Develop Solutions Handle Objections Close the Sale Follow Up
17 Time Spent in Key Steps of Selling Process Key Selling Steps Traditional Selling Relationship Selling Generate Leads High Low Qualify Leads Low High Probe Needs Low High Develop Solutions Low High Handle Objections High Low Close the sale High Low Follow-up Low High
18 Generating Leads
19 Cold Calling Cold Calling A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects needs or financial status.
20 Qualifying Leads Recognized need Buying power Receptivity and accessibility
21 Needs Assessment Needs Assessment A determination of the customer s specific needs and wants and the range of options a customer has for satisfying them.
22 The Consultative Salesperson Product or service Salesperson must know everything about... Customers Competition Industry
23 Developing and Proposing Solutions Sales Proposal Sales Presentation
24 Powerful Presentations Be well prepared Use eye contact Ask open-ended questions Be poised Use hand gestures and voice inflection Focus on the customer needs Incorporate visual elements Know how to operate the A/V equipment Make sure the equipment works PRACTICE, PRACTICE, PRACTICE!
25 Handling Objections View objections as requests for information Anticipate specific objections Investigate the objection with the customer Be aware of competitors products Stay calm Use the objection to close the sale
26 Closing the Sale Look for customer signals Keep an open mind Negotiate Tailor to each market
27 Steps in the Selling Process Developing and proposing solutions Approaching Customer Qualifying Leads Generating Leads Closing the sale Handling objections A Continuing Process
28 Sales Management Sales managers must: Define sales goals and the sales process Determine the sales force structure Recruit and train the sales force Compensate and motivate the sales force Evaluate the sales force
29 Sales goal and the sales process Sales goals provide salespeople with targets and measurements. Usually goals are developed in terms of desired dollar values, market share, or profit level. Goals are stated as quotas, or statements of a salesperson s goals.
30 Sales Force Structure Sales department organization: Regional Product Line Marketing Function Performed Market or Industry Client or Account Allows for more specific and better customer service
31 The Sales Force
32 Compensating the sales force Compensation planning is one of the sales manager s toughest jobs. Only good planning will ensure that compensation attracts, motivates, and retains good salespeople. Although the compensation plan motivates a salesperson to sell, sometimes it is not enough to produce the volume of sales or the profit margin required by sales management.
33 Evaluating the sales force Performance evaluations allow managers to review the strengths and weaknesses of the sales force. This information can then tell a manager what sales skills might need to be reassessed or retrained.
34 Impact of technology on sales force
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