Assignments, Resources
Use Discussion Questions 16-2 here
Use Critical Thinking Exercise 16-7 here
Use Marketing Ethics here
Use Think-Pair-Share 2 here
Troubleshooting Tip
The issues surrounding managing the sales force
can be difficult for some students. Individually,
each decision a sales manager needs to make seems
reasonable enough. A sales manager must have an
overall plan to develop and manage the sales force.
Understanding the way each decision relates to that
development plan may be confusing to many
students. These issues can be simplified by going
through each of the concepts carefully and
thoroughly. You may also want to have students
design their own sales force for a product or service
idea they have. This will really drive home the
concepts of how you design the sales force, as well
as all the management processes.
p. 489
PPT
16-20
p. 490
Evaluating Salespeople and Sales Force Performance
Management sources of salesperson information:
Sales reports
Call reports
Expense reports
Formal evaluation forces management to develop and
communicate clear standards for judging performance and
to provide salespeople with constructive feedback and
motivate them to perform well.
As with other marketing activities, the company wants to
measure its return on sales investment.
Social Selling: Online, Mobile, and Social Media Tools
The fastest-growing sales trend is the explosion in social
selling—the use of online, mobile, and social media to
engage customers, build stronger customer relationships,
and augment sales performance. New digital sales force
technologies are creating exciting new avenues for
connecting with and engaging customers in the digital and
social media age. These tools won’t make salespeople
obsolete; they will make them more productive and
p. 490
Key Term: Social
selling
p. 491
Photo: Online
selling tools
effective.
Review Learning Objective 2: Identify and explain the
six major sales force management steps.
Assignments, Resources
Use Discussion Question 16-3 here
Use Real Marketing 16.1 here
Use Company Case here
Troubleshooting Tip
Sales to most students equates to retail sales, a field
that many people dislike. Therefore, many students
will not be planning on a sales career, which could
cause them to “tune out” during this section. You
can bring them back by talking about the nature of
selling in various kinds of service firms (e.g.,
accounting firms) that many students may be
heading toward after graduation. Also, a discussion
of the sophistication and professionalism of the
salespeople in companies such as Dell and other
business-to-business companies can generate some
enthusiasm for this important field.
p. 493
PPT
16-21
PPT
16-22
p. 493
Discuss the personal selling process, distinguishing
between transaction-oriented marketing and
relationship marketing.
THE PERSONAL SELLING PROCESS
Steps in the Selling Process (Figure 16.3)
The selling process consists of seven steps:
1. Prospecting and qualifying
2. Preapproach
3. Approach
4. Presentation and demonstration
5. Handling objections
6. Closing
7. Follow-up
Prospecting and Qualifying
Prospecting involves identifying qualified potential
customers.
Learning Objective
3
p. 493
Figure 16.3: Steps
in the Selling
Process
p. 493
Key Terms: Selling
process,
Prospecting
PPT
16-23
p. 494
PPT
16-24
PPT
16-25
PPT
16-26
The best source of prospects is referrals.
Sources of referrals:
Current customers
Suppliers and dealers
Noncompeting salespeople
Online or social media contacts
Dropping in unannounced on various offices (a
practice known as cold calling)
Qualifying a lead involves learning how to identify the
good ones and screen out the poor ones.
Prospects can be qualified by:
Their financial ability
Volume of business
Special needs
Location
Possibilities for growth
Preapproach
Preapproach is the stage in which the salesperson learns
as much as possible about the organization (what it needs,
who is involved in the buying) and its buyers (their
characteristics and buying styles).
Call objectives may be qualifying the prospect, gathering
information, or making an immediate sale.
Other call objectives include deciding on the best
approach, the best timing, and a determination of the
overall sales strategy for the account.
Approach
During the approach step, the salesperson should know
how to meet and greet the buyer and get the relationship off
to a good start.
Presentation and Demonstration
During the presentation, the salesperson tells the “value
story” to the buyer, showing how the company’s offer
p. 494
Key Terms:
Preapproach,
Approach,
Presentation
PPT
16-27
p. 494
p. 495
PPT
16-28
solves the customer’s problems.
The customer-solution approach fits better with a
relationship marketing focus.
Before salespeople can present customer solutions, they
must develop solutions to present.
The qualities that buyers dislike most in salespeople
include being:
Pushy
Late
Deceitful
Unprepared or disorganized
Overly talkative
The qualities that buyers value most in salespeople include:
Good listening
Empathy
Honesty
Dependability
Thoroughness
Follow-through
Handling Objections
In handling objections, the salesperson should:
Use a positive approach
Seek out hidden objections
Ask the buyer to clarify any objections
Take objections as opportunities
Turn the objections into reasons for buying
Every salesperson needs training in the skills of handling
objections.
Closing
Salespeople can use one of several closing techniques:
Ask for the order
Review points of agreement
p. 494
Photo: Listening
p. 495
PPT
16-29
PPT
16-30
Offer to help write up the order
Ask whether the buyer wants this model or that one
Note that the buyer will lose out if the order is not
placed now
Follow-Up
Follow-up is necessary if the salesperson wants to ensure
customer satisfaction and repeat business.
p. 495
Key Terms:
Handling
objections, Closing,
Follow-up
Assignments, Resources
Use Discussion Question 16-4 here
Use Critical Thinking Exercise 16-7 here
Use Additional Project 3 here
Use Think-Pair-Share 3 and 4 here
Use Outside Examples 1 and 2 here
Troubleshooting Tip
The personal selling process will be a surprise to
many students, again because they typically think
of retail sales, if they’ve thought about sales at all.
The importance of all of these steps in the sales
process can be highlighted in the discussion of
business-to-business sales.
p. 495
PPT
16-31
Personal Selling and Managing Customer Relationships
Transaction orientation: The purpose is to help salespeople
close a specific sale with a customer.
Relationship orientation: The purpose is to serve the
customer over the long haul in a mutually profitable
relationship.
Today’s large customers favor suppliers who can sell and
deliver a coordinated set of products and services to many
locations, and who can work closely with customer teams
to improve products and processes.
p. 496
Photo: Value
Selling
Review Learning Objective 3: Discuss the personal
selling process, distinguishing between
transaction-oriented marketing and relationship marketing.
Assignments, Resources
Use Small Group Project 1 here
Use Individual Assignment 2 here
p. 496
PPT
16-32
p. 496
PPT
16-33
p. 476
PPT
16-34
p. 497
PPT
Explain how sales promotion campaigns are developed
and implemented.
SALES PROMOTION
Sales promotion consists of short-term incentives to
encourage the purchase or sale of a product or service now.
The Rapid Growth of Sales Promotion
Sales promotion tools are targeted toward final buyers
(consumer promotions), retailers and wholesalers (trade
promotions), business customers (business promotions),
and members of the sales force (sales force promotions).
Today, in the average consumer packaged-goods company,
sales promotion accounts for 60 percent of all marketing
expenditures.
Several factors have contributed to the rapid growth of
sales promotion:
1. Product managers face greater pressures to increase
their current sales.
2. The company faces more competition, and
competing brands are less differentiated.
3. Advertising efficiency has declined.
4. Consumers have become more deal oriented.
The growing use of sales promotion has resulted in
promotion clutter. Consumers are increasingly tuning out
promotions, weakening their ability to trigger immediate
purchase.
Sales Promotion Objectives
Sales promotion objectives vary widely.
Consumer promotions urge short-term customer
buying or to enhance customer brand involvement.
Learning Objective
4
p. 496
Key Term: Sales
promotion
p. 497
Ad: Orange Leaf
p. 498
Ad: REI
16-35 Trade promotions get retailers to carry new items
and more inventory, buy ahead, or promote the
company’s products and give them more shelf
space.
Business promotions are used to generate business
leads, stimulate purchases, reward customers, and
motivate salespeople.
Sales force are used to get more sales force support
for current or new products or get salespeople to
sign up new accounts.
Sales promotions should help to reinforce the product’s
position and build long-term customer relationships.
Assignments, Resources
Use Discussion Question 16-5 here
p. 498
p. 498
PPT
16-36
Major Sales Promotion Tools
Many tools can be used to accomplish sales promotion
objectives. Descriptions of the main consumer, trade, and
business promotion tools follow.
Consumer Promotions
Consumer promotions include a wide range of tools.
Samples are offers of a trial amount of a product.
Sampling is the most effective—but most expensive—way
to introduce a new product or to create new excitement for
an existing one.
Coupons are certificates that give buyers a savings when
they purchase specified products.
Most major consumer goods companies are issuing fewer
coupons and targeting them more carefully.
Rebates (or cash refunds) are like coupons except that the
price reduction occurs after the purchase rather than at the
retail outlet.
Price packs (also called cents-off deals) offer consumers
savings off the regular price of a product.
Premiums are goods offered either free or at low cost as an
p. 498
Key Term:
Consumer
promotions
p. 498
Photo: Ben &
Jerry’s
p. 499
PPT
16-37
PPT
16-38
p. 500
p. 500
PPT
16-39
incentive to buy a product.
Advertising specialties, also called promotional products,
are useful articles imprinted with an advertiser’s name,
logo, or message that are given as gifts to consumers.
Point-of-purchase (POP) promotions include displays and
demonstrations that take place at the point of sale.
Contests, sweepstakes, and games give consumers the
chance to win something.
A contest calls for consumers to submit an entry to
be judged.
A sweepstakes calls for consumers to submit their
names for a drawing.
A game presents consumers with something every
time they buy.
Event marketing (or event sponsorships) allows
companies to create their own brand marketing events or
serve as sole or participating sponsors of events created by
others.
Trade Promotions
Trade promotions persuade resellers to carry a brand, give
it shelf space, promote it in advertising, and push it to
consumers.
Manufacturers use several trade promotion tools:
A straight discount (also called a price-off,
off-invoice, or off-list)
An allowance (usually so much off per case)
Free goods
Push money
Free specialty advertising items
Business Promotions
Business promotions are used to generate business leads,
stimulate purchases, reward customers, and motivate
salespeople.
p. 500
Key Term: Event
marketing (event
sponsorships)
p. 500
Photo: Delta Faucet
p. 500
Key Term: Trade
Promotions
p. 501
Photo: Red Bull
p. 502
p. 502
PPT
16-40
PPT
16-41
p. 503
Conventions and trade shows: Firms selling to the industry
show their products at trade shows.
Vendors receive many benefits:
Opportunities to find new sales leads
Contact customers
Introduce new products
Meet new customers
Sell more to present customers
Educate customers with publications and audio-
visual materials
Reach many prospects not reached through their
sales forces
Sales contests: Contests for salespeople or dealers to
motivate them to increase their sales performance over a
given period.
Developing the Sales Promotion Program
Marketers must decide:
1. Size of the incentive
2. Conditions for participation
3. Promotion and distribution
4. Length of the promotion
5. Evaluation
Review Learning Objective 4: Explain how sales
promotion campaigns are developed and implemented.
Photo: Trade show
p. 502
Key Term: Business
promotions
Assignments, Resources
Use Discussion Questions 16-5 here
Use Critical Thinking Exercise 16-8 here
Use Real Marketing 16.2 here
Use Online, Mobile, and Social Media
Marketing here
Use Video Case here
Use Additional Projects 4 and 5 hereUse
Think-Pair-Share 5 here