Sales Promotion and
Personal Selling
chapter
16
Sales Promotion
1
Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase.
Sales Promotion
Consumer Sales Promotion
Trade
Sales Promotion
Sales Promotion
Targets
1
Uses of Sales Promotion
Immediate Purchases
Increase Trial
Boost consumer inventory
Encourage repurchase
Increase ad effectiveness
Encourage brand switching
Uses
of
Sales
Promotion
Encourage brand loyalty
1
Objectives of Sales Promotion
1
Type of Buyer
Loyal Customers
Competitor’s
Customers
Brand Switchers
Price Buyers
Desired Results
Reinforce behavior
Increase consumption
Change timing
Break loyalty
Persuade to switch
Persuade to buy your brand more often
Appeal with low prices
Supply added value
Sales Promotion Examples
Loyalty marketing
Bonus packs
Sampling
Sweepstakes, contests, premiums
Price-lowering promotion
Trade deals
Coupons, price-off packages, refunds
Trade deals
Tools for
Consumer Sales Promotion
Coupons and Rebates
Premiums
Loyalty Marketing Programs
Contests & Sweepstakes
Sampling
Point-of-Purchase Promotion
Popular Tools
for
Consumer Sales
Promotion
2
Tools for
Consumer Sales Promotion
2
Coupon
Rebate
Premium
A certificate that entitles
consumers to an immediate
price reduction.
A cash refund given for the purchase of a product during a specific product.
An extra item offered to the consumer, usually in exchange for some proof of purchase.
Loyalty
Marketing
Program
Frequent
Buyer
Program
A promotional program designed
to build long-term, mutually beneficial relationships between a company and key customers.
A loyalty program in which loyal consumers are rewarded for making multiple purchases.
250 Billion
2% used
Tools for
Consumer Sales Promotion
Contest
Sweepstakes
Promotions that require skill or ability to compete for prizes.
Promotions that depend on chance or luck, with free participation.
2
Sampling
A promotional program that allow the consumer the opportunity to try a product or service for free.
Tools for
Consumer Sales Promotion
Goals of
Point-of-Purchase
Displays
Build traffic
Advertise the product
Induce impulse buying
2
70% of purchasing decisions are made in the store
Tools for Trade Sales Promotion
Trade Allowances
Push Money
Training
Free Merchandise
Store Demonstration
Conventions & Trade Shows
Unique Tools
for
Trade Sales
Promotion
3
Trade Allowance
3
A price reduction offered
by manufacturers to intermediaries, such as wholesalers and retailers.
Tools for Trade Sales Promotion
Trade Allowances
Push Money
Training
Free Merchandise
Store Demonstration
Conventions & Trade Shows
Unique Tools
for
Trade Sales
Promotion
3
Push Money
3
Money offered to channel intermediaries to encourage them to “push” products--that is, to encourage other members of the channel to sell the products.
Tools for Trade Sales Promotion
Trade Allowances
Push Money
Training
Free Merchandise
Store Demonstration
Conventions & Trade Shows
Unique Tools
for
Trade Sales
Promotion
3
Advantages of Personal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
30% of Fortune 1000 CEOs came up from sales ranks
4
Personal Selling
Customers are
concentrated
Product is technically complex
Product is custom made
Personal Selling is more important if...
There are many customers
Product has a low value
Advertising & Sales Promotion are more important if...
4
Product has a low value
Product is custom made
Product is technically complex
There are many customers
Customers are
concentrated
Personal Selling
Customers are
concentrated
There are few customers
Product is technically complex
Product is custom made
Product has a high value
Personal Selling is more important if...
Customers are
geographically dispersed
There are many customers
Product is simple to understand
Product is standardized
Product has a low value
Advertising & Sales Promotion are more important if...
4
Relationship Selling
Focus:
Building
Mutual
Trust
Long-Term
Value-Added
Benefits to
Buyer
5
Relationship Selling
vs. Traditional Selling
Sell advice, assistance, counsel
Sell products
Traditional
Personal Selling
Relationship Selling
Focus on closing sales
Limited sales planning
Discuss product
Assess “Product-specific”
needs
“Lone wolf” approach
Pricing/product focus
Short-term sales follow-up
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
5
Video
6
Relationship Selling
vs. Traditional Selling
Sell advice, assistance, counsel
Sell products
Traditional
Personal Selling
Relationship Selling
Focus on closing sales
Limited sales planning
Discuss product
Assess “Product-specific”
needs
“Lone wolf” approach
Pricing/product focus
Short-term sales follow-up
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
5
Steps in the Selling Process
6
Generate Leads
Qualify Leads
Probe Customer Needs
Develop Solutions
Handle Objections
Close the Sale
Follow Up
Basic Steps
in the
Personal Selling
Process
Generating Leads
Cold Calling
Advertising
Publicity
Direct Mail/
Telemarketing
Trade Shows/
Conventions
Web Sites/
Internet
Referrals
Networking
Company Records
Sources of Sales Leads
6
Steps in the Selling Process
6
Generate Leads
Qualify Leads
Probe Customer Needs
Develop Solutions
Handle Objections
Close the Sale
Follow Up
Basic Steps
in the
Personal Selling
Process
Qualifying Leads
Recognized Need
Buying Power
Receptivity &
Accessibility
Characteristics of
Qualified Leads
6
Steps in the Selling Process
6
Generate Leads
Qualify Leads
Probe Customer Needs
Develop Solutions
Handle Objections
Close the Sale
Follow Up
Basic Steps
in the
Personal Selling
Process
Probing Needs
Product or service
Salesperson
must know
everything
about...
Customers and their needs
Competition
Industry
6
Needs Assessment
A determination of the customer’s specific needs and wants and the range of options a customer has for satisfying them.
6
Steps in the Selling Process
6
Generate Leads
Qualify Leads
Probe Customer Needs
Develop Solutions
Handle Objections
Close the Sale
Follow Up
Basic Steps
in the
Personal Selling
Process
Developing and
Proposing Solutions
6
Sales Proposal
Sales Presentation
Steps in the Selling Process
6
Generate Leads
Qualify Leads
Probe Customer Needs
Develop Solutions
Handle Objections
Close the Sale
Follow Up
Basic Steps
in the
Personal Selling
Process
Handling Objections
6
Handling
Objections
Use the objection to close the sale
Anticipate specific objections
View objections as
requests for information
Steps in the Selling Process
6
Generate Leads
Qualify Leads
Probe Customer Needs
Develop Solutions
Handle Objections
Close the Sale
Follow Up
Basic Steps
in the
Personal Selling
Process
Closing the Sale
6
Closing the Sale
Negotiate
Keep an open mind
Look for customer signals
Steps in the Selling Process
6
Generate Leads
Qualify Leads
Probe Customer Needs
Develop Solutions
Handle Objections
Close the Sale
Follow Up
Basic Steps
in the
Personal Selling
Process
Following Up
6
Responsibilities
in
Following Up
Employees are trained
Goods or service perform
as promised
Ensure delivery schedules are met
Sales Management Responsibilities
Evaluate sales force
Compensate and motivate
sales force
Recruit and train
sales force
Determine sales
force structure
Define sales goals and
sales process
Tasks of
Sales Management
7
Defining Sales Goals
7
Clear
Sales Goals
Should Be...
Precise
Measurable
Time Specific
Quota
A statement of the individual salesperson’s sales objectives, usually based on sales volume alone but sometimes including key accounts.
7
Sales Management Responsibilities
Evaluate sales force
Compensate and motivate
sales force
Recruit and train
sales force
Determine sales
force structure
Define sales goals and
sales process
Tasks of
Sales Management
7
Sales Force Structure
7
Common
Sales
Organization
Structures
Individual client or account
Market or Industry
Marketing Function
Product Line
Geographic Region
Sales Management Responsibilities
Evaluate sales force
Compensate and motivate
sales force
Recruit and train
sales force
Determine sales
force structure
Define sales goals and
sales process
Tasks of
Sales Management
7
Training the Sales Force
7
Training includes...
Nonselling duties
Industry and customer
characteristics
Product knowledge
Selling techniques
Company policies and practice
Sales Management Responsibilities
Evaluate sales force
Compensate and motivate
sales force
Recruit and train
sales force
Determine sales
force structure
Define sales goals and
sales process
Tasks of
Sales Management
7
Compensation Plans
7
Commission
Combination
Plans
Salary
Basic
Compensation
Methods
Sales Management Responsibilities
Evaluate sales force
Compensate and motivate
sales force
Recruit and train
sales force
Determine sales
force structure
Define sales goals and
sales process
Tasks of
Sales Management
7
Evaluating the Sales Force
Performance
Measures
Contribution to Profit
Calls per Order
Sales or Profits per Call
Call Percentage Achieving Goals
Sales Volume
7
The Impact of Technology
on Personal Selling
7
Laptop computer link
Mobile telephones
Pagers
Personal data assistants
E-Mail
Internet
Sales Force
Automation
