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Sales Promotion and Personal Selling Canadian Adaptation prepared by Don Hill, Langara College 15
Learning Objectives 1. Define and state the objectives of sales promotion 2. Discuss the most common forms of consumer sales promotion 3. List the most common forms of trade sales promotion
Learning Objectives (continued) 4. Describe personal selling 5. Discuss the key differences between relationship selling and traditional selling 6. List the steps in the selling process 7. Describe the functions of sales management
Learning Objective Define and state the objectives of sales promotion Online www.theaircanadacentre.com www.bluejays.mlb.com 1 1
Sales Promotion Online www.save.ca www.coupons.com Sales Promotion Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase. 1
Uses of Sales Promotion 1 Immediate purchases Increase trial Increase product usage Encourage repurchase Try a different brand Encourage brand loyalty
Learning Objective Discuss the most common forms of consumer sales promotion 2 2
Tools for Consumer Sales Promotion 2 Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion
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.
Tools for Consumer Sales Promotion 2 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.
Tools for Consumer Sales Promotion Online www.somewhereincanada.com 2 Click Contest Sweepstakes Promotions that require skill or ability to compete for prizes. Promotions that depend on chance or luck, with free participation.
Tools for Consumer Sales Promotion 2 Click Sampling A promotional program that allows the consumer the opportunity to try a product or service for free.
Methods of Sampling 2 Direct mail Door-to-door delivery Packaging with another product Retail store demonstration
Point-of-Purchase Promotion 2 Goals of Point-of-Purchase Displays Build traffic Advertise the product Induce impulse buying
Effective at obtaining sale and gaining customer satisfaction
Personal Selling 4 Customers are concentrated Product is technically complex There are few customers Product is custom made Product has a high value Personal Selling is more important if... Customers are geographically dispersed Product is simple to understand There are many customers Product is standardized Product has a low value Advertising & Sales Promotion are more important if...
Learning Objective Discuss the key differences between relationship selling and traditional selling 5 5
Relationship Selling Relationship Selling A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships. 5 Click
Relationship Selling versus Traditional Selling 5 Sell advice, assistance, counsel Sell products Traditional Personal 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 Relationship Selling
Key Differences between Traditional and Relationship Selling 5
Learning Objective List the steps in the selling process 6 6
Sales Process Sales Process The set of steps a salesperson goes through in a particular organization to sell a particular product or service. 6
Time Spent in Key Steps of Selling Process 6 Relationship Selling Traditional Selling Key Selling Steps High Low Follow-up Low High Close the sale Low High Handle Objections High Low Develop Solutions High Low Probe Needs High Low Qualify Leads Low High Generate Leads
Generating Leads Online www.infocanada.com 6 Advertising Publicity Direct Mail/ Telemarketing Cold Calling Internet Web Site Referrals Trade Shows/ Conventions Networking Company Records
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. 6
Characteristics of Qualified Leads 6 Online www.citidirectory.com www.dnb.ca Recognized need Buying power Receptivity and accessibility
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. 6
Probing Needs 6 Product or service Customers and their needs Competition Industry Salesperson must know everything about...
Developing and Proposing Solutions 6 Sales Proposal Sales Presentation
Powerful Presentations 6 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!
Handling Objections 6 Use the objection to close the sale Anticipate specific objections View objections as requests for information
Closing the Sale 6 Online www.cpsa.com Negotiate Keep an open mind Look for customer signals
Following Up 6 Employees are trained Goods or service perform as promised Ensure delivery schedules are met
Learning Objective Describe the functions of sales management 7 7
Sales Management Responsibilities 7 Supervise and evaluate sales force Compensate and motivate sales force Recruit and train sales force Determine sales force structure Define sales goals and sales process
Defining Sales Goals 7 Clear Precise Measurable Time Specific Sales Goals Should Be...
Quota Quota A statement of the individual salesperson’s sales objectives, usually based on sales volume alone but sometimes including key accounts, new accounts, repeat sales and specific products. 7
Sales Force Structure 7 Individual client or account Market or industry Marketing function Product line Geographic region
Training the Sales Force 7 Training includes... Nonselling duties Industry and customer characteristics Product knowledge Selling techniques Company policies and practice