Sales Promotions & Personal Selling
Sales Promotion <ul><li>Sales promotion is the use of  short-term  incentives aimed at influencing consumer perception and...
Purpose of  <ul><li>Sellers use sales promotions to : </li></ul><ul><ul><li>encourage new ‘customers’ to try the product <...
Sales Promotion Tools <ul><li>The main tools are: </li></ul><ul><ul><li>Samples </li></ul></ul><ul><ul><li>Redeemable coup...
Cont’d <ul><li>Trade Promotion Tools </li></ul><ul><ul><li>Incentives applied to the retail trade to stock and promote mor...
Developing Sales Promotion Programs <ul><li>Several decisions must be made in order to define the full sales promotion pro...
<ul><li>There are many types of personal selling jobs, and the role of personal selling can vary greatly from industry to ...
Cont’d <ul><li>Personal selling :   </li></ul><ul><li>Can provide a detailed explanation or demonstration of a product and...
The Role of the Salesforce <ul><li>Personal selling is the interpersonal element of the  promotion mix.  </li></ul><ul><li...
Cont’d <ul><li>Sales people:  </li></ul><ul><li>Serve as a critical link between a company and its customers </li></ul><ul...
Managing the Salesforce <ul><li>Salesforce Management </li></ul><ul><ul><li>The analysis; planning; implementation; and co...
Recruiting and Selecting Sales People <ul><li>First and foremost in a successful selling operation is the selection of goo...
<ul><li>Today, the average training period for a salesperson can be as short as four months. </li></ul><ul><li>Training pr...
Compensating Salespeople <ul><li>To attract the required salespeople, a company must have an attractive compensation plan....
Supervising and Motivating Salespeople <ul><li>New salespeople need supervision to help them ‘work smart’ and use their ti...
How Salespeople might spend their time
Evaluating Salespeople and Performance <ul><li>Performance  information  about  salespeople can  be  gathered  from  vario...
The Personal Selling Process <ul><li>Steps in the Selling Process: </li></ul><ul><ul><li>Prospecting </li></ul></ul><ul><u...
Relationship Marketing <ul><li>This is the process of creating, maintaining and enhancing strong, mutually beneficial rela...
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Bus169 Kotler Chapter 13

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Bus169 Kotler Chapter 13

  1. 1. Sales Promotions & Personal Selling
  2. 2. Sales Promotion <ul><li>Sales promotion is the use of short-term incentives aimed at influencing consumer perception and behaviour to encourage early purchase of a product, and build market share through increased sales. </li></ul><ul><ul><li>Sales promotion is a term that is closely linked with direct and digital marketing, but has its origins in FMCG. </li></ul></ul><ul><ul><li>Although sales promotion may mean different things in different organisations, it is generally agreed that they are value-adding tools aimed at encouraging early purchase . </li></ul></ul><ul><ul><li>Sales promotions cover a range of incentives that are used with products promoted via either mass media advertising, or by direct and digital methods. </li></ul></ul>0
  3. 3. Purpose of <ul><li>Sellers use sales promotions to : </li></ul><ul><ul><li>encourage new ‘customers’ to try the product </li></ul></ul><ul><ul><li>take consumers away from competitors’ products </li></ul></ul><ul><ul><li>reward brand-loyal customers and retain them </li></ul></ul><ul><ul><li>reduce the time lapse between customer purchases </li></ul></ul><ul><ul><li>turn light users into medium or heavy users </li></ul></ul><ul><li>Aim might also be to regain past purchasers who have stopped buying, or to discourage current users from buying a competitor’s product. </li></ul><ul><li>Potential new users fall into one of 3 groups:  </li></ul><ul><ul><li>non-users; loyal users of another brand; brand switchers. </li></ul></ul>0
  4. 4. Sales Promotion Tools <ul><li>The main tools are: </li></ul><ul><ul><li>Samples </li></ul></ul><ul><ul><li>Redeemable coupons </li></ul></ul><ul><ul><li>Cash-back offers </li></ul></ul><ul><ul><li>Cents-off deals/ price packs </li></ul></ul><ul><ul><li>Premium offers </li></ul></ul><ul><ul><li>Advertising specialties </li></ul></ul><ul><ul><li>Patronage rewards </li></ul></ul><ul><ul><li>Point-of-purchase promotions </li></ul></ul><ul><ul><li>Contests and games of chance/ skill </li></ul></ul>0
  5. 5. Cont’d <ul><li>Trade Promotion Tools </li></ul><ul><ul><li>Incentives applied to the retail trade to stock and promote more of a product or to provide increased merchandising space, usually during a consumer promotion. </li></ul></ul><ul><li>Business-to-Business Promotion Tools </li></ul><ul><ul><li>Industrial marketers adapt many of the tools to suit their own situations, including the use of conventions; trade shows; sales contests. </li></ul></ul>
  6. 6. Developing Sales Promotion Programs <ul><li>Several decisions must be made in order to define the full sales promotion program: </li></ul><ul><ul><li>The size of the incentive to be offered. </li></ul></ul><ul><ul><li>How to promote and distribute the program. </li></ul></ul><ul><ul><li>The duration of the promotion. </li></ul></ul><ul><ul><li>How to evaluate the benefits achieved. </li></ul></ul>
  7. 7. <ul><li>There are many types of personal selling jobs, and the role of personal selling can vary greatly from industry to industry; and from company to company. </li></ul><ul><li>The people who do the selling go by many names: </li></ul><ul><ul><li>Salespeople </li></ul></ul><ul><ul><li>Sales representatives </li></ul></ul><ul><ul><li>Marketing representatives </li></ul></ul><ul><ul><li>Account executives/representatives </li></ul></ul><ul><ul><li>Sales consultants </li></ul></ul><ul><ul><li>Agents </li></ul></ul><ul><ul><li>District mangers </li></ul></ul>Personal Selling
  8. 8. Cont’d <ul><li>Personal selling : </li></ul><ul><li>Can provide a detailed explanation or demonstration of a product and its benefits </li></ul><ul><li>Enables the marketing message to be modified to suit each specific selling situation </li></ul><ul><li>Is of most benefit when: </li></ul><ul><ul><li>Fewer prospects are involved (e.g. B2B) </li></ul></ul><ul><ul><li>Marketing a higher value product </li></ul></ul><ul><ul><li>The product is ‘highly technical’ </li></ul></ul>
  9. 9. The Role of the Salesforce <ul><li>Personal selling is the interpersonal element of the promotion mix. </li></ul><ul><li>Advertising consists of one-way, non-personal communication with target consumer groups. </li></ul><ul><li>Personal selling involves two-way, personal communication between salespeople and individual customers, which can be: </li></ul><ul><ul><li>face-to-face </li></ul></ul><ul><ul><li>by telephone </li></ul></ul><ul><ul><li>through video conference </li></ul></ul><ul><ul><li>or by other means </li></ul></ul><ul><ul><li>In complex selling situations, personal selling can be more effective than non-personal’ advertising . </li></ul></ul>
  10. 10. Cont’d <ul><li>Sales people: </li></ul><ul><li>Serve as a critical link between a company and its customers </li></ul><ul><li>Represent the company to the customers </li></ul><ul><li>Represent the customers to the company </li></ul><ul><li>Are concerned with producing sales, but should also be concerned with delivering customer satisfaction while achieving profit </li></ul>
  11. 11. Managing the Salesforce <ul><li>Salesforce Management </li></ul><ul><ul><li>The analysis; planning; implementation; and control of the salesforce activities. </li></ul></ul><ul><ul><li>This includes: </li></ul></ul><ul><ul><ul><li>Setting objectives, and designing strategy </li></ul></ul></ul><ul><ul><ul><li>Recruiting; selecting; training; compensating; supervising; and evaluating the firm’s salesforce. </li></ul></ul></ul>
  12. 12. Recruiting and Selecting Sales People <ul><li>First and foremost in a successful selling operation is the selection of good salespeople. </li></ul><ul><li>Successful salespeople can come in all shapes and sizes, but the best share four key talents. They are: </li></ul><ul><ul><li>Naturally motivated </li></ul></ul><ul><ul><li>Disciplined in their approach to work </li></ul></ul><ul><ul><li>Skilled in ‘closing’ a sale </li></ul></ul><ul><ul><li>Able to build relationships with customers </li></ul></ul><ul><li>Generally the top performers are empathetic; patient; caring; responsive; good listeners; and honest. </li></ul>
  13. 13. <ul><li>Today, the average training period for a salesperson can be as short as four months. </li></ul><ul><li>Training programs have several goals. </li></ul><ul><li>Sales people need to: </li></ul><ul><ul><li>know and identify with the company. </li></ul></ul><ul><ul><li>be familiar with the company’s products. </li></ul></ul><ul><ul><li>know customers’ and competitors’ characteristics. </li></ul></ul><ul><ul><li>know how to make effective presentations, and be trained in the principles of selling. </li></ul></ul><ul><ul><li>understand field procedures and responsibilities. </li></ul></ul>Training Salespeople
  14. 14. Compensating Salespeople <ul><li>To attract the required salespeople, a company must have an attractive compensation plan. </li></ul><ul><li>The level of compensation must be close to the ‘going rate’ for the type of job and skills required. </li></ul><ul><li>Compensation can be made up of several elements </li></ul><ul><ul><li>a fixed amount; a variable amount based on performance; an expense allowance; fringe benefits . </li></ul></ul><ul><li>Management must decide what mix of these elements makes the most sense for each sales job. </li></ul>
  15. 15. Supervising and Motivating Salespeople <ul><li>New salespeople need supervision to help them ‘work smart’ and use their time efficiently. </li></ul><ul><li>Management can boost morale and performance through achievable sales quotas, and incentives </li></ul><ul><li>The appropriate motivation helps salespeople to work energetically towards agreed sales targets. </li></ul>
  16. 16. How Salespeople might spend their time
  17. 17. Evaluating Salespeople and Performance <ul><li>Performance information about salespeople can be gathered from various sources: </li></ul><ul><ul><li>Sales reports </li></ul></ul><ul><ul><li>Call reports </li></ul></ul><ul><ul><li>Expense reports </li></ul></ul><ul><ul><li>Personal observation </li></ul></ul><ul><ul><li>Customers’ letters/ complaints </li></ul></ul><ul><ul><li>Customer surveys </li></ul></ul><ul><ul><li>Other salespeople </li></ul></ul>
  18. 18. The Personal Selling Process <ul><li>Steps in the Selling Process: </li></ul><ul><ul><li>Prospecting </li></ul></ul><ul><ul><li>Pre-approach </li></ul></ul><ul><ul><li>Approach </li></ul></ul><ul><ul><li>Presentation and demonstration </li></ul></ul><ul><ul><li>Handling objections </li></ul></ul><ul><ul><li>Closing </li></ul></ul><ul><ul><li>Follow-up with customer </li></ul></ul>
  19. 19. Relationship Marketing <ul><li>This is the process of creating, maintaining and enhancing strong, mutually beneficial relationships with customers and other stakeholders . </li></ul><ul><li>RM places an emphasis on building and maintaining profitable long-term relationships with customers by delivering superior customer value and satisfaction . </li></ul><ul><li>Many companies are realising that winning and retaining customers requires more than making good products and closing lots of sales . </li></ul><ul><li>It requires a carefully coordinated, total company effort to create value-laden, satisfying customer relationships. </li></ul>
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