Sales promotion and personal selling

Module III
Sales Promotion
Prepared By
Jitendra Patel
Assistant Professor
Prestige Institute of Management
and Research, Indore

Content
1. Definition of Sales Promotion
2. Purpose of Sales Promotion
3. Sales Promotion Techniques
4. Personal selling
5. definition and features of Personal Selling.
6. Objective of personal selling
7. Process of Personal Selling
8. Features of salesmanship
9. AIDAS Formula
10.Qualities of good Salesman
2/28/2020 2Jitendra Patel, Assistant Professor, PIMR

Sales Promotion
• Sales promotion is any type of promotional
incentive used to encourage immediate sales.
• Sales promotions are the set of marketing
activities undertaken to boost sales of the
product or service.
• Those promotional activities (other than
advertising, personal selling, public relations and
publicity) that are intended to stimulate customer
demand and improve the marketing performance
of sellers

Sales Promotion
• Sales promotion is generally defined as those
marketing activities that provide extra values
or incentives to the sales force, the
distributors, or the ultimate consumer and can
stimulate immediate sales.

Purpose of Sales Promotion
(Objectives)
• To introduce new products or services
• To attract new customers
• To induce existing customers to buy more
• Helps the firm to remain competitive
• To increase sales in off-seasons
• To add to the stock of the dealers

Best Indian Sales Promotions
• CELLO: This Indian company that makes insulated products for daily use
like lunch boxes and water bottles did a very unique sales promotion
campaign. The campaign requested the customers to register with the
company. All the registered participants were told that they might be
receiving a call from the marketing department of CELLO.
• The catch was that when the representative from the Cello company calls
the customers has to say CELLO instead of HELLO. This led to rousingly
funny situations where many people in Hyderabad were lifting their phone
and saying CELLO instead of HELLO much to the bemusement of the
regular callers. But the point was well made by CELLO and it gave all the
registered customers a discount. A definite win-win and an example of
what can happen if people think with clarity of purpose.

Point Detergent Powder:
• An Indian company that sadly no longer exists. Point
was very famous with all youngsters in the seventies.
Point detergent powder package carried board games,
puzzles and other things (pictures of birds and animals)
that kids loved to cut and keep.
• One cut out that I kept for a long time was the cut out
of the cricket pitch with all the positions marked. Point
gave us 11 small fielders to place and change according
to their field positions. In the era of radio commentary
it was a brilliant tool of making the listeners
understand and enjoy the game of cricket.

Cadbury’s Gems cricket game
• Cadbury’s Gems cricket game: In a country like
India that is mad about cricket it is but natural
that the next sales promotion tool also gets
linked with the game of cricket. Cadbury’s gems
came out with an idea of supplying the customer
with a pop up bottle full of gems. The bottle can
be used to play very innovative gamed of Indoor
cricket. For cricket mad Indians who can play
cricket even with a printed book (it is very
essential that the book should have page
numbers!) the ploy was a huge success.

Kinetic Honda
• Indians did not take very kindly to the concept of Auto start, gear
less scooters. In their view the only macho scooter was the Bajaj
Chetek. It was heavy, unwieldy, noisy, had to be kick started and
above all had GEARS. Most people dismissed the Kinetic Honda as
sissy scooter. They claimed that it was made of plastic and that it
would disintegrate into pieces if it was driven for long distances.
• To prove them wrong Kinetic Honda was put to the acid test by the
Kinetic motors. They made the Kinetic Honda to go around in circles
in a Pune Stadium for 24 hours without a break. The drivers used to
change every two hours and while the drivers were changing the
engine was kept on. Even the petrol was filled when the engine was
running. Kinetic Honda proved all its detractors wrong by running
without a hitch for 24 hours thus proving that it was a light weight,
modern and technologically advanced scooter.

Sales Promotion Tools
• The two types of sales promotion tools
consumer are as follows:
• A. Consumer-oriented Promotion Tools
• B. Trade-oriented Sales Promotion.

Consumer-oriented Promotion Tools
• 1. Free samples
• 2. Coupons
• 3. Exchange scheme
• 4. Discounts
• 5. Premium offers
• 6. Personality promotions
• 7. Installment sales

Personality promotions

Trade-oriented Sales Promotion:
• 1. Cash bonuses:
• 2. Stock return:
• 3. Credit terms:
• 4. Dealer conferences:
• 5. Dealer trophies:
• 6. Push incentives:

• 1. Cash bonuses:
It can be in the form of one extra case for every five
cases ordered, cash discounts or straight cash
payments to encourage volume sales, product display,
or in support of a price reduction to customers.
• 2. Stock return:
Some firms take back partly or wholly the unsold stocks
lying with the retailers, and distribute it to other
dealers, where there is a demand for such stocks.
• 3. Credit terms:
Special credit terms may provide to encourage bulk
orders from retailers or dealers.

• 4. Dealer conferences:
A firm may organize dealer conferences. The dealers
may be given information of the company’s
performance, future plans, and so on. The dealers can
also provide valuable suggestions to the company at
such conferences.
• 5. Dealer trophies:
Some firms may institute a special trophy to the
highest-performing dealer in a particular period of
time. Along with the trophy, the dealer may get a
special gift such as a sponsored tour within or outside
the country.

• 6. Push incentives:
It is a special incentive given to the dealer in
the form of cash or in kind to push and
promote the sale of a product, especially a
newly launched product.

Best Marketing &
Campaigns (And What Made Them Successful)
• 1) Nike: Just Do It.
• Did you know that, once upon a time, Nike's product
catered almost exclusively to marathon runners?
Then, a fitness craze emerged -- and the folks in Nike's
marketing department knew they needed to take
advantage of it to surpass their main competitor,
Reebok. (At the time, Reebok was selling more shoes
than Nike). And so, in the late 1980s, Nike created the
"Just Do It." campaign.
• In 1988, Nike sales were at $800 million; by 1998,
sales exceeded $9.2 billion. "

Volkswagen: Think Small

Volkswagen: Think Small
• Many marketing and advertising professionals like to call Volkswagen's
"Think Small" campaign the gold standard. Created in 1960 by a legendary
advertising group at Doyle Dane & Bernbach (DDB), the campaign set out
to answer one question: How do you change peoples' perceptions not only
about a product, but also about an entire group of people?
• See, Americans always had a propensity to buy big American cars --
and even 15 years after WWII ended, most Americans were still not buying
small German cars. So what did this Volkswagen advertisement do? It
played right into the audience’s expectations. You think I’m small? Yeah, I
am. They never tried to be something they were not.
• That's the most important takeaway from this campaign: Don’t try to sell
your company, product, or service as something it’s not. Consumers
recognize and appreciate honesty.

Rajasthan Tourism — “Jaane kya
dikh jaaye”
• campaign strikes the right chord with a potential
tourist to discover new experiences in a state which
has a lot to offer. The campaign urges to discover
Rajasthan and see it through your eyes to find
something new and absolutely interesting. See it for
yourself rather than us pointing out what is so great
about it. It does this by telling stories of different
protagonists, some turn out to be funny while others
purely magical. The camel, sand animated logo, folk
music in the background are all elements that make
the state of Rajasthan which are integrated well in the
creative to develop an obvious category and product
association.

Paytm—Paytm Karo
• Coming to the most talked about brand of 2016, Paytm.
• Paytm when they came out with their TV campaign —
Paytm Karo
• Moreover, if you go back and see the brands that have
become verbs or have replaced themselves with services
they offer, then you will realize that it happened as a
natural phenomenon and not because of any sort of push
marketing.
• “Facebooking”
“Google it”
“Xerox it”
“Call an Uber”

Personal Selling
• Personal selling is where businesses use people (the
"sales force") to sell the product after meeting face-to-
face with the customer. The sellers promote the
product through their attitude, appearance and
specialist product knowledge
• In the language of sales and marketing, "personal
selling" singles out those situations in which a real
human being is trying to sell something to another
face-to-face.
• Personal selling refers to the presentation of goods and
services before the customers and convincing or
persuading them to buy the products or services.

Features Of Personal Selling
• Personal Form
• Development of Relationship
• Conversation
• Quick solution of Queries
• Receipt of Additional Information
• Real Sale

Objectives of Personal Selling
• i. Face-to-Face interaction: Personal selling
involves a salesmen having face-to-face
interaction with the prospective buyers.
• ii. Persuasion: Personal selling requires
persuasion on the part of the seller to the
prospective customers to buy the product. So a
salesman must have the ability to convince the
customers so that an interest may be created in
the mind of the customers to use that product.

• iii. Flexibility: The approach of personal selling is
always flexible. Sometimes salesman may explain
the features and benefits of the product,
sometimes give demonstration of the use of
product and also faces number of queries from
the customers. Looking into the situation and
interest of the customers, the approach of the
salesman is decided instantly.
• iv. Promotion of sales: The ultimate objective of
personal selling is to promote sales by convincing
more and more customers to use the product.

• v. Supply of Information: Personal selling
provides various information to the customers
regarding availability of the product, special
features, uses and utility of the products. So it
is an educative process.
• vi. Mutual Benefit: It is a two-way process.
Both seller and buyer derive benefit from it.
While customers feel satisfied with the goods,
the seller enjoys the profits.

The Personal Selling Process
PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS
APPROACHING THE PROSPECT
FOLLOWING UP
CLOSING THE SALE
HANDLING OBJECTIONS
MAKING THE SALES PRESENTATION
Pre approach: QUALIFYING PROSPECTS

Pre-approach (Qualifying)
Finding and analyzing
information about prospects
Evaluating a prospect’s
potential
Prospecting: Identifying
likely new customers
•Leads
•Developing lists of Potential
customers

Approaching The Prospect
HOW DO WE MAKE THE
INITIAL CONTACT & BUILD
RAPPORT
There is only one time
to make a first
impression

Making The Sales Presentation
 Using Persuasive communication
 Hold Attention
 Stimulate Interest
 Desire
 “Tell the product’s story”

Handling Objections
 Questions
 Reservations
 Understand Concern
 Counter arguments
 Acknowledge concern
 Clues to process

Closing the Sale
 Closing signals
 Trial close
 Asking the prospect to buy
Following Up
 Commitments met
 Shipment
 Performance
 Reinforce relationship
 Satisfied customers rebuy & recommend2/28/2020 32Jitendra Patel, Assistant Professor, PIMR

Salesmanship Features
1. Mutual benefit
2. Salesmanship is a persuasion
3. Creation of permanent customers
4. An educative process
5. Winning of buyer confidence
6. Link between the buyer and the seller
7. A creative process
8. Aiming to serve producers, distributors and
customers
9. Discourages unnecessary arguments
10. Customers are always right

A.I.D.A. Formula

Describing the A.I.D.A. Formula
• A - Attention (Awareness): attract the attention of the
customer.
• I - Interest: raise customer interest by focusing on and
demonstrating advantages and benefits (instead of focusing
on features, as in traditional advertising).
• D - Desire: convince customers that they want and desire
the product or service and that it will satisfy their needs.
• A - Action: lead customers towards taking action and/or
purchasing.

AIDAS

AIDA Example
• A1 = Attention
The large image of Lionel Messi draws the potential customers initial
attention to the advert.
• I = Interest
The text “Every team needs the spark” raises the potential customer
interest in the advert as they want to know how they can bring this
“Spark” to their team.
• D = Desire
The text “F50, time your feet light up the game” below the image of the
F50 shoe increases the potential customers desire for the shoes as they
believe that it will make them a better footballer.
• A2 = Action
The action is that the potential customer will visit the website and find
out more information and/or purchase the shoes.

Qualities of a Good Salesman
• Empathy: Empathy is the ability to identify
with customers, to feel what they are feeling
and make customers feel respected.
• Focus: A person with focus is internally driven
to accomplish goals and can stay attentive to
one topic. Focused individuals are more
demanding of themselves than other people
and they are self-motivated.

• Responsibility: A person with a strong sense of
responsibility does not place blame on other
people when placed in a difficult situation. This
type of person, referred to as an “agent”, gets
things done and when obstacles arise, accepts
any errors or omissions that have occurred
• Optimism: A salesperson with a healthy amount
of optimism can be described as someone who is
slow to learn helplessness.

• Ego-drive: Ego-drive is similar to optimism in
that both traits require persistence. But ego-
drive is persistence for the purpose of
succeeding and above all winning. It’s all
about competitiveness.

Reference
1. Belch: Advertising and Promotion: An Integrated Marketing
Communications Perspective .8th Edition, The McGraw−Hill
Companies, 2011
2. O’Guinn,Allen,Semenik,4E,Advertising & Integrated Brand
Promotion, Thomson, India Edition, New Delhi,2007.
3. Philip Kotler, Kelvin Lane, Keller, Abraham Koshi, Mitihlesh Jha,
Principles of Marketing Management, South Asian Perspective,
Pearson Education, 14th Edition 2011.
4. Philip Kotlern and Gary Armstrong “Principles of
Marketing”, New Delhi, Prentice Hall of India, 15th
Edition, 2013.
5. Thomas O'Guinn , Chris Allen , Richard J. Semenik and Angeline
Close Scheinbaum Advertising and Integrated Brand Promotion
(with CourseMate with Ad Age Printed Access Card) 7th
Edition,Cengage learning, Stanford USA , 2014.

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