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- 1. Sales Promotion and Personal Selling 16 chapter Prepared by Deborah Baker Texas Christian University ©2002 South-Western Chapter 16 Version 1
- 2. Learning Objectives 1. Define and state the objectives of sales promotion. 16 2. Discuss the most common forms of consumer sales promotion. chapter 3. List the most common forms of trade sales promotion. ©2002 South-Western Chapter 16 Version 2
- 3. Learning Objectives (continued) 4. Describe personal selling. 5. Discuss the key differences between 16 relationship selling and traditional selling. 6. List the steps in the selling process. chapter 7. Describe the functions of sales management. ©2002 South-Western Chapter 16 Version 3
- 4. 1 Learning Objective Define and state the objectives of sales promotion. ©2002 South-Western Chapter 16 Version 4
- 5. 1 Sales Promotion Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase. ©2002 South-Western Chapter 16 Version 5
- 6. 1 Sales Promotion Sales Promotion Sales Promotion Targets Targets Consumer Consumer Trade Trade Sales Promotion Sales Promotion Sales Promotion Sales Promotion ©2002 South-Western Chapter 16 Version 6
- 7. 1 Uses of Sales Promotion Immediate Purchases Immediate Purchases Increase Trial Increase Trial Boost consumer inventory Boost consumer inventory Encourage repurchase Encourage repurchase Uses Uses Increase ad effectiveness Increase ad effectiveness of of Sales Sales Encourage brand switching Encourage brand switching Promotion Promotion Encourage brand loyalty Encourage brand loyalty ©2002 South-Western Chapter 16 Version 7
- 8. 1 Objectives of Sales Promotion Sales Promotion Sales Promotion Type of Buyer Type of Buyer Desired Results Desired Results Examples Examples ••Reinforce behavior Reinforce behavior • Loyalty marketing Loyal Customers Loyal Customers ••Increase consumption •Loyalty marketing Increase consumption ••Bonus packs ••Change timing Bonus packs Change timing ••Sampling Sampling Competitor’s Competitor’s ••Break loyalty Break loyalty ••Sweepstakes, Customers ••Persuade to switch Sweepstakes, Customers Persuade to switch contests, premiums contests, premiums • Price-lowering ••Persuade to buy your •Price-lowering Persuade to buy your promotion Brand Switchers Brand Switchers brand more often promotion brand more often ••Trade deals Trade deals ••Appeal with low Appeal with low ••Coupons, price-off Coupons, price-off Price Buyers Price Buyers prices prices packages, refunds packages, refunds ••Supply added value Supply added value ©2002 South-Western ••Trade deals Trade deals Chapter 16 Version 8
- 9. 2 Learning Objective Discuss the most common forms of consumer sales promotion. ©2002 South-Western Chapter 16 Version 9
- 10. Tools for 2 Consumer Sales Promotion Coupons and Rebates Coupons and Rebates Premiums Premiums Loyalty Marketing Programs Loyalty Marketing Programs Contests & Sweepstakes Contests & Sweepstakes Popular Tools Popular Tools for for Sampling Sampling Consumer Sales Consumer Sales Promotion Promotion Point-of-Purchase Promotion Point-of-Purchase Promotion ©2002 South-Western Chapter 16 Version 10
- 11. Tools for 2 Consumer Sales Promotion A certificate that entitles A certificate that entitles Coupon Coupon consumers to an immediate consumers to an immediate price reduction. price reduction. A cash refund given for the A cash refund given for the Rebate Rebate purchase of a product during purchase of a product during a specific product. a specific product. An extra item offered to the An extra item offered to the Premium Premium consumer, usually in exchange consumer, usually in exchange for some proof of purchase. for some proof of purchase. ©2002 South-Western Chapter 16 Version 11
- 12. Tools for 2 Consumer Sales Promotion Loyalty A promotional program designed A promotional program designed Loyalty to build long-term, mutually Marketing to build long-term, mutually Marketing beneficial relationships between beneficial relationships between Program Program a company and key customers. a company and key customers. Frequent Frequent A loyalty program in which loyal A loyalty program in which loyal Buyer Buyer consumers are rewarded for consumers are rewarded for Program Program making multiple purchases. making multiple purchases. ©2002 South-Western Chapter 16 Version 12
- 13. Tools for 2 Consumer Sales Promotion Promotions that require skill or Promotions that require skill or Contest Contest ability to compete for prizes. ability to compete for prizes. Promotions that depend on Promotions that depend on Sweepstakes Sweepstakes chance or luck, with chance or luck, with free participation. free participation. ©2002 South-Western Chapter 16 Version 13
- 14. Tools for 2 Consumer Sales Promotion A promotional program that allow A promotional program that allow Sampling Sampling the consumer the opportunity to try a the consumer the opportunity to try a product or service for free. product or service for free. ©2002 South-Western Chapter 16 Version 14
- 15. 2 Sampling Direct mail Direct mail Door-to-door Door-to-door Methods Methods delivery delivery of of Sampling Sampling Packaging with Packaging with another product another product Retail store Retail store demonstration demonstration ©2002 South-Western Chapter 16 Version 15
- 16. Tools for 2 Consumer Sales Promotion Build traffic Build traffic Advertise the product Advertise the product Goals of Goals of Point-of-Purchase Point-of-Purchase Induce impulse buying Induce impulse buying Displays Displays ©2002 South-Western Chapter 16 Version 16
- 17. Tools for 2 Consumer Sales Promotion Free merchandise Free merchandise Effective Effective Types of Types of Sweepstakes Sweepstakes On-Line On-Line Sales Sales Promotion Promotion Free shipping Free shipping Coupons Coupons ©2002 South-Western Chapter 16 Version 17
- 18. 3 Learning Objective List the most common forms of trade sales promotion. ©2002 South-Western Chapter 16 Version 18
- 19. 3 Tools for Trade Sales Promotion Trade Allowances Trade Allowances Push Money Push Money Training Training Free Merchandise Free Merchandise Unique Tools Unique Tools for for Store Demonstration Store Demonstration Trade Sales Trade Sales Promotion Promotion Conventions & Trade Shows Conventions & Trade Shows ©2002 South-Western Chapter 16 Version 19
- 20. 3 Trade Allowance A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers. ©2002 South-Western Chapter 16 Version 20
- 21. 3 Push Money Money offered to channel intermediaries to encourage them to “push” products-- that is, to encourage other members of the channel to sell the products. ©2002 South-Western Chapter 16 Version 21
- 22. The Role of 3 Trade Sales Promotion Gain new distributors Obtain support for consumer sales promotions Build or reduce dealer inventories Improve trade relations ©2002 South-Western Chapter 16 Version 22
- 23. 4 Learning Objective Describe personal selling. ©2002 South-Western Chapter 16 Version 23
- 24. 4 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 ©2002 South-Western Chapter 16 Version 24
- 25. 4 Personal Selling Personal Selling Advertising & Sales Promotion is more important if... are more important if... Product has a high value Product has a high value Product has a low value Product has a low value Product is custom made Product is custom made Product is standardized Product is standardized Product is Product is Product is Product is technically complex technically complex simple to understand simple to understand There are few customers There are few customers There are many customers There are many customers Customers are Customers are Customers are Customers are concentrated concentrated geographically dispersed geographically dispersed ©2002 South-Western Chapter 16 Version 25
- 26. 5 Learning Objective Discuss the key differences between relationship selling and traditional selling. ©2002 South-Western Chapter 16 Version 26
- 27. 5 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. ©2002 South-Western Chapter 16 Version 27
- 28. 5 Relationship Selling Focus: Long-Term Building Value-Added Mutual Benefits to Buyer Trust ©2002 South-Western Chapter 16 Version 28
- 29. Relationship Selling 5 vs. Traditional Selling Traditional Relationship Selling Personal Selling Sell products Sell advice, assistance, counsel Sell advice, assistance, counsel Focus on closing sales Focus on closing sales Focus on customer’s bottom line Focus on customer’s bottom line Limited sales planning Limited sales planning Sales planning is top priority Sales planning is top priority Discuss product Discuss product Build problem-solving environment Build problem-solving environment Assess “Product-specific” Assess “Product-specific” Conduct discovery in scope of Conduct discovery in scope of needs needs operations operations “Lone wolf” approach “Lone wolf” approach Team approach Team approach Profit impact and strategic Profit impact and strategic Pricing/product focus Pricing/product focus benefit focus benefit focus Chapter 16 Versionfollow-up©2002 South-Western sales follow-up Short-term sales follow-up Long-term sales follow-up Short-term sales Long-term 29
- 30. 6 Learning Objective List the steps in the selling process. ©2002 South-Western Chapter 16 Version 30
- 31. 6 Sales Process The set of steps a salesperson goes through in a particular organization to sell a particular product or service. ©2002 South-Western Chapter 16 Version 31
- 32. 6 Steps in the Selling Process Generate Leads Generate Leads Qualify Leads Qualify Leads Probe Customer Needs Probe Customer Needs Develop Solutions Develop Solutions Basic Steps Basic Steps Handle Objections Handle Objections in the in the Personal Selling Close the Sale Close the Sale Personal Selling Process Process Follow Up Follow Up ©2002 South-Western Chapter 16 Version 32
- 33. 6 Generating Leads Direct Mail/ Direct Mail/ Advertising Advertising Publicity Publicity Cold Calling Cold Calling Telemarketing Telemarketing Web Sites/ Web Sites/ Trade Shows/ Trade Shows/ Referrals Referrals Networking Networking Internet Internet Conventions Conventions Company Company Records Records Sources of Sources of Sales Leads Sales Leads ©2002 South-Western Chapter 16 Version 33
- 34. 6 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. ©2002 South-Western Chapter 16 Version 34
- 35. 6 Qualifying Leads Characteristics of Characteristics of Qualified Leads Qualified Leads Receptivity & Receptivity & Recognized Need Recognized Need Accessibility Accessibility Buying Power Buying Power ©2002 South-Western Chapter 16 Version 35
- 36. 6 Probing Needs Product or service Product or service Salesperson Salesperson Customers and their needs Customers and their needs must know must know everything everything about... about... Competition Competition Industry Industry ©2002 South-Western Chapter 16 Version 36
- 37. 6 Needs Assessment A determination of the customer’s specific needs and wants and the range of options a customer has for satisfying them. ©2002 South-Western Chapter 16 Version 37
- 38. Developing and 6 Proposing Solutions Sales Proposal Sales Proposal Sales Presentation Sales Presentation ©2002 South-Western Chapter 16 Version 38
- 39. 6 Handling Objections View objections as View objections as requests for information requests for information Handling Handling Anticipate Anticipate Objections Objections specific objections specific objections Use the objection Use the objection to close the sale to close the sale ©2002 South-Western Chapter 16 Version 39
- 40. 6 Closing the Sale Look for Look for customer signals customer signals Closing Closing the Sale the Sale Keep an open mind Keep an open mind Negotiate Negotiate ©2002 South-Western Chapter 16 Version 40
- 41. 6 Following Up Ensure delivery Ensure delivery schedules are met schedules are met Responsibilities Responsibilities in in Goods or service perform Goods or service perform Following Up Following Up as promised as promised Employees are trained Employees are trained ©2002 South-Western Chapter 16 Version 41
- 42. 7 Learning Objective Describe the functions of sales management. ©2002 South-Western Chapter 16 Version 42
- 43. Sales Management 7 Responsibilities Define sales goals and Define sales goals and sales process sales process Determine sales Determine sales force structure force structure Tasks of Tasks of Sales Management Recruit and train Recruit and train Sales Management sales force sales force Compensate and motivate Compensate and motivate sales force sales force Evaluate sales force Evaluate sales force ©2002 South-Western Chapter 16 Version 43
- 44. 7 Defining Sales Goals Clear Clear Precise Precise Sales Goals Sales Goals Should Be... Should Be... Measurable Measurable Time Specific Time Specific ©2002 South-Western Chapter 16 Version 44
- 45. 7 Quota A statement of the individual salesperson’s sales objectives, usually based on sales volume alone but sometimes including key accounts. ©2002 South-Western Chapter 16 Version 45
- 46. 7 Sales Force Structure Geographic Region Geographic Region Product Line Product Line Common Common Sales Sales Marketing Function Marketing Function Organization Organization Structures Structures Market or Industry Market or Industry Individual client Individual client or account or account ©2002 South-Western Chapter 16 Version 46
- 47. 7 Training the Sales Force Company policies Company policies and practice and practice Selling techniques Selling techniques Training Training includes... includes... Product knowledge Product knowledge Industry and customer Industry and customer characteristics characteristics Nonselling duties Nonselling duties ©2002 South-Western Chapter 16 Version 47
- 48. 7 Compensation Plans Basic Basic Compensation Compensation Methods Methods Commission Commission Salary Salary Combination Combination Plans Plans ©2002 South-Western Chapter 16 Version 48
- 49. 7 Compensation Plans Straight Straight The salesperson is paid some The salesperson is paid some Commission Commission percentage when a sale is made. percentage when a sale is made. Straight Straight The salesperson receives a salary The salesperson receives a salary Salary Salary regardless of sales productivity. regardless of sales productivity. ©2002 South-Western Chapter 16 Version 49
- 50. 7 Effective Sales Leaders Effective Sales Leaders... Effective Sales Leaders... Are assertive Are assertive Possess ego drive Possess ego drive Possess ego strength Possess ego strength Take risks Take risks Are innovative Are innovative Have a sense of urgency Have a sense of urgency Are empathetic Are empathetic ©2002 South-Western Chapter 16 Version 50
- 51. 7 Evaluating the Sales Force Sales Volume Sales Volume Contribution to Profit Contribution to Profit Calls per Order Calls per Order Sales or Profits per Call Sales or Profits per Call Performance Performance Measures Measures Call Percentage Achieving Goals Call Percentage Achieving Goals ©2002 South-Western Chapter 16 Version 51
- 52. The Impact of Technology 7 on Personal Selling Laptop computer link Laptop computer link Mobile telephones Mobile telephones Pagers Pagers Personal data assistants Personal data assistants Sales Force Sales Force Automation Automation E-Mail E-Mail Internet Internet ©2002 South-Western Chapter 16 Version 52