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Purpose of Sales Promotion, Sales PromotionTechniques, Personal selling,
definition and features, Objective of personal selling, Features of
salesmanship, Essential of effective selling, AIDAS Formula, Qualities of
good Salesman.
 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 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.
 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
 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.
 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 keptfor 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: 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.
 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.
 The two types of sales promotion tools
consumer are as follows:
 A. Consumer-oriented PromotionTools
 B.Trade-oriented Sales Promotion.
 1. Free samples
 2. Coupons
 3. Exchange scheme
 4. Discounts
 5. Premium offers
 6. Personality promotions
 7. Installment sales
 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.
 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. "
 Many marketing and advertising professionals like to callVolkswagen'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 afterWWII ended, most Americans were still not
buying small German cars. So what did thisVolkswagen 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.
 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.
 Coming to the most talked about brand of 2016,
Paytm.
 Paytm when they came out with theirTV 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 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.
 Personal Form
 Development of Relationship
 Conversation
 Quick solution of Queries
 Receipt of Additional Information
 Real Sale
 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.
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
The Personal Selling Process
ApproachingThe Prospect
HOW DOWE MAKETHE
INITIAL CONTACT & BUILD
RAPPORT
There is only one time
to make a first
impression
The Personal Selling Process
MakingThe Sales Presentation
 Using Persuasive communication
 Hold Attention
 Stimulate Interest
 Desire
 “Tell the product’s story”
The Personal Selling Process
Handling Objections
 Questions
 Reservations
 Understand Concern
 Counterarguments
 Acknowledge concern
 Clues to process
The Personal Selling Process
Closing the Sale
 Closing signals
 Trial close
 Asking the prospect to buy
The Personal Selling Process
Following Up
 Commitments met
 Shipment
 Performance
 Reinforce L-R relationship
 Satisfied customers rebuy & recommend
 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 - 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.
 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.
 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.
END OF MODULE III

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Mm ii unit iii sales promotion

  • 1. Purpose of Sales Promotion, Sales PromotionTechniques, Personal selling, definition and features, Objective of personal selling, Features of salesmanship, Essential of effective selling, AIDAS Formula, Qualities of good Salesman.
  • 2.  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
  • 3.  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.
  • 4.  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
  • 5.  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.
  • 6.  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 keptfor 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.
  • 7.  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.
  • 8.  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.
  • 9.  The two types of sales promotion tools consumer are as follows:  A. Consumer-oriented PromotionTools  B.Trade-oriented Sales Promotion.
  • 10.  1. Free samples  2. Coupons  3. Exchange scheme  4. Discounts  5. Premium offers  6. Personality promotions  7. Installment sales
  • 11.
  • 12.  1. Cash bonuses:  2. Stock return:  3. Credit terms:  4. Dealer conferences:  5. Dealer trophies:  6. Push incentives:
  • 13.  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.
  • 14.  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.
  • 15.  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.
  • 16.  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. "
  • 17.
  • 18.  Many marketing and advertising professionals like to callVolkswagen'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 afterWWII ended, most Americans were still not buying small German cars. So what did thisVolkswagen 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.
  • 19.  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.
  • 20.  Coming to the most talked about brand of 2016, Paytm.  Paytm when they came out with theirTV 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”
  • 21.  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.
  • 22.  Personal Form  Development of Relationship  Conversation  Quick solution of Queries  Receipt of Additional Information  Real Sale
  • 23.  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.
  • 24.  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.
  • 25.  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.
  • 26. PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS APPROACHING THE PROSPECT FOLLOWING UP CLOSING THE SALE HANDLING OBJECTIONS MAKING THE SALES PRESENTATION Pre approach: QUALIFYING PROSPECTS
  • 27. 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 The Personal Selling Process
  • 28. ApproachingThe Prospect HOW DOWE MAKETHE INITIAL CONTACT & BUILD RAPPORT There is only one time to make a first impression The Personal Selling Process
  • 29. MakingThe Sales Presentation  Using Persuasive communication  Hold Attention  Stimulate Interest  Desire  “Tell the product’s story” The Personal Selling Process
  • 30. Handling Objections  Questions  Reservations  Understand Concern  Counterarguments  Acknowledge concern  Clues to process The Personal Selling Process
  • 31. Closing the Sale  Closing signals  Trial close  Asking the prospect to buy The Personal Selling Process Following Up  Commitments met  Shipment  Performance  Reinforce L-R relationship  Satisfied customers rebuy & recommend
  • 32.  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
  • 33.
  • 34.  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.
  • 35.
  • 36.
  • 37.  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.
  • 38.  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.
  • 39.  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.
  • 40.  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.