1 Lamb, Hair, McDaniel CHAPTER 18 Sales Promotion and Personal Selling.
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Transcript of 1 Lamb, Hair, McDaniel CHAPTER 18 Sales Promotion and Personal Selling.
1
Lamb, Hair, McDaniel
CHAPTER 18
Sales Promotion and Personal Selling
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Sales Promotion
Marketing
communication
activities, other than
advertising, personal
selling, and public
relations, in which a
short-term incentive
motivates a purchase.
SalesPromotion
SalesPromotion
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Objectives of Sales Promotion
Type of BuyerType of Buyer
Loyal Customers
Competitor’sCustomers
Brand Switchers
Price Buyers
Desired ResultsDesired Results
• Reinforce behavior• Increase consumption• Change purchase timing
• Break loyalty• Persuade to switch
• Persuade to buy your brand more often
• Appeal with low prices
• Supply added value
Sales PromotionSales PromotionExamples Examples
• Loyalty marketing• Bonus packs
• Sampling• Sweepstakes,
contests, premiums
• Price-lowering promotion
• Trade deals
• Coupons, price-offpackages, refunds
• Trade deals
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Tools for Consumer Sales Promotion
Coupons and RebatesCoupons and Rebates
PremiumsPremiums
Loyalty Marketing ProgramsLoyalty Marketing Programs
Contests & SweepstakesContests & Sweepstakes
SamplingSampling
Point-of-Purchase PromotionPoint-of-Purchase Promotion
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Tools for Consumer Sales Promotion
CouponCoupon
RebateRebate
PremiumPremium
A certificate that entitles consumers to an immediate
price reduction.
A certificate that entitles consumers to an immediate
price reduction.
A cash refund given for the purchase of a product during
a specific period.
A cash refund given for the purchase of a product during
a specific period.
An extra item offered to the consumer, usually in exchange
for some proof of purchase.
An extra item offered to the consumer, usually in exchange
for some proof of purchase.
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Tools for Consumer Sales Promotion
LoyaltyMarketingProgram
LoyaltyMarketingProgram
A promotional program designed to build long-term, mutually beneficial relationships between a company and key customers.
A promotional program designed to build long-term, mutually beneficial relationships between a company and key customers.
FrequentBuyer
Program
FrequentBuyer
Program
A loyalty program in which loyal consumers are rewarded for making multiple purchases.
A loyalty program in which loyal consumers are rewarded for making multiple purchases.
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Tools for Consumer Sales Promotion
ContestsContests Promotions that require skill or ability to compete for prizes.
Promotions that require skill or ability to compete for prizes.
SweepstakesSweepstakes Promotions that depend on chance or luck, with free participation.
Promotions that depend on chance or luck, with free participation.
Tools for Consumer Sales Promotion
SamplingSamplingA promotional program that allows the consumer the opportunity to try a product or service for free.
A promotional program that allows the consumer the opportunity to try a product or service for free.
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Point-of-Purchase Promotion
Build traffic
Advertise the product
Induce impulse buying
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Online Sales Promotion
Effective Types of Online Sales PromotionEffective Types of Online Sales Promotion
Free merchandise
Sweepstakes
Free shipping with purchases
Coupons
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Trade Sales Promotion
Trade AllowancesTrade Allowances
Push MoneyPush Money
TrainingTraining
Free MerchandiseFree Merchandise
Store DemonstrationStore Demonstration
Conventions & Trade ShowsConventions & Trade Shows
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Personal Selling
Personal Selling is more important if...
Customers are concentrated.
Customers are concentrated.
Product is technically complex.
Product is technically complex.
There are few customers.There are few customers.
Product is custom made.Product is custom made.
Product has a high value.Product has a high value.
Customers are geographically dispersed.
Customers are geographically dispersed.
Product is simple to understand.
Product is simple to understand.
There are many customers.There are many customers.
Product is standardized.Product is standardized.
Product has a low value.Product has a low value.
Advertising & Sales Promotion are more important if...
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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.
Relationship(Consultative)
Selling
Relationship(Consultative)
Selling
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Traditional Selling and Relationship SellingTraditionalTraditional
Personal SellingPersonal Selling
LO5
Sell advice, assistance, counsel Sell products
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 SellingRelationship Selling
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Steps in the Selling Process
Qualifying Leads
Approaching Customer
Developing and proposing solutions
Handling objections
Closing the sale
Generating Leads
A Continuing Process
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Powerful PresentationsBe 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!
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The Impact of Technology on Personal Selling
Cell phonesCell phones
LaptopsLaptops
PagersPagers
E-MailE-Mail
Electronic organizersElectronic organizers
InternetInternet
Ch 18 Discussion Questions
1. What is sales promotion? Explain how various tools for consumer sales promotion influence behavior.
2. Explain how various tools for trade sales promotion affect the channel behavior.
3. What is personal selling? When should we use personal selling over sales promotion or advertising?
4. Differentiate between relationship selling and personal traditional selling.
5. Explain the steps involved in Personal Selling.