Sales Promotion and Personal Selling. Objectives Define and state the objectives of sales promotion....

Sales Promotion and Personal Selling

Objectives

● Define and state the objectives of sales promotion.● Discuss the most common forms of consumer

sales promotion.● List the most common forms of trade sales

promotion.● Describe personal selling.● Discuss the key differences between relationship

selling and traditional selling.● List the steps in the selling process.● Describe the functions of sales management.

Sales Promotion

Marketing communication

activities, in which a

short-term incentive motivates

a purchase.

Advertising, personal selling,

and public relations are not

included in Sales Promotion.

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On Linehttp://www.onlineclothingstores.comhttp://www1.coolsavings.com

On Linehttp://www.onlineclothingstores.comhttp://www1.coolsavings.com

Sales Promotion Target Markets

ConsumerSales Promotion

ConsumerSales Promotion

Trade Sales Promotion

Trade Sales Promotion

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Uses of Sales Promotion

Immediate purchasesImmediate purchases

Increase trialIncrease trial

Boost consumer inventoryBoost consumer inventory

Encourage repurchaseEncourage repurchase

Increase ad effectivenessIncrease ad effectiveness

Encourage brand switchingEncourage brand switching

Encourage brand loyaltyEncourage brand loyalty

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Objectives of Sales Promotion

Type of BuyerType of Buyer Type of BuyerType of Buyer

Loyal CustomersLoyal Customers

Competitor’sCustomersCompetitor’sCustomers

Brand SwitchersBrand Switchers

Price BuyersPrice Buyers

Desired ResultsDesired Results Desired ResultsDesired Results

•Reinforce behavior• Increase consumption•Change timing

•Reinforce behavior• Increase consumption•Change timing

•Break loyalty•Persuade to switch•Break loyalty•Persuade to switch

•Persuade to buy your brand more often•Persuade to buy your brand more often

•Appeal with low prices•Supply added value

•Appeal with low prices•Supply added value

Sales PromotionSales PromotionExamples Examples

Sales PromotionSales PromotionExamples Examples

•Loyalty marketing•Bonus packs•Loyalty marketing•Bonus packs

•Sampling•Sweepstakes, contests, premiums

•Sampling•Sweepstakes, contests, premiums

•Price-lowering promotion•Trade deals

•Price-lowering promotion•Trade deals

•Coupons, price-offpackages, refunds•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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CouponCoupon

RebateRebate

PremiumPremium

A cash refund given for the purchase of a product during

a specific product.

A cash refund given for the purchase of a product during

a specific product.

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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A certificate that entitles consumers to an immediate

price reduction.

LoyaltyMarketingProgram

LoyaltyMarketingProgram

FrequentBuyer

Program

FrequentBuyer

Program

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.

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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ContestContest

SweepstakesSweepstakes

Promotions that require skill or ability to compete for prizes.

Promotions that require skill or ability to compete for prizes.

Promotions that depend on chance or luck, with

free participation.

Promotions that depend on chance or luck, with

free participation.


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On Linehttp://www.sweepstakesonline.com

On Linehttp://www.sweepstakesonline.com

Ruffles 3-D

SamplingSampling A 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.


Pizza Hut

Methodsof

Sampling

Methodsof

Sampling

Direct mailDirect mail

Door-to-door delivery

Door-to-door delivery

Packaging with another productPackaging with another product

Retail store demonstrationRetail store

demonstration

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Goals ofGoals of Point-of-PurchasePoint-of-Purchase

DisplaysDisplays

Goals ofGoals of Point-of-PurchasePoint-of-Purchase

DisplaysDisplays

Build traffic Build traffic

Advertise the productAdvertise the product

Induce impulse buyingInduce impulse buying

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On Linehttp://www.burgerking.comhttp://www.philipmorris.comhttp://www.upromote.com

On Linehttp://www.burgerking.comhttp://www.philipmorris.comhttp://www.upromote.com


Free merchandiseFree merchandise

SweepstakesSweepstakes

Free shippingFree shipping

CouponsCoupons

EffectiveTypes ofOn-LineSales

Promotion

EffectiveTypes ofOn-LineSales

Promotion

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Tools for 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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The Role of Trade Sales Promotion

Improve trade relations

Gain new distributors

Build or reducedealer inventories

Obtain support forconsumer sales promotions

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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 method to obtain sales and gain satisfied customers

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Personal Selling

Customers are concentrated

Customers are concentrated

There are few customersThere are few customers

Product is technically complex

Product is technically complex

Product is custom madeProduct is custom made

Product has a high valueProduct has a high value

Personal Selling Personal Selling is more important if...is more important if...

Customers are geographically dispersed

Customers are geographically dispersed

There are many customersThere are many customers

Product is simple to understand

Product is simple to understand

Product is standardizedProduct is standardized

Product has a low valueProduct has a low value

Advertising & Sales Promotion Advertising & Sales Promotion are more important if...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.

55 Dodge

Relationship Selling vs. Traditional Selling

Sell advice, assistance, counsel Sell advice, assistance, counsel Sell products

TraditionalTraditionalPersonal SellingPersonal Selling

Focus on closing salesFocus on closing sales

Limited sales planningLimited sales planning

Discuss productDiscuss product

Assess “Product-specific” needsAssess “Product-specific” needs

“Lone wolf” approach“Lone wolf” approach

Pricing/product focusPricing/product focus

Short-term sales follow-up Short-term sales follow-up

Focus on customer’s bottom lineFocus on customer’s bottom line

Sales planning is top prioritySales planning is top priority

Build problem-solving environmentBuild problem-solving environment

Conduct discovery in scope of operationsConduct discovery in scope of operations

Team approachTeam approach

Profit impact and strategic benefit focusProfit impact and strategic benefit focus

Long-term sales follow-up Long-term sales follow-up

Relationship SellingRelationship Selling

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Sales Process

The set of steps a

salesperson goes through

in a particular organization

to sell a particular

product or service.

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Steps in the Selling Process

Generate LeadsGenerate Leads

Qualify LeadsQualify Leads

Probe Customer NeedsProbe Customer Needs

Develop SolutionsDevelop Solutions

Handle ObjectionsHandle Objections

Close the SaleClose the Sale

Follow UpFollow Up

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Time Spent in Key Steps of Selling Process

Key Selling Steps Traditional

Selling

Relationship

Selling

Generate Leads High Low

Qualify Leads Low High

Probe Needs Low High

Develop Solutions Low High

Handle Objections High Low

Close the sale High Low

Follow-up Low High

66

On Linehttp://www.goleads.comhttp://www.zapdata.com

On Linehttp://www.goleads.comhttp://www.zapdata.com

Generating Leads

Cold CallingCold CallingAdvertisingAdvertising PublicityPublicity Direct Mail/TelemarketingDirect Mail/

Telemarketing

Trade Shows/Conventions

Trade Shows/Conventions

Internet Web Site

Internet Web Site ReferralsReferrals NetworkingNetworking

Company Records

Company Records

Sources ofSources ofSales LeadsSales LeadsSources ofSources of

Sales LeadsSales Leads

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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.

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Qualifying Leads

Recognized Need

Recognized Need

Buying PowerBuying Power

Receptivity & Accessibility

Receptivity & Accessibility

Characteristics ofCharacteristics ofQualified LeadsQualified Leads

Characteristics ofCharacteristics ofQualified LeadsQualified Leads

66

On Linehttp://www.hoovers.comhttp://www.dnb.com

On Linehttp://www.hoovers.comhttp://www.dnb.com

Needs Assessment

A determination of the

customer’s specific needs

and wants and the range

of options a customer has

for satisfying them.

66

Probing Needs

Product or serviceProduct or service

Customers and their needsCustomers and their needs

CompetitionCompetition

IndustryIndustry

Salesperson must knoweverything

about...

Salesperson must knoweverything

about...

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Developing and Proposing Solutions

Sales ProposalSales Proposal

Sales PresentationSales Presentation

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Handling Objections

Handling Handling

ObjectionsObjections

Handling Handling

ObjectionsObjections

Use the objection to close the sale

Use the objection to close the sale

Anticipate specific objections

Anticipate specific objections

View objections as requests for information

View objections as requests for information

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Closing the Sale

Closing Closing the Salethe Sale

Closing Closing the Salethe Sale

NegotiateNegotiate

Keep an open mindKeep an open mind

Look for customer signals

Look for customer signals

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Following Up

ResponsibilitiesResponsibilities

ininFollowing UpFollowing Up

ResponsibilitiesResponsibilities

ininFollowing UpFollowing Up

Employees are trainedEmployees are trained

Goods or service performas promised

Goods or service performas promised

Ensure delivery schedules are metEnsure delivery

schedules are met

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Sales Management Responsibilities

Evaluate sales forceEvaluate sales force

Compensate and motivatesales force

Compensate and motivatesales force

Recruit and trainsales force

Recruit and trainsales force

Determine sales force structure

Determine sales force structure

Define sales goals andsales process

Define sales goals andsales process

Tasks of Tasks of Sales ManagementSales Management

Tasks of Tasks of Sales ManagementSales Management

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Defining Sales Goals

ClearClear

PrecisePrecise

MeasurableMeasurable

Time SpecificTime Specific

Sales GoalsShould Be...Sales GoalsShould Be...

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Quota

A statement of the

individual salesperson’s

sales objectives, usually

based on sales volume

alone but sometimes

including key accounts.

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Sales Force Structure

CommonCommonSalesSales

OrganizationOrganizationStructuresStructures

CommonCommonSalesSales

OrganizationOrganizationStructuresStructures

Individual client or account

Individual client or account

Market or IndustryMarket or Industry

Marketing FunctionMarketing Function

Product LineProduct Line

Geographic RegionGeographic Region

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Training the Sales Force

Training Training includes...includes...

Training Training includes...includes...

Nonselling dutiesNonselling duties

Industry and customer characteristics

Industry and customer characteristics

Product knowledgeProduct knowledge

Selling techniquesSelling techniques

Company policies and practice

Company policies and practice

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Compensation Plans: Basic Methods

CommissionCommission

SalarySalary

CombinationPlans

CombinationPlans

On Linehttp://www.marykay.com

On Linehttp://www.marykay.com

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Compensation Plans

StraightCommission

StraightCommission

StraightSalary

StraightSalary

The salesperson is paid some percentage when a sale is made.The salesperson is paid some percentage when a sale is made.

The salesperson receives a salary regardless of sales

productivity.

The salesperson receives a salary regardless of sales

productivity.

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Effective Sales Leaders

Effective Sales LeadersEffective Sales Leaders......Effective Sales LeadersEffective Sales Leaders......

Are assertive Are assertive

Possess ego drivePossess ego drive

Possess ego strengthPossess ego strength

Take risksTake risks

Are innovativeAre innovative

Have a sense of urgencyHave a sense of urgency

Are empatheticAre empathetic

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Evaluating the Sales Force: Performance Measures

Contribution to ProfitContribution to Profit

Calls per OrderCalls per Order

Sales or Profits per CallSales or Profits per Call

Call Percentage Achieving GoalsCall Percentage Achieving Goals

Sales VolumeSales Volume

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The Impact of Technology on Personal Selling

Laptop computer linkLaptop computer link

Cell phonesCell phones

PagersPagers

Personal data assistantsPersonal data assistants

E-MailE-Mail

InternetInternet

Sales ForceSales ForceAutomationAutomationSales ForceSales ForceAutomationAutomation

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Sales Promotion and Personal Selling. Objectives Define and state the objectives of sales promotion....

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