Integrated Marketing Communication

Session 7
Siddiq Musaliar

Sales Promotion

A direct inducement that offers

an extra value or incentive for
the product to the sales force,
distributors, or ultimate consumer
with the primary objective of
creating an immediate sale

Corn Flakes Premium Offer

Sales Promotion Vehicles

Consumer-Oriented

Trade-Oriented

Samples

Contests, incentives

Coupons

Trade allowances

Contests/sweepstakes

POP displays

Refunds/rebates

Sales training programs

Bonus Packs

Trade shows

Price-off deals

Media Often Delivers a Promotion Message

Reasons for Sales Promotion Increase

Growing power of retailers
Declining brand loyalty
Brand proliferation
Short-term focus of marketers
Clutter

Sale Promotion Concerns

Negative impact of sales promotions

Fewer dollars to build brand equity
Encourages consumers to purchase on
the basis of price
Detracts from the value of the brand

Consumer Franchise-Building Promotions

Promotional Objectives
Communicate
distinctive
brand attributes

Develop and
reinforce brand
identity

Build long-term
brand
preference

Techniques and Practices

Frequency
programs
promote repeat
purchase

Sweepstakes &
contests build
equity, increase
involvement

Premium offers
that reinforce
brand image &
build equity

Nonfranchise-Building Promotions

Objectives
Accelerate the
purchase decision
process

Generate an
immediate sales
increase

Limitations
Do not identify
unique brand
features

Do not contribute
to brand identity
or image

Objectives of Consumer-Oriented Promotions

Increase
consumption of an
established brand
Obtain trial
and purchase

Defend (maintain)
current customers

Target a
specific segment

Sampling

Sampling Works Best When

The products
are of
relatively low
unit value

The product
can be broken
into a small
piece or size
that reflects
the full
features and
benefits

The purchase
cycle is
relatively
short

Sampling Promotion

Sampling Methods

Door-to-door
Methods

Direct mail
In-store
On package
Events
Newspaper/magazine insert

Couponing

The
oldest and
most widely
used
sales
promotion
tool

85% of
consumers
use
coupons;
21% use
them
regularly

Nearly
240 billion
distributed
each year
in the US

Pros and Cons of Coupons

Advantages

Disadvantages

Appeals to price
sensitive consumers

Hard to tell how many

consumers will use
them and when

Effective way to induce

trial of products

Defends market share

and encourages
repurchase

Often used by loyal

consumers who would
purchase anyway
Low redemption rates
and high costs

Coupon Misredemption and Fraud

Salesclerk redemption of coupons for cash

Store managers gathering and redeeming

coupons without the accompanying sale
Criminals gather or print coupons and sell
them to unethical merchants

Coupon Distribution
In order of usage
Freestanding inserts (86%)
In-store couponing (6%)
Direct mail (2%)
Magazines (2%)
Newspapers (1%)
Coupons inside/outside product (1%)
Other methods (2%)

Coupon Redemption Rates

Types of Coupons

In/On-Pack

In-Store

Bounce-back

Tear-off pads

Cross-ruff

Handouts

Instant

Cross-Ruff Coupons

Coupons are Available Electronically

Premiums

An offer of an item, merchandise, or

service, free or at a low cost, that is
an extra incentive for customers

Types of Premiums

Free:
Only requires purchase
of the product

Self-liquidating:
consumer required to
pay some or all of the
cost of the premium

Airline Miles are a Popular Incentive

Trade Oriented Promotions

Obtain distribution for new

products
Objectives
Maintain support for
established brands
Encourage display of
products

Types of Trade Oriented Promotions

Contests and incentives
Types
Trade allowances
POP displays

Buying

Sales training

Promotional
Slotting

Sales Promotion Abuse

Over-use of sales promotions
Looking for quick sales fixes
Easier to drop prices than to differentiate
your product

Negative impact
A brand that is constantly promoted
may lose perceived value
Purchases based on discounts, not a
favorable attitude
Sales promotion trap or spiral

The Sales Promotion Trap

Personal Selling
The Role of the Sales Force

Personal selling is the

interpersonal part of the promotion mix
and can include:

Fa etofa e communication

Telephone communication

Video or Web conferencing

Personal Selling
The Nature of Personal Selling

Salespeople are an effective link

between the company and its
customers to produce customer
value and company profit by:
Representing the company to customers
Representing customers to the company
Working closely with marketing

The Personal Selling Process

The goal of the personal selling process is to
get new customers and obtain orders from
them

The Personal Selling Process

Steps in the Personal Selling Process

Prospecting identifies qualified

potential customers through referrals
from:

Customers

Suppliers

Dealers

Internet

The Personal Selling Process

Steps in the Personal Selling Process

Qualifying is identifying good

customers and screening out poor
ones by looking at:
Financial ability
Volume of business
Needs
Location
Growth potential

The Personal Selling Process

Steps in the Personal Selling Process
Preapproach is the process of learning as
much as possible about a prospect,
including needs, who is involved in the
buying, and the characteristics and styles
of the buyers

The Personal Selling Process

Steps in the Personal Selling Process

Approach is the process where the

salesperson meets and greets the
buyer and gets the relationship off to a
good start and involves the
salesperso s:
Appearance
Opening lines
Followup remarks

The Personal Selling Process

Steps in the Personal Selling Process

Opening lines should be positive,

build goodwill, and be followed by key
questions to learn about the
usto ers needs or showing a display
or sample to attract the uyers
attention and curiosity
The most important attribute is for
the salesperson to: listen

The Personal Selling Process

Steps in the Personal Selling Process

Presentation is when the salesperson

tells the product story to the buyer,
presenting customer benefits and showing
how the product solves the usto ers
problems

Needsatisfa tio approach: Buyers want

solutions and salespeople should listen and
respond with the right products and services to
solve customer problems

The Personal Selling Process

Steps in the Personal Selling
Process

Handling objections is the

process where salespeople
resolve problems that are
logical, psychological, or
unspoken

The Personal Selling Process

Steps in the Personal Selling Process

Closing is the process where

salespeople should recognize signals from
the buyer including physical actions,
comments, and questionsto close the
sale

The Personal Selling Process

Steps in the Personal Selling Process

Followup is the last step in which

the salesperson follows up after the sale
to ensure customer satisfaction and
repeat business

Managing the Sales Force

How Salespeople Spend Their Time

Managing the Sales Force

Supervising and Motivating Salespeople

Sales morale and performance

can be increased through:
Organizational climate
Sales quotas
Positive incentives

Managing the Sales Force

Evaluating Salespeople and Sales Force
Performance

Thank You