Sales Promotion and Personal Selling

c
c 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.

Ô
c Sales Promotion Target Markets

Consumer Trade
Sales Promotion Sales Promotion

J
c ¦ses of Sales Promotion

Immediate purchases

Increase trial

Boost consumer inventory

Encourage repurchase

Increase ad effectiveness

Encourage brand switching

Encourage brand loyalty


c Gbjectives of Sales Promotion

Sales Promotion
Type of Buyer Desired Results
Examples

Loyal èReinforce behavior

èLoyalty marketing
èIncrease consumption
Customers èBonus packs
èChange timing

Competitor¶s èSampling
èBreak loyalty
èSweepstakes,
Customers èPersuade to switch
contests, premiums

Brand èPrice-lowering
èPersuade to buy your
promotion
Switchers brand more often
èTrade deals
èAppeal with low èCoupons, price-off
Price Buyers prices packages, refunds
èSupply added value èTrade deals
0
 Tools for
Ô
Consumer Sales Promotion
Coupons and Rebates

Premiums

Loyalty Marketing Programs

Contests & Sweepstakes

Sampling

Point-of-Purchase Promotion

 Tools for
Ô
Consumer Sales Promotion
A certificate that entitles
Coupon consumers to an immediate
price reduction.

A cash refund given for the

Rebate purchase of a product during
a specific product.

An extra item offered to the

Premium consumer, usually in exchange
for some proof of purchase.
D
 Tools for
Ô
Consumer Sales Promotion

Loyalty A promotional program designed

to build long-term, mutually
Marketing beneficial relationships between
Program a company and key customers.

Frequent A loyalty program in which loyal

Buyer consumers are rewarded for
Program making multiple purchases.

[
 Tools for
Ô º


Consumer Sales Promotion 

Promotions that require skill or

Contest ability to compete for prizes.

Promotions that depend on

Sweepstakes chance or luck, with
free participation.

 
 Tools for
Ô ?


Consumer Sales Promotion

A promotional program that allows

Sampling the consumer the opportunity to try a
product or service for free.

Direct mail

Door-to-door
Methods delivery
of
Sampling Packaging with
another product
Retail store
demonstration c
 Tools for
Ô
Consumer Sales Promotion

Build traffic

Advertise the product

Goals of
Point--of
Point of--Purchase
Displays Induce impulse buying

cc
 Tools for
Ô
Consumer Sales Promotion
Free merchandise
Effective
Types of Sweepstakes
Gn-Line
Sales
Promotion Free shipping

Coupons

cÔ
J Tools for Trade Sales Promotion

Trade Allowances

Push Money

Training

Free Merchandise

Store Demonstration

Conventions & Trade Shows

cJ
 The Role of
J
Trade Sales Promotion

Gain new distributors

Gbtain support for

consumer sales promotions

Build or reduce
dealer inventories

Improve trade relations

c
 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

c0
 Personal Selling

?
  
 
 
 ?
 

 
   

 
  
Product has a high value Product has a low value

Product is custom made Product is standardized

Product is Product is
technically complex simple to understand

There are few customers There are many customers

Customers are Customers are

concentrated geographically dispersed
c
0 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.
cD
 Relationship Selling
0
vs. Traditional Selling
Traditional
Relationship Selling
Personal Selling
Sell products Sell advice, assistance, counsel
Focus on closing sales Focus on customer¶s bottom line
Limited sales planning Sales planning is top priority
Discuss product Build problem-solving environment
Assess ³Product-specific´ Conduct discovery in scope of
needs operations
³Lone wolf´ approach Team approach
Profit impact and strategic
Pricing/product focus
benefit focus
Short-term sales follow-up Long-term sales follow-up c[
 Sales Process

The set of steps a

salesperson goes through
in a particular organization
to sell a particular
product or service.

c 
 Steps in the Selling Process

Generate Leads

Qualify Leads

Probe Customer Needs

Develop Solutions

Handle Gbjections

Close the Sale

Follow ¦p
Ô
 Time Spent in Key Steps

of Selling Process
Key Selling Steps Traditional Relationship
Selling Selling
Generate Leads High Low
Qualify Leads Low High
Probe Needs Low High
Develop Solutions Low High
Handle Gbjections High Low
Close the sale High Low
Follow-up Low High
Ôc
  Generating Leads
Direct Mail/
Advertising Publicity Cold Calling
Telemarketing

Internet Web Trade Shows/

Referrals Networking
Site Conventions

Company
Records

Sources of
Sales Leads

ÔÔ
 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.

ÔJ
 Qualifying Leads

x 

 
   

Recognized Receptivity &

Need Accessibility

Buying Power

G 







 
ԏ
 Needs Assessment

A determination of the
customer¶s specific needs
and wants and the range
of options a customer has
for satisfying them.

Ô0
 Probing Needs

Product or service

Salesperson Customers and their needs

must know
everything
about... Competition

Industry

Ô
 Developing and

Proposing Solutions

Sales Proposal

Sales Presentation

ÔD
 Handling Gbjections

View objections as
requests for information

Handling Anticipate
Gbjections specific objections

¦se the objection

to close the sale

Ô[
 Closing the Sale

Look for
customer signals

Closing
Keep an open mind
the Sale

Negotiate

Ô 
 Following ¦p

Ensure delivery
schedules are met
Responsibilities
Goods or service perform
in as promised
Following ¦p
Employees are trained

J
 D Sales Management Responsibilities
Define sales goals and
sales process

Determine sales
force structure
a
 
  Recruit and train
sales force

Compensate and motivate

sales force

Evaluate sales force

Jc
D Defining Sales Goals

Clear

Precise
Sales Goals
Should Be...
Measurable

Time Specific

JÔ
D Quota

A statement of the
individual salesperson¶s
sales objectives, usually
based on sales volume
alone but sometimes
including key accounts.

JJ
D Sales Force Structure

Geographic Region

Product Line
Common
Sales
Marketing Function
Grganization
Structures
Market or Industry

Individual client
or account
J
D Training the Sales Force

Company policies
and practice

Selling techniques
a
  

  Product knowledge

Industry and customer

characteristics

Nonselling duties
J0
 Compensation Plans:
D
Basic Methods

Commission

Combination
Plans

Salary

G 




  J
D Compensation Plans

Straight The salesperson is paid some

Commission percentage when a sale is made.

Straight The salesperson receives a salary

Salary regardless of sales productivity.

JD
D Effective Sales Leaders

     
...

...

Are assertive
Possess ego drive
Possess ego strength
Take risks
Are innovative
Have a sense of urgency
Are empathetic
J[
 Evaluating the Sales Force:
D
Performance Measures

Sales Volume

Contribution to Profit

Calls per Grder

Sales or Profits per Call

Call Percentage Achieving Goals

J 
 The Impact of Technology
D
on Personal Selling
Laptop computer link

Cell phones

Pagers

Personal data assistants

Sales Force
Automation E-Mail

Internet
