Sales Promotion and Personal Selling

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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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Sales Promotion Target Markets

Consumer Sales Promotion

Trade Sales Promotion

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Uses of Sales Promotion
Immediate purchases Increase trial Boost consumer inventory Encourage repurchase Increase ad effectiveness Encourage brand switching Encourage brand loyalty
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Objectives of Sales Promotion
Desired Results Sales Promotion Examples

Type of Buyer Loyal Customers Competitor¶s Customers Brand Switchers Price Buyers

‡Reinforce behavior ‡Loyalty marketing ‡Increase consumption ‡Bonus packs ‡Change timing ‡Break loyalty ‡Persuade to switch ‡Persuade to buy your brand more often ‡Appeal with low prices ‡Supply added value ‡Sampling ‡Sweepstakes, contests, premiums ‡Price-lowering promotion ‡Trade deals ‡Coupons, price-off packages, refunds ‡Trade deals
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Tools for 2 Consumer Sales Promotion
Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion
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Tools for 2 Consumer Sales Promotion
Coupon
A certificate that entitles consumers to an immediate price reduction. 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.
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Rebate

Premium

Tools for 2 Consumer Sales Promotion
Loyalty Marketing Program Frequent Buyer Program
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.

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Tools for 2 Consumer Sales Promotion

Ruffles 3-D

Contest

Promotions that require skill or ability to compete for prizes. Promotions that depend on chance or luck, with free participation.

Sweepstakes

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Tools for 2 Consumer Sales Promotion

Pizza Hut

Sampling

A promotional program that allows the consumer the opportunity to try a product or service for free.
Direct mail

Methods of Sampling

Door-to-door delivery Packaging with another product Retail store demonstration
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Tools for 2 Consumer Sales Promotion
Build traffic

Advertise the product
Goals of Point-ofPoint-of-Purchase Displays

Induce impulse buying

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Tools for 2 Consumer Sales Promotion
Free merchandise Effective Types of On-Line Sales Promotion Sweepstakes Free shipping Coupons

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3 Tools for Trade Sales Promotion
Trade Allowances Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows
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The Role of 3 Trade Sales Promotion
Gain new distributors Obtain support for consumer sales promotions Build or reduce dealer inventories

Improve trade relations
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4 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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4 Personal Selling
Personal Selling is more important if... Product has a high value Product is custom made Product is technically complex There are few customers Customers are concentrated Advertising & Sales Promotion are more important if... Product has a low value Product is standardized Product is simple to understand There are many customers Customers are geographically dispersed
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5 Relationship Selling

Dodge

A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop longterm satisfaction through mutually beneficial partnerships.
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Relationship Selling 5 vs. Traditional Selling
Traditional Personal Selling
Sell products Focus on closing sales Limited sales planning Discuss product Assess ³Product-specific´ needs ³Lone wolf´ approach Pricing/product focus Short-term sales follow-up

Relationship Selling
Sell advice, assistance, counsel 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 18

6 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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6 Steps in the Selling Process
Generate Leads Qualify Leads Probe Customer Needs Develop Solutions Handle Objections Close the Sale Follow Up
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Time Spent in Key Steps 6 of Selling Process
Key Selling Steps Traditional Selling Relationship Selling

Generate Leads Qualify Leads Probe Needs Develop Solutions Handle Objections Close the sale Follow-up

High Low Low Low High High Low

Low High High High Low Low High
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6 Generating Leads
Advertising Internet Web Site Publicity Direct Mail/ Telemarketing Networking Cold Calling Trade Shows/ Conventions

Referrals

Company Records

Sources of Sales Leads

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6 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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6 Qualifying Leads
Characteristics of Qualified Leads

Recognized Need Buying Power

Receptivity & Accessibility

On Line http://www.hoovers.com http://www.dnb.com

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6 Needs Assessment

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

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6 Probing Needs
Product or service

Salesperson must know everything about...

Customers and their needs

Competition

Industry
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Developing and 6 Proposing Solutions

Sales Proposal

Sales Presentation

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6 Handling Objections
View objections as requests for information

Handling Objections

Anticipate specific objections Use the objection to close the sale

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6 Closing the Sale

Look for customer signals

Closing the Sale

Keep an open mind

Negotiate

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6 Following Up

Ensure delivery schedules are met

Responsibilities in Following Up

Goods or service perform as promised Employees are trained

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Sales Management Responsibilities
Define sales goals and sales process Determine sales force structure

Tasks of Sales Management

Recruit and train sales force Compensate and motivate sales force Evaluate sales force
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Defining Sales Goals
Clear

Precise

Sales Goals Should Be...
Measurable

Time Specific
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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
Geographic Region Product Line

Common Sales Organization Structures

Marketing Function Market or Industry Individual client or account
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Training the Sales Force
Company policies and practice Selling techniques

Training includes...

Product knowledge Industry and customer characteristics Nonselling duties
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Compensation Plans: Basic Methods
Commission

Combination Plans

Salary
On Line http://www.marykay.com

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Compensation Plans

Straight Commission Straight Salary

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

The salesperson receives a salary regardless of sales productivity.

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Effective Sales Leaders
Effective Sales Leaders... Leaders...
Are assertive Possess ego drive Possess ego strength Take risks Are innovative Have a sense of urgency Are empathetic
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Evaluating the Sales Force: 7 Performance Measures
Sales Volume Contribution to Profit Calls per Order Sales or Profits per Call Call Percentage Achieving Goals
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The Impact of Technology 7 on Personal Selling
Laptop computer link Cell phones Pagers Personal data assistants

Sales Force Automation

E-Mail Internet
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