Copyright Cengage Learning 2013 All Rights Reserved 1 Chapter 18: Sales Promotion and Personal...

Copyright Cengage Learning 2013

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1

Chapter 18: Sales Promotion and Personal Selling

Designed & Prepared by Laura RushB-books, Ltd.

Introduction to


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Learning Outcomes

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

LO1

LO2

LO3

LO4


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Learning Outcomes

Discuss the key differences between relationship selling and traditional selling

List the steps in the selling process

Describe the functions of sales management

LO5

LO6

LO7

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Sales Promotion

Marketing activities, other than advertising, personal selling,

and public relations, that stimulate consumer buying

and dealer effectiveness.


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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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Loyalty Marketing

Loyalty Marketing Program - A promotional program designed

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

Frequent Buyer Program - A loyalty program in which

loyal customers are rewarded for making multiple purchasers.


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Contests and Sweepstakes

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Online

http://www.online-sweepstakes.com/

Contests - Promotions that require skill or ability to

compete for prizes.

Sweepstakes - Promotions that depend on chance or luck,

with free participation.


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http://www.online-sweepstakes.com/

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Sampling

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

• Free merchandise

• Sweepstakes

• Free shipping with purchases

• Coupons

Effective Types of Online Sales PromotionEffective Types of Online Sales Promotion


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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

Relationship (Consultative)Selling - A sales practice thatinvolves building, maintaining,

and enhancing interactionswith customers in order to

develop long-term satisfactionthrough mutually beneficial

partnership.


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Steps in the Selling Process

Generate LeadsGenerate Leads

Qualify LeadsQualify Leads

Probe Customer NeedsProbe Customer Needs

Develop/Propose SolutionsDevelop/Propose Solutions

Handle ObjectionsHandle Objections

Close the SaleClose the Sale

Follow UpFollow Up


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Sales Management Responsibilities

Evaluate sales forceEvaluate sales force

Compensate and motivate sales forceCompensate and motivate sales force

Recruit and train sales forceRecruit and train sales force

Determine sales force structureDetermine sales force structure

Define sales goals and sales processDefine sales goals and sales process


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Quota

A statement of the individual salesperson’s sales

objectives, usually based on salesvolume alone but sometimes including key accounts, new

accounts, repeat sales, and specificproducts.


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Sales Force Structure

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 includes...

Training 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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Evaluating the Sales Force

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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Copyright Cengage Learning 2013 All Rights Reserved 1 Chapter 18: Sales Promotion and Personal...

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