Lesson 7.1 – Understanding Sales. LESSON 7.1 Intro to Promotion & Sales Sales Action Sales: The...
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Transcript of Lesson 7.1 – Understanding Sales. LESSON 7.1 Intro to Promotion & Sales Sales Action Sales: The...
Lesson 7.1 –
Understanding Sales
LESSON 7.1
Intro to Promotion & Sales
Sales
Action
Sales:
The process of determining customer needs and wants through planned, personalized communication intended to influence purchase decisions and ensure satisfaction
It is the exchange of goods and services from producers to consumers for a price
LESSON 7.1
Intro to Promotion & Sales
Sales Examples in SEM
a) Selling group tickets to a play
b) Negotiating an event contract with a facility or venue
c) A college athletic department soliciting donations from
d) alumni to fund scholarship opportunities
e) Selling an event sponsorship package
Sales
1. Selling is the revenue-producing element of the marketing process
2. Sales is the only revenue-producing function for an organization
3. Selling helps customers make informed buying decisions
a) Results in customer satisfaction and repeat business
Why is selling important?
LESSON 7.1
Intro to Promotion & Sales
Sales
LESSON 7.1
Intro to Promotion & Sales
Sales
Action1. Personal Selling:
Any person-to-person communication in which the seller has an opportunity to influence the consumer’s buying decisions
a) The process is a two-way communication between a representative of the company and the customer
b) Personal selling is the only form of sales that involves direct contact between the sales professional and potential customer
LESSON 7.1
Intro to Promotion & Sales
Personal Selling
In a non-traditional example of personal selling, members of the Western Kentucky University football team go door-to-door selling football tickets. In that season, players sold 300 season tickets and the Hilltoppers enjoyed the second-highest average attendance figures in school history. Student attendance has increased more than 80 percent from 2006 to 2008.
LESSON 7.1
Intro to Promotion & Sales
a) The Sales Person can immediately tailor the sales message based
on the prospective customer’s response, feedback and buying signalsb) Allows for the communication of specific information
relating the customer needs than any other form of promotion
c) Complex information can be explained
Benefits To Personal Selling
LESSON 7.1
Intro to Promotion & Sales
d) The likelihood of the customer paying attention to the information being shared is greatly increased because of the face-face communication
e) Provides the best opportunity to establish solid working relationships, enhancing the probability of
developing long term relationships with consumers
Key Advantages To Personal Selling
LESSON 7.1
Intro to Promotion & Sales
a) Inside sales I. professionals sell company products and
services over the phone, Internet, or other means of communication from inside the company’s office
Personal Selling Categories
Sales
LESSON 7.1
Intro to Promotion & Sales
Inside Sales
II. Inside sales professionals make outgoing calls to prospective customers or receive incoming orders or phone calls pertaining to company products or services
a) According to a report from two Illinois State University researchers, the most successful collegiate athletic departments are making as many as 3,500 outgoing phone calls each week to try to sell more tickets, an effort that their research suggests can generate $1 million or more in additional revenue for the school’s athletics program
II. Often utilized for products and services that require minimal investment levels, such as smaller ticket packages
II. In most instances, an inside sales staff consists primarily of telemarketersa) Telemarketers: Sales
professionals that make outbound telephone calls to prospective customers in order to sell company products and services
Inside Sales
LESSON 7.1
Intro to Promotion & Sales
Outside sales professionals typically communicate with customers in person
Personal Selling Categories
Sales
LESSON 7.1
Intro to Promotion & Sales
Many ticket sales and most sponsorship sales opportunities are most effective as outside sales calls
Also referred to as “field sales” or “external sales”
Outside Sales
LESSON 7.1
Intro to Promotion & Sales
Personal Selling Categories
Sales
Box office sales professionals are located on site at a venue or facility who sell to customers in person at the event or to future events
Box Office Sales
LESSON 7.1
Intro to Promotion & Sales
Movie theaters sell nearly all tickets through box office sales, although more and more
consumers are buying movie tickets in advance online through services like Fandango
LESSON 7.1
Intro to Promotion & Sales
Sales Methods
Feature-Benefit Selling
Full-Menu Marketing
E-Commerce
Direct Mail
Sales
LESSON 7.1
Intro to Promotion & Sales
Sales
Action
Product attributes (features):
The basic, physical, and extended characteristics of an item
For example, many professional sports teams sell tickets in club seating levels
The seats often have distinct product features that set them apart from general seating, such as wider seats or video screens on the seats in front of them
LESSON 7.1
Intro to Promotion & Sales
Sales
Action
Customer Benefits:
The advantages or personal satisfaction a customer will get from a good or service
Comfort, convenience, and space are benefits of club seating
LESSON 7.1
Intro to Promotion & Sales
Sales
Action
Feature-Benefit Selling:
The process involves matching specific product attributes to a customer’s needs and wants
A company may have purchased club seats to entertain clients and would want to reward them for their business by allowing them to sit in the most comfortable seats possible at the game or event
Full Menu Marketing
LESSON 7.1
Intro to Promotion & Sales
A sales professional working for a minor league sports team may meet with a company and have the ability to offer a small sponsorship, a major sponsorship featuring exclusivity benefits, season tickets, group tickets, VIP tickets, parking or a combination of those options
LESSON 7.1
Intro to Promotion & Sales
Sales
Action
E-Commerce:
Internet selling is a form of e-commerce and is executed using the Internet
Any consumer who is a fan of Disney may go online and purchase DVDs, plush toys, action figures, watches, ornaments or many other products
LESSON 7.1
Intro to Promotion & Sales
Sales
Action
Direct Mail:
A sales effort conducted exclusively by mail
Characteristically sent to large numbers of prospective customers soliciting orders for company products and services
Targeted
Personal
Measurable
Testable
Flexible
To be effective, a direct mail approach must be:
LESSON 7.1
Intro to Promotion & Sales
Sales
Ticket brochures
Pocket schedules and posters
Fliers & other print media
Solicitation letters
Alternative
Direct mail examples could include:
LESSON 7.1
Intro to Promotion & Sales
Sales
Direct Mail
LESSON 7.1
Intro to Promotion & Sales
To increase ticket and pay-per-view purchases, World Wrestling Entertainment (WWE) distributed a direct mail piece to 700,000 consumers promoting its annual “SummerSlam” event
Said Eddie Hill, SVP of marketing at the WWE, “Direct mail is one of our best targeted tactics”
Direct Mail
LESSON 7.1
Intro to Promotion & Sales
In an effort to leverage the team’s accomplishment of earning their first NHL Playoffs berth since 2007, the Tampa Bay Lightning utilized a direct mail strategy in 2012 to boost ticket sales by sending 30,000 specially designed postcards to area businesses (the postcards featured each recipient's company name on the name plate above a player's locker in the Lightning locker room)
Direct Mail
LESSON 7.1
Intro to Promotion & Sales
Introduction to Promotion & Sales
LESSON 7.1 REVIEW (ANSWERS)LESSON 7.1 REVIEW (ANSWERS)
1)Define and provide examples of sales
Sales is the process of determining customer needs and wants through planned, personalized communication intended to influence purchase decisions and ensure satisfaction. Sales could include selling group tickets to a play, negotiating an event contract with a facility or venue, a college athletic department soliciting donations from alumni to fund scholarship opportunities, selling an event sponsorship package or fulfilling all components of a sponsorship agreement.
Introduction to Promotion & Sales
LESSON 7.1 REVIEW (ANSWERS)LESSON 7.1 REVIEW (ANSWERS)
2)Identify three personal selling categories
Three primary categories of personal selling in sports and entertainment include inside sales, outside sales and box office sales.
3) Identify four sales methods
Four common sales methods in SEM include feature-benefit selling, full menu marketing, e-commerce and direct mail.