Sales Promotion and Personal Selling Key Concepts.
-
Upload
todd-perry -
Category
Documents
-
view
218 -
download
2
Transcript of Sales Promotion and Personal Selling Key Concepts.
Sales Promotion and Personal Selling
Key Concepts
Sales Promotion
Marketing
communication
activities, other than
advertising, personal
selling, and public
relations, in which a
short-term incentive
motivates a purchase.
SalesPromotion
SalesPromotion
Sales Promotion
Advertising Reason to buy
Sales Promotion Incentive to buy
Sales Promotion
ConsumerSales
Promotion
ConsumerSales
Promotion
Trade Sales
Promotion
Trade Sales
Promotion
Consumer market
Marketing channel
Drive immediate purchaseInfluence behavior
Goal
The Objectives of Sales Promotion
LO1
Objectives of Sales Promotion
Type of BuyerType of Buyer
Loyal Customers
Competitor’sCustomers
Brand Switchers
Price Buyers
Desired ResultsDesired Results
•Reinforce behavior• Increase consumption•Change purchase timing
•Break loyalty•Persuade to switch
•Persuade to buy your brand more often
•Appeal with low prices
•Supply added value
Sales PromotionSales PromotionExamples Examples
•Loyalty marketing•Bonus packs
•Sampling•Sweepstakes, contests, premiums
•Price-lowering promotion
•Trade deals
•Coupons, price-offpackages, refunds
•Trade deals
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
Tools for Consumer Sales Promotion
CouponCoupon
RebateRebate
PremiumPremium
A certificate that entitles consumers to an immediate
price reduction.
A certificate that entitles consumers to an immediate
price reduction.
A cash refund given for the purchase of a product during
a specific period.
A cash refund given for the purchase of a product during
a specific period.
An extra item offered to the consumer, usually in exchange
for some proof of purchase.
An extra item offered to the consumer, usually in exchange
for some proof of purchase.
Tools for Consumer Sales Promotion
LoyaltyMarketingProgram
LoyaltyMarketingProgram
A promotional program designed to build long-term, mutually beneficial relationships between a company and key customers.
A promotional program designed to build long-term, mutually beneficial relationships between a company and key customers.
FrequentBuyer
Program
FrequentBuyer
Program
A loyalty program in which loyal consumers are rewarded for making multiple purchases.
A loyalty program in which loyal consumers are rewarded for making multiple purchases.
Tools for Consumer Sales Promotion
ContestsContests Promotions that require skill or ability to compete for prizes.
Promotions that require skill or ability to compete for prizes.
SweepstakesSweepstakes Promotions that depend on chance or luck, with free participation.
Promotions that depend on chance or luck, with free participation.
Tools for Consumer Sales Promotion
SamplingSamplingA promotional program that allows the consumer the opportunity to try a product or service for free.
A promotional program that allows the consumer the opportunity to try a product or service for free.
Methods of Sampling
Direct mailDirect mail
Door-to-door deliveryDoor-to-door delivery
Packaging with another productPackaging with another product
Retail store demonstrationRetail store demonstration
Point-of-Purchase Promotion
Build traffic
Advertise the product
Induce impulse buying
Online Sales Promotion
Effective Types of Online Sales PromotionEffective Types of Online Sales Promotion
Free merchandise
Sweepstakes
Free shipping with purchases
Coupons
B2B -- Trade Sales Promotion
Trade AllowancesTrade Allowances
Push MoneyPush Money
TrainingTraining
Free MerchandiseFree Merchandise
Store DemonstrationStore Demonstration
Conventions & Trade ShowsConventions & Trade Shows
Trade Allowance
TradeAllowance
TradeAllowance
A price reduction offered
by manufacturers to
intermediaries, such as
wholesalers and retailers.
Push Money
Push MoneyPush MoneyMoney offered to channel
intermediaries to encourage
them to “push” products--
that is, to encourage other
members of the channel to
sell the products.
E.g. Nike gives bonus to
sales staff of retailers for
meeting quotas
Benefits of Trade Promotions
Help manufacturers gain new distribution
Obtain wholesaler and retailer support forconsumer sales promotions
Build or reduce dealer inventories
Improve trade relations
Forms of Trade Sales Promotion
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...
Why Personal Selling is Effective
Detailed explanation or demonstration
Variable sales message
Directed to qualified prospects
Controllable adjustable selling costs
More effective than other promotion in obtaining sale and gaining customer satisfaction
PersonalSelling
Advantages
PersonalSelling
Advantages
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.
Relationship(Consultative)
Selling
Relationship(Consultative)
Selling
Traditional Selling and Relationship Selling
TraditionalTraditionalPersonal SellingPersonal Selling
LO5
Sell advice, assistance, counsel Sell products
Focus on closing sales
Limited sales planning
Discuss product
Assess “product-specific” needs
“Lone wolf” approach
Pricing/product focus
Short-term sales follow-up
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
Relationship SellingRelationship Selling
Relationship Selling vs. Traditional Selling
InitialSales
RepeatSales
SuccessiveSales
Traditional Sales
Relationship Sales
SalesIncreasesResultFromCreatingValue
Steps in the Selling Process
Generate LeadsGenerate Leads
Qualify LeadsQualify Leads
Probe Customer NeedsProbe Customer Needs
Develop SolutionsDevelop Solutions
Handle ObjectionsHandle Objections
Close the SaleClose the Sale
Follow UpFollow Up
Generating Leads
AdvertisingAdvertising PublicityPublicity Direct Mail/TelemarketingDirect Mail/
Telemarketing
Cold CallingCold Calling Internet Web SiteInternet Web Site ReferralsReferrals
Trade Shows/Conventions
Trade Shows/ConventionsNetworkingNetworking Company
RecordsCompany Records
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.
Cold CallingCold Calling
Qualifying Leads
Receptivity andaccessibility
Receptivity andaccessibility
Buying powerBuying power
Recognized needRecognized need
Needs Assessment
A determination of the
customer’s specific needs
and wants and the range of
options a customer has for
satisfying them.
NeedsAssessment
NeedsAssessment
The Consultative Salesperson
Product or serviceProduct or service
CustomersCustomers
CompetitionCompetition
IndustryIndustry
Salesperson must knoweverything
about...
Salesperson must knoweverything
about...
Developing and Proposing Solutions
Sales ProposalSales Proposal
Sales PresentationSales Presentation
Powerful PresentationsBe well prepared
Use eye contact
Ask open-ended questions
Be poised
Use hand gestures and voice inflection
Focus on the customer needs
Incorporate visual elements
Know how to operate the A/V equipment
Make sure the equipment works
PRACTICE, PRACTICE, PRACTICE!
Handling Objections
View objections as requests for information
Anticipate specific objections
Investigate the objection with the customer
Be aware of competitors’ products
Stay calm
Use the objection to close the sale
Closing the Sale
NegotiateNegotiate
Keep an open mindKeep an open mind
Look for customer signals
Look for customer signals
Tailor to each marketTailor to each market
The Impact of Technology on Personal Selling
Cell phonesCell phones
LaptopsLaptops
PagersPagers
E-MailE-Mail
Electronic organizersElectronic organizers
InternetInternet
Steps in the Selling Process