S&d

Doon University Chapter 16 Version 6e 1

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Sales Promotion and Sales Promotion and Personal SellingPersonal Selling

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Prepared byPrepared byS K DadarS K Dadar


chapter

Learning ObjectivesLearning Objectives

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1.1. Define and state the objectives of sales Define and state the objectives of sales promotion.promotion.

2. Discuss the most common forms of 2. Discuss the most common forms of consumer sales promotion.consumer sales promotion.

3. List the most common forms of trade sales 3. List the most common forms of trade sales promotion.promotion.


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Learning Objectives (continued)Learning Objectives (continued)

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4. Describe personal selling.4. Describe personal selling.

5. Discuss the key differences between 5. Discuss the key differences between relationship selling and traditional selling.relationship selling and traditional selling.

6. List the steps in the selling process.6. List the steps in the selling process.

7.7. Describe the functions of sales Describe the functions of sales management.management.


Learning Objective Learning Objective 11

Define and state the Define and state the objectives of sales promotion.objectives of sales promotion.


Sales PromotionSales Promotion11

Marketing communication

activities, other than

advertising, personal

selling, and public

relations, in which a

short-term incentive

motivates a purchase.


Sales PromotionSales Promotion

ConsumerSales Promotion

ConsumerSales Promotion

Trade Sales Promotion

Trade Sales Promotion

Sales PromotionSales PromotionTargetsTargets

Sales PromotionSales PromotionTargetsTargets

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Uses of Sales PromotionUses of Sales PromotionImmediate PurchasesImmediate Purchases

Increase TrialIncrease Trial

Boost consumer inventoryBoost consumer inventory

Encourage repurchaseEncourage repurchase

Increase ad effectivenessIncrease ad effectiveness

Encourage brand switchingEncourage brand switching

UsesUsesofof

Sales Sales PromotionPromotion

UsesUsesofof

Sales Sales PromotionPromotion

Encourage brand loyaltyEncourage brand loyalty

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Objectives of Sales PromotionObjectives of Sales Promotion11

Type of BuyerType of Buyer Type of BuyerType of Buyer

Loyal CustomersLoyal Customers

Competitor’sCustomersCompetitor’sCustomers

Brand SwitchersBrand Switchers

Price BuyersPrice Buyers

Desired ResultsDesired Results Desired ResultsDesired Results

•Reinforce behavior• Increase consumption•Change timing

•Reinforce behavior• Increase consumption•Change timing

•Break loyalty•Persuade to switch•Break loyalty•Persuade to switch

•Persuade to buy your brand more often•Persuade to buy your brand more often

•Appeal with low prices•Supply added value

•Appeal with low prices•Supply added value

Sales PromotionSales PromotionExamples Examples

Sales PromotionSales PromotionExamples Examples

•Loyalty marketing•Bonus packs•Loyalty marketing•Bonus packs

•Sampling•Sweepstakes, contests, premiums

•Sampling•Sweepstakes, contests, premiums

•Price-lowering promotion•Trade deals

•Price-lowering promotion•Trade deals

•Coupons, price-offpackages, refunds•Trade deals

•Coupons, price-offpackages, refunds•Trade deals



Discuss the most common forms Discuss the most common forms of consumer sales promotion.of consumer sales promotion.


Tools for Tools for Consumer Sales PromotionConsumer Sales Promotion

Coupons and RebatesCoupons and Rebates

PremiumsPremiums

Loyalty Marketing ProgramsLoyalty Marketing Programs

Contests & SweepstakesContests & Sweepstakes

SamplingSampling

Point-of-Purchase PromotionPoint-of-Purchase Promotion

Popular ToolsPopular Toolsforfor

Consumer SalesConsumer SalesPromotionPromotion

Popular ToolsPopular Toolsforfor

Consumer SalesConsumer SalesPromotionPromotion

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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 product.

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.

An extra item offered to the consumer, usually in exchange

for some proof of purchase.


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LoyaltyMarketingProgram

LoyaltyMarketingProgram

FrequentBuyer

Program

FrequentBuyer

Program

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.

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.


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ContestContest

SweepstakesSweepstakes

Promotions that require skill or ability to compete for prizes.

Promotions that require skill or ability to compete for prizes.

Promotions that depend on chance or luck, with

free participation.

Promotions that depend on chance or luck, with

free participation.


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SamplingSampling A promotional program that allow

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

A promotional program that allow the consumer the opportunity to try a

product or service for free.


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SamplingSampling

Methodsof

Sampling

Methodsof

Sampling

Direct mailDirect mail

Door-to-door delivery

Door-to-door delivery

Packaging with another productPackaging with another product

Retail store demonstrationRetail store

demonstration

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Goals ofGoals of Point-of-PurchasePoint-of-Purchase

DisplaysDisplays

Goals ofGoals of Point-of-PurchasePoint-of-Purchase

DisplaysDisplays

Build traffic Build traffic

Advertise the productAdvertise the product

Induce impulse buyingInduce impulse buying

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Free merchandiseFree merchandise

SweepstakesSweepstakes

Free shippingFree shipping

CouponsCoupons

EffectiveTypes ofOn-LineSales

Promotion

EffectiveTypes ofOn-LineSales

Promotion

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Learning Objective Learning Objective

List the most common forms List the most common forms of trade sales promotion.of trade sales promotion.

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Tools for Trade Sales PromotionTools for Trade Sales Promotion

Trade AllowancesTrade Allowances

Push MoneyPush Money

TrainingTraining

Free MerchandiseFree Merchandise

Store DemonstrationStore Demonstration

Conventions & Trade ShowsConventions & Trade Shows

Unique ToolsUnique Toolsforfor

Trade SalesTrade SalesPromotionPromotion

Unique ToolsUnique Toolsforfor

Trade SalesTrade SalesPromotionPromotion

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Trade AllowanceTrade Allowance33

A price reduction offered

by manufacturers to

intermediaries, such as

wholesalers and retailers.


Push MoneyPush Money33

Money offered to channel

intermediaries to encourage

them to “push” products--

that is, to encourage other

members of the channel to

sell the products.


The Role of The Role of Trade Sales PromotionTrade Sales Promotion

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Improve trade relations

Gain new distributors

Build or reducedealer inventories

Obtain support forconsumer sales promotions



Describe personal selling.Describe personal selling.

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Advantages of Personal SellingAdvantages 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 in obtaining sales and gaining satisfied customers

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Personal SellingPersonal Selling

Customers are concentrated

Customers are concentrated

There are few customersThere are few customers

Product is technically complex

Product is technically complex

Product is custom madeProduct is custom made

Product has a high valueProduct has a high value

Personal Selling is more important if...

Customers are geographically dispersed

Customers are geographically dispersed

There are many customersThere are many customers

Product is simple to understand

Product is simple to understand

Product is standardizedProduct is standardized

Product has a low valueProduct has a low value

Advertising & Sales Promotion are more important if...

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Discuss the key differences Discuss the key differences between relationship selling between relationship selling

and traditional selling.and traditional selling.

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Relationship SellingRelationship Selling

A sales practice that

involves building,

maintaining, and enhancing

interactions with customers

in order to develop long-

term satisfaction through

mutually beneficial

partnerships.

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Relationship SellingRelationship Selling

Focus:Focus:

BuildingBuilding

MutualMutual

TrustTrust

Long-TermLong-TermValue-Added Value-Added Benefits to Benefits to

BuyerBuyer

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Relationship Selling Relationship Selling vs. Traditional Sellingvs. Traditional Selling

Sell advice, assistance, counsel Sell advice, assistance, counsel Sell products

TraditionalTraditionalPersonal SellingPersonal Selling Relationship SellingRelationship Selling

Focus on closing salesFocus on closing sales

Limited sales planningLimited sales planning

Discuss productDiscuss product

Assess “Product-specific” needsAssess “Product-specific” needs

“Lone wolf” approach“Lone wolf” approach

Pricing/product focusPricing/product focus

Short-term sales follow-up Short-term sales follow-up

Focus on customer’s bottom lineFocus on customer’s bottom line

Sales planning is top prioritySales planning is top priority

Build problem-solving environmentBuild problem-solving environment

Conduct discovery in scope of operationsConduct discovery in scope of operations

Team approachTeam approach

Profit impact and strategic benefit focusProfit impact and strategic benefit focus

Long-term sales follow-up Long-term sales follow-up

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List the steps in the selling process.List the steps in the selling process.


Sales ProcessSales Process

The set of steps a

salesperson goes through

in a particular organization

to sell a particular

product or service.

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Steps in the Selling ProcessSteps in the Selling Process66

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

Basic StepsBasic Stepsin thein the

Personal SellingPersonal SellingProcessProcess

Basic StepsBasic Stepsin thein the

Personal SellingPersonal SellingProcessProcess


Generating LeadsGenerating Leads

Cold CallingCold CallingAdvertisingAdvertising PublicityPublicity Direct Mail/TelemarketingDirect Mail/

Telemarketing

Trade Shows/Conventions

Trade Shows/Conventions

Web Sites/Internet

Web Sites/Internet ReferralsReferrals NetworkingNetworking

Company Records

Company Records

Sources ofSources ofSales LeadsSales LeadsSources ofSources of

Sales LeadsSales Leads

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Cold CallingCold 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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Qualifying LeadsQualifying Leads

Recognized NeedRecognized Need

Buying PowerBuying Power

Receptivity & Accessibility

Receptivity & Accessibility

Characteristics ofCharacteristics ofQualified LeadsQualified Leads

Characteristics ofCharacteristics ofQualified LeadsQualified Leads

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Probing NeedsProbing Needs

Product or serviceProduct or service

Salesperson must knoweverything

about...

Salesperson must knoweverything

about...

Customers and their needsCustomers and their needs

CompetitionCompetition

IndustryIndustry

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Needs AssessmentNeeds 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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Developing and Developing and Proposing SolutionsProposing Solutions

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Sales ProposalSales Proposal

Sales PresentationSales Presentation


Handling ObjectionsHandling Objections66

Handling Handling ObjectionsObjections

Handling Handling ObjectionsObjections

Use the objection to close the sale

Use the objection to close the sale

Anticipate specific objections

Anticipate specific objections

View objections as requests for information

View objections as requests for information


Closing the SaleClosing the Sale66

Closing Closing the Salethe Sale

Closing Closing the Salethe Sale

NegotiateNegotiate

Keep an open mindKeep an open mind

Look for customer signals

Look for customer signals


Following UpFollowing Up66

ResponsibilitiesResponsibilitiesinin

Following UpFollowing Up

ResponsibilitiesResponsibilitiesinin

Following UpFollowing Up

Employees are trainedEmployees are trained

Goods or service performas promised

Goods or service performas promised

Ensure delivery schedules are metEnsure delivery

schedules are met



Describe the functions Describe the functions of sales management.of sales management.

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Sales Management Sales Management ResponsibilitiesResponsibilities

Evaluate sales forceEvaluate sales force

Compensate and motivatesales force

Compensate and motivatesales force

Recruit and trainsales force

Recruit and trainsales force

Determine sales force structure

Determine sales force structure

Define sales goals andsales process

Define sales goals andsales process

Tasks of Tasks of Sales ManagementSales Management

Tasks of Tasks of Sales ManagementSales Management

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Defining Sales GoalsDefining Sales Goals77

ClearClear

Sales GoalsShould Be...Sales GoalsShould Be...

PrecisePrecise

MeasurableMeasurable

Time SpecificTime Specific


QuotaQuota

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 StructureSales Force Structure77

CommonCommonSalesSales

OrganizationOrganizationStructuresStructures

CommonCommonSalesSales

OrganizationOrganizationStructuresStructures

Individual client or account

Individual client or account

Market or IndustryMarket or Industry

Marketing FunctionMarketing Function

Product LineProduct Line

Geographic RegionGeographic Region


Training the Sales ForceTraining the Sales Force77

Training Training includes...includes...

Training Training includes...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


Compensation PlansCompensation Plans77

CommissionCommission

CombinationPlans

CombinationPlans

SalarySalary

BasicBasicCompensation Compensation

MethodsMethods

BasicBasicCompensation Compensation

MethodsMethods


Compensation PlansCompensation Plans77

StraightCommission

StraightCommission

StraightSalary

StraightSalary

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

The salesperson receives a salary regardless of sales productivity.

The salesperson receives a salary regardless of sales productivity.


Effective Sales LeadersEffective Sales Leaders77

Effective Sales LeadersEffective Sales Leaders......Effective Sales LeadersEffective Sales Leaders......

Are assertive Are assertive

Possess ego drivePossess ego drive

Possess ego strengthPossess ego strength

Take risksTake risks

Are innovativeAre innovative

Have a sense of urgencyHave a sense of urgency

Are empatheticAre empathetic


PerformancePerformanceMeasuresMeasures

PerformancePerformanceMeasuresMeasures

Evaluating the Sales ForceEvaluating 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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The Impact of Technology The Impact of Technology on Personal Sellingon Personal Selling

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Laptop computer linkLaptop computer link

Mobile telephonesMobile telephones

PagersPagers

Personal data assistantsPersonal data assistants

E-MailE-Mail

InternetInternet

Sales ForceSales ForceAutomationAutomationSales ForceSales ForceAutomationAutomation

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Chapter 16 Version 6e 53

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