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Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1 MKTG Designed by Amy McGuire, B-books, Ltd. Prepared.

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Presentation on theme: "Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1 MKTG Designed by Amy McGuire, B-books, Ltd. Prepared."— Presentation transcript:

1 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1 MKTG Designed by Amy McGuire, B-books, Ltd. Prepared by Deborah Baker, Texas Christian University Lamb, Hair, McDaniel Sales Promotion and Personal Selling 16 CHAPTER

2 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 2 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 LO 1 LO 2 LO 3 LO 4

3 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 3 Learning Outcomes Discuss the key differences between relationship selling and traditional selling List the steps in the selling process LO 6 LO 5

4 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 4 Define and state the objectives of sales promotion Sales Promotion LO 1

5 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 5 LO 1 Sales Promotion Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase. Sales Promotion

6 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 6 LO 1 Sales Promotion AdvertisingReason to buy Sales PromotionIncentive to buy

7 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 7 LO 1 Sales Promotion Consumer Sales Promotion Trade Sales Promotion Trade Sales Promotion Consumer market Marketing channel Drive immediate purchase Influence behavior Goal

8 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 8 LO 1 Objectives of Sales Promotion Type of Buyer Loyal Customers Competitors Customers Brand Switchers Price Buyers Desired 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 Promotion Examples Loyalty marketing Bonus packs Sampling Sweepstakes, contests, premiums Price-lowering promotion Trade deals Coupons, price-off packages, refunds Trade deals

9 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 9 REVIEW LEARNING OUTCOME LO 1 The Objectives of Sales Promotion

10 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 10 Discuss the most common forms of consumer sales promotion Tools for Consumer Sales Promotion LO 2

11 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 11 Tools for Consumer Sales Promotion LO 2 Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion

12 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 12 Tools for Consumer Sales Promotion LO 2 Coupon Rebate Premium 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.

13 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Premiums Premiums provide consumers with a reason to choose one brand over another.

14 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 14 Tools for Consumer Sales Promotion LO 2 Loyalty Marketing Program Loyalty Marketing 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. Frequent Buyer Program Frequent Buyer 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.

15 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 15 Tools for Consumer Sales Promotion LO 2 Contests Promotions that require skill or ability to compete for prizes. Sweepstakes Promotions that depend on chance or luck, with free participation. Online

16 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Contests like this one encourage consumers to purchase more

17 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 17 Sweepstakes rely on chance

18 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 18 Tools for Consumer Sales Promotion LO 2 Sampling A promotional program that allows the consumer the opportunity to try a product or service for free.

19 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Samples

20 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 20 Methods of Sampling LO 2 Direct mail Door-to-door delivery Packaging with another product Retail store demonstration

21 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 21 Point-of-Purchase Promotion LO 2 Build traffic Advertise the product Induce impulse buying

22 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 22 Point of Purchase

23 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 23 Online Sales Promotion LO 2 Effective Types of Online Sales Promotion Free merchandise Sweepstakes Free shipping with purchases Coupons

24 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 24 REVIEW LEARNING OUTCOME LO 2 Consumer Sales Promotion Coupons and rebates Premiums Loyalty marketing programs Contests Sampling P-O-P Online

25 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 25 List the most common forms of trade sales promotion Tools for Trade Sales Promotion LO 3

26 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 26 Trade Sales Promotion LO 3 Trade Allowances Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows

27 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 27 Trade Allowance LO 3 Trade Allowance A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers.

28 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 28 Push Money LO 3 Push Money Money offered to channel intermediaries to encourage them to push products-- that is, to encourage other members of the channel to sell the products.

29 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 29 Benefits of Trade Promotions LO 3 Help manufacturers gain new distribution Obtain wholesaler and retailer support for consumer sales promotions Build or reduce dealer inventories Improve trade relations

30 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 30 REVIEW LEARNING OUTCOME LO 3 Forms of Trade Sales Promotion

31 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 31 Describe personal selling Personal Selling LO 4

32 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 32 LO 4 Personal Selling Personal Selling is more important if... Customers are concentrated. Customers are concentrated. Product is technically complex. There are few customers. Product is custom made. Product has a high value. Customers are geographically dispersed. Customers are geographically dispersed. Product is simple to understand. There are many customers. Product is standardized. Product has a low value. Advertising & Sales Promotion are more important if...

33 Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 33 REVIEW LEARNING OUTCOME LO 4 Personal Selling 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 Personal Selling Advantages


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