Presentation on theme: "Sales Promotion and Personal Selling"— Presentation transcript:
1 Sales Promotion and Personal Selling Chapter 16Sales Promotion and Personal SellingSales Promotion and Personal Selling
2 Objectives Define and state the objectives of sales promotion. Chapter 16Sales Promotion and Personal SellingObjectivesDefine 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.Discuss the key differences between relationship selling and traditional selling.List the steps in the selling process.Describe the functions of sales management.
3 Chapter 16Sales Promotion and Personal SellingSales Promotion1Marketing communication activities, in which a short-term incentive motivates a purchase.Advertising, personal selling, and public relations are not included in Sales Promotion.On LineOnline Clothing StoresWould you be willing to register at an on-line coupon site in order to get information on discounts? Compare what information you can get for free at Online Clothing Stores versus what you can get at Coolsavings. Which would you be more inclined to use? If you want to find other on-line coupon sites, type “online coupons” into the Alta Vista search engine.On Line
4 Sales Promotion Target Markets Chapter 16Sales Promotion and Personal SellingSales Promotion Target Markets1Consumer Sales PromotionTradeSales Promotion
5 Uses of Sales Promotion Chapter 16Sales Promotion and Personal SellingUses of Sales Promotion1Immediate purchasesIncrease trialBoost consumer inventoryEncourage repurchaseIncrease ad effectivenessEncourage brand switchingEncourage brand loyalty
6 Objectives of Sales Promotion Chapter 16Sales Promotion and Personal SellingObjectives of Sales Promotion1Type of BuyerLoyal CustomersCompetitor’sCustomersBrand SwitchersPrice BuyersDesired ResultsReinforce behaviorIncrease consumptionChange timingBreak loyaltyPersuade to switchPersuade to buy your brand more oftenAppeal with low pricesSupply added valueSales Promotion ExamplesLoyalty marketingBonus packsSamplingSweepstakes, contests, premiumsPrice-lowering promotionTrade dealsCoupons, price-off packages, refunds
7 Tools for Consumer Sales Promotion Chapter 16Sales Promotion and Personal SellingTools for Consumer Sales Promotion2Coupons and RebatesPremiumsLoyalty Marketing ProgramsContests & SweepstakesSamplingPoint-of-Purchase Promotion
8 Tools for Consumer Sales Promotion Chapter 16Sales Promotion and Personal SellingTools for Consumer Sales Promotion2CouponRebatePremiumA cash refund given for thepurchase of a product duringa specific product.An extra item offered to the consumer, usually in exchange for some proof of purchase.A certificate that entitles consumers to an immediate price reduction.
9 Tools for Consumer Sales Promotion Chapter 16Sales Promotion and Personal SellingTools for Consumer Sales Promotion2LoyaltyMarketingProgramFrequentBuyerA promotional program designedto build long-term, mutually beneficial relationships betweena company and key customers.A loyalty program in which loyal consumers are rewarded formaking multiple purchases.
10 Tools for Consumer Sales Promotion Chapter 16Sales Promotion and Personal SellingTools for Consumer Sales Promotion2Ruffles 3-DContestSweepstakesPromotions that require skill or ability to compete for prizes.Promotions that depend on chance or luck, with free participation.On LineSweepstakes OnlineHow do on-line sweepstakes sites compare to the kind of sweepstakes entries you receive in the mail? Visit the popular sweepstakes site Sweepstakesonline.com. Do any of the contests interest you? Do you think the pitches on-line are ethical? Why or why not?On Line
11 Tools for Consumer Sales Promotion Chapter 16Sales Promotion and Personal SellingTools for Consumer Sales Promotion2Pizza HutSamplingA promotional program that allows the consumer the opportunity to try a product or service for free.MethodsofSamplingDirect mailDoor-to-door deliveryPackaging with another productRetail store demonstration
12 Tools for Consumer Sales Promotion Chapter 16Sales Promotion and Personal SellingTools for Consumer Sales Promotion2Goals ofPoint-of-PurchaseDisplaysBuild trafficAdvertise the productInduce impulse buying
13 Tools for Consumer Sales Promotion Chapter 16Sales Promotion and Personal SellingTools for Consumer Sales Promotion2Free merchandiseSweepstakesFree shippingCouponsEffectiveTypes ofOn-LineSales PromotionOn LineBurger King (http://www.burgerking.com/bkrewards)Philip MorrisCheck out Burger King’s BK Rewards program on its Web page. Do the proposed rewards seem to fit with the company’s target market? Compare the program with Marlboro Miles. You may need to Philip Morris for more information on coupons and promotions. Is one loyalty program more ethical than the other? Why or why not?Upromote.comHow can Upromote.com help you with your sales promotion efforts? What kind of marketing budget would you need to take advantage of its services? What kind of company would be best served by Upromote.com?On Line
14 Tools for Trade Sales Promotion Chapter 16Sales Promotion and Personal SellingTools for Trade Sales Promotion3Trade AllowancesPush MoneyTrainingFree MerchandiseStore DemonstrationConventions & Trade Shows
15 The Role of Trade Sales Promotion Chapter 16Sales Promotion and Personal SellingThe Role of Trade Sales Promotion3Improve trade relationsGain new distributorsBuild or reducedealer inventoriesObtain support forconsumer sales promotions
16 Advantages of Personal Selling Chapter 16Sales Promotion and Personal SellingAdvantages of Personal Selling4Provides a detailed explanation or demonstration of productMessage can be varied to fit the needs of each prospective customerCan be directed to specific qualified prospectsCosts can be controlled by adjusting sales force sizeMost effective method to obtain sales and gain satisfied customers
17 Personal Selling 4 Customers are concentrated There are few customers Chapter 16Sales Promotion and Personal SellingPersonal Selling4Customers areconcentratedThere are few customersProduct is technically complexProduct is custom madeProduct has a high valuePersonal Selling is more important if...Customers aregeographically dispersedThere are many customersProduct is simple to understandProduct is standardizedProduct has a low valueAdvertising & Sales Promotion are more important if...
18 Chapter 16Sales Promotion and Personal SellingRelationship Selling5DodgeA sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.
19 Relationship Selling vs. Traditional Selling Chapter 16Sales Promotion and Personal SellingRelationship Selling vs. Traditional Selling5Sell advice, assistance, counselSell productsTraditionalPersonal SellingFocus on closing salesLimited sales planningDiscuss productAssess “Product-specific”needs“Lone wolf” approachPricing/product focusShort-term sales follow-upFocus on customer’s bottom lineSales planning is top priorityBuild problem-solving environmentConduct discovery in scope ofoperationsTeam approachProfit impact and strategicbenefit focusLong-term sales follow-upRelationship Selling
20 Chapter 16Sales Promotion and Personal SellingSales Process6The set of steps a salesperson goes through in a particular organization to sell a particularproduct or service.
21 Steps in the Selling Process Chapter 16Sales Promotion and Personal SellingSteps in the Selling Process6Generate LeadsQualify LeadsProbe Customer NeedsDevelop SolutionsHandle ObjectionsClose the SaleFollow Up
22 Time Spent in Key Steps of Selling Process Chapter 16Sales Promotion and Personal SellingTime Spent in Key Steps of Selling Process6Key Selling StepsTraditionalSellingRelationshipGenerate LeadsHighLowQualify LeadsProbe NeedsDevelop SolutionsHandle ObjectionsClose the saleFollow-up
23 Generating Leads 6 Sources of Sales Leads Cold Calling Advertising Chapter 16Sales Promotion and Personal SellingGenerating Leads6Cold CallingAdvertisingPublicityDirect Mail/TelemarketingTrade Shows/ConventionsInternet Web SiteReferralsNetworkingCompany RecordsSources of Sales LeadsOn LineGoLeadsCan personal selling translate into the Internet space? Go to GoLeads to find out. How does this company’s suggested way of generating and qualifying leads compare to the information you read in the text? Try a free search. Do you get enough information to determine whether the monthly subscription is worth it?ZapDataWould it make sense for a company to outsource its sales lead management? When? Visit ZapData.com to see how it pitches its services to marketing managers and other businesspeople. Compare it with GoLeads. Which company is a more comprehensive marketing tool? List the reasons you think as you do.On Line
24 Chapter 16Sales Promotion and Personal SellingCold Calling6A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial status.
25 Qualifying Leads 6 Recognized Need Buying Power Receptivity & Chapter 16Sales Promotion and Personal SellingQualifying Leads6Recognized NeedBuying PowerReceptivity &AccessibilityCharacteristics ofQualified LeadsOn Line
26 Chapter 16Sales Promotion and Personal SellingNeeds Assessment6A determination of the customer’s specific needs and wants and the range of options a customer has for satisfying them.
27 Customers and their needs Chapter 16Sales Promotion and Personal SellingProbing Needs6Product or serviceCustomers and their needsCompetitionIndustrySalespersonmust knoweverythingabout...On LineHoover’s OnlineDun & BradstreetPick a company and try to find out as much information as you can about it using Hoover’s On-line and Dun & Bradstreet. Which database gave you the best and most information about your “lead”?
28 Developing and Proposing Solutions Chapter 16Sales Promotion and Personal SellingDeveloping and Proposing Solutions6Sales ProposalSales Presentation
29 Handling Objections 6 Handling Objections View objections as Chapter 16Sales Promotion and Personal SellingHandling Objections6HandlingObjectionsUse the objection to close the saleAnticipate specific objectionsView objections asrequests for information
30 Look for customer signals Chapter 16Sales Promotion and Personal SellingClosing the Sale6Closing the SaleNegotiateKeep an open mindLook for customer signals
31 Goods or service perform Ensure delivery schedules are met Chapter 16Sales Promotion and Personal SellingFollowing Up6ResponsibilitiesinFollowing UpEmployees are trainedGoods or service performas promisedEnsure delivery schedules are met
32 Sales Management Responsibilities Chapter 16Sales Promotion and Personal SellingSales Management Responsibilities7Evaluate sales forceCompensate and motivatesales forceRecruit and trainDetermine salesforce structureDefine sales goals andsales processTasks ofSales Management
33 Defining Sales Goals 7 Sales Goals Should Be... Clear Precise Chapter 16Sales Promotion and Personal SellingDefining Sales Goals7ClearPreciseMeasurableTime SpecificSales GoalsShould Be...
34 Chapter 16Sales Promotion and Personal SellingQuota7A statement of the individual salesperson’s sales objectives, usually based on sales volume alone but sometimes including key accounts.
35 Individual client or account Chapter 16Sales Promotion and Personal SellingSales Force Structure7CommonSalesOrganizationStructuresIndividual client or accountMarket or IndustryMarketing FunctionProduct LineGeographic Region
36 Training the Sales Force Chapter 16Sales Promotion and Personal SellingTraining the Sales Force7Training includes...Nonselling dutiesIndustry and customercharacteristicsProduct knowledgeSelling techniquesCompany policies and practice
37 Compensation Plans: Basic Methods Chapter 16Sales Promotion and Personal SellingCompensation Plans: Basic Methods7CommissionSalaryCombinationPlansOn LineMary Kay CosmeticsWhat can you find out about Mary Kay’s sales network from the company Web site? What can you find out about the compensation of Mary Kay’s sales force? How else does the company use the site to promote itself to future salespeople?On Line
38 The salesperson receives a salary regardless of sales productivity. Chapter 16Sales Promotion and Personal SellingCompensation Plans7StraightCommissionSalaryThe salesperson is paid some percentage when a sale is made.The salesperson receives a salary regardless of sales productivity.
39 Effective Sales Leaders Chapter 16Sales Promotion and Personal SellingEffective Sales Leaders7Effective Sales Leaders...Are assertivePossess ego drivePossess ego strengthTake risksAre innovativeHave a sense of urgencyAre empathetic
40 Evaluating the Sales Force: Performance Measures Chapter 16Sales Promotion and Personal SellingEvaluating the Sales Force: Performance Measures7Contribution to ProfitCalls per OrderSales or Profits per CallCall Percentage Achieving GoalsSales Volume
41 The Impact of Technology on Personal Selling Chapter 16Sales Promotion and Personal SellingThe Impact of Technology on Personal Selling7Laptop computer linkCell phonesPagersPersonal data assistantsInternetSales ForceAutomation
42 Do visit www.pptmart.com Chapter 16 Sales Promotion and Personal SellingDo visit