Presentation on theme: "1 Lamb, Hair, McDaniel CHAPTER 18 Sales Promotion and Personal Selling."— Presentation transcript:
1 Lamb, Hair, McDaniel CHAPTER 18 Sales Promotion and Personal Selling
2 Sales Promotion Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase. Sales Promotion
3 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
4 Tools for Consumer Sales Promotion Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion
5 Tools for Consumer Sales Promotion 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.
6 Tools for Consumer Sales Promotion 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.
7 Tools for Consumer Sales Promotion Contests Promotions that require skill or ability to compete for prizes. Sweepstakes Promotions that depend on chance or luck, with free participation.
Tools for Consumer Sales Promotion Sampling A promotional program that allows the consumer the opportunity to try a product or service for free.
10 Online Sales Promotion Effective Types of Online Sales Promotion Free merchandise Sweepstakes Free shipping with purchases Coupons
11 Trade Sales Promotion Trade Allowances Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows
12 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...
13 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
14 Traditional Selling and Relationship SellingTraditional Personal Selling LO 5 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 customers 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 Selling
15 Steps in the Selling Process Qualifying Leads Approaching Customer Developing and proposing solutions Handling objections Closing the sale Generating Leads A Continuing Process
16 Powerful Presentations Be 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!
17 The Impact of Technology on Personal Selling Cell phones Laptops Pagers Electronic organizers Internet
Ch 18 Discussion Questions 1.What is sales promotion? Explain how various tools for consumer sales promotion influence behavior. 2.Explain how various tools for trade sales promotion affect the channel behavior. 3.What is personal selling? When should we use personal selling over sales promotion or advertising? 4.Differentiate between relationship selling and personal traditional selling. 5.Explain the steps involved in Personal Selling.