1. Copyright Cengage Learning 2013 All Rights Reserved 1 Chapter 18: Sales Promotion and Personal Selling Designed & Prepared by Laura Rush B-books, Ltd. Introduction to

2. Copyright Cengage Learning 2013 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. Copyright Cengage Learning 2013 All Rights Reserved 3 Learning Outcomes Discuss the key differences between relationship selling and traditional selling List the steps in the selling process Describe the functions of sales management LO 5 LO 6 LO 7

4. 4 Sales Promotion Marketing activities, other than advertising, personal selling, and public relations, that stimulate consumer buying and dealer effectiveness. Copyright Cengage Learning 2013 All Rights Reserved

5. 5 Tools for Consumer Sales Promotion Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion Copyright Cengage Learning 2013 All Rights Reserved

6. 6 Loyalty Marketing Loyalty Marketing Program - A promotional program designed to build long-term, mutually beneficial relationships between a company and key customers. Frequent Buyer Program - A loyalty program in which loyal customers are rewarded for making multiple purchasers. Copyright Cengage Learning 2013 All Rights Reserved

7. 7 Contests and Sweepstakes 7 Online http://www.online-sweepstakes.com/ Contests - Promotions that require skill or ability to compete for prizes. Sweepstakes - Promotions that depend on chance or luck, with free participation. Copyright Cengage Learning 2013 All Rights Reserved

8. 8 Sampling A promotional program that allows the consumer the opportunity to try a product or service for free. Copyright Cengage Learning 2013 All Rights Reserved

9. 9 Point-of-Purchase Promotion Build traffic Advertise the product Induce impulse buying Copyright Cengage Learning 2013 All Rights Reserved

10. 10 Online Sales Promotion Free merchandise Sweepstakes Free shipping with purchases Coupons Effective Types of Online Sales Promotion Copyright Cengage Learning 2013 All Rights Reserved

11. 11 Trade Sales Promotion Trade Allowances Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows Copyright Cengage Learning 2013 All Rights Reserved

12. 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... Copyright Cengage Learning 2013 All Rights Reserved

13. 13 Relationship Selling Relationship (Consultative) Selling - A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnership. Copyright Cengage Learning 2013 All Rights Reserved

14. 14 Steps in the Selling Process Generate Leads Qualify Leads Probe Customer Needs Develop/Propose Solutions Handle Objections Close the Sale Follow Up Copyright Cengage Learning 2013 All Rights Reserved

15. 15 Sales Management Responsibilities Evaluate sales force Compensate and motivate sales force Recruit and train sales force Determine sales force structure Define sales goals and sales process Copyright Cengage Learning 2013 All Rights Reserved

16. 16 Defining Sales Goals Clear Precise Measurable Time Specific Sales Volume Market Share Profit Level Copyright Cengage Learning 2013 All Rights Reserved

17. 17 Quota A statement of the individual salesperson’s sales objectives, usually based on sales volume alone but sometimes including key accounts, new accounts, repeat sales, and specific products. Copyright Cengage Learning 2013 All Rights Reserved

18. 18 Sales Force Structure Individual client or account Market or industry Marketing function Product line Geographic region Copyright Cengage Learning 2013 All Rights Reserved

19. 19 Training the Sales Force Training includes... Nonselling duties Industry and customer characteristics Industry and customer characteristics Product knowledge Selling techniques Company policies and practice Copyright Cengage Learning 2013 All Rights Reserved

20. 20 Evaluating the Sales Force Contribution to profit Calls per order Sales or profits per call Call percentage achieving goals Sales volume Copyright Cengage Learning 2013 All Rights Reserved