Sales Promotion and Personal Selling Chapter 16 Sales Promotion and Personal Selling Sales Promotion and Personal Selling

Objectives Define and state the objectives of sales promotion. Chapter 16 Sales Promotion and Personal Selling Objectives 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. Discuss the key differences between relationship selling and traditional selling. List the steps in the selling process. Describe the functions of sales management.

Chapter 16 Sales Promotion and Personal Selling Sales Promotion 1 Marketing communication activities, in which a short-term incentive motivates a purchase. Advertising, personal selling, and public relations are not included in Sales Promotion. On Line Online Clothing Stores Would 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 http://www.onlineclothingstores.com http://www1.coolsavings.com

Sales Promotion Target Markets Chapter 16 Sales Promotion and Personal Selling Sales Promotion Target Markets 1 Consumer Sales Promotion Trade Sales Promotion

Uses of Sales Promotion Chapter 16 Sales Promotion and Personal Selling Uses of Sales Promotion 1 Immediate purchases Increase trial Boost consumer inventory Encourage repurchase Increase ad effectiveness Encourage brand switching Encourage brand loyalty

Objectives of Sales Promotion Chapter 16 Sales Promotion and Personal Selling Objectives of Sales Promotion 1 Type of Buyer Loyal Customers Competitor’s Customers Brand Switchers Price Buyers Desired Results Reinforce behavior Increase consumption Change 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

Tools for Consumer Sales Promotion Chapter 16 Sales Promotion and Personal Selling Tools for Consumer Sales Promotion 2 Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion

Tools for Consumer Sales Promotion Chapter 16 Sales Promotion and Personal Selling Tools for Consumer Sales Promotion 2 Coupon Rebate Premium 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. A certificate that entitles consumers to an immediate price reduction.

Tools for Consumer Sales Promotion Chapter 16 Sales Promotion and Personal Selling Tools for Consumer Sales Promotion 2 Loyalty Marketing Program Frequent Buyer 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.

Tools for Consumer Sales Promotion Chapter 16 Sales Promotion and Personal Selling Tools for Consumer Sales Promotion 2 Ruffles 3-D Contest Sweepstakes Promotions that require skill or ability to compete for prizes. Promotions that depend on chance or luck, with free participation. On Line Sweepstakes Online How 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 http://www.sweepstakesonline.com

Tools for Consumer Sales Promotion Chapter 16 Sales Promotion and Personal Selling Tools for Consumer Sales Promotion 2 Pizza Hut Sampling A promotional program that allows the consumer the opportunity to try a product or service for free. Methods of Sampling Direct mail Door-to-door delivery Packaging with another product Retail store demonstration

Tools for Consumer Sales Promotion Chapter 16 Sales Promotion and Personal Selling Tools for Consumer Sales Promotion 2 Goals of Point-of-Purchase Displays Build traffic Advertise the product Induce impulse buying

Tools for Consumer Sales Promotion Chapter 16 Sales Promotion and Personal Selling Tools for Consumer Sales Promotion 2 Free merchandise Sweepstakes Free shipping Coupons Effective Types of On-Line Sales Promotion On Line Burger King (http://www.burgerking.com/bkrewards) Philip Morris Check 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 e-mail Philip Morris for more information on coupons and promotions. Is one loyalty program more ethical than the other? Why or why not? Upromote.com How 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 http://www.burgerking.com http://www.philipmorris.com http://www.upromote.com

Tools for Trade Sales Promotion Chapter 16 Sales Promotion and Personal Selling Tools for Trade Sales Promotion 3 Trade Allowances Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows

The Role of Trade Sales Promotion Chapter 16 Sales Promotion and Personal Selling The Role of Trade Sales Promotion 3 Improve trade relations Gain new distributors Build or reduce dealer inventories Obtain support for consumer sales promotions

Advantages of Personal Selling Chapter 16 Sales Promotion and Personal Selling Advantages of Personal Selling 4 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 method to obtain sales and gain satisfied customers

Personal Selling 4 Customers are concentrated There are few customers Chapter 16 Sales Promotion and Personal Selling Personal Selling 4 Customers are concentrated There are few customers Product is technically complex Product is custom made Product has a high value Personal Selling is more important if... Customers are geographically dispersed There are many customers Product is simple to understand Product is standardized Product has a low value Advertising & Sales Promotion are more important if...

Chapter 16 Sales Promotion and Personal Selling Relationship Selling 5 Dodge A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.

Relationship Selling vs. Traditional Selling Chapter 16 Sales Promotion and Personal Selling Relationship Selling vs. Traditional Selling 5 Sell advice, assistance, counsel Sell products Traditional Personal Selling 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 customer’s 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

Chapter 16 Sales Promotion and Personal Selling Sales Process 6 The set of steps a salesperson goes through in a particular organization to sell a particular product or service.

Steps in the Selling Process Chapter 16 Sales Promotion and Personal Selling Steps in the Selling Process 6 Generate Leads Qualify Leads Probe Customer Needs Develop Solutions Handle Objections Close the Sale Follow Up

Time Spent in Key Steps of Selling Process Chapter 16 Sales Promotion and Personal Selling Time Spent in Key Steps of Selling Process 6 Key Selling Steps Traditional Selling Relationship Generate Leads High Low Qualify Leads Probe Needs Develop Solutions Handle Objections Close the sale Follow-up

Generating Leads 6 Sources of Sales Leads Cold Calling Advertising Chapter 16 Sales Promotion and Personal Selling Generating Leads 6 Cold Calling Advertising Publicity Direct Mail/ Telemarketing Trade Shows/ Conventions Internet Web Site Referrals Networking Company Records Sources of Sales Leads On Line GoLeads Can 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? ZapData Would 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 http://www.goleads.com http://www.zapdata.com

Chapter 16 Sales Promotion and Personal Selling Cold Calling 6 A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial status.

Qualifying Leads 6 Recognized Need Buying Power Receptivity & Chapter 16 Sales Promotion and Personal Selling Qualifying Leads 6 Recognized Need Buying Power Receptivity & Accessibility Characteristics of Qualified Leads On Line http://www.hoovers.com http://www.dnb.com

Chapter 16 Sales Promotion and Personal Selling Needs Assessment 6 A determination of the customer’s specific needs and wants and the range of options a customer has for satisfying them.

Customers and their needs Chapter 16 Sales Promotion and Personal Selling Probing Needs 6 Product or service Customers and their needs Competition Industry Salesperson must know everything about... On Line Hoover’s Online Dun & Bradstreet Pick 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”?

Developing and Proposing Solutions Chapter 16 Sales Promotion and Personal Selling Developing and Proposing Solutions 6 Sales Proposal Sales Presentation

Handling Objections 6 Handling Objections View objections as Chapter 16 Sales Promotion and Personal Selling Handling Objections 6 Handling Objections Use the objection to close the sale Anticipate specific objections View objections as requests for information

Look for customer signals Chapter 16 Sales Promotion and Personal Selling Closing the Sale 6 Closing the Sale Negotiate Keep an open mind Look for customer signals

Goods or service perform Ensure delivery schedules are met Chapter 16 Sales Promotion and Personal Selling Following Up 6 Responsibilities in Following Up Employees are trained Goods or service perform as promised Ensure delivery schedules are met

Sales Management Responsibilities Chapter 16 Sales Promotion and Personal Selling Sales Management Responsibilities 7 Evaluate sales force Compensate and motivate sales force Recruit and train Determine sales force structure Define sales goals and sales process Tasks of Sales Management

Defining Sales Goals 7 Sales Goals Should Be... Clear Precise Chapter 16 Sales Promotion and Personal Selling Defining Sales Goals 7 Clear Precise Measurable Time Specific Sales Goals Should Be...

Chapter 16 Sales Promotion and Personal Selling Quota 7 A statement of the individual salesperson’s sales objectives, usually based on sales volume alone but sometimes including key accounts.

Individual client or account Chapter 16 Sales Promotion and Personal Selling Sales Force Structure 7 Common Sales Organization Structures Individual client or account Market or Industry Marketing Function Product Line Geographic Region

Training the Sales Force Chapter 16 Sales Promotion and Personal Selling Training the Sales Force 7 Training includes... Nonselling duties Industry and customer characteristics Product knowledge Selling techniques Company policies and practice

Compensation Plans: Basic Methods Chapter 16 Sales Promotion and Personal Selling Compensation Plans: Basic Methods 7 Commission Salary Combination Plans On Line Mary Kay Cosmetics What 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 http://www.marykay.com

The salesperson receives a salary regardless of sales productivity. Chapter 16 Sales Promotion and Personal Selling Compensation Plans 7 Straight Commission Salary The salesperson is paid some percentage when a sale is made. The salesperson receives a salary regardless of sales productivity.

Effective Sales Leaders Chapter 16 Sales Promotion and Personal Selling Effective Sales Leaders 7 Effective Sales Leaders... Are assertive Possess ego drive Possess ego strength Take risks Are innovative Have a sense of urgency Are empathetic

Evaluating the Sales Force: Performance Measures Chapter 16 Sales Promotion and Personal Selling Evaluating the Sales Force: Performance Measures 7 Contribution to Profit Calls per Order Sales or Profits per Call Call Percentage Achieving Goals Sales Volume

The Impact of Technology on Personal Selling Chapter 16 Sales Promotion and Personal Selling The Impact of Technology on Personal Selling 7 Laptop computer link Cell phones Pagers Personal data assistants E-Mail Internet Sales Force Automation

Do visit www.pptmart.com Chapter 16 Sales Promotion and Personal Selling Do visit www.pptmart.com