1. Sales Promotion and Personal Selling
Chapter 16
Sales Promotion and Personal Selling
Sales Promotion and Personal Selling

2. 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.

3. 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

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

5. 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

6. 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

7. Tools for Consumer Sales Promotion
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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

8. 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.

9. Tools for Consumer Sales Promotion
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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.

10. 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

11. 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

12. 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

13. 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 (
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 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?
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14. 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

15. The Role of Trade Sales Promotion
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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

16. Advantages of Personal Selling
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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

17. 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...

18. 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.

19. 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

20. 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.

21. 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

22. Time Spent in Key Steps of Selling Process
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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

23. 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

24. 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.

25. 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

26. 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.

27. Customers and their needs
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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”?

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

29. 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

30. 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

31. Goods or service perform Ensure delivery schedules are met
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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

32. Sales Management Responsibilities
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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

33. 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...

34. 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.

35. Individual client or account
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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

36. Training the Sales Force
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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

37. Compensation Plans: Basic Methods
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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

38. The salesperson receives a salary regardless of sales productivity.
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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.

39. Effective Sales Leaders
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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

40. 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

41. 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
Internet
Sales Force
Automation

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