1. Marketing 16 Sales Promotion & Personal Selling

2. 16.1 Sales Promotions and Personal selling -- 16 Sales Promotion Objectives Sales Promotion Objectives Types Types Personal Selling Personal Selling Sales Management Sales Management

3. Sales promotion What is the goal? What is the goal? –Behavior –Action –Reinforce loyalty –Increase consumption –Product trial or switch –Increase purchase frequency See Ex. 16.1, p. 545

4. 16.3 Consumer Sales Promotion Tools Coupons Coupons –$/¢ off, 2 for 1, in-store, grocery, mail Rebates Rebates –Delay; Mail; Data; Ltd submission (2%) –Some manufacturers ignore or make it difficult to receive rebate Premiums (lagniappe) Premiums (lagniappe) –Prize inside Loyalty Marketing Programs Loyalty Marketing Programs –Frequent flyer, buyer, sleeper, eater

5. 16.4 Consumer Sales Promotion Tools Contests and Sweepstakes Contests and Sweepstakes Sampling Sampling P-O-P P-O-P On-line sales promotions On-line sales promotions –Collect data, encourage e-commerce

6. 16.2 Sales Promotion Objectives (Consumer) Encourage product trial Encourage product trial Encourage continued buying and usage Encourage continued buying and usage Encourage purchase and usage of related products Encourage purchase and usage of related products Support IMC strategy Support IMC strategy Build a marketing database Build a marketing database

7. 16.6 Trade Sales Promotion Tools Trade Allowances Trade Allowances –In exchange for performing some function Promotion, Storage Promotion, Storage Push Money Push Money Training Training Free merchandise Free merchandise Store demonstrations Store demonstrations Trade shows, conferences Trade shows, conferences

8. 16.5 Sales Promotion Objectives (Trade) Add channel partners Add channel partners Induce partners to carry more stock Induce partners to carry more stock Enhance channel support Enhance channel support Strengthen channel relationships Strengthen channel relationships

9. 16.7 Personal Selling What is it? What is it? –Direct communication between a sales rep and prospective buyer to influence purchase. When is it used? When is it used? –Complex & Expensive products –Few customers Advantages/disadvantages Advantages/disadvantages –Detailed and customized message –Limited, but accurate reach –Handle objections –Closing

10. Large Small Number and Dispersion of Customers Low High Buyers’ Information Needs Small Large Size and Importance of Purchase Little Much Postpurchase Service Required Low High Product Complexity Pull Push Distribution Strategy Pre-set Negotiated Pricing Policy Many Few Resources Available for Promotion Advertising Relatively Important Personal Selling Relatively Important

11. 16.8 What makes a good salesperson? Empathy: Understand/read customer Ego Drive: Inner need to persuade others Ego Strength: Self-assured (to deal with rejection) and Self-efficacy (control own success) Interpersonal Communication Skills (listening, asking questions, explain clearly) Enthusiasm (for yourself and customers)

12. Trade selling (Existing Customers) Type of Sales Job Missionary selling (Promotional) Technical selling (Highly technical products) New business selling (New Business, Rainmaker) Relatively Important Characteristics Relatively Less Important Characteristics Age, maturity, empathy, knowledge of customer and business methods Aggressiveness, technical ability, product knowledge, persuasiveness Youth, high energy and stamina, verbal skill, persuasiveness Empathy, knowledge of customers, maturity, previous sales experience Education, product and customer knowledge-- usually gained through training, intelligence Empathy, persuasiveness, aggressiveness, age Experience, age, maturity, aggressiveness, persuasiveness, persistence Customer knowledge, product knowledge, education, empathy

13. What to look for in hiring: (Not in Particular Order) Enthusiasm Organization Skills Ambition Goal Oriented Leadership Work Ethic Problem Solving Skills Persuasive Verbal Skills Sales Experience Not product specific

14. 16.9 Process of personal selling Generate leads Generate leads Qualify prospects Qualify prospects Approach --direct contact, establish rapport Approach --direct contact, establish rapport Customer needs analysis: Learn to ask questions & LISTEN!!!! Customer needs analysis: Learn to ask questions & LISTEN!!!! Presentation – develop and propose solutions Presentation – develop and propose solutions Handling objections Handling objections Closing the sale Closing the sale Follow-up Follow-up

15. 16.10 Personal selling and relationship marketing Shift from transaction point of view, focus on: Shift from transaction point of view, focus on: –Relationship or consultive selling

16. 16.11