Chapter 18: Sales Promotion
and Personal Selling
Prepared by Amit Shah, Frostburg State University
Designed by Eric Brengle, B-books, Ltd.
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
Learning Outcomes
LO1
Define and state the objectives of sales
promotion
LO2
Discuss the most common forms of consumer
sales promotion
LO3
List the most common forms of trade sales
promotion
LO4
Describe personal selling
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
Learning Outcomes
LO5
Discuss the key differences between relationship
selling and traditional selling
LO6
List the steps in the selling process
LO7
Describe the functions of sales management
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
Sales Promotion
LO1
Define and state the
objectives of sales promotion.
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Sales Promotion
Marketing activities, other than
advertising, personal selling,
and public relations, that
stimulate consumer buying
and dealer effectiveness.
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Sales Promotion
Advertising
Reason to buy
Sales Promotion
Incentive to buy
6
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Sales Promotion
Consumer
Consumer
Sales
Sales
Promotion
Promotion
Goal
Trade
Trade
Sales
Sales
Promotion
Promotion
Consumer market
Drive immediate purchase,
Influence behavior
Marketing channel
7
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
Objectives of Sales Promotion
Type of Buyer
Desired Results
Sales Promotion
Examples
Loyal
Customers
Reinforce behavior
Loyalty marketing
Increase consumption
Change purchase timing Bonus packs
Competitors
Customers
Break loyalty
Persuade to switch
Sampling
Sweepstakes,
contests, premiums
Brand
Switchers
Persuade to buy your
brand more often
Price-lowering
promotion
Trade deals
Price Buyers
Appeal with low
prices
Supply added value
Coupons, price-off
packages, refunds
Trade deals
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
LO1
Review Learning Outcome
The Objectives of Sales Promotion
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Tools for Consumer Sales Promotion
LO2
Discuss the most common forms
of consumer sales promotion.
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10
Tools for Consumer Sales
Promotion
Coupons
Coupons and
and Rebates
Rebates
Premiums
Premiums
Loyalty
Loyalty Marketing
Marketing Programs
Programs
Contests
Contests && Sweepstakes
Sweepstakes
Sampling
Sampling
Point-of-Purchase
Point-of-Purchase Promotion
Promotion
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11
Coupons, Rebates, and
Premiums
Coupon
Coupon
A
A certificate
certificate that
that entitles
entitles
consumers
consumers to
to an
an immediate
immediate
price
price reduction.
reduction.
Rebate
Rebate
A
A cash
cash refund
refund given
given for
for the
the
purchase
purchase of
of aa product
product during
during
aa specific
specific period.
period.
Premium
Premium
An
An extra
extra item
item offered
offered to
to the
the consumer,
consumer,
usually
usually in
in exchange
exchange
for
for some
some proof
proof of
of purchase.
purchase.
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12
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.
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13
Contests and Sweepstakes
Contests - Promotions that
require skill or ability to
compete for prizes.
Sweepstakes - Promotions that
depend on chance or luck,
with free participation.
[Link]
Online
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14
Sampling
A promotional program that
allows the consumer the
opportunity to try a product or
service for free.
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15
Methods of Sampling
Direct
Directmail
mail
Door-to-door
Door-to-door delivery
delivery
Packaging
Packagingwith
withanother
another product
product
Retail
Retail store
storedemonstration
demonstration
16
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Point-of-Purchase
Promotion
Build traffic
Advertise the product
Induce impulse buying
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17
Online Sales Promotion
Effective
EffectiveTypes
Typesof
ofOnline
OnlineSales
SalesPromotion
Promotion
Free merchandise
Sweepstakes
Free shipping with purchases
Coupons
18
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
LO2
Review Learning Outcome
Consumer Sales Promotion
Coupons and rebates
Premiums
Loyalty marketing programs
Contests and Sweepstakes
Sampling
P-O-P
Online
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19
Tools for Trade Sales Promotion
LO3
List the most common forms
of trade sales promotion.
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20
Trade Sales Promotion
Trade
Trade Allowances
Allowances
Push
Push Money
Money
Training
Training
Free
Free Merchandise
Merchandise
Store
Store Demonstration
Demonstration
Conventions
Conventions && Trade
Trade Shows
Shows
21
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Trade Allowance
A price reduction offered
by manufacturers
to intermediaries, such as
wholesalers and retailers.
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22
Push Money
Money offered to
channel intermediaries to encourage
them to push products that is,
to encourage other members of the
channel to sell the products.
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23
Benefits of Trade Promotions
Help manufacturers gain new distribution
Obtain wholesaler and retailer support for
consumer sales promotions
Build or reduce dealer inventories
Improve trade relations
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24
LO3
Review Learning Outcome
Forms of Trade Sales Promotion
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25
Personal Selling
LO4
Describe personal selling.
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26
Personal Selling
Personal Selling
is more important if...
Advertising & Sales Promotion
are more important if...
Product has a high value.
Product has a low value.
Product is custom made.
Product is standardized.
There are few customers.
There are many customers.
Product is
technically complex.
Product is
simple to understand.
Customers are
concentrated.
Customers are
geographically dispersed.
27
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
LO4
Review Learning Outcome
Personal Selling
Detailed explanation or demonstration
Variable sales message
Personal
Selling
Advantages
Directed to qualified prospects
Controllable adjustable selling costs
Effective at obtaining sale and gaining
customer satisfaction
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28
Relationship Selling
LO5
Discuss the key differences
between relationship selling
and traditional selling.
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29
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.
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30
Traditional Selling
and Relationship Selling
Traditional
Personal Selling
Relationship Selling
Sell products
Sell advice, assistance, counsel
Focus on closing sales
Focus on customers bottom line
Limited sales planning
Sales planning is top priority
Discuss product
Assess product-specific
needs
Lone wolf approach
Build problem-solving environment
Conduct discovery in scope of
customers operations
Team approach
Profit impact and strategic
benefit focus
Long-term sales follow-up
Pricing/product focus
Short-term sales follow-up
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31
LO5
Review Learning Outcome
Relationship Selling vs. Traditional Selling
Sales
Increases
Result
From
Creating
Value
Initial
Sales
Repeat
Sales
Successive
Sales
Traditional Sales
Relationship Sales
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32
Steps in the Selling Process
LO6
List the steps in the
selling process.
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33
Steps in the Selling Process
Generate
Generate Leads
Leads
Qualify
Qualify Leads
Leads
Probe
Probe Customer
Customer Needs
Needs
Develop/Propose
Develop/Propose Solutions
Solutions
Handle
Handle Objections
Objections
Close
Close the
the Sale
Sale
Follow
Follow Up
Up
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34
Time Spent in Key Steps of
Selling Process
Traditional
Selling
Relationship
Selling
Generate Leads
High
Low
Qualify Leads
Low
High
Probe Needs
Low
High
Develop Solutions
Low
High
Handle Objections
High
Low
Close the sale
High
Low
Follow-up
Low
High
Key Selling Steps
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
35
Generating Leads
Advertising
Advertising
Publicity
Publicity
Direct
DirectMail/
Mail/
Telemarketing
Telemarketing
Cold
ColdCalling
Calling
Internet
InternetWeb
Web
Site
Site
Referrals
Referrals
Networking
Networking
Trade
TradeShows/
Shows/
Conventions
Conventions
Company
Company
Records
Records
[Link]
[Link]
Online
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36
Referral and Networking
Referral A recommendation
to a customer
or business associate.
Networking A process of finding
out about potential clients
from friends, business contacts,
coworkers, acquaintances,
and fellow members in
organizations.
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37
Qualifying Leads
Recognized
Recognized need
need
Buying
Buying power
power
Receptivity
Receptivity and
and
accessibility
accessibility
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38
The Preapproach Process
Product
Productor
orservice
service
Salesperson
Salesperson
must
must know
know
everything
everything
about...
about...
[Link]
[Link]
Customers
Customers
Competition
Competition
Industry
Industry
Online
39
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Needs Assessment
A determination of the
customers specific needs and
wants and the range of
options a customer has for
satisfying them.
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40
Developing and Proposing
Solutions
Sales
Sales Proposal
Proposal
Sales
Sales Presentation
Presentation
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41
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!
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42
Handling Objections
View objections as requests for information
Anticipate specific objections
Investigate the objection with the customer
Be aware of competitors products
Stay calm
Use the objection to close the sale
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43
Closing the Sale
Look
Look for
for
customer
customer signals
signals
Keep
Keep an
an open
open mind
mind
Negotiate
Negotiate
Tailor
Tailor to
to each
each market
market
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44
LO6
Review Learning Outcome
Steps in the Selling Process
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45
Sales Management
LO7
Describe the functions
of sales management.
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46
Sales Management
Responsibilities
Define
Define sales
sales goals
goals and
and sales
sales process
process
Determine
Determine sales
sales force
force structure
structure
Recruit
Recruit and
and train
train sales
sales force
force
Compensate
Compensate and
and motivate
motivate sales
sales force
force
Evaluate
Evaluate sales
sales force
force
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47
Defining Sales Goals
Clear
Clear
Precise
Precise
Measurable
Measurable
Sales Volume
Market Share
Profit Level
Time
TimeSpecific
Specific
48
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Quota
A statement of the
individual salespersons sales
objectives, usually based on sales
volume alone but sometimes
including key accounts, new
accounts, repeat sales, and specific
products.
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49
Sales Force Structure
Geographic
Geographic region
region
Product
Product line
line
Marketing
Marketing function
function
Market
Market or
or industry
industry
Individual
Individual client
client
or
or account
account
50
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
Traits of Top Sales Performers
Strong,
Can
healthy self esteem
bounce back from rejection
Sense
of urgency and competitiveness
Persuasive
Assertive
Sociable
Willing
to take risks
Understand
Creative
Possess
complex concepts
in developing solutions
empathy
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51
Training the Sales Force
Company
Company policies
policies
and
and practice
practice
Selling
Selling techniques
techniques
Training
Training
includes...
includes...
Product
Product knowledge
knowledge
Industry
Industry and
and customer
customer
characteristics
characteristics
Nonselling
Nonselling duties
duties
52
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Compensating the Sales Force
Commission
Commission
Combination
Combination
Plans
Plans
Salary
Salary
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53
Motivating the Sales Force
Rewards and incentives include:
Ceremonies
Plaques
Vacations
Merchandise
Pay raises
Cash bonuses
Stock options
Tuition assistance
Product discounts
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54
Evaluating the Sales Force
Sales
Sales volume
volume
Contribution
Contribution to
to profit
profit
Calls
Calls per
per order
order
Sales
Sales or
or profits
profits per
per call
call
Call
Call percentage
percentage achieving
achieving goals
goals
55
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LO7
Review Learning Outcome
Functions of Sales Management
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56
