Chapter 18Sales Promotion and Personal Selling

Sales Promotion

SalesPromotion

SalesPromotion

Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase.

Sales PromotionConsumer

Sales Promotion

ConsumerSales

Promotion

Trade Sales

Promotion

Trade Sales

Promotion

Consumer market

Marketing channel

Drive immediate purchase

Influence behavior Goal

Coupons and RebatesCoupons and Rebates

PremiumsPremiums

Loyalty Marketing ProgramsLoyalty Marketing Programs

Contests & SweepstakesContests & Sweepstakes

SamplingSampling

Point-of-Purchase PromotionPoint-of-Purchase Promotion

Tools for Consumer Sales Promotion

Sales Promotion toward Consumers

Product sampling: Product sampling: samples given to samples given to consumers to try consumers to try the product.the product.

Coupons: Coupons: reduction reduction in price given in in price given in the form of a the form of a certificate.certificate.

Sales Promotion toward Consumers

Rebates: Rebates: portion of portion of the price is returned the price is returned to the purchaser.to the purchaser.

Contests and Contests and Sweepstakes: Sweepstakes:

Contests: consumer Contests: consumer must performmust perform

Sweepstakes: lotterySweepstakes: lottery

Sales Promotion toward Consumers

Premiums: Premiums: product product offered free or at offered free or at reduced charge if reduced charge if another product is another product is purchased.purchased.

Multiple Purchase Multiple Purchase Offers: Offers: two-for-one two-for-one or other multiple or other multiple purchase tied to purchase tied to lower price or other lower price or other promotion.promotion.

LoyaltyMarketingProgram

LoyaltyMarketingProgram

A promotional program designed to build long-term, mutually beneficial relationships between a company and key customers.

A promotional program designed to build long-term, mutually beneficial relationships between a company and key customers.

FrequentBuyer

Program

FrequentBuyer

Program

A loyalty program in which loyal consumers are rewarded for making multiple purchases.

A loyalty program in which loyal consumers are rewarded for making multiple purchases.

Tools for Consumer Sales Promotion

Point-of-Purchase PromotionBuild traffic

Advertise the product

Induce impulse buying

Sales Promotion toward Consumers

Product placements: Product placements: conveying a conveying a noncommercial message by having a noncommercial message by having a product appear in a movie or TV show.product appear in a movie or TV show.

Tie-ins: Tie-ins: collaborative effort between two collaborative effort between two or more organizations in a promotional or more organizations in a promotional effort.effort.

Trade Sales Promotion

Trade AllowancesTrade Allowances

Push MoneyPush Money

TrainingTraining

Free MerchandiseFree Merchandise

Store DemonstrationStore Demonstration

Conventions & Trade ShowsConventions & Trade Shows

TradeAllowance

TradeAllowance

A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers.

Trade Promotions

Push MoneyPush MoneyMoney offered to channel intermediaries to encourage them to “push” products--that is, to encourage other members of the channel to sell the products.

Trade Promotions

Trade Promotions

Trade show: meeting or convention of members of a particular industry.

Contest: offering bonuses or prizes for sales performance in order to motivate a sales force.

Trade Promotions

Point-of-purchase: Point-of-purchase: Promotional items Promotional items which attract which attract attention at the attention at the places where places where products are products are purchased.purchased.

Cooperative Cooperative advertising: advertising: paid for paid for jointly by supplier and jointly by supplier and retailer.retailer.

Personal SellingPersonal Selling

is more important if...

Customers are concentrated.

Customers are concentrated.

Product is technically complex.

Product is technically complex.

There are few customers.There are few customers.

Product is custom made.Product is custom made.

Product has a high value.Product has a high value.

Customers are geographically dispersed.

Customers are geographically dispersed.

Product is simple to understand.

Product is simple to understand.

There are many customers.There are many customers.

Product is standardized.Product is standardized.

Product has a low value.Product has a low value.

Advertising & Sales Promotion are more important if...

Traditional Selling and Relationship Selling

Sell advice, assistance, counsel Sell products

TraditionalTraditionalPersonal SellingPersonal 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 SellingRelationship Selling

Generate LeadsGenerate Leads

Qualify LeadsQualify Leads

Probe Customer NeedsProbe Customer Needs

Develop SolutionsDevelop Solutions

Handle ObjectionsHandle Objections

Close the SaleClose the Sale

Follow UpFollow Up

Steps in the Selling Process

AdvertisingAdvertising PublicityPublicityDirect Mail/Telemarketi

ng

Direct Mail/Telemarketi

ng

Cold CallingCold Calling Internet Web SiteInternet Web Site ReferralsReferrals

Trade Shows/

Conventions

Trade Shows/

ConventionsNetworkingNetworking Company

RecordsCompany Records

Sources of Leads

Recognized needRecognized need

Buying powerBuying power

Receptivity andaccessibility

Receptivity andaccessibility

Qualifying Leads

Developing and Proposing Solutions

Sales ProposalSales Proposal

Sales PresentationSales Presentation

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

Handling Objections

Closing the Sale

NegotiateNegotiate

Keep an open mindKeep an open mind

Look for customer signals

Look for customer signals

Tailor to each marketTailor to each market