Insert Chapter Picture Here Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 1 Designed by Eric Brengle.

Insert Chapter Picture Here

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16

1

Designed by Eric Brengle B-books, Ltd.

CHAPTER

16

Sales Promotion and Personal Selling

Prepared byDeborah Baker

Texas Christian University

MarketingLamb, Hair, McDaniel

9

2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16

Learning Outcomes

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

LOI

LO2

LO3

LO4


Learning Outcomes

Discuss the key differences between relationship selling and traditional selling

List the steps in the selling process

Describe the functions of sales management

LO5

LO6

LO7


Define and state the objectives of sales promotion

Sales PromotionLOI


Sales Promotion

SalesPromotion

SalesPromotion

LOI

Marketing communication

activities, other than

advertising, personal selling,

and public relations, in

which a short-term incentive

motivates a purchase.


LOI

Advertising

Sales Promotion

Reason to buy

Sales Promotion Incentive to buy


LOI Sales Promotion

ConsumerSales

Promotion

ConsumerSales

Promotion

Trade Sales

Promotion

Trade Sales

Promotion

Consumer market

Marketing channel

Drive immediate purchaseInfluence behavior

Goal


LOI

Type of BuyerType of Buyer

Loyal Customers

Competitor’sCustomers

Brand Switchers

Price Buyers

Desired ResultsDesired Results

•Reinforce behavior• Increase consumption•Change purchase timing

•Break loyalty•Persuade to switch

•Persuade to buy your brand more often

•Appeal with low prices

•Supply added value

Sales PromotionSales PromotionExamples Examples

•Loyalty marketing•Bonus packs

•Sampling•Sweepstakes, contests, premiums

•Price-lowering promotion

•Trade deals

•Coupons, price-offpackages, refunds

•Trade deals

Objectives of Sales Promotion


REVIEW LEARNING OUTCOMEThe Objectives of Sales Promotion

LOI


Discuss the most common forms of consumer

sales promotion

Tools for Consumer Sales PromotionLO2

11Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16LO2

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



CouponCoupon

RebateRebate

PremiumPremium

A certificate that entitles consumers to an immediate

price reduction.

A certificate that entitles consumers to an immediate

price reduction.

A cash refund given for the purchase of a product during

a specific period.

A cash refund given for the purchase of a product during

a specific period.

An extra item offered to the consumer, usually in exchange

for some proof of purchase.

An extra item offered to the consumer, usually in exchange

for some proof of purchase.


LO2

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.



LO2

ContestsContests Promotions that require skill or ability to compete for prizes.

Promotions that require skill or ability to compete for prizes.

SweepstakesSweepstakesPromotions that depend on chance or luck, with free participation.

Promotions that depend on chance or luck, with free participation.


Online

http://www.sweepstakesonline.com

15Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 LO2


SamplingSamplingA promotional program that allows the consumer the opportunity to try a product or service for free.

A promotional program that allows the consumer the opportunity to try a product or service for free.


LO2

Direct mailDirect mail

Door-to-door deliveryDoor-to-door delivery

Packaging with another productPackaging with another product

Retail store demonstrationRetail store demonstration

Methods of Sampling


Build traffic

Advertise the product

Induce impulse buying

Point-of-Purchase Promotion

18Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved

Chapter 16

Online Sales PromotionLO2

Free merchandise

Sweepstakes

Free shipping with purchases

Coupons

Effective Types of Online Sales PromotionEffective Types of Online Sales Promotion


REVIEW LEARNING OUTCOMEConsumer Sales Promotion

LO2

Coupons and rebates

Premiums

Loyalty marketing programs

Contests

Sampling

P-O-P

Online


List the most common forms of trade sales promotion

Tools for Trade Sales PromotionLO3


Chapter 16

Trade Sales PromotionLO3

Trade AllowancesTrade Allowances

Push MoneyPush Money

TrainingTraining

Free MerchandiseFree Merchandise

Store DemonstrationStore Demonstration

Conventions & Trade ShowsConventions & Trade Shows


LO3

TradeAllowance

TradeAllowance

A price reduction offered

by manufacturers to

intermediaries, such as

wholesalers and retailers.

Trade Allowance


LO3

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.

Push Money


Benefits of Trade Promotions

Help manufacturers gain new distribution

Obtain wholesaler and retailer support forconsumer sales promotions

Build or reduce dealer inventories

Improve trade relations


REVIEW LEARNING OUTCOMEForms of Trade Sales Promotion

LO3


Describe personal selling

Personal SellingLO4


LO4 Personal Selling

Personal 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...


REVIEW LEARNING OUTCOMEPersonal Selling

LO4

Detailed explanation or demonstration

Variable sales message

Directed to qualified prospects

Controllable adjustable selling costs

More effective than other promotion in obtaining sale and gaining customer satisfaction

PersonalSelling

Advantages

PersonalSelling

Advantages


Discuss the key differences between relationship selling

and traditional selling

Relationship SellingLO5


LO5

Relationship(Consultative)

Selling

Relationship(Consultative)

Selling

Relationship Selling

A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.


Traditional Selling and Relationship SellingLO5

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


REVIEW LEARNING OUTCOME Relationship Selling vs. Traditional Selling

LO5

InitialSales

RepeatSales

SuccessiveSales

Traditional Sales

Relationship Sales

SalesIncreasesResultFromCreatingValue


List the steps in the selling process

Steps in the Selling ProcessLO6


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


LO6

Key Selling StepsTraditional

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

Time Spent in Key Steps of Selling Process


LO6

AdvertisingAdvertising PublicityPublicity Direct Mail/TelemarketingDirect Mail/

Telemarketing

Cold CallingCold Calling Internet Web Site

Internet Web Site ReferralsReferrals

Trade Shows/Conventions

Trade Shows/ConventionsNetworkingNetworking Company

RecordsCompany Records

Generating Leads

Online

http://www.linkedin.comhttp://www.ryze.com


Cold CallingCold Calling

LO6 Cold Calling

A form of lead generation in

which the salesperson

approaches potential buyers

without any prior knowledge of

the prospects’ needs or

financial status.


Recognized needRecognized need

Buying powerBuying power

Receptivity andaccessibility

Receptivity andaccessibility

LO6 Qualifying Leads


NeedsAssessment

NeedsAssessment

LO6 Needs Assessment

A determination of the

customer’s specific needs

and wants and the range of

options a customer has for

satisfying them.


LO6

Product or serviceProduct or service

CustomersCustomers

CompetitionCompetition

IndustryIndustry

Salesperson must knoweverything

about...

Salesperson must knoweverything

about...

The Consultative Salesperson

Online

http://www.hoovers.comhttp://www.dnb.com


Developing and Proposing Solutions

Sales ProposalSales Proposal

Sales PresentationSales Presentation


LO6

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!

Powerful Presentations


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


LO6 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

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16

Biz Flix

Fam

ily M

an

45

LO6


REVIEW LEARNING OUTCOMESteps in the Selling Process

LO6


Describe the functions of sales management

Sales ManagementLO7


LO7

Evaluate sales forceEvaluate sales force

Compensate and motivate sales forceCompensate and motivate sales force

Recruit and train sales forceRecruit and train sales force

Determine sales force structureDetermine sales force structure

Define sales goals and sales processDefine sales goals and sales process

Sales Management Responsibilities


LO7

ClearClear

PrecisePrecise

MeasurableMeasurable

Time SpecificTime Specific

Defining Sales Goals

Sales VolumeMarket ShareProfit Level


QuotaQuota

LO7

A statement of the individual salesperson’s

sales objectives, usually based on sales

volume alone but sometimes including key

accounts, new accounts, repeat sales, and

specific products.

Quota


Chapter 16

Sales Force StructureLO7

Individual client or account

Individual client or account

Market or industryMarket or industry

Marketing functionMarketing function

Product lineProduct line

Geographic regionGeographic region


Traits of Top Sales PerformersLO7

Strong, healthy self esteem

Can bounce back from rejection

Sense of urgency and competitiveness

Persuasive

Assertive

Sociable

Willing to take risks

Understand complex concepts

Creative in developing solutions

Possess empathy


LO7

Training includes...

Training includes...

Nonselling dutiesNonselling duties

Industry and customer characteristics

Industry and customer characteristics

Product knowledgeProduct knowledge

Selling techniquesSelling techniques

Company policies and practice

Company policies and practice

Training the Sales Force


LO7 Compensating the Sales Force

CommissionCommission

SalarySalary

CombinationPlans

CombinationPlans


LO7

StraightCommission

StraightCommission

The salesperson is paid some percentage when a sale is made.

The salesperson is paid some percentage when a sale is made.

StraightSalary

StraightSalary

The salesperson receives a salary regardless of sales productivity.

The salesperson receives a salary regardless of sales productivity.

Compensating the Sales Force


Motivating the Sales ForceLO7

Ceremonies Plaques Vacations Merchandise Pay raises Cash bonuses Stock options Tuition assistance Product discounts

Rewards and incentives include:


Key Personality Traits of Sales LeadersLO7

Effective Sales Leaders are…

Are assertive Are assertive

Possess ego drivePossess ego drive

Possess ego strengthPossess ego strength

Take risksTake risks

Are innovativeAre innovative

Have a sense of urgencyHave a sense of urgency

Are empatheticAre empathetic


Chapter 16

Evaluating the Sales ForceLO7

Contribution to profitContribution to profit

Calls per orderCalls per order

Sales or profits per callSales or profits per call

Call percentage achieving goalsCall percentage achieving goals

Sales volumeSales volume


Women in Car SalesLO7

SOURCE: Jennifer Saranow, “Car Dealers Recruit Saleswomen at the Mall,”

Wall Street Journal, April 12, 2006, B1.

For its Florida and Texas dealerships, Asbury Automotive Group is actively recruiting saleswomen– at shopping malls.

11% of the automotive sales force is female. In contrast, 50% of retail-industry employees are women.

Women influence 81% of new auto purchases, and women may even be better at selling cars than men.

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 60

LO7

The Impact of Technology on Personal Selling

Cell phonesCell phones

LaptopsLaptops

PagersPagers

E-MailE-Mail

Electronic organizersElectronic organizers

InternetInternet


REVIEW LEARNING OUTCOME Functions of Sales Management

LO7

Insert Chapter Picture Here Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 1 Designed by Eric Brengle.

Documents

division of thomson

sales promotion reason

rights reserved chapter

sales promotionincentive

purchase promotion tools

learning outcomes

chapter picture

functions of sales management