Sales Promotion and
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Prepared byPrepared by
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Learning Objectives Learning Objectives
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1 D fiD fi d t t thd t t th bjbj titi ff ll 1.
1. Define and state the objectives of sales Define and state the objectives of sales promotion.
promotion.
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16 2. Discuss the most common forms of 2. Discuss the most common forms of consumer sales promotion.
consumer sales promotion.
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3. List the most common forms of trade sales 3. List the most common forms of trade sales promotionpromotion
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Learning Objectives (continued)g j ( )
4 D ib l lli
4 D ib l lli
4. Describe personal selling. 4. Describe personal selling.
5 Discuss the key differences between 5 Discuss the key differences between 16
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5. Discuss the key differences between 5. Discuss the key differences between
relationship selling and traditional selling. relationship selling and traditional selling.
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6. List the steps in the selling process. 6. List the steps in the selling process.
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7 Describe the functions of salesDescribe the functions of sales
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7.7. Describe the functions of sales Describe the functions of sales management.management.
Learning Objective 1 Learning Objective
Define and state the Define and state the
Sales Promotion 1
M k t i i t i
Market ing com m unicat ion act ivit ies, ot her t han
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Sales PromotionSales Promotion
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Sales Promotion
Uses of Sales Promotion 1 Uses of Sales Promotion
Immediate Purchases
Increase Trial
Boost consumer inventory
Encourage repurchase Encourage repurchase
Increase ad effectiveness
Uses Uses
of of
Encourage brand switching
of
Objectives of Sales Promotion 1 Objectives of Sales Promotion
T f B
T f B DD i d Ri d R ltlt Sales PromotionSales Promotion Type of Buyer
Type of Buyer
L l C t
Desired Results Desired Results
•Reinforce behavior
Sales Promotion Sales Promotion
Examples Examples
•Loyalty marketing
Loyal Customers
Competitor’s
•Increase consumption
•Change timing
•Break loyalty
Loyalty marketing
•Bonus packs
•Sampling
Competitor s Customers
B d S i h
Break loyalty
•Persuade to switch
•Persuade to buy your
•Sweepstakes,
contests, premiums
•Price-lowering
Brand Switchers •Persuade to buy your brand more often promotion
Learning Objective 2
Learning Objective 2
Discuss the most common forms Discuss the most common forms
Tools for
Cons mer Sales Promotion 2
Consumer Sales Promotion
Coupons and Rebates
2
Coupons and Rebates
Premiums
Loyalty Marketing Programs
Contests & Sweepstakes
S li
Popular Tools Popular Tools
for
for Sampling
for for
Tools for
Cons mer Sales Promotion 2
A certificate that entitles
Consumer Sales Promotion 2
Coupon
A certificate that entitles consumers to an immediate
price reduction.
Rebate
A cash refund given for the purchase of a product during Rebate purchase of a product during
a specific product.
Premium
An extra item offered to the consumer, usually in exchange
Tools for 2
Consumer Sales Promotion 2
Loyalty Marketing
A promotional program designed to build long-term, mutually
beneficial relationships between g
Program
Frequent
beneficial relationships between a company and key customers.
A l lt i hi h l l
Frequent Buyer Program
A loyalty program in which loyal consumers are rewarded for
Tools for 2
Consumer Sales Promotion 2
Contest Promotions that require skill or ability to compete for prizesability to compete for prizes.
P ti th t d d
Sweepstakes
Promotions that depend on chance or luck, with
Tools for 2
Consumer Sales Promotion 2
Sampling
A promotional program that allow the consumer the opportunity to try a
p g pp y y
Sampling 2
Direct mail
2
Direct mail
Methods of
Door-to-door delivery
of
Sampling Packaging with
another product
Tools for 2
Consumer Sales Promotion 2
Build traffic
Advertise the product
Purchase Purchase Goals of
Goals of Point
Point--ofof--PurchasePurchase Induce impulse buying Point
Point--ofof--PurchasePurchase Displays
Displays
Tools for 2
Consumer Sales Promotion 2
Free merchandise
Effective
Sweepstakes
Types of On-Line
Sales
Free shipping
Sales Promotion
Learning Objective 3
Learning Objective 3
List the most common forms List the most common forms
Tools for Trade Sales Promotion 3 Tools for Trade Sales Promotion
Trade Allowances
3
Trade Allowances
Push Money
Training
Free Merchandise
Unique Tools Unique Tools
ff Store Demonstration
Conventions & Trade Shows
for for
Trade Sales Trade Sales Promotion
Trade Allowance 3
Trade Allowance 3
Push Money 3
Push Money 3
Money offered t o channel int erm ediaries t o
encourage t hem t o “ push” product s- - t hat is, t o
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encourage ot her m em bers of t he channel t o sell t he
o t e c a e t o se t e
The Role of
Trade Sales Promotion 3
Trade Sales Promotion 3
Gain new distributors Gain new distributors
Obt i t f
Obtain support for
consumer sales promotions
Learning Objective 4
Learning Objective 4
Advantages of Personal Selling 4 Advantages of Personal Selling
z Provides a det ailed explanat ion
4
p
or dem onst rat ion of product
z Message can be varied t o fit t he
needs of each prospect ive cust om er needs of each prospect ive cust om er
z Can be direct ed t o specific qualified
prospect s prospect s
z Cost s can be cont rolled by adj ust ing
sales force size
Personal Selling 4
Personal Selling Advertising & Sales Promotion
4
Product has a high value
g
is more important if...
Product has a low value
g
are more important if...
Product is custom made Product is standardized
Product is
technically complex
Product is
simple to understand
Customers are
There are few customers
Customers are
There are many customers
Learning Objective 5
Learning Objective 5
Discuss the key differences Discuss the key differences between relationship selling between relationship selling
Relationship Selling 5 Relationship Selling
A l t i t h t
5
A sales pract ice t hat involves building,
d m aint aining, and
enhancing int eract ions wit h cust om ers in order t o
develop long- t erm sat isfact ion t hrough
Relationship Selling 5
Relationship Selling 5
Focus: Focus:
Long
Long--TermTerm
Building Building
Mutual Mutual
Long
Long--TermTerm
Value
Value--Added Added
Benefits to Benefits to
B B Trust
Relationship Selling
s Traditional Selling 5
vs. Traditional Selling
Traditional Traditional
Relationship Selling Relationship Selling
5
Sell advice, assistance, counsel Sell products
Personal Selling
Personal Selling Relationship SellingRelationship Selling
Focus on closing sales
Limited sales planning
Focus on customer’s bottom line
Sales planning is top priority
Discuss product
A “P d t ifi ”
Assess “Product-specific” needs
nt Build problem-solving environment
C d t di i f
Conduct discovery in scope of operations
needs
“Lone wolf” approach
Pricing/product focus
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operations
Team approach
P fit i t d t t i Profit impact and strategic benefit focus
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Learning Objective 6
Learning Objective 6
Sales Process 66
The set of st eps a
salesperson goes t hrough salesperson goes t hrough
in a part icular
organizat ion t o sell a organizat ion t o sell a
part icular
d t i
Steps in the Selling Process 6
Steps in the Selling Process 6
Generate Leads Generate Leads
Qualify Leads
Probe Customer Needs
Develop Solutions Develop Solutions
Handle Objections
Basic Steps Basic Steps
Close the Sale
in the in the
Generating Leads 6 Generating Leads
Cold Calling Advertising Publicity Direct Mail/
T l k ti
6
Cold Calling Advertising Publicity
Telemarketing
Trade Shows/ Web Sites/
Referrals Networking
Conventions Internet Referrals Networking
Company R d Records
Cold Calling 66
A form of lead generat ion in w hich t he salesperson
approaches pot ent ial buyers wit hout any prior
knowledge of t he prospect s’ needs or
Qualifying Leads 66
Characteristics of Characteristics of
Qualified Leads Qualified Leads Qualified Leads Qualified Leads
Recognized Need Receptivity & Accessibility
Probing Needs 6
P d t i
6
Product or service
Salesperson must know
thi
Customers and their needs
everything
Needs Assessment 6
Needs Assessment 6
A det erm inat ion of t he cust om er ’s specific needs p
and want s and t he range of opt ions a cust om er has of opt ions a cust om er has
Developing and
Proposing Sol tions 6
Proposing Solutions 6
Sales Proposal Sales Proposal
Handling Objections 6
Handling Objections 6
View objections as requests for information
Handling Handling Objections
Objections Anticipate
specific objections
Use the objection
t l th l
specific objections
Closing the Sale 66
Look for
customer signals
Closing Closing the Sale
the Sale Keep an open mind
Following Up 66
Ensure delivery schedules are met Responsibilities
Following Up Following Up
Goods or service perform as promised
Following Up Following Up
Employees are trained as promised
Learning Objective 7
Learning Objective 7
Describe the functions Describe the functions
Sales Management
Responsibilities 7
Responsibilities
Define sales goals and
7
Determine sales sales process
Recruit and train Determine sales
force structure
Tasks of Tasks of
S l M t
S l M t
Compensate and motivate Recruit and train
sales force
Sales Management Sales Management
Defining Sales Goals 7
Defining Sales Goals 7
Clear Clear
Sales Goals Sh ld B
Precise
Should Be...
Quota 77
A st at em ent of t he individual salesperson’s sales obj ect ives, usually
Sales Force Structure 7
Sales Force Structure 7
Geographic Region
Product Line
Geographic Region
Common Common
Sales Sales O i ti
O i ti Marketing Function
Product Line
Organization Organization
Structures Structures
Market or Industry Marketing Function
Training the Sales Force 7
Training the Sales Force 7
Company policies
Selling techniques p y p
and practice
Training Training includes
includes Product knowledge
Selling techniques
includes... includes...
Industry and customer h t i ti
Product knowledge
Nonselling duties characteristics
Compensation Plans 7
Compensation Plans 7
Basic Basic
Compensation Compensation
Methods Methods Methods Methods
Commission Salary
Compensation Plans 7
Compensation Plans 7
Straight Commission
The salesperson is paid some percentage when a sale is made Commission percentage when a sale is made.
Straight Salary
The salesperson receives a salary
Effective Sales Leaders 7
Effective Sales Leaders 7
Effective Sales Leaders Effective Sales Leaders Effective Sales Leaders Effective Sales Leaders......
Are assertive
Possess ego drive
Possess ego strength
Take risks
Are innovative Are innovative
Evaluating the Sales Force 7 Evaluating the Sales Force
S l V l
7
Contribution to Profit Sales Volume
Contribution to Profit
Calls per Order
Performance
Performance Sales or Profits per Call Measures
Measures
The Impact of Technology
on Personal Selling 7
on Personal Selling 7
Laptop computer linkp p p
Mobile telephones
Pagers
Personal data assistants
Sales Force Sales Force
