Lamb, Hair, McDaniel
MKTG2007-2008
16
CHAPTER
Designed by
Amy McGuire, B-books, Ltd.
Chapter 16
Sales Promotion and
Personal Selling
Prepared by
Deborah Baker, Texas Christian University
Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved
1
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
Chapter 16
Describe personal selling
Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved
2
Learning Outcomes
LO5
Discuss the key differences between
relationship selling and traditional selling
LO6
List the steps in the selling process
Chapter 16
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3
LO1
Sales Promotion
Define and state
the objectives of
sales promotion
Chapter 16
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4
Sales Promotion
Sales
Promotion
LO1
Chapter 16
Marketing
communication
activities, other than
advertising, personal
selling, and public
relations, in which a
short-term incentive
motivates a purchase.
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5
Sales Promotion
Advertising
Reason to buy
Sales Promotion
Incentive to buy
LO1
Chapter 16
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6
Sales Promotion
Consumer
Sales
Promotion
Goal
Trade
Sales
Promotion
Consumer market
Drive immediate purchase
Influence behavior
Marketing channel
LO1
Chapter 16
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7
Objectives of Sales Promotion
Type of Buyer
Desired Results
Sales Promotion
Examples
Loyal
Customers
•Reinforce behavior
•Loyalty marketing
•Increase consumption
•Bonus packs
•Change purchase timing
Competitor’s
Customers
•Break loyalty
•Persuade to switch
•Sampling
•Sweepstakes,
contests, premiums
Brand
Switchers
•Persuade to buy your
brand more often
•Price-lowering
promotion
•Trade deals
•Appeal with low
prices
•Supply added value
•Coupons, price-off
packages, refunds
•Trade deals
LO1
Price Buyers
Chapter 16
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8
LO1 REVIEW LEARNING OUTCOME
The Objectives of Sales Promotion
Chapter 16
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9
LO2
Tools for Consumer
Sales Promotion
Discuss the most
common forms of
consumer sales
promotion
Chapter 16
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10
Tools for Consumer Sales
Promotion
Coupons and Rebates
Premiums
Loyalty Marketing Programs
Contests & Sweepstakes
Sampling
LO2
Chapter 16
Point-of-Purchase Promotion
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11
Tools for Consumer Sales
Promotion
LO2
Chapter 16
Coupon
A certificate that entitles
consumers to an immediate
price reduction.
Rebate
A cash refund given for the
purchase of a product during
a specific period.
Premium
An extra item offered to the consumer,
usually in exchange
for some proof of purchase.
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12
Premiums
Premiums
provide
consumers
with a reason
to choose one
brand over
another.
Chapter 16
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13
Tools for Consumer Sales
Promotion
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 consumers are rewarded for
making multiple purchases.
LO2
Chapter 16
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14
Tools for Consumer Sales
Promotion
Contests
Sweepstakes
LO2
Chapter 16
Promotions that require skill
or ability to compete for prizes.
Promotions that depend on
chance or luck, with free participation.
http://www.sweepstakesonline.com
Online
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15
Contests like this one encourage consumers to
purchase more
Chapter 16
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16
Sweepstakes rely on chance
Chapter 16
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17
Tools for Consumer Sales
Promotion
Sampling
A promotional program that allows
the consumer the opportunity to try
a product or service for free.
LO2
Chapter 16
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18
Samples
Chapter 16
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19
Methods of Sampling
Direct mail
Door-to-door delivery
Packaging with another product
Retail store demonstration
LO2
Chapter 16
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20
Point-of-Purchase Promotion
Build traffic
Advertise the product
Induce impulse buying
LO2
Chapter 16
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21
Point of Purchase
Chapter 16
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22
Online Sales Promotion
Effective Types of Online Sales Promotion
Free merchandise
Sweepstakes
Free shipping with purchases
Coupons
LO2
Chapter 16
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23
LO2 REVIEW LEARNING OUTCOME
Consumer Sales Promotion
Coupons and rebates
Premiums
Loyalty marketing programs
Contests
Sampling
P-O-P
Online
Chapter 16
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24
LO3 Tools for Trade Sales Promotion
List the most
common forms
of trade sales
promotion
Chapter 16
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25
LO3 Trade Sales Promotion
Trade Allowances
Push Money
Training
Free Merchandise
Store Demonstration
Conventions & Trade Shows
Chapter 16
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26
LO3 Trade Allowance
Trade
Allowance
Chapter 16
A price reduction offered
by manufacturers to
intermediaries, such as
wholesalers and retailers.
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27
LO3 Push Money
Push Money
Chapter 16
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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28
LO3 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
Chapter 16
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29
LO3 REVIEW LEARNING OUTCOME
Forms of Trade Sales Promotion
Chapter 16
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30
LO4
Personal Selling
Describe personal
selling
Chapter 16
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31
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.
Customers are
concentrated.
Product is
simple to understand.
Customers are
geographically dispersed.
LO4
Chapter 16
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32
LO4 REVIEW LEARNING OUTCOME
Personal Selling
Detailed explanation or demonstration
Variable sales message
Personal
Selling
Advantages
Directed to qualified prospects
Controllable adjustable selling costs
More effective than other promotion in
obtaining sale and gaining customer
satisfaction
Chapter 16
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33
