Sales Promotion and
Personal Selling
Key Concepts
Sales Promotion
Sales
Promotion
Marketing
communication
activities, other than
advertising, personal
selling, and public
relations, in which a
short-term incentive
motivates a purchase.
Sales Promotion
Advertising
Reason to buy
Sales Promotion
Incentive to buy
Sales Promotion
Consumer
Sales
Promotion
Goal
Trade
Sales
Promotion
Consumer market
Drive immediate purchase
Influence behavior
Marketing channel
The Objectives of Sales Promotion
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
Tools for Consumer Sales Promotion
Coupons and Rebates
Premiums
Loyalty Marketing Programs
Contests & Sweepstakes
Sampling
Point-of-Purchase Promotion
Tools for Consumer Sales Promotion
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.
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.
Tools for Consumer Sales Promotion
Contests
Sweepstakes
Promotions that require skill
or ability to compete for prizes.
Promotions that depend on
chance or luck, with free participation.
Tools for Consumer Sales Promotion
Sampling
A promotional program that allows
the consumer the opportunity to try
a product or service for free.
Methods of Sampling
Direct mail
Door-to-door delivery
Packaging with another product
Retail store demonstration
Point-of-Purchase
Promotion
Build traffic
Advertise the product
Induce impulse buying
Online Sales Promotion
Effective Types of Online Sales Promotion
 Free merchandise
 Sweepstakes
 Free shipping with purchases
 Coupons
B2B -- Trade Sales Promotion
Trade Allowances
Push Money
Training
Free Merchandise
Store Demonstration
Conventions & Trade Shows
Trade Allowance
Trade
Allowance
A price reduction offered
by manufacturers to
intermediaries, such as
wholesalers and retailers.
Push Money
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.
E.g. Nike gives bonus to
sales staff of retailers for
meeting quotas
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
Forms of Trade Sales Promotion
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.
Why Personal Selling is Effective
 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
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 partnerships.
Traditional Selling and
Relationship Selling
Traditional
Personal Selling
Relationship Selling
Sell products
Sell advice, assistance, counsel
Focus on closing sales
Focus on customer’s bottom line
Limited sales planning
Sales planning is top priority
Discuss product
Build problem-solving environment
Assess “product-specific” needs
Conduct discovery in scope of operations
“Lone wolf” approach
Team approach
Pricing/product focus
LO5
Short-term sales follow-up
Profit impact and strategic benefit focus
Long-term sales follow-up
Relationship Selling vs. Traditional Selling
Sales
Increases
Result
From
Creating
Value
Initial
Sales
Repeat
Sales
Traditional Sales
Relationship Sales
Successive
Sales
Steps in the Selling Process
Generate Leads
Qualify Leads
Probe Customer Needs
Develop Solutions
Handle Objections
Close the Sale
Follow Up
Generating Leads
Advertising
Publicity
Direct Mail/
Telemarketing
Cold Calling
Internet Web Site
Referrals
Networking
Trade Shows/
Conventions
Company
Records
Cold Calling
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.
Qualifying Leads
Recognized need
Buying power
Receptivity and
accessibility
Needs Assessment
Needs
Assessment
A determination of the
customer’s specific needs
and wants and the range of
options a customer has for
satisfying them.
The Consultative Salesperson
Product or service
Salesperson
must know
everything
about...
Customers
Competition
Industry
Developing and Proposing Solutions
Sales Proposal
Sales Presentation
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!
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
Closing the Sale
Look for
customer signals
Keep an open mind
Negotiate
Tailor to each market
The Impact of Technology on Personal Selling
Cell phones
Laptops
Pagers
E-Mail
Electronic organizers
Internet
Steps in the Selling Process