Lamb, Hair, McDaniel
MKTG2007-2008
16
CHAPTER
Chapter 16
Sales Promotion and
Personal Selling
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
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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13
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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14
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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15
Methods of Sampling
Direct mail
Door-to-door delivery
Packaging with another product
Retail store demonstration
LO2
Chapter 16
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16
Point-of-Purchase Promotion
Build traffic
Advertise the product
Induce impulse buying
LO2
Chapter 16
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17
Online Sales Promotion
Effective Types of Online Sales Promotion
Free merchandise
Sweepstakes
Free shipping with purchases
Coupons
LO2
Chapter 16
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18
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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19
LO3 Tools for Trade Sales Promotion
List the most
common forms
of trade sales
promotion
Chapter 16
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20
LO3 Trade Sales Promotion
Trade Allowances
Push Money
Training
Free Merchandise
Store Demonstration
Conventions & Trade Shows
Chapter 16
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21
LO3 Trade Allowance
Trade
Allowance
Chapter 16
A price reduction offered
by manufacturers to
intermediaries, such as
wholesalers and retailers.
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22
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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23
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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24
LO3 REVIEW LEARNING OUTCOME
Forms of Trade Sales Promotion
Chapter 16
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25
LO4
Personal Selling
Describe personal
selling
Chapter 16
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26
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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27
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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28
LO5
Relationship Selling
Discuss the key
differences between
relationship selling and
traditional selling
Chapter 16
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29
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.
LO5
Chapter 16
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30
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
Chapter 16
Long-term sales follow-up
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31
LO5 REVIEW LEARNING OUTCOME
Relationship Selling vs. Traditional Selling
Sales
Increases
Result
From
Creating
Value
Initial
Sales
Repeat
Sales
Successive
Sales
Traditional Sales
Relationship Sales
Chapter 16
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32
LO6
Steps in the Selling Process
List the steps in
the selling process
Chapter 16
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33
Steps in the Selling Process
Generate Leads
Qualify Leads
Probe Customer Needs
Develop Solutions
Handle Objections
Close the Sale
LO6
Chapter 16
Follow Up
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34
Time Spent in Key Steps of
Selling Process
Traditional
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
Key Selling Steps
LO6
Chapter 16
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35
Generating Leads
LO6
Advertising
Publicity
Direct Mail/
Telemarketing
Cold Calling
Internet Web Site
Referrals
Networking
Trade Shows/
Conventions
Company
Records
http://www.linkedin.com
http://www.ryze.com
Online
Chapter 16
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36
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.
LO6
Chapter 16
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37
Qualifying Leads
Recognized need
Buying power
Receptivity and
accessibility
LO6
Chapter 16
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38
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.
LO6
Chapter 16
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39
The Consultative Salesperson
Product or service
Salesperson
must know
everything
about...
Customers
Competition
Industry
LO6
Chapter 16
http://www.hoovers.com
http://www.dnb.com
Online
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40
Developing and Proposing
Solutions
Sales Proposal
Sales Presentation
LO6
Chapter 16
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41
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
LO6
Chapter 16
PRACTICE, PRACTICE, PRACTICE!
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42
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
LO6
Chapter 16
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43
Closing the Sale
Look for
customer signals
Keep an open mind
Negotiate
Tailor to each market
LO6
Chapter 16
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44
Biz Flix
LO6
Chapter 16
Family Man
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45
The Impact of Technology on
Personal Selling
Cell phones
Laptops
Pagers
E-Mail
Electronic organizers
LO6
Chapter 16
Internet
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46
LO6 REVIEW LEARNING OUTCOME
Steps in the Selling Process
Chapter 16
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47
