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9. Marketing Lamb, Hair, McDaniel. Designed by Eric Brengle B-books, Ltd. Prepared by Deborah Baker Texas Christian University. Sales Promotion and Personal Selling. CHAPTER 16. Sales Promotion. LO I. Define and state the objectives of sales promotion. Sales Promotion.

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9

MarketingLamb, Hair, McDaniel

Designed by

Eric Brengle

B-books, Ltd.

Prepared by

Deborah Baker

Texas Christian University

Sales Promotion and Personal Selling

CHAPTER 16


Sales Promotion

LOI

Define and state the objectives of sales promotion


SalesPromotion

Sales Promotion

LOI

Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase.


Sales Promotion

LOI

Advertising

Reason to buy

Sales Promotion

Incentive to buy


ConsumerSales Promotion

Consumer market

Goal

Drive immediate purchaseInfluence behavior

Trade

Sales Promotion

Marketing channel

Sales Promotion

LOI


Objectives of Sales Promotion

Type of Buyer

Desired Results

Sales PromotionExamples

Loyal Customers

  • Reinforce behavior

  • Increase consumption

  • Change purchase timing

  • Loyalty marketing

  • Bonus packs

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

Price Buyers

  • Appeal with low prices

  • Supply added value

  • Coupons, price-offpackages, refunds

  • Trade deals

LOI


Tools for Consumer Sales Promotion

LO2

Discuss the most common forms of consumer sales promotion


Coupons and Rebates

Premiums

Loyalty Marketing Programs

Contests & Sweepstakes

Sampling

Point-of-Purchase Promotion

Tools for Consumer Sales Promotion

LO2


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

LO2


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

LO2


Contests

Promotions that require skill or ability to compete for prizes.

Sweepstakes

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

http://www.sweepstakesonline.com

Online

Tools for Consumer Sales Promotion

LO2


Sampling

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

Tools for Consumer Sales Promotion

LO2


Direct mail

Door-to-door delivery

Packaging with another product

Retail store demonstration

Methods of Sampling

LO2


Point-of-Purchase Promotion

  • Build traffic

  • Advertise the product

  • Induce impulse buying

LO2


Online Sales Promotion

LO2

Effective Types of Online Sales Promotion

  • Free merchandise

  • Sweepstakes

  • Free shipping with purchases

  • Coupons


REVIEW LEARNING OUTCOMEConsumer Sales Promotion

LO2

Coupons and rebates

Premiums

Loyalty marketing programs

Contests

Sampling

P-O-P

Online


Tools for Trade Sales Promotion

LO3

List the most common forms of trade sales promotion


Trade Sales Promotion

Trade Allowances

Push Money

Training

Free Merchandise

Store Demonstration

Conventions & Trade Shows

LO3


TradeAllowance

Trade Allowance

LO3

A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers.


Push Money

Push Money

LO3

Money offered to channel intermediaries to encourage them to “push” products--that is, to encourage other members of the channel to sell the products.


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

LO3


Personal Selling

LO4

Describe personal selling


Product has a low value.

Product has a high value.

Product is standardized.

Product is custom made.

There are many customers.

There are few customers.

Product is simple to understand.

Product is technically complex.

Customers are

concentrated.

Customers are

geographically dispersed.

Personal Selling

LO4

Advertising & Sales Promotion are more important if...

Personal Selling is 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

PersonalSellingAdvantages


Relationship Selling

LO5

Discuss the key differences between relationship selling and traditional selling


Relationship(Consultative)Selling

Relationship Selling

LO5

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 advice, assistance, counsel

Sell products

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

Profit impact and strategic

benefit focus

Short-term sales follow-up

Long-term sales follow-up

LO5


RepeatSales

SuccessiveSales

InitialSales

Sales

Increases

Result

From

Creating

Value

Traditional Sales

Relationship Sales

REVIEW LEARNING OUTCOME Relationship Selling vs. Traditional Selling

LO5


Steps in the Selling Process

LO6

List the steps in the selling process


Generate Leads

Qualify Leads

Probe Customer Needs

Develop Solutions

Handle Objections

Close the Sale

Follow Up

Steps in the Selling Process

LO6


Time Spent in Key Steps of Selling Process

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

Generating Leads

LO6


Cold Calling

Cold Calling

LO6

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 andaccessibility

LO6


NeedsAssessment

Needs Assessment

LO6

A determination of the customer’s specific needs and wants and the range of options a customer has for satisfying them.


Product or service

Salesperson

must know

everything

about...

Customers

Competition

Industry

http://www.hoovers.com

http://www.dnb.com

Online

The Consultative Salesperson

LO6


Developing and Proposing Solutions

Sales Proposal

Sales Presentation

LO6


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!

LO6


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


Closing the Sale

Look for customer signals

Keep an open mind

Negotiate

Tailor to each market

LO6


Sales Management

LO7

Describe the functions of sales management


Sales Management Responsibilities

Define sales goals and sales process

Determine sales force structure

Recruit and train sales force

Compensate and motivate sales force

Evaluate sales force

LO7


Clear

Precise

Measurable

Time Specific

Defining Sales Goals

LO7

Sales Volume

Market Share

Profit Level


Quota

Quota

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.


Sales Force Structure

Geographic region

Product line

Marketing function

Market or industry

Individual client or account

LO7


Traits of Top Sales Performers

LO7

  • 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


Company policies and practice

Selling techniques

Training includes...

Product knowledge

Industry and customer

characteristics

Nonselling duties

Training the Sales Force

LO7


Compensating the Sales Force

Commission

Combination

Plans

Salary

LO7


Straight

Commission

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

Straight

Salary

The salesperson receives a salary regardless of sales productivity.

Compensating the Sales Force

LO7


Motivating the Sales Force

  • Rewards and incentives include:

  • Ceremonies

  • Plaques

  • Vacations

  • Merchandise

  • Pay raises

  • Cash bonuses

  • Stock options

  • Tuition assistance

  • Product discounts

LO7


Key Personality Traits of Sales Leaders

  • Effective Sales Leaders are…

Are assertive

Possess ego drive

Possess ego strength

Take risks

Are innovative

Have a sense of urgency

Are empathetic

LO7


Evaluating the Sales Force

Sales volume

Contribution to profit

Calls per order

Sales or profits per call

Call percentage achieving goals

LO7


Women in Car Sales

LO7

  • 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.

SOURCE: Jennifer Saranow, “Car Dealers Recruit Saleswomen at the Mall,” Wall Street Journal, April 12, 2006, B1.


Cell phones

Laptops

Pagers

E-Mail

Electronic organizers

Internet

The Impact of Technology on Personal Selling

LO7


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