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.
MarketingLamb, Hair, McDaniel
Texas Christian University
Sales Promotion and Personal Selling
Define and state the objectives of sales promotion
Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase.
Reason to buy
Incentive to buy
Drive immediate purchaseInfluence behavior
Type of Buyer
Discuss the most common forms of consumer sales promotion
Coupons and Rebates
Loyalty Marketing Programs
Contests & Sweepstakes
A certificate that entitles consumers to an immediate price reduction.
A cash refund given for the
purchase of a product during
a specific period.
An extra item offered to the consumer, usually in exchange for some proof of purchase.
A promotional program designed
to build long-term, mutually beneficial relationships between
a company and key customers.
A loyalty program in which loyal consumers are rewarded for
making multiple purchases.
Promotions that require skill or ability to compete for prizes.
Promotions that depend on chance or luck, with free participation.
A promotional program that allows the consumer the opportunity to try a product or service for free.
Packaging with another product
Retail store demonstration
Effective Types of Online Sales Promotion
Coupons and rebates
Loyalty marketing programs
List the most common forms of trade sales promotion
Conventions & Trade Shows
A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers.
Money offered to channel intermediaries to encourage them to “push” products--that is, to encourage other members of the channel to sell the products.
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.
Advertising & Sales Promotion are more important if...
Personal Selling is more important if...
Discuss the key differences between relationship selling and traditional selling
A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.
Sell advice, assistance, counsel
Focus on closing sales
Focus on customer’s bottom line
Limited sales planning
Sales planning is top priority
Build problem-solving environment
Conduct discovery in scope of
“Lone wolf” approach
Profit impact and strategic
Short-term sales follow-up
Long-term sales follow-up
List the steps in the selling process
Probe Customer Needs
Close the Sale
Internet Web Site
A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial status.
A determination of the customer’s specific needs and wants and the range of options a customer has for satisfying them.
Product or service
Be well prepared
Use eye contact
Ask open-ended questions
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!
Look for customer signals
Keep an open mind
Tailor to each market
Describe the functions of sales management
Define sales goals and sales process
Determine sales force structure
Recruit and train sales force
Compensate and motivate sales force
Evaluate sales force
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.
Market or industry
Individual client or account
Company policies and practice
Industry and customer
The salesperson is paid some percentage when a sale is made.
The salesperson receives a salary regardless of sales productivity.
Possess ego drive
Possess ego strength
Have a sense of urgency
Contribution to profit
Calls per order
Sales or profits per call
Call percentage achieving goals
SOURCE: Jennifer Saranow, “Car Dealers Recruit Saleswomen at the Mall,” Wall Street Journal, April 12, 2006, B1.