Designed by Eric Brengle B-books, Ltd.

1. 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

2. Sales Promotion LOI Define and state the objectives of sales promotion

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

4. Sales Promotion LOI Advertising Reason to buy Sales Promotion Incentive to buy

5. ConsumerSales Promotion Consumer market Goal Drive immediate purchase Influence behavior Trade Sales Promotion Marketing channel Sales Promotion LOI

6. 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

7. Tools for Consumer Sales Promotion LO2 Discuss the most common forms of consumer sales promotion

8. Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion Tools for Consumer Sales Promotion LO2

9. 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

10. 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

11. 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

12. Sampling A promotional program that allows the consumer the opportunity to try a product or service for free. Tools for Consumer Sales Promotion LO2

13. Direct mail Door-to-door delivery Packaging with another product Retail store demonstration Methods of Sampling LO2

14. Point-of-Purchase Promotion • Build traffic • Advertise the product • Induce impulse buying LO2

15. Online Sales Promotion LO2 Effective Types of Online Sales Promotion • Free merchandise • Sweepstakes • Free shipping with purchases • Coupons

16. REVIEW LEARNING OUTCOMEConsumer Sales Promotion LO2 Coupons and rebates Premiums Loyalty marketing programs Contests Sampling P-O-P Online

17. Tools for Trade Sales Promotion LO3 List the most common forms of trade sales promotion

18. Trade Sales Promotion Trade Allowances Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows LO3

19. TradeAllowance Trade Allowance LO3 A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers.

20. 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.

21. 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

22. Personal Selling LO4 Describe personal selling

23. 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...

24. 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

25. Relationship Selling LO5 Discuss the key differences between relationship selling and traditional selling

26. 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.

27. 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

28. RepeatSales SuccessiveSales InitialSales Sales Increases Result From Creating Value Traditional Sales Relationship Sales REVIEW LEARNING OUTCOME Relationship Selling vs. Traditional Selling LO5

29. Steps in the Selling Process LO6 List the steps in the selling process

30. Generate Leads Qualify Leads Probe Customer Needs Develop Solutions Handle Objections Close the Sale Follow Up Steps in the Selling Process LO6

31. Time Spent in Key Steps of Selling Process LO6

32. 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

33. 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.

34. Qualifying Leads Recognized need Buying power Receptivity andaccessibility LO6

35. 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.

36. Product or service Salesperson must know everything about... Customers Competition Industry http://www.hoovers.com http://www.dnb.com Online The Consultative Salesperson LO6

37. Developing and Proposing Solutions Sales Proposal Sales Presentation LO6

38. 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

39. 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

40. Closing the Sale Look for customer signals Keep an open mind Negotiate Tailor to each market LO6

41. Sales Management LO7 Describe the functions of sales management

42. 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

43. Clear Precise Measurable Time Specific Defining Sales Goals LO7 Sales Volume Market Share Profit Level

44. 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.

45. Sales Force Structure Geographic region Product line Marketing function Market or industry Individual client or account LO7

46. 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

47. Company policies and practice Selling techniques Training includes... Product knowledge Industry and customer characteristics Nonselling duties Training the Sales Force LO7

48. Compensating the Sales Force Commission Combination Plans Salary LO7

49. 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

50. Motivating the Sales Force • Rewards and incentives include: • Ceremonies • Plaques • Vacations • Merchandise • Pay raises • Cash bonuses • Stock options • Tuition assistance • Product discounts LO7