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Sales Promotion and Personal Selling

Sales Promotion and Personal Selling. Key Concepts. Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase. Sales Promotion. Sales Promotion. Sales Promotion. Advertising. Reason to buy.

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Sales Promotion and Personal Selling

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  1. Sales Promotion and Personal Selling Key Concepts

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

  3. Sales Promotion Advertising Reason to buy Sales Promotion Incentive to buy

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

  5. The Objectives of Sales Promotion

  6. 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 Objectives of Sales Promotion LO1

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

  8. 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

  9. 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

  10. Contests Promotions that require skill or ability to compete for prizes. Sweepstakes Promotions that depend on chance or luck, with free participation. Tools for Consumer Sales Promotion

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

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

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

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

  15. Trade Allowances Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows B2B -- Trade Sales Promotion

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

  17. 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

  18. 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

  19. Forms of Trade Sales Promotion

  20. 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 technically complex. Product is simple to understand. Customers are concentrated. Customers are geographically dispersed. Personal Selling Advertising & Sales Promotion are more important if... Personal Selling is more important if...

  21. Why Personal Selling is Effective • 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

  22. Relationship Selling A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships. Relationship(Consultative)Selling

  23. Traditional Selling and Relationship Selling Traditional Personal 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 LO5 Short-term sales follow-up Long-term sales follow-up Relationship Selling

  24. RepeatSales SuccessiveSales InitialSales Sales Increases Result From Creating Value Traditional Sales Relationship Sales Relationship Selling vs. Traditional Selling

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

  26. Advertising Publicity Direct Mail/ Telemarketing Cold Calling Internet Web Site Referrals Networking Trade Shows/ Conventions Company Records Generating Leads

  27. A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial status. Cold Calling Cold Calling

  28. Recognized need Buying power Receptivity andaccessibility Qualifying Leads

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

  30. Product or service Salesperson must know everything about... Customers Competition Industry The Consultative Salesperson

  31. Developing and Proposing Solutions Sales Proposal Sales Presentation

  32. 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! Powerful Presentations

  33. 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

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

  35. Cell phones Laptops Pagers E-Mail Electronic organizers Internet The Impact of Technology on Personal Selling

  36. Steps in the Selling Process

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