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Lamb, Hair, McDaniel

Lamb, Hair, McDaniel. CHAPTER 18. Sales Promotion and Personal Selling. Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase. Sales Promotion. Sales Promotion. Type of Buyer.

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Lamb, Hair, McDaniel

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  1. Lamb, Hair, McDaniel CHAPTER 18 Sales Promotion and Personal Selling

  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. 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

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

  5. 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

  6. 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

  7. 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

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

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

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

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

  12. 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 Advertising & Sales Promotion are more important if... Personal Selling is more important if...

  13. 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

  14. 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

  15. Steps in the Selling Process Closing the sale Handling objections Developing and proposing solutions Approaching Customer Qualifying Leads Generating Leads A Continuing Process

  16. 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

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

  18. Ch 18 Discussion Questions • What is sales promotion? Explain how various tools for consumer sales promotion influence behavior. • Explain how various tools for trade sales promotion affect the channel behavior. • What is personal selling? When should we use personal selling over sales promotion or advertising? • Differentiate between relationship selling and personal traditional selling. • Explain the steps involved in Personal Selling.

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