©2003 south-western chapter 14 version 3e1 chapter sales promotion and personal selling 14 prepared...
TRANSCRIPT
Chapter 14 Version 3e 1©2003 South-Western
chapter
Sales Promotion and Sales Promotion and Personal SellingPersonal Selling
1414
Prepared byPrepared byDeborah BakerDeborah Baker
Texas Christian UniversityTexas Christian University
Chapter 14 Version 3e 2©2003 South-Western
chapter
Learning ObjectivesLearning Objectives
1414
1.1. Define and state the objectives of sales Define and state the objectives of sales promotion.promotion.
2. Discuss the most common forms of 2. Discuss the most common forms of consumer sales promotion.consumer sales promotion.
3. List the most common forms of trade sales 3. List the most common forms of trade sales promotion.promotion.
Chapter 14 Version 3e 3©2003 South-Western
chapter
Learning Objectives (continued)Learning Objectives (continued)
1414
4. Describe personal selling.4. Describe personal selling.
5. Discuss the key differences between 5. Discuss the key differences between relationship selling and traditional selling.relationship selling and traditional selling.
6. List the steps in the selling process.6. List the steps in the selling process.
7.7. Describe the functions of sales Describe the functions of sales management.management.
Chapter 14 Version 3e 4©2003 South-Western
Learning Objective Learning Objective 11
Define and state the Define and state the objectives of sales promotion.objectives of sales promotion.
Chapter 14 Version 3e 5©2003 South-Western
Sales PromotionSales Promotion11
Marketing communication
activities, other than
advertising, personal
selling, and public
relations, in which a
short-term incentive
motivates a purchase.
Chapter 14 Version 3e 6©2003 South-Western
Sales PromotionSales Promotion
ConsumerSales Promotion
ConsumerSales Promotion
Trade Sales Promotion
Trade Sales Promotion
Sales PromotionSales PromotionTargetsTargets
Sales PromotionSales PromotionTargetsTargets
11
Chapter 14 Version 3e 7©2003 South-Western
Uses of Sales PromotionUses of Sales PromotionImmediate PurchasesImmediate Purchases
Increase TrialIncrease Trial
Boost consumer inventoryBoost consumer inventory
Encourage repurchaseEncourage repurchase
Increase ad effectivenessIncrease ad effectiveness
Encourage brand switchingEncourage brand switching
UsesUsesofof
Sales Sales PromotionPromotion
UsesUsesofof
Sales Sales PromotionPromotion
Encourage brand loyaltyEncourage brand loyalty
11
Chapter 14 Version 3e 8©2003 South-Western
Objectives of Sales PromotionObjectives of Sales Promotion11
Type of BuyerType of Buyer Type of BuyerType of Buyer
Loyal CustomersLoyal Customers
Competitor’sCustomersCompetitor’sCustomers
Brand SwitchersBrand Switchers
Price BuyersPrice Buyers
Desired ResultsDesired Results Desired ResultsDesired Results
•Reinforce behavior• Increase consumption•Change timing
•Reinforce behavior• Increase consumption•Change timing
•Break loyalty•Persuade to switch•Break loyalty•Persuade to switch
•Persuade to buy your brand more often•Persuade to buy your brand more often
•Appeal with low prices•Supply added value
•Appeal with low prices•Supply added value
Sales PromotionSales PromotionExamples Examples
Sales PromotionSales PromotionExamples Examples
•Loyalty marketing•Bonus packs•Loyalty marketing•Bonus packs
•Sampling•Sweepstakes, contests, premiums
•Sampling•Sweepstakes, contests, premiums
•Price-lowering promotion•Trade deals
•Price-lowering promotion•Trade deals
•Coupons, price-offpackages, refunds•Trade deals
•Coupons, price-offpackages, refunds•Trade deals
Chapter 14 Version 3e 9©2003 South-Western
Learning Objective Learning Objective 22
Discuss the most common forms Discuss the most common forms of consumer sales promotion.of consumer sales promotion.
Chapter 14 Version 3e 10©2003 South-Western
Tools for Tools for Consumer Sales PromotionConsumer Sales Promotion
Coupons and RebatesCoupons and Rebates
PremiumsPremiums
Loyalty Marketing ProgramsLoyalty Marketing Programs
Contests & SweepstakesContests & Sweepstakes
SamplingSampling
Point-of-Purchase PromotionPoint-of-Purchase Promotion
Popular ToolsPopular Toolsforfor
Consumer SalesConsumer SalesPromotionPromotion
Popular ToolsPopular Toolsforfor
Consumer SalesConsumer SalesPromotionPromotion
22
Chapter 14 Version 3e 11©2003 South-Western
CouponCoupon
RebateRebate
PremiumPremium
A certificate that entitles consumers to an immediate
price reduction.
A certificate that entitles consumers to an immediate
price reduction.
A cash refund given for the purchase of a product during
a specific product.
A cash refund given for the purchase of a product during
a specific product.
An extra item offered to the consumer, usually in exchange
for some proof of purchase.
An extra item offered to the consumer, usually in exchange
for some proof of purchase.
Tools for Tools for Consumer Sales PromotionConsumer Sales Promotion
22
Chapter 14 Version 3e 12©2003 South-Western
LoyaltyMarketingProgram
LoyaltyMarketingProgram
FrequentBuyer
Program
FrequentBuyer
Program
A promotional program designed to build long-term, mutually
beneficial relationships between a company and key customers.
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.
A loyalty program in which loyal consumers are rewarded for making multiple purchases.
Tools for Tools for Consumer Sales PromotionConsumer Sales Promotion
22
Chapter 14 Version 3e 13©2003 South-Western
ContestContest
SweepstakesSweepstakes
Promotions that require skill or ability to compete for prizes.
Promotions that require skill or ability to compete for prizes.
Promotions that depend on chance or luck, with
free participation.
Promotions that depend on chance or luck, with
free participation.
Tools for Tools for Consumer Sales PromotionConsumer Sales Promotion
22
Chapter 14 Version 3e 14©2003 South-Western
SamplingSampling A promotional program that allow
the consumer the opportunity to try a product or service for free.
A promotional program that allow the consumer the opportunity to try a
product or service for free.
Tools for Tools for Consumer Sales PromotionConsumer Sales Promotion
22
Chapter 14 Version 3e 15©2003 South-Western
SamplingSampling
Methodsof
Sampling
Methodsof
Sampling
Direct mailDirect mail
Door-to-door delivery
Door-to-door delivery
Packaging with another productPackaging with another product
Retail store demonstrationRetail store
demonstration
22
Chapter 14 Version 3e 16©2003 South-Western
Tools for Tools for Consumer Sales PromotionConsumer Sales Promotion
Goals ofGoals of Point-of-PurchasePoint-of-Purchase
DisplaysDisplays
Goals ofGoals of Point-of-PurchasePoint-of-Purchase
DisplaysDisplays
Build traffic Build traffic
Advertise the productAdvertise the product
Induce impulse buyingInduce impulse buying
22
Chapter 14 Version 3e 17©2003 South-Western
Tools for Tools for Consumer Sales PromotionConsumer Sales Promotion
Free merchandiseFree merchandise
SweepstakesSweepstakes
Free shippingFree shipping
CouponsCoupons
EffectiveTypes ofOn-LineSales
Promotion
EffectiveTypes ofOn-LineSales
Promotion
22
Chapter 14 Version 3e 18©2003 South-Western
Learning Objective Learning Objective
List the most common forms List the most common forms of trade sales promotion.of trade sales promotion.
33
Chapter 14 Version 3e 19©2003 South-Western
Tools for Trade Sales PromotionTools for Trade Sales Promotion
Trade AllowancesTrade Allowances
Push MoneyPush Money
TrainingTraining
Free MerchandiseFree Merchandise
Store DemonstrationStore Demonstration
Conventions & Trade ShowsConventions & Trade Shows
Unique ToolsUnique Toolsforfor
Trade SalesTrade SalesPromotionPromotion
Unique ToolsUnique Toolsforfor
Trade SalesTrade SalesPromotionPromotion
33
Chapter 14 Version 3e 20©2003 South-Western
Trade AllowanceTrade Allowance33
A price reduction offered
by manufacturers to
intermediaries, such as
wholesalers and retailers.
Chapter 14 Version 3e 21©2003 South-Western
Push MoneyPush Money33
Money offered to channel
intermediaries to encourage
them to “push” products--
that is, to encourage other
members of the channel to
sell the products.
Chapter 14 Version 3e 22©2003 South-Western
The Role of The Role of Trade Sales PromotionTrade Sales Promotion
33
Improve trade relations
Gain new distributors
Build or reducedealer inventories
Obtain support forconsumer sales promotions
Chapter 14 Version 3e 23©2003 South-Western
Learning Objective Learning Objective
Describe personal selling.Describe personal selling.
44
Chapter 14 Version 3e 24©2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling Provides a detailed explanation
or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
44
Chapter 14 Version 3e 25©2003 South-Western
Personal SellingPersonal Selling
Customers are concentrated
Customers are concentrated
There are few customersThere are few customers
Product is technically complex
Product is technically complex
Product is custom madeProduct is custom made
Product has a high valueProduct has a high value
Personal Selling is more important if...
Customers are geographically dispersed
Customers are geographically dispersed
There are many customersThere are many customers
Product is simple to understand
Product is simple to understand
Product is standardizedProduct is standardized
Product has a low valueProduct has a low value
Advertising & Sales Promotion are more important if...
44
Chapter 14 Version 3e 26©2003 South-Western
Learning Objective Learning Objective
Discuss the key differences Discuss the key differences between relationship selling between relationship selling
and traditional selling.and traditional selling.
55
Chapter 14 Version 3e 27©2003 South-Western
Relationship SellingRelationship Selling
A sales practice that
involves building,
maintaining, and enhancing
interactions with customers
in order to develop long-
term satisfaction through
mutually beneficial
partnerships.
55
Chapter 14 Version 3e 28©2003 South-Western
Relationship SellingRelationship Selling
Focus:Focus:
BuildingBuilding
MutualMutual
TrustTrust
Long-TermLong-TermValue-Added Value-Added Benefits to Benefits to
BuyerBuyer
55
Chapter 14 Version 3e 29©2003 South-Western
Relationship Selling Relationship Selling vs. Traditional Sellingvs. Traditional Selling
Sell advice, assistance, counsel Sell advice, assistance, counsel Sell products
TraditionalTraditionalPersonal SellingPersonal Selling Relationship SellingRelationship Selling
Focus on closing salesFocus on closing sales
Limited sales planningLimited sales planning
Discuss productDiscuss product
Assess “Product-specific” needsAssess “Product-specific” needs
“Lone wolf” approach“Lone wolf” approach
Pricing/product focusPricing/product focus
Short-term sales follow-up Short-term sales follow-up
Focus on customer’s bottom lineFocus on customer’s bottom line
Sales planning is top prioritySales planning is top priority
Build problem-solving environmentBuild problem-solving environment
Conduct discovery in scope of operationsConduct discovery in scope of operations
Team approachTeam approach
Profit impact and strategic benefit focusProfit impact and strategic benefit focus
Long-term sales follow-up Long-term sales follow-up
55
Chapter 14 Version 3e 30©2003 South-Western
Learning Objective Learning Objective 66
List the steps in the selling process.List the steps in the selling process.
Chapter 14 Version 3e 31©2003 South-Western
Sales ProcessSales Process
The set of steps a
salesperson goes through
in a particular organization
to sell a particular
product or service.
66
Chapter 14 Version 3e 32©2003 South-Western
Steps in the Selling ProcessSteps in the Selling Process66
Generate LeadsGenerate Leads
Qualify LeadsQualify Leads
Probe Customer NeedsProbe Customer Needs
Develop SolutionsDevelop Solutions
Handle ObjectionsHandle Objections
Close the SaleClose the Sale
Follow UpFollow Up
Basic StepsBasic Stepsin thein the
Personal SellingPersonal SellingProcessProcess
Basic StepsBasic Stepsin thein the
Personal SellingPersonal SellingProcessProcess
Chapter 14 Version 3e 33©2003 South-Western
Generating LeadsGenerating Leads
Cold CallingCold CallingAdvertisingAdvertising PublicityPublicity Direct Mail/TelemarketingDirect Mail/
Telemarketing
Trade Shows/Conventions
Trade Shows/Conventions
Web Sites/Internet
Web Sites/Internet ReferralsReferrals NetworkingNetworking
Company Records
Company Records
Sources ofSources ofSales LeadsSales LeadsSources ofSources of
Sales LeadsSales Leads
66
Chapter 14 Version 3e 34©2003 South-Western
Cold CallingCold Calling
A form of lead generation in
which the salesperson
approaches potential
buyers without any prior
knowledge of the
prospects’ needs or
financial status.
66
Chapter 14 Version 3e 35©2003 South-Western
Qualifying LeadsQualifying Leads
Recognized NeedRecognized Need
Buying PowerBuying Power
Receptivity & Accessibility
Receptivity & Accessibility
Characteristics ofCharacteristics ofQualified LeadsQualified Leads
Characteristics ofCharacteristics ofQualified LeadsQualified Leads
66
Chapter 14 Version 3e 36©2003 South-Western
Probing NeedsProbing Needs
Product or serviceProduct or service
Salesperson must knoweverything
about...
Salesperson must knoweverything
about...
Customers and their needsCustomers and their needs
CompetitionCompetition
IndustryIndustry
66
Chapter 14 Version 3e 37©2003 South-Western
Needs AssessmentNeeds Assessment
A determination of the
customer’s specific needs
and wants and the range
of options a customer has
for satisfying them.
66
Chapter 14 Version 3e 38©2003 South-Western
Developing and Developing and Proposing SolutionsProposing Solutions
66
Sales ProposalSales Proposal
Sales PresentationSales Presentation
Chapter 14 Version 3e 39©2003 South-Western
Handling ObjectionsHandling Objections66
Handling Handling ObjectionsObjections
Handling Handling ObjectionsObjections
Use the objection to close the sale
Use the objection to close the sale
Anticipate specific objections
Anticipate specific objections
View objections as requests for information
View objections as requests for information
Chapter 14 Version 3e 40©2003 South-Western
Closing the SaleClosing the Sale66
Closing Closing the Salethe Sale
Closing Closing the Salethe Sale
NegotiateNegotiate
Keep an open mindKeep an open mind
Look for customer signals
Look for customer signals
Chapter 14 Version 3e 41©2003 South-Western
Following UpFollowing Up66
ResponsibilitiesResponsibilitiesinin
Following UpFollowing Up
ResponsibilitiesResponsibilitiesinin
Following UpFollowing Up
Employees are trainedEmployees are trained
Goods or service performas promised
Goods or service performas promised
Ensure delivery schedules are metEnsure delivery
schedules are met
Chapter 14 Version 3e 42©2003 South-Western
Learning Objective Learning Objective
Describe the functions Describe the functions of sales management.of sales management.
77
Chapter 14 Version 3e 43©2003 South-Western
Sales Management Sales Management ResponsibilitiesResponsibilities
Evaluate sales forceEvaluate sales force
Compensate and motivatesales force
Compensate and motivatesales force
Recruit and trainsales force
Recruit and trainsales force
Determine sales force structure
Determine sales force structure
Define sales goals andsales process
Define sales goals andsales process
Tasks of Tasks of Sales ManagementSales Management
Tasks of Tasks of Sales ManagementSales Management
77
Chapter 14 Version 3e 44©2003 South-Western
Defining Sales GoalsDefining Sales Goals77
ClearClear
Sales GoalsShould Be...Sales GoalsShould Be...
PrecisePrecise
MeasurableMeasurable
Time SpecificTime Specific
Chapter 14 Version 3e 45©2003 South-Western
QuotaQuota
A statement of the
individual salesperson’s
sales objectives, usually
based on sales volume
alone but sometimes
including key accounts.
77
Chapter 14 Version 3e 46©2003 South-Western
Sales Force StructureSales Force Structure77
CommonCommonSalesSales
OrganizationOrganizationStructuresStructures
CommonCommonSalesSales
OrganizationOrganizationStructuresStructures
Individual client or account
Individual client or account
Market or IndustryMarket or Industry
Marketing FunctionMarketing Function
Product LineProduct Line
Geographic RegionGeographic Region
Chapter 14 Version 3e 47©2003 South-Western
Training the Sales ForceTraining the Sales Force77
Training Training includes...includes...
Training Training includes...includes...
Nonselling dutiesNonselling duties
Industry and customer characteristics
Industry and customer characteristics
Product knowledgeProduct knowledge
Selling techniquesSelling techniques
Company policies and practice
Company policies and practice
Chapter 14 Version 3e 48©2003 South-Western
Compensation PlansCompensation Plans77
CommissionCommission
CombinationPlans
CombinationPlans
SalarySalary
BasicBasicCompensation Compensation
MethodsMethods
BasicBasicCompensation Compensation
MethodsMethods
Chapter 14 Version 3e 49©2003 South-Western
Compensation PlansCompensation Plans77
StraightCommission
StraightCommission
StraightSalary
StraightSalary
The salesperson is paid some percentage when a sale is made. The salesperson is paid some percentage when a sale is made.
The salesperson receives a salary regardless of sales productivity.
The salesperson receives a salary regardless of sales productivity.
Chapter 14 Version 3e 50©2003 South-Western
Effective Sales LeadersEffective Sales Leaders77
Effective Sales LeadersEffective Sales Leaders......Effective Sales LeadersEffective Sales Leaders......
Are assertive Are assertive
Possess ego drivePossess ego drive
Possess ego strengthPossess ego strength
Take risksTake risks
Are innovativeAre innovative
Have a sense of urgencyHave a sense of urgency
Are empatheticAre empathetic
Chapter 14 Version 3e 51©2003 South-Western
PerformancePerformanceMeasuresMeasures
PerformancePerformanceMeasuresMeasures
Evaluating the Sales ForceEvaluating the Sales Force
Contribution to ProfitContribution to Profit
Calls per OrderCalls per Order
Sales or Profits per CallSales or Profits per Call
Call Percentage Achieving GoalsCall Percentage Achieving Goals
Sales VolumeSales Volume
77
Chapter 14 Version 3e 52©2003 South-Western
The Impact of Technology The Impact of Technology on Personal Sellingon Personal Selling
77
Laptop computer linkLaptop computer link
Mobile telephonesMobile telephones
PagersPagers
Personal data assistantsPersonal data assistants
E-MailE-Mail
InternetInternet
Sales ForceSales ForceAutomationAutomationSales ForceSales ForceAutomationAutomation