chapter 16copyright ©2009 cengage learning inc. all rights reserved 1 mktg designed by amy mcguire,...
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Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 1
MKTG
Designed byAmy McGuire, B-books, Ltd.
Prepared byDeborah Baker, Texas Christian University
Lamb, Hair, McDaniel 2008-2009
Sales Promotion and Personal Selling
16
CHAPTER
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 2
Learning Outcomes
Define and state the objectives of sales promotion
Discuss the most common forms of consumer sales promotion
List the most common forms of trade sales promotion
Describe personal selling
LO1
LO2
LO3
LO4
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 3
Learning Outcomes
Discuss the key differences between relationship selling and traditional selling
List the steps in the selling processLO6
LO5
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 4
Define and state the objectives of sales promotion
Sales PromotionSales PromotionLO1
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 5
LO1
Sales Promotion
Marketing
communication
activities, other than
advertising, personal
selling, and public
relations, in which a
short-term incentive
motivates a purchase.
SalesPromotion
SalesPromotion
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 6
LO1
Sales Promotion
Advertising Reason to buy
Sales Promotion Incentive to buy
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 7
LO1
Sales Promotion
ConsumerSales
Promotion
ConsumerSales
Promotion
Trade Sales
Promotion
Trade Sales
Promotion
Consumer market
Marketing channel
Drive immediate purchaseInfluence behavior
Goal
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 8
LO1
Objectives of Sales Promotion
Type of BuyerType of Buyer
Loyal Customers
Competitor’sCustomers
Brand Switchers
Price Buyers
Desired ResultsDesired Results
•Reinforce behavior• Increase consumption•Change purchase timing
•Break loyalty•Persuade to switch
•Persuade to buy your brand more often
•Appeal with low prices
•Supply added value
Sales PromotionSales PromotionExamples Examples
•Loyalty marketing•Bonus packs
•Sampling•Sweepstakes, contests, premiums
•Price-lowering promotion
•Trade deals
•Coupons, price-offpackages, refunds
•Trade deals
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 9
REVIEW LEARNING OUTCOMELO1
The Objectives of Sales Promotion
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 10
Discuss the most common forms of consumer sales
promotion
Tools for Consumer Tools for Consumer Sales PromotionSales PromotionLO2
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 11
Tools for Consumer Sales Promotion
LO2
Coupons and RebatesCoupons and Rebates
PremiumsPremiums
Loyalty Marketing ProgramsLoyalty Marketing Programs
Contests & SweepstakesContests & Sweepstakes
SamplingSampling
Point-of-Purchase PromotionPoint-of-Purchase Promotion
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 12
Tools for Consumer Sales Promotion
LO2
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 period.
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.
An extra item offered to the consumer, usually in exchange
for some proof of purchase.
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 13
Tools for Consumer Sales Promotion
LO2
LoyaltyMarketingProgram
LoyaltyMarketingProgram
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.
FrequentBuyer
Program
FrequentBuyer
Program
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.
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 14
Tools for Consumer Sales Promotion
LO2
ContestsContests Promotions that require skill or ability to compete for prizes.
Promotions that require skill or ability to compete for prizes.
SweepstakesSweepstakes Promotions that depend on chance or luck, with free participation.
Promotions that depend on chance or luck, with free participation.
Online
www.online-sweepstakes.com/
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 15
Tools for Consumer Sales Promotion
LO2
SamplingSamplingA promotional program that allows the consumer the opportunity to try a product or service for free.
A promotional program that allows the consumer the opportunity to try a product or service for free.
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 16
Methods of Sampling
LO2
Direct mailDirect mail
Door-to-door deliveryDoor-to-door delivery
Packaging with another productPackaging with another product
Retail store demonstrationRetail store demonstration
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 17
Point-of-Purchase Promotion
LO2
Build traffic
Advertise the product
Induce impulse buying
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 18
Online Sales Promotion
LO2
Effective Types of Online Sales PromotionEffective Types of Online Sales Promotion
Free merchandise
Sweepstakes
Free shipping with purchases
Coupons
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 19
LO2B
eyond
the
Book
Promotion…Campaign…Onslaught!
SOURCE: Kenneth Hein, “Anatomy of an Onslaught: How Halo 3 Attacked,” Brandweek.com, September 10. 2007.
“Awareness isn’t free.” That’s what one videogame research consultant said about Microsoft’s $10+ million ad campaign for its Xbox 360 game, Halo 3.
Awareness isn’t simple, either. This was a five-phase, 10-month marketing blitz.
Phase 1 – Monday night football ad
Phase 2 – online contest for beta version of the game
Phase 3 – viral marketing
Phase 4 – promotional partnership
Phase 5 – “Believe” campaign
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 20
REVIEW LEARNING OUTCOMELO2
Consumer Sales Promotion
Coupons and rebates
Premiums
Loyalty marketing programs
Contests
Sampling
P-O-P
Online
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 21
List the most common forms of trade sales
promotion
Tools for Trade Sales PromotionTools for Trade Sales PromotionLO3
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 22
Trade Sales PromotionLO3
Trade AllowancesTrade Allowances
Push MoneyPush Money
TrainingTraining
Free MerchandiseFree Merchandise
Store DemonstrationStore Demonstration
Conventions & Trade ShowsConventions & Trade Shows
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 23
Trade AllowanceLO3
TradeAllowance
TradeAllowance
A price reduction offered
by manufacturers to
intermediaries, such as
wholesalers and retailers.
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 24
Push MoneyLO3
Push MoneyPush 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.
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 25
Benefits of Trade PromotionsLO3
Help manufacturers gain new distribution
Obtain wholesaler and retailer support forconsumer sales promotions
Build or reduce dealer inventories
Improve trade relations
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 26
REVIEW LEARNING OUTCOMELO3
Forms of Trade Sales Promotion
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 27
Describe personal selling
Personal SellingPersonal SellingLO4
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 28
LO4
Personal Selling
Personal Selling is more important if...
Customers are concentrated.
Customers are concentrated.
Product is technically complex.
Product is technically complex.
There are few customers.There are few customers.
Product is custom made.Product is custom made.
Product has a high value.Product has a high value.
Customers are geographically dispersed.
Customers are geographically dispersed.
Product is simple to understand.
Product is simple to understand.
There are many customers.There are many customers.
Product is standardized.Product is standardized.
Product has a low value.Product has a low value.
Advertising & Sales Promotion are more important if...
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 29
REVIEW LEARNING OUTCOMELO4
Personal Selling
R Detailed explanation or demonstration
R Variable sales message
R Directed to qualified prospects
R Controllable adjustable selling costs
R More effective than other promotion in obtaining sale and gaining customer satisfaction
PersonalSelling
Advantages
PersonalSelling
Advantages
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 30
Discuss the key differences between relationship selling
and traditional selling
Relationship SellingRelationship SellingLO5
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 31
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.
Relationship(Consultative)
Selling
Relationship(Consultative)
Selling
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 32
Traditional Selling and Relationship Selling
TraditionalTraditionalPersonal SellingPersonal Selling
LO5
Sell advice, assistance, counsel Sell products
Focus on closing sales
Limited sales planning
Discuss product
Assess “product-specific” needs
“Lone wolf” approach
Pricing/product focus
Short-term sales follow-up
Focus on customer’s bottom line
Sales planning is top priority
Build problem-solving environment
Conduct discovery in scope of operations
Team approach
Profit impact and strategic benefit focus
Long-term sales follow-up
Relationship SellingRelationship Selling
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 33
REVIEW LEARNING OUTCOMELO5
Relationship Selling vs. Traditional Selling
InitialSales
RepeatSales
SuccessiveSales
Traditional Sales
Relationship Sales
SalesIncreasesResultFromCreatingValue
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 34
List the steps in the selling process
Steps in the Selling ProcessSteps in the Selling ProcessLO6
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 35
Steps in the Selling Process
LO6
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
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 36
Time Spent in Key Steps of Selling Process
LO6
Key Selling StepsTraditional
Selling
Relationship
Selling
Generate Leads High Low
Qualify Leads Low High
Probe Needs Low High
Develop Solutions Low High
Handle Objections High Low
Close the sale High Low
Follow-up Low High
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 37
Generating Leads
LO6
AdvertisingAdvertising PublicityPublicity Direct Mail/TelemarketingDirect Mail/
Telemarketing
Cold CallingCold Calling Internet Web SiteInternet Web Site ReferralsReferrals
Trade Shows/Conventions
Trade Shows/ConventionsNetworkingNetworking Company
RecordsCompany Records
Online
http://www.linkedin.comhttp://www.ryze.com
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 38
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.
Cold CallingCold Calling
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 39
Qualifying Leads
LO6
Receptivity andaccessibility
Receptivity andaccessibility
Buying powerBuying power
Recognized needRecognized need
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 40
Needs Assessment
LO6
A determination of the
customer’s specific needs
and wants and the range of
options a customer has for
satisfying them.
NeedsAssessment
NeedsAssessment
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 41
The Consultative Salesperson
LO6
Product or serviceProduct or service
CustomersCustomers
CompetitionCompetition
IndustryIndustry
Salesperson must knoweverything
about...
Salesperson must knoweverything
about...
Online
http://www.hoovers.comhttp://www.dnb.com
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 42
Developing and Proposing Solutions
LO6
Sales ProposalSales Proposal
Sales PresentationSales Presentation
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 43
Powerful Presentations
LO6
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!
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 44
Handling Objections
LO6
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
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 45
Closing the Sale
LO6
NegotiateNegotiate
Keep an open mindKeep an open mind
Look for customer signals
Look for customer signals
Tailor to each marketTailor to each market
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 46
Biz Flix
LO6 Family Man
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 47
LO6
The Impact of Technology on Personal Selling
Cell phonesCell phones
LaptopsLaptops
PagersPagers
E-MailE-Mail
Electronic organizersElectronic organizers
InternetInternet
Chapter 16 Copyright ©2009 Cengage Learning Inc. All rights reserved 48
REVIEW LEARNING OUTCOMELO6
Steps in the Selling Process