chapter 18 copyright ©2012 by cengage learning inc. all rights reserved 1 lamb, hair, mcdaniel...

Chapter 18 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1

Lamb, Hair, McDaniel

CHAPTER 18

Sales Promotion and Personal Selling

2011-2012

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Sales Promotion

Marketing

communication

activities, other than

advertising, personal

selling, and public

relations, in which a

short-term incentive

motivates a purchase.

SalesPromotion

SalesPromotion

LO1


Sales Promotion

Advertising Reason to buy

Sales Promotion Incentive to buy

LO1


Sales Promotion

sales promotion activities targeting the ultimate consumer.

Consumer Sales Promotion is…

sales promotion activities targeting a marketing channel member, such as a wholesaler or retailer.

Trade Sales Promotion is…


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

LO1


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

Online Sales PromotionOnline Sales Promotion


Coupons and Rebates

CouponCoupon

RebateRebate

PremiumPremium

A certificate that entitles consumersto an immediate price reduction when

they buy the product.

A certificate that entitles consumersto an immediate price reduction when

they buy the product.

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 of the promoted product.

An extra item offered to the consumer, usually in exchange for some proof of

purchase of the promoted product.

LO2


Loyalty Marketing Programs

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 of a particular good or service.

A loyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good or service.

LO2


Coupons and Sweepstakes

ContestsContestsPromotions in which participants usesome skill or ability to compete forprizes.

Promotions in which participants usesome skill or ability to compete forprizes.

SweepstakesSweepstakes Promotions that depend on chance, with free participation.

Promotions that depend on chance, with free participation.

LO2


Sampling

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.

LO2


Methods of Sampling

Direct mailDirect mail

Door-to-door deliveryDoor-to-door delivery

Packaging with another productPackaging with another product

Retail store demonstrationRetail store demonstration

LO2


Point-of-Purchase Promotion

Offers captive audience in retail stores

Can increase sales by as much as 65 percent

LO2


Online Sales Promotion

Effective Types of Online Sales PromotionEffective Types of Online Sales Promotion

Free merchandise

Sweepstakes

Free shipping with purchases

Coupons

LO2


Trade Sales Promotion

Trade AllowancesTrade Allowances

Push MoneyPush Money

TrainingTraining

Free MerchandiseFree Merchandise

Store DemonstrationStore Demonstration

Conventions & Trade ShowsConventions & Trade Shows

LO3


Trade Allowance

LO3

a price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers.

Trade Allowance is…


Push Money

Push MoneyPush MoneyMoney offered to channel

intermediaries to encourage

them to “push” products--

that is, to encourage other

members of the channel to

sell the products.

LO3


Benefits of Trade Promotions

Help manufacturers gain new distributors

Obtain wholesaler and retailer support for consumer sales promotions

Build or reduce dealer inventories

Improve trade relations

LO3


Advantages of Personal Selling

Provides detailed explanation/demonstration of product

Message can be varied according to motivations of each customer

Can be directed only to qualified prospects

Most effective promotion form in obtaining sale and satisfying customer


LO4

Exhibit 18.2Exhibit 18.2Comparison of Personal Selling and Comparison of Personal Selling and Advertising/Sales PromotionAdvertising/Sales Promotion


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

Relationship(Consultative)

Selling

LO5


LO5

Exhibit 18.3Exhibit 18.3Key Differences between Traditional Selling Key Differences between Traditional Selling and Relationship Sellingand Relationship Selling

SOURCE: Robert M. Peterson, Patrick L. Schul, and George H. Lucas, Jr., “Consultative Selling: Walking the Walk in the New Selling Environment,” National Conference on Sales Management, Proceedings, March 1996.


Steps in the Selling Process

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

LO6


Generating Leads

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

LO6


Cold Calling

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

LO6


Qualifying Leads

Receptivity andaccessibility

Receptivity andaccessibility

Buying powerBuying power

Recognized needRecognized need

LO6


Approaching the Customer and Probing Needs

A determination of the

customer’s specific needs

and wants and the range of

options a customer has for

satisfying them.

NeedsAssessment

NeedsAssessment

LO6


The Consultative Salesperson

Product or serviceProduct or service

CustomersCustomers

CompetitionCompetition

IndustryIndustry

Salesperson must knoweverything

about...

Salesperson must knoweverything

about...

LO6


Developing and Proposing Solutions

LO6

a formal written document or professional presentation that outlines how the salesperson’s product or service will meet or exceed the prospect’s needs.

Sales Proposal is…

a formal meeting in which the salesperson presents a sales proposal to a prospective buyer.

Sales Presentation is…


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 saleLO6


Closing the Sale

NegotiateNegotiate

Keep an open mindKeep an open mind

Look for customer signals

Look for customer signals

Tailor to each marketTailor to each market

LO6


Following Up

In the final step of the selling process—follow up—the salesperson must ensure: delivery schedules are met goods or services perform as

promise buyers’ employees are properly

trained to use the products


Exhibit 18.3Exhibit 18.3Relative Amount of Time Spent in the Relative Amount of Time Spent in the Key Steps of the Selling ProcessKey Steps of the Selling Process

Source : Robert Peterson, Patrick Schul, and George H. Lucas Jr., “Consultative Selling: Walking the Walk in the New Selling Enviroment,” National Conference on Sales Management Proceedings, March 1996.


The Impact of Technology on Personal Selling

Cell phonesCell phones

LaptopsLaptops

PagersPagers

E-MailE-Mail

Electronic organizersElectronic organizers

InternetInternetLO6

chapter 18 copyright ©2012 by cengage learning inc. all rights reserved 1 lamb, hair, mcdaniel...

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