1. CHAPTER 18 Sales Promotion and Personal Selling
Lamb, Hair, McDaniel
Chapter 16 Sales Promotion and Personal Selling
CHAPTER 18
Sales Promotion
and Personal Selling

2. Sales Promotion Sales Promotion
Chapter 16 Sales Promotion and Personal Selling
Sales Promotion
Sales Promotion
Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase.

3. Objectives of Sales Promotion
Chapter 16 Sales Promotion and Personal Selling
Objectives of Sales Promotion
Type of Buyer
Loyal Customers
Competitor’s
Customers
Brand Switchers
Price Buyers
Desired 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 Promotion Examples
Loyalty marketing
Bonus packs
Sampling
Sweepstakes, contests, premiums
Price-lowering promotion
Trade deals
Coupons, price-off packages, refunds

4. Tools for Consumer Sales Promotion
Chapter 16 Sales Promotion and Personal Selling
Tools for Consumer Sales Promotion
Coupons and Rebates
Premiums
Loyalty Marketing Programs
Contests & Sweepstakes
Sampling
Point-of-Purchase Promotion

5. Tools for Consumer Sales Promotion
Chapter 16 Sales Promotion and Personal Selling
Tools for Consumer Sales Promotion
Coupon
Rebate
Premium
A certificate that entitles consumers to an immediate price reduction.
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.

6. Tools for Consumer Sales Promotion
Chapter 16 Sales Promotion and Personal Selling
Tools for Consumer Sales Promotion
Loyalty
Marketing
Program
A promotional program designed
to build long-term, mutually beneficial relationships between
a company and key customers.
Frequent
Buyer
A loyalty program in which loyal consumers are rewarded for
making multiple purchases.

7. Tools for Consumer Sales Promotion
Chapter 16 Sales Promotion and Personal Selling
Tools for Consumer Sales Promotion
Contests
Promotions that require skill or ability to compete for prizes.
Sweepstakes
Promotions that depend on chance or luck, with free participation.

8. Tools for Consumer Sales Promotion
Chapter 16 Sales Promotion and Personal Selling
Tools for Consumer Sales Promotion
Sampling
A promotional program that allows the consumer the opportunity to try a product or service for free. 8

9. Point-of-Purchase Promotion
Chapter 16 Sales Promotion and Personal Selling
Point-of-Purchase Promotion
Build traffic
Advertise the product
Induce impulse buying

10. Online Sales Promotion
Chapter 16 Sales Promotion and Personal Selling
Online Sales Promotion
Effective Types of Online Sales Promotion
Free merchandise
Sweepstakes
Free shipping with purchases
Coupons

11. Conventions & Trade Shows
Trade Sales Promotion
Chapter 16 Sales Promotion and Personal Selling
Trade Allowances
Push Money
Training
Free Merchandise
Store Demonstration
Conventions & Trade Shows

12. Personal Selling Personal Selling is more important if...
Chapter 16 Sales Promotion and Personal Selling
Personal Selling
Personal Selling is more important if...
Advertising & Sales Promotion are more important if...
Customers are
concentrated.
Product is technically complex.
There are few customers.
Product is custom made.
Product has a high value.
geographically dispersed.
Product is simple to understand.
There are many customers.
Product is standardized.
Product has a low value.

13. Relationship (Consultative) Selling
Relationship Selling
Chapter 16 Sales Promotion and Personal Selling
Relationship (Consultative) Selling
A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.

14. Traditional Selling and Relationship Selling
Chapter 16 Sales Promotion and Personal Selling
Traditional
Personal 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 Selling

15. Steps in the Selling Process
Chapter 16 Sales Promotion and Personal Selling
Steps in the Selling Process
Closing the sale
Handling objections
Developing and proposing solutions
Approaching Customer
Qualifying Leads
Generating Leads
A Continuing Process

16. Powerful Presentations
Chapter 16 Sales Promotion and Personal Selling
Powerful Presentations
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!

17. The Impact of Technology on Personal Selling
Chapter 16 Sales Promotion and Personal Selling
The Impact of Technology on Personal Selling
Cell phones
Laptops
Pagers
Electronic organizers
Internet

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.