Lesson 7.1 – Understanding Sales

Sales Intro to Promotion & Sales Sales: LESSON 7.1 Intro to Promotion & Sales Sales Sales: The process of determining customer needs and wants through planned, personalized communication intended to influence purchase decisions and ensure satisfaction Action It is the exchange of goods and services from producers to consumers for a price

Sales Sales Examples in SEM Intro to Promotion & Sales LESSON 7.1 Intro to Promotion & Sales Sales Sales Examples in SEM Selling group tickets to a play Negotiating an event contract with a facility or venue A college athletic department soliciting donations from alumni to fund scholarship opportunities Selling an event sponsorship package

Sales Why is selling important? Intro to Promotion & Sales LESSON 7.1 Intro to Promotion & Sales Sales Why is selling important? Selling is the revenue-producing element of the marketing process Sales is the only revenue-producing function for an organization Selling helps customers make informed buying decisions Results in customer satisfaction and repeat business

Sales Intro to Promotion & Sales LESSON 7.1 Intro to Promotion & Sales Sales The process is a two-way communication between a representative of the company and the customer Personal selling is the only form of sales that involves direct contact between the sales professional and potential customer 1. Personal Selling: Any person-to-person communication in which the seller has an opportunity to influence the consumer’s buying decisions Action

Personal Selling Intro to Promotion & Sales LESSON 7.1 Intro to Promotion & Sales Personal Selling In a non-traditional example of personal selling, members of the Western Kentucky University football team go door-to-door selling football tickets. In that season, players sold 300 season tickets and the Hilltoppers enjoyed the second-highest average attendance figures in school history. Student attendance has increased more than 80 percent from 2006 to 2008.

Benefits To Personal Selling LESSON 7.1 Intro to Promotion & Sales Benefits To Personal Selling The Sales Person can immediately tailor the sales message based on the prospective customer’s response, feedback and buying signals Allows for the communication of specific information relating the customer needs than any other form of promotion c) Complex information can be explained

Key Advantages To Personal Selling LESSON 7.1 Intro to Promotion & Sales Key Advantages To Personal Selling d) The likelihood of the customer paying attention to the information being shared is greatly increased because of the face-face communication e) Provides the best opportunity to establish solid working relationships, enhancing the probability of developing long term relationships with consumers

Personal Selling Categories LESSON 7.1 Intro to Promotion & Sales Sales Personal Selling Categories Inside sales professionals sell company products and services over the phone, Internet, or other means of communication from inside the company’s office

Inside Sales Intro to Promotion & Sales LESSON 7.1 Intro to Promotion & Sales Inside Sales Inside sales professionals make outgoing calls to prospective customers or receive incoming orders or phone calls pertaining to company products or services According to a report from two Illinois State University researchers, the most successful collegiate athletic departments are making as many as 3,500 outgoing phone calls each week to try to sell more tickets, an effort that their research suggests can generate $1 million or more in additional revenue for the school’s athletics program

Inside Sales Often utilized for products and services that require minimal investment levels, such as smaller ticket packages In most instances, an inside sales staff consists primarily of telemarketers Telemarketers: Sales professionals that make outbound telephone calls to prospective customers in order to sell company products and services

Personal Selling Categories LESSON 7.1 Intro to Promotion & Sales Sales Personal Selling Categories Outside sales professionals typically communicate with customers in person

Also referred to as “field sales” or “external sales” LESSON 7.1 Intro to Promotion & Sales Outside Sales Many ticket sales and most sponsorship sales opportunities are most effective as outside sales calls Also referred to as “field sales” or “external sales”

Personal Selling Categories LESSON 7.1 Intro to Promotion & Sales Sales Personal Selling Categories Box office sales professionals are located on site at a venue or facility who sell to customers in person at the event or to future events

Box Office Sales Intro to Promotion & Sales LESSON 7.1 Intro to Promotion & Sales Box Office Sales Movie theaters sell nearly all tickets through box office sales, although more and more consumers are buying movie tickets in advance online through services like Fandango

Sales Sales Methods Intro to Promotion & Sales Feature-Benefit Selling LESSON 7.1 Intro to Promotion & Sales Sales Sales Methods Feature-Benefit Selling Full-Menu Marketing E-Commerce Direct Mail

Sales Intro to Promotion & Sales LESSON 7.1 Intro to Promotion & Sales Sales For example, many professional sports teams sell tickets in club seating levels The seats often have distinct product features that set them apart from general seating, such as wider seats or video screens on the seats in front of them Action Product attributes (features): The basic, physical, and extended characteristics of an item

Sales Intro to Promotion & Sales Customer Benefits: LESSON 7.1 Intro to Promotion & Sales Sales Action Customer Benefits: The advantages or personal satisfaction a customer will get from a good or service Comfort, convenience, and space are benefits of club seating

Sales Intro to Promotion & Sales LESSON 7.1 Intro to Promotion & Sales Sales A company may have purchased club seats to entertain clients and would want to reward them for their business by allowing them to sit in the most comfortable seats possible at the game or event Action Feature-Benefit Selling: The process involves matching specific product attributes to a customer’s needs and wants

Full Menu Marketing Intro to Promotion & Sales LESSON 7.1 Intro to Promotion & Sales Full Menu Marketing A sales professional working for a minor league sports team may meet with a company and have the ability to offer a small sponsorship, a major sponsorship featuring exclusivity benefits, season tickets, group tickets, VIP tickets, parking or a combination of those options

Sales Intro to Promotion & Sales LESSON 7.1 Intro to Promotion & Sales Sales Any consumer who is a fan of Disney may go online and purchase DVDs, plush toys, action figures, watches, ornaments or many other products E-Commerce: Internet selling is a form of e-commerce and is executed using the Internet Action

Sales Intro to Promotion & Sales LESSON 7.1 Intro to Promotion & Sales Sales Action Characteristically sent to large numbers of prospective customers soliciting orders for company products and services Direct Mail: A sales effort conducted exclusively by mail

Sales To be effective, a direct mail approach must be: LESSON 7.1 Intro to Promotion & Sales Sales To be effective, a direct mail approach must be: Targeted Personal Measurable Testable Flexible

Sales Direct mail examples could include: Intro to Promotion & Sales LESSON 7.1 Intro to Promotion & Sales Sales Direct mail examples could include: Ticket brochures Pocket schedules and posters Fliers & other print media Solicitation letters Alternative

Direct Mail Intro to Promotion & Sales LESSON 7.1 Intro to Promotion & Sales Direct Mail To increase ticket and pay-per-view purchases, World Wrestling Entertainment (WWE) distributed a direct mail piece to 700,000 consumers promoting its annual “SummerSlam” event Said Eddie Hill, SVP of marketing at the WWE, “Direct mail is one of our best targeted tactics”

Direct Mail Intro to Promotion & Sales LESSON 7.1 Intro to Promotion & Sales Direct Mail In an effort to leverage the team’s accomplishment of earning their first NHL Playoffs berth since 2007, the Tampa Bay Lightning utilized a direct mail strategy in 2012 to boost ticket sales by sending 30,000 specially designed postcards to area businesses (the postcards featured each recipient's company name on the name plate above a player's locker in the Lightning locker room)

LESSON 7.1 Intro to Promotion & Sales Direct Mail

LESSON 7.1 REVIEW (ANSWERS) Introduction to Promotion & Sales Define and provide examples of sales Sales is the process of determining customer needs and wants through planned, personalized communication intended to influence purchase decisions and ensure satisfaction. Sales could include selling group tickets to a play, negotiating an event contract with a facility or venue, a college athletic department soliciting donations from alumni to fund scholarship opportunities, selling an event sponsorship package or fulfilling all components of a sponsorship agreement.

LESSON 7.1 REVIEW (ANSWERS) Introduction to Promotion & Sales Identify three personal selling categories Three primary categories of personal selling in sports and entertainment include inside sales, outside sales and box office sales. 3) Identify four sales methods Four common sales methods in SEM include feature-benefit selling, full menu marketing, e-commerce and direct mail.