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

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.

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

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

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.

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.

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.

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

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

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

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

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.

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.

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

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

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!

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 E-Mail Electronic organizers Internet

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.