1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Sales Promotion and Personal Selling Prepared by Deborah Baker Texas Christian University 16

2 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Learning Objectives 1.Define and state the objectives of sales promotion 2. Discuss the most common forms of consumer sales promotion 3. List the most common forms of trade sales promotion

3 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Learning Objectives (continued) 4. Describe personal selling 5. Discuss the key differences between relationship selling and traditional selling 6. List the steps in the selling process 7.Describe the functions of sales management

4 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Sales Promotion Objectives 1 Consumer Sales Promotion Trade Sales Promotion Trade Sales Promotion Consumer market Marketing channel Goal = Drive immediate purchase = Influence Behavior

5 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Uses of Sales Promotion 1 Immediate purchases Increase trial Boost consumer inventory Encourage repurchase Increase ad effectiveness Encourage brand loyalty

6 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Tools for Sales Promotion Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion 2 Trade Allowances Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows CONSUMERTRADE

7 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Advantages of Personal Selling 4  Detailed explanation or demonstration  Variable sales message  Directed at qualified prospects  Controllable adjustable selling costs  Effective at obtaining sale and gaining customer satisfaction

8 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Types of Personal Selling Traditional Relationship 6

9 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Steps in the Selling Process Generate Leads Qualify Leads Probe Customer Needs Develop Solutions Handle Objections Close the Sale Follow Up 6

10 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Online Generating Leads Advertising Publicity Direct Mail/ Telemarketing Direct Mail/ Telemarketing Cold Calling Internet Web Site Referrals Trade Shows/ Conventions Trade Shows/ Conventions Networking Company Records 6

11 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Developing and Proposing Solutions Sales Proposal Sales Presentation 6

12 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Handling Objections Use the objection to close the sale Anticipate specific objections View objections as requests for information View objections as requests for information 6

13 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Closing the Sale Negotiate Keep an open mind Look for customer signals 6

14 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Following Up Employees are trained Goods or service perform as promised Goods or service perform as promised Ensure delivery schedules are met 6

15 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Sales Management Responsibilities Evaluate sales force Compensate and motivate sales force Recruit and train sales force Determine sales force structure Define sales goals and sales process 7

16 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Sales Force Structure 5 Numerousways to organize the sales force Numerousways to organize the sales force Geographic Region Marketing Function Market or Industry Client or Account Product Line

17 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Training the Sales Force Training includes... Training includes... Nonselling duties Industry and customer characteristics Industry and customer characteristics Product knowledge Selling techniques Company policies and practice 7

18 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Compensation Plans: Basic Methods Commission Salary Combination Plans Combination Plans Online 7

19 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 16 Evaluating the Sales Force: Performance Measures Contribution to profit Calls per order Sales or profits per call Call percentage achieving goals Sales volume 7