1. 12.1 The Sales Process 12.2 Ticket Sales 12.3 Group and Corporate Sales Chapter 12

2.  A small community can host a huge entertainment event with the right help. ◦ corporate or organizational sponsorship ◦ related events held in conjunction with the concert ◦ tiered ticket prices ◦ affordable campsites ◦ web sit promotion 2 Country Stampede - Financial Boost for Manhattan, Kansas

3. Goals  List the steps involved in the sales process.  Discuss the management skills and knowledge necessary for successful salespeople. 3

4.  selling ◦ the direct, personal communication with prospective customers in order to assess and satisfy their needs with appropriate products and services  personal selling ◦ the sales person becomes the link between the customer and the business 4

5. The six steps of effective selling are: 1.The Pre-Approach 2.The Approach 3.Demonstration 4.Answering questions 5.Closing the sale 6.Follow-up Discussed on following 6 Slides… 5

6.  Salespeople learn about the: ◦ products and services offered ◦ target market ◦ competition  Salespeople must: ◦ be knowledgeable ◦ understand consumer need 6

7.  Contract the Customer ◦ Gain their attention  Listen carefully to consumer needs  Create a favorable impression on consumer  Create lasting relationship 7

8.  Enthusiastically present product  Make sure to address consumer needs  Highlight benefits and features  Approach consumer about purchasing item 8

9.  Consumer voice any objections, questions, or concerns about the product  Questions = Considering the purchase?  Provide additional info to help persuade their decision 9

10.  Offer discounts or incentive to buy today  Suggest additional items for purchase  suggestion selling ◦ asking customers if they want to purchase related products Would you like to “Super-Size it?” “Make that a combo?” Do you need case or screen protector for your new phone? 10

11.  Long-Lasting Relationships  Contact consumer  Are they satisfied?  Do they additional needs?  Improved customer service from feedback 11

12.  Advantage of Personal Selling ◦ opportunity to address any concerns that may be causing hesitation  Knowledgeable Salespeople ◦ Offer information about the product ◦ Demonstrate the product ◦ Make comparisons with similar products ◦ Tell stories about personal experiences with product ◦ Answer questions about the product 12

13.  Benefits of Feedback ◦ Enables sellers to improve on future sales strategies  Feedback from Consumers ◦ Level of satisfaction during ◦ Suggestions to make buying process better/easier for the consumer  Disadvantage of Personal Selling ◦ High costs, time commitment per customer & required skills and trainings for employees 13

14.  Personal selling is effective for: ◦ expensive, complex products ◦ markets with a few large customers ◦ unfamiliar, unique products ◦ customers in a limited area ◦ complicated, long decision-making processes ◦ customers who expect personal attention 14

15.  Explain why personal selling is necessary when selling expensive items like luxury suites at a professional football stadium. ◦ Customers take more time to make purchasing decisions related to more expensive items. ◦ They expect more personal attention from the sales associates since they are selling the money. 15

16.  Salespeople need to ◦ effectively manage themselves, customers & info  be motivated  use time wisely  be emotional and physically stable to deal with public ◦ Continued Education / Professional Development is helpful to keep current in their profession ◦ Know & understand the following… 16

17.  Salespeople need a thorough knowledge of the product or service they sell. ◦ Successful salespeople know all parts of the marketing mix (4 P’s) ◦ Sources of info:  Info sheets, product manuals  Special trainings on product & on new sales strategies ◦ Salespeople must effectively communicate:  Product info including benefits & unique features 17

18.  Know the customer and their needs in order to present the most appropriate products.  cold calling ◦ contacting potential customers randomly without researching their needs first  Marketing-oriented businesses do not depend on CC.  leads ◦ customer contact info obtained from market research ◦ customers have shown interest or a in target market  Research: who needs the product, resources they have to purchase product and authority to make the purchase 18

19.  Understand Customer Decisions ◦ A five-step decision-making process for purchases 1.recognition of a need for a product or service 2.search for info about alternative products or services 3.evaluate all options (best fits their needs) 4.a decision is reached and a purchase occurs 5.evaluate the decision to determine if needs were met  Manage Customer Information ◦ customer management  building a customer base  carefully scheduling time spent with customers  “Time is Money” ~ too much time spent with one could be lost sales with another. 19

20.  Salespeople must be able to: ◦ explain how their products are unique (different) from the competition’s ◦ provide solid evidence that the product is superiority  Consumers want to buy the most satisfying (the best) product at the best price. 20

21.  List three things successful salespeople must understand. ◦ Salespeople must understand:  the product/service they are selling,  their customers  and their competition. 21

22. Goals  Explain the difference between ticket brokers and ticket scalpers.  Describe the ticket economy and strategies for getting highly sought tickets. 22

23. High Demand = High Prices  ticket brokers ◦ registered businesses that legally buy and sell tickets to a variety of events and guarantee ticket authenticity ◦ Typically online exchanges ◦ Reputable T.B. should be members of: National Association of Ticket Brokers & Better Business Bureau ◦ Offer wide array of tickets to reach more consumers 23

24.  ticket brokers ◦ Operate businesses that depend on customer contact ◦ Some brokers have contracts to obtain the best tickets before they are put up for sale. (unethical & unfair)  Try to monopolize the ticket market  Offer bribes to people in control of ticket supply (box-office employees, venue managers, promoters, ticket agents) ◦ Ticketmaster ◦ Ticketmaster – Strategies to fight back  Different ticket release times, during week rather than Sat.  VIP club members receive password to early release time 24

25.  ticket scalpers ◦ sell tickets to major sporting events, often outside the venue on the day of the event, at inflated prices ◦ illegal in some states ◦ “the practice of buying and selling event tickets by private citizens, rather than by the sponsoring venue or organization.” ◦ Laws about ticket scalping vary by state, and there is no federal law that prohibits the practice. ◦ Approx.16 of the 50 states have a law that makes it illegal. ◦ Seven states - including PA - require a special license to resell tickets. 25

26.  When ticket scalping laws are broken, consequences are often not enforced. ◦ Police officers handle the offense according to severity. ◦ Scalping tickets is a nonviolent crime without a victim  It is a crime where both parties are agreeable to the transaction. Therefore, cops are often hesitant to get involved. ◦ Ticket scalping laws became even more difficult to enforce when the practice became widespread online.  Internet sites such as StubHub, TicketsNow and RazorGator  are regulated, tax-paying websites that capitalize on fans’ eagerness to purchase tickets at any cost.  If the official website for the event sells out, these sites promote themselves as a second chance. Efforts to make scalping illegal are overshadowed by such websites. http://www.wisegeek.com/is-ticket-scalping-illegal.htm 26

27.  Some events make fans think that a “once-in-a- lifetime” event is worth a large ticket price. ◦ Sellouts with the hour ◦ Forming lines the night before tickets go on sale ◦ Season Tickets = Status Symbol  When season ticket holders for the Green Bay Packers pass away, they can bequeath (leave, hand-down) the tickets to someone in their will. 27

28.  Explain why scalping is illegal in some states. ◦ It involves unfair pricing for consumers. 28

29.  Ticketmaster controls ticket sales for most venues in the country. ◦ Telephone, Internet, Box-Offices ◦ Saturdays at 9am or 10am ◦ Greatest sales happen within opening hour  Average consumers compete with scalpers and corporate sponsors for tickets. 29

30.  Buy over the Internet.  Pre-register your credit card and mailing address on the web site before the on-sale date.  Log on to the site a few minutes early.  If the concert sells out, check back with the website for a few days to see if additional dates were added.  Try again the day of the show. 30

31.  70,000 tickets are distributed for the SuperBowl ◦ 500 tickets available by lottery ◦ overpriced hotel packages offer tickets through NFL-approved tour operators & travel agencies ◦ ticket brokers sell tickets  NATB Standard for Super Bowl Tickets ◦ If a legitimate broker fails to deliver the tickets, they must provide a refund that is 200% of the ticket price.  The FBI receives reports of fraudulent ticket sales for the Super Bowl. ◦ Consumers should never send cash payments or use wire transfer services for tickets. 31

32.  By 2007, movie theater operators had planned to screen live sports events in 3D. ◦ lure sports fans to entertainment options ◦ to boost weekday theater ticket sales ◦ team gear sold in lobby ◦ fans encouraged to cheer as if they were at ball park  Ticket sales dropped in 2005 due to: ◦ lackluster films, ◦ competition from other entertainment options ◦ and increased in-home entertainment technology 32

33.  Consumers no longer have to wait in long lines.  Purchase tickets from the convenience of home.  Many people buy tickets and resell them on online auction sites.  Electronic Ticket Distribution 33  How has the Internet changed the way that tickets are sold for sports & entertainment events?

34. Goals  Explain sales strategies for attracting groups to sports and entertainment venues.  Describe how corporations use sports and entertainment to motivate employees and impress clients. 34

35. Appealing to Groups ◦ Games played during the week are less likely to sell out. ◦ Special Group/Corporate promotions used to fill seats. ◦ group packages  special prices for group purchases of 15 or more tickets ◦ Groups: churches, senior citizens, schools, scouts, youth teams, student organizations, businesses, etc. ◦ Group recognition during announcements ◦ Promos build future customer base 35

36.  University alumni who make substantial contributions to athletic departments and scholarship funds may receive perks.  easier access to tickets  special seating at sporting events  season tickets  suites  naming honors on suites or fields 36

37.  Explain how group packages can help fill entertainment venues. ◦ Group package deals provide incentive for groups to attend events because they receive a discount and at the same time get to enjoy the fellowship of the group. 37

38.  Corporations might use sporting event tickets in a variety of ways. ◦ to promote bonding/teamwork of employees ◦ as a performance reward ◦ to entertain clients, impress the client 38

39.  luxury boxes (luxury suites) ◦ fancy rooms inside stadiums and arenas that allow corporate executives and wealthy private individuals to entertain clients and friends while watching the game. ◦ high in the stands ◦ near the press-box level ◦ close-circuit televisions (for close-ups) ◦ good source of additional revenue for stadium 39

40. ◦ premium stadium seats that provide another source of high revenue for owners. ◦ vary by venue, but usually:  cushy and roomy  provide a good view of the action  often comes with added benefits  Special access to indoor air-conditioned areas  Access to special restaurants, merchandise stands and lounge areas not available to regular ticket holders. 40 club seats club seats

41.  How do corporations outside of the sports and entertainment industries use sports and entertainment events for business purposes? ◦ Corporations use sports and entertainment events to entertain clients, reward employees, and encourage employee team bonding, 41