1. Sales and Promotions

2. 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. 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. Sales Promotion Sales Promotion Sales Promotion Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase. 1

5. Sales Promotion Objectives 1 Consumer Sales Promotion Trade Sales Promotion Trade Sales Promotion Consumer market Marketing channel Goal = Drive immediate purchase = Influence Behavior

6. Uses of Sales Promotion 1 Immediate purchases Increase trial Boost consumer inventory Encourage repurchase Increase ad effectiveness Encourage brand loyalty

7. Objectives of Sales Promotion Type of Buyer Loyal Customers Competitor’s Customers Brand Switchers Price Buyers Desired Results Reinforce behavior Increase consumption Change 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 Trade deals 1

8. Tools for Consumer Sales Promotion Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion 2

9. 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 product. A cash refund given for the purchase of a product during a specific product. An extra item offered to the consumer, usually in exchange for some proof of purchase. Tools for Consumer Sales Promotion 2

10. Loyalty Marketing Program Loyalty Marketing Program Frequent Buyer Program Frequent Buyer Program A promotional program designed to build long-term, mutually beneficial relationships between a company and key customers. A promotional program designed to build long-term, mutually beneficial relationships between a company and key customers. A loyalty program in which loyal consumers are rewarded for making multiple purchases. A loyalty program in which loyal consumers are rewarded for making multiple purchases. Tools for Consumer Sales Promotion 2

11. Contest Sweepstakes Promotions that require skill or ability to compete for prizes. Promotions that depend on chance or luck, with free participation. Tools for Consumer Sales Promotion 2

12. Sampling A promotional program that allows the consumer the opportunity to try a product or service for free. Tools for Consumer Sales Promotion 2

13. Methods of Sampling Direct mail Door-to-door delivery Packaging with another product Retail store demonstration 2

14. Point-of-Purchase Promotion Goals of Goals of Point-of-Purchase Point-of-Purchase Displays Displays Goals of Goals of Point-of-Purchase Point-of-Purchase Displays Displays Build traffic Advertise the product Induce impulse buying 2

15. Online Sales Promotion Free merchandise Sweepstakes Free shipping Coupons 2

16. Tools for Trade Sales Promotion Trade Allowances Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows 3

17. Trade Allowance A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers. 3

18. Push Money Money offered to channel intermediaries to encourage them to “push” products--that is, to encourage other members of the channel to sell the products. 3

19. The Role of Trade Sales Promotion Improve trade relations Gain new distributors Build or reduce dealer inventories Obtain support for consumer sales promotions 3

20. 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

21. Personal Selling Customers are concentrated Customers are concentrated Product is technically complex There are few customers Product is custom made Product has a high value Personal Selling is more important if... Customers are geographically dispersed Customers are geographically dispersed Product is simple to understand There are many customers Product is standardized Product has a low value Advertising & Sales Promotion are more important if... 4

22. Relationship Selling A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships. 5

23. Relationship Selling versus Traditional Selling Sell advice, assistance, counsel Sell products Traditional Personal Selling 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 5

24. Sales Process The set of steps a salesperson goes through in a particular organization to sell a particular product or service. 6

25. Steps in the Selling Process Generate Leads Qualify Leads Probe Customer Needs Develop Solutions Handle Objections Close the Sale Follow Up 6

26. Time Spent in Key Steps of Selling Process Key Selling StepsTraditional Selling Relationship Selling Generate LeadsHighLow Qualify LeadsLowHigh Probe NeedsLowHigh Develop SolutionsLowHigh Handle ObjectionsHighLow Close the saleHighLow Follow-upLowHigh 6

27. 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

28. Cold Calling A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial status. 6

29. Characteristics of Qualified Leads 6 Recognized need Buying power Receptivity and accessibility

30. Needs Assessment A determination of the customer’s specific needs and wants and the range of options a customer has for satisfying them. 6

31. Probing Needs Product or service Customers and their needs Competition Industry Salesperson must know everything about... Salesperson must know everything about... 6

32. Developing and Proposing Solutions Sales Proposal Sales Presentation 6

33. Powerful Presentations 6 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!

34. 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

35. Closing the Sale Negotiate Keep an open mind Look for customer signals 6

36. Following Up Employees are trained Goods or service perform as promised Goods or service perform as promised Ensure delivery schedules are met 6

37. 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

38. Defining Sales Goals Clear Precise Measurable Time Specific Sales Goals Should Be... Sales Goals Should Be... 7

39. Quota A statement of the individual salesperson’s sales objectives, usually based on sales volume alone but sometimes including key accounts. 7

40. Sales Force Structure Individual client or account Market or industry Marketing function Product line Geographic region 7 Online http://www.amway.com http://www.quixtar.com

41. 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

42. Compensation Plans: Basic Methods Commission Salary Combination Plans Combination Plans Online http://www.marykay.com 7

43. Compensation Plans Straight Commission Straight Commission Straight Salary Straight Salary The salesperson is paid some percentage when a sale is made. The salesperson receives a salary regardless of sales productivity. 7

44. Effective Sales Leaders Effective Sales Leaders... Are assertive Possess ego drive Possess ego strength Take risks Are innovative Have a sense of urgency Are empathetic 7

45. Evaluating the Sales Force: Performance Measures Contribution to profit Calls per order Sales or profits per call Call percentage achieving goals Sales volume 7

46. The Impact of Technology on Personal Selling Cell phones Laptops Pagers E-Mail Electronic organizers 7

47. Benefits of Technology as a Sales Tool 7 Ease administration burden Arm salespeople with valuable information Track sales performance Enable collaboration Make sales management more effective