1. Chapter 12 Copyright ©2013 by Cengage Learning Inc. All rights reserved 1 Lamb, Hair, McDaniel CHAPTER 18 Sales Promotion and Personal Selling 2012-2013 © iStockphoto.com/Ejla

2. Define and state the objectives of sales promotion Discuss the most common forms of consumer sales promotion List the most common forms of trade sales promotion Learning Outcomes 123 © 2013 by Cengage Learning Inc. All Rights Reserved. 2

3. Describe personal selling Discuss the key differences between relationship selling and traditional selling List the steps in the selling process Learning Outcomes 564 © 2013 by Cengage Learning Inc. All Rights Reserved. 3

4. Define and state the objectives of sales promotion Sales Promotion 1 © 2013 by Cengage Learning Inc. All Rights Reserved. 4

5. Sales Promotion Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase. 1 © 2013 by Cengage Learning Inc. All Rights Reserved. 5

6. Sales Promotion AdvertisingReason to buy Sales PromotionIncentive to buy © 2013 by Cengage Learning Inc. All Rights Reserved. 6 1

7. Sales Promotion sales promotion activities targeting the ultimate consumer. Consumer Sales Promotion is… sales promotion activities targeting a marketing channel member, such as a wholesaler or retailer. Trade Sales Promotion is… © 2013 by Cengage Learning Inc. All Rights Reserved. 7 1

8. 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 Trade deals © 2013 by Cengage Learning Inc. All Rights Reserved. 8 1

9. Discuss the most common forms of consumer sales promotion Tools for Consumer Sales Promotion 2 © 2013 by Cengage Learning Inc. All Rights Reserved. 9

10. Tools for Consumer Sales Promotion Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion Online Sales Promotion © 2013 by Cengage Learning Inc. All Rights Reserved. 10 2

11. Coupons and Rebates Coupon Rebate Premium A certificate that entitles consumers to an immediate price reduction when they buy the product. A certificate that entitles consumers to an immediate price reduction when they buy the product. A cash refund given for the purchase of a product during a specific period. 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 of the promoted product. © 2013 by Cengage Learning Inc. All Rights Reserved. 11 2

12. Loyalty Marketing Programs Loyalty Marketing Program Loyalty Marketing 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. Frequent Buyer Program Frequent Buyer Program A loyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good or service. A loyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good or service. © 2013 by Cengage Learning Inc. All Rights Reserved. 12 2

13. Coupons and Sweepstakes Contests Promotions in which participants use some skill or ability to compete for prizes. Promotions in which participants use some skill or ability to compete for prizes. Sweepstakes Promotions that depend on chance, with free participation. © 2013 by Cengage Learning Inc. All Rights Reserved. 13 2

14. Sampling A promotional program that allows the consumer the opportunity to try a product or service for free. © 2013 by Cengage Learning Inc. All Rights Reserved. 14 2

15. Methods of Sampling Direct mail Door-to-door delivery Packaging with another product Retail store demonstration © 2013 by Cengage Learning Inc. All Rights Reserved. 15 2

16. Point-of-Purchase Promotion  Offers captive audience in retail stores  Can increase sales by as much as 65 percent © 2013 by Cengage Learning Inc. All Rights Reserved. 16 2

17. Online Sales Promotion Effective Types of Online Sales Promotion  Free merchandise  Sweepstakes  Free shipping with purchases  Coupons © 2013 by Cengage Learning Inc. All Rights Reserved. 17 2

18. List the most common forms of trade sales promotion Tools for Trade Sales Promotion 3 © 2013 by Cengage Learning Inc. All Rights Reserved. 18

19. Trade Sales Promotion Trade Allowances Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows © 2013 by Cengage Learning Inc. All Rights Reserved. 19 3

20. Trade Allowance Trade Allowance © 2013 by Cengage Learning Inc. All Rights Reserved. 20 a price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers. 3

21. 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. © 2013 by Cengage Learning Inc. All Rights Reserved. 21 3

22. Benefits of Trade Promotions  Help manufacturers gain new distributors  Obtain wholesaler and retailer support for consumer sales promotions  Build or reduce dealer inventories  Improve trade relations © 2013 by Cengage Learning Inc. All Rights Reserved. 22 3

23. Describe personal selling Personal Selling 4 © 2013 by Cengage Learning Inc. All Rights Reserved. 23

24. Advantages of Personal Selling  Provides detailed explanation/demonstration of product  Message can be varied according to motivations of each customer  Can be directed only to qualified prospects  Can purchase personal selling in small increments  Most effective promotion form in obtaining sale and satisfying customer © 2013 by Cengage Learning Inc. All Rights Reserved. 24 4

25. Exhibit 18.2 Comparison of Personal Selling and Advertising/Sales Promotion © 2013 by Cengage Learning Inc. All Rights Reserved. 25

26. Discuss the key differences between relationship selling and traditional selling Relationship Selling 5 © 2013 by Cengage Learning Inc. All Rights Reserved. 26

27. Relationship Selling Relationship (Consultative) Selling © 2013 by Cengage Learning Inc. All Rights Reserved. A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships. 27 5

28. Exhibit 18.3 Key Differences between Traditional Selling and Relationship Selling SOURCE: Robert M. Peterson, Patrick L. Schul, and George H. Lucas, Jr., “Consultative Selling: Walking the Walk in the New Selling Environment,” National Conference on Sales Management Proceedings, March 1996. © 2013 by Cengage Learning Inc. All Rights Reserved. 28

29. List the steps in the selling process Steps in the Selling Process 6 © 2013 by Cengage Learning Inc. All Rights Reserved. 29

30. Steps in the Selling Process Generate Leads Qualify Leads Probe Customer Needs Develop Solutions Handle Objections Close the Sale Follow Up © 2013 by Cengage Learning Inc. All Rights Reserved. 30 6

31. 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 © 2013 by Cengage Learning Inc. All Rights Reserved. 31 6

32. 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. Cold Calling © 2013 by Cengage Learning Inc. All Rights Reserved. 32 6

33. Qualifying Leads Receptivity and accessibility Buying power Recognized need © 2013 by Cengage Learning Inc. All Rights Reserved. 33 6

34. Approaching the Customer and Probing Needs A determination of the customer’s specific needs and wants and the range of options a customer has for satisfying them. Needs Assessment © 2013 by Cengage Learning Inc. All Rights Reserved. 34 6

35. The Consultative Salesperson Product or service Customers Competition Industry Salesperson must know everything about... Salesperson must know everything about... © 2013 by Cengage Learning Inc. All Rights Reserved. 35 6

36. Developing and Proposing Solutions a formal written document or professional presentation that outlines how the salesperson’s product or service will meet or exceed the prospect’s needs. Sales Proposal is… a formal meeting in which the salesperson presents a sales proposal to a prospective buyer. Sales Presentation is… © 2013 by Cengage Learning Inc. All Rights Reserved. 36 6

37. Handling Objections  View objections as requests for information  Anticipate specific objections  Investigate the objection with the customer  Be aware of competitors’ products  Stay calm  Use the objection to close the sale © 2013 by Cengage Learning Inc. All Rights Reserved. 37 6

38. Closing the Sale Negotiate Keep an open mind Look for customer signals Tailor to each market © 2013 by Cengage Learning Inc. All Rights Reserved. 38 6

39. Following Up In the final step of the selling process— follow up—the salesperson must ensure: delivery schedules are met goods or services perform as promise buyers’ employees are properly trained to use the products © 2013 by Cengage Learning Inc. All Rights Reserved. 39 6

40. Exhibit 18.4 Relative Amount of Time Spent in the Key Steps of the Selling Process Source : Robert Peterson, Patrick Schul, and George H. Lucas Jr., “Consultative Selling: Walking the Walk in the New Selling Enviroment,” National Conference on Sales Management Proceedings, March 1996. © 2013 by Cengage Learning Inc. All Rights Reserved. 40

41. The Impact of Technology on Personal Selling Cell phones Laptops Pagers E-Mail Electronic organizers Internet © 2013 by Cengage Learning Inc. All Rights Reserved. 41 6

42. Chapter 18 Video Scholfield Honda Scholfield Honda is committed to controlling the sales environment to give customers and potential customers the information they need to encourage selling cars at Scholfield Honda. http://www.cengage.com/marketing/book_cont ent/9781133190110_lamb/videos/ch18.html © 2013 by Cengage Learning Inc. All Rights Reserved. 42

43. Part 5 Video Murray’s Cheese http://www.cengage.com/marketing/boo k_content/1439039429_lamb/part_videos /part05.html © 2013 by Cengage Learning Inc. All Rights Reserved. 43