Chapter 1

Chapter 1

Lamb, Hair, McDaniel 2011-2012 CHAPTER 18 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 1 iStockphoto.com/Terry J Alcorn Sales Promotion and Personal Selling Sales Promotion Sales Sales Promotion Promotion Marketing communication activities, other than

advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase. LO1 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 2 Sales Promotion Advertising Reason to buy Sales Promotion Incentive to buy LO1 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved

3 Sales Promotion Consumer Sales Promotion is sales promotion activities targeting the ultimate consumer. Trade Sales Promotion is sales promotion activities targeting a marketing channel member, such as a wholesaler or retailer. Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 4 LO1 Objectives of Sales Promotion Type of Buyer Desired Results

Sales Promotion Examples Loyal Customers Reinforce behavior Increase consumption Change purchase timing Loyalty marketing Bonus packs Competitors Customers Break loyalty Persuade to switch Sampling Sweepstakes, contests, premiums Brand Switchers

Persuade to buy your brand more often Price-lowering promotion Trade deals Price Buyers Appeal with low prices Supply added value Coupons, price-off packages, refunds Trade deals Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 5 Tools for Consumer Sales Promotion Coupons

Coupons and and Rebates Rebates Premiums Premiums Loyalty Loyalty Marketing Marketing Programs Programs Contests Contests && Sweepstakes Sweepstakes Sampling Sampling Point-of-Purchase Point-of-Purchase Promotion Promotion LO2 Chapter 18 Online Online Sales Sales Promotion Promotion Copyright 2012 by Cengage Learning Inc. All rights reserved

6 LO2 Coupons and Rebates Coupon Coupon A A certificate certificate that that entitles entitles consumers consumers to to an an immediate immediate price price reduction reduction when when they they buy buy the the product.

product. Rebate Rebate A A cash cash refund refund given given for for the the purchase purchase of of aa product product during during aa specific specific period. period. Premium Premium An An extra

extra item item offered offered to to the the consumer, consumer, usually usually in in exchange exchange for for some some proof proof of of purchase purchase of of the the promoted promoted product. product. Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 7

Loyalty Marketing Programs Loyalty Loyalty Marketing Marketing Program Program AApromotional promotionalprogram programdesigned designed to tobuild buildlong-term, long-term,mutually mutually beneficial beneficialrelationships relationshipsbetween between aacompany companyand andkey

keycustomers. customers. Frequent Frequent Buyer Buyer Program Program AAloyalty loyaltyprogram programin inwhich which loyal loyalconsumers consumersare arerewarded rewardedfor for making makingmultiple multiplepurchases purchasesof ofaa

particular particulargood goodor orservice. service. LO2 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 8 Coupons and Sweepstakes Contests Contests Sweepstakes Sweepstakes Promotions Promotionsin inwhich whichparticipants participantsuse

use some someskill skillor orability abilityto tocompete competefor for prizes. prizes. Promotions Promotionsthat thatdepend dependon on chance, chance,with withfree freeparticipation. participation. LO2 Chapter 18

Copyright 2012 by Cengage Learning Inc. All rights reserved 9 Sampling Sampling Sampling A A promotional promotional program program that that allows allows the the consumer consumer the the opportunity opportunity to to try try aa product product or or service service for

for free. free. LO2 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 10 Methods of Sampling Direct Direct mail mail Door-to-door Door-to-doordelivery delivery Packaging Packagingwith withanother anotherproduct product Retail Retail store storedemonstration demonstration

LO2 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 11 Point-of-Purchase Promotion Offers captive audience in retail stores Can increase sales by as much as 65 percent LO2 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 12 Online Sales Promotion Effective EffectiveTypes Typesof of Online OnlineSales

SalesPromotion Promotion Free merchandise Sweepstakes Free shipping with purchases LO2 Chapter 18 Coupons Copyright 2012 by Cengage Learning Inc. All rights reserved 13 Trade Sales Promotion Trade Trade Allowances Allowances Push Push Money Money Training Training Free Free Merchandise

Merchandise Store Store Demonstration Demonstration LO3 Chapter 18 Conventions Conventions && Trade Trade Shows Shows Copyright 2012 by Cengage Learning Inc. All rights reserved 14 Trade Allowance Trade Allowance is a price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers. LO3 Chapter 18

Copyright 2012 by Cengage Learning Inc. All rights reserved 15 Push Money Push PushMoney 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. LO3 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 16 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 LO3 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 17 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 Most effective promotion form in obtaining sale and satisfying customer Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 18

Exhibit 18.2 Comparison of Personal Selling and Advertising/Sales Promotion LO4 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 19 Relationship Selling Relationship Relationship (Consultative) (Consultative) Selling Selling A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop

long-term satisfaction through mutually beneficial partnerships. LO5 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 20 Exhibit 18.3 Key Differences between Traditional Selling and Relationship Selling LO 5 Chapter 18 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. Copyright 2012 by Cengage Learning Inc. All rights reserved

21 Steps in the Selling Process Generate Generate Leads Leads Qualify Qualify Leads Leads Probe Probe Customer Customer Needs Needs Develop Develop Solutions Solutions Handle Handle Objections Objections Close Close the the Sale Sale LO6 Chapter 18

Follow Follow Up Up Copyright 2012 by Cengage Learning Inc. All rights reserved 22 Generating Leads Advertising Advertising Publicity Publicity Direct DirectMail/ Mail/ Telemarketing Telemarketing Cold ColdCalling Calling Internet

Internet Web WebSite Site Referrals Referrals Networking Networking Trade Trade Shows/ Shows/ Conventions Conventions Company Company Records Records LO6 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved

23 Cold Calling Cold ColdCalling Calling A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects needs or financial status. LO6 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 24 Qualifying Leads Recognized Recognized need need Buying Buying power

power Receptivity Receptivity and and accessibility accessibility LO6 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 25 Approaching the Customer and Probing Needs Needs Needs Assessment Assessment A determination of the customers specific needs and wants and the range of options a customer has for satisfying them.

LO6 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 26 The Consultative Salesperson Product Productor orservice service Salesperson Salesperson must must know know everything everything about... about... Customers Customers

Competition Competition Industry Industry LO6 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 27 Developing and Proposing Solutions Sales Proposal is a formal written document or professional presentation that outlines how the salespersons product or service will meet or exceed the prospects needs. Sales Presentation is LO6 Chapter 18 a formal meeting in which the salesperson presents a sales

proposal to a prospective buyer. Copyright 2012 by Cengage Learning Inc. All rights reserved 28 Handling Objections View objections as requests for information Anticipate specific objections Investigate the objection with the customer Be aware of competitors products Stay calm LO6 Chapter 18 Use the objection to close the sale Copyright 2012 by Cengage Learning Inc. All rights reserved 29 Closing the Sale Look Look for for

customer customer signals signals Keep Keep an an open open mind mind Negotiate Negotiate Tailor Tailor to to each each market market LO6 Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 30 Following Up In the final step of the selling process follow upthe salesperson must

ensure: delivery schedules are met goods or services perform as promise buyers employees are properly trained to use the products Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 31 Exhibit 18.3 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. Chapter 18 Copyright 2012 by Cengage Learning Inc. All rights reserved 32

The Impact of Technology on Personal Selling Cell Cell phones phones Laptops Laptops Pagers Pagers E-Mail E-Mail Electronic Electronic organizers organizers LO6 Chapter 18 Internet Internet Copyright 2012 by Cengage Learning Inc. All rights reserved 33

Recently Viewed Presentations

  • Presentación Asia-Latam

    Presentación Asia-Latam

    Center and Periphery rebalanced… LatAm 4.7% Asia represents more than one fifth of world output. China has doubled its GDP in 8 years…without the help of Money Doctors! Chinese growth rates has been higher than those observed in Brazil and...
  • FACS Jeopardy

    FACS Jeopardy

    Do all of the following EXCEPT what when using appliances? A. rinse food before putting into hot fat. B. lift the far side of the pan so the steam does not burn you
  • Wood Theory - Art, Design and Technology St Machar Academy

    Wood Theory - Art, Design and Technology St Machar Academy

    Manufactured boards are made up of the scraps of trees and are compacted together by manmade processes. The wood does not stick together on its own and needs an adhesive to chemically attach them together. Formaldehyde . is the commonly...
  • Module 2: Proposal and Budget Preparation

    Module 2: Proposal and Budget Preparation

    Investigator The investigator indicates acceptance of an award by signing the Notice of Award memo and returning it to the ORSP Office of Research and Sponsored Programs The Vice Chancellor for Research and Sponsored Programs is the only person authorized...
  • Telling tails: metadata standards and the digital humanities

    Telling tails: metadata standards and the digital humanities

    This RDF graph shows new RDA entities taken from the LRM: Nomen, Place, Time-span, Collective Agent, and Agent. Current RDA entities are labelled only with their initials. The graph also shows the high-level relationships between the new and current entities....
  • Chapter 1

    Chapter 1

    Too often, it emerges by default rather than by design, reflecting a failure to consider the advantages of a segmented approach. The result is often sterile, unimaginative product offerings that have little appeal to anyone. Concentrated targeting strategy . A...
  • Attitude, Distraction, Disaster!

    Attitude, Distraction, Disaster!

    Attitude, Distraction, Disaster! OPTA South Willamette Valley Chapter Winter Workshop 2009 School Bus vs. Train Who Wins? Railroad Crossings Greatest driving hazard in terms of mass casualties.
  • Welcome to… Know Your School Night

    Welcome to… Know Your School Night

    He/she follows classroom rules, participates, cooperates, and is respectful and responsible. Students can move up and down throughout the day. School Wide Behavior Plan. Purple. Exceptional and Outstanding. Goes above and beyond expectations . A role mode for .