Marketing 16Marketing 16

Sales Promotion Sales Promotion

&&

Personal SellingPersonal Selling

16.116.1

Sales Promotions and Sales Promotions and Personal selling -- 16Personal selling -- 16

• Sales Promotion ObjectivesSales Promotion Objectives

• TypesTypes

• Personal SellingPersonal Selling

• Sales ManagementSales Management

Sales promotionSales promotion

• What is the goal?What is the goal?– BehaviorBehavior– ActionAction– Reinforce loyaltyReinforce loyalty– Increase consumptionIncrease consumption– Product trial or switchProduct trial or switch– Increase purchase Increase purchase

frequencyfrequency

See Ex. 16.1, p. 545See Ex. 16.1, p. 545

16.316.3

Consumer Sales Promotion Consumer Sales Promotion ToolsTools• CouponsCoupons

– $/$/¢ off, 2 for 1, in-store, grocery, mail¢ off, 2 for 1, in-store, grocery, mail

• RebatesRebates– Delay; Mail; Data; Ltd submission (2%)Delay; Mail; Data; Ltd submission (2%)– Some manufacturers ignore or make it Some manufacturers ignore or make it

difficult to receive rebatedifficult to receive rebate

• Premiums (lagniappe)Premiums (lagniappe)– Prize insidePrize inside

• Loyalty Marketing ProgramsLoyalty Marketing Programs– Frequent flyer, buyer, sleeper, eaterFrequent flyer, buyer, sleeper, eater

16.416.4

Consumer Sales Promotion Consumer Sales Promotion ToolsTools• Contests and SweepstakesContests and Sweepstakes

• SamplingSampling

• P-O-PP-O-P

• On-line sales promotionsOn-line sales promotions– Collect data, encourage e-commerceCollect data, encourage e-commerce

16.216.2

Sales Promotion ObjectivesSales Promotion Objectives(Consumer)(Consumer)

• Encourage product trialEncourage product trial

• Encourage continued buying and usageEncourage continued buying and usage

• Encourage purchase and usage of related productsEncourage purchase and usage of related products

• Support IMC strategySupport IMC strategy

• Build a marketing databaseBuild a marketing database

16.616.6

Trade Sales Promotion ToolsTrade Sales Promotion Tools

• Trade AllowancesTrade Allowances– In exchange for performing some functionIn exchange for performing some function

•Promotion, StoragePromotion, Storage

• Push MoneyPush Money• TrainingTraining• Free merchandiseFree merchandise• Store demonstrationsStore demonstrations• Trade shows, conferencesTrade shows, conferences

16.516.5

Sales Promotion ObjectivesSales Promotion Objectives(Trade)(Trade)

• Add channel partnersAdd channel partners

• Induce partners to carry more stockInduce partners to carry more stock

• Enhance channel supportEnhance channel support

• Strengthen channel relationshipsStrengthen channel relationships

16.716.7

Personal SellingPersonal Selling• What is it?What is it?

– Direct communication between a sales rep and Direct communication between a sales rep and prospective buyer to influence purchase.prospective buyer to influence purchase.

• When is it used?When is it used?– Complex & Expensive productsComplex & Expensive products– Few customersFew customers

• Advantages/disadvantagesAdvantages/disadvantages– Detailed and customized messageDetailed and customized message– Limited, but accurate reachLimited, but accurate reach– Handle objectionsHandle objections– ClosingClosing

Large SmallNumber and Dispersion of Customers

Low HighBuyers’ Information Needs

Small LargeSize and Importance of Purchase

Little MuchPostpurchase Service Required

Low HighProduct Complexity

Pull PushDistribution Strategy

Pre-set NegotiatedPricing Policy

Many FewResources Available for Promotion

AdvertisingRelatively Important

Personal SellingRelatively Important

16.816.8

What makes a good What makes a good salesperson?salesperson?

Empathy: Understand/read customerEgo Drive: Inner need to persuade othersEgo Strength: Self-assured (to deal with rejection) and Self-efficacy (control own success)Interpersonal Communication Skills (listening, asking questions, explain clearly)Enthusiasm (for yourself and customers)

Trade selling

(Existing Customers)

Type of Sales Job

Missionary selling (Promotional)

Technical selling (Highly technical products)

New business selling (New Business, Rainmaker)

Relatively Important Characteristics

Relatively Less Important Characteristics

Age, maturity, empathy, knowledge of customer and business methods

Aggressiveness, technical ability, product knowledge, persuasiveness

Youth, high energy and stamina, verbal skill, persuasiveness

Empathy, knowledge of customers, maturity, previous sales experience

Education, product and customer knowledge--usually gained through training, intelligence

Empathy, persuasiveness, aggressiveness, age

Experience, age, maturity, aggressiveness, persuasiveness, persistence

Customer knowledge, product knowledge, education, empathy

What to look for in hiring:(Not in Particular Order)

Enthusiasm Organization Skills Ambition

Goal Oriented

Leadership Work Ethic

Problem Solving Skills

Persuasive Verbal Skills Sales Experience

Not product specific

16.916.9

Process of personal sellingProcess of personal selling• Generate leadsGenerate leads

• Qualify prospectsQualify prospects

• Approach --direct contact, establish rapportApproach --direct contact, establish rapport

• Customer needs analysis: Learn to ask questions & Customer needs analysis: Learn to ask questions & LISTEN!!!!LISTEN!!!!

• Presentation – develop and propose solutionsPresentation – develop and propose solutions

• Handling objectionsHandling objections

• Closing the saleClosing the sale

• Follow-upFollow-up

16.1016.10

Personal selling and Personal selling and relationship marketingrelationship marketing

• Shift from transaction point of view, Shift from transaction point of view, focus on:focus on:

– Relationship or consultive selling Relationship or consultive selling

16.1116.11