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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
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
Sales Promotion
Sales PromotionSales PromotionMarketing communication activities,
other than advertising, personal
selling, and public relations, in which a
short-term incentive motivates a
purchase.
1
Sales Promotion Objectives
1
ConsumerSales
Promotion
ConsumerSales
Promotion
Trade Sales
Promotion
Trade Sales
Promotion
Consumer market
Marketing channel
Goal = Drive immediate purchase= Influence Behavior
Uses of Sales Promotion
1
Immediate purchasesImmediate purchases
Increase trialIncrease trial
Boost consumer inventoryBoost consumer inventory
Encourage repurchaseEncourage repurchase
Increase ad effectivenessIncrease ad effectiveness
Encourage brand loyaltyEncourage brand loyalty
Objectives of Sales Promotion
Type of BuyerType of Buyer
Loyal Customers
Competitor’sCustomers
Brand Switchers
Price Buyers
Desired ResultsDesired 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 PromotionSales PromotionExamples Examples
•Loyalty marketing•Bonus packs
•Sampling•Sweepstakes, contests, premiums
•Price-lowering promotion•Trade deals
•Coupons, price-offpackages, refunds•Trade deals
1
Tools for Consumer Sales Promotion
Coupons and RebatesCoupons and Rebates
PremiumsPremiums
Loyalty Marketing ProgramsLoyalty Marketing Programs
Contests & SweepstakesContests & Sweepstakes
SamplingSampling
Point-of-Purchase PromotionPoint-of-Purchase Promotion
2
CouponCoupon
RebateRebate
PremiumPremium
A certificate that entitles consumers to an immediate
price reduction.
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.
An extra item offered to the consumer, usually in exchange
for some proof of purchase.
Tools for Consumer Sales Promotion
2
LoyaltyMarketingProgram
LoyaltyMarketingProgram
FrequentBuyer
Program
FrequentBuyer
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
ContestContest
SweepstakesSweepstakes
Promotions that require skill or ability to compete for prizes.
Promotions that require skill or ability to compete for prizes.
Promotions that depend on chance or luck, with
free participation.
Promotions that depend on chance or luck, with
free participation.
Tools for Consumer Sales Promotion
2
SamplingSampling A promotional program that allows the consumer the opportunity to try a
product or service for free.
A promotional program that allows the consumer the opportunity to try a
product or service for free.
Tools for Consumer Sales Promotion
2
Methods of Sampling
Direct mailDirect mail
Door-to-door deliveryDoor-to-door delivery
Packaging with another productPackaging with another product
Retail store demonstrationRetail store demonstration
2
Point-of-Purchase Promotion
Goals ofGoals of Point-of-PurchasePoint-of-Purchase DisplaysDisplays
Goals ofGoals of Point-of-PurchasePoint-of-Purchase DisplaysDisplays
Build traffic Build traffic
Advertise the productAdvertise the product
Induce impulse buyingInduce impulse buying
2
Online Sales Promotion
Free merchandiseFree merchandise
SweepstakesSweepstakes
Free shippingFree shipping
CouponsCoupons
2
Tools for Trade Sales Promotion
Trade AllowancesTrade Allowances
Push MoneyPush Money
TrainingTraining
Free MerchandiseFree Merchandise
Store DemonstrationStore Demonstration
Conventions & Trade ShowsConventions & Trade Shows
3
Trade Allowance
Trade AllowanceTrade Allowance
A price reduction offered by
manufacturers to intermediaries,
such as wholesalers and retailers.
3
Push Money
Push MoneyPush 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
The Role of Trade Sales Promotion
Improve trade relations
Gain new distributors
Build or reducedealer inventories
Obtain support forconsumer sales promotions
3
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
Personal Selling
Customers are concentrated
Customers are concentrated
Product is technically complex
Product is technically complex
There are few customersThere are few customers
Product is custom madeProduct is custom made
Product has a high valueProduct has a high value
Personal Selling Personal Selling is more important if...is more important if...
Customers are geographically dispersed
Customers are geographically dispersed
Product is simple to understand
Product is simple to understand
There are many customersThere are many customers
Product is standardizedProduct is standardized
Product has a low valueProduct has a low value
Advertising & Sales Promotion Advertising & Sales Promotion are more important if...are more important if...
4
Relationship Selling
Relationship SellingRelationship 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
Relationship Selling versus Traditional Selling
Sell advice, assistance, counsel Sell products
TraditionalTraditionalPersonal SellingPersonal Selling
Focus on closing sales
Limited sales planning
Discuss productAssess “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 environmentConduct discovery in scope of operationsTeam approachProfit impact and strategic benefit focusLong-term sales follow-up
Relationship SellingRelationship Selling
5
Sales Process
Sales ProcessSales Process
The set of steps a salesperson goes
through in a particular organization
to sell a particular product or service.
6
Steps in the Selling Process
Generate LeadsGenerate Leads
Qualify LeadsQualify Leads
Probe Customer NeedsProbe Customer Needs
Develop SolutionsDevelop Solutions
Handle ObjectionsHandle Objections
Close the SaleClose the Sale
Follow UpFollow Up
6
Time Spent in Key Steps of Selling Process
Key Selling Steps Traditional
Selling
Relationship
Selling
Generate Leads High Low
Qualify Leads Low High
Probe Needs Low High
Develop Solutions Low High
Handle Objections High Low
Close the sale High Low
Follow-up Low High
6
Generating Leads
AdvertisingAdvertising PublicityPublicity Direct Mail/TelemarketingDirect Mail/
Telemarketing
Cold CallingCold Calling Internet Web SiteInternet Web Site ReferralsReferrals
Trade Shows/Conventions
Trade Shows/ConventionsNetworkingNetworking Company
RecordsCompany Records
6
Cold Calling
Cold CallingCold 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
Characteristics of Qualified Leads
6
Recognized needRecognized need
Buying powerBuying power
Receptivity andaccessibility
Receptivity andaccessibility
Needs Assessment
Needs AssessmentNeeds Assessment
A determination of the customer’s
specific needs and wants and the range
of options a customer has for
satisfying them.
6
Probing Needs
Product or serviceProduct or service
Customers and their needsCustomers and their needs
CompetitionCompetition
IndustryIndustry
Salesperson must knoweverything
about...
Salesperson must knoweverything
about...
6
Developing and Proposing Solutions
Sales ProposalSales Proposal
Sales PresentationSales Presentation
6
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!
Handling Objections
Use the objection to close the sale
Use the objection to close the sale
Anticipate specific objections
Anticipate specific objections
View objections as requests for information
View objections as requests for information
6
Closing the Sale
NegotiateNegotiate
Keep an open mindKeep an open mind
Look for customer signals
Look for customer signals
6
Following Up
Employees are trainedEmployees are trained
Goods or service performas promised
Goods or service performas promised
Ensure delivery schedules are metEnsure delivery
schedules are met
6
Sales Management Responsibilities
Evaluate sales forceEvaluate sales force
Compensate and motivate sales forceCompensate and motivate sales force
Recruit and train sales forceRecruit and train sales force
Determine sales force structureDetermine sales force structure
Define sales goals and sales processDefine sales goals and sales process
7
Defining Sales Goals
ClearClear
PrecisePrecise
MeasurableMeasurable
Time SpecificTime Specific
Sales GoalsShould Be...Sales GoalsShould Be...
7
Quota
Quota
A statement of the individual
salesperson’s sales objectives,
usually based on sales volume
alone but sometimes including key
accounts.
7
Sales Force Structure
Individual client or account
Individual client or account
Market or industryMarket or industry
Marketing functionMarketing function
Product lineProduct line
Geographic regionGeographic region
7
Onlinehttp://www.amway.comhttp://www.quixtar.com
Training the Sales Force
Training Training includes...includes...
Training Training includes...includes...
Nonselling dutiesNonselling duties
Industry and customer characteristics
Industry and customer characteristics
Product knowledgeProduct knowledge
Selling techniquesSelling techniques
Company policies and practice
Company policies and practice
7
Compensation Plans: Basic Methods
CommissionCommission
SalarySalary
CombinationPlans
CombinationPlans
Onlinehttp://www.marykay.com
7
Compensation Plans
StraightCommission
StraightCommission
StraightSalary
StraightSalary
The salesperson is paid some percentage when a sale is made.The salesperson is paid some percentage when a sale is made.
The salesperson receives a salary regardless of sales
productivity.
The salesperson receives a salary regardless of sales
productivity.
7
Effective Sales Leaders
Effective Sales LeadersEffective Sales Leaders......Effective Sales LeadersEffective Sales Leaders......
Are assertive Are assertive
Possess ego drivePossess ego drive
Possess ego strengthPossess ego strength
Take risksTake risks
Are innovativeAre innovative
Have a sense of urgencyHave a sense of urgency
Are empatheticAre empathetic
7
Evaluating the Sales Force: Performance Measures
Contribution to profitContribution to profit
Calls per orderCalls per order
Sales or profits per callSales or profits per call
Call percentage achieving goalsCall percentage achieving goals
Sales volumeSales volume
7
The Impact of Technology on Personal Selling
Cell phonesCell phones
LaptopsLaptops
PagersPagers
E-MailE-Mail
Electronic organizersElectronic organizers
7
Benefits of Technology as a Sales Tool
7
Ease administration burdenEase administration burden
Arm salespeople with valuable informationArm salespeople with valuable information
Track sales performanceTrack sales performance
Enable collaborationEnable collaboration
Make sales management more effectiveMake sales management more effective