1Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Sales Promotion and Sales Promotion and Personal SellingPersonal Selling
Prepared byPrepared byDeborah BakerDeborah Baker
Texas Christian UniversityTexas Christian University
Chapter 16
2Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning ObjectivesLearning 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.
3Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objectives Learning Objectives (continued)(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.
4Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objective Learning Objective
Define and state the objectives of sales promotion.
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On Linehttp://www.nba.com/maverickshttp://www.mavs.com
On Linehttp://www.nba.com/maverickshttp://www.mavs.com
5Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Sales PromotionSales Promotion
Marketing communication
activities, other than
advertising, personal
selling, and public
relations, in which a
short-term incentive
motivates a purchase.
11On Linehttp://www.onlineclothingstores.comhttp://www1.coolsavings.com
On Linehttp://www.onlineclothingstores.comhttp://www1.coolsavings.com
6Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Sales Promotion TargetsSales Promotion Targets
ConsumerSales Promotion
ConsumerSales Promotion
Trade Sales Promotion
Trade Sales Promotion
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7Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Uses of Sales PromotionUses of Sales Promotion
Immediate purchasesImmediate purchases
Increase trialIncrease trial
Boost consumer inventoryBoost consumer inventory
Encourage repurchaseEncourage repurchase
Increase ad effectivenessIncrease ad effectiveness
Encourage brand switchingEncourage brand switching
Encourage brand loyaltyEncourage brand loyalty
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8Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Objectives of Sales PromotionObjectives of Sales Promotion
Type of BuyerType of Buyer Type of BuyerType of Buyer
Loyal CustomersLoyal Customers
Competitor’sCustomersCompetitor’sCustomers
Brand SwitchersBrand Switchers
Price BuyersPrice Buyers
Desired ResultsDesired Results Desired ResultsDesired Results
•Reinforce behavior• Increase consumption•Change timing
•Reinforce behavior• Increase consumption•Change timing
•Break loyalty•Persuade to switch•Break loyalty•Persuade to switch
•Persuade to buy your brand more often•Persuade to buy your brand more often
•Appeal with low prices•Supply added value
•Appeal with low prices•Supply added value
Sales PromotionSales PromotionExamples Examples
Sales PromotionSales PromotionExamples Examples
•Loyalty marketing•Bonus packs•Loyalty marketing•Bonus packs
•Sampling•Sweepstakes, contests, premiums
•Sampling•Sweepstakes, contests, premiums
•Price-lowering promotion•Trade deals
•Price-lowering promotion•Trade deals
•Coupons, price-offpackages, refunds•Trade deals
•Coupons, price-offpackages, refunds•Trade deals
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9Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objective Learning Objective
Discuss the most common forms of consumer sales promotion.
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10Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Tools for Tools for Consumer Sales PromotionConsumer Sales Promotion
Coupons and RebatesCoupons and Rebates
PremiumsPremiums
Loyalty Marketing ProgramsLoyalty Marketing Programs
Contests & SweepstakesContests & Sweepstakes
SamplingSampling
Point-of-Purchase PromotionPoint-of-Purchase Promotion
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11Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
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 Tools for Consumer Sales PromotionConsumer Sales Promotion
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12Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
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 Tools for Consumer Sales PromotionConsumer Sales Promotion
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13Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
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 Tools for Consumer Sales PromotionConsumer Sales Promotion
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On Linehttp://www.sweepstakesonline.com
On Linehttp://www.sweepstakesonline.com
14Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
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 Tools for Consumer Sales PromotionConsumer Sales Promotion
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15Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
SamplingSampling
Methodsof
Sampling
Methodsof
Sampling
Direct mailDirect mail
Door-to-door delivery
Door-to-door delivery
Packaging with another productPackaging with another product
Retail store demonstrationRetail store
demonstration
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16Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Tools for Tools for Consumer Sales PromotionConsumer Sales 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
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17Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
On Linehttp://www.burgerking.comhttp://www.philipmorris.comhttp://www.upromote.com
On Linehttp://www.burgerking.comhttp://www.philipmorris.comhttp://www.upromote.com
Tools for Tools for Consumer Sales PromotionConsumer Sales Promotion
Free merchandiseFree merchandise
SweepstakesSweepstakes
Free shippingFree shipping
CouponsCoupons
EffectiveTypes ofOn-LineSales
Promotion
EffectiveTypes ofOn-LineSales
Promotion
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18Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objective Learning Objective
List the most common forms of trade sales promotion.
33
19Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Tools for Trade Sales Tools for Trade Sales PromotionPromotion
Trade AllowancesTrade Allowances
Push MoneyPush Money
TrainingTraining
Free MerchandiseFree Merchandise
Store DemonstrationStore Demonstration
Conventions & Trade ShowsConventions & Trade Shows
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20Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Trade AllowanceTrade Allowance
A price reduction offered
by manufacturers to
intermediaries, such as
wholesalers and retailers.
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21Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
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.
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22Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
The Role of The Role of Trade Sales PromotionTrade Sales Promotion
Improve trade relations
Gain new distributors
Build or reducedealer inventories
Obtain support forconsumer sales promotions
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23Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objective Learning Objective
Describe personal selling.
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24Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Advantages of Personal Advantages of Personal SellingSelling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective method to obtain sales and gain satisfied customers
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25Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Personal SellingPersonal Selling
Customers are concentrated
Customers are concentrated
There are few customersThere are few customers
Product is technically complex
Product is technically complex
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
There are many customersThere are many customers
Product is simple to understand
Product is simple to understand
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...
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26Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objective Learning Objective
Discuss the key differences between relationship selling and traditional selling.
55
27Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
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.
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28Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Relationship Selling Relationship Selling vs. Traditional Sellingvs. Traditional Selling
Sell advice, assistance, counsel Sell advice, assistance, counsel Sell products
TraditionalTraditionalPersonal SellingPersonal Selling
Focus on closing salesFocus on closing sales
Limited sales planningLimited sales planning
Discuss productDiscuss product
Assess “Product-specific” needsAssess “Product-specific” needs
“Lone wolf” approach“Lone wolf” approach
Pricing/product focusPricing/product focus
Short-term sales follow-up Short-term sales follow-up
Focus on customer’s bottom lineFocus on customer’s bottom line
Sales planning is top prioritySales planning is top priority
Build problem-solving environmentBuild problem-solving environment
Conduct discovery in scope of operationsConduct discovery in scope of operations
Team approachTeam approach
Profit impact and strategic benefit focusProfit impact and strategic benefit focus
Long-term sales follow-up Long-term sales follow-up
Relationship SellingRelationship Selling
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29Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objective Learning Objective
List the steps in the selling process.
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30Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Sales ProcessSales Process
The set of steps a
salesperson goes through
in a particular organization
to sell a particular
product or service.
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31Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Steps in the Selling ProcessSteps 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
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32Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Time Spent in Key Steps Time Spent in Key Steps of Selling Processof 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
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33Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
On Linehttp://www.goleads.comhttp://www.zapdata.com
On Linehttp://www.goleads.comhttp://www.zapdata.com
Generating LeadsGenerating Leads
Cold CallingCold CallingAdvertisingAdvertising PublicityPublicity Direct Mail/TelemarketingDirect Mail/
Telemarketing
Trade Shows/Conventions
Trade Shows/Conventions
Internet Web Site
Internet Web Site ReferralsReferrals NetworkingNetworking
Company Records
Company Records
Sources ofSources ofSales LeadsSales LeadsSources ofSources of
Sales LeadsSales Leads
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34Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
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.
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35Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Qualifying LeadsQualifying Leads
Recognized NeedRecognized Need
Buying PowerBuying Power
Receptivity & Accessibility
Receptivity & Accessibility
Characteristics ofCharacteristics ofQualified LeadsQualified Leads
Characteristics ofCharacteristics ofQualified LeadsQualified Leads
66On Linehttp://www.hoovers.comhttp://www.dnb.com
On Linehttp://www.hoovers.comhttp://www.dnb.com
36Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Needs AssessmentNeeds Assessment
A determination of the
customer’s specific needs
and wants and the range
of options a customer has
for satisfying them.
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37Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Probing NeedsProbing Needs
Product or serviceProduct or service
Customers and their needsCustomers and their needs
CompetitionCompetition
IndustryIndustry
Salesperson must knoweverything
about...
Salesperson must knoweverything
about...
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38Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Developing and Developing and Proposing SolutionsProposing Solutions
Sales ProposalSales Proposal
Sales PresentationSales Presentation
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39Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Handling ObjectionsHandling Objections
Handling Handling
ObjectionsObjections
Handling Handling
ObjectionsObjections
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
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40Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Closing the SaleClosing the Sale
Closing Closing the Salethe Sale
Closing Closing the Salethe Sale
NegotiateNegotiate
Keep an open mindKeep an open mind
Look for customer signals
Look for customer signals
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41Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Following UpFollowing Up
ResponsibilitiesResponsibilitiesinin
Following UpFollowing Up
ResponsibilitiesResponsibilitiesinin
Following UpFollowing 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
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42Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objective Learning Objective
Describe the functions of sales management.
77
43Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Sales Management ResponsibilitiesSales Management Responsibilities
Evaluate sales forceEvaluate sales force
Compensate and motivatesales force
Compensate and motivatesales force
Recruit and trainsales force
Recruit and trainsales force
Determine sales force structure
Determine sales force structure
Define sales goals andsales process
Define sales goals andsales process
Tasks of Tasks of Sales ManagementSales Management
Tasks of Tasks of Sales ManagementSales Management
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44Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Defining Sales GoalsDefining Sales Goals
ClearClear
PrecisePrecise
MeasurableMeasurable
Time SpecificTime Specific
Sales GoalsShould Be...Sales GoalsShould Be...
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45Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
QuotaQuota
A statement of the
individual salesperson’s
sales objectives, usually
based on sales volume
alone but sometimes
including key accounts.
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46Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Sales Force StructureSales Force Structure
CommonCommonSalesSales
OrganizationOrganizationStructuresStructures
CommonCommonSalesSales
OrganizationOrganizationStructuresStructures
Individual client or account
Individual client or account
Market or IndustryMarket or Industry
Marketing FunctionMarketing Function
Product LineProduct Line
Geographic RegionGeographic Region
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47Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Training the Sales ForceTraining 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
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48Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Compensation Plans: Compensation Plans: Basic MethodsBasic Methods
CommissionCommission
SalarySalary
CombinationPlans
CombinationPlans
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On Linehttp://www.marykay.com
On Linehttp://www.marykay.com
49Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Compensation PlansCompensation 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.
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50Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Effective Sales LeadersEffective 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
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51Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Evaluating the Sales Force: Evaluating the Sales Force: Performance MeasuresPerformance 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
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52Chap. 16 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
The Impact of Technology The Impact of Technology on Personal Sellingon Personal Selling
Laptop computer linkLaptop computer link
Cell phonesCell phones
PagersPagers
Personal data assistantsPersonal data assistants
E-MailE-Mail
InternetInternet
Sales ForceSales ForceAutomationAutomationSales ForceSales ForceAutomationAutomation
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