1Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Chapter 16
Sales Promotion and Personal Selling
Prepared byDeborah Baker
Texas Christian University
16
2Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Chapter 16
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
3Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Chapter 16
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
4Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Chapter 16
Sales Promotion Sales Promotion ObjectivesObjectives
1
ConsumerSales
Promotion
ConsumerSales
Promotion
Trade Sales
Promotion
Trade Sales
Promotion
Consumer market
Marketing channel
Goal = Drive immediate purchase
= Influence Behavior
5Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Chapter 16
Uses of Sales PromotionUses 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
6Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Chapter 16
Tools for Sales Tools for Sales PromotionPromotion
Coupons and RebatesCoupons and Rebates
PremiumsPremiums
Loyalty Marketing ProgramsLoyalty Marketing Programs
Contests & SweepstakesContests & Sweepstakes
SamplingSampling
Point-of-Purchase PromotionPoint-of-Purchase Promotion
2
Trade AllowancesTrade Allowances
Push MoneyPush Money
TrainingTraining
Free MerchandiseFree Merchandise
Store DemonstrationStore Demonstration
Conventions & Trade ShowsConventions & Trade Shows
CONSUMER TRADE
7Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Chapter 16
Advantages of Personal Advantages of Personal SellingSelling
4
Detailed explanation or demonstration
Variable sales message
Directed at qualified prospects
Controllable adjustable selling costs
Effective at obtaining sale and gaining customer satisfaction
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Chapter 16
Types of Personal SellingTypes of Personal Selling
TraditionalTraditional
Relationship Relationship
6
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Chapter 16
Steps in the Selling Steps in the Selling ProcessProcess
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
10Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Chapter 16
Online
http://www.zapdata.com
Generating LeadsGenerating Leads
Advertising
Advertising PublicityPublicity
Direct Mail/Telemarket
ing
Direct Mail/Telemarket
ing
Cold CallingCold
CallingInternet Web SiteInternet Web Site ReferralsReferrals
Trade Shows/
Conventions
Trade Shows/
Conventions
Networking
Networking
Company Records
Company Records
6
11Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Chapter 16
Developing and Developing and Proposing SolutionsProposing Solutions
Sales ProposalSales Proposal
Sales PresentationSales Presentation
6
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Chapter 16
Handling ObjectionsHandling 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
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Chapter 16
Closing the SaleClosing the Sale
NegotiateNegotiate
Keep an open mindKeep an open mind
Look for customer signals
Look for customer signals
6
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Chapter 16
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
6
15Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Chapter 16
Sales Management Sales Management ResponsibilitiesResponsibilities
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
16Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Chapter 16
Sales Force StructureSales Force Structure
5
Numerous Numerous ways ways to organize the to organize the sales forcesales force
Numerous Numerous ways ways to organize the to organize the sales forcesales force
Geographic Region Geographic Region
Marketing FunctionMarketing Function
Market or Industry Market or Industry
Client or AccountClient or Account
Product LineProduct Line
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Chapter 16
Training the Sales ForceTraining the Sales Force
Training Training includes...includes...
Training Training includes...includes...
No selling dutiesNo selling duties
Industry and customer characteristics
Industry and customer characteristics
Product knowledgeProduct knowledge
Selling techniquesSelling techniques
Company policies and practice
Company policies and practice
7
18Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Chapter 16
Compensation Plans: Compensation Plans: Basic MethodsBasic Methods
CommissionCommission
SalarySalary
CombinationPlans
CombinationPlans
Onlinehttp://www.marykay.com
7
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Chapter 16
Evaluating the Sales Evaluating the Sales Force: 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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