1. The document discusses sales promotion and personal selling. It defines sales promotion and lists its objectives such as boosting sales and increasing brand loyalty. 2. Common forms of consumer sales promotion include coupons, rebates, premiums, contests and sweepstakes, loyalty programs, and sampling. Trade sales promotions include allowances, push money, and training. 3. Personal selling involves building relationships with customers to develop long-term satisfaction. It differs from traditional selling which focuses more on short-term transactions. The selling process includes steps like generating leads, qualifying leads, and closing the sale.

1. Sales Promotion and Personal Selling Chapter 16 Version 6e chapter 1 Prepared by S K Dadar

2. Learning Objectives Chapter 16 Version 6e chapter 1 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.

3. Learning Objectives (continued) Chapter 16 Version 6e chapter 1 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.

4. Learning Objective Chapter 16 Version 6e 1 Define and state the objectives of sales promotion.

5. Sales Promotion Chapter 16 Version 6e 1 Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase.

6. Sales Promotion Chapter 16 Version 6e 1 Consumer Sales Promotion Trade Sales Promotion Sales Promotion Targets

7. Uses of Sales Promotion Chapter 16 Version 6e 1 Immediate Purchases Increase Trial Boost consumer inventory Encourage repurchase Increase ad effectiveness Encourage brand switching Uses of Sales Promotion Encourage brand loyalty

9. Learning Objective Chapter 16 Version 6e 2 Discuss the most common forms of consumer sales promotion.

10. Tools for Consumer Sales Promotion Chapter 16 Version 6e 2 Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion Popular Tools for Consumer Sales Promotion

11. Tools for Consumer Sales Promotion Chapter 16 Version 6e 2 Coupon Rebate Premium A certificate that entitles consumers to an immediate price reduction. 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.

12. Tools for Consumer Sales Promotion Chapter 16 Version 6e 2 Loyalty Marketing Program Frequent Buyer Program 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.

13. Tools for Consumer Sales Promotion Chapter 16 Version 6e 2 Contest Sweepstakes Promotions that require skill or ability to compete for prizes. Promotions that depend on chance or luck, with free participation.

14. Tools for Consumer Sales Promotion Chapter 16 Version 6e 2 Sampling A promotional program that allow the consumer the opportunity to try a product or service for free.

15. Sampling Chapter 16 Version 6e 2 Methods of Sampling Direct mail Door-to-door delivery Packaging with another product Retail store demonstration

16. Tools for Consumer Sales Promotion Chapter 16 Version 6e 2 Goals of Point-of-Purchase Displays Build traffic Advertise the product Induce impulse buying

17. Tools for Consumer Sales Promotion Chapter 16 Version 6e Free merchandise Sweepstakes Free shipping Coupons Effective Types of On-Line Sales Promotion 2

18. Learning Objective Chapter 16 Version 6e List the most common forms of trade sales promotion. 3

19. Tools for Trade Sales Promotion Chapter 16 Version 6e 3 Trade Allowances Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows Unique Tools for Trade Sales Promotion

20. Trade Allowance Chapter 16 Version 6e 3 A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers.

21. Push Money Chapter 16 Version 6e 3 Money offered to channel intermediaries to encourage them to “push” products--that is, to encourage other members of the channel to sell the products.

22. The Role of Trade Sales Promotion Chapter 16 Version 6e 3 Improve trade relations Gain new distributors Build or reduce dealer inventories Obtain support for consumer sales promotions

23. Learning Objective Chapter 16 Version 6e Describe personal selling. 4

25. Personal Selling Chapter 16 Version 6e 4 Customers are concentrated There are few customers Product is technically complex Product is custom made Product has a high value Personal Selling is more important if... Customers are geographically dispersed There are many customers Product is simple to understand Product is standardized Product has a low value Advertising & Sales Promotion are more important if...

26. Learning Objective Chapter 16 Version 6e Discuss the key differences between relationship selling and traditional selling. 5

27. Relationship Selling Chapter 16 Version 6e A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships. 5

28. Relationship Selling Chapter 16 Version 6e 5 Focus: Building Mutual Trust Long-Term Value-Added Benefits to Buyer

29. Relationship Selling vs. Traditional Selling Chapter 16 Version 6e 5 Sell advice, assistance, counsel Sell products Traditional Personal Selling Relationship Selling Focus on closing sales Limited sales planning Discuss product Assess “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 environment Conduct discovery in scope of operations Team approach Profit impact and strategic benefit focus Long-term sales follow-up

30. Learning Objective Chapter 16 Version 6e 6 List the steps in the selling process.

31. Sales Process Chapter 16 Version 6e The set of steps a salesperson goes through in a particular organization to sell a particular product or service. 6

32. Steps in the Selling Process Chapter 16 Version 6e 6 Generate Leads Qualify Leads Probe Customer Needs Develop Solutions Handle Objections Close the Sale Follow Up Basic Steps in the Personal Selling Process

33. Generating Leads Chapter 16 Version 6e 6 Cold Calling Advertising Publicity Direct Mail/ Telemarketing Trade Shows/ Conventions Web Sites/ Internet Referrals Networking Company Records Sources of Sales Leads

34. Cold Calling Chapter 16 Version 6e A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial status. 6

35. Qualifying Leads Chapter 16 Version 6e 6 Recognized Need Buying Power Receptivity & Accessibility Characteristics of Qualified Leads

36. Probing Needs Chapter 16 Version 6e 6 Product or service Salesperson must know everything about... Customers and their needs Competition Industry

37. Needs Assessment Chapter 16 Version 6e A determination of the customer’s specific needs and wants and the range of options a customer has for satisfying them. 6

38. Developing and Proposing Solutions Chapter 16 Version 6e 6 Sales Proposal Sales Presentation

39. Handling Objections Chapter 16 Version 6e 6 Handling Objections Use the objection to close the sale Anticipate specific objections View objections as requests for information

40. Closing the Sale Chapter 16 Version 6e 6 Closing the Sale Negotiate Keep an open mind Look for customer signals

41. Following Up Chapter 16 Version 6e 6 Responsibilities in Following Up Employees are trained Goods or service perform as promised Ensure delivery schedules are met

42. Learning Objective Chapter 16 Version 6e Describe the functions of sales management. 7

43. Sales Management Responsibilities Chapter 16 Version 6e 7 Evaluate sales force Compensate and motivate sales force Recruit and train sales force Determine sales force structure Define sales goals and sales process Tasks of Sales Management

44. Defining Sales Goals Chapter 16 Version 6e 7 Clear Sales Goals Should Be... Precise Measurable Time Specific

45. Quota Chapter 16 Version 6e A statement of the individual salesperson’s sales objectives, usually based on sales volume alone but sometimes including key accounts. 7

46. Sales Force Structure Chapter 16 Version 6e 7 Common Sales Organization Structures Individual client or account Market or Industry Marketing Function Product Line Geographic Region

47. Training the Sales Force Chapter 16 Version 6e 7 Training includes... Nonselling duties Industry and customer characteristics Product knowledge Selling techniques Company policies and practice

48. Compensation Plans Chapter 16 Version 6e 7 Commission Combination Plans Salary Basic Compensation Methods

49. Compensation Plans Chapter 16 Version 6e 7 Straight Commission Straight Salary The salesperson is paid some percentage when a sale is made. The salesperson receives a salary regardless of sales productivity.

50. Effective Sales Leaders Chapter 16 Version 6e 7 Effective Sales Leaders ... Are assertive Possess ego drive Possess ego strength Take risks Are innovative Have a sense of urgency Are empathetic

51. Evaluating the Sales Force Chapter 16 Version 6e Performance Measures Contribution to Profit Calls per Order Sales or Profits per Call Call Percentage Achieving Goals Sales Volume 7

52. The Impact of Technology on Personal Selling Chapter 16 Version 6e 7 Laptop computer link Mobile telephones Pagers Personal data assistants E-Mail Internet Sales Force Automation

53. Thanks ! Chapter 16 Version 6e