Chapter 16: Sales Promotion and Personal

Selling
Objectives:
• Define and state the objectives of sales promotion.
• Discuss the most common forms of consumer
sales promotion.
• List the most common forms of trade sales promotion.
• Describe personal selling.
• Discuss the key differences between relationship selling and
traditional selling.
• List the steps in the selling process.
• Describe the functions of sales management. 1
Chap. 16 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
 1 Sales Promotion
Marketing communication
activities, in which a
short-term incentive motivates
a purchase.
Advertising, personal selling,
and public relations are not
included in Sales Promotion.

On
OnLine
Line
http://www.onlineclothingstores.com
http://www.onlineclothingstores.com
Chap. 16 Marketing 7e Lamb Hair McDaniel
http://www1.coolsavings.com
http://www1.coolsavings.com 2
©2004 South-Western/Thomson Learning
 1 Sales Promotion Target Markets

Consumer
Consumer Trade
Trade
Sales
Sales Promotion
Promotion Sales
Sales Promotion
Promotion

Chap. 16 Marketing 7e Lamb Hair McDaniel 3

©2004 South-Western/Thomson Learning
 1 Uses of Sales Promotion

Immediate
Immediate purchases
purchases

Increase
Increase trial
trial

Boost
Boost consumer
consumer inventory
inventory

Encourage
Encourage repurchase
repurchase

Increase
Increase ad
ad effectiveness
effectiveness

Encourage
Encourage brand
brand switching
switching

Encourage
Encourage brand
brand loyalty
loyalty
Chap. 16 Marketing 7e Lamb Hair McDaniel 4
©2004 South-Western/Thomson Learning
 1 Objectives of Sales Promotion

Sales
Sales Promotion
Promotion
Type
Type of
of Buyer
Buyer Desired
Desired Results
Results Examples
Examples
••Reinforce
Reinforcebehavior
behavior
Loyal
Loyal ••Increase consumption
••Loyalty
Loyaltymarketing
marketing
Customers Increase consumption ••Bonus packs
Customers ••Change
Changetiming
timing
Bonus packs
••Sampling
Sampling
Competitor’s
Competitor’s ••Break loyalty
Break loyalty ••Sweepstakes,
Customers ••Persuade to switch Sweepstakes,
Customers Persuade to switch contests,
contests,premiums
premiums
••Price-lowering
Price-lowering
Brand
Brand ••Persuade to buy your
Persuade to buy your promotion
Switchers brand promotion
Switchers brandmore
moreoften
often ••Trade
Tradedeals
deals
••Appeal
Appealwith
withlow
low ••Coupons,
Coupons,price-off
price-off
Price
Price Buyers
Buyers prices
prices packages,
packages,refunds
refunds
••Supply
Supplyadded value ••Trade
addedvalue Tradedeals
deals
Chap. 16 Marketing 7e Lamb Hair McDaniel 5
©2004 South-Western/Thomson Learning
 Tools for
2
Consumer Sales Promotion
Coupons
Coupons and
and Rebates
Rebates

Premiums
Premiums

Loyalty
Loyalty Marketing
Marketing Programs
Programs

Contests
Contests && Sweepstakes
Sweepstakes

Sampling
Sampling

Point-of-Purchase
Point-of-Purchase Promotion
Promotion
Chap. 16 Marketing 7e Lamb Hair McDaniel 6
©2004 South-Western/Thomson Learning
 Tools for
2
Consumer Sales Promotion
A certificate that entitles
Coupon
Coupon consumers to an immediate
price reduction.

A
A cash
cash refund
refund given
given for
for the
the
Rebate
Rebate purchase
purchase ofof aa product
product during
during
aa specific
specific product.
product.

An
An extra
extra item
item offered
offered to
to the
the
Premium
Premium consumer,
consumer, usually
usually in
in exchange
exchange
for
for some
some proof
proof of
of purchase.
purchase.
Chap. 16 Marketing 7e Lamb Hair McDaniel 7
©2004 South-Western/Thomson Learning
 Tools for
2
Consumer Sales Promotion

Loyalty AA promotional
promotional program
program designed
designed
Loyalty to
Marketing to build
build long-term,
long-term, mutually
mutually
Marketing beneficial
beneficial relationships
relationships between
between
Program
Program aa company
company and and key
key customers.
customers.
Frequent
Frequent A
A loyalty
loyalty program
program inin which
which loyal
loyal
Buyer
Buyer consumers
consumers areare rewarded
rewarded for
for
Program
Program making
making multiple
multiple purchases.
purchases.

Chap. 16 Marketing 7e Lamb Hair McDaniel 8

©2004 South-Western/Thomson Learning
 Tools for
2 Ruffles
Consumer Sales Promotion 3-D

Promotions
Promotions that
that require
require skill
skill or
or
Contest
Contest ability
ability to
to compete
compete for
for prizes.
prizes.

Promotions
Promotions that
that depend
depend on
on
Sweepstakes
Sweepstakes chance
chance oror luck,
luck, with
with
free
free participation.
participation.

On
OnLine
Line
http://www.sweepstakesonline.com
http://www.sweepstakesonline.com
Chap. 16 Marketing 7e Lamb Hair McDaniel 9
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 Tools for
2 Pizza
Consumer Sales Promotion Hut

A
A promotional
promotional program
program that
that allows
allows
Sampling
Sampling the
the consumer
consumer the
the opportunity
opportunity to
to try
try aa
product
product or
or service
service for
for free.
free.

Direct
Directmail
mail
Door-to-door
Door-to-door
Methods
Methods delivery
delivery
of
of Packaging
Packagingwith
with
Sampling
Sampling another
anotherproduct
product
Retail
Retailstore
store
Chap. 16 Marketing 7e Lamb Hair McDaniel
demonstration
demonstration 10
©2004 South-Western/Thomson Learning
 Tools for
2
Consumer Sales Promotion

Build
Build traffic
traffic

Advertise
Advertise the
the product
product

Goals
Goals of
of
Point-of-Purchase
Point-of-Purchase
Displays Induce
Induce impulse
impulse buying
buying
Displays

Chap. 16 Marketing 7e Lamb Hair McDaniel 11

©2004 South-Western/Thomson Learning
 Tools for
2
Consumer Sales Promotion
Free
Freemerchandise
merchandise
Effective
Effective
Types
Types ofof Sweepstakes
Sweepstakes
On-Line
On-Line
Sales
Sales
Promotion
Promotion Free
Free shipping
shipping

Coupons
Coupons

On
OnLine
Line
http://www.burgerking.com
http://www.burgerking.com
http://www.philipmorris.com
http://www.philipmorris.com
http://www.upromote.com
http://www.upromote.com
Chap. 16 Marketing 7e Lamb Hair McDaniel 12
©2004 South-Western/Thomson Learning
 3 Tools for Trade Sales Promotion

Trade
Trade Allowances
Allowances

Push
Push Money
Money

Training
Training

Free
Free Merchandise
Merchandise

Store
Store Demonstration
Demonstration

Conventions
Conventions && Trade
Trade Shows
Shows

Chap. 16 Marketing 7e Lamb Hair McDaniel 13

©2004 South-Western/Thomson Learning
 The Role of
3
Trade Sales Promotion

Gain new distributors

Obtain support for

consumer sales promotions

Build or reduce
dealer inventories

Improve trade relations

Chap. 16 Marketing 7e Lamb Hair McDaniel 14

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 4 Advantages of Personal Selling

● 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

Chap. 16 Marketing 7e Lamb Hair McDaniel 15

©2004 South-Western/Thomson Learning
 4 Personal Selling

Personal Selling Advertising & Sales Promotion

is more important if... are more important if...
Product
Product has
has aa high
high value
value Product
Product has
has aa low
low value
value

Product
Product is
is custom
custom made
made Product
Product is
is standardized
standardized

Product
Product isis Product
Product is
is
technically
technically complex
complex simple
simple to
to understand
understand

There
There are
are few
few customers
customers There
There are
are many
many customers
customers

Customers
Customers are
are Customers
Customers are
are
concentrated
concentrated geographically
geographically dispersed
dispersed
Chap. 16 Marketing 7e Lamb Hair McDaniel 16
©2004 South-Western/Thomson Learning
 5 Relationship Selling Dodge

A sales practice that

involves building,
maintaining, and enhancing
interactions with customers
in order to develop long-
term satisfaction through
mutually beneficial
partnerships.
Chap. 16 Marketing 7e Lamb Hair McDaniel 17
©2004 South-Western/Thomson Learning
 Relationship Selling
5
vs. Traditional Selling
Traditional
Relationship Selling
Personal Selling
Sell products Sell
Sell advice,
advice, assistance,
assistance, counsel
counsel
Focus
Focus on
on closing
closing sales
sales Focus
Focus on
on customer’s
customer’s bottom
bottom line
line
Limited
Limited sales
sales planning
planning Sales
Sales planning
planning is
is top
top priority
priority
Discuss
Discuss product
product Build
Build problem-solving
problem-solving environment
environment
Assess
Assess “Product-specific”
“Product-specific” Conduct
Conduct discovery
discovery inin scope
scope of
of
needs
needs operations
operations
“Lone
“Lone wolf”
wolf” approach
approach Team
Team approach
approach
Profit
Profit impact
impact and
and strategic
strategic
Pricing/product
Pricing/product focus
focus benefit
benefit focus
focus
Short-term
Short-term sales
sales follow-up
follow-up Long-term
Long-term sales
sales follow-up
follow-up 18
Chap. 16 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
 6 Sales Process

The set of steps a

salesperson goes through
in a particular organization
to sell a particular
product or service.

Chap. 16 Marketing 7e Lamb Hair McDaniel 19

©2004 South-Western/Thomson Learning
 6 Steps in the Selling Process

Generate
Generate Leads
Leads

Qualify
Qualify Leads
Leads

Probe
Probe Customer
Customer Needs
Needs

Develop
Develop Solutions
Solutions

Handle
Handle Objections
Objections

Close
Close the
the Sale
Sale

Follow
Follow Up
Up
Chap. 16 Marketing 7e Lamb Hair McDaniel 20
©2004 South-Western/Thomson Learning
 Time Spent in Key Steps
6
of Selling Process
Key Selling Steps Traditional Relationship
Selling 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
Chap. 16 Marketing 7e Lamb Hair McDaniel 21
©2004 South-Western/Thomson Learning
 6 Generating Leads
Direct
Direct Mail/
Mail/
Advertising
Advertising Publicity
Publicity Cold
ColdCalling
Calling
Telemarketing
Telemarketing

Internet
InternetWeb
Web Trade
TradeShows/
Shows/
Referrals
Referrals Networking
Networking
Site
Site Conventions
Conventions
Company
Company
Records
Records

Sources
Sources of
of
Sales
Sales Leads
Leads

On
OnLine
Line
http://www.goleads.com
http://www.goleads.com
Chap. 16 Marketing 7e Lamb Hair McDaniel http://www.zapdata.com
http://www.zapdata.com
22
©2004 South-Western/Thomson Learning
 6 Cold Calling

A form of lead generation in

which the salesperson
approaches potential
buyers without any prior
knowledge of the
prospects’ needs or
financial status.

Chap. 16 Marketing 7e Lamb Hair McDaniel 23

©2004 South-Western/Thomson Learning
 6 Qualifying Leads

Characteristics
Characteristicsof
of
Qualified
QualifiedLeads
Leads

Recognized
Recognized Receptivity
Receptivity &
&
Need
Need Accessibility
Accessibility

Buying
Buying Power
Power

On
OnLine
Line
http://www.hoovers.com
http://www.hoovers.com
http://www.dnb.com
http://www.dnb.com
Chap. 16 Marketing 7e Lamb Hair McDaniel 24
©2004 South-Western/Thomson Learning
 6 Needs Assessment

A determination of the
customer’s specific needs
and wants and the range
of options a customer has
for satisfying them.

Chap. 16 Marketing 7e Lamb Hair McDaniel 25

©2004 South-Western/Thomson Learning
 6 Probing Needs

Product
Product or
or service
service

Salesperson
Salesperson Customers
Customersand
andtheir
theirneeds
needs
must
must know
know
everything
everything
about...
about... Competition
Competition

Industry
Industry

Chap. 16 Marketing 7e Lamb Hair McDaniel 26

©2004 South-Western/Thomson Learning
 Developing and
6
Proposing Solutions

Sales
Sales Proposal
Proposal

Sales
Sales Presentation
Presentation

Chap. 16 Marketing 7e Lamb Hair McDaniel 27

©2004 South-Western/Thomson Learning
 6 Handling Objections

View
View objections
objections as as
requests
requests for
for information
information

Handling
Handling Anticipate
Anticipate
Objections
Objections specific
specific objections
objections

Use
Use the
the objection
objection
to
to close
close the
the sale
sale

Chap. 16 Marketing 7e Lamb Hair McDaniel 28

©2004 South-Western/Thomson Learning
 6 Closing the Sale

Look
Look for
for
customer
customer signals
signals

Closing
Closing Keep
Keep an
an open
open mind
mind
the
the Sale
Sale

Negotiate
Negotiate

Chap. 16 Marketing 7e Lamb Hair McDaniel 29

©2004 South-Western/Thomson Learning
 6 Following Up

Ensure
Ensure delivery
delivery
schedules
schedules are
are met
met
Responsibilities
Responsibilities Goods
Goods or
or service
service perform
perform
in
in as
Following as promised
promised
Following Up
Up
Employees
Employees are
are trained
trained

Chap. 16 Marketing 7e Lamb Hair McDaniel 30

©2004 South-Western/Thomson Learning
 7 Sales Management Responsibilities

Define
Define sales
sales goals
goals and
and
sales
sales process
process

Determine
Determine sales
sales
force
force structure
structure
Tasks
Tasks of
of
Sales Recruit
Recruit and
and train
train
Sales Management
Management sales
sales force
force

Compensate
Compensate and
and motivate
motivate
sales
sales force
force

Evaluate
Evaluate sales
sales force
force

Chap. 16 Marketing 7e Lamb Hair McDaniel 31

©2004 South-Western/Thomson Learning
 7 Defining Sales Goals

Clear
Clear

Precise
Precise
Sales
Sales Goals
Goals
Should
Should Be...
Be...
Measurable
Measurable

Time
TimeSpecific
Specific

Chap. 16 Marketing 7e Lamb Hair McDaniel 32

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 7 Quota

A statement of the
individual salesperson’s
sales objectives, usually
based on sales volume
alone but sometimes
including key accounts.

Chap. 16 Marketing 7e Lamb Hair McDaniel 33

©2004 South-Western/Thomson Learning
 7 Sales Force Structure

Geographic
Geographic Region
Region

Product
Product Line
Line
Common
Common
Sales
Sales Marketing
Marketing Function
Function
Organization
Organization
Structures
Structures
Market
Market or
or Industry
Industry

Individual
Individual client
client
or
or account
account
Chap. 16 Marketing 7e Lamb Hair McDaniel 34
©2004 South-Western/Thomson Learning
 7 Training the Sales Force

Company
Company policies
policies
and
and practice
practice

Selling
Selling techniques
techniques
Training
Training
includes...
includes... Product
Product knowledge
knowledge

Industry
Industry and
and customer
customer
characteristics
characteristics

Nonselling
Nonselling duties
duties
Chap. 16 Marketing 7e Lamb Hair McDaniel 35
©2004 South-Western/Thomson Learning
 Compensation Plans:
7
Basic Methods

Commission
Commission

Combination
Combination
Plans
Plans

Salary
Salary

On
OnLine
Line
http://www.marykay.com
http://www.marykay.com
Chap. 16 Marketing 7e Lamb Hair McDaniel 36
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 7 Compensation Plans

Straight
Straight The
The salesperson
salesperson is
is paid
paid some
some
Commission
Commission percentage
percentage when
when aa sale
sale is
is made.
made.

The
The salesperson
salesperson receives
receives aa salary
salary
Straight
Straight regardless
regardless of
of sales
sales
Salary
Salary productivity.
productivity.

Chap. 16 Marketing 7e Lamb Hair McDaniel 37

©2004 South-Western/Thomson Learning
 7 Effective Sales Leaders

Effective
Effective Sales
Sales Leaders
Leaders...
...
Are
Are assertive
assertive
Possess
Possess ego
ego drive
drive
Possess
Possess ego
ego strength
strength
Take
Take risks
risks
Are
Are innovative
innovative
Have
Have aa sense
sense of
of urgency
urgency
Are
Are empathetic
empathetic
Chap. 16 Marketing 7e Lamb Hair McDaniel 38
©2004 South-Western/Thomson Learning
 Evaluating the Sales Force:
7
Performance Measures

Sales
Sales Volume
Volume

Contribution
Contribution to
to Profit
Profit

Calls
Calls per
per Order
Order

Sales
Sales or
or Profits
Profits per
per Call
Call

Call
Call Percentage
Percentage Achieving
Achieving Goals
Goals

Chap. 16 Marketing 7e Lamb Hair McDaniel 39

©2004 South-Western/Thomson Learning
 The Impact of Technology
7
on Personal Selling
Laptop
Laptop computer
computer link
link

Cell
Cell phones
phones

Pagers
Pagers

Personal
Personal data
data assistants
assistants
Sales
Sales Force
Force
Automation E-Mail
E-Mail
Automation
Internet
Internet
Chap. 16 Marketing 7e Lamb Hair McDaniel 40
©2004 South-Western/Thomson Learning