Chapter 16 Sales Promotion and Personal Selling Sales

Chapter 16 Sales Promotion and Personal Selling

Sales Promotion Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase.

Sales Promotion Targets Consumer Sales Promotion Trade Sales Promotion

Objectives of Sales Promotion Type of Buyer Desired Results Sales Promotion Examples Loyal Customers • Reinforce behavior • Loyalty marketing • Increase consumption • Bonus packs • Change timing Competitor’s Customers • Break loyalty • Persuade to switch • Sampling • Sweepstakes, contests, premiums Brand Switchers • Persuade to buy your brand more often • Price-lowering promotion • Trade deals Price Buyers • Appeal with low prices • Supply added value • Coupons, price-off packages, refunds • Trade deals

Tools for Consumer Sales Promotion Coupons and Rebates Premiums Loyalty Marketing Programs Popular Tools for Consumer Sales Promotion Contests & Sweepstakes Sampling Point-of-Purchase Promotion

Tools for Trade Sales Promotion Trade Allowances Push Money Training Unique Tools for Trade Sales Promotion Free Merchandise Store Demonstration Conventions & Trade Shows

The Role of Trade Sales Promotion Gain new distributors Obtain support for consumer sales promotions Build or reduce dealer inventories Improve trade relations

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

Steps in the Selling Process Generate Leads Qualify Leads Probe Customer Needs Develop Solutions Basic Steps in the Personal Selling Process Handle Objections Close the Sale Follow Up

Probing Needs Product or service Salesperson must know everything about. . . Customers and their needs Competition Industry

Handling Objections View objections as requests for information Handling Objections Anticipate specific objections Use the objection to close the sale

The Impact of Technology on Personal Selling Laptop computer link Mobile telephones Pagers Personal data assistants Sales Force Automation E-Mail Internet