Chapter 18 Sales Promotion Personal Selling Sales Promotion marketing communication activities other than advertising personal selling and public relations in which a short term incentive motivates a purchase Advertising reason to buy Sales Promotion incentive to buy Goal Drive immediate purchase influence BEHAVIOR not attitude Consumer Sales Promotion Coupons rebates Type of Buyer Loyal Customers Competitor s Customers Brand Switchers Sales Promotion Desired Results Examples Reinforce behavior Loyalty marketing Increase consumption Bonus packs Change purchase timing Sampling Break loyalty Sweepstakes Persuade to switch contests premiums Price lowering Persuade to buy your promotion brand more often Trade deals Coupons price off Appeal with low packages refunds prices Trade deals Supply added value Price Buyers coupon a certificate that entitles consumers to an immediate price reduction rebate a cash refund given for the purchase of a product during a specific period premiums loyalty marketing programs an extra item offered to the consumer usually in exchange for some proof of purchase a promotional program designed to build long term mutually beneficial relationships between a company and key customers frequent buyer program a loyalty programs in which loyal consumers are rewarded for making multiple purchases contests sweepstakes sampling contests promotions that require skill or ability to compete for prizes sweepstakes promotions that depend on chance or luck with free participation a promotional program that allows the consumer the opportunity to try a product or service for free methods of sampling direct mail door to door delivery packaging with another product retail store demonstration point of purchase promotion build traffic advertise the product induce impulse buying Online Sales effective types free merchandise sweepstakes free shipping with purchases coupons Trade Sales Promotion trade allowances push money price reduction offered by manufacturers to intermediaries such as wholesalers retailers money offered to channel intermediaries to encourage them to push products that is ot encourage other members of the channel to sell the products training free merchandise store demonstration conventions trade shows benefits help manufacturers gain new distribution obtain wholesaler retailer support for consumer sales promotions build or reduce dealer inventories improve trade relations advertising sales promotion are more important if Personal Selling is more important if product has a high values product is custom made there are few customers product is technically complex customers are concentrated product has low value product is standardized there are many customers product is simple to customers are geographically dispersed advantages demonstration detailed explanation or variable sales message directed to qualified prospects controllable adjustable selling costs more effective than other understand Traditional Personal Selling Sell advice assistance counsel Sell products Focus on closing sales Focus on customer s bottom line Limited sales planning Sales planning is top priority Discuss product Build problem solving environment Conduct discovery in scope of operations Assess product specific needs Team approach Lone wolf approach Profit impact and strategic benefit focus Pricing product focus Long term sales follow up Short term sales follow up LO5 promotion in obtaining sale gaining customer satisfaction Relationship Selling consultative a sales practice that involves building maintaining enhancing interactions with customers in order to develop long term satisfaction through mutually beneficial partnership The Selling Process 1 Generate leads Initial Sales Repeat Sales Successive Sales Traditional Sales Relationship Sales Sales Increases Result From Creating Value a Advertising publicity Direct mail telemarketing cold calling internet web site referrals networking trade shows conventions company records b Cold calling a fom of lead generation in which the sales person approaches potential buyers without any prior knowledge of the prospects needs or financial status 2 Qualify leads a Recognized need i Needs assessment a determination of the customer s specific needs and wants and the range of options a customer has for satisfying them i Well prepared use eye contact ask open ended questions be poised use hand gestures voice inflection focus on customer needs incorporate visual elements know how to operate the A V equipment PRACTICE a A salesperson must know everything about b Buying power c Receptivity accessibility 3 Probe customer needs i Product or service ii Customers iii Competition industry iv 4 Develop solutions Proposing a Sales presentation b Sales proposal 5 Handle objections Investigate the objection with the customer a View objections as requests for information b Anticipate specific objections c d Be aware of competitors products e Stay calm f Use the objection to close the sale 6 Close the sale a Look for customer signals b Keep an open mind c Negotiate d Tailor to each market 7 Follow up impact of technology on personal selling cell phones laptops pagers email electronic organizers internet