Type of Buyer Loyal CustomersCompetitor’sCustomersBrand SwitchersPrice BuyersDesired Results Reinforce behaviorIncrease consumptionChange purchase timingBreak loyaltyPersuade to switchPersuade to buy your brand more oftenAppeal with low pricesSupply added valueSales PromotionExamples Loyalty marketingBonus packsSamplingSweepstakes, contests, premiumsPrice-lowering promotionTrade dealsCoupons, price-offpackages, refundsTrade dealsChapter 18 – Sales Promotion & Personal SellingSales Promotion-marketing communicationactivities, other than advertising, personalselling, and public relations, in which ashort-term incentive motivates a purchase-Advertising  reason to buy-Sales Promotion  incentive to buy-Goal= Drive immediate purchase=influenceBEHAVIOR (not attitude)Consumer Sales Promotion-Coupons & rebates-coupon: a certificate that entitlesconsumers to an immediate pricereduction-rebate: a cash refund given for the purchase of a product during a specific period-premiums: -an extra item offered to the consumer, usually in exchange for some proof of purchase-loyalty marketing programs-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-contests: promotions that require skill or ability to compete for prizes-sweepstakes: promotions that depend on chance or luck, with free participation-sampling-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-couponsTrade Sales PromotionTraditionalPersonal SellingLO5Sell advice, assistance, counsel Sell products Focus on closing salesLimited sales planningDiscuss productAssess “product-specific” needs“Lone wolf” approachPricing/product focusShort-term sales follow-up Focus on customer’s bottom lineSales planning is top priorityBuild problem-solving environmentConduct discovery in scope of operationsTeam approachProfit impact and strategic benefit focusLong-term sales follow-up InitialSalesRepeatSalesSuccessiveSalesTraditional SalesRelationship SalesSalesIncreasesResultFromCreatingValue-trade allowances-price reduction offered by manufacturers to intermediaries, such as wholesalers & retailers-push money-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 relationsPersonal 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-advertising & sales promotion are more important if …-product has low value-product is standardized-there are many customers-product is simple to understand-customers are geographicallydispersed-advantages:-detailed explanation ordemonstration-variable sales message-directed to qualified prospects-controllable adjustable sellingcosts-more effective than otherpromotion in obtaining sale & gainingcustomer satisfactionRelationship Selling- (consultative): a sales practice that involves building, maintaining, & enhancing interactions with customers in order to develop long-term satisfaction through mutuallybeneficial partnershipThe Selling Process1. Generate leadsa. Advertising, publicity. Direct mail/telemarketing, cold calling, internet web site, referrals, networking, trade shows/conventions, company recordsb. 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 status2. Qualify leadsa. Recognized needi. Needs assessment: a determination of the customer’s specific needs and wants and the range of options a customer has for satisfying themb. Buying powerc. Receptivity & accessibility3. Probe customer needsa. A salesperson must know everything about…i. Product or serviceii. Customersiii. Competitioniv. industry4. Develop solutions( & Proposing)a. Sales presentationi. 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,PRACTICEb. Sales proposal5. Handle objectionsa. View objections as requests for informationb. Anticipate specific objectionsc. Investigate the objection with the customerd. Be aware of competitors’ productse. Stay calmf. Use the objection to close the sale6. Close the salea. Look for customer signalsb. Keep an open mindc. Negotiated. Tailor to each market7. Follow up-impact of technology on personal selling: cell phones, laptops, pagers, email, electronic organizers,