copyright © 2009 by nelson education, ltd. all rights reserved

1Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Sales Promotion and

15

Personal Selling

Canadian Adaptation prepared by Canadian Adaptation prepared by Don Hill, Langara CollegeDon Hill, Langara College

2Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Learning ObjectivesLearning Objectives

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

3Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Learning Objectives (continued)Learning Objectives (continued)

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

4Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Learning Objective Learning Objective

Define and state the objectives of sales promotion

Onlinewww.theaircanadacentre.comwww.bluejays.mlb.com

11

1

5Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Sales PromotionSales Promotion

Onlinewww.save.cawww.coupons.com

Sales PromotionSales PromotionMarketing communication activities,

other than advertising, personal

selling, and public relations, in which a

short-term incentive motivates a

purchase.

1

6Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Sales Promotion ObjectivesSales Promotion Objectives

1

ConsumerSales

Promotion

ConsumerSales

Promotion

Trade Sales

Promotion

Trade Sales

Promotion

Consumer market

Marketing channel

Goal = Drive immediate purchase= Influence behaviour

7Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Uses of Sales PromotionUses of Sales Promotion

1

Immediate purchasesImmediate purchases

Increase trialIncrease trial

Increase product usageIncrease product usage

Encourage repurchaseEncourage repurchase

Try a different brandTry a different brand

Encourage brand loyaltyEncourage brand loyalty

8Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Learning Objective Learning Objective

Discuss the most common forms of consumer sales promotion

22

2

9Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Tools for Consumer Sales Tools for Consumer Sales PromotionPromotion

Coupons and RebatesCoupons and Rebates

PremiumsPremiums

Loyalty Marketing ProgramsLoyalty Marketing Programs

Contests & SweepstakesContests & Sweepstakes

SamplingSampling

Point-of-Purchase PromotionPoint-of-Purchase Promotion

2

10Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

CouponCoupon

RebateRebate

PremiumPremium

A certificate that entitles consumers to an immediate

price reduction.

A certificate that entitles consumers to an immediate

price reduction.

A cash refund given for the purchase of a product during

a specific product.

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.

An extra item offered to the consumer, usually in exchange

for some proof of purchase.

Tools for Consumer Sales Tools for Consumer Sales PromotionPromotion

2

11Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

LoyaltyMarketingProgram

LoyaltyMarketingProgram

FrequentBuyer

Program

FrequentBuyer

Program

A promotional program designed to build long-term, mutually

beneficial relationships between a company and key customers.

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.

A loyalty program in which loyal consumers are rewarded for making multiple purchases.

Tools for Consumer Sales Tools for Consumer Sales PromotionPromotion

2

12Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

ContestContest

SweepstakesSweepstakes

Promotions that require skill or ability to compete for

prizes.

Promotions that require skill or ability to compete for

prizes.

Promotions that depend on chance or luck, with

free participation.

Promotions that depend on chance or luck, with

free participation.

Tools for Consumer Sales Tools for Consumer Sales PromotionPromotion

Onlinewww.somewhereincanada.com

2

Click

13Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

SamplingSampling A promotional program that allows the consumer the opportunity to try a

product or service for free.

A promotional program that allows the consumer the opportunity to try a

product or service for free.

Tools for Consumer Sales Tools for Consumer Sales PromotionPromotion

2

Click

14Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Methods of SamplingMethods of Sampling

Direct mailDirect mail

Door-to-door deliveryDoor-to-door delivery

Packaging with another productPackaging with another product

Retail store demonstrationRetail store demonstration

2

15Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Point-of-Purchase PromotionPoint-of-Purchase Promotion

Goals ofGoals of Point-of-PurchasePoint-of-Purchase DisplaysDisplays

Goals ofGoals of Point-of-PurchasePoint-of-Purchase DisplaysDisplays

Build traffic Build traffic

Advertise the productAdvertise the product

Induce impulse buyingInduce impulse buying

2

16Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Onlinehttp://www.upromote.com

Online Sales PromotionOnline Sales Promotion

Free merchandiseFree merchandise

SweepstakesSweepstakes

Free shippingFree shipping

CouponsCoupons

2

17Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Learning Objective Learning Objective

List the most common forms of trade sales promotion

33

3

18Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Tools for Trade Sales PromotionTools for Trade Sales Promotion

Trade AllowancesTrade Allowances

Push MoneyPush Money

TrainingTraining

Free MerchandiseFree Merchandise

Instore DemonstrationInstore Demonstration

Conventions & Trade ShowsConventions & Trade Shows

3

19Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Trade AllowanceTrade Allowance

Trade AllowanceTrade Allowance

A price reduction offered by

manufacturers to intermediaries,

such as wholesalers and retailers.

3

20Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Push MoneyPush Money

Push MoneyPush Money

Money offered to channel intermediaries

to encourage them to “push” products--

that is, to encourage other members of

the channel to sell the products.

3

21Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

The Role of Trade Sales The Role of Trade Sales PromotionPromotion

Improve trade relations

Gain new distributors

Build or reducedealer inventories

Obtain support forconsumer sales promotions

3

22Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Learning Objective Learning Objective

Describe personal selling44

4

23Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Advantages of Personal SellingAdvantages of Personal Selling

4

Detailed explanation or demonstration

Variable sales message

Directed at qualified prospects

Controllable adjustable selling costs

Effective at obtaining sale and gaining customer satisfaction

24Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Personal SellingPersonal Selling

Customers are concentrated

Customers are concentrated

Product is technically complex

Product is technically complex

There are few customersThere are few customers

Product is custom madeProduct is custom made

Product has a high valueProduct has a high value

Personal Selling Personal Selling is more important if...is more important if...

Customers are geographically dispersed

Customers are geographically dispersed

Product is simple to understand

Product is simple to understand

There are many customersThere are many customers

Product is standardizedProduct is standardized

Product has a low valueProduct has a low value

Advertising & Sales Promotion Advertising & Sales Promotion are more important if...are more important if...

4

25Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Learning Objective Learning Objective

Discuss the key differences between relationship selling and traditional selling

55

5

26Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Relationship SellingRelationship Selling

Relationship SellingRelationship Selling

A sales practice that involves building,

maintaining, and enhancing interactions

with customers in order to develop long-

term satisfaction through mutually

beneficial partnerships.

5

Click

27Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Relationship Selling Relationship Selling versus Traditional Sellingversus Traditional Selling

Sell advice, assistance, counsel Sell products

TraditionalTraditionalPersonal SellingPersonal Selling

Focus on closing sales

Limited sales planning

Discuss productAssess “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 environmentConduct discovery in scope of operationsTeam approachProfit impact and strategic benefit focusLong-term sales follow-up

Relationship SellingRelationship Selling

5

28Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Key Differences between Traditional Key Differences between Traditional and Relationship Sellingand Relationship Selling

5

29Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Learning Objective Learning Objective

List the steps in the selling process

66

6

30Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Sales ProcessSales Process

Sales ProcessSales Process

The set of steps a salesperson goes

through in a particular organization

to sell a particular product or service.

6

31Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Steps in the Selling ProcessSteps in the Selling Process

6

32Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Time Spent in Key Steps of Selling Time Spent in Key Steps of Selling ProcessProcess

Key Selling Steps Traditional

Selling

Relationship

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

6

33Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Onlinewww.infocanada.com

Generating LeadsGenerating Leads

AdvertisingAdvertising PublicityPublicity Direct Mail/TelemarketingDirect Mail/

Telemarketing

Cold CallingCold Calling Internet Web Site

Internet Web Site ReferralsReferrals

Trade Shows/Conventions

Trade Shows/ConventionsNetworkingNetworking Company

RecordsCompany Records

6

34Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Cold CallingCold Calling

Cold CallingCold Calling

A form of lead generation in which the

salesperson approaches potential

buyers without any prior knowledge of

the prospects’ needs or financial status.

6

35Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Characteristics of Qualified LeadsCharacteristics of Qualified Leads

6

Recognized needRecognized need

Buying powerBuying power

Receptivity andaccessibility

Receptivity andaccessibility

Onlinewww.citidirectory.comwww.dnb.ca

36Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Needs AssessmentNeeds Assessment

Needs AssessmentNeeds Assessment

A determination of the customer’s

specific needs and wants and the range

of options a customer has for satisfying

them.

6

37Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Probing NeedsProbing Needs

Product or serviceProduct or service

Customers and their needsCustomers and their needs

CompetitionCompetition

IndustryIndustry

Salesperson must knoweverything

about...

Salesperson must knoweverything

about...

6

38Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Developing and Proposing Developing and Proposing SolutionsSolutions

Sales ProposalSales Proposal

Sales PresentationSales Presentation

6

39Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Powerful PresentationsPowerful Presentations

6

Be well prepared

Use eye contact

Ask open-ended questions

Be poised

Use hand gestures and voice inflection

Focus on the customer needs

Incorporate visual elements

Know how to operate the A/V equipment

Make sure the equipment works

PRACTICE, PRACTICE, PRACTICE!

40Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Handling ObjectionsHandling Objections

Use the objection to close the sale

Use the objection to close the sale

Anticipate specific objections

Anticipate specific objections

View objections as requests for information

View objections as requests for information

6

41Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Closing the SaleClosing the Sale

NegotiateNegotiate

Keep an open mindKeep an open mind

Look for customer signals

Look for customer signals

6

Onlinewww.cpsa.com

42Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Following UpFollowing Up

Employees are trainedEmployees are trained

Goods or service performas promised

Goods or service performas promised

Ensure delivery schedules are metEnsure delivery

schedules are met

6

43Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Learning Objective Learning Objective

Describe the functions of sales management

77

7

44Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Sales Management Sales Management ResponsibilitiesResponsibilities

Supervise and evaluate sales forceSupervise and evaluate sales force

Compensate and motivate sales forceCompensate and motivate sales force

Recruit and train sales forceRecruit and train sales force

Determine sales force structureDetermine sales force structure

Define sales goals and sales processDefine sales goals and sales process

7

45Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Defining Sales GoalsDefining Sales Goals

ClearClear

PrecisePrecise

MeasurableMeasurable

Time SpecificTime Specific

Sales GoalsShould Be...Sales GoalsShould Be...

7

46Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

QuotaQuota

Quota

A statement of the individual salesperson’s

sales objectives, usually based on sales

volume alone but sometimes including key

accounts, new accounts, repeat sales and

specific products.

7

47Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Sales Force StructureSales Force Structure

Individual client or account

Individual client or account

Market or industryMarket or industry

Marketing functionMarketing function

Product lineProduct line

Geographic regionGeographic region

7

48Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Training the Sales ForceTraining the Sales Force

Training Training includes...includes...

Training Training includes...includes...

Nonselling dutiesNonselling duties

Industry and customer characteristics

Industry and customer characteristics

Product knowledgeProduct knowledge

Selling techniquesSelling techniques

Company policies and practice

Company policies and practice

7

49Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Compensation Plans: Basic Compensation Plans: Basic MethodsMethods

CommissionCommission

SalarySalary

CombinationPlans

CombinationPlans

Onlinewww.smei.org

7

50Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Compensation PlansCompensation Plans

StraightCommission

StraightCommission

StraightSalary

StraightSalary

The salesperson is paid some percentage when a sale is made.The salesperson is paid some percentage when a sale is made.

The salesperson receives a salary regardless of sales

productivity.

The salesperson receives a salary regardless of sales

productivity.

7

51Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Effective Sales LeadersEffective Sales Leaders

Effective Sales LeadersEffective Sales Leaders......Effective Sales LeadersEffective Sales Leaders......

Are assertive Are assertive

Possess ego drivePossess ego drive

Possess ego strengthPossess ego strength

Take risksTake risks

Are innovativeAre innovative

Have a sense of urgencyHave a sense of urgency

Are empatheticAre empathetic

7

52Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Evaluating the Sales Force: Evaluating the Sales Force: Performance MeasuresPerformance Measures

Contribution to profitContribution to profit

Calls per orderCalls per order

Sales or profits per callSales or profits per call

Call percentage achieving goalsCall percentage achieving goals

Sales volumeSales volume

7

53Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

The Impact of Technology The Impact of Technology on Personal Sellingon Personal Selling

Cell phonesCell phones

LaptopsLaptops

PagersPagers

E-MailE-Mail

Electronic organizersElectronic organizers

7

54Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 15

Benefits of Technology as a Sales Benefits of Technology as a Sales ToolTool

7

Ease administration burdenEase administration burden

Arm salespeople with valuable informationArm salespeople with valuable information

Track sales performanceTrack sales performance

Enable collaborationEnable collaboration

Make sales management more effectiveMake sales management more effective