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