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Chapter 18
Sales Promotion and Personal Selling
Sales Promotion
Sales
Promotion
Marketing communication
activities, other than
advertising, personal
selling, and public relations,
in which a short-term
incentive motivates a
purchase.
Sales Promotion
Consumer
Sales
Promotion
Goal
Trade
Sales
Promotion
Consumer market
Drive immediate purchase
Influence behavior
Marketing channel
Tools for Consumer Sales
Promotion
Coupons and Rebates
Premiums
Loyalty Marketing Programs
Contests & Sweepstakes
Sampling
Point-of-Purchase Promotion
Sales Promotion toward
Consumers
Product sampling:
samples given to
consumers to try the
product.
Coupons: reduction in
price given in the
form of a certificate.
Sales Promotion toward
Consumers
Rebates: portion of the
price is returned to the
purchaser.
Contests and Sweepstakes:
 Contests: consumer
must perform
 Sweepstakes: lottery
Sales Promotion toward
Consumers
Premiums: product
offered free or at
reduced charge if
another product is
purchased.
Multiple Purchase Offers:
two-for-one or other
multiple purchase tied to
lower price or other
promotion.
Tools for Consumer Sales
Promotion
Loyalty
Marketing
Program
Frequent
Buyer
Program
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.
Point-of-Purchase Promotion
 Build traffic
 Advertise the product
 Induce impulse buying
Sales Promotion toward
Consumers
Product placements: conveying a noncommercial
message by having a product appear in a
movie or TV show.
Tie-ins: collaborative effort between two or
more organizations in a promotional effort.
Trade Sales Promotion
Trade Allowances
Push Money
Training
Free Merchandise
Store Demonstration
Conventions & Trade Shows
Trade Promotions
Trade
Allowance
A price reduction offered
by manufacturers to
intermediaries, such as
wholesalers and retailers.
Trade Promotions
Push 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.
Trade Promotions
Trade show: meeting or
convention of members
of a particular industry.
Contest: offering
bonuses or prizes for
sales performance in
order to motivate a
sales force.
Trade Promotions
Point-of-purchase:
Promotional items which
attract attention at the
places where products
are purchased.
Cooperative advertising:
paid for jointly by
supplier and retailer.
Personal Selling
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.
There are few customers.
There are many customers.
Product is
technically complex.
Product is
simple to understand.
Customers are
concentrated.
Customers are
geographically dispersed.
Traditional
Traditional
Selling
Personal Selling
Relationship Selling
and Relationship
Selling
Sell products
Sell advice, assistance, counsel
Focus on closing sales
Focus on customer’s bottom line
Limited sales planning
Sales planning is top priority
Discuss product
Build problem-solving environment
Assess “product-specific”
needs
Conduct discovery in scope of
operations
“Lone wolf” approach
Team approach
Pricing/product focus
Profit impact and strategic
benefit focus
Short-term sales follow-up
Long-term sales follow-up
Steps in the Selling Process
Generate Leads
Qualify Leads
Probe Customer Needs
Develop Solutions
Handle Objections
Close the Sale
Follow Up
Sources of Leads
Advertising
Publicity
Direct Mail/
Telemarketing
Cold Calling
Internet Web
Site
Referrals
Networking
Trade Shows/
Conventions
Company
Records
Qualifying Leads
Recognized need
Buying power
Receptivity and
accessibility
Developing and Proposing
Solutions
Sales Proposal
Sales Presentation
Handling Objections
 View objections as requests for information
 Anticipate specific objections
 Investigate the objection with the customer
 Be aware of competitors’ products
 Stay calm
 Use the objection to close the sale
Closing the Sale
Look for
customer signals
Keep an open mind
Negotiate
Tailor to each market