Sales Promotion and

1. 15 Sales Promotion and Personal Selling Canadian Adaptation prepared by Don Hill, Langara College

2. Learning 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

3. 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

4. Learning Objective Define and state the objectives of sales promotion 1 Online www.theaircanadacentre.com www.bluejays.mlb.com 1

5. Sales Promotion Sales PromotionMarketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase. Online www.save.ca www.coupons.com 1

6. ConsumerSales Promotion Consumer market Goal = Drive immediate purchase = Influence behaviour Trade Sales Promotion Marketing channel Sales Promotion Objectives 1

7. Immediate purchases Increase trial Increase product usage Encourage repurchase Try a different brand Encourage brand loyalty Uses of Sales Promotion 1

8. Learning Objective Discuss the most common forms of consumer sales promotion 2 2

9. Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion Tools for Consumer Sales Promotion 2

10. 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 product. Premium An extra item offered to the consumer, usually in exchange for some proof of purchase. Tools for Consumer Sales Promotion 2

11. Loyalty Marketing Program A promotional program designed to build long-term, mutually beneficial relationships between a company and key customers. Frequent Buyer Program A loyalty program in which loyal consumers are rewarded for making multiple purchases. Tools for Consumer Sales Promotion 2

12. Contest Promotions that require skill or ability to compete for prizes. Sweepstakes Promotions that depend on chance or luck, with free participation. Tools for Consumer Sales Promotion Online www.somewhereincanada.com 2

13. Sampling A promotional program that allows the consumer the opportunity to try a product or service for free. Tools for Consumer Sales Promotion 2

14. Direct mail Door-to-door delivery Packaging with another product Retail store demonstration Methods of Sampling 2

15. Goals of Point-of-Purchase Displays Build traffic Advertise the product Induce impulse buying Point-of-Purchase Promotion 2

16. Free merchandise Sweepstakes Free shipping Coupons Online Sales Promotion Online http://www.upromote.com 2

17. Learning Objective List the most common forms of trade sales promotion 3 3

18. Trade Allowances Push Money Training Free Merchandise Instore Demonstration Conventions & Trade Shows Tools for Trade Sales Promotion 3

19. Trade Allowance Trade Allowance A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers. 3

20. Push Money 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. 3

21. Gain new distributors Obtain support for consumer sales promotions Build or reduce dealer inventories Improve trade relations The Role of Trade Sales Promotion 3

22. Learning Objective 4 Describe personal selling 4

23. Advantages of Personal Selling • Detailed explanation or demonstration • Variable sales message • Directed at qualified prospects • Controllable adjustable selling costs • Effective at obtaining sale and gaining customer satisfaction 4

24. Advertising & Sales Promotion are more important if... Personal Selling is more important if... Product has a low value Product has a high value Product is standardized Product is custom made There are many customers There are few customers Product is simple to understand Product is technically complex Customers are concentrated Customers are geographically dispersed Personal Selling 4

25. Learning Objective Discuss the key differences between relationship selling and traditional selling 5 5

26. Relationship Selling Relationship 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

27. Traditional Personal Selling Relationship 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 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 Relationship Selling versus Traditional Selling 5

28. Key Differences between Traditional and Relationship Selling 5

29. Learning Objective 6 List the steps in the selling process 6

30. Sales Process Sales Process The set of steps a salesperson goes through in a particular organization to sell a particular product or service. 6

31. Steps in the Selling Process 6

32. Time Spent in Key Steps of Selling Process 6

33. Advertising Publicity Direct Mail/ Telemarketing Cold Calling Internet Web Site Referrals Networking Trade Shows/ Conventions Company Records Generating Leads Online www.infocanada.com 6

34. Cold Calling Cold 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

35. Recognized need Buying power Receptivity andaccessibility Characteristics of Qualified Leads Online www.citidirectory.com www.dnb.ca 6

36. Needs Assessment Needs Assessment A determination of the customer’s specific needs and wants and the range of options a customer has for satisfying them. 6

37. Product or service Salesperson must know everything about... Customers and their needs Competition Industry Probing Needs 6

38. Sales Proposal Sales Presentation Developing and Proposing Solutions 6

39. 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! Powerful Presentations 6

40. View objections as requests for information Anticipate specific objections Use the objection to close the sale Handling Objections 6

41. Look for customer signals Keep an open mind Negotiate Closing the Sale Online www.cpsa.com 6

42. Ensure delivery schedules are met Goods or service perform as promised Employees are trained Following Up 6

43. Learning Objective 7 Describe the functions of sales management 7

44. Define sales goals and sales process Determine sales force structure Recruit and train sales force Compensate and motivate sales force Supervise and evaluate sales force Sales Management Responsibilities 7

45. Clear Sales Goals Should Be... Precise Measurable Time Specific Defining Sales Goals 7

46. Quota 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

47. Geographic region Product line Marketing function Market or industry Individual client or account Sales Force Structure 7

48. Company policies and practice Selling techniques Training includes... Product knowledge Industry and customer characteristics Nonselling duties Training the Sales Force 7

49. Commission Combination Plans Salary Compensation Plans: Basic Methods Online www.smei.org 7

50. Straight Commission The salesperson is paid some percentage when a sale is made. Straight Salary The salesperson receives a salary regardless of sales productivity. Compensation Plans 7