Sales Promotion and Personal Selling Discussing the most common forms of consumer sales promotion and the key differences between relationship selling and traditional selling

1. 1
Sales Promotion and
Personal Selling
Hany Sewilam @2017 - Sales Promotion

2. Learning Outcomes
2
Define and state the objectives of sales promotion
Discuss the most common forms of consumer sales
promotion
List the most common forms of trade sales promotion
Describe personal selling
LO1
LO2
LO3
LO4
Hany Sewilam @2017 - Sales Promotion

3. Learning Outcomes
3
Discuss the key differences between relationship
selling and traditional selling
List the steps in the selling process
Describe the functions of sales management
LO5
LO6
LO7
Hany Sewilam @2017 - Sales Promotion

4. Sales Promotion
4
Define and state the
objectives of sales promotion.
LO1
Hany Sewilam @2017 - Sales Promotion

5. Sales Promotion
5
Marketing activities, other than
advertising, personal selling,
and public relations, that
stimulate consumer buying
and dealer effectiveness.
Hany Sewilam @2017 - Sales Promotion

6. Sales Promotion
6
Advertising Reason to buy
Sales Promotion Incentive to buy
Hany Sewilam @2017 - Sales Promotion

7. Sales Promotion
7
Consumer
Sales
Promotion
Consumer
Sales
Promotion
Trade
Sales
Promotion
Trade
Sales
Promotion
Consumer market
Marketing channel
Drive immediate purchase,
Influence behavior
Goal
Hany Sewilam @2017 - Sales Promotion

8. Objectives of Sales Promotion
8
Type of BuyerType of Buyer
Loyal
Customers
Competitor’s
Customers
Brand
Switchers
Price Buyers
Desired ResultsDesired Results
•Reinforce behavior
•Increase consumption
•Change purchase timing
•Break loyalty
•Persuade to switch
•Persuade to buy your
brand more often
•Appeal with low
prices
•Supply added value
Sales PromotionSales Promotion
ExamplesExamples
•Loyalty marketing
•Bonus packs
•Sampling
•Sweepstakes,
contests, premiums
•Price-lowering
promotion
•Trade deals
•Coupons, price-off
packages, refunds
•Trade deals
Hany Sewilam @2017 - Sales Promotion

9. Review Learning Outcome
The Objectives of Sales Promotion
9
LO1
Hany Sewilam @2017 - Sales Promotion

10. Tools for Consumer Sales
Promotion
10
Discuss the most common forms
of consumer sales promotion.
LO2
Hany Sewilam @2017 - Sales Promotion

11. Tools for Consumer Sales Promotion
11
Coupons and RebatesCoupons and Rebates
PremiumsPremiums
Loyalty Marketing ProgramsLoyalty Marketing Programs
Contests & SweepstakesContests & Sweepstakes
SamplingSampling
Point-of-Purchase PromotionPoint-of-Purchase Promotion
Hany Sewilam @2017 - Sales Promotion

12. Coupons, Rebates, and Premiums
12
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 period.
A cash refund given for the
purchase of a product during
a specific period.
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.
Hany Sewilam @2017 - Sales Promotion

13. Loyalty Marketing
13
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 customers are
rewarded for making
multiple purchasers.
Hany Sewilam @2017 - Sales Promotion

14. Contests and Sweepstakes
14
Online
http://www.online-sweepstakes.com/
Contests - Promotions that
require skill or ability to
compete for prizes.
Sweepstakes - Promotions that
depend on chance or luck,
with free participation.
Hany Sewilam @2017 - Sales Promotion

15. Sampling
15
A promotional program that
allows the consumer the
opportunity to try a product or
service for free.
Hany Sewilam @2017 - Sales Promotion

16. Methods of Sampling
16
Direct mailDirect mail
Door-to-door deliveryDoor-to-door delivery
Packaging with another productPackaging with another product
Retail store demonstrationRetail store demonstration
Hany Sewilam @2017 - Sales Promotion

17. Point-of-Purchase Promotion
• Build traffic
• Advertise the product
• Induce impulse buying
17Hany Sewilam @2017 - Sales Promotion

18. Online Sales Promotion
• Free merchandise
• Sweepstakes
• Free shipping with purchases
• Coupons
18
Effective Types of Online Sales PromotionEffective Types of Online Sales Promotion
Hany Sewilam @2017 - Sales Promotion

19. Review Learning Outcome
Consumer Sales Promotion
19
Coupons and rebates
Premiums
Loyalty marketing programs
Contests and Sweepstakes
Sampling
P-O-P
Online
LO2
Hany Sewilam @2017 - Sales Promotion

20. Tools for Trade Sales Promotion
20
List the most common forms
of trade sales promotion.
LO3
Hany Sewilam @2017 - Sales Promotion

21. Trade Sales Promotion
21
Trade AllowancesTrade Allowances
Push MoneyPush Money
TrainingTraining
Free MerchandiseFree Merchandise
Store DemonstrationStore Demonstration
Conventions & Trade ShowsConventions & Trade Shows
Hany Sewilam @2017 - Sales Promotion

22. Trade Allowance
22
A price reduction offered
by manufacturers
to intermediaries, such as
wholesalers and retailers.
Hany Sewilam @2017 - Sales Promotion

23. Push Money
23
Money offered to
channel intermediaries to encourage
them to “push” products– that is,
to encourage other members of the
channel to sell the products.
Hany Sewilam @2017 - Sales Promotion

24. Benefits of Trade Promotions
24
 Help manufacturers gain new distribution
 Obtain wholesaler and retailer support for
consumer sales promotions
 Build or reduce dealer inventories
 Improve trade relations
Hany Sewilam @2017 - Sales Promotion

25. Review Learning Outcome
Forms of Trade Sales Promotion
25
LO3
Hany Sewilam @2017 - Sales Promotion

26. Personal Selling
26
Describe personal selling.
LO4
Hany Sewilam @2017 - Sales Promotion

27. Personal Selling
27
Personal Selling
is more important if...
Customers are
concentrated.
Customers are
concentrated.
Product is
technically complex.
Product is
technically complex.
There are few customers.There are few customers.
Product is custom made.Product is custom made.
Product has a high value.Product has a high value.
Customers are
geographically dispersed.
Customers are
geographically dispersed.
Product is
simple to understand.
Product is
simple to understand.
There are many customers.There are many customers.
Product is standardized.Product is standardized.
Product has a low value.Product has a low value.
Advertising & Sales Promotion
are more important if...
Hany Sewilam @2017 - Sales Promotion

28. Review Learning Outcome
Personal Selling
28
LO4
 Detailed explanation or demonstration
 Variable sales message
 Directed to qualified prospects
 Controllable adjustable selling costs
 Effective at obtaining sale and gaining
customer satisfaction
Personal
Selling
Advantages
Personal
Selling
Advantages
Hany Sewilam @2017 - Sales Promotion

29. Relationship Selling
29
Discuss the key differences
between relationship selling
and traditional selling.
LO5
Hany Sewilam @2017 - Sales Promotion

30. Relationship Selling
30
Relationship (Consultative)
Selling - A sales practice that
involves building, maintaining,
and enhancing interactions
with customers in order to
develop long-term satisfaction
through mutually beneficial
partnership.
Hany Sewilam @2017 - Sales Promotion

31. Traditional Selling
and Relationship Selling
31
Sell advice, assistance, counselSell products
TraditionalTraditional
Personal SellingPersonal Selling
Focus on closing sales
Limited sales planning
Discuss product
Assess “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 environment
Conduct discovery in scope of
customers’ operations
Team approach
Profit impact and strategic
benefit focus
Long-term sales follow-up
Relationship SellingRelationship Selling
Hany Sewilam @2017 - Sales Promotion

32. Review Learning Outcome
Relationship Selling vs. Traditional Selling
32
LO5
Initial
Sales
Repeat
Sales
Successive
Sales
Traditional Sales
Relationship Sales
Sales
Increases
Result
From
Creating
Value
Hany Sewilam @2017 - Sales Promotion

33. Steps in the Selling Process
33
List the steps in the
selling process.
LO6
Hany Sewilam @2017 - Sales Promotion

34. Steps in the Selling Process
34
Generate LeadsGenerate Leads
Qualify LeadsQualify Leads
Probe Customer NeedsProbe Customer Needs
Develop/Propose SolutionsDevelop/Propose Solutions
Handle ObjectionsHandle Objections
Close the SaleClose the Sale
Follow UpFollow Up
Hany Sewilam @2017 - Sales Promotion

35. Time Spent in Key Steps of
Selling Process
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
35Hany Sewilam @2017 - Sales Promotion

36. Generating Leads
36
AdvertisingAdvertising PublicityPublicity Direct Mail/
Telemarketing
Direct Mail/
Telemarketing
Cold CallingCold Calling Internet Web
Site
Internet Web
Site ReferralsReferrals
Trade Shows/
Conventions
Trade Shows/
ConventionsNetworkingNetworking Company
Records
Company
Records
Online
http://www.linkedin.com
http://www.ryze.com
Hany Sewilam @2017 - Sales Promotion

37. Referral and Networking
37
Referral – A recommendation
to a customer
or business associate.
Networking – A process of finding
out about potential clients
from friends, business contacts,
coworkers, acquaintances,
and fellow members in
organizations.
Hany Sewilam @2017 - Sales Promotion

38. Qualifying Leads
38
Recognized needRecognized need
Buying powerBuying power
Receptivity and
accessibility
Receptivity and
accessibility
Hany Sewilam @2017 - Sales Promotion

39. The Preapproach Process
39
Product or serviceProduct or service
CustomersCustomers
CompetitionCompetition
IndustryIndustry
Salesperson
must know
everything
about...
Salesperson
must know
everything
about...
Online
http://www.hoovers.com
http://www.dnb.com
Hany Sewilam @2017 - Sales Promotion

40. Needs Assessment
40
A determination of the
customer’s specific needs and
wants and the range of
options a customer has for
satisfying them.
Hany Sewilam @2017 - Sales Promotion

41. Developing and Proposing Solutions
41
Sales ProposalSales Proposal
Sales PresentationSales Presentation
Hany Sewilam @2017 - Sales Promotion

42. Powerful Presentations
42
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!
Hany Sewilam @2017 - Sales Promotion

43. Handling Objections
43
 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
Hany Sewilam @2017 - Sales Promotion

44. Closing the Sale
44
NegotiateNegotiate
Keep an open mindKeep an open mind
Look for
customer signals
Look for
customer signals
Tailor to each marketTailor to each market
Hany Sewilam @2017 - Sales Promotion

45. Review Learning Outcome
Steps in the Selling Process
45
LO6
Hany Sewilam @2017 - Sales Promotion

46. Sales Management
46
Describe the functions
of sales management.
LO7
Hany Sewilam @2017 - Sales Promotion

47. Sales Management Responsibilities
47
Evaluate sales forceEvaluate 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
Hany Sewilam @2017 - Sales Promotion

48. Defining Sales Goals
48
ClearClear
PrecisePrecise
MeasurableMeasurable
Time SpecificTime Specific
Sales Volume
Market Share
Profit Level
Hany Sewilam @2017 - Sales Promotion

49. Quota
49
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.
Hany Sewilam @2017 - Sales Promotion

50. Sales Force Structure
50
Individual client
or account
Individual client
or account
Market or industryMarket or industry
Marketing functionMarketing function
Product lineProduct line
Geographic regionGeographic region
Hany Sewilam @2017 - Sales Promotion

51. Traits of Top Sales Performers
 Strong, healthy self esteem
 Can bounce back from rejection
 Sense of urgency and competitiveness
 Persuasive
 Assertive
 Sociable
 Willing to take risks
 Understand complex concepts
 Creative in developing solutions
 Possess empathy 51
Hany Sewilam @2017 - Sales Promotion

52. Training the Sales Force
52
Training
includes...
Training
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
Hany Sewilam @2017 - Sales Promotion

53. Compensating the Sales Force
53
CommissionCommission
SalarySalary
Combination
Plans
Combination
Plans
Hany Sewilam @2017 - Sales Promotion

54. Motivating the Sales Force
54
 Ceremonies
 Plaques
 Vacations
 Merchandise
 Pay raises
 Cash bonuses
 Stock options
 Tuition assistance
 Product discounts
Rewards and incentives include:
Hany Sewilam @2017 - Sales Promotion

55. Evaluating the Sales Force
55
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
Hany Sewilam @2017 - Sales Promotion

56. Review Learning Outcome
Functions of Sales Management
56
LO7
Hany Sewilam @2017 - Sales Promotion