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Principles of Marketing: An Asian Perspective

Principles of Marketing: An Asian Perspective Instructor Supplements • Created by Geoffrey da Silva

Instructor Supplements Created by Geoffrey da Silva

Personal Selling and Sales Promotion

16

Chapter 16 Outline

  • 16.1 Personal Selling

  • 16.2 Managing the Sales Force

  • 16.3 The Personal Selling Process

  • 16.4 Sales Promotion

Opening Case

Prudential Assurance Company Limited

Opening Case Prudential Assurance Company Limited With the corporate credo— “Always Listening, Always Understanding”— Prudential’s customer-focused

With the corporate credo— “Always Listening, Always Understanding”— Prudential’s customer-focused sales training has helped it to grow rapidly in a changing and competitive business environment.

16.1

Personal Selling

16.1

16.1 Personal Selling

Personal Selling, Sales Promotion

16.1 Personal Selling Personal Selling, Sales Promotion

16.1 Personal Selling

Personal Selling

The interpersonal part of the promotion mix

16.1 Personal Selling Personal Selling The interpersonal part of the promotion mix

16.1 Personal Selling

The Nature of Personal Selling

The term salesperson covers a wide range of positions.

At one extreme, a salesperson might be an order taker, such as the department store salesperson standing behind the counter.

At the other extreme are order getters, whose positions demand creative selling and relationship building for products and services ranging from appliances to industrial equipment

16.1 Personal Selling

Professional Selling

16.1 Personal Selling Professional Selling It takes more than fast talk and a warm smile to

It takes more than fast talk and a warm smile to sell high-tech diesel locomotives. GE’s real challenge is to win buyers’ business by building partnerships day-in, day- out, year-in, year-out, with its customers.

16.1 Personal Selling

Linking the Company with Its Customers

The sales force serves as a critical link between a company and its customers.

They represent the company to customers.

They represent customers to the company

16.1 Personal Selling

The linking role between customers and company

16.1 Personal Selling The linking role between customers and company The sales force serves as a

The sales force serves as a critical link between a company and its customers. They represent the company to customers, and vice versa.

16.1 Personal Selling

Coordinating Sales and Marketing

16.1 Personal Selling Coordinating Sales and Marketing

16.1 Personal Selling

Coordinating Sales and Marketing

A company can take several actions to help bring its marketing and sales functions closer together.

a)It can increase communications between the two groups by arranging joint meetings and by spelling out when and with whom each group should communicate. b)The company can create joint assignments. c)The company can create joint objectives and reward systems for sales and marketing.

16.1 Personal Selling

Coordinating Sales and Marketing

d)They can appoint marketing-sales liaisons—people from marketing who “live with the sales force” and help to coordinate marketing and sales force programs and efforts.

e)The firm can appoint a high-level marketing executive who oversees both marketing and sales.

16.1 Personal Selling

Reviewing the Key Concepts

Discuss the role of a company’s salespeople in creating value for customers and building customer relationships.

16.2

Managing the Sales Force

16.2

16.2 Managing the Sales Force

Sales Force Management

Sales force management is defined as the analysis, planning, implementation, and controlling of sales force activities.

16.2 Managing the Sales Force Sales Force Management Sales force management is defined as the analysis,

16.2 Managing the Sales Force

Design sales force strategy and structure

Recruiting Training Compensation plan Supervising Evaluating
Recruiting
Training
Compensation plan
Supervising
Evaluating

Sales Management

16.2 Managing the Sales Force

Designing Sales Force Strategy and Structure

The Sales Force Structure

A company can divide sales responsibilities along any of several lines:

  • 1. Territorial Sales Force Structure

  • 2. Product Sales Force Structure

  • 3. Customer Sales Force Structure

16.2 Managing the Sales Force

Sales Force Structure: Territorial

16.2 Managing the Sales Force Sales Force Structure: Territorial

16.2 Managing the Sales Force

Territorial Sales Force Structure

Each salesperson is assigned to an exclusive geographic area and

sells the company’s full line of products or services to all customers in that territory. Characteristics:

  • 1. The organization defines each salesperson’s job and fixes accountability.

  • 2. The organization increases the salesperson’s desire to build local customer relationships.

  • 3. Because each salesperson travels within a limited geographic area, travel expenses are relatively small.

16.2 Managing the Sales Force

Sales Force Structure: Product

16.2 Managing the Sales Force Sales Force Structure: Product

16.2 Managing the Sales Force

Product Sales Force Structure

The sales force sells along product lines.

This structure can lead to problems if a single large customer buys many different company products.

16.2 Managing the Sales Force

Customer Sales Force Structure

16.2 Managing the Sales Force Customer Sales Force Structure

16.2 Managing the Sales Force

Customer Sales Force Structure

The sales force is organized along customer or industry lines.

Separate sales forces may be set up for different industries, for serving current customers versus finding new ones, and for major accounts versus regular accounts.

16.2 Managing the Sales Force

Customer Sales Force Structure

16.2 Managing the Sales Force Customer Sales Force Structure IBM’s shift from a product-based structure to

IBM’s shift from a product-based structure to a customer-based one contributed to their dramatic turnaround in recent years.

16.2 Managing the Sales Force

16.2 Managing the Sales Force Sales Force Structure: Complex Complex Sales Force Structures: A company often

Sales Force Structure: Complex

16.2 Managing the Sales Force Sales Force Structure: Complex Complex Sales Force Structures: A company often

Complex Sales Force Structures: A company often combines several types of sales force structures when it sells a wide variety of products to many types of customers over a broad geographic area.

16.2 Managing the Sales Force

Complex Sales Force Structure

16.2 Managing the Sales Force Complex Sales Force Structure HP had so many layers of management

HP had so many layers of management that customers had to go through to get a question answered. Things changed only when the company’s newly appointed CEO, at that time, took over.

16.2 Managing the Sales Force

16.2 Managing the Sales Force
16.2 Managing the Sales Force

16.2 Managing the Sales Force

Sales Force Size

16.2 Managing the Sales Force Sales Force Size

16.2 Managing the Sales Force

Sales Force Size

Sales force size may range in size from only a few salespeople to tens of thousands.

Workload approach: A company first groups accounts into different classes according to size, account status, or other factors related to the amount of effort required to maintain them. It then determines the number of salespeople needed to call on each class of accounts the desired number of times.

16.2 Managing the Sales Force

Sales Force Structure

OUTSIDE

16.2 Managing the Sales Force Sales Force Structure OUTSIDE
16.2 Managing the Sales Force Sales Force Structure OUTSIDE

INSIDE

16.2 Managing the Sales Force

Outside and Inside Sales Forces

Outside salespeople travel to call on customers in the field.

Inside salespeople conduct business from their offices via telephone, the Internet, or visits from buyers.

16.2 Managing the Sales Force

Inside Sales Forces

Inside salespeople conduct business from their offices via telephone, the Internet, or visits from buyers. Technical sales support people provide technical information and answers to customers’ questions. Sales assistants provide administrative backup for outside salespeople. Telemarketers and Web sellers use the phone and Internet to find new leads and qualify prospects or to sell and service accounts directly.

16.2 Managing the Sales Force

Telemarketing

Telemarketers use the phone to find new leads and qualify prospects or to sell and service accounts directly.

16.2 Managing the Sales Force Telemarketing Telemarketers use the phone to find new leads and qualify

16.2 Managing the Sales Force

Team Selling

Most companies now use team selling to service large, complex accounts. Sales teams can unearth problems, solutions, and sales opportunities that no individual salesperson could.

Such teams might include experts from any area or level of the selling firm—sales, marketing, technical and support services, R&D, engineering, operations, finance, and others.

In team selling situations, the salesperson shifts from “soloist” to “orchestrator.”

16.2 Managing the Sales Force

Team Selling

16.2 Managing the Sales Force Team Selling A single salesperson can’t handle all of a large

A single salesperson can’t handle all of a large customer’s needs. Hence, companies now use team selling to service large, complex accounts.

16.2 Managing the Sales Force

Shortcomings of team selling:

Salespeople who are used to having customers all to themselves may have trouble learning to work with and trust others on a team.

Selling teams can confuse or overwhelm customers who are used to working with only one salesperson.

Difficulties in evaluating individual contributions to the team selling effort can create some sticky compensation issues.

16.2 Managing the Sales Force

Recruiting

16.2 Managing the Sales Force Recruiting

16.2 Managing the Sales Force

Recruiting Salespeople

In a typical sales force, the top 30 percent of the salespeople might bring in 60 percent of the sales. The best salespeople possess four key talents:

Intrinsic motivation Disciplined work style The ability to close a sale The ability to build relationships with customers When recruiting, companies should analyze the sales job itself and the characteristics of its most successful salespeople to identify the traits needed by a successful salesperson in their industry.

16.2 Managing the Sales Force

Selecting the right type of person for selling jobs

16.2 Managing the Sales Force Selecting the right type of person for selling jobs The best

The best salespeople possess intrinsic motivation, disciplined work style, the ability to close a sale, and perhaps most important, the ability to build relationships with customers.

16.2 Managing the Sales Force

Sources of new potential hires

The human resources department gets names from current salespeople, using employment agencies, placing classified ads, searching the Web, and working through college placement services.

Another source is to attract top salespeople from other companies

16.2 Managing the Sales Force

Training

16.2 Managing the Sales Force Training

16.2 Managing the Sales Force

Training Salespeople

Training programs have several goals. a)The training program must teach them about different types of customers and their needs, buying motives, and buying habits. b)It must teach them how to sell effectively and train them in the basics of the selling process. c)The training program teaches them about the company’s objectives, organization, and chief products and markets, and about the strategies of major competitors

16.2 Managing the Sales Force

Training Salespeople

16.2 Managing the Sales Force Training Salespeople Some companies provide continuing sales training via seminars, sales

Some companies provide continuing sales training via seminars, sales meetings, and the Web throughout the salesperson’s career.

16.2 Managing the Sales Force

Web-based training for salespeople

Many companies are adding e-learning to their sales training programs.

Most elearning is Web-based but many companies now offer on- demand training via smartphones and even iPod-type devices.

16.2 Managing the Sales Force

16.2 Managing the Sales Force Compensation • Straight salary • Straight Commission • Salary + Bonus

Compensation

Straight salary

Straight Commission

Salary + Bonus

Salary + commission

16.2 Managing the Sales Force

Sales force Compensation

Compensation is made up of several elements—a fixed amount, a variable amount, expenses, and fringe benefits.

Management must decide what mix of compensation elements makes the most sense for each sales job.

16.2 Managing the Sales Force

Sales force Compensation

Different combinations of fixed and variable compensation give rise to four basic types of compensation plans:

A.Straight salary B.Straight commission C.Salary plus bonus D.Salary plus commission

16.2 Managing the Sales Force

Sales force Compensation

The average salesperson’s pay consists of about 67 percent salary and 33 percent incentive pay.

Compensation should direct salespeople toward activities that are consistent with overall sales force and marketing objectives.

16.2 Managing the Sales Force

Link between marketing strategy and sales force compensation

16.2 Managing the Sales Force Link between marketing strategy and sales force compensation

16.2 Managing the Sales Force

Supervise, Motivate

16.2 Managing the Sales Force Supervise, Motivate

16.2 Managing the Sales Force

Supervising and Motivating Salespeople

Companies vary in how closely they supervise their salespeople.

The annual call plan shows which customers and prospects to call on and which activities to carry out.

The timeandduty analysis shows the time the salesperson spends selling, traveling, waiting, taking breaks, and doing administrative chores.

16.2 Managing the Sales Force

Supervising and Motivating Salespeople

16.2 Managing the Sales Force Supervising and Motivating Salespeople

16.2 Managing the Sales Force

Supervising and Motivating Salespeople

On average, active selling time accounts for only 10 percent of total working time!

Sales force automation systems: Computerized, digitized sales force operations that let salespeople work more effectively anytime, anywhere.

16.2 Managing the Sales Force

Sales force automation

16.2 Managing the Sales Force Sales force automation Many sales forces have gone high tech, equipping

Many sales forces have gone high tech, equipping salespeople with everything from smartphones, wireless Web connections, and videoconferencing to customer-contact and relationship management software that helps them to be more effective and efficient.

16.2 Managing the Sales Force

Internet and selling

16.2 Managing the Sales Force Internet and selling

16.2 Managing the Sales Force

Selling and the Internet

Perhaps the fastest-growing technology tool is the Internet.

Sales organizations around the world are now using the Internet to support their personal selling efforts—not just for selling but also for everything from training salespeople to conducting sales meetings and servicing accounts.

16.2 Managing the Sales Force

16.2 Managing the Sales Force
16.2 Managing the Sales Force

16.2 Managing the Sales Force

Internet and selling

16.2 Managing the Sales Force Internet and selling Machinery manufacturer Makino makes extensive use of online

Machinery manufacturer Makino makes extensive use of online social networking— everything from proprietary online communities and webinars to Twitter, Facebook, and YouTube.

16.2 Managing the Sales Force

Motivating Salespeople

Salespeople often need special encouragement to do their best.

Organizational climate describes the feeling that salespeople have about their opportunities, value, and rewards for a good performance.

Sales Quotas are standards stating the amount they should sell and how sales should be divided among the company’s products.

Compensation is often related to how well salespeople meet their quotas.

16.2 Managing the Sales Force

Positive Incentives

Companies use various positive incentives to increase sales force effort:

Sales meetings provide social occasions, breaks from routine, chances to meet and talk with “company brass,” and opportunities to air feelings and to identify with a larger group. Companies also sponsor sales contests to spur the sales force to make a selling effort above what would normally be expected.

Other incentives include honors, merchandise and cash awards, trips, and profitsharing plans.

16.2 Managing the Sales Force

Evaluation

16.2 Managing the Sales Force Evaluation

16.2 Managing the Sales Force

Evaluating Salespeople and Sales Force Performance

Management sources of salesperson information:

Sales reports Call reports Expense reports Formal evaluation forces management to develop and communicate clear standards for judging performance and provides salespeople with constructive feedback and motivates them to perform well. As with other marketing activities, the company wants to measure its return on sales investment

16.2 Managing the Sales Force

Reviewing the Key Concepts

Identify and explain the six major sales force management steps.

16.2 Managing the Sales Force

PROSPECT/ FOLLOWUP QUALIFY PRE- The Selling Process HANDLE APPROACH SALES PRESENTATION
PROSPECT/
FOLLOWUP
QUALIFY
PRE-
The
Selling
Process
HANDLE
APPROACH
SALES
PRESENTATION

CLOSE THE SALE

APPROACH

OBJECTIONS

16.3

The Personal Selling Process

16.3

16.3 The Personal Selling Process

Steps in the Selling Process

  • a) The selling process consists of seven steps:

  • b) Prospecting and qualifying

  • c) Pre-approaching

  • d) Approaching

  • e) Presentation and demonstrating

  • f) Handling objections

  • g) Closing

  • h) Following up

16.3 The Personal Selling Process

Major steps in effective selling

16.3 The Personal Selling Process Major steps in effective selling

16.3 The Personal Selling Process

Prospect/Qualify

16.3 The Personal Selling Process Prospect /Qualify

16.3 The Personal Selling Process

Prospecting

Prospecting is identifying qualified potential customers. The best source of prospects is referrals. Sources of referrals:

Current customers Suppliers and dealers Noncompeting sales-people The Web or other social networks Dropping in unannounced on various offices (a practice known as cold calling)

16.3 The Personal Selling Process

Qualifying

Qualifying a lead is knowing how to identify the good ones and screen out the poor ones.

Prospects can be qualified by:

Their financial ability Volume of business Special needs Location Possibilities for growth

16.3 The Personal Selling Process

Preapproach

16.3 The Personal Selling Process Preapproach

16.3 The Personal Selling Process

Preapproaching

Preapproaching is the stage in which the salesperson learns as much as possible about the organization (what it needs, who is involved in the buying) and its buyers (their characteristics and buying styles). Call objectives is the task of qualifying the prospect, gathering information, or making an immediate sale. Other call objectives include deciding on the best approach, the best timing, and a determination of the overall sales strategy for the account.

16.3 The Personal Selling Process

Approach

During the approaching step, the salesperson should know how to meet and greet the buyer and get the relationship off to a good start

16.3 The Personal Selling Process Approach During the approaching step, the salesperson should know how to

16.3 The Personal Selling Process

Presentation

16.3 The Personal Selling Process Presentation

16.3 The Personal Selling Process

Presenting and Demonstrating

When presenting, the salesperson tells the “value story” to the buyer, showing how the company’s offer solves the customer’s problems.

The customer-solution approach fits better with a relationship marketing focus.

But before salespeople can present customer solutions, they must develop solutions to present.

16.3 The Personal Selling Process

Dislikes and likes of presentations:

16.3 The Personal Selling Process Dislikes and likes of presentations: Today’s advanced presentation technologies allow for

Today’s advanced presentation technologies allow for full multimedia presentations to only one or a few people. Online presentation technologies and handheld and laptop computers with presentation software have replaced the old flip chart.

16.3 The Personal Selling Process

Using technology for presentations

The qualities that buyers dislike most in salespeople include being:

Pushy Late Deceitful Unprepared or disorganized Overly talkative

16.3 The Personal Selling Process

Using technology for presentations

The qualities that buyers value most in salespeople include:

Good listening Empathy Honesty Dependability Thoroughness Follow-through

16.3 The Personal Selling Process

Handling objections

16.3 The Personal Selling Process Handling objections

16.3 The Personal Selling Process

Handling objections

In handling objections, the salesperson should:

Use a positive approach Seek out hidden objections Ask the buyer to clarify any objections Take objections as opportunities Turn the objections into reasons for buying

Every salesperson needs training in the skills of handling objections.

16.3 The Personal Selling Process

Close the sale

Salespeople should be confident about closing the order, and follow up with the customer to ensure customer satisfaction and repeat business.

Salespeople can use one of several closing techniques:

  • 1. Ask for the order

  • 2. Review points of agreement

  • 3. Offer to help write up the order

  • 4. Ask whether the buyer wants this model or that one

  • 5. Note that the buyer will lose out if the order is not placed now.

16.3 The Personal Selling Process

Follow-up

Follow-up is necessary if the salesperson wants to ensure customer satisfaction and repeat business.

16.3 The Personal Selling Process Follow-up Follow-up is necessary if the salesperson wants to ensure customer

16.3 The Personal Selling Process

Personal Selling and Managing Customer Relationships

16.3 The Personal Selling Process Personal Selling and Managing Customer Relationships

16.3 The Personal Selling Process

Transaction versus Relationship Orientations in Selling

Transaction orientation: The purpose is to help salespeople close a specific sale with a customer.

Relationship orientation: The purpose is to serve the customer over the long haul in a mutually profitable relationship.

Today’s large customers favor suppliers who can sell and deliver a coordinated set of products and services to many locations, and who can work closely with customer teams to improve products and processes.

16.3 The Personal Selling Process

Reviewing the Key Concepts

Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing.

16.4

Sales Promotion

16.4

16.4 Sales Promotion

Short-term incentives to encourage purchases or sales of a product or service.

16.4 Sales Promotion

Sales Promotions

16.4 Sales Promotion Sales Promotions Short-term incentives such as discount coupons encourage the purchase or sale

Short-term incentives such as discount coupons encourage the purchase or sale of a product or service. Basically, it offers reasons to buy now.

16.4 Sales Promotion

Sales Promotions

Sales promotion tools are targeted toward final buyers (consumer promotions), retailers and wholesalers (trade promotions), business customers (business promotions), and members of the sales force (sales force promotions).

Today, in the average consumer packaged-goods company, sales promotion accounts for 74 percent of all marketing expenditures.

16.4 Sales Promotion

Factors leading to growth in sales promotions

Several factors have contributed to the rapid growth of sales promotion:

  • 1. Product managers face greater pressures to increase their current sales.

  • 2. The company faces more competition and competing brands are less differentiated.

  • 3. Advertising efficiency has declined.

  • 4. Consumers have become more deal oriented.

16.4 Sales Promotion

Sales promotion clutter

16.4 Sales Promotion Sales promotion clutter Consumers are increasingly tuning out advertisement and promotions, weakening their

Consumers are increasingly tuning out advertisement and promotions, weakening their ability to trigger immediate purchase. Manufacturers now have to search for ways to rise above the clutter.

16.4 Sales Promotion

Sales promotions objectives:

Sales promotion objectives vary widely.

  • 1. Consumer promotions: Urge short-term customer buying or to enhance customer brand involvement.

  • 2. Trade promotions: Get retailers to carry new items and more inventory, buy ahead, or promote the company’s products and give them more shelf space.

  • 3. Sales force: Get more sales force support for current or new products or getting salespeople to sign up new accounts.

Sales promotions should help to reinforce the product’s position and build long-term customer relationships.

16.4 Sales Promotion

Sales Promotion aimed at Consumers

16.4 Sales Promotion Sales Promotion aimed at Consumers The consumer promotions include a wide range of

The consumer promotions include a wide range of tools.

16.4 Sales Promotion

Sales Promotion aimed at Consumers

Coupons, price deals Samples Patronage rewards POP displays Contests, games Demonstrations Advertising Premiums specialties
Coupons, price deals
Samples
Patronage rewards
POP displays
Contests, games
Demonstrations
Advertising
Premiums
specialties

16.4 Sales Promotion

Consumer Promotions:

Samples are offers of a trial amount of a product. Sampling is the most effective—but most expensive—way to introduce a new product or to create new excitement for an existing one. Coupons are certificates that give buyers a savings when they purchase specified products. Most major consumer goods companies are issuing fewer coupons and targeting them more carefully. Cash refunds (or rebates) are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet.

16.4 Sales Promotion

Sampling

16.4 Sales Promotion Sampling Sampling is the most effective—but most expensive—way to introduce a new product

Sampling is the most effective—but most expensive—way to introduce a new product or to create new excitement for an existing one.

16.4 Sales Promotion

Sampling

With the increase in the number of smartphone users, mobile phone coupons are gaining popularity.

16.4 Sales Promotion Sampling With the increase in the number of smartphone users, mobile phone coupons

16.4 Sales Promotion

Consumer Promotions

Price packs (also called cents-off deals) offer consumers savings off the regular price of a product. Premiums are goods offered either free or at low cost as an incentive to buy a product. Advertising specialties, also called promotional products, are useful articles imprinted with an advertiser’s name, logo, or message that are given as gifts to consumers. Point-of-purchase (POP) promotions include displays and demonstrations that take place at the point of sale.

16.4 Sales Promotion

Advertising Specialties

16.4 Sales Promotion Advertising Specialties Advertising specialties, also called promotional products, are useful articles imprinted with

Advertising specialties, also called promotional products, are useful articles imprinted with an advertiser’s name, logo, or message that are given as gifts to consumers. They typically include items such as bumper stickers, stationary, mugs, keychains, and T-shirts.

16.4 Sales Promotion

Consumer Promotions

Contests, sweepstakes, and games give con sumers the chance to win something.

  • 1. A contest calls for consumers to submit an entry to be judged.

  • 2. A sweepstakes calls for consumers to submit their names for a drawing.

  • 3. A game presents consumers with something every time they buy.

16.4 Sales Promotion

16.4 Sales Promotion
16.4 Sales Promotion

16.4 Sales Promotion

Event Marketing

Event marketing (or event sponsorships) allows companies to create their own brand marketing events or serve as sole or participating sponsors of events created by others. The events might include anything from mobile brand tours to festivals, reunions, marathons, concerts, or other sponsored gatherings. Event marketing is huge, and it may be the fastest growing area of promotion, especially in tough economic times. Event marketing can provide a less costly alternative to expensive TV commercials.

16.4 Sales Promotion

Event Sponsorships

16.4 Sales Promotion Event Sponsorships For the past few years, P&G has sponsored a holiday event

For the past few years, P&G has sponsored a holiday event promotion for its Charmin brand in New York’s Times Square, where it can be very difficult to find a public restroom. P&G sets up 20 free, sparkling clean Charmin-themed mini-bathrooms, each with its own sink and a bountiful supply of Charmin. The event is the ultimate in experiential marketing—touching people in places advertising wouldn’t dare go. Over the past three holiday seasons, the event has been flush with success. More than 1 million people have gratefully used the facilities.

16.4 Sales Promotion

Sales Promotion aimed at Trade

16.4 Sales Promotion Sales Promotion aimed at Trade

16.4 Sales Promotion

Trade Promotions

Trade promotions persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers. Manufacturers use several trade promotion tools:

  • 1. A straight discount (also called a price-off, off-invoice, or off-list)

  • 2. An allowance (usually so much off per case)

  • 3. Free goods

  • 4. Push money

  • 5. Free specialty advertising items

Sales contests: Contests for salespeople or dealers to motivate them to increase their sales performance over a given period.

16.4 Sales Promotion

Sales Promotion aimed at Trade

Allowance Discount Free goods Specialty advertising
Allowance
Discount
Free goods
Specialty advertising

16.4 Sales Promotion

Business Promotions

16.4 Sales Promotion Business Promotions Business promotions are used to generate business leads, stimulate purchases, reward

Business promotions

are used to generate

business leads, stimulate purchases, reward customers, and motivate salespeople.

Some trade shows are huge. At the 2010 International Consumer Electronics Show, 3,000 exhibitors attracted more than 112,000 professional visitors.

16.4 Sales Promotion

Benefits of Conventions and Trades Shows to the Vendors:

Opportunities to find new sales leads Contact customers Introduce new products Meet new customers Sell more to present customers Educate customers with publications and audio visual materials Reach many prospects not reached through their sales forces

16.4 Sales Promotion

Developing The Sales Promotions

Marketers must decide:

  • 1. Size of the incentive

  • 2. Conditions for participation

  • 3. Promotion and distribution

  • 4. Length of the promotion

  • 5. Evaluation

16.4 Sales Promotion

16.4 Sales Promotion
16.4 Sales Promotion

16.4 Sales Promotion

Company Case

Procter & Gamble:

Coming Face to Face with Customers

16.4 Sales Promotion Company Case Procter & Gamble : Coming Face to Face with Customers

Thank

you