Sales Promotion
Learning Resources
Advice for remembering people's names:
1. Concentrate when you are introduced to someone. Be sure you hear the name correctly. Ask them to repeat it or spell it if you are unsure.
2. Repeat the person's name 3 times in your head when you first hear it.
3. Use the person's name in the first few sentences of your conversation with them.
4. Make a mental association between the person and the name. Does the name remind you of someone famous or can you associate a behavior or characteristic with the name?
1. Concentrate when you are introduced to someone. Be sure you hear the name correctly. Ask them to repeat it or spell it if you are unsure.
2. Repeat the person's name 3 times in your head when you first hear it.
3. Use the person's name in the first few sentences of your conversation with them.
4. Make a mental association between the person and the name. Does the name remind you of someone famous or can you associate a behavior or characteristic with the name?
Name Game (use internet explorer)
1.SALES PROMOTION
a.Characteristics
i.Includes point-of-purchase displays, premiums, discounts, coupons, specialty advertising, & demonstrations
ii.Targeted towards final buyers (consumer promotions), retailers & wholesalers (trade promotions), business
customers (business promotions) and sales forces (sales force promotions)
iii.Attract customer attention
iv.Offers strong incentives to buy
v.Can boost sagging sales
vi.Invite quick response
vii.Often short lived
viii.Not very effective at building relationships or brand preferences
ix.Recent increases in use
1.due to advertising clutter, increased competition
2.resulted in promotion clutter
b.Sales promotion objectives
i.Consumer promotions
1.increase short term sales
2. build long-term market share
ii.trade promotions
1.encouraging retailers to carry new items or more inventory
2.encouraging retailers to use more advertising or increase shelf space
3.getting retailers to buy ahead
iii.sales force
1.new accounts or more support for existing or new products
c.Sales promotion tools
i.Consumer promotion tools
1.samples
a.most effective introduction of new product
b.most expensive introduction of new product
c.delivered door-to-door, sent by mail, handed out in a store, attached to another product, featured in an ad
2.coupons
a.stimulates sales of a mature brand
b.coupon clutter
c.new outlets for coupon distribution
i.supermarket shelf dispensers
ii.Internet
3.cash refunds
a.returning “proof of purchase” UPC
4.price packs
a.effective at stimulating short term sales
b.savings off regular price (marked on package)
c.include 2 for 1 deals or two related products packaged together
5.premiums
a.goods offered free or at reduced price as incentive to buy
b.may be “in-pack”, “on-pack”, or through mail
6.advertising specialties
a.include pens, calendars, key rings, matches, shopping bags, t-shirts,caps, nail files, coffee mugs
7.patronage rewards
a.frequent flyer plans, frequent shopper cards
8.point-of-purchase displays (POP) & demonstrations
9.contests, sweepstakes, & games
ii.Trade (B2B) promotion tools
1.price-offs
2.allowances
a.advertising allowance
b.display allowance
3.buy-back guarantees
4.free goods
a.extra cases of merchandise
b.push money
5.contests
6.premiums
7.displays
8.specialty advertising items
iii.business promotion tools
1.conventions and trade shows
2.sales contests
d.Developing sales promotion program
i.Size of incentive
ii.Conditions for participation
iii.How to promote and distribute the promotion
iv.Length of promotion
v.Evaluation
1.surveys
2.experiments
2.PUBLIC RELATIONS
a.Characteristics
i.functions
1.press releases
2.product publicity
3.public affairs
4.lobbying
5.investor relations
6.development
ii.Believable
iii.Can reach those who avoid ads/salespeople
iv.Lower cost than advertising
v.Can be spectacular
vi.Often underused
vii.Can be isolated from marketing department
b.Public relations tools
i.News
ii.Speeches
iii.Special events
1.news conferences
2.press tours
3.grand openings
4.educational programs
iv.written materials
1.annual reports
2.brochures
3.articles
4.newsletters
5.magazines
v.films
vi.video/audio DVDs
vii.web sites
3.PERSONAL SELLING
a.Characteristics
i.Includes sales presentations, trade shows, & incentive programs
ii.Effective at building up buyers’ preferences, convictions and actions
iii.Allows for quick adjustments to needs
iv.Builds relationships
v.Encourages a response from customers
vi.Costly
vii.Requires longer commitment
viii.Salesperson’s responsibilities
1.order taker
2.order getter
3.provide service to customers & sellers
4.negotiate prices & terms
5.provide customer service
6.carry out marketing research
7.learn about customer needs
b.Sales force management
i.structures
1.territorial sales force structure
a.clearly defines salesperson’s job and assigns accountability
2.product sales force structure
a.salespersons know the product
b.can be problematic for large buyers who want different products
3.customer sales force structure
a.by characteristic
i.servicing current or new customers
ii.servicing major or regular accounts
b.promotes customer relationships
4.complex sales force structures
a.combines several structures
b.good for company selling variety of products
ii.sales force size
1.workload approach
a.accounts grouped by size or importance
b.determine the number of salespeople required to service each account at a specified frequency
iii.outside or inside sales forces
1.inside support
a.technical support people
b.sales assistants
c.telemarketers
iv.team selling
1.services large, complex accounts
2.includes different specialists
3.can confuse or overwhelm customers
4.sales force can have trouble working with others
5.difficult to evaluate individual contributions
v.recruiting and selecting salespeople
1.successful characteristics
a.enthusiasm
b.persistence
c.initiative
d.self-confidence
e.job commitment
f.customer-orientation
g.independent
h.honest
i.hardworking
2.sources
a.current salespeople’s recommendations
b.employment agencies
c.classified ads
d.Internet
e.College students
f.Other companies
3. Sales compensation
a.Fixed salary
b.Variable salary
i.Commissions
ii.bonuses
c.Expenses
d.Fringe benefits
i.Paid vacations
ii.Sickness or accident benefits
iii.Pensions
iv.Life insurance
e.Mix
i.Straight salary
ii.Straight commission
iii.Salary plus bonus
iv.Salary plus commission
4.Supervising salespeople
a.Direct and motivate
b.Set time management priorities
i.Annual call plan
ii.Time and duty analysis
c. set sales quotas
d.create positive incentives: sales contests
5.evaluating salespeople
a.sales reports
b.expense reports
vi.Selling process
1.Prospecting and qualifying
2. pre-approach
3.approach
4.presentation & demonstration
a.need-satisfaction approach
5.handling objections
a.use positive approach
b.seek out hidden objections
c.ask for clarifications
d.provide more information
6.closing
7.follow-up
4.DIRECT MARKETING
a.Characteristics
i.Includes catalogs, telephone marketing, kiosks, the Internet
ii.Non-public
iii.Immediate & customized message
iv.interactive
v.databases used
vi.fastest growing form of marketing
vii.Some firms use direct marketing as their only approach to building relationships with customers
b.Benefits
i.For buyers
1.convenient
2.easy to use
3.private
4.provides wealth of information and variety
5.available at home or around the world
6.immediate & interactive
ii.for sellers
1.easier targeting
2.better timing of messages
3.access to buyers not reachable in other ways
4.low-cost
c.customer databases
i.uses
1.locating good potential customers
2.tailoring products and services to targeted customers
3.maintaining long-term customer relationships
ii.business database contents
1.products/services customer has bought in past
2.past volumes and prices
3.key contacts (ages, birthdays, hobbies, favorite foods)
4.competitive suppliers
5.estimated future spending
iii.consumer database contents
1.demographics (age, income, family members, birthdays, language spoken)
2.psychographics (activities, interests, opinions)
3.buying behavior (past purchases, buying preferences)
iv.often paired with customer mailing list
v.forms
1.online marketing
2.personal selling
3.telephone marketing
a.largest form of direct marketing
b.used for B2B as well as B2C
c.may be outbound or inbound (1-800 numbers, for example)
d.900 numbers used to sell info, entertainment
e.benefits
i.purchasing convenience
ii.increased product and service information
f.drawbacks
i.annoying
ii.“do not call list” limits customer base
4.direct-mail marketing
a.items
i.letters
ii.ads
iii.brochures
iv.samples
v.video/audio
vi.CDs/DVDs
vii. Fax mail
viii. E-mail
ix. Voice mail
b.Benefits
i.High target-market selectivity
ii.Personalized
iii.Flexible
iv.Easy measurement of results
5.catalog mail
a.offers incredible variety of goods
6.direct-response television marketing
a.direct-response adverting
i.60 to 120 second ad with toll-free number
ii.infomercials
b.home shopping channels
i.HSN
ii.QVC
7.Kiosk Marketing
a.Located in stores, airports, etc.
b.Used in B2B and B2C
8. Social Media Marketing
vi.Public policy/ethical decisions
1.excesses
2.selling under guise of research
3.fraud
4.invasion of privacy
5.Direct Marketing Association (DMA) sets guidelines for business behavior
a.Allow customers to “opt out”
b.Notify customers when personal information is exchanged with others
a.Characteristics
i.Includes point-of-purchase displays, premiums, discounts, coupons, specialty advertising, & demonstrations
ii.Targeted towards final buyers (consumer promotions), retailers & wholesalers (trade promotions), business
customers (business promotions) and sales forces (sales force promotions)
iii.Attract customer attention
iv.Offers strong incentives to buy
v.Can boost sagging sales
vi.Invite quick response
vii.Often short lived
viii.Not very effective at building relationships or brand preferences
ix.Recent increases in use
1.due to advertising clutter, increased competition
2.resulted in promotion clutter
b.Sales promotion objectives
i.Consumer promotions
1.increase short term sales
2. build long-term market share
ii.trade promotions
1.encouraging retailers to carry new items or more inventory
2.encouraging retailers to use more advertising or increase shelf space
3.getting retailers to buy ahead
iii.sales force
1.new accounts or more support for existing or new products
c.Sales promotion tools
i.Consumer promotion tools
1.samples
a.most effective introduction of new product
b.most expensive introduction of new product
c.delivered door-to-door, sent by mail, handed out in a store, attached to another product, featured in an ad
2.coupons
a.stimulates sales of a mature brand
b.coupon clutter
c.new outlets for coupon distribution
i.supermarket shelf dispensers
ii.Internet
3.cash refunds
a.returning “proof of purchase” UPC
4.price packs
a.effective at stimulating short term sales
b.savings off regular price (marked on package)
c.include 2 for 1 deals or two related products packaged together
5.premiums
a.goods offered free or at reduced price as incentive to buy
b.may be “in-pack”, “on-pack”, or through mail
6.advertising specialties
a.include pens, calendars, key rings, matches, shopping bags, t-shirts,caps, nail files, coffee mugs
7.patronage rewards
a.frequent flyer plans, frequent shopper cards
8.point-of-purchase displays (POP) & demonstrations
9.contests, sweepstakes, & games
ii.Trade (B2B) promotion tools
1.price-offs
2.allowances
a.advertising allowance
b.display allowance
3.buy-back guarantees
4.free goods
a.extra cases of merchandise
b.push money
5.contests
6.premiums
7.displays
8.specialty advertising items
iii.business promotion tools
1.conventions and trade shows
2.sales contests
d.Developing sales promotion program
i.Size of incentive
ii.Conditions for participation
iii.How to promote and distribute the promotion
iv.Length of promotion
v.Evaluation
1.surveys
2.experiments
2.PUBLIC RELATIONS
a.Characteristics
i.functions
1.press releases
2.product publicity
3.public affairs
4.lobbying
5.investor relations
6.development
ii.Believable
iii.Can reach those who avoid ads/salespeople
iv.Lower cost than advertising
v.Can be spectacular
vi.Often underused
vii.Can be isolated from marketing department
b.Public relations tools
i.News
ii.Speeches
iii.Special events
1.news conferences
2.press tours
3.grand openings
4.educational programs
iv.written materials
1.annual reports
2.brochures
3.articles
4.newsletters
5.magazines
v.films
vi.video/audio DVDs
vii.web sites
3.PERSONAL SELLING
a.Characteristics
i.Includes sales presentations, trade shows, & incentive programs
ii.Effective at building up buyers’ preferences, convictions and actions
iii.Allows for quick adjustments to needs
iv.Builds relationships
v.Encourages a response from customers
vi.Costly
vii.Requires longer commitment
viii.Salesperson’s responsibilities
1.order taker
2.order getter
3.provide service to customers & sellers
4.negotiate prices & terms
5.provide customer service
6.carry out marketing research
7.learn about customer needs
b.Sales force management
i.structures
1.territorial sales force structure
a.clearly defines salesperson’s job and assigns accountability
2.product sales force structure
a.salespersons know the product
b.can be problematic for large buyers who want different products
3.customer sales force structure
a.by characteristic
i.servicing current or new customers
ii.servicing major or regular accounts
b.promotes customer relationships
4.complex sales force structures
a.combines several structures
b.good for company selling variety of products
ii.sales force size
1.workload approach
a.accounts grouped by size or importance
b.determine the number of salespeople required to service each account at a specified frequency
iii.outside or inside sales forces
1.inside support
a.technical support people
b.sales assistants
c.telemarketers
iv.team selling
1.services large, complex accounts
2.includes different specialists
3.can confuse or overwhelm customers
4.sales force can have trouble working with others
5.difficult to evaluate individual contributions
v.recruiting and selecting salespeople
1.successful characteristics
a.enthusiasm
b.persistence
c.initiative
d.self-confidence
e.job commitment
f.customer-orientation
g.independent
h.honest
i.hardworking
2.sources
a.current salespeople’s recommendations
b.employment agencies
c.classified ads
d.Internet
e.College students
f.Other companies
3. Sales compensation
a.Fixed salary
b.Variable salary
i.Commissions
ii.bonuses
c.Expenses
d.Fringe benefits
i.Paid vacations
ii.Sickness or accident benefits
iii.Pensions
iv.Life insurance
e.Mix
i.Straight salary
ii.Straight commission
iii.Salary plus bonus
iv.Salary plus commission
4.Supervising salespeople
a.Direct and motivate
b.Set time management priorities
i.Annual call plan
ii.Time and duty analysis
c. set sales quotas
d.create positive incentives: sales contests
5.evaluating salespeople
a.sales reports
b.expense reports
vi.Selling process
1.Prospecting and qualifying
2. pre-approach
3.approach
4.presentation & demonstration
a.need-satisfaction approach
5.handling objections
a.use positive approach
b.seek out hidden objections
c.ask for clarifications
d.provide more information
6.closing
7.follow-up
4.DIRECT MARKETING
a.Characteristics
i.Includes catalogs, telephone marketing, kiosks, the Internet
ii.Non-public
iii.Immediate & customized message
iv.interactive
v.databases used
vi.fastest growing form of marketing
vii.Some firms use direct marketing as their only approach to building relationships with customers
b.Benefits
i.For buyers
1.convenient
2.easy to use
3.private
4.provides wealth of information and variety
5.available at home or around the world
6.immediate & interactive
ii.for sellers
1.easier targeting
2.better timing of messages
3.access to buyers not reachable in other ways
4.low-cost
c.customer databases
i.uses
1.locating good potential customers
2.tailoring products and services to targeted customers
3.maintaining long-term customer relationships
ii.business database contents
1.products/services customer has bought in past
2.past volumes and prices
3.key contacts (ages, birthdays, hobbies, favorite foods)
4.competitive suppliers
5.estimated future spending
iii.consumer database contents
1.demographics (age, income, family members, birthdays, language spoken)
2.psychographics (activities, interests, opinions)
3.buying behavior (past purchases, buying preferences)
iv.often paired with customer mailing list
v.forms
1.online marketing
2.personal selling
3.telephone marketing
a.largest form of direct marketing
b.used for B2B as well as B2C
c.may be outbound or inbound (1-800 numbers, for example)
d.900 numbers used to sell info, entertainment
e.benefits
i.purchasing convenience
ii.increased product and service information
f.drawbacks
i.annoying
ii.“do not call list” limits customer base
4.direct-mail marketing
a.items
i.letters
ii.ads
iii.brochures
iv.samples
v.video/audio
vi.CDs/DVDs
vii. Fax mail
viii. E-mail
ix. Voice mail
b.Benefits
i.High target-market selectivity
ii.Personalized
iii.Flexible
iv.Easy measurement of results
5.catalog mail
a.offers incredible variety of goods
6.direct-response television marketing
a.direct-response adverting
i.60 to 120 second ad with toll-free number
ii.infomercials
b.home shopping channels
i.HSN
ii.QVC
7.Kiosk Marketing
a.Located in stores, airports, etc.
b.Used in B2B and B2C
8. Social Media Marketing
vi.Public policy/ethical decisions
1.excesses
2.selling under guise of research
3.fraud
4.invasion of privacy
5.Direct Marketing Association (DMA) sets guidelines for business behavior
a.Allow customers to “opt out”
b.Notify customers when personal information is exchanged with others