Marketing 2205 Chapter 13: Personal Selling & Sales Promotion

Personal Selling

• Personal presentations by a sales force to engage customers, make sales, & build customer relationships

 

• Salesperson: Represents a company to customers by:

  • Prospecting & communicating

  • Selling & servicing

  • Gathering information & building relationships

 

• Sales force – collection of salespeople linking the company with its customers & coordinates the marketing & sales functions

Steps in the Selling Process

Figure 13.2

The Personal Selling Process

• Value selling—demonstrating & delivering superior customer value to capture a return on that value that is fair for both the customer & the company

 

• Value selling requires:

  • Listening to customers

  • Understanding customers’ needs

  • Coordinating the company’s efforts to create lasting relationships based on customer value

Sales Promotion

• Short-term incentives to encourage the purchase or sale of a product or a service

 

• Sales promotion targets

  • Final buyers—Consumer promotions

  • Retailers & wholesalers—Trade promotions

  • Business customers—Business promotions

  • Members of the sales force—Sales force promotions

• Many factors have contributed to the rapid growth of sales promotion.

  • Product managers view promotion as an effective short-run sales tool.

  • Competitors use sales promotion to differentiate their offers.

  • Advertising efficiency has declined.

  • Sales promotions help attract today’s more thrift-oriented consumers.

Sales Promotion Objectives

• Consumer promotions: To urge short-term customer buying or boost customer-brand engagement

 

• Trade promotions: To get retailers to carry new items & more inventory, buy ahead, or promote the company’s products & give them more shelf space

 

• Business promotions: To generate business leads, stimulate purchases, reward customers, & motivate salespeople

Consumer Promotion Tools

Table

Event Marketing

#HappiMess campaign, Delta Faucet shows target consumers firsthand how well its low-flow showerheads worked under really tough conditions.

Trade Promotions

• Used to persuade resellers to carry a brand, give it shelf space, & promote it in ads.

 

• Trade promotion tools:

  • Contests, premiums, and displays

  • Discounts and allowances

  • Free goods

  • Push money

  • Specialty advertising items

Business Promotions

• Used to generate business leads, stimulate purchases, reward customers, & motivate salespeople

 

• Business promotion tools:

  • Conventions & trade shows

  • Sales contests

Developing the Sales Promotion Program

• Sales promotion program design decisions:

  • Determine the size of the incentive

  • Set conditions for participation

  • Determine how to promote & distribute the promotion program

  • Set the length of the promotion

  • Evaluate the promotion