Sales Promotion and Personal Selling

Define sales promotion and its purposes Trade promotions vs. consumer sales promotions

Identify types of trade promotions and consumer sales promotions

Define personal selling and its purposes Distinguish between order-takers and order-getters

Lesson Objectives

SALES PROMOTIONstrategies used to stimulate the customer to take action

stimulate purchasesinform customers about products

create a positive business image

increase business traffic.

Sales Promotion uses marketing devices to:

TRADE PROMOTIONSSales promotion activities designed to gain support for a product from:

• manufacturers

• wholesalers

• retailers

Slotting allowance – cash premium paid to retailer by manufacturer for cost of putting product on shelf

Buying allowance – similar to quantity discount – encourages the purchase of more

Trade shows and conventions Sales incentives – awards given for

meeting quotas for certain products or product lines

Types of Trade Promotions

Consumer Sales Promotions

Efforts designed to increase store traffic and to encourage product sales

Red tag sale

30% off

Premiums: prizes or rewards for purchase◦ Coupons (most popular)◦ Factory packs: gifts in packages◦ Trading stamps◦ Rebates (with proof of purchase)

Contests (games of skill) Sweepstakes (games of chance) Product samples (no purchase necessary)

mail, door-to-door, stores, trade shows

Consumer Sales Promotions

Licensing – Organizations allow their logo, trademark, etc. to be used to promote another product

Promotional tie-ins – Arrangements between retailers and mfrs to promote products

Other Consumer Sales Promotions

PERSONAL SELLING

Communicating with customers directly by making oral sales presentations.

Completing the sale

Personal Selling is...

Order-taking personnel◦Cashiers◦Counter clerks◦Sales associates

Order-getting personnel◦Professional sales◦Industrial sales◦Extensive training involved◦Higher-priced items

Types of Personal Selling

What is the purpose of sales promotion? How do trade promotions differ from

consumer sales promotions? Give some examples of consumer sales

promotions. What are the 2 types of personal selling? How do they differ?

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