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18 Personal Selling/Sales Promotions Slide 2 Personal Selling interpersonal promotional process involving a sellers person-to-person presentation to a prospective buyer. Slide 3 Characteristics of Personal Selling Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Personal Selling Direct and face-to-face High Much Immediate Two-way Yes Slow Tailored to prospect Slide 4 Importance: almost every company can benefit from personal selling 10% of workforce (how many have? How many would like to?) Often largest operating expense (up or out; car dealers) Customer contact (info & customer impressions) Intro to Personal Selling Slide 5 Sales management: decisions Sales force # (of salespeople; big issues with commissions, customers and turnover) Compensation Straight salary: most security, control, and simplicity Straight commission (most incentive) oDirect: Salary Indirect: part of firm earnings Compensation Align incentive with firm interest (Sears) Combination: most popular (some security and incentives Supervision/Training Slide 6 Who to serve? Sales territory: geographic area; clear responsibility (overlap; lead in another) Major accounts: special treatment for large (fleet sales for cars) Slide 7 Selling techiques Selling techniques Customers (80-20 rule) 3 sales presentations Prepared: more talk, canned leads to trial close, low skill (telemarketing) Consultative: listen, less talk, help solve problems, customers differ, high skill Selling formula: start prepared then steps outlined Slide 8 Job of Personal Selling (1) Duties: Order getting: without order getters, many of the products we now rely on ranging from mutual funds to air conditioners might have died in the market introduction stage Seek new clientele with sales presentation Prospecting: follow all leads (allocate time on potential) insurance, graduate Slide 9 Job of Personal Selling (2) Duties (cont) Order taking Serve current customers and complete routine sales Regular route and customers Low aggression and pressure: pejorative Slide 10 Job of Personal Selling (3) Duties (cont) Supporting salespeople: no selling, help order getters & order takers Missionary: entry level Goodwill, stimulate demand for products Tasks: training, coop ads, sales promotion (increase sales 2-3x); drugs Technical specialists: often after o.g. & o.t. visit Scientists and engineers Provide details on complex processes (installation, maintenance etc.) May mix three jobs (retraining people) Slide 11 Sales Promotion Consumer Sales Promotion Trade Sales Promotion Trade Sales Promotion Targets Targets Slide 12 Tools for Consumer Sales Promotion Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion Popular Tools for Consumer Sales Promotion Popular Tools for Consumer Sales Promotion Slide 13 Sales Promotion Methods for Consumers Coupons Discounts on the purchase price of a good or service Slide 14 Sales Promotion Methods for Consumers Premiums Items given free or at a reduced cost Slide 15 Sales Promotion Methods for Consumers Loyalty Programs Reward regular customers Slide 16 Contests During the annual search, which includes both the U.S. and Canada, the grandchildren, children, spouses and friends of outstanding grandmas are invited to write in and tell us, in 100 words or less, why their grandmas are the greatest. Slide 17 Sweepstakes Consumer Sweepstakes - Chance Universal Studios Hollywood Terminator 2:3D Sweepstakes OFFICIAL GIVEAWAY RULES; NO PURCHASE NECESSARY ENTRY: To enter the Universal Studios Hollywood Terminator 2:3D Sweepstakes, register your name and information (no password required). Completed entries must be received by 11:59pm PST on June 1, 2006 to be eligible for the Grand Prize. Slide 18 Sales Promotion Methods for Consumers Sampling In store, mail, door-to-door Higher response rates than coupons http://www.thefreesite.com/freesamples.htm Slide 19 Sales Promotion Methods for Consumers Point-of-Purchase Displays Signs, Window displays, Counter pieces, Display racks to attract customers 70% purchase decisions in-store Slide 20 The Role of Trade Sales Promotion Improve trade relations Gain new distributors Build or reduce dealer inventories Slide 21 Tools for Trade Sales Promotion Trade Allowances Push Money Unique Tools for Trade Sales Promotion Unique Tools for Trade Sales Promotion