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    Personal Selling and Sales Promotion

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    Personal Selling and Sales Promotion

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    Akshat Verma
    3 views29 pages
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    3 views29 pages

    Personal Selling and Sales Promotion

    Uploaded by

    Akshat Verma
    bba

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 29

    PERSONAL SELLING AND

    SALES PROMOTION
    PERSONAL SELLING
    The PERSONAL
    presentation of a product
    or company to one or more
    potential buyers

    2
    PERSONAL SELLING- NATURE
    Face to face Interaction between the buyer
    and the seller.
    Flexibility in approach as per situation’s
    demand.
    Persuading the customer to buy the product.
    Promoting the sale of product & ensuring
    future’s usage.
    OBJECTIVES
    QUANTITATIVE OBJECTIVES:
    a. Achieving a particular sales volume.
    b. Maintain or increasing the market share.
    QUALITATIVE OBJECTIVES:
    c. Building Product Awareness
    d. Creating interest
    e. Providing information
    f. Stimulating demand
    g. Relationship building
    ADVERTISING VERSUS PERSONAL SELLING

    Personal Selling is more important if...

    The product has a high value.


    It is a custom-made product.
    There are few customers.
    The product is technically complex.
    Customers are geographically concentrated.

    Advertising/Sales Promotion is more important if...

    The product has a low value.


    It is a standardized product.
    There are many customers.
    The product is simple to understand.
    Customers are geographically dispersed.

    6
    ADVANTAGES DISADVANTAGES

    •High customer attention. High cost


    • Message is customized. Labor intensive
    • Interactivity . Expensive
    •Persuasive impact Can only reach a limited number of
    • Potential for development of customers
    relationship.
    •Adaptable .
    •Opportunity to close the sale
    1.) PROSPECTING :

    2.) THE PRE-APPROACH : This stage involves the


    collecting of as much relevant information as
    possible prior to the sales presentation. The
    pre-approach investigation is carried out on
    new customers but also on regular customers.
    CALL PLANNING
    • Specifying the objectives
    • Why am I going on this interview?
    What am I trying to make happen?
    If the prospect says “yes, I want to buy,” what am I
    going to recommend?
    Cont…
    3. The Approach : The salesperson should always
    focus on the benefits for the customer. This is done
    by using the product's features and advantages. This
    is known as the FAB technique (Features,
    Advantages and Benefits).

    4.) The Sales Presentation :


    5.) Handling Objections:
    A. Try to anticipate the objections before they arise.
    B. Apologize for not
    explaining fully if salesperson
    Don’t know the answer or
    Solution to the problem or
    Cant satisfy the client.
    Confirm the client that
    objection has overcome
    76.) CLOSING THE SALES

    7) THE FOLLOW-UP
    No matter what we sell, what matter is how we sell
    He should be convincing
    Salesmen should be and have a strategy to
    master of all trade support his selling
    approach
    On what grounds
    customer would say
    “NO” to my
    product??????????

    • It’s good to be pessimistic

    • But sometimes being pessimistic serves


    the purpose
    Sales Promotion

    Sales promotion is any form of promoting sales where


    there is a call to action that results in a demonstrable
    benefit, whether tangible or not’
    (Mullin and Cummins, 2008)

    ADVERTISING OFFERS A REASON TO BUY WHEREAS SALES


    PROMOTION OFFERS AN INCENTIVE TO BUY.

    17
    SALES PROMOTION

    2 for 1 Sale
    $2 off
    Buy One, after 8PM
    Get One on Tuesday
    Free

    A variety of short-term incentives to encourage trial or purchase of a product or


    service to stimulate purchases and increase store traffic
    Why Sales Promotion?
    • Products have become more standardized
    • Consumer acceptance
    • Advertising has become more expensive & less effective
    • Immediate response
    • Customers are more price sensitive
    • Increasing Competition
    • Creates immediate positive impact on sales
    • Introduces an element of interest
    • Impulse buying is increasing
    • Excess stocks
    • Clutter
    Objectives
    • To attract the customers
    • To increase sales
    • Creating interest
    • To encourage buyers to buy in great quantity
    • To clear the inventory
    • To introduce new products or services
    • To increase sales in off- seasons

    20
    Tools of Sales Promotion

    • Consumer sales promotion tools


    • Trade sales promotion tools

    21
    CONSUMER SALES PROMOTION :
    1. Samples
    2. Price deals:
    a. Discounts
    b. Cash refund offers or rebate
    c. Coupons
    d. Bonus/ banded pack
    3. Premiums/ gifts
    e. In or on package premium
    f. Free-in-the mail premium
    a. Self liquidation premium
    b. Store or manufacturer premium
    4. contests/ sweepstakes
    5. Patronage awards/ loyalty awards
    6. Event sponsorship
    7. trade- in
    TRADE SALES PROMOTION – wholesalers,
    retailers
    1. Point of purchase display
    2. Trade shows
    3. Trade allowance
    a. Buying allowance (forward buying- side effect of
    buying allowance)
    b. Slotting allowances
    c. Drop ship allowance
    d. Promotional allowances
    e. Exit fees
    4. Cooperative advertising
    5. Push money
    6. Promotional products
    7. Deal loaders
    Advertisement vs sales promotion
    ADVERTISING SALES PROMOTION
    Offers a reason to buy via using a variety of Offers incentive to the consumers to buy
    persuasive appeals

    Appeals are emotional or functional in nature Appeals are rational in nature

    Done for long term Time frame is short term


    Primary objective is to create an enduring Primary objective is to get sales quickly or to
    brand image induce trial

    Indirect & subtle approach Direct approach to induce customer to buy by


    changing existing price value relationship.
    Limitations of Sales Promotion

    • Short-term perspectives
    • Impacts brand loyalty
    • Increases price sensitivity
    • Shoddy products are Passed-Off
    • Quality image may become tarnished
    • Non-recurring in its use
    • Too many affects brand image
    • Low status by ad agencies
    • Reflection of Crisis

    27
    To conclude……
    • Sales promotions provide a short term incentive to purchase NOW.
    – Trade promotions can get dealer support for both new and
    established brands
    – Consumer promotions can increase trial and/or repurchase
    and can be used either offensively or defensively.
    • Profitability depends on deal responsiveness
    • Overuse or inappropriate use of sales promotions may harm brand
    equity
    • Don’t fall into the sales promotion trap!
    “It is said that selling makes the world go
    around. For it is somebody who sold something
    to someone else, who in turn sold it to us”

    Thank you !

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