Sales promotion and personal selling

This Module cover Purpose of Sales Promotion, Sales Promotion Techniques, Personal selling, definition and features, Objective of personal selling, Features of salesmanship, AIDAS Formula, Qualities of good Salesman.

1. Module III Sales Promotion Prepared By Jitendra Patel Assistant Professor Prestige Institute of Management and Research, Indore

2. Content Definition of Sales Promotion Purpose of Sales Promotion Sales Promotion Techniques Personal selling definition and features of Personal Selling. Objective of personal selling Process of Personal Selling Features of salesmanship AIDAS Formula Qualities of good Salesman 28/02/2020 2 Jitendra Patel, Assistant Professor, PIMR

3. Sales Promotion Sales promotion  is any type of promotional incentive used to encourage immediate sales.   Sales promotions are the set of marketing activities undertaken to boost sales of the product or service.  Those promotional activities (other than advertising, personal selling, public relations and publicity) that are intended to stimulate customer demand and improve the marketing performance of sellers 28/02/2020 3 Jitendra Patel, Assistant Professor, PIMR

4. Sales Promotion Sales promotion is generally defined as those marketing activities that provide extra values or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales. 28/02/2020 4 Jitendra Patel, Assistant Professor, PIMR

5. Purpose of Sales Promotion (Objectives) To introduce new products or services To attract new customers To induce existing customers to buy more Helps the firm to remain competitive To increase sales in off-seasons To add to the stock of the dealers 28/02/2020 5 Jitendra Patel, Assistant Professor, PIMR

6. Best Indian Sales Promotions CELLO:  This Indian company that makes insulated products for daily use like lunch boxes and water bottles did a very unique sales promotion campaign. The campaign requested the customers to register with the company. All the registered participants were told that they might be receiving a call from the marketing department of CELLO. The catch was that when the representative from the Cello company calls the customers has to say CELLO instead of HELLO. This led to rousingly funny situations where many people in Hyderabad were lifting their phone and saying CELLO instead of HELLO much to the bemusement of the regular callers. But the point was well made by CELLO and it gave all the registered customers a discount. A definite win-win and an example of what can happen if people think with clarity of purpose. 28/02/2020 6 Jitendra Patel, Assistant Professor, PIMR

7. Point Detergent Powder:   An Indian company that sadly no longer exists.   Point was very famous with all youngsters in the seventies. Point detergent powder package carried board games, puzzles and other things (pictures of birds and animals) that kids loved to cut and keep. One cut out that I kept for a long time was the cut out of the cricket pitch with all the positions marked. Point gave us 11 small fielders to place and change according to their field positions. In the era of radio commentary it was a brilliant tool of making the listeners understand and enjoy the game of cricket. 28/02/2020 7 Jitendra Patel, Assistant Professor, PIMR

8. Cadbury’s Gems cricket game Cadbury’s Gems cricket game:  In a country like India that is mad about cricket it is but natural that the next sales promotion tool also gets linked with the game of cricket. Cadbury’s gems came out with an idea of supplying the customer with a pop up bottle full of gems. The bottle can be used to play very innovative gamed of Indoor cricket. For cricket mad Indians who can play cricket even with a printed book (it is very essential that the book should have page numbers!) the ploy was a huge success. 28/02/2020 8 Jitendra Patel, Assistant Professor, PIMR

9. Kinetic Honda Indians did not take very kindly to the concept of Auto start, gear less scooters. In their view the only macho scooter was the Bajaj Chetek. It was heavy, unwieldy, noisy, had to be kick started and above all had GEARS. Most people dismissed the Kinetic Honda as sissy scooter. They claimed that it was made of plastic and that it would disintegrate into pieces if it was driven for long distances. To prove them wrong Kinetic Honda was put to the acid test by the Kinetic motors. They made the Kinetic Honda to go around in circles in a Pune Stadium for 24 hours without a break. The drivers used to change every two hours and while the drivers were changing the engine was kept on. Even the petrol was filled when the engine was running. Kinetic Honda proved all its detractors wrong by running without a hitch for 24 hours thus proving that it was a light weight, modern and technologically advanced scooter. 28/02/2020 9 Jitendra Patel, Assistant Professor, PIMR

10. Sales Promotion Tools The two types of sales promotion tools consumer are as follows: A. Consumer-oriented Promotion Tools B. Trade-oriented Sales Promotion. 28/02/2020 10 Jitendra Patel, Assistant Professor, PIMR

11. Consumer-oriented Promotion Tools 1. Free samples 2. Coupons 3. Exchange scheme 4. Discounts 5. Premium offers 6. Personality promotions 7. Installment sales 28/02/2020 11 Jitendra Patel, Assistant Professor, PIMR

12. Personality promotions 28/02/2020 12 Jitendra Patel, Assistant Professor, PIMR

13. Trade-oriented Sales Promotion: 1. Cash bonuses: 2. Stock return: 3. Credit terms: 4. Dealer conferences: 5. Dealer trophies: 6. Push incentives: 28/02/2020 13 Jitendra Patel, Assistant Professor, PIMR

14. Trade-oriented Sales Promotion: 1. Cash bonuses: It can be in the form of one extra case for every five cases ordered, cash discounts or straight cash payments to encourage volume sales, product display, or in support of a price reduction to customers. 2. Stock return: Some firms take back partly or wholly the unsold stocks lying with the retailers, and distribute it to other dealers, where there is a demand for such stocks. 3. Credit terms: Special credit terms may provide to encourage bulk orders from retailers or dealers. 28/02/2020 14 Jitendra Patel, Assistant Professor, PIMR

15. Trade-oriented Sales Promotion: 4. Dealer conferences: A firm may organize dealer conferences. The dealers may be given information of the company’s performance, future plans, and so on. The dealers can also provide valuable suggestions to the company at such conferences. 5. Dealer trophies: Some firms may institute a special trophy to the highest-performing dealer in a particular period of time. Along with the trophy, the dealer may get a special gift such as a sponsored tour within or outside the country. 28/02/2020 15 Jitendra Patel, Assistant Professor, PIMR

16. Trade-oriented Sales Promotion: 6. Push incentives: It is a special incentive given to the dealer in the form of cash or in kind to push and promote the sale of a product, especially a newly launched product. 28/02/2020 16 Jitendra Patel, Assistant Professor, PIMR

17.  Best Marketing & Campaigns (And What Made Them Successful) 1) Nike: Just Do It. Did you know that, once upon a time, Nike's product catered almost exclusively to marathon runners? Then, a fitness craze emerged -- and the folks in Nike's marketing department knew they needed to take advantage of it to surpass their main competitor, Reebok. (At the time, Reebok was selling more shoes than Nike). And so, in the late 1980s, Nike created the "Just Do It." campaign. In 1988, Nike sales were at $800 million; by 1998, sales exceeded $9.2 billion. " 28/02/2020 17 Jitendra Patel, Assistant Professor, PIMR

18.  Volkswagen: Think Small 28/02/2020 18 Jitendra Patel, Assistant Professor, PIMR

19.  Volkswagen: Think Small Many marketing and advertising professionals like to call Volkswagen's "Think Small" campaign the gold standard. Created in 1960 by a legendary advertising group at Doyle Dane & Bernbach (DDB), the campaign set out to answer one question: How do you change peoples' perceptions not only about a product, but also about an entire group of people? See, Americans always had a propensity to buy big American cars -- and even 15 years after WWII ended, most Americans were still not buying small German cars. So what did this Volkswagen advertisement do? It played right into the audience’s expectations.  You think I’m small? Yeah, I am.  They never tried to be something they were not. That's the most important takeaway from this campaign: Don’t try to sell your company, product, or service as something it’s not. Consumers recognize and appreciate honesty. 28/02/2020 19 Jitendra Patel, Assistant Professor, PIMR

20. Rajasthan Tourism — “ Jaane kya dikh   jaaye ” campaign strikes the right chord with a potential tourist to discover new experiences in a state which has a lot to offer. The campaign urges to discover Rajasthan and see it through your eyes to find something new and absolutely interesting. See it for yourself rather than us pointing out what is so great about it. It does this by telling stories of different protagonists, some turn out to be funny while others purely magical. The camel, sand animated logo, folk music in the background are all elements that make the state of Rajasthan which are integrated well in the creative to develop an obvious category and product association. 28/02/2020 20 Jitendra Patel, Assistant Professor, PIMR

21. Paytm  —  Paytm   Karo Coming to the most talked about brand of 2016, Paytm . Paytm when they came out with their TV campaign —  Paytm Karo Moreover, if you go back and see the brands that have become verbs or have replaced themselves with services they offer, then you will realize that it happened as a natural phenomenon and not because of any sort of push marketing. “ Facebooking ” “Google it” “Xerox it” “Call an Uber ” 28/02/2020 21 Jitendra Patel, Assistant Professor, PIMR

22. Personal Selling Personal selling  is where businesses use people (the "sales force") to  sell  the product after meeting face-to-face with the customer. The sellers promote the product through their attitude, appearance and specialist product knowledge In the language of sales and marketing, "personal selling" singles out those situations in which a real human being is trying to sell something to another face-to-face.  Personal selling refers to the presentation of goods and services before the customers and convincing or persuading them to buy the products or services. 28/02/2020 22 Jitendra Patel, Assistant Professor, PIMR

23. Features Of Personal Selling Personal Form Development of Relationship Conversation Quick solution of Queries Receipt of Additional Information Real Sale 28/02/2020 23 Jitendra Patel, Assistant Professor, PIMR

24. Objectives of Personal Selling i . Face-to-Face interaction : Personal selling involves a salesmen having face-to-face interaction with the prospective buyers. ii. Persuasion : Personal selling requires persuasion on the part of the seller to the prospective customers to buy the product. So a salesman must have the ability to convince the customers so that an interest may be created in the mind of the customers to use that product. 28/02/2020 24 Jitendra Patel, Assistant Professor, PIMR

25. Objectives of Personal Selling iii. Flexibility : The approach of personal selling is always flexible. Sometimes salesman may explain the features and benefits of the product, sometimes give demonstration of the use of product and also faces number of queries from the customers. Looking into the situation and interest of the customers, the approach of the salesman is decided instantly. iv. Promotion of sales : The ultimate objective of personal selling is to promote sales by convincing more and more customers to use the product. 28/02/2020 25 Jitendra Patel, Assistant Professor, PIMR

26. Objectives of Personal Selling v. Supply of Information : Personal selling provides various information to the customers regarding availability of the product, special features, uses and utility of the products. So it is an educative process. vi. Mutual Benefit : It is a two-way process. Both seller and buyer derive benefit from it. While customers feel satisfied with the goods, the seller enjoys the profits. 28/02/2020 26 Jitendra Patel, Assistant Professor, PIMR

27. The Personal Selling Process PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS APPROACHING THE PROSPECT FOLLOWING UP CLOSING THE SALE HANDLING OBJECTIONS MAKING THE SALES PRESENTATION Pre approach: QUALIFYING PROSPECTS 28/02/2020 27 Jitendra Patel, Assistant Professor, PIMR

28. Pre-approach (Qualifying) Finding and analyzing information about prospects Evaluating a prospect’s potential Prospecting: Identifying likely new customers Leads Developing lists of Potential customers The Personal Selling Process 28/02/2020 28 Jitendra Patel, Assistant Professor, PIMR

29. Approaching The Prospect HOW DO WE MAKE THE INITIAL CONTACT & BUILD RAPPORT There is only one time to make a first impression The Personal Selling Process 28/02/2020 29 Jitendra Patel, Assistant Professor, PIMR

30. Making The Sales Presentation Using Persuasive communication Hold Attention Stimulate Interest Desire “Tell the product’s story” The Personal Selling Process 28/02/2020 30 Jitendra Patel, Assistant Professor, PIMR

31. Handling Objections Questions Reservations Understand Concern Counter arguments Acknowledge concern Clues to process The Personal Selling Process 28/02/2020 31 Jitendra Patel, Assistant Professor, PIMR

32. Closing the Sale Closing signals Trial close Asking the prospect to buy The Personal Selling Process Following Up Commitments met Shipment Performance Reinforce relationship Satisfied customers rebuy & recommend 28/02/2020 32 Jitendra Patel, Assistant Professor, PIMR

33. Salesmanship Features 1. Mutual benefit 2. Salesmanship is a persuasion 3. Creation of permanent customers 4. An educative process 5. Winning of buyer confidence 6. Link between the buyer and the seller 7. A creative process 8. Aiming to serve producers, distributors and customers 9. Discourages unnecessary arguments 10. Customers are always right 28/02/2020 33 Jitendra Patel, Assistant Professor, PIMR

34. A.I.D.A. Formula 28/02/2020 34 Jitendra Patel, Assistant Professor, PIMR

35. Describing the A.I.D.A. Formula A - Attention (Awareness): attract the attention of the customer.     I - Interest : raise customer interest by focusing on and demonstrating advantages and benefits (instead of focusing on features, as in traditional advertising).     D - Desire : convince customers that they want and desire the product or service and that it will satisfy their needs.     A - Action: lead customers towards taking action and/or purchasing. 28/02/2020 35 Jitendra Patel, Assistant Professor, PIMR

36. AIDAS 28/02/2020 36 Jitendra Patel, Assistant Professor, PIMR

37. 28/02/2020 37 Jitendra Patel, Assistant Professor, PIMR

38. AIDA Example A1 = Attention The large image of Lionel Messi draws the potential customers initial attention to the advert. I = Interest The text “Every team needs the spark” raises the potential customer interest in the advert as they want to know how they can bring this “Spark” to their team. D = Desire The text “F50, time your feet light up the game” below the image of the F50 shoe increases the potential customers desire for the shoes as they believe that it will make them a better footballer. A2 = Action The action is that the potential customer will visit the website and find out more information and/or purchase the shoes. 28/02/2020 38 Jitendra Patel, Assistant Professor, PIMR

39. Qualities of a Good Salesman Empathy: Empathy is the ability to identify with customers, to feel what they are feeling and make customers feel respected.  Focus: A person with focus is internally driven to accomplish goals and can stay attentive to one topic.  Focused individuals are more demanding of themselves than other people and they are self-motivated.  28/02/2020 39 Jitendra Patel, Assistant Professor, PIMR

40. Qualities of a Good Salesman Responsibility: A person with a strong sense of responsibility does not place blame on other people when placed in a difficult situation.  This type of person, referred to as an “agent”, gets things done and when obstacles arise, accepts any errors or omissions that have occurred Optimism: A salesperson with a healthy amount of optimism can be described as someone who is slow to learn helplessness. 28/02/2020 40 Jitendra Patel, Assistant Professor, PIMR

41. Qualities of a Good Salesman Ego-drive: Ego-drive is similar to optimism in that both traits require persistence.  But ego-drive is persistence for the purpose of succeeding and above all winning.  It’s all about competitiveness.  28/02/2020 41 Jitendra Patel, Assistant Professor, PIMR

42. Reference Belch: Advertising and Promotion: An Integrated Marketing Communications Perspective .8th Edition, The McGraw−Hill Companies, 2011 O’Guinn,Allen,Semenik,4E,Advertising & Integrated Brand Promotion, Thomson, India Edition, New Delhi,2007. Philip Kotler , Kelvin Lane, Keller, Abraham Koshi , Mitihlesh Jha , Principles of Marketing Management, South Asian Perspective, Pearson Education, 14th Edition 2011.   Philip Kotler n and    Gary Armstrong  “Principles of Marketing”,   New Delhi, Prentice Hall of India, 15th Edition, 2013. Thomas O'Guinn  ,  Chris Allen  ,  Richard J. Semenik  and   Angeline Close Scheinbaum  Advertising and Integrated Brand Promotion (with CourseMate with Ad Age Printed Access Card) 7th Edition,Cengage learning, Stanford USA , 2014. 28/02/2020 42 Jitendra Patel, Assistant Professor, PIMR

43. Thanks 28/02/2020 43 Jitendra Patel, Assistant Professor, PIMR