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Marketing: An Introduction

Thirteenth Edition

Chapter 13

Personal selling and sales promotion

Learning Objectives (1 of 4)

13-1. Discuss the role of a company’s salespeople in creating value for customers and building customer relationships.

13-2. Identify and explain the six major sales force management steps.

This chapter discusses the role of a company’s salespeople in creating value for customers and building customer relationships. It also identifies and explains the six major sales force management steps.

Learning Objectives (2 of 4)

13-3. Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing.

13-4. Explain how sales promotion campaigns are developed and implemented.

This chapter further discusses the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing. Finally, it explains how sales promotion campaigns are developed and implemented.

First Stop: Salesforce You Need a Great Sales Force to Sell Salesforce

Salesforce’s “Customer Success Platform” helps its customers “supercharge their sales.”

Salesforce’s cloud-based “Customer Success Platform” provides a wide array of customer relationship management tools that help its customers “supercharge their sales.”

Salesforce leads the market in sales force automation and customer relationship management solutions. But even Salesforce’s innovative products won’t sell themselves. The company knows that it needs a great sales force to sell Salesforce.

Learning Objective 13-1

Discuss the role of a company’s salespeople in creating value for customers and building customer relationships.

Personal Selling (1 of 2)

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

Salesperson: Represents a company to customers by performing the following activities:

Prospecting and communicating

Selling and servicing

Gathering information and building relationships

Personal selling involves personal presentations by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships.

Most salespeople are well-educated and well-trained professionals who add value for customers and maintain long-term customer relationships. They listen to their customers, assess customer needs, and organize the company’s efforts to solve customer problems.

A salesperson is an individual who represents a company to customers by performing one or more activities: prospecting, communicating, selling, servicing, information gathering, and relationship building.

Personal Selling (2 of 2)

Professional selling takes more than fast talk and a warm smile to sell expensive airplanes.

Professional selling takes more than fast talk and a warm smile to sell expensive airplanes. Boeing’s real challenge is to win business by building partnerships—day-in, day-out, year-in, year-out—with its customers.

The Role of the Sales Force

Links the company with its customers

Coordinates marketing and sales

The sales force serves as a critical link between a company and its customers. They represent the company to customers. At the same time, salespeople represent customers to the company. Salesperson-owned loyalty lends even more importance to the salesperson’s customer-relationship-building abilities. Strong relationships with the salesperson will result in strong relationships with the company and its products. Poor salesperson relationships will probably result in poor company and product relationships.

A company can take several actions to help bring its marketing and sales functions closer together. At the most basic level, it can increase communications between the two groups by arranging joint meetings and spelling out communications channels. A company can also create joint objectives and reward systems. Finally, it can appoint a high-level marketing executive to oversee both marketing and sales.

Learning Objective 13-1 Summary

Personal selling – engaging customers, making sales, and building customer relationships

A sales force serves as a critical link between a company and its customers.

Prospecting, communicating, selling, servicing, information gathering, and relationship building

Most companies use salespeople, and many companies assign them an important role in the marketing mix. For companies selling business products, the firm’s sales force works directly with customers. Often, the sales force is the customer’s only direct contact with the company and therefore may be viewed by customers as representing the company itself. In contrast, for consumer product companies that sell through intermediaries, consumers usually do not meet salespeople, or even know about them. The sales force works behind the scenes, dealing with wholesalers and retailers to obtain their support, while helping them become more effective in selling the firm’s products.

As an element of the promotion mix, the sales force is very effective in achieving certain marketing objectives and carrying out such activities as prospecting, communicating, selling, servicing, and information gathering. But with companies becoming more market oriented, a customer-focused sales force also works to produce both customer satisfaction and company profit. The sales force plays a key role in engaging customers and developing and managing profitable customer relationships.

Learning Objective 13-2

Identify and explain the six major sales force management steps.

Sales Force Management

Sales force management - analyzing, planning, implementing, and controlling sales force activities

Major Steps in Sales Force Management

Sales force management is defined as analyzing, planning, implementing, and controlling sales force activities. It includes designing sales force strategy and structure, as well as recruiting, selecting, training, compensating, supervising, and evaluating the firm’s salespeople. These steps are presented in detail in the following slides.

Designing the Sales Force Strategy and Structure

Types of sales force structures:

Territorial

Product

Customer (or market)

Salespeople can be specialized by

Customer and territory

Product and territory

Product and customer

Territory, product, and customer

A territorial sales force structure refers to a sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company’s full line. In a product sales force structure, salespeople specialize in selling only a portion of the company’s products or lines. A customer (or market) sales force structure refers to a sales force organization in which salespeople specialize in selling only to certain customers or industries.

Salespeople can be specialized by customer and territory, product and territory, product and customer, or territory, product, and customer. Each company should select a sales force structure that best serves the needs of its customers and fits its overall marketing strategy.

If a company sells only one product line to one industry with customers in many locations, it would use a territorial sales force structure. If the company sells many products to many types of customers, it might need a product sales force structure, a customer sales force structure, or a combination of the two.

The Sales Force Structure

Whirlpool specializes its sales force by customer and by territory for each key customer group.

Whirlpool specializes its sales force by customer (with different sales teams for Sears, Lowe’s, Best Buy, Home Depot, and smaller independent retailers) and by territory for each key customer group (territory representatives, territory managers, regional managers, and so on).

Sales Force Size

May range from only a few to thousands

Companies may use the workload approach to set sales force size.

Accounts grouped into classes based on size, status, or the amount of effort required to maintain the account

Number of salespeople needed to call on each class of accounts is then determined

Many companies use some form of workload approach to set sales force size. Using this approach, a company first groups accounts into different classes according to size, account status, or other factors related to the amount of effort required to maintain the account. It then determines the number of salespeople needed to call on each class of accounts the desired number of times.

Sales forces may range in size from only a few salespeople to tens of thousands.

Other Sales Force Strategy and Structure Issues

Outside sales force (field sales force)

Travels to call on customers in the field

Inside sales force

Conducts business from their offices via telephone, the Internet, or visits from prospective buyers

Technical sales support people

Sales assistants

Telemarketers and online sellers

Team selling

Teams of people from different departments used to service large, complex accounts

A company may have an outside sales force (or field sales force), an inside sales force, or both.

Outside salespeople travel to call on customers in the field. In contrast, inside salespeople conduct business from their offices via telephone, online and social media interactions, or visits from buyers. Technical sales support and sales assistants are other examples of inside salespeople. For example, technical sales support people provide technical information and answers to customers’ questions. Sales assistants provide research and administrative backup for outside salespeople. Telemarketers and online sellers use the phone, Internet, and social media to find new leads, learn about customers and their businesses, or sell and service accounts directly.

Most companies now use team selling to service large, complex accounts. Team selling does have some pitfalls, however. For example, salespeople who are used to having customers all to themselves may have trouble learning to work with and trust others on the team. In addition, selling teams can confuse or overwhelm customers who are used to working with only one salesperson. Finally, difficulties in evaluating individual contributions to the team-selling effort, can create some sticky compensation issues.

Recruiting & Selecting Salespeople

A company should analyze the sales job and the characteristics of its most successful salespeople.

Sources for the recruitment of salespeople:

Referrals from current salespeople

Employment agencies

Internet and online social media

Posting ads and notices

College placement services

Salespeople at other companies

When recruiting, a company should analyze the sales job itself and the characteristics of its most successful salespeople to identify the traits needed by a successful salesperson in their industry. Super salespeople are motivated from within, they have an unrelenting drive to excel, they have a desire to provide service and build relationships. They also have a disciplined work style. They lay out detailed, organized plans and then follow through in a timely way. Super salespeople build the skills and knowledge they need to get the job done. They also understand their customers’ needs.

The company must recruit the right salespeople. The human resources department looks for applicants by getting names from current salespeople, using employment agencies, searching the Internet and online social media, posting ads and notices on its Web site and industry media, and working through college placement services. Another source is to attract top salespeople from other companies. Proven salespeople need less training and can be productive immediately.

Training Salespeople

Goals of training are to teach salespeople

About different types of customers

How to sell effectively

About the company’s objectives, organization, products, and the strategies of competitors

Online training builds sales skills using videos, Internet-based exercises, or simulations.

Virtual instructor-led training (VILT)

Training programs have several goals. First, salespeople need to know about customers and how to build relationships with them. Therefore, the training program must teach them about different types of customers and their needs, buying motives, and buying habits. It must teach them how to sell effectively and train them in the basics of the selling process. Salespeople also need to know and identify with the company, its products, and its competitors. Therefore, an effective training program teaches them about the company’s objectives, organization, products, and the strategies of major competitors.

Today, many companies are adding digital e-learning to their sales training programs. Online training may range from simple text and video-based product training or

Internet-based sales exercises that build sales skills. Training may also incorporate sophisticated simulations that re-create the dynamics of real-life sales calls.

One of the most basic forms is virtual instructor-led training (VILT). Using this method, a small group of salespeople at remote locations logs on to a Web conferencing site, where a sales instructor leads training sessions using online video, audio, and interactive learning tools.

Training online instead of on-site can cut travel and other training costs, and it takes up less of a salesperson’s selling time. It also makes on-demand training available to salespeople, letting them train as little or as much as needed, whenever and wherever needed.

Compensating Salespeople (1 of 2)

Elements of compensation

Fixed amount – salary

Variable amount – commissions or bonuses

To attract good salespeople, a company must have an appealing compensation plan. Compensation consists of four elements.

A fixed amount, usually a salary, gives the salesperson some stable income.

The variable amount, which might be commissions or bonuses based on sales performance, rewards the salesperson for greater effort and success. Compensation should direct salespeople toward activities that are consistent with the overall sales force and marketing objectives.

Salespeople’s compensation also includes reimbursement of expenses and fringe benefits.

Compensating Salespeople (2 of 2)

A good compensation plan both motivates salespeople and directs their activities.

A good sales force compensation plan both motivates salespeople and directs their activities.

Supervising Salespeople

Help salespeople work smart by doing the right things in the right ways

Tools of supervision:

Call plan

Time-and-duty analysis

Sales force automation system

The goal of supervision is to help salespeople work smart by doing the right things in the right ways. Many firms help salespeople identify target customers and set call objectives. Some may also specify how much time the sales force should spend prospecting for new accounts and set other time management priorities.

One tool is the weekly, monthly, or annual call plan that shows which customers and prospects to call on and which activities to carry out. Another tool is a time-and-duty analysis. In addition to time spent selling, the salesperson spends time traveling, waiting, taking breaks, and doing administrative chores.

Many firms have adopted sales force automation systems, which are computerized, digitized sales force operations that let salespeople work more effectively anytime, anywhere. Companies now routinely equip their salespeople with laptops or tablets, smartphones, wireless connections, videoconferencing technologies, and customer-contact and relationship management software. The result is better time management, improved customer service, lower sales costs, and higher sales performance.

Figure 13.2 How Salespeople Spend Their Time

Figure 13.2 shows how salespeople spend their time. On average, active selling time accounts for only 37 percent of total working time. Companies are always looking for ways to save time—simplifying administrative duties, developing better sales-call and routing plans, supplying more and better customer information, and using phone, email, online, or mobile conferencing instead of traveling.

Companies need salespeople to spend much more face-to-face time with customers and prospects. For example, GE wants its salespeople to “spend four days a week in front of the customer and one day a week for all the admin stuff.”

Motivating Salespeople

Encourage salespeople to work hard and energetically toward sales force goals

Management can boost sales force morale and performance through its

Organizational climate

Sales quotas

Positive incentives

The goal of motivation is to encourage salespeople to work hard and energetically toward sales force goals. Management can boost sales force morale and performance through its organizational climate, sales quotas, and positive incentives.

Organizational climate describes the feeling that salespeople have about their opportunities, value, and rewards for good performance.

Many companies motivate their salespeople by setting sales quotas—a standard that states the amount a salesperson should sell and how sales should be divided among the company’s products. Compensation is often related to how well salespeople meet their quotas.

Companies also use various positive incentives to increase the sales force effort. Sales meetings provide social occasions, breaks from the routine, chances to meet and talk with company brass, and opportunities to air feelings and identify with a larger group. Companies also sponsor sales contests to spur the sales force to make a selling effort above and beyond what is normally expected. Other incentives include honors, merchandise, cash awards, trips, and profit-sharing plans.

Evaluating Salespeople and Sales Force Performance

Management gets information about its salespeople

From sales, call, and expense reports

By monitoring the sales and profit performance data in the salesperson’s territory

Through personal observation, customer surveys, and talks with other salespeople

Formal evaluations force management to develop standards for judging performance.

Management gets information about its salespeople in several ways. The most important source is sales reports, including weekly or monthly work plans and longer-term territory marketing plans. Salespeople write up their completed activities on call reports and turn in expense reports for which they are partly or wholly reimbursed. The company can also monitor the sales and profit performance data in the salesperson’s territory. Additional information comes from personal observation, customer surveys, and talks with other salespeople.

Using various sales force reports and other information, sales management evaluates the members of the sales force. Formal evaluation forces management to develop and communicate clear standards for judging performance. It also provides salespeople with constructive feedback and motivates them to perform well.

On a broader level, management should evaluate the performance of the sales force as a whole. As with other marketing activities, the company should measure its return on sales investment.

Social Selling: Online, Mobile, and Social Media Tools

Provide salespeople with powerful tools for

Identifying and learning about prospects

Engaging customers

Creating customer value

Closing sales

Nurturing customer relationships

Help sales forces to be more efficient, cost-effective, and productive

The new digital technologies are providing salespeople with powerful tools for identifying and learning about prospects, engaging customers, creating customer value, closing sales, and nurturing customer relationships. Social selling technologies can produce big organizational benefits for sales forces. They help conserve salespeople’s valuable time, save travel dollars, and give salespeople new vehicles for selling and servicing accounts.

Salespeople now routinely use digital tools to monitor customer social media exchanges to spot trends, identify prospects, and learn what customers would like to buy, how they feel about a vendor, and what it would take to make a sale. They generate lists of prospective customers from online databases and social networking sites, such as InsideView, Hoovers, and LinkedIn.

However, the technologies also have some drawbacks. They’re not cheap, such systems can intimidate low-tech salespeople or clients, and things that require personal interactions cannot be presented via the Internet. For these reasons, some high-tech experts recommend that sales executives use online and social media technologies to spot opportunities, provide information, maintain customer contact, and make preliminary client sales presentations but use face-to-face meetings when the time draws near to close a big deal.

Learning Objective 13-2 Summary

Sales force management – analyzing, planning, implementing, and controlling sales force activities

Major steps in sales force management:

Designing sales force strategy and structure, recruiting, selecting, training, compensating, supervising, and evaluating the firm’s salespeople

In designing a sales force, management must decide what type of sales force structure will work best, sales force size, who will be involved in selling, and how various salespeople and sales-support people will work together. In recruiting salespeople, a company may look to the job duties and the characteristics of its most successful salespeople to suggest the traits it wants in new salespeople. After the selection process is complete, training programs familiarize new salespeople not only with the art of selling but also with the company’s history, its products and policies, and the characteristics of its customers and competitors. The sales force compensation system helps to reward, motivate, and direct salespeople, All salespeople need supervision, and many need continuous encouragement because they must make many decisions and face many frustrations. Periodically, the company must evaluate their performance to help them do a better job.

The fastest-growing sales trend is the explosion in social selling—using online, mobile, and social media in selling. The new digital technologies are providing salespeople with powerful tools for identifying and learning about prospects, engaging customers, creating customer value, closing sales, and nurturing customer relationships. Ultimately, online, mobile, and social media technologies are helping to make sales forces more efficient, cost-effective, and productive.

Learning Objective 13-3

Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing.

Figure 13.3 - Steps in the Selling Process

Figure 13.3 shows seven steps in the selling process.

The first step in the selling process is prospecting and qualifying—identifying qualified potential customers. They want to call on those who are most likely to appreciate and respond to the company’s value proposition—those the company can serve well and profitably.

Preapproach refers to a salesperson learning as much as possible about a prospective customer before making a sales call. During the approach step, the salesperson should know how to meet and greet the buyer and get the relationship off to a good start.

During the presentation and demonstration step of the selling process, the salesperson tells the “value story” to the buyer, demonstrating how the company’s offer solves the customer’s problems. In handling objections, the salesperson should use a positive approach, seek out hidden objections, ask the buyer to clarify any objections, take objections as opportunities to provide more information, and turn the objections into reasons for buying.

Closing refers to a salesperson asking the customer for an order. And finally, follow-up refers to a salesperson following up after the sale to ensure customer satisfaction and repeat business.

The Personal Selling Process (1 of 2)

Value selling – demonstrating and delivering superior customer value capturing a return on that value that is fair for both the customer and the company

Value selling requires:

Listening to customers

Understanding customers’ needs

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

Most companies want their salespeople to practice value selling – demonstrating and delivering superior customer value and capturing a return on the value that is fair for both the customer and the company. Unfortunately, in the heat of closing sales, salespeople too often take the easy way out by cutting prices rather than selling value.

Value selling requires listening to customers, understanding their needs, and carefully coordinating the whole company’s efforts to create lasting relationships based on customer value.

The Personal Selling Process (2 of 2)

Sales management’s challenge is to transform salespeople into company advocates for value.

With value selling, sales management’s challenge is to transform salespeople from customer advocates for price cuts into company advocates for value.

Learning Objective 13-3 Summary

Selling involves a seven-step process:

Prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow-up

Relationship marketing

Profitable long-term relationships

Based on customer value and satisfaction

Selling involves a seven-step process: prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow-up. These steps help marketers close a specific sale and, as such, are transaction oriented. However, a seller’s dealings with customers should be guided by the larger concept of relationship marketing. The company’s sales force should help to orchestrate a whole-company effort to develop profitable long-term relationships with key customers based on superior customer value and satisfaction.

Learning Objective 13-4

Explain how sales promotion campaigns are developed and implemented.

Sales Promotion (1 of 2)

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

Sales promotion targets

Final buyers - Consumer promotions

Retailers and wholesalers - Trade promotions

Business customers - Business promotions

Members of the sales force - Sales force promotions

Sales promotion consists of short-term incentives to encourage the purchase or sale of a product or service. Whereas advertising offers reasons to buy a product or service, sales promotion offers reasons to buy now.

Sales promotion tools are used by most organizations. They are targeted toward final buyers through consumer promotions, retailers and wholesalers through trade promotions, business customers through business promotions, and members of the sales force through sales force promotions.

Sales Promotion (2 of 2)

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.

Several factors have contributed to the rapid growth of sales promotion. First, product managers view promotion as an effective short-run sales tool. Second, the company faces more competition, and competitors are using sales promotion to help differentiate their offers. Third, advertising efficiency has declined because of rising costs, media clutter, and legal restraints. Finally, consumers are demanding lower prices and better deals. Sales promotions can 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 and more inventory, buy ahead, or promote the company’s products and give them more shelf space

Business promotions

To generate business leads, stimulate purchases, reward customers, and motivate salespeople

Sales promotion objectives vary widely. Sellers may use consumer promotions to urge short-term customer buying or boost customer−brand engagement. Objectives for trade promotions include getting retailers to carry new items and more inventory, buy ahead, or promote the company’s products and give them more shelf space. Business promotions are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople.

Consumer Promotion Tools (1 of 2)

Tools	Description
Samples	Offers of a trial amount of a product Most effective and expensive
Coupons	Certificates that save buyers money when they purchase specified products
Rebates (cash refunds)	Price reduction occurs after the purchase Customer sends proof of purchase to the manufacturer, which then refunds part of the purchase price by mail
Price packs (cents-off deals)	Offers consumers savings off the regular price of a product
Premiums	Goods offered either free or at low cost as an incentive to buy a product

Consumer promotions include a wide range of tools. This table shows the customer promotion tools of samples, coupons, rebates, price packs, and premiums.

Samples are offers of a trial amount of a product. Sampling is the most effective, but most expensive way to introduce a new product or create new excitement for an existing one.

Coupons are certificates that save buyers money when they purchase specified products.

Rebates, or cash refunds, are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet. The customer sends a proof of purchase to the manufacturer, which then refunds part of the purchase price by mail.

Price packs, also called cents-off deals, offer consumers savings off the regular price of a product. The producer marks the reduced prices directly on the label or package.

Premiums are goods offered either free or at low cost as an incentive to buy a product.

Consumer Promotion Tools (2 of 2)

Tools	Description
Advertising specialties	Useful articles imprinted with an advertiser’s name, logo, or message that are given as gifts to consumers
Point-of-purchase (POP) promotions	Displays and demonstrations that take place at the point of sale
Contests, sweepstakes, and games	Give consumers the chance to win something
Event marketing (or event sponsorships)	Creating a brand-marketing event or serving as a sole or participating sponsor of events created by others

This table shows the customer promotion tools of advertising specialties, point-of-purchase promotions, contests, sweepstakes, games, and event marketing.

Advertising specialties, also called promotional products, are useful articles imprinted with an advertiser’s name, logo, or message that are given as gifts to consumers.

Point-of-purchase (POP) promotions include displays and demonstrations that take place at the point of sale.

Contests, sweepstakes, and games give consumers the chance to win something, such as cash, trips, or goods, by luck or through extra effort.

Marketers promote brands through event marketing or event sponsorships. Firms can create their own brand-marketing events or serve as sole or participating sponsors of events created by others.

Event Marketing

Red Bull hosts hundreds of events each year in dozens of sports around the world.

Red Bull hosts hundreds of events each year in dozens of sports around the world, designed to bring the high-octane world of Red Bull to its community of enthusiasts.

Trade Promotions

Used to persuade resellers to carry a brand, give it shelf space, and promote it in ads

Trade promotion tools:

Contests, premiums, and displays

Discounts and allowances

Free goods

Push money

Specialty advertising items

Manufacturers direct more sales promotion dollars toward retailers and wholesalers than to final consumers. Trade promotions can persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers. Manufacturers use several trade promotion tools.

Many of the tools used for consumer promotions—contests, premiums, displays— can also be used as trade promotions.

The manufacturer may offer a straight discount off the list price on each case purchased during a stated period of time (also called a price-off, off-invoice, or off-list).

They may offer an allowance (so much off per case) in return for the retailer’s agreement to feature the manufacturer’s products in some way.

Manufacturers may offer free goods, which are extra cases of merchandise, to resellers who buy a certain quantity or who feature a certain flavor or size.

They may also offer push money—cash or gifts to dealers or their sales forces to “push” the manufacturer’s goods.

Finally, retailers may be given free specialty advertising items that carry the company’s name, such as pens, calendars, memo pads, flashlights, and tote bags.

Business Promotions

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

Business promotion tools:

Conventions and trade shows

Sales contests

Business promotions are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople. Business promotions include many of the same tools used for consumer or trade promotions. Additional major business promotion tools include conventions and trade shows and sales contests.

Many companies and trade associations organize conventions and trade shows to promote their products. Firms selling to the industry exhibit their products at the trade show. Vendors at these shows receive many benefits, such as opportunities to find new sales leads, contact customers, introduce new products, meet new customers, sell more to present customers, and educate customers with publications and audiovisual materials.

A sales contest is a contest for salespeople or dealers to motivate them to increase their sales performance over a given period. Sales contests motivate and recognize good company performers, who may receive trips, cash prizes, or other gifts.

Developing the Sales Promotion Program

Sales promotion program design decisions:

Determine the size of the incentive

Set conditions for participation

Determine how to promote and distribute the promotion program

Set the length of the promotion

Evaluate the promotion

Beyond selecting the types of promotions to use, marketers must make several other decisions in designing the full sales promotion program.

First, they must determine the size of the incentive. A certain minimum incentive is necessary if the promotion is to succeed; a larger incentive will produce more sales response. The marketer also must set conditions for participation. Incentives might be offered to everyone or only to select groups.

Marketers must determine how to promote and distribute the promotion program.

The length of the promotion is also important. If the sales promotion period is too short, many prospects will miss it. If the promotion runs too long, the deal will lose some of its “act now” force.

Evaluation is also very important. Marketers should work to measure the returns on their sales promotion investments, just as they should seek to assess the returns on other marketing activities.

Learning Objective 13-4 Summary

Sales promotion objectives – consumer promotions, trade promotions, and business promotions

Consumer promotion tools – samples, coupons, rebates, price packs, and premiums

Trade promotion tools – contests, premiums, and displays, discounts and allowances, free goods, push money, and specialty advertising items

Business promotion tools – conventions and trade shows, and sales contests

Sales promotion campaigns call for setting sales promotion objectives (in general, sales promotions should be consumer relationship building); selecting tools; and developing and implementing the sales promotion program by using consumer promotion tools (from coupons, refunds, premiums, and point-of-purchase promotions to contests, sweepstakes, and events), trade promotion tools (from discounts and allowances to free goods and push money), and business promotion tools (conventions, trade shows, and sales contests) as well as determining such things as the size of the incentive, the conditions for participation, how to promote and distribute the promotion package, and the length of the promotion. After this process is completed, the company must evaluate its sales promotion results.

Learning Objectives (3 of 4)

13-1. Discuss the role of a company’s salespeople in creating value for customers and building customer relationships.

13-2. Identify and explain the six major sales force management steps.

This chapter discussed the role of a company’s salespeople in creating value for customers and building customer relationships. It also identified and explains the six major sales force management steps.

Learning Objectives (4 of 4)

13-3. Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing.

13-4. Explain how sales promotion campaigns are developed and implemented.

This chapter further discussed the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing and finally, explained how sales promotion campaigns are developed and implemented.