Chapter 18 ♦ Sales Promotion and Personal Selling 18-1
CHAPTER 18 Sales Promotion and Personal Selling
CHAPTER FEATURES
Chapter Features
Key Points
✓ Marketing & You
Students are given a survey to determine their preference for using
coupons.
✓ Customer Experience
Once considered a master at branding and one of the most admired
companies in the world, today, Starbucks has lost its luster, and the
competition is creeping up.
✓ Case Study
Ron Popeil, the man who invented personal selling via the mass
marketing medium, could be called the “godfather of the
infomercial”.
USING THIS MANUAL
Chapter eighteen includes seven learning outcomes that help students become more familiar with sales promotion and
personal selling. The chapter outline provides detailed analysis of these learning outcomes, listing PowerPoint slides and
review questions as they correspond to sections of the text. Answers and explanations for end-of-chapter exercises are
✓ Ethics in Marketing
Lobbying involves trying to persuade legislators to propose, pass, or
defeat legislation or to change existing laws. The most powerful
tools used by lobbyists are the skills learned from personal selling.
✓ Application Exercise
Students keep track of sales encounters in a journal and then look for
patterns and concepts in their data.
18-2 Chapter 18 ♦ Sales Promotion and Personal Selling
LEARNING OUTCOMES
1 Define and state the objectives of sales promotion
Sales promotion consists of those marketing communication activities, other than advertising, personal selling, and
public relations, in which a short-term incentive motivates consumers or members of the distribution channel to
2 Discuss the most common forms of consumer sales promotion
Consumer forms of sales promotion include coupons and rebates, premiums, loyalty marketing programs, contests
and sweepstakes, sampling, and point–of-purchase displays. Coupons are certificates entitling consumers to an
3 List the most common forms of trade sales promotion
Manufacturers use many of the same sales promotion tools used in consumer promotions, such as sales contests,
4 Describe personal selling
Personal selling is direct communication between a sales representative and one or more prospective buyers in an
attempt to influence each other in a purchase situation. Broadly speaking, all businesspeople use personal selling to
5 Discuss the key differences between relationship selling and traditional selling
Relationship selling is the practice of building, maintaining, and enhancing interactions with customers in order to
6 List the steps in the selling process
The selling process consists of seven basic steps: (1) generating leads, (2) qualifying leads, (3) approaching the customer
and probing needs, (4) developing and proposing solutions, (5) handling objections, (6) closing the sale, and (7)
following up.
Chapter 18 ♦ Sales Promotion and Personal Selling 18-3
7 Describe the functions of sales management
Sales management is a critical area of marketing that performs several important functions. Sales managers set overall
company sales goals and define the sales process most effective for achieving those goals. They determine sales force
CHAPTER OUTLINE
1 Define and state the objectives of sales promotion
PowerPoint 18-5
Sales Promotion
I. Sales Promotion
Sales promotion is an activity in which a short-term incentive is offered to
consumers or channel members to induce the purchase of a particular good or
service.
PowerPoint 18-8
Objectives of Sales
Promotion
Review Questions 1.1, 1.2
A. The objectives of sales promotion center around immediate purchase. Specific
objectives may be to:
1. Increase trial
Sales promotion may also encourage brand switching in some instances
(coupons) and brand loyalty in others (frequent-buyer clubs).
Customer Experience
Has Starbucks Lost Its Mojo with Average Joes?
2 Discuss the most common forms of consumer sales
promotion
PowerPoint 18-11
II. Tools for Consumer Sales Promotion
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Tools for Consumer Sales
Promotion
Review Questions 2.1,
2.4, 2.6
Consumer sales promotion tools are used to create new users of the product, as
well as to entice current customers to buy more.
PowerPoint 18-12
A. A coupon is a certificate that entitles consumers to an immediate price
reduction when they purchase the item. Coupons are effective for product
PowerPoint 18-14
Contests and Sweepstakes
Review Question 2.5
B. A premium is an extra item offered, usually with proof of purchase, to the
consumer. Sometimes it may be a small item, such as a T-shirt or coffee
mug, or it may be free air travel or hotel stays. Frequent-buyer clubs and
other loyalty programs offer premiums.
C. Loyalty marketing programs or frequent-buyer programs, reward loyal
D. Contests and sweepstakes are promotions that give away prizes and awards.
A contest is based on some skill or ability, but sweepstakes rely on chance
and luck.
PowerPoint 18-17
PowerPoint 18-18
On-line Sales Promotion
Distributing samples to specific location types where consumers regularly
meet for a common objective or interest, is one of the most cost–efficient
methods of sampling.
F. A point-of–purchase display includes any promotion set up at the retailer’s
G. On-line sales promotions have been booming due to the overwhelming
popularity of the Internet. The most effective types of online sales
promotions are free merchandise, sweepstakes, free shipping with
3 List the most common forms of trade sales promotion
Chapter 18 ♦ Sales Promotion and Personal Selling 18-5
PowerPoint 18-21
Trade Sales Promotion
Review Questions 3.1, 3.3
III. Tools for Trade Sales Promotion
A. Trade promotions push a product through the distribution channel. When
PowerPoint 18-22
Trade Allowance
PowerPoint 18-24
Benefits of Trade
Promotions
1. Trade allowances: A trade allowance is a price reduction offered by
manufacturers to intermediaries, such as wholesalers or retailers, in
exchange for the performance of specified promotion activities.
4. Free merchandise: Another trade promotion is free merchandise
offered in lieu of quantity discounts.
Benefits of trade promotions:
1. Help manufacturers gain new distribution
4 Describe personal selling
PowerPoint 18-27
Personal Selling
Review Questions 4.1, 4.2
IV. Personal Selling
Advantages of Personal Selling
1. Personal selling can be used to provide a detailed explanation or
demonstration of the product.
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2. The message can be varied by the salesperson to fit the motivations
and interests of each prospective customer.
6. Personal selling complements social media sand other technology
because of the one-to-one nature of those platforms.
5 Discuss the key differences between relationship selling
and traditional selling
PowerPoint 18-30
Relationship Selling
V. Relationship Selling
Traditional selling is transaction-focused. That is, the salesperson is most
concerned with making one-time sales and moving on to the next prospect.
6 List the steps in the selling process
Review Questions 6.3, 6.4
PowerPoint 18-34
Steps in the Selling
Process
PowerPoint 18-35
Time Spent in Key Steps
of Selling Process
VI. Steps in the Selling Process
The sales process or sales cycle is the set of steps a salesperson goes through to
sell a particular product or service. The steps of selling follow the AIDA
concept.
Traditional selling and relationship selling follow the same basic steps. The
difference is the relative importance placed on key steps.
A. Generating Leads
Chapter 18 ♦ Sales Promotion and Personal Selling 18-7
PowerPoint 18-37
PowerPoint 18-38
Qualifying Leads
Review Question 6.1
PowerPoint 18-41
Developing and Proposing
Solutions
PowerPoint 18-44
Closing the Sale
conventions, and internal company records.
a. A referral is a recommendation from a customer or business
associate.
B. Qualifying Leads
C. Approaching the Customer and Probing Needs
1. Prior to approaching the customer, the salesperson should learn as
much as possible about the prospect’s organization and its buyers.
optimize their time and resources.
D. Developing and Proposing Solutions
1. A sales proposal is a written document or professional presentation
that outlines how the company’s product or service will meet or exceed
the client’s needs.
E. Handling Objections
F. Closing the Sale
1. At the end of the presentation, the salesperson attempts to close the
sale.
2. Closing requires skill and courage on the part of the salesperson.
Review Question 6.2
G. Following Up
Most businesses rely on repeat sales, and repeat sales depend on thorough
follow-up. Salespeople must ensure that:
7 Describe the functions of sales management
PowerPoint 18-47
Sales Management
Responsibilities
PowerPoint 18-48
Defining Sales Goals
PowerPoint 18-50
Sales Force Structure
Review Question 7.1
VII. Sales Management
Sales management is one of marketing’s most critical areas. It has several
important functions.
A. Defining Sales Goals and the Sales Process
1. Effective sales management begins with a determination of sales goals.
B. Determining the Sales Force Structure
1. Sales departments are most commonly organized by geographic
regions, product lines, marketing function performed, market or
industry, or individual client or account.
C. Recruiting and Training the Sales Force
Chapter 18 ♦ Sales Promotion and Personal Selling 18-9
Training the Sales Force
3. Training includes company policies, product knowledge, selling
techniques, and non-selling activities.
PowerPoint 18-53
Compensating the Sales
Force
PowerPoint 18-54
Motivating the Sales
Force
Ethics in Marketing
Lobbying – Is it just good Marketing?
Lobbying involves trying to persuade legislator to propose, pass, or defeat legislation or
D. Compensating and Motivating the Sales Force
1. Compensation planning is one of the sales manager’s toughest jobs.
4. Many sales managers feel that tying a portion of a salesperson’s
compensation to a client’s satisfaction with the salesperson and the
company encourages relationship building.
5. Sales managers often offer rewards or incentives, such as recognition
at ceremonies, premiums, awards, merchandise, vacations, and cash
bonuses.
E. Evaluating the Sales Force
KEY TERMS
18–10 Chapter 18 ♦ Sales Promotion and Personal Selling
Suggested Homework:
• The end of each chapter contains numerous questions that can be assigned or used as the basis for longer
investigations into marketing.
REVIEW AND APPLICATIONS
1.1 What is the primary factor that determines sales promotion objectives? Name some different types of
sales promotion techniques, and explain the type of customer they are intended to influence.
The general behavior of target consumers determines the sales promotion objectives. Students’ examples of
1.2 You have recently been assigned the task of developing promotional techniques to introduce your company’s
new product, a Cajun chicken sandwich. Advertising spending is limited, so the introduction will only
include some low-budget sales promotion techniques. Write a sales promotion plan that will increase
awareness of your new sandwich and allow your customer base to try it risk-free.
2.1 Discuss how different forms of sales promotion can erode or build brand loyalty. If a company’s objective is
to enhance customer loyalty to its products, which sales promotion technique would be most appropriate?
Some promotions – such as coupons, contests or rebates – may encourage brand switching and actually result in less
2.2 What forms of consumer sales promotion might induce impulse purchases? What forms of sales promotion
are more effective at persuading consumers to switch brands?
2.3 Consider the different consumer sales promotion tools. Give an example of how each type of tool has
influenced you to purchase—or purchase more of— a product or service.
Students’ answers will vary, but must include an example for each of the tools for consumer sales promotion:
2.4 Not everyone thinks supermarket shopper cards are a bargain. Go to www.nocards.org and read several
pages. Is the information on the site compelling? What do you think of shopper cards? You may want to
use the Internet to research shopper cards in more detail before forming an opinion.
Student responses will vary. This is a good question to use to set up a debate in class. Divide the class into two
2.5 Contests and sweepstakes are very common in the entertainment industry. Radio stations have contests
almost weekly (some daily); local television morning shows quiz viewers on trivia; even movies offer
sweepstakes in conjunction with film previews and premiere nights. Think of a television or radio program
Chapter 18 ♦ Sales Promotion and Personal Selling 18–11
unlikely to have contests or sweepstakes (things like Cops, The View, Scooby Doo, or your local classical
music radio station, for example). Once you have chosen your program, design a contest or sweepstake to
promote the show or the channel on which it airs. List the objectives and describe the rationale behind each
part of your promotion.
2.6 How can uPromote.com help you with your sales promotions efforts (visit www.upromote.com)? What
kind of marketing budget would you need to take advantage of its services? What kind of company
would be best served by uPromote.com?
3.1 How does trade sales promotion differ from consumer sales promotion? How is it the same?
Manufacturers use many of the same sales promotion tools used in consumer promotions, such as sales contests,
3.2 What are the main forms of trade sales promotion? Which type might be most enticing to a grocery
store manager? To a buyer for a major electronics chain?
Trade sales promotions may be sales contests, premiums, and point–of-purchase displays or trade allowances,
3.3 Form a team of three to five students. As marketing managers, you are in charge of selling Dixie Cups.
Design a consumer sales promotion plan and a trade sales promotion plan for your product. Incorporate at
least three different promotion tools into each plan. Share your results with the other teams in the class.
4.1 Discuss the role of personal selling in promoting products. What advantages does personal selling offer
over other forms of promotion?
4.2 What are the major advantages of personal selling to the company selling a product? What are the
advantages to the person or company buying the product?
Personal selling is considerably more effective than other forms of promotion in obtaining a sale and gaining a
5.1 What are the key differences between relationship selling and traditional methods of selling? Which types of
products or services do you think would be conducive to relationship selling?
The answer for the first part of the question should focus on the key differences highlighted in Exhibit 18.3. They
5.2 Based on the key differences between traditional and relationship selling, which type of sales approach
would you use as a salesperson? Do the different approaches require different personal strengths or
attributes?
6.1 You are a new salesperson for a well-known medical software company, and one of your clients is a large
group of physicians. You have just arranged an initial meeting with the office manager. Develop a list of
questions you will ask at this meeting to uncover the group’s specific needs.
Although students’ answers will vary, they should address some of these points: The need-satisfaction approach
6.2 What does sales follow-up entail? Why is it an essential step in the selling process, particularly from the
perspective of relationship selling? How does it relate to cognitive dissonance?
Although students’ answers will vary, they should address some of these points: A salesperson who properly
6.3 How many ways can ZapData (www.zapdata.com) benefit salespeople? Which of its services would be
most useful to marketing managers? Other businesspeople?
6.4 Consider each step in the selling process. Which steps could be conducted through technology (Internet,
webinars, etc.)? Which are most important to handle “face–to–face”?
7.1 What kinds of sales management opportunities are available at Amway and Quixtar? Use the
companies’ Web sites (www.amway.com; www.quixtar.com) to research one of these companies and
determine its sales process, sales force structure, and how it recruits and trains its salespeople.
7.2 How does each of the sales management functions contribute to a successful, high-performing sales
force?
Supplemental Exercise: Group Work
Review and Applications
Review and Applications Questions 2.5, 3.3 and 7.2 lend themselves well to group work. For these activities, divide