Chapter 18: Personal Selling and Sales Promotion
Sales promotion techniques are classified as consumer-oriented or trade-oriented.
Consumer-oriented sales promotions encourage repurchases by rewarding current users,
boosting sales of complementary products, and increasing impulse purchases. These
promotions also attract consumer attention in the midst of advertising clutter.
PRESENTATION VISUAL: MindTap Exhibit 18.5 showing different types of consumer-
oriented sales promotion
Consumer-Oriented Sales Promotions
Forms of Sales Promotion
Description
Examples
Coupons
Consumer is offered discounts on the
purchase price of goods and services
and redeem coupons at retail outlets.
Philadelphia Cream Cheese
distributing coupons by mail,
magazine, newspaper, package
Classroom activity: In pairs, ask students to discuss examples of each of these forms of sales
promotion that they’ve personally experienced in the last year.
Ask a few students to share their list with the class.
Trade promotion is sales promotion that appeals to distribution intermediaries rather than final
consumers. Marketers use trade promotions to encourage resellers to stock new products,
Chapter 18: Personal Selling and Sales Promotion
PRESENTATION VISUAL: MindTap Exhibit 18.6 showing different types of trade
promotion
Key Takeaway: The general objectives of sales promotion are to speed up the sales
process and increase sales volume.
Estimated time: 15–20 minutes
18-7 Effective Promotional Tactics
Note: This section in MindTap brings students through a short scenario about selecting effective
promotional tactics, using Hormel Foods from the opening vignette. It prepares students for the
chapter-ending activity. While students will read this scenario in MindTap for themselves, it can
be useful to review in class to ensure full understanding.
If Hormel had a new meat product they wanted to sell to hotels, they would consider this a
specific business market with a limited number of customers. It’s also a short channel, since
Hormel sells directly to customers using sales reps. In this case, personal selling would be the
Chapter 18: Personal Selling and Sales Promotion
highest priority component of their promotional mix, perhaps coupled with trade promotion.
Advertising is not favored in this situation and consumer-oriented sales promotion does not
apply here.
Key Takeaway: When a company seeks to launch new products into both consumer and
business markets, they must simultaneously consider how to best leverage their
promotional mix to be effective and efficient.
Estimated time: 10–15 minutes
Chapter 18: Personal Selling and Sales Promotion
LEARN IT TODAY . . . USE IT TOMORROW
VIGNETTE AND ACTIVITY
The opening vignette for Chapter 18 introduces students to Hormel Foods, maker of products
such as Spam and Skippy peanut butter. It describes Hormel’s different sales channels and
notes that their challenge is selecting the right promotional tactic for each marketing situation.
Note: Answers to the chapter-ending activity can be discussed in class after the activity
due date.
Promotion at Hormel
As Hormel continues to innovate, it must make decisions about marketing communications and
promotional mix elements that are most effective. Help Hormel determine which promotional
tactics to implement.
Decision 1
Hormel recently launched a line of ready-to-eat meals targeted to cancer patients who have
fatigue, decreased appetite, and unintentional weight loss. The line is called Hormel Vital
Which campaign do you believe would be most effective?
Campaign #1: Trade allowance and personal selling
Campaign #2: Sweepstakes and AARP Magazine advertisement
Answer to Decision 1
Campaign #1—Correct. It would be most appropriate to create interest and motivate grocery
stores to add the new product to their stores. Grocery store chains and independent grocers
Chapter 18: Personal Selling and Sales Promotion
Decision 2
Hormel recently introduced Skippy Peanut Butter Bites—available in double peanut butter,
granola, and pretzel varieties. Hormel’s target audience is busy consumers—on-the-go families,
young adults, or working adults who need a quick high-protein snack in between meals.
Which campaign do you believe would be most effective?
Campaign #1: Advertising on ESPN during NCAA football and basketball season
Campaign #2: Contest where grocery store managers could earn cash awards for selling Skippy
Peanut Butter Bites
Answer to Decision 2
Campaign #1—Correct. It would be most effective to promote Skippy Peanut Butter Bites to end
consumers and create awareness, interest, desire, and action to purchase the items. The target
Decision 3
Hormel has crafted a line of precooked meat items, called Fire Braised, which is aimed at the
restaurant market. Each item is cooked to perfection with the highest quality meat and is fire
braised and slow-cooked, which gives the appearance of visible carmelization. Hormel created
this line to help restaurants gain efficiency and increase profitability by reducing the time to cook
Chapter 18: Personal Selling and Sales Promotion
The product managers have recommended two promotional campaign options: (1) a trade show
sampling program focusing on events targeted to restaurants and restaurant supply companies
or (2) radio advertisements on CNN’s Sirius Radio channel and direct mail coupons to
restaurant managers.
Which campaign do you believe would be most effective?
Campaign #1: Trade show program
Answer to Decision 3
Campaign #1—Correct. It would be most effective to influence restaurants and restaurant
suppliers. Since a sampling program would allow prospects to try the product and learn about its
benefits, Hormel would increase the likelihood of restaurants adopting the product.
Chapter 18: Personal Selling and Sales Promotion
ADDITIONAL HOMEWORK/CLASSROOM ACTIVITIES
The Face-to-Face Sales Process
Purpose: To give students a chance to practice face-to-face selling.
Estimated Class Time: About 20–25 minutes
Exercise: After you have covered the sales process, divide your class into pairs, and ask each
pair to choose one of the following situations for a “sales” presentation:
• Convincing your sister to lend you her truck for a ski trip with your friends
• Convincing your teacher to give you an A, when you really deserve a B
Give the class about 10 minutes to prepare their presentations. Remind them to consider each
stage of face-to-face selling, and give them license to fill in the details of their situation. Then,
direct each pair to make their case to another pair (this works if they present as a team or if they
Questions for Reflection:
• What part of the sales process is most important? Why?
• Which works better, a team presentation or an individual presentation? Why?
Consumer Sales Promotion
Purpose: To explore consumer promotion options.
Relationship to Text: Consumer-Oriented Sales Promotions
Chapter 18: Personal Selling and Sales Promotion
Estimated Class Time: About 20 minutes
Exercise: Break your class into small groups. Challenge each group to develop a creative
consumer sales promotion for the following businesses:
• Baskin-Robbins ice-cream store
• Jet Blue airline
• Fanta Cola
Direct students to create one piece of consumer communication for each sales promotion idea.
Encourage your class to think outside the box, to consider using options such as games,
Questions for Reflection:
• Does sales promotion make more sense for some product categories than for
others? Why?
• Can sales promotion ever be used to both generate short-term sales and build brand
image? How?
Ethics Exercise
You have been hired by a discount sporting-goods retailer for an over-the-counter sales
position. You have completed a training course that includes learning about the products,
assisting customers, and cross-selling. You have made several good friends in the training
Chapter 18: Personal Selling and Sales Promotion
Internet Exercise—Trade Shows
a. When and where is the CES held?
Note: The CES is held in Las Vegas, Nevada during the first week of January every year.
b. How many attended the most recent CES? How many firms and organizations had exhibits?
Chapter 18: Personal Selling and Sales Promotion
KEY TERMS
Personal selling: Person-to-person promotional presentation to a buyer.
Inbound telemarketing: Sales method in which prospects call a seller to obtain information,
make reservations, or purchase products.
Inside selling: The process of inbound sales management utilizing phone, mail, and the
Internet.
Prospecting: The process of identifying potential customers.
Qualifying: Determining whether the prospect meets certain criteria for making a purchase.
Approach: The initial contact with the prospective customer.
Precall planning: The process of conducting research and gathering information before a sales
call.
Presentation: Describing a product’s benefits and relating them to the customer’s problems or
needs.
Chapter 18: Personal Selling and Sales Promotion
Consumer-oriented sales promotions: Encourage repurchases by rewarding current users,
boosting sales of complementary products, and increasing impulse purchases.
Trade promotion: Sales promotion that appeals to distribution intermediaries rather than final
consumers.
Coupons: When consumer is offered discounts on the purchase price of goods and services at
retail outlets.
Rebates: When consumer is offered cash back for sending in proof of purchase.