SLAES PROMOTION MBA II SEM : MARKETING MANAGEMENT

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

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

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.

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

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.

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 keptfor 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.

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.

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.

Sales Promotion Tools
 The two types of sales promotion tools consumer are
as follows:
 A. Consumer-oriented Promotion Tools
 B. Trade-oriented Sales Promotion.

Consumer-oriented Promotion Tools
 1. Free samples
 2. Coupons
 3. Exchange scheme
 4. Discounts
 5. Premium offers
 6. Personality
promotions
 7. Installment sales

Trade-oriented Sales Promotion:
 1. Cash bonuses:
 2. Stock return:
 3. Credit terms:
 4. Dealer conferences:
 5. Dealer trophies:
 6. Push incentives:

 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.

 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.

 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.

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. "

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.

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.

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”

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.

Features Of Personal Selling
 Personal Form
 Development of Relationship
 Conversation
 Quick solution of Queries
 Receipt of Additional Information
 Real Sale

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.

 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.

 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.

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

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

Approaching The Prospect
HOW DO WE MAKE THE
INITIAL CONTACT & BUILD
RAPPORT
There is only one
time to make a first
impression

Making The Sales
Presentation
 Using Persuasive communication
 Hold Attention
 Stimulate Interest
 Desire
 “Tell the product’s story”

Handling Objections
 Questions
 Reservations
 Understand Concern
 Counterarguments
 Acknowledge concern
 Clues to process

Closing the Sale
 Closing signals
 Trial close
 Asking the prospect to buy
Following Up
 Commitments met
 Shipment
 Performance
 Reinforce L-R relationship
 Satisfied customers rebuy & recommend

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

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.

SLAES PROMOTION MBA II SEM : MARKETING MANAGEMENT

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.

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.

 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.

 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.

SLAES PROMOTION MBA II SEM : MARKETING MANAGEMENT

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SLAES PROMOTION MBA II SEM : MARKETING MANAGEMENT