Flashcards in IMC Sales promotion Deck (28):
What are sales promotions?
Another tool of promotional mix. It should:
- influence consumer perception and behaviour
- *short-term* inducements -> Customers tend to not have emotional connection, but interested because of practicality
- is *incentive* based
e.g. opening sales, or coupons
What are the four things you need to consider for a sales promotion program?
Incentive, hurdle, time, evaluate
What's the incentive?
Discount, coupons, etc. This will create a purchase intent.
What is the hurdle?
Implicit cost of sales promotion. The company is sacrificing something for the discount e.g. discount.
Since they're not that nice, they create a hurdle for customers like liking and sharing on Facebook to increase awareness.
What is the time factor of sales promotion?
Basically just how long the sales promotion goes for. The time they choose depends on their goals and can be long term or short term e.g. christmas shopping can last a long time.
They might also just do it because of low profit to see if they can bump up their profit.
What is the 'evaluation' consideration of a sales program?
Checking whether the program has worked (achieving your planned goals in having a sales promotion).
What is the sales force?
It's a part of IMC that looks at the 'human' side of HMC e.g. salespeople
What can a sales force do?
- can create superior value
- inform + interact -> tell u info, how to use products, etc
- build relationships + brand *loyalty* -> they want to give you a personal experience to make the firm appear more 'human'. This is because we like considering other people's opinions.
- human factor makes u want to come back as the buying process feels personalised
Basically, if you were to humanise the firm, it'd be the sales force.
What is the relationship between customers and companies via a sales force?
A sales force connects a company with its customers and is essentially their representatives.
Besides linking customer and company, what else is the purpose of a sales force?
They coordinate marketing and sales. They drive the sales, and push the product to you (the consumer).
How do you choose a sales force?
Design strategy -> Recruitment + selection -> Training -> Compensation -> Supervision
In choosing a sales force, what is meant by designing a strategy?
How you want your sales force to be e.g. sales focused people who meets quotas, nice people who are friendly, etc.
What kind of human aspect do you want your sales force to embody? What do they stand for?
In choosing a sales force, what is involved in recruiting and selecting?
People who have good soft skills essentially. They should be proud to represent your brand and be loyal to it.
In choosing a sales force, what is the training process?
It involves teaching sales persons all the information they need to know in order to effectively market their products.
There's also rules and regulations that need to be taught e.g. dealers in casinos
In choosing a sales force, what is compensation?
Basically just how you pay them. Usually involves a percentage of how much they sell.
This is required to motivate your employees to do their work.
In choosing a sales force, why is supervision required?
To monitor whether employees are doing a good job.
In choosing a sales force, why is evaluation after hiring them for a period of time needed?
it's about the control aspect, the firm wants the sales force to meet the company's objectives. Can involve being fired or retraining, etc.
What is personal selling?
A one-on-one selling process part of the promotional mix. e.g. A sales rep approaching you to try and convince you into buying something.
What is the first stage of the personal selling process?
Prospecting -> Pre-approach -> Approach -> Presentation + demo
What is prospecting?
Part of the personal selling process where you scope out potential customers. You'd gauge their overall behaviour and determine whether they need help with something. You can't just approach everyone.
What is the 'pre-approach' of the personal selling process?
Involves analyzing the target customer after the prospecting stage (searching for 'prospects') and determining what type of help they may need in particular. For example, they may be focused on the specs and are unsure on whether they are good.
What do you do when approach a customer in personal selling?
Calibrating your confrontational behaviour based on the temperament of the customer e.g. super lost = act nice and friendly, or super confident = more specific about what they need.
Important because people may react negatively and shut you down with the wrong approach.
What is involved in presenting and demoing a product in the personal selling process?
Basically using or talking about the product, and showing what the product can do. It comes down to communicating INFORMATION to the customer so they consider whether to buy it or not. You might demonstrate to aid them in this,
What is the second stage of the personal selling process?
Handling objections -> Closing -> Follow up
What is involved in handling objections in the personal selling process?
Basically, if the customer has any kind of reservation to buying the product, you try and convince them back into the buying zone. You can try and address any concerns they have by bartering in various ways, like bundle discounts.
What is involved in closing in the personal selling process?
This just involves transaction of money and organising delivery, etc. You need to make sure you keep up with your promises e.g. discounts or else they can still withhold money.
What is involved in the follow-up of the personal buying process?
Includes handling any problems the customer has with their product whether they're returning it or having technicalities.
Can also include emailing about feedback on the buying experience, or following up after trial period has finished,