Discuss how different forms of sales promotion can erode or build brand loyalty.

Question

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?
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?
3. Discuss the role of personal selling in promoting products. What advantages does personal selling offer over other forms of promotion?
4. 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?

Explanation / Answer

1)Show that you have 100% customer satisfaction and guarantee your product. Customers want confidence that they're getting the best and that you'll back them.

2)

Convey More Information

You can convey more information with personal selling than with other forms of promotion, like advertising. A personal sales call lasts longer than any ad. Therefore, you have time to discuss the intricacies of your product. Personal selling is particularly advantageous when working with products of higher value, according to the Reference for Business website. You will need to convince buyers more with more expensive items. Most companies use laptop presentations, demonstrations and highly detailed product information when selling items such as computers, medical equipment and industrial products. Pharmaceutical reps can also better discuss the biological effects and advantages of certain new drugs.

More Impact

Personal selling has a greater impact on buyers than advertising or direct mail. The customer does not have to wait to get his questions answered. He can learn what he needs to know right then and there. You as a seller also get a better feel for what the customer wants. You can suggest certain products if you have an extensive product line or tailor your services, such as consulting, to the client's particular needs. You also know what the customer's key objections are on each sell. For example, a customer may be satisfied with his current industrial adhesive tape supplier. They may sell their products for less. However, your company may sell adhesives that last longer and, therefore, cost less in the long run. Subsequently, you can address those key objections and make the sale.

3)

Sales promotion is an important component of a company's marketing communication strategy along with advertising, public relations, and personal selling. At its core, sales promotion is a marketing activity that adds to the basic value proposition behind a product (i.e., getting more for less) for a limited time in order to stimulate consumer purchasing, selling effectiveness, or the effort of the sales force. As this definition indicates, sales promotion may be directed either at end consumers or at selling intermediaries such as retailers or sales crews.

Sales promotion stems from the premise that any brand or service has an established perceived price or value, the "regular" price or some other reference value. Sales promotion is believed to change this accepted price-value relationship by increasing the value and/or lowering the price. Familiar examples of consumer sales promotion tools include contests and sweepstakes, branded give-away merchandise, bonus-size packaging, limited-time discounts, rebates, coupons, free trials, demonstrations, and point-accumulation systems.

Three issues clarify sales promotion. First, sales promotion ranks in importance with advertising and requires similar care in planning and strategy development. Second, three audiences can be targeted by sales promotion: consumers, resellers, and the sales force. And third, sales promotion as a competitive weapon provides an extra incentive for the target audience to purchase or support one brand over another. This last factor distinguishes sales promotion from other promotional mix tactics. For example, unplanned purchases may be directly related to one or more sales promotion offers

4)

Differences Between Traditional & Relationship Selling:

Differences Between Traditional & Relationship Selling Traditional Personal Selling Sell products (goods and services) Focus on closing sales Limited sales planning Spend most contact time telling customers about product Conduct

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