Student PowerPoint Slides for Chapter 14

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• Student PowerPoint Slides for Chapter 14
• Sales Promotion, Personal Selling,
• and Sales Management

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Trade Sales Promotions
Trade Promotions targeted to distribution
channel members such as wholesale distributors
and retailers.
1. Merchandising allowance 2. Case allowance 3.
Trade show 4. Promotional products 5. Incentive
programs (push money) 6. Point-of-purchase
displays 7. Cooperative advertising 8. Sales
training
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Consumer Sales Promotions
Consumer Promotions targeted to consumers.
1. Coupons 2. Price deals, refunds, rebates 3.
Frequency programs 4. Bonus packs 5.
Contests/Sweepstakes 6. Premiums 7. Sampling 8.
Point-of-purchase promotion 9. Product
placement 10. Cross-promotion
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Consumer Adoption Pyramid
Nearly 40 of new products fail. In order to be
successful, products must pass through each of
these stages. Notice the group size shrinks as
you move up the pyramid.
Confirmation
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Creative Selling Process
Follow-Up
Close
Handling Objections
Sales Presentation
Approach
Preapproach
Prospecting and Qualifying
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Sales Force Compensation/Rewards
1. Straight Commission 2. Commission-with-Draw 3.
Straight Salary 4. Quota-Bonus Plan 5. Sales
Contests 6. Benefits
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• Types of Salespeople
• Order Taker
• Order Getter
• Technical Specialist
• Missionary Salesperson
• New-Business Salesperson

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• Student PowerPoint Slides for Chapter 15
• Creating Value Through Supply Chain Management

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• Supply Chain Management
• Objectives of a Supply Chain System
• 1. Customer Service
• Unlike what ultimate customers expect, customer
  service in the supply chain system includes more
  rational elements such as delivering the goods
  and services as contracted in the right quantity
  and quality.
• 2. Cost Control
• The Total Cost Concept posits that the objective
  of the system should be to minimize the total
  cost of distribution. Trying to minimize each
  individual cost of distribution results in an
  increase in the overall cost.

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• General Functions of a Supply Chain System
• 1. Transactional
• All the functions related to buying and selling
  the product.
• 2. Logistical
• All the functions related to transportation and
  storage of the product.
• 3. Facilitating
• All the functions that support the above two
  functions including information gathering,
  promotion, financing, etc.
• In other words, the functions include buying,
  selling, risk taking, financing, promotion, order
  processing, transportation, storage, warehousing,
  inventory control, documentation, etc.

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• The E-Supply Chain
• With the advent of the Internet, marketers have a
  choice of utilizing the traditional physical
  channels (brick only), e-channels (click only) or
  dual channels (brick click). While some
  marketers use brick only channels (ex. SMEs) or
  click only channels (Amazon.com), many have
  settled for a dual channel system (ex. Wal-Mart).
  
• While some use dual channels for promotion, sales
  and distribution of their products/services,
  others are confined to promotion and service via
  the e-channel of their products sold through
  physical channels. For instance, automotive
  companies use their websites to drive traffic to
  their brick sites (dealerships).
• Comparison between various channels of
  distribution reveal that e-channels have the
  lowest cost-per-transaction and low value added
  service. On the other hand, traditional physical
  channels that include salespersons have the
  highest cost-per- transaction and the highest
  value added service.

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Dual Channel Complementary 1
Honda
Dealership
Advertising
Honda.com
In this case, Hondas Website provides vehicle
and dealer information and directs customers to
the nearest dealer.
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Dual Channel Complementary 2
Sony
Best Buy
Advertising
Sony.com
In this case, Sony sells certain
products/services through Best Buy and others
through its own Website.
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Dual Channel Competing 1
Prentice Hall
USA Bookstore
PrenHall.com
In this case, book publisher Prentice Hall sells
books via university book stores and also via
their own Website.
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Dual Channel (Retailer) Competing 2
Supercenters
Wal-Mart Stores, Inc.
Walmart.com
In this case, retailer Wal-Mart sells certain
products thru competing channels while others
thru a single channel.
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• Determinants in Channel Selection
• 1. Company and marketing objectives
• 2. Nature of the consumer
• 3. Nature of the product
• 4. Nature of the competition
• 5. Nature and role of the intermediaries
• 6. Financial / cost considerations
• 7. Local customs and culture
• 8. Control considerations
• 9. Single vs. combination of modes of
  transportation

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• Types of distribution arrangements /
• Width of the supply chain

Retailer
Manufacturer
Exclusive distribution Only one
distributor/retailer sells the product in a
geographical area.
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• Types of distribution arrangements/
• Width of the supply chain

Retailer
Manufacturer
Retailer
Selective distribution A few number of
distributors or retailers sell the product in the
area.
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• Types of distribution arrangements /
• Width of the supply chain

Retailer
Retailer
Manufacturer
Retailer
Retailer
Retailer
Intensive distribution A large number of
retailers or all possible retailers sell the
product.
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• Some Issues in Distribution
• 1. Slotting fees
• 2. Legal and ethical issues
• Exclusive dealing
• Tying agreements
• 3. Wheel of retailing
• 4. Channel conflict and power
• Era of Wal-Mart and other big-box chain stores
• 5. Choice of the modes of transportation
• Multi-modal transportation

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• Power in the Channel
• In the era of Wal-Mart's dominance and the
  influence of the Internet on retailing, it is
  interesting to consider which channel member(s)
  is/are powerful and how the power is being
  utilized.
• 1. Reward power The ability of one member to
  provide financial or other type rewards to others
  for compliance.
• 2. Coercive power The ability of one member to
  punish others through various means for
  non-compliance.
• 3. Legitimate power This is based on the notion
  that one member has the right to influence others
  and that others should accept it.
• 4. Referent power The power derived by one
  member by identifying with another.
• 5. Expert power The power based on the
  perception that one member has expertise or
  special knowledge.

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Choice of the Modes of Transportation
Vs.
Vs.
In many instances, the decision on the choice of
modes is not whether to utilize truck vs. trains
or container ships vs. air cargo, but which
combinations of modes (multi-modal) is the
optimum.