Chapter 17 - Sales promotion and Personal selling

Point of Purchase Promotion

-Shelf talkers, POP displays, in-store ads, TV monitors -builders traffic...by advertising the product -Induce impulse buying

Consumer promotional elements

-short term to drive immediate purchase -arouse interest/purchase/trials -risk of competitors matching

A purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other is called _____________. a. personal selling b. promotional selling c. relationship selling d. sales promotion

A

A sales _____ is a written document or professional presentation that outlines how a company's product or service will meet or exceed the client's needs. a. proposal b. pitch c. portfolio d. record

A

Personal selling becomes more important as the _____. a. value of a product grows b. number of potential customers increases c. need for mass advertising increases d. complexity of a product decreases

A

Which of the following indicates the ability to place oneself in someone else's shoes—which enables salespeople to understand the client? a. Empathy b. Ego strength c. Assertiveness d. Risk takers

A

Disadvantages of relationship selling include: (Check all that apply) a. results in lower levels of customer satisfaction. b. higher cost per presentation than other forms of promotion. c. requires highly skilled and knowledgeable salespeople. d. difficulty in assessing the salesperson's performance.

B,C, D

Lewis, a salesperson at an automobile showroom, convinced one of his sales leads to buy the latest car in the showroom. Two weeks after the car was delivered to the buyer, Lewis calls the customer to check if he is satisfied with the car and his service. Upon hearing the satisfied reply, Lewis adds that he can be reached in case of any complaints in the future. In this case, Lewis is a. resolving his customer's complaint. b. closing the sale. c. following-up with his customer. d. handling objections from his customer.

C

Which of the following is an advantage of personal selling over other forms of promotion? a. It becomes more effective when the number of prospective customers is more. b. It is effectively directed toward prospective and non-prospective customers. c. It is considerably more effective in obtaining a sale and gaining a satisfied customer. d. It adds to the consistency of promotion by using the same sales message for each prospective customer.

C

Which of the following is correct about sales force training? a. Training does not take place in the field or by using online modules. b. It cannot occur during sales meetings, annual meetings, or during the course of everyday business. c. Conducting job training in the field via a live sales call provides real world experience for a trainee. d. It is done by giving compensation to employees.

C

An internal management philosophy under which a company customizes its product and service offering based on data generated through interactions between customers and the company is termed _____. a. family-centric b. profit-centric c. preference-centric d. customer-centric

d

Sandra recently took up the role of a senior sales manager at Luxe, a clothing brand. She wants to ensure that the sales force working under her supervision meets the sales targets. In this case, which of the following must Sandra do? a. Develop sales proposals b. Research her competitors c. Perform customer profiling d. Assign quotas to her team

d

Which of the following statements is true of the interaction between customers and an organization? a. Interactions do not happen when customers do not meet face-to-face with salespeople. b. With customer relationship management, the organization defines the terms of the interaction. c. Data gathered at touch points do not provide information that affects touch points inside a company. d. Any touch point a customer has with the organization constitutes an interaction.

d

Types of buyers

loyal customers competitor's customers brand switches price buyers

Sales promotion

marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase -targeting the ultimate consumer

Which of the following statements is true of cold calling? a. It refers to a process of determining potential clients from friends of customers. b. It is a process that describes the ''homework'' that must be done by a salesperson before he or she contacts a prospect. c. It is a process in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status. d. It refers to a recommendation from a customer or business associate.

C

Which of the following statements is true of relationship selling? a. It prioritizes making a one-time sale over providing value-added benefits to a buyer. b. It is more often used in selling situations for consumer goods than in selling situations for industrial-type goods. c. It results in loyal customers who purchase from the company time after time, often with an increased share-of-purchase. d. It persuades a buyer to accept a point of view or convinces the buyer to take some action.

C

Steps in the selling process

Generate Leads Qualify leads Probe Customer Needs Develop solutions Handle objections Close the sale Follow up

Selling process: Closing the sale

Getting the order Often most stressful part

Customer Relationship Management (CRM)

Identify customer relationships Understand interactions of the customer base Capture customer data Leverage customer information

Personal Selling

Your plans and ideas Investment in you area Yourself....in your job search

Which of the following statements is true of customer relationship management (CRM)? a. It involves developing relationships with customers through touch points and data mining. b. A CRM system follows a profit-centric approach. c. It was initially popularized as mass marketing. d. In a CRM system, an organization defines the terms of interaction between customers and the organization.

a

_____ involves monitoring and leveraging customer interactions to sell a company's products and to increase customer service. a. Campaign management b. Handling objections c. Customer profiling d. need profiling

a

A _____ is a statement of a salesperson's sales goals, usually based on sales volume. a. sales proposal b. quota c. referral d. touch point

b

Identify the statement which is correct about lead qualification. a. It refers to a process in which a salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status. b. It refers to determining the recognized need, buying power, and receptivity and accessibility of a sales prospect. c. It refers to a process that describes the ''homework'' that must be done by a salesperson before he or she contacts a prospect. d. It refers to using friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations to identify potential clients.

b

When recruiting a sales force, which of the following traits should sales managers look for in applicants? a. A transaction-oriented sales style b. A sense of urgency and competitiveness c. Being relationship oriented d. An overbearing attitude

b

Which of the following statements is true of loyalty programs? a. They lead to an increase in cost. b. They provide information about customers and shopping trends. c. They aim at achieving short-term results that benefit a company. d. They reward customers for making one-time purchases.

b

2 ways you asses a sales force

quantitative and behavioral

Which of the following statements is true of sales force training? a. It is not provided in a classroom environment. b. A trainee works in inside sales for an extended period of time before being given an outside territory to cover. c. Job training in the field via live sales calls is unsupervised by trainers as it will help trainees to solve problems on their own. d. Training in the field via a live sales call does not provide real world experience.

b

push money

trade sale promotion spending

Which of the following statements is a difference between relationship selling and personal selling? a. Relationship selling focuses on building mutual trust between a buyer and a seller, whereas personal selling methods attempt to persuade the buyer to accept a point of view. b. Relationship selling is a multistage process that emphasizes short-term results, whereas personal selling emphasizes long-term results. c. Relationship selling prioritizes making a one-time sale over providing value-added benefits to a buyer, whereas personal selling prioritizes empathy and satisfaction for customers. d. Relationship selling aims to achieve a win-lose outcome, whereas personal selling aims to achieve a win-win outcome.

A

Which of the following statements is an advantage of personal selling? a. The sales message can be varied according to the interests of each prospective customer. b. It provides a brief and less time-consuming explanation about a product. c. Cost per contact is much lesser than for mass forms of communication. d. Continual sales force management and training are unnecessary.

A

Which of the following statements is true of personal selling? a. It provides a detailed explanation or demonstration of the product. b. It should only be directed toward unqualified products or services. c. The cost per contact is much lesser than for mass forms of communication. d. It is less effective than other forms of promotion.

A

_____ is a process by which customer information is centralized and shared in order to enhance the relationship between customers and an organization. a. Knowledge management b. Negotiation c. Need profiling d. Customer profiling

A

_____ is the final step in the selling process, in which the salesperson ensures delivery schedules are met, goods or services perform as promised, and buyers' employees are properly trained to use the products. a. Sales follow-up b. Closing the sale c. Sales analysis d. Handling objections

A

______ is a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status. a. Cold calling b. Referral c. Network d. Lead qualification

A

Under which conditions would personal selling become more important than other forms of promotion? (Check all that apply) a. When the product is more complex. b. When the number of potential customers becomes larger. c. When customers are geographically dispersed. d. When the value of the product grows.

A &D

In regards to the sales force structure, organizing by market or industry can: (Check all that apply) a. can improve customer service. b. allow salespeople to become experts in their fields. c. encourage collaboration with other departments in the company. d. increase transactional, rather than relationship, selling.

A,B,C

Selling process: Generating leads

Advertising, publicity, direct mail/telemarketing, cold calling, Internet web site, referrals, networking, talent shows/conventions, company records

Key benefits to personal selling

Allows a/the message to be varied Allows detailed demonstrations of the product Can be focused toward qualified customers and costs can be controlled by adjusting the sales force on an individual basis It is far more effective at gaining sales and satisfying customers

Selling process: Handle objectives

Anticipate specific objections Investigate the objection with the customer Be aware of competitors' products Stay calm Use the objection to close the sale

Which of the following is a disadvantage of personal selling? a. The sales message cannot be modified according to the prospective customers. b. Continual sales force management and training are necessary. c. It is not effective for selling complex or new goods and services. d. It results in high and uncontrollable costs.

B

Which of the following statements is true of prospecting? a. It is a process that describes the ''homework'' that must be done by a salesperson before he or she contacts a prospect. b. It is the identification of those firms and people most likely to buy a seller's offerings. c. It is the determination of a customer's specific needs and wants and the range of options the customer has for satisfying them. d. It is the process in which the salesperson ensures that the delivery schedules are met.

B

The sales environment: a. remains the same. b. is always at the customer's place of business. c. is always at the salesperson's place of business. d. changes constantly.

D

Which of the following best defines a sales presentation? a. It is the portfolio of a company's product or service that they wish to market to a prospective client. b. It is directed toward creating a strong message that increases the recall value of a brand among its consumers. c. It is a written document that outlines how the company's product or service will meet or exceed the client's needs. d. It is a formal meeting in which a salesperson has the opportunity to deliver a sales proposal.

D

Which of the following is most likely to require personal selling? a. A popular line of shampoos from an established brand b. A range of cookware that is on sale in a retail store c. A new line of clothing for children by a famous designer d. A new type of medical imaging machine used in diagnosis

D

Which of the following is true of a customer profile? a. It negates the need to handle customer objections. b. It provides updates to a salesperson on economic downturns in the market. c. It negates the need to negotiate with a prospective buyer. d. It helps in developing and proposing solutions.

D

Which of the following refers to a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships? a. Stimulus-response selling b. Price-based selling c. Adaptive selling d. Relationship selling

D

Which of the following statements is a difference between advertising and personal selling? a. Advertising can provide guidance when a prospect has questions or raises objections, whereas a salesperson cannot provide a demonstration of a product. b. Advertising should be directed toward qualified prospects, whereas personal selling should be directed toward unqualified prospects. c. Advertising has a high cost per contact, whereas personal selling has a low cost per contact. d. Advertising can respond only to the questions and the objections that a copywriter thinks are important to customers, whereas salespeople can provide explanations to a prospect.

D

Which of the following statements is not true in regards to relationship selling? a. The salesperson and the customer work together to improve the customer's bottom line. b. The salesperson becomes a partner and problem solver for their customer, offering advice when needed. c. Relationship selling usually results in more loyal customers who purchase from the company time after time. d. Although it adds value, relationship selling is usually more expensive than having to prospect for and sell to new customers.

D

Which of the following statements is true of a business-to-business sales environment? a. It is an environment meant for the sale of services and not products. b. It requires consumers to come directly to a retail store. c. The sales process is less time-consuming in a business-focused environment than in a consumer-focused environment. d. Salespeople in a business-focused environment are required to travel more extensively than in a consumer-focused environment.

D

Selling process: Follow up

Develop relations through the firm Resolve issues gain trust

Coupons and rebates

Effective at: -encouraging product trials -increasing the amount bought Growth areas/trends -in-store coupons...drive impulse purchases -shortening coupon life (creates a sense of urgency) -online coupons growing -rebates allow database info

Forms of personal selling

Order getting Relationship/Consultative Selling Team based selling B2v versus B2C

5 Service quality dimensions

Reliability Responsiveness Assurance Empathy Tangibles

Trade Sales Promotion

Trade allowances Push money Training Free merchandise Store demonstration Conventions and trade shows

Sales management process

Sales plan implementation -sales force motivation and compensation (often motivated by different factors) :: straight salary compensation plan, straight commission compensation plan, combination compensation plan. Sales force evaluation and control -critical given the remote geographic locations -quantitative assessments -behavioral evaluation (long term impact) - customer satisfaction - support for new products - product knowledge

Trade sales promotion

activities targeting a marketing channel member, such as a wholesaler or retailer

trade allowance

agreement between manufacturer and whole saler .

Irwin, a life insurance agent, strictly follows the sales cycle to sell life insurance policies to prospective buyers. After identifying the people who are most likely to buy life insurance, he proceeds to determine if they need insurance. He also checks if these people are willing to see him and are accessible. In this scenario, Irwin is a. handling objections. b. developing and proposing solutions. c. qualifying sales leads. d. generating sales leads

c. qualifying sales leads.

Limitations to personal selling

cost per contact Inconsistent messaging customer buying unneeded items