marketing chapter 13

what is a salesperson

An individual who represents a company to customers by performing one or more of the following activities: Prospecting, communicating, selling, servicing, information gathering, and relationship building.

are coupons or price packs more effective at stimulating short run sales

price packs are more effective.

what are call reports

salespeople write up their own completed activities on call reports and turn in expense reports for which they are wholly reimbursed

what promotion tools do manufactures use

-straight discount off the list price on each case purchased during a stated period of time (price-off, off-invoice, off-list) -allowance in return for the retailer's agreement to feature the manufacturer's products in the same way -manufacturers might offer free goods(extra merchandise) -might offer push money -free specialty advertising items that carry the company name

social selling

-using online, mobile, and social media to engage customers, build stronger customer relationships, and augment sales performance -the fastest growing sales trend. -doesnt change the fundamentals of selling

how can prospects be qualified

. Prospects can be qualified by looking at their financial ability, volume of businesses, special needs, locations, and possibilities for growth.

what are sales force automated systems

Computerized, digitized sales force operations that let salespeople work more effectively anytime, anywhere.

what is event marketing (event sponsorship)

Creating a brand-marketing event or serving as a sole or participating sponsor of events created by others. -might be the fastest growing area of promotion -ex: Red Bull hosts hundreds of events each year in dozens of sports around the world, designed to bring the high-octane world of red bull to its community of enthusiasts.

contests, sweepstakes, and games

Give consumers the change to win something. A contest calls for consumers to submit an entry to be judged by a panel that will select the best entries. A sweepstakes calls for consumers to submit their names for a drawing. A game presents consumers with something, every time they buy, which may or may not help them win a prize.

how to develop a sales promotion program

In developing a sales promotion program, a company must first set its sales promotion objectives and then select the best tools for accomplishing these objectives.

what are objectives for trade promotions

Include getting retailers to carry new items and more inventory, buy ahead, or promote the company's products and give them more shelf space.

who are the sales assistants

Provide research and administrative backup for outside salespeople. They track down sales leads, call ahead and confirm appointments, follow up on deliveries, and answer customers' questions when outside salespeople cannot be reached

who are the technological sales support people

Provide technical information and answers to customers' questions.

what are trade promotions

Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers. -Shelf space is so scarce these days that manufacturers often have to offer price-offs, allowances, buy-back guarantees, or free goods to retailers and wholesalers to get products on the shelf and, once there, to keep them on it.

what is sales contest

a contest for salespeople or dealers to motivate them to increase their sales performance over a given period. -sales contests work best when they are tied to measurable and achievable sales objectives (such as finding new accounts, reviving old counts, or increasing account profitability

what is a job that is dying out because of technology

account-maintenance role

sales force management

analyzing, planning, implementing, and controlling sales force activities -It includes designing sales force strategy and structure as well as recruiting, selecting, training, compensating, supervising, and evaluating the firm's salespeople.

what is cold calling

as a last resort when salespeople drop in unannounced at various offices

what is push money

cash or gifts that manufacturers pay to dealers or their sales force to push the manufacturer's goods

what are coupons

certificates that save buyers money when they purchase specific products

what is value selling

demonstrating and delivering superior customer value and capturing a return on that value that is fair for both the customer and the company

what is the organizational climate

describes the feelings that salespeople have about their opportunities, value, and rewards for a good performance

sales meetings

provide social occasions, breaks from routine, chances to meet and talk with "company brass" and opportunities to air feelings and identify with a larger group.

what is the best source for finding their own sales

referrals

do manufacturers direct more sales promotion dollars to retailers and wholesalers or final consumers?

retailers and wholesalers

what are business promotions

sales promotion tools used to generate leads, stimulate purchases, reward customers, and motivate salespeople

what are sales quotes

sales quotas are a way for many companies to motivate their sales people. This is a standard that states the amount a salesperson should sell and how sales should be divided among the company's products.

what is a territorial sales force structure

a sales force organization that assigns each salesperson to an exclusive geographic territory in which the salesperson sells the company's fun line -used in cases when the company sells only none product line to one industry with customers in many locations -this organization clearly defines each salesperson's job and fixed accountability -can increase the salesperson's desire to build local customer relationships that, in turn, improve selling effectiveness -because each salesperson travels within a limited geographic area, travel expenses are small

point of purchase promotions (POP)

include displays and demonstrations that take place at the point of sale

are inside sales positions or outside sales positions growing faster?

inside sales positions are growing 300 times faster

what is sales promotion

short term incentives to encourage the purchase or sale of a product or service. -Whereas advertising offers reasons to buy a product or service, sales promotion offers reasons to buy now -Rather than creating only short-term sales or temporary brand switching, sales promotions should help to reinforce the product's position and build long-term customer relationships.

what are sales reports

the most important source of information on salespeople that management uses to evaluate -they include weekly or monthly work plans and long term territory marketing plans

what is the approach

the sales step in which a salesperson meets the customer for the first time (In person or online) -this step involves the sales persons appearance, opening lines, and follow-up remarks -the opening line should be positive -the opening line should be followed by some questions to learn more about the customers needs or by showing a display or sample to attract attention and curiosity

what is the presentation

the sales step in which a salesperson tells the "value story" to the buyer, showing how the company's offer solves the customer's problems

what are some factors that have contributed to the rapid growth of sales promotion

-First, inside the company, product managers face greater pressures to increase current sales, and they view promotion as an effective short-run sales tool. -Second, externally, the company faces more competition, and competing brands are less differentiated. Increasingly, competitors are using sales promotion to help differentiate their offers. -Third, advertising efficiency has declined because of rising costs, media clutter, and legal restraints. -Finally, consumers have become more deal oriented.

how are some manufacturers trying to find ways to raise above the promotion clutter?

-Manufacturers are trying to find ways to rise above the clutter, such as offering larger coupon values, creating more dramatic point-of-purchase displays, or delivering promotions through new digital media- such as internet and mobile phones.

what do most salespeople spend the most of their time doing

-Most salespeople spend much of their time maintaining existing accounts and building long-term customer relationships.

what is personal selling

-Personal presentations by the firm's sales force for the purpose of engaging customers, making sales, and building customer relationships. -Example: Boeing

what are pitfalls of team selling

-Salespeople are competitive, might be difficult to work with/trust others. Selling teams can confuse or overwhelm customers who are used to working with only one salesperson. -Difficulties in evaluating individual contributions to the team-selling effort can create some sticky compensation issues.

inside sales force

-Salespeople who conduct business from their offices via telephone, online and social media interactions, or visit from buyers. -The use of inside sales has increase over the years due to increase outside selling costs and the surge in online, mobile, and social media technologies

what is the customer (or market) sales force structure

- A sales force organization in which salespeople specialize in selling only to certain customers or industries. •Separate sales forces may be set up for different industries, serving customers versus finding new ones. •Many companies even have special sales forces to handle the needs of individual large customers.

how to recruit salespeople

-A company should analyze the sales job itself and the characteristics of its most successful salespeople to identify the traits needed by a successful salesperson in their industry. -The HR department looks for applicants by getting names from current salespeople, using employment agencies, searching the internet, and online social media, posting ads and notices on tis web site and industry medi, and working through college placement services. -Another source is to attract top salespeople from other companies. -Many companies give formal tests to sales applicants. Tests typically measure sales aptitude, analytical and organizational skills, personality traits, and other characteristics. But test scores only provide one piece of information in a set that includes personal characteristics, references, past employment history, and interviewer reactions.

compensation consists of 4 elements. what are they?

-A fixed amount-usually the salary, gives the salesperson some stable income -A variable amount- might be commissions or bonuses based on sales performance, rewards salesperson for greater effort and success. -Expenses -Fringe benefits

what are some closing techniques that salespeople might use

-They can ask for the order -Review points of agreement -Offer to help write up the order -Ask whether the buyer wants this model or that one -Note that the buyer will lose out if the order is not places now -The salesperson may offer the buyer special reasons to close, such as lower price, an extra quantity at no charge, or additional services.

what is promotion clutter

-caused by the growing use in sales promotion

complex sales force structure

-combines several types of organizations -use when a company sells a wide variety of products to many types of customers over a brand geographic area -Salespeople can be specialized by customer and territory product and territory; product and customer; or territory, product, and customer.

who are sales promotion tools targeted towards

-final buyers (consumer promotions) -retaielrs and wholesalers (trade promotions) -business customers (business promotions) -members of the sales force (sales force promotions)

what is the customer solution approach

-fits better with today's relationship marketing focus than does a hard to sell or glad-handling approach -The qualities that customers value most include good listening, empathy, honesty, dependability, thoroughness, and follow-through.

what are premiums

-goods offered either free or at low cost as an incentive to buy a product, ranging from toys included with kids' products or phone cards and DVDs -ex: McDonalds toys in food

research by the Gallup consulting firm suggest that the best salespeople possess four key elements. what are they?

-intrinsic motivato -a disciplined work style -the ability to close a sale -the ability to build relationships with customers (most important)

what are the drawbacks of social selling

-it is not cheap -such systems can intimidate low-tech salespeople or clients -there are some things that you can't present or teach vie the internet- things that require personal engagement and interaction. -For these reasons, some high-tech experts recommend that sales executives use online and social media technologies to spot opportunities, provide information, maintain customer contact, and make preliminary client sales presentations but resort to old-fashioned, face-to-face meetings when the time draws near to close a big deal.

what are samples

-offers a trial amount of the product -most effective but also most expensive

what are some closing signals from buyers

-physical actions -comments -questions -ex: a customer might sit forward and nod approvingly or ask about prices and credit terms

what are consumer promotions

-sales promotions used to boost short-term customer buying and engagement or enhance long-term customer relationships. •Include a wide range of tools- from samples, coupons, refunds, premiums, and point-of-purchase displays to contests, sweepstakes, and event sponsors.

what are some tactics for supervising salespeople

1. one tool is the weekly, monthly, or annual "call plan" that shows which customers and prospects to call on and which activities to carry out 2. "time-and-duty analysis" 3. Sales force automated systems

ecohub

: Enterprise-software company SAP, which six years ago set up EcoHub, its own onine, community-powered social media and mobile marketplace consisting of customers, SAP software experts, partners, and almost anyone else who wanted to join. EcoHub also let users rate and share the solutions and advice they got from other community members. Doesn't replace SAP's or its salespeople, instead, it extends their reach and effectiveness. Its real value is the flood of sales it creates for the SAP and partner sales forces. -All this suggests is that B-to-B selling isn't dying, it's just changing.

what its he product sales force structure

A sales force organization in which salespeople specialize in selling only a portion of the company's products or lines. -used if a company sells many products to many types of customers. -product specialization is requires (within this infrastructure, the company has separate sales forces for aviation, energy, transportation, and water processing products and technologies.

what is prospecting

Thes ales step in which a salesperson or company identifies qualified potential customers

what are companies doing instead of commissioned based salaries

Instead, these companies are designing compensation plans that reward salespeople for building customer relationships and growing the long-run value of each customer. -If the company must reduce its compensation expenses, rather than making across-the-board cuts, companies should continue to pay top performers well while turning loose low performers.

outside sales force (or field sales force)

Salespeople who travel to call on customers in the field

what does the closing entail

The sales step in which a salesperson asks the customer for an order

what happens during the follow up

The sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business. •Right after closing, the salesperson should complete any details on delivery time, purchase terms, and other matters. •-The salesperson then should schedule a follow-up call after the buyer receives the initial order to make sure proper installation, instruction, and servicing occur. •This visit would reveal any problems, assure the buyer of the salesperson's interest, and reduce any buyer concerns that might have arisen since the stale.

what is the pre-approach

The sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call -begins with good research and preparation -The salesperson can consult standard industry and online sources, acquaintances, and others to learn about the company. He or she can scour the prospect's web/social media sites. -the sales person should set call objectives -another task is to determine the best approach -The ideal timing should be considered carefully -The salesperson should give thought to an overall sales strategy for the account

what is the handling objections phase of the selling process

The sales step in which a salesperson seeks out, clarifies, and overcomes any customer objections to buying. -in handling objections, the salesperson should use a positive approach, seek out hidden objections, ask the buyer to clarify any objections, take objections as opportunities to provide more information, and turn the objections into reasons for buying

what is the selling process

The steps that salespeople follow when selling, which include prospecting and qualifying, pre-approach, approach, presentation and demonstration, handling objections, closing, and follow-up.

why are many companies moving away from high-commission based salaries

They worry that the sales person who is pushing too hard to close a deal might ruin the customer relationship

what is team selling

Using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts -ex: • Some companies such as IBM and P&G have used teams for a long time. P&G sales reps are organized into Customer Business Development (CBD) teas. Each CBD team is assigned to a major P&G customer, such as Walmart, Safeway, or CVS Health. The CBD organization places the focus on serving the complete needs for each major customer. It lets P&G "grow business by working as a "strategic partner" with out accounts", not just as a supplier.

what are rebates (cash refunds)

they are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet -The customer sends proof of purchase to the manufacturer, who then refunds part of the purchase price by mail.

what are price packs (cents-off deals)

they offer consumers savings off the regular price of the product. The producer market he reduced prices directly on the label or package. Price packages can be single packages sold to a reduced price (such as 2 for the price of 1) or two related products banded together (such as toothbrush and toothpaste)

what is the goal of motivation

to encourage salespeople to work hard and energetically towards sales force goals.

what is the goal of supervisors

to help salespeople "work smart" by doing the right things in the right ways.

what are consumer promotions used for

to urge short-term customer buying or boost customer-brand engagement.

what are advertising specialities (aka promotional products)

useful articles imprinted with an advertiser's name, logo, or message that are given as gifts to customers

what is the workload approach

using this approach, a company first groups accounts into different classes according to size, account status, or other factors related to the amount of effort required to maintain the account. It then determines the number of salespeople needed to call on each class of accounts the desired number of times. -The company might think as follows: suppose we have 1,000 A-level accounts and 2,000 B-level accounts. A-level accounts require 36 calls per year, and B-level accounts require 12 calls per year. In this case, the salesforce workload- the number of calls it must make per year- is 60,000 calls (1,000 X 36) + (2,000 X 12)=36,000 + 24,000=60,000. Suppose our average salesperson can make 1,000 calls a year, Thus, we need 60 salespeople (60,000/ 1,000)

what is virtual instructor-led training (VILT)

using this method, a small group of salespeople at remote locations logs on to an online conferencing site, where a sales instructor leads training sessions using online video, audio, and interactive learning tools. Ex: Bayer HealthCare Pharmaceuticals' role-playing video game- Rep Race- helped improve sales rep effectiveness by 20 percent

what is the result of equipping sales people with technology

• The result of equipping them with technology is better time management, improved customer service, lower sales cost, and higher sales performance.

what action can companies take to help bring its marketing and sales functions together

•At the most basic level, it can increase communications between the two groups by arranging joint meetings and spelling out communication channels. •Brand managers and researchers can tag along on sales calls or sit in on sales planning sessions. •A company can also create joint objectives and reward systems for sales and marketing teams or appoint marketing-sales liaisons- people from marketing who "live with the sales force" and help coordinate marketing and sales force programs and efforts. •Finally, it can appoint a high-level marketing executive to oversee both marketing and sales. Such a person can help infuse marketing and sales with the common goal of creating values for customers to capture value in return

inside sales rep vs. outside sales rep

•The inside rep provides daily access and support, whereas the outside rep provides face-to-face collaboration and relationship building.