Marketing Chapter 13
Sales promotion
Using short-term incentives to encourage customer purchasing, reseller support, and sales force efforts.
Product sales force structure
salespeople specialize in selling only a portion of the companys products or lines
Presentation
salesperson tells the "value story" to the buyer, showing how the company's offer solves the customer's problems
Territorial force structure
a sales force organization that assigns each salesperson to an exclusive territory in which that salesperson sells the companys full line
Free goods
extra cases of merch offered to reseller who buy a certain quantity or type of product
Premiums
goods offered either free or at low cost as an incentive
Prospecting
identifies qualified potential customers
Personal selling
- consists of interpersonal interactions with customers and prospects to make sales and maintain customer relationships - involves personal presentations by firm's sales force for purpose of engaging customers, making sales, and building customer relationships
What are the major steps in sales force management?
1. Designing sales force strategy and structure 2. recruiting and selecting salespeople 3. training salespeople 4. compensating salespeople 5. supervising salespeople 6. evaluating salespeople
Allowance
so much off per case in return for the retailers agreement to feature the manufacturers products in some way
Outside salespeople
travel to call on customers in the field.
Business promotions
used to generate business leads, stimulate purchases, reward customers, and motivate salespeople
Sales contests
used to motivate salespeople or dealers to increase their sales performance over given period
Advertising specialites
useful articles imprinted with advertiser name, given as gift
Complex forces structures
when a company sells a wide variety of products to many types of customers over a broad geographic area
Approach
when a salesperson meets customer for the first time
How are salespeople compensated?
Fixed amount: salary, stable income. Variable amount: commissions or bonuses based on sales performance, rewards the salesperson for greater effort and success. Expenses & fringe benefits: reimbursement.
Functions of a salesperson
Individual who represents a company to customers by performing one or more activities-prospecting, communicating, selling, servicing, information gathering, and relationship building.
Conventions and trade shows
are effective to reach many customers not reached with the regular sales force
Push money
cash or gifts to dealers to push the goods
Inside salespeople
conduct business from their offices via telephone, online and social media interactions, visits from buyers (also includes technical sales support and sales assistants).
Free specialty advertising
items that carry the company name (pens, memo pads, totes)
Preapproach
learns as much as possible about a prospective customer before making a sales call
Straight discount
off the list price on each case purchased during a stated period of time
Samples
offers a trial amount of product
Price packs
offers consumers savings off the regular price of product
Rebates
price reduction occurs after purchase
Selling process
prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow up
Customer or market sales force structures
salespeople specialize in selling only to certain customers or industries
Coupons
saves buyers money when they buy specific products
Closing
the sales step in which a salesperson asks the customer for an order
Follow-up
the sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business
Handling objections
the sales step in which a salesperson seeks out, clarifies, and overcomes any customer objections to buying
How are salespeople motivated?
to encourage salespeople to work hard and energetically toward sales force goals