MRKT 341: Test 4 (Final) Simon

Major Steps in Sales Force Management

1. Designing a strategy 2. Recruiting 3. Training 4. Compensating 5. Supervising 6. Evaluating

Joint Ownership

A cooperative venture in which a company creates a local business with investors in a foreign market who share ownership control. Ex: Chrysler's parent company, Fiat, recently formed a 50/50 joint venture with Chinese state-run Guangzhou Automobile Group to produce Jeep vehicles in China.

Global Firm

A firm that by operating in more than one country, gains R&D, production, marketing, and financial advantages in its cost and reputation that are not available to purely domestic competitors. Ex: U.S. based Otis Elevator, the world's largest elevator maker, is headquartered in Farmington, Connecticut. However, it offers products in more than 200 countries and achieves 82 percent of its sales from outside the United States.

Communication of Adaptation

A global communication strategy of fully adapting advertising messages to local markets. Ex: Western ads for Unilever toothpaste brands might emphasize whiter teeth, fresher breath, or greater sex appeal, its ads in Africa take a more educational approach emphasizing healthy teeth.

Economic Community

A group of nations organized to work toward common goals in the regulation of international trade. Ex: European Union sets out to create a single European market by reducing barriers to the free flow of products, services, finances, and labor among member countries and developing policies on trade with nonmember nations.

Contract Manufacturing

A joint venture in which a company contracts with manufacturers in a foreign market to produce its product or or provide its service. Ex: Sears used this method in opening up department stores in Mexico and Spain, where it found qualified local manufacturers to produce many of the products it sells.

Management Contracting

A joint venture in which the domestic firm supplies the management know how to a foreign company that supplies the capital; the domestic firm exports management services rather than products. Ex: Hilton uses this arrangement in managing hotels around the world. The hotel chain operates DoubleTree by Hilton hotels in countries ranging from the UK and Italy to Peru and Costa Rica, to China, Russia, and Tanzania.

Environmental Sustainability

A management approach that involves developing strategies that both sustain the environment and produce profits for the company. Ex: Nike makes shoes out of "environmentally preferred materials," recycles old sneakers, and educates people about conservation, reuse, and recycling.

Excessive mark-ups

A pill that costs 5 cents to make often costs $2 to the customer. Pharmaceutical companies argue that these markups have to help to cover future and past R&D.

Sense of Mission Marketing

A principle of sustainable marketing holding that a company should define its mission in broad social terms rather than narrow product terms. Ex: Apparel makers such as Nukleus are driven by the vision of offering fashion that is safe for the world we live in, rather than focusing just on sales and profits.

Societal Marketing

A principle of sustainable marketing holding that a company should make marketing decisions by considering consumers wants.

Consumer value marketing

A principle of sustainable marketing holding that a company should put most of its resources into customer value-building marketing investments.

Consumer-oriented Marketing

A principle of sustainable marketing holding that a company should view and organize its marketing activities from the consumer's point of view.

Innovative Marketing

A principle of sustainable marketing that requires a company to seek real product and marketing improvements. Ex: New products, such as the Nike FuelBand and Flyknit Racer, along with its innovative social media marketing efforts, recently earned Nike the title of Fast Company's number one most innovative marketer.

Product Sales Force Structure

A sales force organization in which salespeople specialize in selling only a portion of the company's products or lines. Ex: GE employs different sales forces within different product and divisions of its major businesses.

Customer (or market) Sales Force Structure

A sales force organization in which salespeople specialize in selling only to certain customers or industries. Ex: Appliance maker Whirlpool assigns individual teams of salespeople to big retail customers such as Sears, Lowe's, Best Buy and Home Depot.

Territorial Sales Force Structure

A sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company's full line. Ex: Individual territory sales reps may report to area managers, who in turn report to regional managers who report to a director of sales.

Sales Quota

A standard that states the amount a salesperson should sell and how sales should be divided among the company's products.

Marketing Website

A website that interacts with consumers to move them closer to direct purchase or other marketing outcome. Ex: Once a potential customer clicks onto the MINI website, the car maker wastes no time trying to turn the inquiry into a sale, and then into a long-term relationship.

Branded Community Website

A website that presents brand content that engages consumers and creates customer community around a brand. Ex: ESPN - You can't buy anything at ESPN.com. Instead, the site creates a vast branded sports community. PowerPoint Example: -Xbox and Playstation

Product adaptation

Adapting a product to meet local conditions or wants in foreign markets. Ex: The European and U.S. versions of the Fiat 500 look pretty much alike. But to meet the preferences of the U.S. buyers, Fiat adopted the car's interior from stem to stern, including an enlarged pod of bigger cup holders that are so important to Americans.

Online Advertising

Advertising that appears while consumers are browsing online including display ads, search related ads, online classifieds, and other forms. Ex: Gatorade's online "takeover" ad lasts only a few seconds but delivers a major impact.

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.

Adapted Global Marketing

An international marketing approach that adjusts the marketing strategy and mix elements to each international target market which creates more costs but hopefully produces a larger market share and return. Ex: McDonald's France uses the power of its global brand and operating model but has redefined itself as a French company that adapts to the needs and preferences of French consumers.

Standardized Global Marketing

An international marketing strategy that basically uses the same marketing strategy and mix in all of the company's international markets.

Consumerism

An organized movement of citizens and government agencies designed to improve the rights and power of buyers and in relation to sellers. Ex: The true cost per unit of a brand (unit pricing). The right to be informed includes the right to know the true interest on a loan (truth in lending).

Environmentalism

An organized movement of concerned citizens, businesses and government agencies designed to protect and improve people's current and future living environment.

Sales force Management

Analyzing, planning, implementing and controlling sales force activities.

Emerging Economies

BRIC countries: Brazil, Russia, India, and China

Corporate Marketing Ethics Policies

Broad guidelines that everyone in the organization must follow.

Cultural Pollution

Commercials interrupt serious programs; pages of ads obscure magazines; billboards block beautiful scenery; spam fills our e-mailboxes; flashing display ads intrude on our online and mobile screens.

Perceived Obsolescence

Continually changing consumer concepts of acceptable styles to encourage more and earlier buying. Ex: Changing clothing fashions

Event Marketing

Creating a brand-marketing event or serving as a sole or participating sponsor of events created by others. 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.

Product Invention

Creating new products or services for foreign markets. Ex: Ford developed the economical, low-priced Figo model especially for entry-level consumers in India; GM created the inexpensive Baojun for China.

Whole-channel View

Designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network. Ex: While large-scale retail chains dominate the U.S. scene, most of the retailing in other countries is done by small, independent retailers. PowerPoint Example: -In the U.S. Coca-Cola distributes products through sophisticated retail channels. In less-developed countries it delivers using everything from push carts to deliver donkeys.

Catalog Marketing

Direct marketing through print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online.

Direct-Response Television (DRTV) Marketing

Directing marketing via television, including direct-response television advertising (or infomercials) and interactive television (iTV) advertising. Ex: Yell-and-Sell TV pitchmen like Anthony Sullivan and Vince Offer have racked up billions of dollars in sales of "As Seen on TV" products.

Redlining (Underserved Consumers)

Drawing a red line around disadvantaged neighborhoods and avoiding placing stores there. Ex: As a result of redlining, many low-income consumers find themselves in food deserts, which are awash with small markets offering frozen pizzas, Cheetos, Moon Pies, and Cokes.

Direct and Digital Marketing

Engaging directly with carefully targeted individual consumers and customer communities to both obtain and immediate response and build lasting customer relationships. Ex: Amazon.com interacts directly with customers via its Website or mobile app to help them discover and buy almost anything and everything online.

Direct Investment

Entering a foreign market by developing foreign-based assembly or manufacturing facilities. Ex: Ford has made direct investments in several Asian countries, including India, China, and Thailand. It built its second facility in India, a 1 billion state of the art manufacturing and engineering plant that will produce 240,000 cars a year.

Joint Venturing

Entering foreign markets by joining with foreign companies to produce or market a product or service.

Exporting

Entering foreign markets by selling goods produced in the company's home country often with little modification.

Licensing

Entering foreign markets through developing an agreement with licensee in the foreign market. Ex: Coca-Cola markets internationally by licensing bottlers around the world and supplying them with the syrup needed to produce the product. Ex: In Japan, Budweiser is brewed from Kirin breweries.

Kiosk Marketing

Ex: Redbox, Airport check-ins

Deceptive Packaging

Exaggerating package contents through subtle design, using misleading labeling, or describing size in misleading terms.

Materialism

Giving consumers the perception of always wanting more "stuff."

Tariffs

Government taxes on certain imported goods

Social Media

Independent and commercial online communities where people congregate, socialize and exchange views and information. Ex: At Dogster, 700,000 members set up profiles of their four-legged friends, read doggy diaries, or just give a dog a bone.

Exchange Controls

Limit the amount of foreign exchange and the exchange rate against other countries.

Harmful Products

Many critics blame the plentiful supply of sugar-laden, high-calorie soft drinks for the nation's rapidly growing obesity epidemic.

Straight Product Extension

Marketing a product in a foreign market without making any changes to the product. Ex: Apple iPads, Gillette razors, Black & Decker tools, and even 7-11 Slurpees are all sold successfully in about the same form around the world.

Multi-channel Marketing

Marketing both through stores and other traditional offline channels and through digital, online, social media, and mobile channels. Ex: More than 43 percent of Staples' sales come from its online marketing operations, including its Website and mobile app, its presence on social media, and its own Staples.com community.

Mobile Marketing

Marketing messages, promotions, and other content delivered to on-the-go consumers through mobile phones, smartphones, tablets and other mobile devices. Ex: Macy's recent "Brazil: A Magical Journey" promotion, built around a popular and imaginative smartphone app, enriched the customer shopping experience while stimulating buying.

Direct-mail marketing

Marketing that occurs by sending an offer, announcement, reminder, or other item directly to a person at a particular address. Ex: Insurance companies like Farmers Insurance rely heavily on TV advertising to establish broad customer awareness. However, they also use lots of good old direct mail to communicate with consumers in a more direct and personalized way. PowerPoint Example: -Pizza hut sending an offer, my cable company sending a promotion of a new cable package.

Online Marketing

Marketing via the internet using company websites, online ads and promotions, email, video, and blogs.

Marketing Criticism: High advertising and promotion cost

Markt up prices in order to pay for expensive ad campaigns and marketing efforts, to increase sales of the now higher priced products. Ex: Price differences in brand name vs. non-branded products -One-a-day vitamins vs. the Walmart brand

Raw Material Exporting Economies

Much of their revenue comes from exporting natural resources. Ex: Chile has tin and copper

Blogs

Online journals where people and companies post their thoughts and other content usually related to narrowly defined topics. Ex: On the Netflix Blog, members of the Netflix team tell about the latest Netflix features, share tricks for getting the most out of the Netflix experience, and collect feedback from subscribers.

Personal Selling

Personal presentations by the firm's sales force for the purpose of making sales and building customer relationships.

Deceptive Pricing

Practices such as falsely advertising "factory" or "wholesale" prices or a large price reduction from a phony high retail list price.

Deceptive promotion

Practices such as misrepresenting the product's features or performance or luring customers to the store for a bargain that is out of stock.

Too few social goods

Private products causes a need for public products. Ex: The automobile market spurred the need for the government to make roads and highways.

Desirable Products

Products that give both high immediate satisfaction and high long run benefits. Ex: Tasty and nutritious breakfast food PowerPoint Example: House

Pleasing Products

Products that give high immediate satisfaction but may hurt consumers in the long run. Ex: Cigarettes and Junk food PowerPoint Example: Movie ticket

Salutary Products

Products that have low immediate appeal but may benefit consumers in the long run. Ex: Bicycle helmets or insurance products PowerPoint Example: Seatbelts

Deficient Products

Products that have neither immediate appeal nor long run benefits. Ex: Bad-tasting and ineffective medicine PowerPoint Example: Teeth Whiteners

Trade Promotions

Sales Promotion tools used to persuade resellers into carrying a brand, give it shelf space, and promote it in advertising. Ex: Benefits Manufacturers offer the retailers to incentive them to push or really try to sell their products.

Consumer Promotions

Sales promotion tools used to boost short-term customer buying and engagement or enhance long term customer relationships. Ex: Walgreens makes coupons available to its customers through several mobile channels.

Business Promotions

Sales promotion tools used to generate business leads, stimulate purchases, reward customers and motivate salespeople. Ex: Conventions and Trade Shows

Inside Sales Force

Salespeople who conduct business from their offices via telephone, online and social media interactions or visits from prospective buyers.

Outside Sales Force (or field sales force)

Salespeople who travel to call on customers in the field.

Email Marketing

Sending highly targeted, highly personalized, relationship-building marketing messages via email. Ex: Amazon will send a friendly reminder email to users who exit out of the website with items in their shopping cart.

Sales Promotion

Short term incentives to encourage the purchase or sale of a product or a service. Ex: A Bed Bath & Beyond ad in your favorite magazine offers 20 percent off on any single item.

Sustainable Marketing

Socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. Under its "Plan to Win" strategy, McDonald's has created sustainable value for both customers and the company. Now 80 percent of the chain's menu is under 400 calories.

Viral Marketing

The digital version of word-of-mouth marketing: Videos, ads, and other marketing content that is so infectious that consumers will seek it out or pass it along to friends. Ex: Kmart's TV ad-like video featuring shoppers of all ages exclaiming "ship my pants" (Try saying that out loud) pulled in nearly 8 million YouTube views and 38,000 Facebook likes in only one week.

Closing

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

Follow-up

The sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business.

Preapproach

The sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call.

Approach

The sales step in which a salesperson meets the customer for the first time.

Prospecting

The sales step in which a salesperson or company identifies qualified potential customers.

Handling Objectives

The sales step in which a salesperson seeks out, clarifies and overcomes any customer's objections to buying.

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.

Selling Process

The steps that salespeople follow when selling which include: 1. Prospecting and Qualifying 2. Preapproach 3. Approach 4. Presentation and Demonstration 5. Handling objections 6. Closing 7. Follow-up.

Quotas

These are limits that countries set on the amount of foreign imports they accept.

Industrial Economies

Trade goods among themselves and export them to other types of economies for raw materials and finished goods. Ex: United States, Japan, and Norway

Spam

Unsolicited, unwanted commercial email messages.

Digital and Social Media Marketing

Using digital marketing tools such as Websites, social media, mobile apps, ads, online video, email, and blogs that engage consumers anywhere anytime via their digital devices.

Team Selling

Using teams of people from sales, marketing, engineering, finance, technical support and even upper management to service large complex accounts. Ex: P&G sales reps are organized into Customer Business Development (CBD) teams. Each CBD team is assigned to a major P&G customer, such as Walmart, Safeway, or CVS Pharmacy.

Telemarketing

Using the telephone to sell directly to consumers.

Subsistence Economies

Vast majority of people engaged in simple agriculture.

10. At Boeing, salespeople work with company specialists, such as financial analysts, planners, and engineers, to call on potential and current customers. This is an example of ________. a. team selling b. an inside sales force c. a complex sales force d. a product sales force

a. team selling

1. Sunny Snacks is a large consumer product company that sells its products to wholesalers and retailers. The sales force at Sunny Snacks is least likely to do which of the following? a. work directly with final customers b. build relationships with wholesalers c. help retailers effectively sell the company's products d. communicate regularly with business customers e. represent wholesalers and retailers to the company

a. work directly with final customers

4. Lyall Electric, Inc., maintains a sales force for its small appliance customers and a separate sales force for its automotive customers. Lyall Electric utilizes a ________ structure. a. product sales force b. customer sales force c. territorial sales force d. complex sales force

b. customer sales force

8. Stahl, Inc., has 1,000 Type-A accounts, each requiring 28 calls per year, and 2,200 Type-B accounts, each requiring 15 calls per year. If each salesperson at Stahl, Inc., can make 1,500 sales calls per year, approximately how many salespeople will be needed? a. 31 b. 35 c. 41 d. 45

c. 41

7. Stahl, Inc., has 1,000 Type-A accounts, each requiring 28 calls per year, and 2,200 Type-B accounts, each requiring 15 calls per year. What is the sales force's workload? a. 40,000 calls b. 41,000 calls c. 50,000 calls d. 61,000 calls

d. 61,000 calls

5. Morrill Motors splits the United States into 10 sales regions. Within each of those regions, the company maintains two sales teams—one for existing customers and one for prospects. What type of sales force structure does Morrill Motors use? a. territorial b. product c. customer d. complex e. workload

d. complex

6. East Bay Communications has increased its inside sales force. This will help its outside sales force in all except which of the following ways? a. It will allow them more time to sell to major accounts. b. It will allow them more time to find major new prospects. c. It will allow them more time to provide after-the-sale customer service. d. It will ensure that their customers' questions can be answered in a timely way. e. It will improve their use of sales automation technology.

e. It will improve their use of sales automation technology.

3. New Wave Music Company has decided to switch to a customer sales force structure. Which of the following advantages is the company now least likely to enjoy? a. The company can become more customer-focused. b. The company can build closer relationships with important customers. c. The company can better serve different industries. d. The company can better serve current customers and find new customers. e. The company can expect salespeople to develop in-depth knowledge of numerous and complex product lines.

e. The company can expect salespeople to develop in-depth knowledge of numerous and complex product lines.

9. You are responsible for hiring inside salespeople at Acme, Inc. Which of the following jobs would you be least likely to expect these people to perform? a. Free outside salespeople to spend time with major accounts. b. Use the phone to find new leads. c. Act as liaisons between outside salespeople and customers. d. Service accounts. e. Travel to call on smaller customers.

e. Travel to call on smaller customers.

2. At Finley's Fine Goods, members of the sales force and marketing department tend to have disagreements when things go wrong with a customer. The marketers blame the salespeople for poorly executing their strategies, while the salespeople blame the marketers for being out of touch with the customer. Which of the following steps should upper-level management at Finley's Fine Goods take to help bring the sales and marketing functions closer together? a. establish a customer sales force structure b. establish a complex sales force structure c. create an inside sales force d. adopt a sales force automation system e. appoint a chief revenue officer

e. appoint a chief revenue officer