Chapter 18: Personal Selling and Sales Promotion

Current-customer sales

Sales personnel who concentrate on current customers call on people and organizations that have purchased products from the firm before

What is the most common incentive offered by companies?

Cash

Premium money

Additional compensation offered by the manufacturer to salespeople as an incentive to push a line of goods.

What does morale depend on?

Adequate compensation, room for advancement, sufficient training, and management support.

Dealer listings

Advertisements promoting a product and identifying participating retailers that sell the product.

When is personal selling most important?

Business-to-business transactions involving the purchase of expensive products.

Cents-off offers

Buyers pay a certain amount less than the regular price shown on the label or package.

How do managers try to balance territorial workloads?

By using differential commission rates.

Cold canvass approach

Calls on potential customers without prior consent.

What is the sixth step in the personal selling process?

Closing the sale

Prospecting

Developing a database of potential customers.

Sales force automation

Involves utilizing information technology to automatically track all stages of the sales process.

When are premiums not effective?

Promoting products sold through self-service.

What is the first step in the personal selling process?

Prospecting

Social CRM

Provides opportunities to manage data in discovering and engaging customers.

Recruiting

sales manager develops a list of qualified applicants for sales positions.

New-Business Sales

sales personnel locate prospects and convert them into buyers.

Combination compensation plan

salespeople are paid a fixed salary plus commission based on sales volume.

Trial close

asking questions that assume the prospect will buy.

How valuable is one referral in comparison to cold calls?

12 times as valuable.

Dealer loaders

A gift to a retailer that purchases a specified quantity of merchandise.

Merchandise allowance

A manufacturer's agreement to pay resellers certain amounts of money for providing promotional efforts like advertising or point-of-purchase displays.

Scan-back allowance

A manufacturer's reward to retailers based on the number of pieces moved through the retailers' scanners during a specific time period.

Buy-back allowance

A sum of money that a producer gives to a reseller for each unit the reseller buys after an initial promotional deal is over.

Sales promotion

An activity or material, or both, that acts as a direct inducement, offering added value or incentive for the product to resellers, salespeople, or consumers.

Cooperative advertising

An arrangement in which a manufacturer agrees to pay a certain amount of a retailer's media costs for advertising the manufacturer's products.

What is the third step in the personal selling process?

Approach

Trade sales promotion methods

Attempt to persuade wholesalers and retailers carry a producer's products and market them more aggressively.

What is the primary reason for not using coupons?

Consumers cannot find coupons for what they want to buy.

What is the most widely used consumer sales promotion technique?

Coupons

What is the final step in the personal selling process?

Following up

How do you establish a strong relationship and create loyalty on the part of the buyer?

Following up.

What is the most preferred reward?

High commissions.

How does sales potential relate to geographic size?

If territories have equal sales potential, they will almost always be unequal in geographic size.

How should sales objectives be stated?

In precise, measurable terms with a specific time period and they must be achievable.

How are objectives for the entire force normally stated?

In terms of sales volume, market share, or profit.

Who manages the digital approaches to sales?

Inside salespeople

What is the main disadvantage of buy-back allowance?

It's expensive.

Premiums

Items offered free or at a minimal cost as a bonus for purchasing a product.

What effect does listening have between the buyer and the seller?

Listening positively affects the relationship between the buyer and the seller during a sales presentation.

What is the fourth step in the personal selling process?

Making the presentation

What is a large proportion of cooperative advertising spent on?

Newspaper advertisements.

What do good salespeople exhibit?

Optimism, flexibility, self-motivation, good time management skills, empathy, and the ability to network and maintain long-term customer relationships.

What are the most effective sales promotion efforts interrelated with?

Other promotional activities.

What is the fifth step in the personal selling process?

Overcoming objections

Personal selling

Paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation.

What is the most expensive element in the promotion mix?

Personal selling

What is the most percise promotion method?

Personal selling

What is the second step in the personal selling process?

Preapproach

Straight salary compensation plan

Salespeople are paid a specific amount per time period.

Trade salespeople

Salespeople involved mainly in helping a producer's customers promote a product.

Straight commission compensation plan

Salespeople's compensation is determined solely by sales for a given period.

What is the most expensive sales promotion method?

Sampling

What is becoming a more typical approach in gaining initial contact?

Social media

Missionary salespeople

Support salespeople, usually employed by a manufacturer, who assist the producer's customers in selling to their own customers.

What do training programs often cover?

The company, its products, and its selling methods.

Rebates

The consumer is sent a specified amount of money for making a single product purchase.

Buying allowance

a temporary price reduction to resellers for purchasing specified quantities of a product

Approach

The manner in which a salesperson contacts a potential customer.

How do most salespeople find prospects?

The use of referrals.

What are most successful salespeople thorough in?

Their preapproach

What are the attributes of the most successful sales forces?

Those with clearly defined steps of the sales process, spend time each month of managing, and train sales managers on how to manage efficiently.

How is effective sales force motivation achieved?

Through an organized set of activities performed continuously by the company's sales management.

How can relationship selling efforts be improved?

Through sales automation technology tools that enhance interactive communication.

What is one of the best ways to overcome objections?

To anticipate and counter them before the prospect raises them.

When do you use focused questions?

To clarify and close the sale.

When do you use broad questions?

To probe or gather information.

What do marketers use rebates for?

To reinforce brand loyalty and encourage product purchase.

Creative selling

Using both inside and outside salespeople to manage an account.

When are premiums appropriate?

When personal selling is an important part of the marketing effort.

Outside salespeople

call on customers in the field

Consumer sales promotion methods

encourage or stimulate consumers to patronize specific retail stores or try particular products

Support personnel

facilitate selling but usually are not involved solely with making sales

Technical salespeople

give technical assistance to a firm's current customers.

Point-of-purchase materials

include outdoor signs, window displays, counter pieces, display racks, and self-service cartons.

Relationship selling

involves building mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time.

Team selling

involves using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts.

Inside salespeople

support personnel or take orders, follow up on deliveries, and provide technical information

Sales objectives

tell salespeople what they are expected to accomplish during a specified time period

Closing

the stage in the personal selling process when the salesperson asks the prospect to buy the product.