Marketing Chapter 16

What are the 3 different types of promotions?

consumer, trade and business

types of business promotions

conventions and trade shows, sales contests

Event marketing

creating a brand marketing event or serving as a sole or participating sponsor

Samples

offer a trial amount of a product

Price Packs

offer consumers savings off the regular price of a product

Closing

process where salesperson should recognize signals form the buyer to ask for an order and finalize the sale

Allowance

reduction in return for the retailer's agreement to feature the manufacturers products in some way

Discount

reduction off list price

Problem question

what parts of the systems are likely to create errors?

Situation question

what system are you currently using?

What is the SPIN Method?

Need satisfaction method used when buyers want solutions and salespeople should listen and respond with the right products and services to solve customer problems

Consistency

People align with their clear commitments, applied by making commitments active, public and voluntary (foot in the door)

Reciprocity

People repay in kind, applied by giving what you want to receive

Scarcity

People want more of what they can have less off, applied by highlighting unique benefits and exclusive information

Social Proof

People will follow the lead of similar others, applied by using peer power whenever possible

What are the steps in the personal selling process?

Prospecting, qualifying, pre approach, approach, presentation, handling objections, closing, follow up

Coupons

certificates that give buyers a saving when they purchase specific products

types of trade promotions

discount, allowance, free goods, advertising items

Point of Purchase promotions

displays and demonstrations that take place at the point of sale

Sales contests

effective in motivating salespeople or dealers to increase performance over a given period

Conventions and trade shows

effective to reach many customers not reached with the regular sales force

Free Goods

extra cases of merchandise to resellers who buy a certain quantity or who feature a certain flavor or size

Advertising Items

free items that carry the company's name

Contests, Sweepstakes and Games

give consumers the chance to win something such as cash, trips or goods by luck or through extra effort

Premiums

goods offered either for free or at a low price

Implication question

how does this problem affect your productivitiy?

Need payoff question

how much would you save if our company could help you solve the problem?

Qualifying

identifying the goods leads and screen out poor ones by looking at financial ability, volume of business, needs, location and growth potential

Follow-Up

salesperson follows up after the sale to ensure customer satisfaction and repeat business

Pre approach

salesperson learns as much as possible about a prospective customer including needs, who is involved in the buying and the characteristics and styles of the buyers

Approach

salesperson meets the customer for the first time and gets the relationship off to a good start and involves the salesperson's appearance, opening lines and follow up remarks

Prospecting

salesperson or company identifies qualified potential customers through referrals from customers, suppliers, dealers, and the internet

Handling Objections

salesperson seeks out, clarifies and overcomes any customer objections to buying

Presentation

salesperson tells the "value story" to the buyer, showing how the company's offer solves the customer's problems

types of consumer promotions

samples, coupons, rebates, price packs, premiums, advertising specialties, point of purchase promotions, contests, sweepstakes and games, event marketing

Rebates

similar to coupons except the price reduction occurs after the purchase

What types of questions are asked in the SPIN method?

situation, problem, implication and need pay off

What are the social influence principles?

social proof, scarcity, reciprocity, consistency

consumer promotions

used to boost short term customer buying and engagement or enhance long term relationships

business promotions

used to generate business leads, stimulate purchases, reward customers, and motivate sales people

trade promotions

used to persuade resellers to carry a brand, give it shelf space and promote it in advertising

Advertising specialties

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