Ch 16 Marketing

complex sales force structure

a wide variety of products is sold to many types of customers over a broad geographic area and combines several types of sales force structures

salesperson-owned loyalty

customers become loyal to salespeople as well as the company and products they represent *lends even more importance to the salesperson's customer-relationship-building abilities

Sales force

the ________ serves as a critical link between a company and its customers

workload approach

the __________ groups accounts into different classes according to size, account status, or other factors related to amount of effort required to maintain account

expense reports

for which they are partly or wholly reimbursed

contest, sweepstakes, and games

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

qualify leads

how to identify the good leads and screen out the poor leads

Seller

in many cases, salespeople serve two masters- the _____ and the buyer

conditions for participation

incentives might be offered to everyone or only to select groups

point-of-purchase (POP) promotions

include displays and demonstrations that take place at the point of sale *promotional material placed w/in retail store, usually located near product being promoted, may hold merchandise/info & encouragements to buy product, most are prepared & set up by manufacturers & wholesalers

steps in the selling process

(1) Prospect and Qualify (2) Preapproach (3) Approach (4) Make a Presentation (5) Answer Objections (6) Close the Sale (7) Follow Up

product sales force structure

A sales force organization in which salespeople specialize in selling only a portion of the company's products or lines. * no single salesperson can become expert in all of these product categories, so product specialization is required

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 current customers versus finding new ones, and serving major accounts versus regular accounts *can help a company build closer relationships with important customers

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. * this organization clearly defines each salesperson's job and fixes accountability * also increases the salesperson's desire to build local customer relationships that, in turn, improve selling effectiveness

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. *covers a wide range of positions an order taker, order getters, whose positions demand creative selling, social selling, and relationship building for products and services ranging from appliances, industrial equipment, and airplanes to insurance and IT services

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

organizational climate

Describes the feeling that salespeople have about their opportunities, value, and rewards for a good performance

objectives for trade promotions

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

boundary spanners

Individuals who connect their immediate work group with other parts of the company or with groups in other organizations are called _____

presentation

Many grocery stores place frequently purchased staples such as milk or bread at the back of the store. This way, customers will have to wander through the store in order to find the milk. On the way, they may see other products that they will purchase. This is an example of using _____________ to implement a store positioning strategy? *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

preapproach

Marlene Arau is a member of the sales force at Urban Fashions, a clothing manufacturer. Marlene is preparing for a first meeting with a wholesaler who is a potential customer, and she is preparing herself by learning as much as she can about the wholesaler's organization. Marlene is in the ________ step of the personal selling process. *The sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call

prospecting

Mickey was hired by Metropolitan Life Insurance Company as a sales representative. The first task was to generate a list of 100 close friends and relatives who might be interested in talking about life insurance. This is an example of the ____________ phase of the personal selling process? *The sales step in which a salesperson or company identifies qualified potential customers *the best source of generating leads is referrals.

personal selling

Personal presentations by the firm's sales force for the purpose of making sales and building customer relationships *consists of interpersonal interactions with customers and prospects to make sales and maintain customer relationships. * one of the oldest professions in the world

consumer promotions

Sales promotion tools used to boost short-term customer buying and engagement or enhance long-term customer relationships.

Inside sales force

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

call reports

Salespeople write up their completed activities on

sales promotion

Short-term incentives to encourage the purchase or sale of a product or service *involves using short-term incentives to encourage customer purchasing, reseller support, and sales force efforts.

promotion clutter

The growing use of sales promotion has resulted in ________. *The amount of sales promotion is so high customers have begun to tune them out

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 *necessary if the salesperson wants to ensure customer satisfaction and repeat business

approach

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

handling objections

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

selling process

The steps that salespeople follow when selling, which include prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow-up. *consist of several steps that salespeople must master

cold calling

a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status

advertising specialties

Useful articles of merchandise, such as sports bottles, calendars, and pens, imprinted with an advertiser's name, message, or logo that are distributed free are examples of:

Team selling

Using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts. *salespeople who are used to having customers all to themselves may have trouble learning to work with and trust others on a team *_____________ can confuse or overwhelm customers who are used to working with only one salesperson *it can be difficult in evaluating individual contributions to the team-selling effort, which can create some sticky compensation issues

sales reports

Weekly or monthly work plans used by management to get information about salespeople are referred to as ________.

samples

________ are offers of a trial amount of a product.

sales quotas

________ are the standards stating the amount salespersons should sell and how sales should be divided among the company's products.

transaction oriented

aim to help salespeople close a speicific sale with a customer

sales force management

analyzing, planning, implementing, and controlling sales force activities 1. designing sales force strategy & structure 2. recruiting & selecting salespeople 3 training salespeople 4. compensating salespeople 5. supervising sales people 6. evaluating salespeople

premiums

are goods offered either free or at low cost as an incentive to buy a product

rebates

are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet

frequency marketing programs

asher airlines has instituted a loyalty rewards program that rewards customers with seat upgrades and free miles for the continued patronage. what customer relationship tool is asher airlines using?

time-and-duty analysis

assessment of time spent selling, traveling, waiting, eating, taking breaks, and doing administrative tasks

social selling

using online, mobile, and social media to engage customers, build stronger customer relationships, and augment sales performance

recruitment

at the heart of any successful sales force operation is the ________ and selection of good salespeople

coupons

certificates that save buyers money when they purchase specified products

slaes force automation systems

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

event marketing

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

sales people four key talents

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

the goal of motivation

is to encourage salespeople to "work hard" and energetically toward sales force goals

the goal of supervision

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

the key for sales reps

is to understand and nurture their innate talents so they can develop their own personal approach and win business their way

social selling drawbacks

its not cheap can intimidate low-tech salespeople or clients some things you just can't present or tech via the internet

price packs

offer consumers savings off the regular price of a product

sales force size

once the company has set its structure, it is ready to consider __________

sales liaisons

people from marketing who "live with the sales force" and help coordinate marketing and sales force programs and efforts

sales assistants

provide research and administrative backup for outside salespeople *provide research an admin backup by tracking down sales leds, calling ahead to confirm appointments, follow up on deliveries, and answer customer questions when outside salespeople cannot be reached

sales meetings

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

technical sales-support people

provide technical information and answers to customers' questions

business promotions

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

trade promotions

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

outside sales force

salespeople who travel to call on customers in the field

call plan

shows which customers and prospects to call on and which activities to carry out

Virtual instructor-led training (VILT)

small group of salespeople at remote locations log onto Web conference site where sales instructor leads training sessions using online video, audio, and interactive learning tools

basic types of compensation plans

straight salary straight commission salary plus bonus salary plus commission

compensation plan

to attract good salespeople, a company must have an appealing _____. ________ consists of four elements: a fixed amount (usually salary) , a variable amount (commission or bonuses) , expenses, and fringe benefits

sales contests

used to spur the sales force to make a selling effort above and beyond what is normally expected

call objectives

which may be to qualify the prospect, gather information, or make an immediate sale