Chapter 16 (minus lecture)

Why sales promotions are more popular

1. greater pressure to increase sales 2. differentiate offers 3. advertising efficiency has declined bc legal requirements, clutter, rising costs 4. deal oriented customers

prospecting and qualifying

1. identifying qualified potential customers. then see screen to see good vs bad leads

preapproach

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

approach

3. during the approach step, the salesperson meets the customer for the first time

presentation and demonstration

4. presentation - salesperson tells *value story* to buyer about how the offer solves the customer's problems. the customer solution approach fits better than hard sell or glad handing. key is listening to customer

handling objections

5. salesperson seeks out, clarifies, overcomes objections to buying

closing

6. salesperson asks customer for final order - can just ask or review final points of order, offer to help write up order, ask which model they would like, note buyer will lose out if order isn't placed now

follow-up

7. ensure customer satisfaction and repeat business. complete final details, make sure everything goes well

personal selling

Advertising consists largely of​ non-personal communication with large groups of​ consumers, whereas​ ________ involves interpersonal interactions and engagement between company representatives and individual customers.

closing

After successfully overcoming a potential​ customer's objection to buying the vacuum cleaner he was​ selling, Terrence, a​ salesperson, asked the customer for an order. Terrence is in the​ ________ stage of the selling process.

team selling

Amanda Perkins is a senior sales manager in Arlington Steelworks. As the customer base of her company has grown larger and more demanding over the last few​ years, Amanda insists on​ ________, or using groups of people from various departments such as​ sales, technical​ support, engineering, and even upper management to service complex accounts.

product

Because many industry sectors require highly specialized​ knowledge, General Electric employs different sales forces in each of its different product and service divisions. This approach to sales organization is known as a​ _______ sales force structure.

presentation

During the​ ________ step of the selling​ process, the salesperson tells the value story to the​ buyer, showing how the​ company's product or service solves the​ customer's problems.

trade promotion

Happy Pet is a large pet food company that has convinced the retailers and the wholesalers of the New England area to resell its products. Happy Pet promises to reimburse the advertising costs to its retailers and wholesalers for advertising its products. This is an example of a​ ________.

has numerous and complex products

If a company​ ________, it should adopt a product sales force​ structure, in which the sales force specializes along product lines.

team selling

Many software companies pair account representatives with computer engineers as well as other experts from areas such as​ marketing, technical​ support, and research and development. This concept is known as​ ________.

​salesperson-owned loyalty

The concept of​ ________ is based on the idea that for many​ customers, the salesperson is the companyl—the only tangible manifestation of the company with which they ever interact. As a​ result, strong relationships with the salesperson often translate into loyalty to the company and its products.

prospecting

The first step in the selling process is​ ________, during which the salesperson identifies qualified potential customers.

simplifying administrative duties

Which of the following is the best way for a company to increase selling​ time?

prospecting and qualifying

Which of the following is the first step in the personal selling​ process?

sampling

Which of the following is the most effectivelong dash—but most expensivelong dash—way to introduce a new product or create new excitement for an existing​ one?

territorial sales force structure

a salesforce org that assigns each salesperson to an exclusive geographic territory in which the salesperson sells the company's full line. this is best when a company sells only one product line to one industry with customers in many locations

time-and-duty-analysis

also call plans manage what people are doing. best way to save time is simplifying admin duties, developing better sales call and routing plans, supplying more and better customer info, using phone, email, online, or mobile conferencing instead of traveling

outside sales force

also known as field sales force, travel to call on customers in the field

sales force management

analyzing, planning, implementing, controlling sales force activities - includes designing sales force strategy and structure as well as recruiting, selecting, training, compensating, supervising, and evaluating the firm's salespeople

team selling

as customers grow larger and more demanding, this is service large, complex accounts for all their needs. can include sales, marketing, technical and support services, R&D, engineering, ops, finance, more.

consumer promotions

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

push money

cash or gifts to dealers or their sales forces to push goods. can give free specialty advertising items that carry the name

event marketing (event sponsorships)

creating a brand-marketing event or being a sole or participating sponsor or events created by others

coupons

customers love coupons - save money to purchase specific stuff

free goods

extra cases of merchandise to retailers who buy a certain quantity or feature something

compensation types

fixed amount, variable amount, expenses, fringe benefits. compensation plans: straight salary, straight commission, salary plus bonus, salary plus commission

contests, sweepstakes, games

give customer chance to win something

premiums

goods offered free or low cost as incentive to buy a product - like happy meal toy

salesperson

individual who represents a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, relationship building. fall on the spectrum of order taking and order getting. represent company and customer to each other

promotion clutter

like advertising clutter. promotions lost among each other

discount

off list price on each case purchased during certain time (price off, off invoice, off list)

personal selling

personal presentations by the firm's sales force for the purpose of engaging customers, making sales, and building customer relationships

order getter

position demands creative selling, social selling, relationship building

rebates (cash refunds)

price reduction after purchase instead of at retail outlet

technical sales-support people

provide technical information and answers to customers' question. support outside sales people

sales assistants

research and administrative backup for outside salespeople. help with planning and following up and stuff

customer (or market) sales force structure

salesforce org that organizes itself along customer or industry lines - specialize to serve certain customers or industries. for example, giving important accounts their own people, separating current accounts vs finding new ones

product sales force structure

salesforce org where salespeople specialize in selling only a portion of the company's products or lines - specialize along product lines.

order taker

salespeople behind the counter doing very little, very passive

inside sales force

salespeople who conduct business from the office via telephone, online and social media interactions, or visits from buyers.

price packs (cents off deal)

savings off regular price - directly on package like 2 for price of one or grouping together products used together. more effective than coupons in stimulating short term sales

sales promotion program

set size of incentive, set conditions for participation, how to promote and distribute the program, find length of promotions, evaluate

sales promotion

short term incentives to encourage the purchase of a product or service *now*

allowance

so much off per case in return for retailer agreeing to feature product in some way

Point of purchase (POP) promotions

special displays and demonstrations at point of sale (stores). manufacturers often handle these

sales quota

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

selling process

steps that salespeople follow when selling - include prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, follow-up

sales promotion objectives

target: final buyers (consumer promotion), retailers and whole salers (trade promotions), business customers (business promotions), members of sales force (sales force promotions)

trade promotions

targeted at retailers and wholesalers, persuade resellers to carry a brand, give it shelf space, promote it in advertising, push it to consumers. often same tools as for consumers

samples

trial amount of product. most effective but most expensive way to introduce new product or create new excitement for existing one.

telemarketers/online sellers

use phone, internet, social media to find new leads, learn about customers and business, sell and service accounts directly

business promotion

used to generate business leads, stimulate purchases, reward customers, motivate salespeople. can include conventions or trade shows to promote products, sales contest - to increase incentives for salespeople

advertising specialty/promotional product

useful articles imprinted with name, logo, message, etc. given as gifts to customers

social selling

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

complex sales force structure

wide variety of products to many types of customers over a broad geographic area, used mixed types of organization (territory, product, customer)

Promotional products

​________ are useful articles imprinted with an​ advertiser's name,​ logo, or message that are given as gifts to consumers.

Trade promotions

​________ refer to sales promotion tools used to persuade resellers to carry a​ brand, give it shelf​ space, promote it in​ advertising, and push it to consumers.