Marketing Chapter 13

Sales promotion

Using short-term incentives to encourage customer purchasing, reseller support, and sales force efforts.

Product sales force structure

salespeople specialize in selling only a portion of the companys products or lines

Presentation

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

Territorial force structure

a sales force organization that assigns each salesperson to an exclusive territory in which that salesperson sells the companys full line

Free goods

extra cases of merch offered to reseller who buy a certain quantity or type of product

Premiums

goods offered either free or at low cost as an incentive

Prospecting

identifies qualified potential customers

Personal selling

- consists of interpersonal interactions with customers and prospects to make sales and maintain customer relationships - involves personal presentations by firm's sales force for purpose of engaging customers, making sales, and building customer relationships

What are the major steps in sales force management?

1. Designing sales force strategy and structure 2. recruiting and selecting salespeople 3. training salespeople 4. compensating salespeople 5. supervising salespeople 6. evaluating salespeople

Allowance

so much off per case in return for the retailers agreement to feature the manufacturers products in some way

Outside salespeople

travel to call on customers in the field.

Business promotions

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

Sales contests

used to motivate salespeople or dealers to increase their sales performance over given period

Advertising specialites

useful articles imprinted with advertiser name, given as gift

Complex forces structures

when a company sells a wide variety of products to many types of customers over a broad geographic area

Approach

when a salesperson meets customer for the first time

How are salespeople compensated?

Fixed amount: salary, stable income. Variable amount: commissions or bonuses based on sales performance, rewards the salesperson for greater effort and success. Expenses & fringe benefits: reimbursement.

Functions of a salesperson

Individual who represents a company to customers by performing one or more activities-prospecting, communicating, selling, servicing, information gathering, and relationship building.

Conventions and trade shows

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

Push money

cash or gifts to dealers to push the goods

Inside salespeople

conduct business from their offices via telephone, online and social media interactions, visits from buyers (also includes technical sales support and sales assistants).

Free specialty advertising

items that carry the company name (pens, memo pads, totes)

Preapproach

learns as much as possible about a prospective customer before making a sales call

Straight discount

off the list price on each case purchased during a stated period of time

Samples

offers a trial amount of product

Price packs

offers consumers savings off the regular price of product

Rebates

price reduction occurs after purchase

Selling process

prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow up

Customer or market sales force structures

salespeople specialize in selling only to certain customers or industries

Coupons

saves buyers money when they buy specific products

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

Handling objections

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

How are salespeople motivated?

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