Marketing - Chapter 13

price packs

offer consumers savings off the regular price of a product. Price packs can be single packages sold at reduced price (such as two for the price of one) or two related products banded together (such as toothbrush and toothpaste). Very effective.

order getters

positions demand creative selling and relationship building for products and services ranging from appliances, industrial equipment, and locomotives to insurance and information technology services.

advertising specialties

also called promotional products, are useful articles imprinted with an advertiser's name, logo, or message that are given as gifts to consumers.

coupons

certificates that save buyers money when they purchase specified products

Represent the company to customers

communicate info about the company's products and services. They sell products by approaching customers, presenting their offerings, answering objections, negotiating prices and terms, closing sales, and servicing accounts.

samples

offers of a trial amount of a product. Most effective, but most expensive way to introduce a new product or create new excitement for an existing one.

point-of-purchase

promotions include displays and demonstrations that take place at the point of sale

transaction oriented

their aim is to help salespeople close a specific sales with a customer

team selling

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

presentation and demonstration

During the presentation step of the selling process, the salesperson tells the "value story" to the buyer, showing how the company's offer solves the customer's problems. The customer-solution approach fits better with today's relationship marketing focus than does a hard sell or glad-handing approach. Buyers today want answers and results. They want salespeople who listen to their concerns, understand their needs, and respond with the right products and services. Before salespeople can present customer solutions, they must develop solutions to present. Finally, salespeople must also plan their presentation methods.

Inside sales force

salespeople who conduct business from their offices via telephone, the Internet, or visits from prospective buyers

approach

During the approach step, the salesperson should know how to meet and greet the buyer and get the relationship off to a good start. This step involves the salesperson's appearance, opening lines, and follow-up remarks.

Pre-approach

Learn as much as possible about the organization and its buyers. The salesperson should set call objectives, which may qualify the prospect, gather information, or make an immediate sale.

prospecting and qualifying

The first step in the selling process is prospecting - identifying qualified potential customers. The best source is referrals. Salespeople also need to know how to qualify leads - that is, how to identify the good ones and screen out the poor ones. Prospects can be qualified by looking at their financial ability, volume of business, special needs, location, and possibilities for growth.

Follow-Up

The sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business. The salesperson should complete any details on closing matters and schedule a follow-up.

handling objections

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

Workload approach

a company first groups accounts into different classes according to size, account status, or other factors related to the amount of effort required to maintain the account. It then determines the number of salespeople needed to call on each class of accounts the desired number of times.

Product sales force structure

a sales force organization in which salespeople specialize in selling only a portion of the company's products or lines.

Customer (or market) sales force structure

a sales force organization in which salespeople specialize in selling only to certain customers or industries.

event marketing (or event sponsorships)

creating a brand-marketing event or serving as a sole or participating sponsor of events created by others. Effective event marketing links events and sponsorships to a brand's value proposition.

Salesperson-owned loyalty

customers may become loyal to salespeople as well as to the companies and products they represent

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

Contests, sweepstakes, and games

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

Closing

After handling the prospect's objections, the salesperson next tries to close the sale. Salespeople should know how to recognize closing signals from the buyer, including physical actions, comments, and questions. Several closing techniques: they can ask for the order, review points of agreement, offer to help write in the order, ask whether the buyer wants this model or that one, or note that the buyer will lose out if the order is not placed now.

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.

Represent customers to the company

acting inside the firm as "champions" of customers' interests and managing the buyer-seller relationship.

Sales force mgmt

analyzing, planning, implementing, and controlling sales force activities.

rapid growth of sales promotion

first, inside the company, product managers face greater pressures to increase current sales, and they view promotion as an effective short-run sales tool. Second, externally, the company faces more competition, and competing brands are less differentiated. Third, advertising efficiency has declined because of rising costs, media clutter, and legal restraints. Finally, consumers have become more deal oriented

premiums

goods offered either free or at low cost as an incentive to buy a product, ranging from toys included with kids' products to phone cards and DVDs.

cash refunds

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

order taker

such as a department store salesperson standing behind the counter

outside sales force

travel to call on customers in the field