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