05 - Personal Selling & Sales Promotion

Question 1

Definition: Personal Selling

Answer 1

Personal selling involves one-to-one communication, proving essential for certain product types and business markets. It is needed when a firm engages in a push strategy.

Question 2

Definition: Salesperson

Answer 2

A person who represents a company directly to customers by performing several sales activities.

Question 3

Types of sales jobs (6)

Answer 3

1) Team selling
2) Order getter
3) New-business salesperson
4) Missionary salesperson
5) Technical specialist
6) Order taker

Question 4

Definition: Team selling

Answer 4

Team selling is required for pigger products that are more complex so that several experts are required to explain certain aspects of it, meaning that the salespeople need to act as a team to get the sale.

Question 5

Definition: Order getter

Answer 5

Referred to as creative salespeople that want to upsell by offering certain special offers etc…

Question 6

Definition: New-business salesperson

Answer 6

This involved a salesperson entering a new market that the business has never sold to before.

Question 7

Definition: Missionary salesperson

Answer 7

Somebody who sells ideas and solutions (ex: Pharmaceutical salespeople to doctors).

Question 8

Definition: Technical specialist

Answer 8

Somebody who also takes care of maintenance activities but wants to sell you something at the same time.

Question 9

Definiton: Order taker

Answer 9

The typical person at the counter who simply registers your order.

Question 10

Two approaches to selling (2)

Answer 10

1) Transactional selling

2) Relationship selling

Question 11

Definition: Transactional selling

Answer 11

This approach focuses on making an immediate sale with little concern for developing a long-term relationship with the customer.

Question 12

Definition: Relationship selling

Answer 12

This process involves the development of a long-term, profitable customer relationship between the salesperson and the customer.

Question 13

The sales process (8)

Answer 13

1) Prospecting and qualifying
2) Pre-approach
3) Approach
4) Need assesment
5) Presentation/the pitch
6) Meeting objectives
7) Closing
8) Follow-up and service

Question 14

Definition: Prospecting

Answer 14

Prospecting is the process by which salespeople identify and develop a list of possible customers via directories and commercial databases, search engines, customer referrals, trade shows and cold calling.

Question 15

Definition: Qualifying

Answer 15

Process of identifying good prospects and screening out poor ones. Good prospects are identified by job, appearance, fashion. Once the prospects are identified, the salesperson must then qualify leads.

Question 16

MAD Buyer

Answer 16

M - Money to spend
A - Authority to buy
D - Desire to buy

Question 17

Definition: Pre-approach

Answer 17

At this stage, the salesperson learns as much as possible about a prospective customer before making a sales call.

Question 18

Definition: Approach

Answer 18

Salesperson meets the buyer and gets the relationship off to a good start (first impressions very important!).

Question 19

Definition: Need assesment

Answer 19

At this stage, the salesperson mus discover, clarify and understand the buyer’s needs via the following steps:

1) Questioning to identify the need
2) Need identification
3) Pre-commitment (“would you buy today?”)

Question 20

Definition: Presentation

Answer 20

Now the salesperson tells the product “story” to the buyer using the need-satisfaction approach. Presentation is usually referred to as a discussion of those product and/or service features that the customer has indicated as important to them.

Question 21

Tips for effective presentation (4)

Answer 21

1) Keep it short and simple (KISS).
2) Talk the prospects language (technical language not advised).
3) Stress the application or function of the product/service to the prospects situation (thats why they were interested in the first place.
4) Seek credibility at ever turn.

Question 22

Definition: Handling objections

Answer 22

Here the salesperson seeks out, clarifies and overcomes customer objections to buying. These should be welcomed as opportunities, because they indicate that the prospect has some interest in the proposition.

Question 23

Types of objections

Answer 23

1) Price or value objections
2) Product or service objections
3) Procrastinating objections
4) Hidden objections (racism etc…)

Question 24

Definition: Closing

Answer 24

Finally, the salesperson asks the customer for an order. Closing the deal has to be anti-climactic and yes/no questions should be avoided to avoid rejection.

Question 25

Definition: Follow-up

Answer 25

This stage occurs after the sale and ensures customer satisfaction and repeat business. The sale is definetly not over when they get the order (relationship selling vs. transactional selling) and the customer has to be fully satisfied, thus building trust. Also important to note is that existing customers are cheaper to maintain than to acquire new ones.

Question 26

Sales promotion targets (4)

Answer 26

1) Final Buyers
2) Retailers and wholesalers
3) Business customers
4) Members of the sales force

Question 27

Types of sales promotion (5)

Answer 27

1) Discounts
2) Allowances
3) Conventions
4) Trade shows
5) Sales contests