CH14: Personal Selling and Direct Marketing

Question 1

personal selling

Answer 1

direct interaction with one or more prospective buyers for the purpose of making presentations, answering questions, and procuring orders

Question 2

the 3 main qualities of personal selling

Answer 2

• customized
• relationship-oriented
• response-oriented

Question 3

the 6 major steps in effective selling

Answer 3

• prospecting
• pre-approach
• presentation
• persuasion
• closing
• servicing

Question 4

BANT for personal selling

Answer 4

• budget necessary to buy
• authority to buy
• need for the product or service
• timeline for delivery that is possible to fulfill

Question 5

the 4 main activities during pre-approach

Answer 5

• learn about the prospect company; create an Intel Document
• understand the who, when, where, how, and why
• choose a contact approach
• plan an overall sales strategy

Question 6

the FABV approach to presentations

Answer 6

• features
• advantages
• benefits
• value

Question 7

the 2 types of buyer resistance

Answer 7

• psychological resistance (brand preference, biases, apathy, dislike of sales rep, etc.)
• logical resistance (objections to price, delivery, product, company, etc.)

Question 8

the 2 main components of servicing

Answer 8

• followup/maintenance
• long-term relationship building

Question 9

SPIN approach to asking sales questions

Answer 9

• Situation
• Problem
• Implication
• Need

Question 10

situation questions

Answer 10

help you understand the buyer’s current situation; goal is to gather information

Question 11

problem questions

Answer 11

help illustrate the different problems the product solves for the client

Question 12

implication questions

Answer 12

hone in on the problems you’ve discovered, showing the client why they need to be solved

Question 13

need-payoff questions

Answer 13

lead your customer to conclusions that show how your product or service can address their pain points (show, don’t tell)

Question 14

the 5 main stages in designing the sales force

Answer 14

• objectives
• strategy
• structure
• size
• compensation

Question 15

types of sales force tasks

Answer 15

• information gathering
• targeting
• communicating
• selling
• servicing
• allocating

Question 16

information gathering

Answer 16

conducting market research and doing intelligence work

Question 17

targeting (sales force activity)

Answer 17

deciding how to allocate time between prospects and customers

Question 18

communicating

Answer 18

conveying information about the company’s products and services

Question 19

selling

Answer 19

the process going from approach to closing

Question 20

servicing

Answer 20

providing various services to customers; consulting on problems, technical assistance, arranging financing, expediting delivery, etc.

Question 21

allocating

Answer 21

deciding which customers will get scarce products during shortages

Question 22

direct sales force strategy

Answer 22

full or part-time paid employees who work exclusively for the company; inside sales and outside sales

Question 23

contractual sales force strategy

Answer 23

manufacturer reps, sales agents, and brokers who earn a commission based on sales

Question 24

breakeven between the two sales force strategies

Answer 24

at sales level B in dollars, it becomes more economical to have an internal sales force

Question 25

salesforce structure considerations

Answer 25

• geographic regions
• products
• services
• customer needs

Question 26

workload approach to determining sales force size

Answer 26

1. group customers into size classes by annual sales volume
2. establish desirable call frequencies for each customer class
3. multiply number of accounts in each class by the corresponding call frequency to arrive at total workload for the country
4. determine average number of sales calls per representative per year
5. divide total annual calls by avg per rep to arrive at number of reps needed

Question 27

components of sales force compensation

Answer 27

• fixed base
• variable amount
• expense allowances
• benefits
  compensation can be straight salary, straight commission, or some combination of the two

Question 28

the 5 stages of managing the sales force

Answer 28

• recruiting
• training
• supervising
• motivating
• evaluating

Question 29

best predictors of high performance in sales reps

Answer 29

composite tests and assessment centers that simulate the working environment

Question 30

time-and-duty analysis

Answer 30

measures sales time efficiency for a sales rep; help sales reps understand how they might be able to improve productivity

Question 31

ways to motivate the sales force

Answer 31

• monetary and nonmonetary rewards
• change compensation based on whether the salesperson is a star, core performer, or laggard

Question 32

ways to evaluate the sales force

Answer 32

• sales reports
• activity plans
• write-ups of activity results
• territory marketing plan

Question 33

direct marketing

Answer 33

the use of consumer-direct channels to reach and deliver goods and services to customers without using intermediaries

Question 34

the 4 main direct marketing channels

Answer 34

• direct mail
• catalog marketing
• telemarketing
• infomercials