Chapter 12: Personalized Promotion Flashcards
Any selling activity that involves direct interaction between buyer and seller.
personal selling
What is the stereotype of selling/salespeople?
Negative; they are loud and pushy, just trying to get you to by something as quick as possible
What is the reality of selling (according to the book)?
Sales positions are… (3 things)
- Boundary spanning (dealing with both internal and external parts of the company)
- Highly varied from day-to-day
- Objectively quantifiable in terms of performance (not being judged based on internal assessments; if you hit your numbers, you’re good)
In relation to the reality if selling, there are _________ and _______. Describe these two different types of sellers.
- Hunters – what we think of when we think of salespeople; the people who are doing the real selling
- Farmers – the people who check up on you and form that ongoing relationship
T or F: Partners at professional firms (ex: accounting, lawyer) are essentially salespeople.
True (have to sell your business to people)
A recent study found that ____% of CEOs come from sales.
25
Some “sexy” sales jobs are not that sexy at times. What’s an example of this?
Pharmaceutical sales – may seem great but you’re having to chase busy doctors around all the time
The reality of selling is that selling is about ________, ________, and ________.
listening; understanding; preempting
To be good at selling, you must enjoy ________, be good at ________, and handle a lot of _________.
people; listening; rejection
_________ are quick, snap judgements. _________ are slow, analytical judgements.
intuition; deliberate
The biggest influence on whether a customer purchases or not is the extent to which a salesperson _______ and give recommendations based on that feedback.
listens
T or F: By combining high deliberate accuracy and high intuitive accuracy, they have a synergistic effect of increasing purchase likelihood and purchase amount.
True
(if you have really good intuition about people and are a really good listener, this drives sales)
Which plays a bigger role in relation to how much people spend (purchase amount), intuition or deliberateness?
Intuition
What are the 7 steps in the personal selling process?
- Prospecting (finding people who are interested in what you have to offer)
- Preparation (doing your homework on the company, what they’re facing, what industry they’re in)
- Approach (figuring out how to make contact with them/their buying center)
- Sales Presentation (presenting the sale to them)
- Meeting Objections (being able to answer concerns and stuff)
- Trial Close
- Closing the Sale (the act of explicitly asking a prospect to place an order)
Which steps in the personal selling process fall into these descriptive categories of what’s happening during the process?
a. Do the homework (2 steps)
b. Make contact (1 step)
c. Make the case (2 steps)
d. Close the loop (2 steps)
a. Prospecting and preparation
b. Approach
c. Sales presentation and meeting objections
d. Trial close and closing the sale
In the personal selling process, when do you want to get objections from the person you’re selling to? Early or later?
EARLY so you have time to talk about them with the person/company you’re selling to.
What is the biggest mistake beginning salespeople make?
Not asking for the order in the “Closing the Sale” step of the personal selling process; they don’t try to close the sale
(A salesperson should always ask, even when the sales presentation went badly or when it appeared significant objections still remained. In other words, it never hurts to ask.)
an unscripted sales presentation that begins with the salesperson questioning a prospect about their needs and proceeds to the salesperson responding to the needs with specific product information and recommendations.
adaptive selling
(requires salespeople to adjust their sales presentations to meet the needs of the circumstances at that moment)
a model which represents the aggregate customer portfolio as customers transition through the sales process; like a mirror view of the sales process, but from the customer perspective
sales funnel
What are the 6 stages of the sales funnel (from beginning to end)?
- Awareness
- Interest
- Consideration
- Intent
- Evaluation
- Purchase
Why does the sales funnel model get narrower as you get more towards the purchase stage?
Because people fall out over time through the process.
What does the funnel say about the ratio of prospects to sales calls a salesperson should have?
It says that even though you have a lot of prospects, a lot of those numbers aren’t going to materialize
(sales calls will be less than prospects; it’s okay for it to go from a lot of prospects to a little sales calls– this is where accepting rejection comes in)
T or F: The sales funnel tells salespeople that the top of the funnel, awareness, has to be full.
True
(if you aren’t getting prospects in there, then it will dry up)
What is the concept of sales vs. service?
- Sales: focus on actively acquiring new customers by selling products or services, aiming to close deals and generate revenue; making the sale**
- Service: focus on supporting existing customers by addressing their needs, resolving issues, and maintaining positive relationships post-purchase, prioritizing CUSTOMER SATISFACTION over immediate sales conversion; helping the sale happen, but not making sale** (ex: Target cashiers)
How do mixed incentives (sales and service) affect customer satisfaction?
It DECREASES customer satisfaction.
(ex: if you are going to check out at a bookstore, and the cashier includes sales into their service by trying to get you to donate, or sell you a magazine subscription, it doesn’t make you happy. you’ve already made your decision, you just want to check out and leave)
How should service rep performance get evaluated?
How should sales performance get evaluated?
- Customer satisfaction
- Sales made
Mixed incentives (sales and service) make salespeople (better/worse) at customer service.
worse
when your compensation for your job relies on the number of sales you make, it relies on _________.
commission
(ex: think real-estate)
when your compensation for your job doesn’t rely on the number of sales you make, it relies on _______.
salary
Sales is a powerful tool that that is generally best funded using (salary/commission/both combined) incentives.
Salary and commission together (both combined)
How does salary vs. commission/incentives affect employee behavior?
- Commission: drives employee behavior up (increase in sales) because their pay depends directly on their behavior; more risk-averse
- Salary: less risk-averse
What is one possible negative outcome of using a full commission-based structure for pay?
can encourage unethical behavior
(Salespeople may tend to accept questionable business practices simply bc they may regard them as being necessary to maintain a good
standard of living)
Having a full commission structure makes you (more/less) risk averse.
more
(you avoid risk, which = lower reward)
If the reputation of your company is well known, you should be on a (commission/salary) based structure.
salary
If a company does a lot of advertising and sales promotions, you should be on a (commission/salary) based structure.
salary
If your company has a competitive advantage, you should be on a (commission/salary) based structure.
salary
Promotion to an individual customer that includes an offer, information to justify purchase, and a method for customers to respond.
direct marketing
What are the 6 types of direct marketing?
- Direct mail
- Telemarketing
- Catalogs
- Mobile
- Coupons
What is the most commonly used type of direct marketing?
Direct mail
Why was spending on direct marketing decreasing?
Because people don’t respond to it (poor response rates) and the allure of digital marketing.
T or F: Shorter mail pieces are more effective for sales.
False; LONGER mail pieces (bc they provide more information)
Marketers use email for direct marketing because getting email addresses is relatively ________ and _______.
easy; inexpensive
(However, the fact that it’s inexpensive means many marketers send email promotions to customers who aren’t really in the target market, which makes email less effective, as customers assume most email promotions are not relevant)
What are the 2 strengths of telemarketing (calling people by phone about promotions)?
- Speed to contact customers
- Ability to persuade customers
T or F: mobile (type of direct marketing) is most effective when the marketer knows more about the customer and ties customer preferences to location and time.
True
if you buy a particular brand three out of four times you purchase a particular item, you might get a ______(type of direct marketing) for the off brand each time you purchase your main brand to try to encourage you to shift your purchasing to the off brand more frequently.
coupon
Why is catalog usage increasing?
Because digital devices for doing it are increasing
When customers receive email marketing and _______ together, purchasing likelihood goes (up/down) compared to receiving emails just by themselves.
catalogs; up
Who was more likely to respond to catalogs:
Store or online customers?
Why?
- Store customers
- they prefer sensory experiences
Catalog designs with photos and narratives are ____% more effective in sales and customer engagement than designs with only photos and product names.
40%
(if you make it an experience, your experience-based customers like it)
Catalogs with _________ products have 120% higher ROI.
emotional
Why is email a valuable direct marketing tool?
It’s a closed system where Ai cannot impede on progress, unlike social media or search engines.
the privilege (not the right) of delivering anticipated, personal and relevant messages to people who actually want to get them
permission marketing
(ex: offering people to opt in to promotional emails for a company)
Putting an ad on a tiger transit bus is an example of (inbound/outbound) marketing.
Giving customers an opt-in option to receive catelogs is an example of (inbound/outbound) marketing
- outbound
- inbound
type of marketing that tries to find customers and grab their attention in a specific moment
outbound marketing
type of marketing that focuses on earning a customer’s attention
inbound marketing (permission marketing)
Blogs are an example of (inbound/outbound) marketing.
inbound
A type of inbound marketing and a marketing technique of creating and distributing valuable, relevant and consistent content to attract and acquire a clearly defined audience – with the objective of driving profitable customer action
content marketing
T or F: Many commercial digital channels costs’ are skyrocketing, opening avenues for direct mail again (ex: catalogs).
True
Some direct mail is a form of permission and inbound marketing, which is valued in a time of all-encompassing digital that invades _______ or advertising that seems _____ ___ ______.
- privacy
- out of touch
Direct marketing brings a perspective into focus:
- T or F: There is no guaranteed channel/tactic that will work for your business.
- As such, you should be very _______. Try something, but make sure to ______ it.
- You (should/should not) do the everything, everywhere, all at once strategy unless…(2 things)
- True
- experimental;track
- should not; unless 1.) you have money to burn and 2.) you need to make a splash in a limited timeframe
For a company that uses more of a commission structure for salespeople rather than a high base salary, that company is likely to…
a. use team selling
b. have a weak reputation
c. invest in marketing
d. have strong, differentiated products
b. have a weak reputation
Personalized promotions typically cost (more/less/the same) than group promotions.
more