Chapter 13

Question 1

Why are salespeople important?

Answer 1

For many companies, they are the ones interacting directly with the clients, meaning they are viewed as representatives of the company
However, if the company uses an intermediary to sell, the consumers won’t know about the salespeople or meet them. In this case, the sales force is behind the scenes, dealing with wholesalers and retailers to help them become more effective in selling their product.

Question 2

What are the activities the salesforce is used for?

Answer 2

Prospecting
communicating
selling
servicing
information gathering

Question 3

What are the 6 steps of the sales management process?

Answer 3

Designing sales force strategy and structure, recruiting and selecting, training, compensating, supervising, and evaluating salespeople and sales force performance.

Question 4

What is required of sales management for designing a sales force?

Answer 4

What type of sales force structure will work best (territorial, product, customer, or complex structure)
Sales force size
Who will be involved in selling
How various salespeople and sales-support people will work together (inside and outside sales force & team selling)

Question 5

What is required of sales management for recruiting and selecting salespeople?

Answer 5

To find out which traits they may want, a company may look at those of their current most existing salespeople.
They can recruit through recommendations of current salespeople, ads, internet & social media, and uni recruitment/placement centres

Question 6

What is the point of the training program for new hires?

Answer 6

It familiarizes them with the art of selling, the company’s history, its products and policies, and the characteristics of its customers and competitors

Question 7

What is the sales force compensation system for?

Answer 7

Helps reward, motivate and direct salespeople.
However, it is not to be used as a standalone: all salespeople should be supervised, and encouraged as they face many frustrations.

Question 8

What is evaluating salespeople about?

Answer 8

It must be done periodically to help them do a better job.

Question 9

How are salespeople evaluated?

Answer 9

Looking at information gathered from sales reports, personal observations, customer surveys, and conversations with other salespeople.

Question 10

What are the current trends in selling?

Answer 10

Social selling aka using social, online, and mobile media in selling.

Question 11

What is the influence of digital technologies on selling today?

Answer 11

Sales people can maximize digital tools to identify/learn about prospects, engage customers, create customer value, close sales, and nurture customer relationships.
However, this also means that a lot of customers don’t rely on assistance from salespeople, since they can analyze their own problems, research solutions, get advice from others, and analyze buying options before even getting in contact with a salesperson.
Bottom line: tech makes a sales force more efficient, cost-effective & productive.

Question 12

What is the personal selling process?

Answer 12

Prospecting and qualifying
Preapproach
Approach
Presentation and demonstration
Handling objections
Closing
Follow-up

Question 13

Should the salesperson solely rely on the personal selling process for all client interactions?

Answer 13

No! They should be guided by the relationship marketing concept. The company salesforce should help to orchestrate a whole-company effort to develop profitable long-term relationships with key customers based on superior customer value and satisfaction.

Question 14

How are sales promotion campaigns developed?

Answer 14

1. Setting sales promotion objectives (consumer relationship building promotions)
2. select tools
3. develop & implement a sales promotion program using
   consumer promotion tools (coupons, refunds, premiums, point-of-purchase promotions to contests, sweepstakes, & events)
   trade promotion tools (discounts, allowances to free goods, push money)
   business promotion tools (conventions, trade shows, sales contests)
   ALSO:
   determine size of incentive
   conditions for participation
   how to promote & distribute promotion package
   length of promotion
4. Evaluate sales promotion results

Question 15

What are the steps of the selling process?

Answer 15

Prospecting and qualifying
Preapproach
Approach
Presentation And demonstration
Handling objections
Closing
Follow-up

Question 16

What is value selling?

Answer 16

Demonstrating & delivering superior customer value capturing a return on that value that is fair for customer & company

Question 17

What does value selling require?

Answer 17

Listening to customers
Understanding customer’s needs
Coordinating the company’s efforts to create lasting relationships based on customer value

Question 18

What are consumer promotions used for?

Answer 18

Urge short-term customer buying
Boost customer-brand engagement

Question 19

What are trade promotions used for?

Answer 19

To get retailers to carry new items and more inventory, buy ahead, promote the company’s products and give them more shelf space

Question 20

What are business promotions used for?

Answer 20

To generate business leads, stimulate purchases, reward customers, motivate salespeople

Question 21

What are the objectives of sales promotion?

Answer 21

Helping reinforce the product’s position
Build long-term customer relationships

Question 22

What is a rebate?

Answer 22

Send proof of purchase, get refunds of part of the purchase price

Question 23

What are price packs?

Answer 23

Savings off the regular price (ex: BOGO)

Question 24

What are premiums?

Answer 24

Goods offered free or low-cost as an incentive
(Toys in happy meals)

Question 25

Name some trade promotion tools

Answer 25

Contests, premiums & displays
Discounts & allowances
Free goods
Push money
Specialty advertising items