chapter 14: personal selling and sales promotion Flashcards
what is personal selling
personal presentations by the firm’s sales force
purpose of making sales and building customer relationship
includes salespersons
salespersons
covers a wide range of positions
order takers
order getters
order takers (salesperson positions)
salesperson at department store
order getters (salesperson position)
positions demand creative selling, social selling, and relationship building
what are the roles of the sales force
critical link between the company and customers
coordinate marketing and sales
Salesperson-owned loyalty
when customers are loyal to salespeople as well as to the companies and products they represent
what is sales force management?
analyzing, planning, implementing, and controlling sales force activities
what are the steps of managing the sales force?
STEP 1: Designing the Sales Force Strategy and Structure
STEP 2: Recruiting and Selecting Salespeople
STEP 3: Training Salespeople
STEP 4: Compensating Salespeople
STEP 5: Supervising and Motivating Salespeople
STEP 6: Evaluating Salespeople and Sales Force Performance
what are the critical components of STEP 1: Designing the Sales Force Strategy and Structure
Territorial sales force structure
Product sales force structure
Customer (or market) sales force structure
sales force size
workload approach
outside or inside sales force
team selling
Product sales force structure
a sales force organization in which salespeople specialize in selling only a portion of the company’s products or lines
Territorial sales force structure
a sales force organization that assigns each salesperson to an exclusive geographic territory
in there, that salesperson sells the company’s full line
Customer (or market) sales force structure
a sales force organization in which salespeople specialize in selling only to certain customers and industries
when should a company consider its salesforce size?
Once the company has set its structure
how can you consider the workload approach
grouping accounts into classes
taking notes on their size and the effort needed to keep them
this then determines how many salespeople are needed
outside sales force (field sales force)
salespeople who travel to call on customers in the field
inside sales force
salespeople who conduct business from their offices via telephone, online and social media interactions, or visits from prospective buyers
some inside salespeople provide support to outside salespeople
Team selling
using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts
what are the skills that must be looked at when hiring for STEP 2: Recruiting and Selecting Salespeople?
Intrinsically motivated
Discipline work style
Relationship building Ability to
close a sale
what is the goal of STEP 3: Training Salespeople?
achieve understanding of company, product, customer, and marketing knowledge
how can you train your sales force?
Seminars
sales meetings
e-training form the basis of sales training programs
how can you compensate your salesforce in STEP 4: Compensating Salespeople?
Fixed amount: salary
Variable amount: commissions or bonuses
Expenses and fringe benefits
what are the two components of STEP 5: Supervising and Motivating Salespeople
employee supervision
employee motivation
what does supervision do to sales people
helps sales people “work smart” but doing the right things, the right way
how can you motivate sales people
organizational climate
sales quotas
positive incentives
organizational climate
feelings people have about opportunities, values, and rewards
sales quotas
standards stating the amount they should sell & how sales should be divided among company products
how can you STEP 6: Evaluating Salespeople and Sales Force Performance?
Get feedback from regular sales, call and expense reports
Give constructive feedback
will internet be the ultimate death of person-to-person selling?
nah boy
what are advantages of digital tools when helping the sales force?
allowing social networking
saving time and costs
sales forces often use things like youtube and linked in, what are these called?
proprietary systems and public portals
what are the steps of the personal selling process?
STEP 1: Prospecting and Qualifying
STEP 2: Preapproach
STEP 3: Approach
STEP 4: Presentation and Demonstration
STEP 5: Handling Objections
STEP 6: Closing
STEP 7: Follow-up
how are the steps of the personal selling process oriented?
what very important thing must you consider when doing the process?
These steps are transaction oriented
you still have to build and maintain profitable customer relationships
what is prospecting?
STEP 1: Prospecting and Qualifying
the sale step in which a salesperson or company identifies qualified potential customers
what can you use or do for prospecting?
Ask other customers for referrals
ask noncompeting salespeople
use the web and social media
what is qualifying?
STEP 1: Prospecting and Qualifying
identify good customers and screen out the poor ones
explain the process of the STEP 2: Preapproach
the sales step in which a salesperson learns as much as possible about a prospective
customer before making a sales call
Set call objectives
Determine best approach
what do you do when you set call objectives?
STEP 2: Preapproach
qualify
gather info
make immediate sale
what are types of approaches you should consider?
STEP 2: Preapproach
personal visit
phone call
text
tweet
etc
(non-crucial)
what is the STEP 3: Approach?
the sales step in which a salesperson meets the customer for the first time (in-person or online)
first impressions matter here
what is an important thing you must do when meeting with the customer?
STEP 3: Approach
Build goodwill (first impressions matter)
what must you do in STEP 4: Presentation and Demonstration?
- Listen to customer needs
- develop customer solutions
- then present customer solutions
explain what is done in STEP 6: Closing?
Ask customer for an orde
give date limits
what is the difference between an advertising offer and a sales promotion?
Whereas advertising offers reasons to buy a product or service, sales promotion offers reasons to buy it now
what are the types of promotions that are specific to certain targets?
consumer promotions
trade promotions
business promotions
sales force promotions
who are promotion s targeted to?
Final buyers
Retailers and wholesalers
Business customers
Members of the sales force
consumer promotions target whom?
what is its objective?
Final buyers
urge short-term sales
enhance customer brand involvement
trade promotions target whom?
what is its objective?
Retailers and wholesalers
persuade retailers to:
carry new items and more inventory
buy ahead
promote the firm’s brand
provide more shelf space
business promotions target whom?
what is its objective?
Business customers
generate business leads
stimulate purchases
motivate salespeople
sales force promotions target whom?
what is its objective?
Members of the sales force
gain more sales force support for current or new products
getting salespeople to sign up new accounts
what are the major consumer promotion tools?
just name at least like half
samples
coupons
rebates
price packs
premiums
advertising specialties/promotional products
Point-Of-Purchase (POP) promotions
contest, games
sweepstakes
event marketing
samples
trial amount of a product
ex: such as a taste sample at the supermarket
coupons
certificates to save money such as those dispensed on store shelves
There is an increasing use of digital coupons
rebates
price reduction after purchase, such as mail-in proof of purchase
price packs
offer discounts from regular price
ex: “buy one, get one free”
premiums
extra goods offered for free with purchase
ex: McDonal’s happy meal toys
Advertising specialties / Promotional products
articles imprinted with company names, such as t-shirts, hats, etc.
Point-Of-Purchase (POP) promotions
in-store displays, such as life-sized celebrity cardboard cut-outs
contest and games
entices people to play,
ex: “Roll Up the Rim to Win”
sweepstakes
entices people to enter a draw, such as lotteries
event marketing
creation or involvement in events, such as concerts
what are crucial business promotion tools?
Conventions
Trade shows
Sales contests
what to trade promotions tools do?
Tools used to persuade resellers to:
carry a brand
give it shelf space
promote it in advertising
true or false
Many tools used for consumer promotions can also be used at trade promotions
true
true or false
allowances and free goods can be both consumer promotional tools as well as trade promotional tools
true
what are considerations in developing the sales promotion program?
- size of incentive
- conditions of participations
- promotion and distribution of programs
- length of program
- program evaluation
