Chapter 18 exam review Flashcards
Paid personal communication that informs customers and persuades them to buy products in an exchange situation
personal selling
advantage: provides marketers the greatest freedom to adjust to satisfy customers
disadvantages: it is the most expensive element in the promotion mix
Personal selling
7 steps of the general selling process:
1) Prospecting 2) Preapproach 3) Approach 4) Making the Presentation 5) Overcoming Objections 6) Closing the Scale 7) Following Up
developing a database of potential customers
names can be found in a variety of sources internal and external to the firm: company sales records, trade shows, databases, trade association directories
1) Prospecting
before contacting them, the salesperson analyzes information about the prospect’s needs
identify key decision-makers, review account histories and problems
contact other clients for information
asses credit histories and problems
prepare sales presentations
identify product needs
obtain relevant literature
2) Preapproach
the manner in which a salesperson contacts a potential customer
is a critical step because the first impression of the salesperson may be long-lasting
the salesperson must create a relationship with the prospect, not just sell products
typical approaches: referrals, cold canvassing, repeat contact
3) Approach
effective salespeople anticipate and counter objections before the prospect raises them
the safest approach is to be prepared and handle objections as they arise
5) overcoming objections
the salesperson must attract and hold the prospect’s attention, stimulate interest in and sparks a desire for the product
adapt the presentation to the needs of the prospect
4) making the presentation
the stage in the personal selling process when the salesperson asks the prospect to buy the product
the salesperson may attempt a “trial close” by asking questions that assume the prospect will buy
6) closing the sale
the salesperson must follow up the sale
the salesperson should determine if the order was delivered on time and was installed properly; should learn whether the customer has problems or questions about the product; and should determine the customer’s future product needs
7) Following up
sell to new customers and increase sales to current customers
order getters
primarily seek repeat sales
inside OT works in sales offices
outside OT travel to customers
order takers
staff members who facilitate selling but are not involved solely with making sales
support personnel
assist producer’s customers in selling to their own customers
missionary salespeople
take orders in addition to being support personnel
trade salespeople
give technical assistance
technical salespeople
using a team of experts from all functional areas pf a firm, led by a salesperson, to conduct the personal selling process
team selling
building mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time
relationship selling
give a sale force direction and purpose
sales objectives
additional salespeople are added to the sales force until the cost of an additional salesperson equals the additional sales generated by that person
marginal analysis
a process by which the sales manager develops a list of qualified applicants for sales positions
Recruiting
salespeople are paid a specified amount regardless of effort
straight salary compensation plan
compensated solely by sales in a given period
Straight Commission compensation plan
salespeople are paid a fixed salary plus commission based on sales volume
combination compensation plan
pay for themselves by making workers happier and more committed
incentives Programs
calls per day and cost per call
average sales per customer and gross profit per customer
actual sales vs sales potential
dimensions used to measure performance are determined by sales objectives
an activity/ or material that acts as an inducement to resellers or salespeople to sell a product or consumers to buy it
Sales promotion
written price reductions used to encourage consumers to try specific products; is the most widely consumers sales promotion technique
Coupons
effective for brand awareness, reward present users, win back former users, encourage purchases in large quantities, are traceable to target market
advantages to coupons
fraud and misrepresentation
many customers will not buy without a coupon
brand loyalty diminished
some customers will only redeem coupons for products they normally buy
Coupons disadvantages
buyers pay a certain amount less
cents-off
customers are mailed a specific amount of money with proof-of-purchase
money refunds
customers are sent a specified amount of money for making a purchase
Rebate
incentive programs to reward customers who engage in repeat purchases
frequent-user incentives
signs, window displays,counter pieces, etc. designed to attract attention and inform customers
point-of-purchase materials
sales promotions that show customers exactly how the product works
demonstrations
given out to stimulate trial of the product, increase sales and improve distribution
Free samples
items offered as a bonus for purchasing a product
Premiums
individuals compete for prizes based on analytical or creative skills
consumer contests
individuals compete for prizes based on chance
consumer games
entrants include their names in a drawing for a prize
sweepstakes
a temporary price reduction offered to resellers for purchasing set quantities of a product
Buying allowance
a sum of money a producer gives to a reseller for each unit the reseller buys after a promotional deal expires
buy-back allowance
a manufacturer’s reward to retailers based on the number of items they sell
scan-back allowance
a manufacturer’s agreement to pay resellers certain amounts of money for providing special promo efforts
merchandise allowance
an arrangement in which a manufacturer agrees to pay a certain amount of a retailer’s media costs for advertising the manufacturer’s products
cooperative advertising
advertisement promoting a product and identifying the names of retailers that sell the product
dealer listings
sometimes offered as an incentive for purchasing a stated quantity of products
Free merchandise
a gift given to a retailer that purchases a specified quantity of merchandise; often used to coerce special display efforts
dealer leader
additional compensation to salespeople offered by the manufacturer as an incentive to push a line of goods
premium (push) money
used to motivate distributors, retailers and sales personnel through the recognition of outstanding achievements
sales contests
