Chapter 18: Sales Promotion and Personal Selling

Question 1

Define Sales Promotion

Answer 1

Sales promotion is a communications tool that provides a short-term incentives to the consumer or members of the distribution channel as a motivation to purchase a good or service immediately. Sales promotion methods either reduce the price of purchase or add value to the good or service (over a defined period), thereby creating a time-sensitive incentives. Sales promotion has an affect on behaviour than on attitudes

• Make the product available where the consumer wants it to be close to sale
• Provide measurable results

Objective: Have more affect on behaviour than on attitudes; immediate purchase is the goal; Objectives are driven by general behaviour of the consumer, Stage in the PCL

Question 2

Define Coupons

Answer 2

Immediate price reduction (product trial, repurchasing, increase the amount purchased); Variety of distribution methods (internet and mobile growing - 10 times the redemption), and Social Media

Question 3

Define Rebates

Answer 3

Cash refunds provided for the purchase, Price reduction but not immediate, preferred by manufacturers (more control, direct to consumer, build databases, high slippage)

Question 4

Define Premium

Answer 4

Add value to the product to differentiate it (reinforce purchase decision, increase consumption, switch)

Question 5

Define Loyalty

Answer 5

Frequent buyer programs, reward loyal buyers, build long-term mutually beneficial relationships, can enhance profitability by reducing switching, mobile friendly is important (should support the brand promise, be personalized, encourage redemption and be mobile enhanced)

Question 6

Define Contest

Answer 6

Are promotions in which participants use some skill to ability to compete for prizes. A consumer contest usually requires entrants to submit a proof or purchase and answer questions, complete sentences, or write paragraphs about the product.

Question 7

Define Winning a Sweepstake

Answer 7

Depends on the chance (participate is free). Sweepstakes usually draw about ten times as many entries as contests do

Question 8

Define Sampling

Answer 8

Trying for free; this increases sales as minimizes risk, online sampling has become popular

Question 9

Define Shopper Marketing

Answer 9

Engaging the consumer in-store; point-of-purchase (POP)

Question 10

Define Trade Allowance

Answer 10

Is a price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers. The price reduction or rebate is given in exchange for a specific activity, such as allocating space for a new product or buying a product during a promotional

Question 11

Define Intermediaries

Answer 11

Receive push money as bonus for pushing the manufacturer’s brand through the distribution channel. Often the push money is directed toward a retailer’s salespeople

Question 12

Define Free Merchandise

Answer 12

Offers retailers free merchandise in lieu or quantity discounts, which encourages support

Question 13

Define Personal Selling

Answer 13

Direct Communication between a sales representative and one or more prospective buyers (influence each other in purchase situation)

Advantages:

• More detail
• Personalized
• Control Cost

Question 14

Define the Steps in the Selling Process

Answer 14

The set of steps a salesperson goes through to sell a particular product or service. The sales process or cycle can be unique for each product or service, depending on the features of the product or service, the characteristics of customer segments and the internal processes in place within the firm, such as how leads are gathered

• Some sale processes take longer than others (few minutes vs. Longer)

Question 15

Define Forms of Promotion

Answer 15

Attention, Interest, Desire, Action concept

• Final Follow up after process which lowers dissonance

Question 16

Define Step One of Selling Process: Generate Leads

Answer 16

Identify Buyer

Question 17

Define Step Two of Selling Process: Quality Leads

Answer 17

The need to be satisfied

Question 18

Define Step Three of Selling Process: Approach

Answer 18

Gather Information

Question 19

Define Step Four of Selling Process: Develop and Propose Solution

Answer 19

Create solution and prepare presentation

Question 20

Define Step Five of Selling Process: Handle Objectives

Answer 20

Be prepared

Question 21

Define Step Six of Selling Process: Close the Sale

Answer 21

The commitment

Question 22

Define Step Seven of Selling Process: Follow Up

Answer 22

Ensure Customer is Satisfied

Question 23

Define Lead Qualification

Answer 23

Determining the recognized need, buying power, and receptivity

• Pre-approach: Needs assent before sales call to enhance effectiveness of the sales call (enough knowledge to engage and keep engaged)

Question 24

Sales People Must (good qualities)

Answer 24

• Good pre approach
• Determine specific needs and wants and the range of options the customer has
• Know as much possible about the customer
• Know everything about the product or service
• And competition

Question 25

Define E-commerce and the Impact it has

Answer 25

Significant impact; powerful tool for accessing relevant and accurate information on products, pricing, and over status

Question 26

Define Sales People and the Impact

Answer 26

Increased research