Chapter 18: Sales Promotion and Personal Selling

Question 1

Consumer sales promotion

Answer 1

Sales promotion activités targeting the ultimate consumer.

Question 2

Trade sales promotion

Answer 2

Sales promotion activities targeting a marketing channel member, such as a wholesaler or retailer.

Question 3

Coupon

Answer 3

A certificate that entitles consumers to an immediate price reduction when they buy the product.

Question 4

Rebates

Answer 4

Cash refunds given for the purchase of a product during a specific period.

Question 5

Premium

Answer 5

An extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product.

Question 6

Loyalty marketing program

Answer 6

A promotional program designed to build long-term, mutually beneficial relationships between a company and its key customers.

Question 7

Frequent-buyer program

Answer 7

A loyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good or service.

Question 8

Sampling

Answer 8

A promotional program that allows the consumer the opportunity to try a product or service for free.

Question 9

Shopper marketing

Answer 9

Promotion set up at the retailer’s location to build traffic, advertise the product, or induce impulse buying.

Question 10

Trade allowance

Answer 10

A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers.

Question 11

Push money

Answer 11

Money offered to channel intermediaries to encourage them to push products - that is, to encourage other members of the channel to sell the products.

Question 12

Relationship selling (consultative selling)

Answer 12

A multistage sales process that involves building, maintaining, and enhancing interactions with customers for the purpose of developing long-term satisfaction through mutually beneficial partnerships.

Question 13

Sales process (sales cycle)

Answer 13

The set of steps a salesperson goes through to sell a particular product or service.

Question 14

Lead generation (prospecting)

Answer 14

Identification of those firms and people most likely to buy the seller’s offerings.

Question 15

Cold calling

Answer 15

A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial status.

Question 16

Referrals

Answer 16

Recommendations to a salesperson from a customer or business associate.

Question 17

Networking

Answer 17

The use of friends, business contacts, co-workers, acquaintances, and fellow members in professional and civic organizations to identify potential clients.

Question 18

Social selling

Answer 18

Leveraging social networks to find the right prospects and build trusted relationships to achieve sales goals.

Question 19

Lead qualification

Answer 19

Determination of a sales prospect’s 1) recognized need, 2) buying power, and 3) receptivity and accessibility.

Question 20

Preapproach

Answer 20

A process that describes the research a salesperson must do before contacting a client.

Question 21

Needs assessment

Answer 21

A determination of the customer’s specific needs and wants and the range of options the customer has for satisfying them.

Question 22

Sales proposal

Answer 22

A formal written document or professional presentation that outlines how the salesperson’s product or service will meet or exceed the prospect’s needs.

Question 23

Sales presentation

Answer 23

A formal meeting in which the salesperson presents a sales proposal to a prospective buyer.

Question 24

Negotiation

Answer 24

The process during which both the salesperson and the prospect offer concessions in an attempt to arrive at a sales agreement.

Question 25

Follow-up

Answer 25

The final step of the selling process, in which the salesperson ensures that delivery schedules are met, that the goods or services perform as promised, and that the buyer’s employees are properly trained to use the products.

Question 26

Steps in the Selling Process

Answer 26

1) Generating leads 2) Qualifying leads 3) Approaching the customer and probing needs 4) Developing and proposing solutions 5) Handling objections 6) Closing the sale 7) Following up