Final Exam - Chapter 19 Flashcards
Personal Selling
paid personal communication that attempts to inform customers and persuades them to buy products in an exchange situation
Advantages to Personal Selling
greatest freedom to satisfy customers; most precise promotional method
Disadvantages to Personal Selling
expensive!
7 Step Process to Personal Selling
prospecting, pre-approach, approach, making the presentation, overcoming objections, closing the sale, following up
PS Step 1 (Prospecting)
developing a database of potential customers (leads)
PS Step 2 (Pre-approach)
salesperson analyzes info about the prospect’s needs (“What might they be interested in?”) ex: key decision makers, credit history, product needs, etc.
PS Step 3 (Approach)
the manner in which a salesperson contacts a potential customer; creating relationships; first impression
PS Step 4 (Making the Presentation)
the salesperson must attract and hold the prospect’s attention, stimulate interest in and spark a desire for the product
PS Step 5 (Overcoming Objections)
anticipate and counter objections before the prospect raises them (objections are requests for more info)
PS Step 6 (Closing the Sale)
the salesperson asks the prospect to buy the product (ask for the order); attempt to close at several points during the presentation in case the prospect is ready to buy
PS Step 7 (Follow-Up)
checking in with buyer to make sure everything’s in order; building and maintaining relationships
Types of Salespeople
order getters, order takers, Support Personnel
Order Getters
salespeople who sell to new customers and increase sales to current customers
Order Takers
salespeople who primarily seek repeat sales (ex: retail and wholesalers)
Support Personnel
sales staff members who facilitate selling but usually are ot involved solely with making sales
Missionary Salespeople
usually employed by a manufacturer, assist the producer’s customers in selling to their own customers (pharma-detailers explain/promote product to medical community)
Trade Salespeople
involved mainly in helping a producer’s customers promote a product-Food(Kraft)-convenience products
Technical Salespeople
give technical assistance to a firm’s current customers (ex: software and sales engineers)
Team Selling
using a team of experts from all functional areas of a firm, lead by a salesperson, to conduct the personal selling process
Relationship Selling
building of mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time
Suggestions for Attracting and Retaining a Top Sales Force
training and development, compensation, work/life autonomy (working from home), product quality and service
Recruiting Sources
departments within firm, other firms, employment agencies, universities
Compensating Salespeople
straight salary, straight commission, combination
Straight Salary
paying salespeople a specific amount per time period, regardless of selling effort
Straight Commission
paying salespeople according to the amount of their sales in a given time period (ex: 5% of sales)
Combination Compensation
paying salespeople a fixed salary plus commission based on sales volume
Motivating Salespeople
additional efforts such as trophies, trips, incentives
Creating Sales Territories
routing and scheduling salespeople; minimize non-selling time; create territories with measurable sales potential (ex: geographic area, assigned accounts)
Evaluating Sales Force Performance
call reports (what happened?), measure performance determined by sales objectives such as calls/day, cost/call, # of new customer orders, etc.
Sales Promotion
an activity and/or material that acts as an inducement to reseller or salespeople to sell a product or consumer to buy it
Sales Promotion vs. Advertising
sales promotion more heavily used than ever at expense of advertising (ex: coupons)
Consumer Sales Promotion Methods
sales promotion techniques that encourage consumers to patronize specific stores or try particular products
Coupons
written price reductions used to encourage consumers to buy a specific product (DON’T USE TOO MUCH – ADDICTIONS)
Cents-Off
Promotions that allow buyers to pay less than the regular price to encourage purchase (tag or label saying get $.25 off)
Money Refunds
Promotion techniques that offer consumers a specified amount of money when they mail in a proof of purchase, usually for multiple product purchases-(low response rate-usually convenience type products-low value)
Rebates
Promotion techniques in which a consumer receives a specified amount of money for making a single product purchase (usually more expensive products-people generally hate these and redemption rate is low)
Frequent-User Incentives
Many firms develop incentive programs to reward customers who engage in repeat/frequent purchases (airline miles, coffee shop)
Point-of-Purchase Materials (POP)
Signs, window displays, counter pieces, etc. designed to attract attention and inform customers
Demontrations
Sales promotion methods a manufacturer uses temporarily to encourage trial use and purchase of a product or to show how a product works
Free Samples
Samples of a product given out to encourage trial or purchase
Premiums
Items offered free or at a minimal cost as a bonus for purchasing a product
Consumer Contests
Sales promotion methods in which individuals compete for prizes based on their analytical or creative skills
Consumer Games
Sales promotion methods in which individuals compete for prizes based primarily on chance
Consumer Sweepstakes
A sales promotion in which entrants submit their names for inclusion in a drawing for prizes
Trade Sales Promotion Methods
attempt to persuade wholesalers and retailers to carry and aggressively market a producer’s product
Buying Allowance
A temporary price reduction to resellers for purchasing specific quantities of a product
Scan-Back Allowance
A manufacturer’s reward to retailers based on the number of pieces scanned
Merchandise Allowance
A manufacturer’s agreement to pay resellers certain amounts of money for providing special promotional efforts, such as setting up and maintaining a display
Cooperative Advertising
An arrangement in which a manufacturer agrees to pay a certain amount of a retailer’s media costs for advertising the manufacturer’s products
Dealer Listings
Advertisements promoting a product and identifying the names of retailers that sell the product
Free Merchandise
A manufacturer’s reward given to resellers that purchase a stated quantity of products
Dealer Loader
A gift given to a retailer that purchases a specified quantity of merchandise; Often used to coerce special display efforts
Premium (Push) Money
additional compensation to salespeople offered by the manufacturer as an incentive to push a line of goods
Sales Contests
A sales promotion method used to motivate distributors, retailers, and sales personnel through recognition of outstanding achievement
