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Mktg Final Exam Chp 19

Terms in this set (38)

Personal selling
Paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation
Prospecting, preapproach, approach, and making the presentation
The first 4 steps of the personal selling process
overcoming objections, closing the sale, following up
The last 3 steps of the personal selling process
Prospecting
Developing a database of potential customers
Preapproach
The most successful sales people are thorough in their ___________
involves identifying key decision makers
reviewing account histories and problems
contact other clients for information
prepare sales presentation
identify product needs
obtain relevant literature
Approach
The manner in which a salesperson contacts a potential customer
Making the Presentation
Must attract and hold the prospect's attention, stimulate interest in and spark a desire for the product
Let them use product if possible
you can change presentation - to emphasize one thing over another
Overcoming Objections
Anticipate and counter them before the prospect raises them
handle as they arise
Closing
The stage in the personal selling process when the salesperson asks the prospect to buy the product
Trial Close
asking questions that assume the prospect will buy
Continually trying to close at different points during presentation
Straight salary compensation plan
Paying salespeople a specific amount per time period, regardless of selling effort
Straight commission compensation plan
Paying salespeople according to the amount of their sales in a given time period
Combination compensation plan
Paying salespeople a fixed salary plus a commission based on sales volume
Sales promotion
An activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it
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
Disadvantages of Coupons
Fraud, misredemption, expensive, losing value, brand loyalty diminished, not enough item in stock
Cents-off offers
Promotions that allow buyers to pay less than the regular price to encourage purchase
Money refunds
Sales promotion techniques that offer consumers a specified amount of money when they mail in a proof of purchase, usually for multiple product purchases
Rebates
Sales promotion techniques in which a consumer receives a specified amount of money for making a single product purchase
Point-of-purchase (POP) materials
Signs, window displays, display racks, and similar devices used to attract customers
Demonstrations
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 product given out to encourage trial and purchase (Most expensive form of promotion)
Premiums
Items offered free or at a minimum 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 skill
Consumer games
Sales promotion methods in which individuals compete for prized 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
Methods intended to persuade wholesalers and retailers to carry a producer's products and market them aggressively
Buying allowance
A temporary price reduction to resellers for purchasing specified quantities of a product
Buy-back allowance
A sum of money given to a reseller for each unit bought after an initial promotion deal is over
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 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 that promote a product and identify the names of participating 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, often part of a display, given to a retailer that purchases a specified quantity of merchandise
Premium money (push money)
Extra compensation to salespeople for pushing a line of goods
Sales contest
A sales promotion method used to motivate distributors, retailers, and sales personnel through recognition of outstanding achievements
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