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| Deals, Allowances, and Discounts |
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Definition
Slotting Allowance- the fee paid to put your product on retailers shelves
Merchandise Allowances- incentives to get retailers to support our brand.
Case Allowance- a discount to retailers for items purchased during a certain time period
Co-Op advertising- Where a manuaturer and a retailer work together on an advertisement |
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| brings together buyers and sellers from a particular industry. Allows to introduce new products, share info, & take orders- increases industry visibility |
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| ex.mugs,pens. Lets other people know about the company/brand, helps ppl remember the brand |
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| Point-of-Purchase Displays- |
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Definition
| can be temporary or permanent. A way to provide information when the consumer is making the decision. Can be simple or elaborate |
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| often focused on the company’s own sales force, encouraging to increase sales or promote a particular product |
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| used to encourage the sale of a particular product. Can be money, trips, or other rewards. |
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Any direct communication to a consumer or business recipient designed to generate a response.
Forms of response:
Request for more info
Visit a store or website |
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Definition
Catalogs: Collection of products offered for sale and described in book form, usually consisting of product descriptions and photos
Each year, over 2/3 of U.S. adults order from a catalog
Direct mail: A brochure/pamphlet offering a specific good/service at one point in time
Considered junk mail, you should shred them!!!
Try to find creative ways to get ppl to open it |
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Definition
Direct marketing conducted over the telephone
Consumers don’t like this. Much more effective for the business market.
Cheaper to call than send a rep, plus B2B are more receptive to callers |
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| Direct Response Advertising |
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Definition
Allows consumer to respond by immediately contacting the provider with questions or an order
DRTV & Infomercials |
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| Direct-response TV (DRTV)- |
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Definition
includes short commercials, infomercials, and the home shopping networks
Some items sell better through direct response tv than others, exercise equipment sells well |
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Definition
| usually 30 mins or longer commercials. Usually focusing on demonstrating the product. |
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Promotional and other e-commerce activities transmitted over mobile phones/devices
Predicted that sales will increase to 24 billion by 2015
As more ppl get smartphone, m-commerce gets more sophisticated |
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Term
| Personal Selling: Adding the personal touch to the marketing mix |
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Definition
Occurs when a company representative interacts directly with a prospect or customer- Generally to share info about a product or service.
It has the highest cost per contact in the promotion mix.
Use the “personal touch” to get sales.
Sales ppl are considered the eyes and ears of the company
*Very beneficial for expensive & complex purchases
Can be a great career path, many CEOs began their career in sales |
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Term
| Factors that influence a firm's emphasis on personal selling |
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Definition
Personal selling is best when:
A push strategy is used-must provide info that makes ppl want to carry ur product
If the customer is very large:
Important b/c you have to keep them happy
Expensive: makes ppl feel better about buying big purchases
Personalized: make sure it is done right
Trade-in: make sure both parties are on the same page |
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| Personal selling is Not appropriate in all situations |
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Definition
Sometimes use inside sales reps to take orders.
Ex. Personal selling for faxers, inside sales for buying toner
Avg cost of sales call $360 |
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| Technology and Personal Selling |
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Definition
Numerous technologies help enhance the selling effort:
Specialized software
Partner relationship management (PRM)
Teleconferencing, videoconferencing, and improved corporate Web sites
Voice-over Internet protocol (VoIP)
Assorted wireless technologies |
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Term
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Definition
Order taker: waits for a customer to initate a transaction ex in-store sales rep, someone at a 1800 #
Technical specialist: support the selling effort. Goal is to help the overall sales process
Missionary salesperson: stimulate clients to buy, however they do not take orders ex. Pharmasudical rep
New business salesperson: anyone reponsible for creating new customers
Order getter: person directly responsible for a particular client’s business
Team selling: several of the other different types of the sales jobs work together |
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Definition
A form of personal selling that focuses on making an immediate sale. Therefore, not concerned about developing a relationship. Know as high pressure, or putting on the “hard sell”
Problem: leaves customers feeling resentful |
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Definition
Process of building long-term customers by developing mutually satisfying relationships that are win-win. In the end, both parties are happy. Helps build customer loyalty.
Involves: Securing (when you convert a prospect into someone who see the value of the product), Developing (ensure that both parties are adding to the relationship), Maintaining (building customer satisfaction) |
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Term
Creative Selling Process:
1. Prospect and Qualify |
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Definition
Prospecting: developing a list of potential customers (aka prospects or leads)
2 ways to go about it:
Cold calling- sales people are contacting with no prior introduction
Referrals- you have a connection. A current customer recommends another potential customer.
Qualifying: where we determine how likely a lead is to become a customer, how good are our prospects? |
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Creative Selling Process:
2. The Preapproach |
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Definition
Occurs after a meeting has been set up. Compiling as much background information about prospective customers as possible.
Gather:
customer’s purchase history, current needs, customer’s interests(to help make a connection).
Sources for info:
CRM, Website, business publications, and other sales reps(note: must be non-competing sales reps) |
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Creative Selling Process:
3. The approach |
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Definition
Contacting the prospect
Focuses on the first few minutes of the conversation. During which sales rep needs to build rapport(a connection).
Want to gather more information & make a good first impression***
To make a good first impression:
Knowing the information, being ontime, dress, etc |
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Term
Creative Selling Process:
4. The sales presentation |
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Definition
Laying out the benefits and added value of a firm’s product/service while also focusing on its advantages over the competition.
Want to encourage customer involvement, shows that they are engaged.
Listening skills are key in being a sales rep. |
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Creative Selling Process:
5. Handle Objections |
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Definition
Anticipating why a prospect is reluctant to make a commitment and responding with additional information or persuasive arguments.
Welcome objections |
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Creative Selling Process:
6. Close the Sale |
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Definition
Gaining the customer’s commitment in the decision stage using a variety of approaches:
Last-objection close:
Ask the customer if they are ready to buy, then address any of their concerns
Assumptive or minor-points close:
You act as if the purchase is inevitable by asking them to make a decision on a point related to the sale. Ex. What color would you like it in.
Standing-room-only or buy-now close:
Present that the opportunity might be missed if the consumer hesitates. Ex. Daily discount |
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Creative Selling Process:
7. The Follow-Up |
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Definition
Arranging for delivery, payment, and purchase terms
Sales rep must make sure customer receives the product and are satisfied. Wraps up one sale and bridges to the next. |
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Definition
| The process of planning, implementing, and controlling the personal selling function of a company. |
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| Setting Sales Force Objectives |
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Definition
Objectives state what the sales force is expected to accomplish and by when. Very specific. For the overall sales force.
Many take many forms:
Sales, customer retention, new customer development, training, reporting, etc.
Individual objectives:
Will vary for each sales person
2 types:
Performance objectives: readily measurable. Ex. Total individual sales
Behavioral objectives: things that the person is expected to accomplish. Ex. A certain # of sales calls. |
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| Creating a sales force strategy |
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Definition
Establishing structure and size of a firm’s sales force. Impacted by sales territories:
Setting sales territories is a major responsibility; several forms exist
Geographic sales force structure: most common, rep is given exclusive control over a specified geographic region.
Product-class sales territories: allows sales people to develop expertise within a particular product category.
Industry specialization: allows sales people to focus on the unique aspects of different industries.
Key/major accounts: focuses on high-volume, national accounts. May have mult. People working on it. |
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Term
| Recruit, Train, & Reward the Sales Force |
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Definition
Recruiting the right people:
Listening skills, someone with initiative, adaptable, as well as motivated and organized.
Sales training:
Teaches sale people about the firm, the products, and the skills needed to be successful
Professional development is ongoing
New products/technology is always coming out. Sales reps need to stay up to date |
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Definition
Paying salespeople well to motivate them
Straight commission plan: paid a % of sales. Problem: does not encourage non-selling activities
Commission-with-draw plan: allows the sales rep to take a loan based on future sales.
Commission plus base plan: paid a small base salary plus a % of your sales. Developed b/c probs with other plans
Straight salary plan: paid a straight amount, regardless of performance. Problem: not highly motivating
Quota-bonus plan: rep is paid a salary, but receives substantial bonuses once they reach a certain goal.
Sales contests can boost sales: encourage selling a specific good during a particular time period. Can give cash rewards, products, or trips.
Call reports aid supervisors: Call report- keeps track of the clients contacted and how the conversation went. Aid supervisors by keeping the reps accountable. |
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| Evaluating the Sales Force |
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Definition
Is the sales force meeting its objectives?
What are possible causes of failure?
Individual performance- look at objectives, see if they get the objectives, if not-why?
Expense accounts- to know how much we are spending- make sure spending is in line w/ company values. |
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| Key Forms of Direct Marketing |
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| Steps in the Creative Selling Process |
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