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| the three basic sales tasks are order-getting, order-taking, and supporting |
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| concerned with establishing relationships with new customers and developing new business |
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| seeking possible buyers with a well-organized sales presentation designed to sell a good, service, or idea |
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| Salespeople who sell to the regular or established customers, complete most sales transactions, and maintain relationships with their customers |
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| The routine completion of sales made regularly to target customers |
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Healp the order-oriented salespeople, bu they don't try to get orders themselves; enhancing relationship with customer and getting sales in the long run
Three types: Missionary salespeople, technical specialists, customer service reps |
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| (merchandisers or dealers) supporting salespeople who work for producers; can increase sales by giving promotion to a customer that makes the product stand out of the many |
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| supporting salespeople who proide technical assistance to order-oriented salespeople; expert that knows the product applications and details |
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| Work with customers to resolves problems that arise with a purchase (usually after a purchase) |
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| When different people work together on a specific account |
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Salespeople who use the telephone to "call" on customers or prospects
Advantage: saves time and money for the seller & gives the customers a fast and easy way to solve a purchasing problem |
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Geographic area that is the responsibility of one salesperson or several working together
Advantage: reduce travel time, cost of sales calles, and reduce confusion about who has responsibility for a set of sales tasks |
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| Written statement of what a salesperson is expected to do; clear guideline about what selling tasks the job involves |
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| Specific sales or profit objective a salesperson is expected to achieve |
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| Following all the leads in the target market to identify potential customers |
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| Effort to make a sale or address a customer's problem |
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| Prepared Sales Presentation approach |
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Definition
Memorized presentation that is not adapted to each
individual customer
sales reps keeps trying until there’s a close (salesperson’s request for an order)
weakness: treating all protential customers alike |
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| consultative selling approach |
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Definition
Developing a good understanding of the individual customer's needs before trying to close the sale
- salesperson questions and listens carefully to understand the customer’s needs
type of problem-solving approach -> also called the need-satisfaction approach
- takes time and skill |
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| Starts with a prepared presentation outline and guide customer through logical steps to a final close |
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| tries to develop primary demand for a product cetegory rather than demand for a specific brand |
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Tries to develop selective demand for a specific brand
Two types: Diret and Comparative advertising |
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| aime for immediate buying action & indirect: points out product advantages to affect future buying decisions |
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| Making specific brand comparisons (using actual product names) |
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| tries to keep the product's name before the public |
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| Institutional advertising |
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| Promotes organization's image, reputation, or ideas rather than a spcific product |
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| price reducations to firms further along in the channel to encourage them to advertise or promote firm's product locally |
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| producers sharing in the costs of ads with wholesalers or retailers |
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| what the words and illustrations should communicate |
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| specialists in planning and handling mass-selling details for advertisers |
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| amount of money that is charged for "something' of value |
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| sets a specific level of profit as an objectice |
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| Profit Maximization Objective |
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| Seeks to get as much profit as possible |
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| Sales-oriented Objectives |
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| seeks some level of unit sales, dollar sales, or share of market without referring to profit |
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| don't rock the pricing bost objectives to stabilize prices, meet comptetition or even avoid competition (common when total market is not growing) |
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| aggresive action on one or more of the P's other than price (Ex: Zappos offers enormous selection of shoes, excellent customer services, etc) |
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| consciously set prices; important becauses it helps achieve objectives |
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| offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities |
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| offering the same product and quantities to different customers as different prices |
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| tries to sell the top (skim the cream) of a market at a high price before aiming at more price-sensitive customers; maximizes profits during intro stage |
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| Penetration Pricing Policy |
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| Tries to sell the whole market at one low price |
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| Introductory Price Dealing |
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| temporary price cuts; speeds new products into a market and gets customers to try them (low prices to encourage sales and then raise prices to optimize prices) |
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| prices final customers or users are normally asked to pay for products |
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| reductions from list prices given by a seller to buyers who either give up some marketing function or provide the function themselves |
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| discounts offered to encourage customers to buy in larger amounts |
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| purchase over a given period (usually increases as the amount purchase increases) - encourages repeat buying (buying large quantities although indivudal orders may be smaller) |
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| Noncumulative Quantity Discounts |
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| applies only to individual orders- encourages larger orders but do not tie a buyer to seller after one purchase |
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| Discounts offered to encourage buyers to buy earlier than present demand requires |
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| payment for the face value of the invoice is due immediately |
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| reductions in price if buyer pay their bills quickly |
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| Buyer can take a 2% discount off face value of invoice if invoice is paid within 10 days or the full face value is due within 30 days |
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| Trade (Functional) Discount |
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| List price reduction given to channel members for the job they are going to do |
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| temporary discount from the list price |
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| Setting a low list price rather than relynig on frequent sales, discounts, or allowances (ex: supermarkets) |
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| given to final consumers, customers, or channel members for doing something or accepting less of something |
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| price reductiones given to firms in the channel to encourage them to advertise or otherwise promote the supplier's products locally |
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| Stocking allowances (slotting allowances) |
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| given to an intermediary to get shelf space for a product |
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| Push Money (prize money) Allowances |
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| (PMs or spiffs) given to retailers by manufactuers or wholesalers to pass on the retailers' salesclerks for aggressively selling certain items |
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| Price reduction given for used products when similar new products are bought |
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| dollar amount added to thecost of products to get the selling price |
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| percentage of selling price that is added to the cost to get the selling price |
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| the sequence of markups firms use at different levels in a channel (overall price increases because every firms needs to make a profit and so each firm marks up the price |
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| the number of times the average inventory is sold in a year |
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| Adding a reasonable markup to the average cost of a product |
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| Sum of costs that are fixed in total no matter how much is produced |
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| sum of changing expenses that are closely related to output |
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| sum of total fixed and total variable costs |
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| obtained by dividing total cost by the related quantity |
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| Average Fixed Cost (per unit) |
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| Dividing total fixed cost by the related quantity |
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| Average variable cost (per unit) |
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| dividing total variable cost by the related quantity |
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| adding a target return to the cost of a product (whether it's a percentage return or a specific total dollar return) |
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| evaluate whether the firm will be able to cover all its costs with a particular price |
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| quantity where the firm's total cost will just equal its total revenue |
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| Fixed cost contribution per unit |
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| assumed selling price per unit minus the variable cost per unit |
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| Setting prices that will capture some of what customers will save by substituting the firms' product for the one currently being used |
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| setting some very low prices (real bargains) to get customers into retail stores |
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| setting some very low prices to attract customers but trying to sell more expensive models or brands once the customer is in the store |
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| setting prices that have special appeal to target customers |
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| setting prices that end in certain numbers |
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| setting a few price levels for a product line and then marking all items at these prices |
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| setting an acceptable final consumer price and working backward to what a producer can charge; market-minus pricing (working backwards to see what the producer can produce) |
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| setting a rather high price to suggest high quality or high status |
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