| A | B |
|---|
| Consumer sales promotion | sales promotion activities targeting the ultimate consumer |
| trade sales promotion | sales promotion activities targeting a marketing channel member, such as a wholesaler or retailer |
| Sales promotion | short term incentives to encourage sales |
| frequent buyer programs | Effective tool for strengthening brand loyalty (Kroger Plus Card) |
| Coupon | a certificate that entitles consumers to an immediate price reduction when they buy the product |
| Freestanding Insert (FSI) | Promotional inserts found in newspapers |
| Rebates | a cash refund given for the purchase of a product during a specified period. The FTC estimates that only half of rebates are actually collected |
| Premium | an extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product |
| Loyalty marketing program | a promotional program designed to build long-term, mutually beneficial relationships between a company and its key customers |
| Frequent buyer programs | a loyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good |
| Sampling | a promotional program that allows the consumer the opportunity to try a product or service for free |
| Point-of-purchase (p-o-p) promotion | a promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying |
| trade allowance | a price reduction offered by a manufacturer to an intermediary such as a wholesaler or a retailer |
| push money | money offered to channel intermediaries to encourage them to "push" products - that is, to encourage other members of the channel to sell the products |
| Personal Selling is appropriate when: | Product has high value, product is custom made, there are few customers, product is technically complex, customers are concentrated |
| Relationship selling (consultative selling) | a sales practice that involves building, maintaining, and enhancing interactions with customer in order to develop long-term satisfaction through mutually beneficial partnerships |
| What are the steps in the selling process? | 1. Generate leads 2. Qualify Leads 3. Probe Customer needs 4. develop solutions 5. handle objections 6. close the sale 7. follow up |
| sales process (sales cycle) | the set of steps a salesperson goes through in a particular organization to sell a particular product or service |
| Step 1: Lead generation (prospecting) | identification of those firms and people most likely to buy the seller's offerings |
| referral | a recommendation to a salesperson from a customer or business associate. Generally about 10x more effective than cold calling |
| Networking | a process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations |
| cold calling | a form of lead generation in which the salesman approaches potential buyers without any prior knowledge of the prospects' needs or financial status |
| Step 2: Lead Qualification | determination of a sales prospect's 1. Recognized need 2. buying power 3. receptivity and accessibility |
| Prequalification Systems | Can save a salesman a lot of time and resources when qualifying leads |
| Step 3: Approaching the customer and probing needs | Preapproach, approach, and needs assessment |
| Preapproach | a process that describes the "homework" that must be done by a salesperson before he can contact a prospect |
| Needs assessment | a determination of the customer's specific needs and wants and the range of options the customer has for satisfying them |
| Customer Profiles | provides sales reps with a computerized and effective method of collecting customer information for use during the entire sales process. |
| Step 4: Developing and Proposing Solutions | the salesperson develops a solution, or possibility of several solutions, in which the salesperson's product or service solves the client's problems or meets a specific need |
| Sales proposal | a formal written document or professional presentation that outlines how the salesperson's product or service will meet or exceed the prospect's needs |
| Sales Presentation | a formal meeting in which the salesperson presents a sales proposal to a prospective buyer |
| Types of Presentations: | formula selling, stimulus response, successive commitment, needs satisfaction, combination |
| Step 5: Handling Objectives | View objections as requests for information; anticipate specific objections; be aware of competitor's products |
| Formula selling | a memorized script delivered to all people (EG girl scout cookies) |
| Stimulus response | If you ask the right question at the right time, you will get a positive reaction. (EG would you like to value size that? Fuck yeah I would) |
| Successive Commitment | A series of questions with a yes or no response that generally force you to respond with a yes. Similar to a frog in boiling water that won't jump out if its slowly boiled |
| negotiation | the process during which both the salesperson and the prospect offer special concessions in an attempt to arrive at a sales agreement |
| Step 6: Closing the Sale | Look for customer signals; negotiate; provide incentives; trial/presumptive close |
| Step 7: Follow Up | 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 buyers' employees are properly trained to use the products |
