Introduction to Marketing Chapter 18

Personal Selling
Paid personal communication that attempts to inform customers and persuade them to purchase products in an exchange situation (most expensive)
Developing a database of potential customers
The manner in which a salesperson contacts a potential customer
The stage in the personal selling process when the salesperson asks the prospect to buy the products
Order getters
Sell to new customers and increase sales to current customers, also called creative selling
Order takers
Primarily seek repeat sales; generate the bulk of a firms total sales
Support personnel
Staff members who facilitate selling but are not involved solely with making sales
Missionary salespeople
assist producers customers in selling to their own customers
Team selling
Using a team of experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process
Relationship selling
Building mutually beneficial long-term associations with a customer through regular communications over prolonged periods o time
A process by which the sales manager develops a list of qualified applicants for sales positions
Straight salary compensation plan
Salespeople are paid a specific amount, regardless of effort
Straight commission compensation plan
Compensation determined solely by sales for a given period
Combination compensations plan
Salespeople are paid a fixed salary plus commission based on sales volume
Sales promotion
An activity and/or material that acts as an inducement to resellers, salespeople, or consumers
Consumer sales promotion methods
encourage consumers to patronize specific stores to try particular products
Written price reductions used to encourage consumers to try specific products
Cents-off offers
Buyers pay a certain amount less
Money refunds
Customers are mailed a specific amount of money with a proof-of-purchase
Customers are sent a specified amount of money for making a purchase (Verizon phones send out a $50 …)
Point-of-purchase materials
signs, window displays, counter pieces, etc. designed to attract attention and inform customers
Sales promotion that show customers how the product works
Free samples
Given out to stimulate trial of the product, increase sales, and improve distribution
Items offered as a bonus for purchasing a product
Consumer contests
Individuals compete for prizes based on analytical or creative skills
Consumer games
Individuals compete for prizes based on chance
Consumer sweepstakes
Entrants include their names in a drawing for a prize
Trade sales promotion methods
Attempt to persuade wholesalers and retailers to carry and aggressively market a product
Buying allowance
A temporary price reduction offered to resellers for purchasing set quantities of a product
Buy-back allowance
A sum of money a producer gives to a reseller for each unit the reseller buys after a promotional deal expires
Scan-back allowance
A manufacturers reward to retailers based on the number of items scanned
Merchandise allowance
A manufacturers agreement to pay resellers certain amounts of money for providing special promotional efforts
Cooperative advertising
An arrangement in which a manufacturer agrees to pay a certain amount of a retailers media costs for advertising the manufacturers products
Dealer listings
Advertisements promoting a products and identifying participating retailers that sell the product
Free merchandise
offered as an incentive for purchasing a stated quantity of products
Dealer loader
A gift given to a retailer who purchases a specified quantity of merchandise (VS handbag)
Premium money
Additional compensation to salespeople offered by the manufacturer as an incentive to push a line of products (Push money)
Sales contest
Designed to motivate distributors, retailers, and sales personnel by recognizing outstanding achievements

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