Exam 19: Personal Selling and Sales Promotion

Scenario 19.1 Use the following to answer the questions. Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to various motorcycle retail stores around the country. Jafrum does not manufacture these items, but sells them to other retailers and also sells its merchandise through its website. Sean Thompson is one of the salespeople for Jafrum, and is responsible for obtaining new customers, increasing sales to current customers, and visiting the retail stores throughout the country. Recently, he has been given the sales objective from Jafrum's management to increase sales dollars by 15% in the coming year by adding new customers. Sean's current compensation is based on a $1,000 per month draw, plus 5% of all sales over $100,000. His salary last year totaled $42,000. Management has given Sean the choice of going to a compensation plan where he will earn 15% of all sales, but no draw. -Refer to Scenario 19.1. Sean selects several motorcycle stores who are not currently his customers. He then obtains and analyzes information about the current brands of motorcycle accessories they stock, their sales trends, and credit history. Sean is engaged in which of the following?

A marketer's selection of sales promotion techniques is influenced by the state of the competitive environment.

Demonstrations in retail stores are not used widely because they are expensive.

A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is available at Kmart and Walmart. This form of sales promotion is called a(n)

Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called

Many consumers redeem coupons only for products they normally buy.

The purpose of the ____ stage in personal selling is to determine customers' problems and questions about using the product.

Which of the following is most likely to stimulate customer loyalty?

The final stage of the selling process is

In recent years the proportion of promotional dollars spent on sales promotion has

Scenario 19.2 Use the following to answer the questions. The Presto Company manufactures several types of household appliances, including blenders, waffle makers, and home deep fryers. Presto sells its products to retail stores such as Kohl's, Macy's, and J.C. Penney's, through its own salesforce. Kerry Wilson is one of Presto's salespeople, and is responsible for stores headquartered in Region 1 of the U.S. Kerry has just come from a monthly meeting where she has been informed about the new stovetop grill that will be part of next season's lineup. Presto's marketing department has developed a promotional plan for the new grill and outlined that plan for the sales staff in the meeting. The promotional plan for the next 60 days will include television commercials which demonstrate the new grill, in-store rebates, and a customer contest for the best grilled sandwich recipe. In addition, Kerry and other members of the salesforce will be given a free grill for their own home use so they can become more familiar with the product. Presto is also offering a free trip to New York City for their staff salesperson who has the highest dollar in sales to his or her stores. To encourage the retail stores to push this product, Presto will offer the retail store a $5 discount for each grill that the store purchases after the 60-day promotion is over. -Refer to Scenario 19.2. Kerry and the other salesforce members are best described as a ____ sales force.

When Levi's agrees to pay JC Penney's money for providing television advertising and Sunday newspaper sales fliers emphasizing Levi's jeans, Levi's is offering

Personal selling is generally the most expensive element in the promotion mix.

Because salespeople are an expense to the company, yet they are the ones who generate revenues for the company, management must strive to achieve optimality in the size of its sales force.

Which of the following is not a reason why the proportion of promotional dollars spent on sales promotion has increased in recent years?

Sebastian, Kevin's sales manager, points out to him that his last shopper in the housewares department didn't seem interested or involved as he explained the new food processor to her. Sebastian suggests that Kevin use a(n) ____ as part of his presentation next time.

If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic size; this will cause the salespeople with larger territories to

Developing a list of potential customers is called prospecting.

A sales representative for Coca-Cola travels to various restaurants to determine how much syrup the customer needs for the coming period. This sales representative would be classified as a(n)

Garrett Almar tells a fellow buyer at Robins Wholesale Parts that the last salesperson who called on him before lunch was a real loser: "He has done a poor job of ____. He didn't even know what brands we carry or what types of retailers we service!"