Exam 18: Personal Selling and Sales Promotion
In recent years the proportion of promotional dollars spent on sales promotion has
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Discuss the major factors to consider when designing sales territories.
When deciding on territories, sales managers must consider size, geographic shape, routing, and scheduling.Several factors enter into the design of a sales territory's size and geographic shape. First, sales managers must construct territories that allow sales potential to be measured. Sales territories often consist of several geographic units, such as census tracts, cities, counties, or states, for which market data are obtainable. Sales managers usually try to create territories with similar sales potential, or requiring about the same amount of work. If territories have equal sales potential, they will almost always be unequal in geographic size.The geographic size and shape of a sales territory are the most important factors affecting the routing and scheduling of sales calls. Next in importance is the number and distribution of customers within the territory, followed by sales call frequency and duration. Those in charge of routing and scheduling must consider the sequence in which customers are called on, specific roads or transportation schedules to be used, number of calls to be made in a given period, and time of day the calls will occur.
Differentiate between team selling and relationship selling.
Team selling involves the salesperson joining with people from the firm's financial, engineering, and other functional areas. Team selling is advantageous in situations calling for detailed knowledge of new, complex, and dynamic technologies like jet aircraft and medical equipment. It can be difficult, however, for highly competitive salespersons to adapt to a team selling environment.Relationship selling, also known as consultative selling, involves building mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time. Relationship selling involves finding solutions to customers' needs by listening to them, gaining a detailed understanding of their organizations, understanding and caring about their needs and challenges, and providing support after the sale.
Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. He explains that he never really figured out what the purchasing agent was looking for. Camilla, a sales trainer for another firm, hands Tony a book on
Sydney won a hot-air balloon ride and dinner for two for being the top revenue-producing mortgage loan officer at her company for the month of October. This contest exemplifies a company's efforts at
The difference between consumer sales promotion methods and trade sales promotion methods is
The stage of the personal selling process in which the salesperson attempts to make a favorable impression, gather information about the customer's needs and objectives, and build a rapport with the prospective customers is called
The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the
Demonstrations in retail stores are not used widely because they are expensive.
Tim has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to
When a salesperson asks the customer to buy the product several times throughout the sales presentation in an effort to uncover hidden objections, it is called
A marketer's selection of sales promotion techniques is influenced by the state of the competitive environment.
Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called
Which of the following statements is true about personal selling?
To equalize the workload, a sales manager divides a geographic market into sales territories of equal size according to land area.
Scenario 18.1 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 18.1. Sean is developing his list of potential new retail customers by accessing the yellow pages online. Here he finds the contact information for every motorcycle store in the 48 contiguous states, and eliminates those who currently are his customers. Sean is involved in which step of the personal selling process?
During the personal selling process, a salesperson, if possible, should handle objections when
Heinz uses various techniques such as coupons, free samples, and consumer contests to encourage consumers to try its products. All of these marketing activities are considered
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