Marketing Principles - Chapter 16

referrals

The best source of leads.

qualified prospects can be qualified by:

looking at their financial ability, volume of business, special needs, location, and possibilities for growth.

prospecting

The stage when salespeople identify qualified potential customers.

learning as much as possible about qualified prospects

Most likely next step in the selling process after qualifying leads.

Preapproach

The second step where the salesperson learns as much as possible about the organization and its buyers before calling on a prospect.

approach

The method when the salesperson has researched the prospect and plans how to open the first meeting.

presentation and demonstration

The stage where the goal is to show how the company's products fit the customer's needs.

listening

One of the most valued qualities that buyers like in salespeople.

closing

Asking for the order to secure the deal.

follow-up

The stage of the selling process after closing the sale to ensure customer satisfaction.

value selling

Practicing to deliver superior customer value and capturing a fair return on that value.

sales promotion

Short-term incentives to encourage the purchase or sale of a product or service.

sales promotions

Examples include email blasts, flash sales, BOGOs, door-buster sales, price packs, and loyalty bonuses.

profit margins

There is no increase in profit margins despite promotional discounts.

promotion pressure/clutter

Weakens a promotion's ability to trigger an immediate purchase.

final buyers

Sales promotions targeted towards business customers, retailers, wholesalers, and final buyers.

price packs

Offer consumers savings off the regular price of a product.

premiums

Goods offered either free or at low cost as an incentive to buy the main product.

sweepstakes

Calls for consumers to submit their names for a drawing.

point of purchase promotions

Displays and setups placed where buying happens to grab attention and trigger impulse buying.

Trade promotions

Targeted toward retailers and wholesalers.

frequency marketing programs

Structured loyalty programs that reward customers for repeat purchases.

sales promotion returns

Questions to assess the effectiveness of a sales promotion regarding customer retention and brand engagement.

Once determining the method of approach and timing, call objectives include:

1. Qualify the prospect 2. Gather information 3. Make the immediate sale.

A strong close includes:

1. Ask for the order, review points of agreement, or write up the order; 2. Gain clarity on chosen model, encourage the deal now; 3. Offer special reasons (lower price, value-add, additional service).

Factors contributing to the rapid growth of sales promotion in consumer markets

1. Internal pressure to increase current sales; 2. More competition and increasingly less differentiation; 3. Reduced advertising efficiency from rising costs, media clutter, and legal considerations; 4. Consumers have become deal oriented.

Objectives for trade promotions include getting retailers to

:1. Stock new items; 2. Carry more inventory; 3. Promote manufacturers' products; 4. Buy sooner; 5. Gain more shelf space.

Questions to measure the returns on sales promotion

1. Can we hold onto these new customers and purchases? 2. Did the promotion attract new customers or more purchasing from current customers? 3. Did the promotion engage consumers and enhance our brand's positioning? 4. Will the long-run customer relationship and sales gains from the promotion justify its costs?