MKTG 101 Ch 18

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MKTG 101 Ch 18
2013-04-15 19:57:30
MKTG 101 18

MKTG 101 Ch 18
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  1. consumer sales promotion
    sales promotion activities targeting the ultimate consumers
  2. trade sales promotion
    sales promotion activities targeting a marketing channel member, such as a wholesaler or retailers
  3. Advertising offers:
    the consumer a reason to buy
  4. Sales promotion offers:
    an incentive to buy
  5. Loyal customers
    • Type of Buyer: People who buy your product most of all of the time. 
    • Desired Results: Reinforce behavior, increase consumption, change purchase timing
    • Sales Promotion Examples: Loyalty marketing programs, such as frequent buyer cards or frequent shoppers club. Bonus packs that give loyal consumers an incentive to stock up or premiums offered in return for proofs of purchase.
  6. Competitor's Customers
    • Type of Buyer: People who buy a competitor's product most or all of the time
    • Desired Results: Break loyalty, persuade to switch to your brand
    • Sales Promotion Examples: Sampling to introduce your product's superior qualities compared to their brand. Sweepstakes, contests, or premiums that create interest in the product
  7. Brand Switchers
    • Type of Buyer: People who buy a variety of products in the category
    • Desired Results: Persuade to buy your brands more often
    • Sales Promotion Examples: Any promotion that lowers the price of the product, such as coupons, price-off packages, and bonus packs.
  8. Price buyers:
    • Type of Buyer: People who consistently buy the least expensive products
    • Desired results: Appeal with low prices or supply added value that makes price less important
    • Sales Promotion Examples: Coupons, price-off packages, refunds, or trade deals that reduce the price of the brand to match that of the brand that would have been purchased.
  9. Coupon
    A certificate that entitles consumers to an immediate price reduction when the product is purchased. A good way to encourage product trial and repurchase.
  10. Rebate
    a cash refund given for the purchase of a product during a specific period.
  11. Premium
    an extra item offered to the consumer, usually in exchange for some proof that the promoted product has been purchased.
  12. Loyalty marketing Programs
    a promotional program designed to build long term mutually beneficial relationships between a company and its key customers
  13. Frequent buyer program
    a loyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good or service.
  14. Sampling
    a promotional program that allows the consumer the opportunity to try a product or service for free.
  15. Point-of -purchase (P-O-P) display
    Promotional display set up at the retailers location to build traffic, advertise the product, or induce impulse buying.
  16. Trade Allowance
    a price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers.
  17. 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.
  18. Advantages of Personal selling
    • 1. provides detailed explanation or demo of product. good for complex products.
    • 2. sales message can be varied
    • 3. directed to targeted customers with no spill
    • 4. costs can be controlled by adjusting sales force size
    • 5. more effective than any other types
  19. Advertising and sales selling more important if:
    • 1. the product has a low value
    • 2. standardized product
    • 3. many customers
    • 4. product easy to understand
    • 5. cust geographically dispersed
    • Examples: soap, magazine, subscriptions, cotton t-shirts
  20. Personal selling is more important if:
    • 1. The product has a high value
    • 2. there are few customers
    • 3. the product technically complex.
    • 4. Customers are concentrated.
    • Examples: insurance policies, custom windows, airplane engines.
  21. Relationship selling (consultative selling)
    a sales practice that involves building, maintaining with customers in order to develop long term satisfaction through mutually beneficial partnerships.
  22. Traditional Personal Selling
    • 1. Selling products (good and services)
    • 2. focus on closing sales
    • 3. limited sales planning
    • 4. spend most contact time telling customers about product
    • 5. "lone wolf" approach to the account
    • 6. Proposals and presentations based on pricing and product features
    • 7. Sales follow up is short term, focused on product delivery
  23. Consultative (relationship selling)
    • 1. sell advice, assistance, and counsel
    • 2. focus on improving the customer's bottom line
    • 3. spend most contact time attempting to build a problem solving environment with the customer
    • 4. conduct discovery in the full scope of the customers operations
    • 5. team approach to the account
    • 6. proposals and presentations based on profit impact and strategic benefits to the customer
    • 7. Sales follow up is long term, focused on long term relationship enhancement.
  24. Sales Process (sales cycle)
    the set of steps a salesperson gores through in a particular organization to sell a particular product or service.
  25. Lead Generation (prospecting)
    identification of those firms and people most likely to buy the sellers offerings
  26. Referral
    a recommendation to a salesperson from a customer or business associate
  27. Networking
    a process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations
  28. Cold Calling
    a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status
  29. Lead Qualification
    determination of a sales prospects (1) recognized need, (2) buying power, and (3) receptivity and acceptability
  30. Preapproach
    a process that describes the "homework" that must be done by a salesperson before he or she contacts a prospect
  31. Needs assessment
    a determination of the customer's specific needs and wants and the range of option the customer has for satisfying them
  32. Sales Proposal
    a formal written document or professional presentation that outlines how the salesperson's product or service will meet or exceed the prospects needs
  33. Sales presentation
    a formal meeting in which the sales person presents a sales proposal to a prospective buyer.
  34. Negotiation
    the process during which both the salesperson and the prospect offer special concession in a attempt to arrive at a sales agreement
  35. Follow up
    the final stop of the selling process, in which the sales person ensures delivery schedules are net, goods or services perform as promised and the buyers' employees are properly trained to use the products.