Page 539 - Foundations of Marketing

506 Part 6 | Promotion Decisions

essential display parts as premiums. For example, a manufacturer might design a display that
includes a sterling silver tray as a major component and give the tray to the retailer. Marketers
use dealer loaders to obtain new distributors and push larger quantities of goods.

Premium Money

Premium money (push money) is additional compensation offered by the manufacturer to
salespeople as an incentive to push a line of goods. This method is appropriate when personal
selling is an important part of the marketing effort; it is not effective for promoting products
sold through self-service. Premium money often helps a manufacturer obtain a commitment
premium money (push
from the sales force, but it can be very expensive. The use of this incentive must be in compli-
money) Extra compensation
to salespeople for pushing a ance with retailers’ policies as well as state and local laws.
line of goods
sales contest A sales Sales Contest
promotion method used to
motivate distributors, retailers, A sales contest is designed to motivate distributors, retailers, and sales personnel by recog-
and sales personnel through nizing outstanding achievements. To be effective, this method must be equitable for all indi-
recognition of outstanding viduals involved. One advantage is that it can achieve participation at all distribution levels.
achievements Positive effects may be temporary, however, and prizes are usually expensive.

Chapter Review

1. Understand the nature of personal selling. into two categories: inside order takers and field order takers.
Sales support personnel facilitate selling, but their duties usu-
Personal selling is the process of informing customers and
ally extend beyond making sales.
persuading them to purchase products through paid personal
communication in an exchange situation. The three general 4. Recognize new types of personal selling.
purposes of personal selling are finding prospects, persuad-
ing them to buy, and keeping customers satisfied. The three types of support personnel are missionary, trade,
and technical salespeople. The roles of salespeople are
2. Describe the basic steps in the personal changing, resulting in an increased focus on team selling
selling process. and relationship selling. Team selling involves the salesper-
son joining with people from the firm’s financial, engineer-
Many salespeople, either consciously or unconsciously,
ing, and other functional areas. Relationship selling involves
move through a general selling process as they sell products.
building mutually beneficial long-term associations with a
In prospecting, the salesperson develops a database of poten-
customer through regular communications over prolonged
tial customers. Before contacting prospects, the salesperson
periods of time.
conducts a preapproach that involves finding and analyzing
information about prospects and their needs. The approach is 5. Understand sales management decisions and
the manner in which the salesperson contacts potential cus- activities.
tomers. During the sales presentation, the salesperson must
attract and hold the prospect’s attention to stimulate interest Sales force management is an important determinant of a
and desire for the product. If possible, the salesperson should firm’s success because the sales force is directly responsible
handle objections as they arise. During the closing, the sales- for generating the organization’s sales revenue. Major deci-
person asks the prospect to buy the product or products. After sion areas and activities are establishing sales force objec-
a successful closing, the salesperson must follow up the sale. tives; determining sales force size; recruiting, selecting,
training, compensating, and motivating salespeople; man-
3. Identify the types of sales force personnel. aging sales territories; and controlling and evaluating sales
In developing a sales force, marketing managers consider force performance.
which types of salespeople will sell the firm’s products most Sales objectives should be stated in precise, measur-
effectively. The three classifications of salespeople are order able terms and specify the time period and geographic areas
getters, order takers, and support personnel. Order getters involved. The size of the sales force must be adjusted occa-
inform both current customers and new prospects and per- sionally because a firm’s marketing plans change along with
suade them to buy. Order takers seek repeat sales and fall markets and forces in the marketing environment.

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