Page 540 - Foundations of Marketing

Personal Selling and Sales Promotion | Chapter 17 507

Recruiting and selecting salespeople involve attracting and Marketers use sales promotion to identify and attract new
choosing the right type of salesperson to maintain an effective customers, introduce new products, and increase reseller
sales force. When developing a training program, managers inventories.
must consider a variety of dimensions, such as who should Sales promotion techniques fall into two general cat-
be trained, what should be taught, and how training should egories: consumer and trade. Consumer sales promotion
occur. Compensation of salespeople involves formulating methods encourage consumers to patronize specific stores
and administering a compensation plan that attracts, moti- or try a particular product. These sales promotion meth-
vates, and retains the right types of salespeople. Motivated ods include coupons; cents-off offers; money refunds and
salespeople should translate into high productivity. Managing rebates; frequent-user incentives; point-of-purchase displays;
sales territories focuses on such factors as size, shape, rout- demonstrations; free samples and premiums; and consumer
ing, and scheduling. To control and evaluate sales force per- contests, games, and sweepstakes.
formance, sales managers use information obtained through Trade sales promotion techniques can motivate resell-
salespeople’s call reports, customer feedback, and invoices. ers to handle a manufacturer’s products and market them
aggressively. These sales promotion techniques include buy-
6. Explain what sales promotion activities are ing allowances, buy-back allowances, scan-back allowances,
and how they are used. merchandise allowances, cooperative advertising, dealer list-
Sales promotion is an activity or a material (or both) that ings, free merchandise, dealer loaders, premium (or push)
acts as a direct inducement, offering added value or incen- money, and sales contests.
tive for the product to resellers, salespeople, or consumers.

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Key Concepts

personal selling 482 recruiting 492 money refunds 501 buying allowance 505
prospecting 484 straight salary rebates 502 buy-back allowance 505
approach 486 compensation plan 495 point-of-purchase (POP) scan-back allowance 505
closing 487 straight commission materials 503 merchandise allowance 505
order getters 488 compensation plan 495 demonstrations 503 cooperative advertising
order takers 488 combination compensation free samples 503 505
support personnel 489 plan 495 premiums 503 dealer listings 505
missionary salespeople 489 sales promotion 499 consumer contests 504 free merchandise 505
trade salespeople 489 consumer sales promotion consumer games 504 dealer loader 505
technical salespeople 489 methods 499 consumer sweepstakes 504 premium money (push
team selling 490 coupons 500 trade sales promotion money) 506
relationship selling 490 cents-off offers 501 methods 504 sales contest 506

Issues for Discussion and Review

1. What is personal selling? How does personal selling dif- 4. How does a salesperson find and evaluate prospects?
fer from other types of promotional activities? Do you consider any of these methods to be ethically
2. What are the primary purposes of personal selling? questionable? Explain.
3. Identify the elements of the personal selling pro- 5. Are order getters more aggressive or creative than order
cess. Must a salesperson include all these elements takers? Why or why not?
when selling a product to a customer? Why or 6. Why are team selling and relationship selling becoming
why not? more prevalent?

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