Page 541 - Foundations of Marketing

508 Part 6 | Promotion Decisions

7. Identify several characteristics of effective sales 11. What major factors should be taken into account when
objectives. designing the size and shape of a sales territory?
8. How should a sales manager establish criteria for 12. How does a sales manager, who cannot be with each
selecting sales personnel? What do you think are the salesperson in the field on a daily basis, control the
general characteristics of a good salesperson? performance of sales personnel?
9. What major issues or questions should management 13. What is sales promotion? Why is it used?
consider when developing a training program for the 14. For each of the following, identify and describe three
sales force? techniques and give several examples: (a) consumer
10. Explain the major advantages and disadvantages sales promotion methods and (b) trade sales promotion
of the three basic methods of compensating sales- methods.
people. In general, which method would you 15. What types of sales promotion methods have you
prefer? Why? observed recently? Comment on their effectiveness.

Marketing Applications

1. Briefly describe an experience you have had with a situations, and explain why the method would be
salesperson at a clothing store or an automobile dealer- appropriate.
ship. Describe the steps the salesperson used. Did the a. A golf ball manufacturer wants to encourage retail-
salesperson skip any steps? What did the salesperson do ers to add a new type of golf ball to current product
well? Not so well? Would you describe the salesperson offerings.
as an order getter, an order taker, or a support salesper- b. A life insurance company wants to increase sales of
son? Why? Did the salesperson perform more than one its universal life products, which have been lagging
of these functions? recently (the company has little control over sales
2. Leap Athletic Shoe Inc., a newly formed company, is activities).
in the process of developing a sales strategy. Market c. A light bulb manufacturer with an overproduction of
researchers have determined that sales management light bulbs wants to encourage its grocery store chain
should segment the market into five regional ter- resellers to increase their bulb inventories.
ritories. The sales potential for the North region is
5. In the cosmetics industry, sales promotions reign
$ 1.2 million; for the West region, $ 1 million; for the
supreme. You manufacture and market organic skin
Central region, $ 1.3 million; for the South Central
creams, which are sold nationwide at your own “bou-
region, $ 1.1 million; and for the Southeast region,
tiques” inside various department stores. You are
$ 1 million. The firm wishes to maintain some con-
considering two different promotions for your newest
trol over the training and sales processes because of
lotion, which retails for $ 19.99 . The first is providing
the unique features of its new product line, but Leap
free samples in select stores. Each sample will cost
marketers realize that the salespeople need to be fairly
about 45 cents per customer. After carefully examining
aggressive in their efforts to break into these mar-
market research, you estimate that 15,000 customers
kets. They would like to provide the incentive needed
will try the free sample, with 35 percent opting to pur-
for the extra selling effort. What type of sales force
chase the product. The second promotion is a dollar-off
compensation method would you recommend to
coupon that provides a discount on select products. The
Leap? Why?
coupons would be sent to all 100,000 current customers
3. Consumer sales promotions aim to increase sales of a
on your mailing list at a cost of 53 cents per customer.
particular retail store or product. Identify a familiar type
In the past, the coupons have had a 13 percent redemp-
of retail store or product. Recommend at least three
tion rate. Which promotion would you adopt based
sales promotion methods that could effectively promote
upon the information provided? What is some addi-
the store or product. Explain why you would use these
tional information that could help you in choosing the
methods.
best option?
4. Producers use trade sales promotions to encour-
6. Develop your analytical and communication skills using
age resellers to promote their products more effec-
the Role-Play Exercises online at
tively. Identify which method or methods of sales
www.cengagebrain.com.
promotion a producer might use in the following
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