Deck 19: The Global Marketplace 

Question 1

Briefly describe an experience you have had with a salesperson at a clothing store or an automobile dealership. Describe the steps the salesperson used. Did the salesperson skip any steps? What did the salesperson do well? Not so well? Would you describe the salesperson as an order getter, an order taker, or a support salesperson? Why? Did the salesperson perform more than one of these functions?

Answer 1

At the clothing store, the sales representative was quite young and energetic. He had complete knowledge about fabrics and designs. He was able to manage so many people by himself.
He listened to the customer's requirement patiently and showed them all sort of possible clothes in the store. Some customers were interested in buying clothes and others could not select but salesperson was behaving with all of them without any discrimination.
Following are the steps used by salesperson:
• Sales representative first greeted and asked customers' requirements.
• Customer was then approached by salesperson with few questions that would make customers friendly.
• As per the requirements, prospective customers were presented clothes till they are satisfied.
• If customers showed any concern, salesperson handled their queries and satisfied them with proper explanation.
• Customers were sold the product which suited their taste and need.
Yes, salesperson did not follow up with the clients because in an in store sale follow up is not possible.
Salesperson gave a very impressive presentation but did not overcome the queries so well.
The salesperson was an order taker because they did not run after customer to make a sale rather sold the product to regular customers. There is no creative selling required or performed in this case.
The salesperson was the owner of that clothing shop. So, he managed all the sales record and accounts of his business of his own.

Question 2

Identify the elements of the personal selling process. Must a salesperson include all these elements when selling a product to a customer? Why or why not?

Answer 2

The process of personal selling has majorly seven elements.
Prospecting: It is a starting step to make a database of all the prospective customers.
Pre approach: It's a research done by a salesperson before actually meeting the potential customers. They analyse the collected information about personal characteristics and product needs.
Approach: A way of contacting the prospects is approach. Salesperson should meet customers with manners.
Presentation preparation: Salesperson must be prepared with their presentation before meeting the customers. Without knowing anything about product, salesperson cannot convince or pursue customers.
Overcoming all the objections: The salesperson must tackle the situations and queries.
Ending sale: It is a final stage where in salesperson comes to direct point and asks customers to purchase their product.
Follow up: After closing the sale, salesperson checks whether the delivery of product was proper and customer is satisfied. They take feedback and references from customers.
Although the general steps are same, still different salesperson use different ways to sell product. The specific activities that are included in a selling process are different for salespeople, cultures and selling situations.

Question 3

What is sales promotion? Why is it used?

Answer 3

Sales promotion is a process or activity that used to directly influence consumers, resellers or sales person by offering incentives or added values for any brand or a product.
Sales promotion is used by marketers to increase advertising; personal selling or both.it helps in influencing customers to switch their brand preferences. Public relations are generally improved by sales promotions. Customers become more responsive towards price discounts and increasing profit margins.

Question 4

Direct Selling in China Booms in the 21st Century
What activities come to mind when you think of the words "evil," "cultish," and "superstitious"? In China, the government has used these words to describe direct selling. Direct selling, to the benefit of consumers, involves marketing products through face-to-face sales presentations at home or in the workplace. With social media, this concept has expanded to digital person-to-person communication. In countries like China, direct selling, or as it is often called network selling, often finds prospects through relatives, friends, and neighbors. While direct selling was once criticized by the government as being a questionable activity, consumers in China respect direct selling and are aware that direct sales companies' products are often among the highest quality products available to consumers. Today, Amway's Nutrilite is the number one selling dietary supplement and the official supplement of the Chinese Olympic team.
The Chinese government's negative attitude toward direct selling was the result of prior abuses through illegal pyramid schemes, which led to riots. Pyramid schemes occur when money is exchanged for recruiting other people into the scheme. Leaders of successful schemes make the most money, while those who fail to recruit others lose out. Multilevel marketing, on the other hand, is a very legitimate activity; it is not designed to exploit others, and support is given to sell products directly to consumers.
In 2006, direct selling was allowed in China under the provision that pyramid schemes and multilevel selling were forbidden. In fact, multilevel selling and pyramid sales in China can result in serious fines and even criminal prosecution. Although some people in China still hold negative views toward direct selling, for many women, direct selling has gone from "evil" to "empowering." Today, direct selling is flourishing in China, offering women a way to earn income and maintain enough flexibility to perform domestic responsibilities.
In countries where women are not usually able to start their own businesses, direct selling offers advancement opportunities and training. Additionally, despite the worldwide economic downturn, items like cosmetics and Tupperware remain in high demand, enabling direct selling companies to flourish. Direct selling has become a multi-billion dollar industry, with Avon as a leading seller of beauty and related products. Avon sets up retail stores and provides the products to salespeople to sell directly to consumers on the streets and in their neighborhoods. Although Amway is known for being a multilevel marketer in the United States, it sells its products through the same system. The success of both of these companies has been incredible. For example, Amway's Nutrilite vitamins and Artistry cosmetics are market leaders. Direct selling cosmetics company Mary Kay also sees opportunities in China and anticipates that the country will become its largest market.
Some people do not view direct selling sales reps as authentic salespeople. But many products, even business-to- business products like telecommunications, financial services, and scientific solutions, are sold through direct selling channels. The basic approaches to personal selling are used by sales representatives from companies like Amway and Avon. The salespeople have to be involved in the personal selling process of prospecting, pre-approach, approach, making the presentation, overcoming objections, and closing the sale. There are sales managers who have to recruit, train, and motivate the company's sales representatives. Many direct sales representatives develop long-term associations with the customers through regular communications over prolonged periods of time. Besides direct personal relationships and contacts, many of the sales reps are using social networking to simulate communication that would otherwise occur face-to-face. The importance of direct selling can be seen with global sales results of $10.9 billion for Amway, more than $11.3 billion for Avon, and total wholesale revenue of $66 billion for the industry. Today, there are more than 43 million sales representatives/ distributors across the world.Some Chinese officials still regard direct selling with suspicion since a common tactic of con artists is to pose as direct sellers. Therefore, China implemented laws limiting the ways direct selling companies could compensate their sales force and banned teachers, doctors, and civil servants from becoming direct sellers. Taking all of that into account, many direct sellers find the benefits outweigh the costs. Not only is direct selling flexible, it also helps women earn income in uncertain financial times when family members are out of work. Even women who do not earn much money in sales appreciate the flexibility and corporate culture. They look forward to the promise of future rewards with the company. Direct selling companies are also benefiting, with Mary Kay predicting a 30 percent sales increase in China. Although direct selling may be taken for granted in America, it is gaining an eager fan base among women in China.
Why are direct selling personal sales representatives legitimate or authentic salespeople?

Question 5

When developing its marketing strategy, a company must consider the different forms of communication that are necessary to reach a variety of customers. Several types of promotion may be required. Knowledge of the advantages and disadvantages of each promotional element is necessary when developing the marketing plan. Consider the information in this chapter when evaluating your promotional mix:
Evaluate each type of consumer sales promotion as it relates to accomplishing your promotional objectives.
The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.

Question 6

For each of the following, identify and describe three techniques and give several examples: (a) consumer sales promotion methods and (b) trade sales promotion methods.

Question 7

What is personal selling? How does personal selling differ from other types of promotional activities?

Question 8

TerrAlign
TerrAlign offers consulting services and software products designed to help a firm maximize control and deployment of its field sales representatives. See how the company provides sales territory management solutions by visiting www. terralign.com.
Why might field sales professionals object to the use of software from TerrAlign?

Question 9

What types of sales promotion methods have you observed recently? Comment on their effectiveness.

Question 10

When developing its marketing strategy, a company must consider the different forms of communication that are necessary to reach a variety of customers. Several types of promotion may be required. Knowledge of the advantages and disadvantages of each promotional element is necessary when developing the marketing plan. Consider the information in this chapter when evaluating your promotional mix:
Review the various types of salespeople described in this chapter. Given your promotional objectives (from Chapter 17), do any of these types of salespeople have a place in your promotional plan?
The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.

Question 11

Indy Racing League (IRL) Focuses on Integrated Marketing Communications
For the first 17 years of its existence, the Championship Auto Racing Teams (known as CART and, later, as Champ Car) dominated auto racing in the United States. Open-wheel racing, involving cars whose wheels are located outside the body of the car rather than underneath the body or fenders as found on street cars, enjoyed greater notoriety than other forms of racing-including stock-car racing like NASCAR. However, not everyone associated with open-wheel racing in the United States welcomed the success enjoyed by CART. One person with major concerns about the direction of CART was Tony George, president of the Indianapolis Motor Speedway and founder of the Indianapolis 500.
In 1994, George announced that he was creating a new open-wheel league that would compete with CART, beginning in 1996. The Indy Racing League (IRL) was divisive to open-wheel racing in the United States, as team owners were forced to decide whether to remain with CART or move to the new IRL. Only IRL members would be allowed to race in the Indianapolis 500- the world's largest spectator sport and the premiere open-wheeled racing competition. CART teams responded by planning their own event on the same day as the Indianapolis 500. The real challenge for the new IRL was developing an integrated marketing communications program to ensure maximum informational and persuasive impact on potential fans (customers). The rift between CART and the IRL resulted in both parties being unable to use the terms "IndyCar" and "Indy car." Eventually, the IRL was able to reassume the Indy Car brand name, but the temporary loss of the brand name created a challenge for promoting the new league.
A 2001 ESPN Sports Poll survey found that 56 percent of American auto racing fans said stock car racing was their favorite type of racing, with open-wheel racing third at 9 percent. The diminished appeal of open-wheel racing contributed to additional problems with sponsor relationships. Three major partners left CART, including two partners (Honda and Toyota) that provided engines and technical support to CART and its teams. During the same time, the IRL struggled to find corporate partners as a weakened economy and a fragmented market for open-wheel racing made both the IRL and CART less attractive to sponsors.
The IRL experienced ups and downs in the years following the split. Interest in IRL as measured by television ratings took a noticeable dip between 2002 and 2004, with 25 percent fewer viewers tuning in during 2004 than just two years earlier. Some sponsors pulled out, including talk-show host David Letterman. Furthermore, Tony George resigned his top positions with the IRL and the Indianapolis Motor Speedway (IMS) in July 2009. He was a proponent of using profits from IMS to support operations of the IRL, funneling an estimated hundreds of millions of dollars over the years to sustain the IRL.
In response to declining interest in IRL, marketing initiatives were taken to reverse the trend by recognizing the various promotional tools available. For instance, the league dedicated a marketing staff in 2001 to its operations. In 2005, the IRL launched a new ad campaign that targeted 18- to 34-yearold males. The campaign was part of a broader strategy to expand the association of IRL beyond a sport for middle-aged Midwestern males to a younger market. IRL has created profiles on social networking sites like Facebook and Twitter to further target this market.
In support of this effort, two developments can be noted. First, IRL has followed a trend observed in NASCAR and has involved several celebrities in the sport through team ownership. Among the celebrities involved with IRL teams are NBA star Carmelo Anthony, former NFL quarterback Jim Harbaugh, and actor Patrick Dempsey. Another celebrity involved with the IRL is rock star Gene Simmons. He is a partner in Simmons Abramson Marketing, who was hired to help the IRL devise new marketing strategies. The firm's entertainment marketing savvy is being tapped to help the IRL connect with fans on an emotional level through its drivers, whom Simmons referred to as "rock stars in rocket ships."
Second, driver personalities began to give the IRL some visibility. The emergence of Danica Patrick as a star in the IRL broadened the appeal of the league and assists in efforts to reach young males. Patrick was a 23-yearold IRL rookie in 2005, who finished fourth in the Indianapolis 500. The combination of the novelty of a female driver, her captivating looks, provocative advertising (particularly her Go Daddy ads), and personality made her the darling of American sports in 2005. Before moving on to NASCAR in 2012, Patrick's effect on the IRL was very noticeable; the IRL reported gains in event attendance, merchandise sales, website traffic, and television ratings during Patrick's rookie season. Patrick has since drawn the interest of many companies that have hired her as a product endorser, including Motorola, Boost Mobile, and XM Radio. In addition, she has appeared in photo shoots in FHM and the 2008 and 2009 Sports Illustrated swimsuit issues. Other drivers like Helio Castroneves, Scott Dixon, Ryan Hunter-Reay, and Marco Andretti, who have gained notoriety in Indy racing, also increased awareness of the IRL.
Driver personalities are critical to the promotion and communication process. Most of the drivers endorse their respective sponsors and end up in television advertising promoting the product. This is often done while showing the driver in an Indy racing car, also promoting the league. Drivers to some extent engage in personal selling by interacting with fans, signing autographs, and making personal appearances. Public relations for the drivers is important in television talk show appearances and various other word-of- mouth communication that is created when spectators start discussing the drivers. It is even possible for drivers to appear in television programs as a type of product placement, promoting themselves, the Indy League, and the IRL.
The Future
In 2008, the IRL and Champ Car decided to reunify. Although reunification was a major step toward competing against its rival NASCAR, the organization knew it needed to engage in strong integrated marketing communications if it wanted to grow its market share.
One major development for the IndyCar Series was a new television broadcast partner. ABC had televised the Indianapolis 500 for 45 years. The IRL will continue that relationship, but most of the other races on the IndyCar Series schedule (at least 13 per season) are televised by the NBC Sports Network, a cable channel that replaced ESPN as IRL's broadcast partner. While the NBC Sports Network has a smaller audience than ESPN, it covers fewer sports and plans to give the Indy- Car Series more coverage than ESPN did when it owned the broadcast rights. In addition, the NBC Sports Network signed a 10-year contract with the IRL.
Perhaps the biggest development for the IRL in recent years is its acquisition of a title sponsorship. A title sponsorship is the use of a corporate brand name to be associated with all communication about the league. Due to the decline in its popularity, the IRL lacked a title sponsor for many years. In 2009, the clothing provider Izod decided to become the official title sponsor of the IRL for six years. This sponsorship is likely to be very beneficial for the IRL, particularly as it came at a time when many sponsors for NASCAR and the IRL were pulling out due to the recession.
Auto racing is the fastest-growing spectator sport in the United States. Unfortunately, the disagreement among top leadership in open-wheel racing divided the sport, leading to a period of decline in open-wheel racing, while other forms of auto racing have grown. Therefore, the new IRL must strengthen its standing in the American motorsports market. The support of major celebrities like Patrick Dempsey and the popularity of drivers like Danica Patrick have boosted the ratings of the IRL, but not enough to overtake NASCAR (and the loss of Danica Patrick as a full-time driver to NASCAR also creates a challenge). With the two major open-wheel leagues unified once more, the IRL must begin the task of reconnecting with former fans and building connections with a new audience.
What is the link between sponsorships of cars and drivers by corporations and promotion of the IRL?

Question 12

TerrAlign
TerrAlign offers consulting services and software products designed to help a firm maximize control and deployment of its field sales representatives. See how the company provides sales territory management solutions by visiting www. terralign.com.
Identify three features of TerrAlign software that are likely to benefit salespeople.

Question 13

Murray's Cheese Achieves Success through Personal Selling
For Murray's Cheese, personal selling is the driving force behind its success. The business has retail sales of $2,500 per square foot and a growth rate of 15 to 20 percent per year at its main store in Greenwich Village, New York. The company owns retail, wholesale, catering, and education businesses. It also has a partnership with the supermarket giant Kroger to bring Murray's customer-friendly environment to select Kroger supermarkets.
Murray's views personal selling as a core competency that sets itself apart from the competition. The key is to inform customers and persuade them to purchase products in a store environment. Murray's sales representatives understand the importance of a quick presentation, overcoming objections, and closing the sale.
Because Murray's wants its customers to be repeat buyers, there is an attempt to listen to customers, gain an understanding of their interests, and try to find the right product to satisfy their needs. Murray's Cheese began in 1940 as a wholesale butter and egg shop owned by Jewish Spanish Civil War Veteran Murray Greenberg. When the current president, Rob Kaufelt, purchased the shop in 1991, the store was little more than a local hole-in-the-wall. Kaufelt and his staff made the decision to focus on high-quality gourmet cheeses from around the world. Today, people come from all over to sample Murray's cheeses as well as take classes or attend its Cheese U boot camp to learn about cheese. Although Murray's has extended its product line to include gourmet meats, crackers, jam, chocolate, olives, pickles, and dried fruit, cheese remains its core product. In fact, Murray's Cheese has been voted by Forbes as "the best cheese shop." The company also received a very high rating for service in Zagat's 2011 New York City Food Lover's Guide.
Murray's success prompted Kroger to seek it out as a partner in its supermarkets. Murray's Cheese shops can now be found in different Kroger supermarkets throughout the country. The cost that Murray's Cheese spent on advertising to become so successful: zero dollars. Instead of advertising, the company relies on in-store salespersons providing customer service and creating positive word-of-mouth communication to promote and secure its reputation.
When training its cheesemongers, the company recruits those who are passionate about both cheese and people. The company sets qualifi cations before beginning the recruiting process and identifies a set of traits characterizing effective salespeople who could become cheesemongers. All customers who enter Murray's Greenwich Village store get to taste free samples of cheese before they buy it. This sampling creates an image of Murray's Cheese as a customer-friendly company.
Customer relationships are so integral to Murray's that its cheesemongers taste the cheese with the customers. In this way, Murray's in-store sales force educates themselves about the cheeses they are selling and creates a valuable experience where the customer feels appreciated. "It's about sharing that knowledge and helping people have an experience that they wouldn't have been able to have on their own," said Liz Thorpe, vice president of Murray's Cheese. By establishing this unique experience, Murray's learns what customers are looking for and often succeeds in getting them to purchase more products at once and make repeat purchases.
This positive customer environment is what Murray's Cheese hopes to bring to Kroger. Those Kroger employees who sell Murray's cheeses undergo extensive training beforehand. Murray's even created a 300-page cheese service guide for these recruits. Kroger customers seem to appreciate the more attentive customer service they receive in these Murray-branded shops. In a pilot program where three Murray's Cheese shops replaced Kroger cheese departments, sales increased 50 to 100 percent. It was such a success that, under the new partnership, Murray's Cheese now has Murray's shops in Kroger supermarkets in Ohio, Georgia, Tennessee, and Texas, with plans for continued expansion.
Personal selling does not always have to be about traveling throughout sales territories, calling on prospects. Murray's in-store cheesemongers make and close sales doing what they do best: educating customers and sharing the gourmet cheese experience. With Kroger's success at promotion and Murray's strengths in personal selling, it looks to be a win-win situation for both partners. Murray's motivated cheesemongers help to satisfy the needs of their customers and achieve personal goals.
Do you think that Murray's Cheese salespeople need extensive motivation and training?

Question 14

Indy Racing League (IRL) Focuses on Integrated Marketing Communications
For the first 17 years of its existence, the Championship Auto Racing Teams (known as CART and, later, as Champ Car) dominated auto racing in the United States. Open-wheel racing, involving cars whose wheels are located outside the body of the car rather than underneath the body or fenders as found on street cars, enjoyed greater notoriety than other forms of racing-including stock-car racing like NASCAR. However, not everyone associated with open-wheel racing in the United States welcomed the success enjoyed by CART. One person with major concerns about the direction of CART was Tony George, president of the Indianapolis Motor Speedway and founder of the Indianapolis 500.
In 1994, George announced that he was creating a new open-wheel league that would compete with CART, beginning in 1996. The Indy Racing League (IRL) was divisive to open-wheel racing in the United States, as team owners were forced to decide whether to remain with CART or move to the new IRL. Only IRL members would be allowed to race in the Indianapolis 500- the world's largest spectator sport and the premiere open-wheeled racing competition. CART teams responded by planning their own event on the same day as the Indianapolis 500. The real challenge for the new IRL was developing an integrated marketing communications program to ensure maximum informational and persuasive impact on potential fans (customers). The rift between CART and the IRL resulted in both parties being unable to use the terms "IndyCar" and "Indy car." Eventually, the IRL was able to reassume the Indy Car brand name, but the temporary loss of the brand name created a challenge for promoting the new league.
A 2001 ESPN Sports Poll survey found that 56 percent of American auto racing fans said stock car racing was their favorite type of racing, with open-wheel racing third at 9 percent. The diminished appeal of open-wheel racing contributed to additional problems with sponsor relationships. Three major partners left CART, including two partners (Honda and Toyota) that provided engines and technical support to CART and its teams. During the same time, the IRL struggled to find corporate partners as a weakened economy and a fragmented market for open-wheel racing made both the IRL and CART less attractive to sponsors.
The IRL experienced ups and downs in the years following the split. Interest in IRL as measured by television ratings took a noticeable dip between 2002 and 2004, with 25 percent fewer viewers tuning in during 2004 than just two years earlier. Some sponsors pulled out, including talk-show host David Letterman. Furthermore, Tony George resigned his top positions with the IRL and the Indianapolis Motor Speedway (IMS) in July 2009. He was a proponent of using profits from IMS to support operations of the IRL, funneling an estimated hundreds of millions of dollars over the years to sustain the IRL.
In response to declining interest in IRL, marketing initiatives were taken to reverse the trend by recognizing the various promotional tools available. For instance, the league dedicated a marketing staff in 2001 to its operations. In 2005, the IRL launched a new ad campaign that targeted 18- to 34-yearold males. The campaign was part of a broader strategy to expand the association of IRL beyond a sport for middle-aged Midwestern males to a younger market. IRL has created profiles on social networking sites like Facebook and Twitter to further target this market.
In support of this effort, two developments can be noted. First, IRL has followed a trend observed in NASCAR and has involved several celebrities in the sport through team ownership. Among the celebrities involved with IRL teams are NBA star Carmelo Anthony, former NFL quarterback Jim Harbaugh, and actor Patrick Dempsey. Another celebrity involved with the IRL is rock star Gene Simmons. He is a partner in Simmons Abramson Marketing, who was hired to help the IRL devise new marketing strategies. The firm's entertainment marketing savvy is being tapped to help the IRL connect with fans on an emotional level through its drivers, whom Simmons referred to as "rock stars in rocket ships."
Second, driver personalities began to give the IRL some visibility. The emergence of Danica Patrick as a star in the IRL broadened the appeal of the league and assists in efforts to reach young males. Patrick was a 23-yearold IRL rookie in 2005, who finished fourth in the Indianapolis 500. The combination of the novelty of a female driver, her captivating looks, provocative advertising (particularly her Go Daddy ads), and personality made her the darling of American sports in 2005. Before moving on to NASCAR in 2012, Patrick's effect on the IRL was very noticeable; the IRL reported gains in event attendance, merchandise sales, website traffic, and television ratings during Patrick's rookie season. Patrick has since drawn the interest of many companies that have hired her as a product endorser, including Motorola, Boost Mobile, and XM Radio. In addition, she has appeared in photo shoots in FHM and the 2008 and 2009 Sports Illustrated swimsuit issues. Other drivers like Helio Castroneves, Scott Dixon, Ryan Hunter-Reay, and Marco Andretti, who have gained notoriety in Indy racing, also increased awareness of the IRL.
Driver personalities are critical to the promotion and communication process. Most of the drivers endorse their respective sponsors and end up in television advertising promoting the product. This is often done while showing the driver in an Indy racing car, also promoting the league. Drivers to some extent engage in personal selling by interacting with fans, signing autographs, and making personal appearances. Public relations for the drivers is important in television talk show appearances and various other word-of- mouth communication that is created when spectators start discussing the drivers. It is even possible for drivers to appear in television programs as a type of product placement, promoting themselves, the Indy League, and the IRL.
The Future
In 2008, the IRL and Champ Car decided to reunify. Although reunification was a major step toward competing against its rival NASCAR, the organization knew it needed to engage in strong integrated marketing communications if it wanted to grow its market share.
One major development for the IndyCar Series was a new television broadcast partner. ABC had televised the Indianapolis 500 for 45 years. The IRL will continue that relationship, but most of the other races on the IndyCar Series schedule (at least 13 per season) are televised by the NBC Sports Network, a cable channel that replaced ESPN as IRL's broadcast partner. While the NBC Sports Network has a smaller audience than ESPN, it covers fewer sports and plans to give the Indy- Car Series more coverage than ESPN did when it owned the broadcast rights. In addition, the NBC Sports Network signed a 10-year contract with the IRL.
Perhaps the biggest development for the IRL in recent years is its acquisition of a title sponsorship. A title sponsorship is the use of a corporate brand name to be associated with all communication about the league. Due to the decline in its popularity, the IRL lacked a title sponsor for many years. In 2009, the clothing provider Izod decided to become the official title sponsor of the IRL for six years. This sponsorship is likely to be very beneficial for the IRL, particularly as it came at a time when many sponsors for NASCAR and the IRL were pulling out due to the recession.
Auto racing is the fastest-growing spectator sport in the United States. Unfortunately, the disagreement among top leadership in open-wheel racing divided the sport, leading to a period of decline in open-wheel racing, while other forms of auto racing have grown. Therefore, the new IRL must strengthen its standing in the American motorsports market. The support of major celebrities like Patrick Dempsey and the popularity of drivers like Danica Patrick have boosted the ratings of the IRL, but not enough to overtake NASCAR (and the loss of Danica Patrick as a full-time driver to NASCAR also creates a challenge). With the two major open-wheel leagues unified once more, the IRL must begin the task of reconnecting with former fans and building connections with a new audience.
How does the IRL utilize the various components of integrated marketing communication?

Question 15

Producers use trade sales promotions to encourage resellers to promote their products more effectively. Identify which method or methods of sales promotion a producer might use in the following situations, and explain why the method would be appropriate.
a. A golf ball manufacturer wants to encourage retailers to add a new type of golf ball to current product offerings.
b. A life insurance company wants to increase sales of its universal life products, which have been lagging recently (the company has little control over sales activities).
c. A light bulb manufacturer with an overproduction of light bulbs wants to encourage its grocery store chain resellers to increase their bulb inventories.

Question 16

Murray's Cheese Achieves Success through Personal Selling
For Murray's Cheese, personal selling is the driving force behind its success. The business has retail sales of $2,500 per square foot and a growth rate of 15 to 20 percent per year at its main store in Greenwich Village, New York. The company owns retail, wholesale, catering, and education businesses. It also has a partnership with the supermarket giant Kroger to bring Murray's customer-friendly environment to select Kroger supermarkets.
Murray's views personal selling as a core competency that sets itself apart from the competition. The key is to inform customers and persuade them to purchase products in a store environment. Murray's sales representatives understand the importance of a quick presentation, overcoming objections, and closing the sale.
Because Murray's wants its customers to be repeat buyers, there is an attempt to listen to customers, gain an understanding of their interests, and try to find the right product to satisfy their needs. Murray's Cheese began in 1940 as a wholesale butter and egg shop owned by Jewish Spanish Civil War Veteran Murray Greenberg. When the current president, Rob Kaufelt, purchased the shop in 1991, the store was little more than a local hole-in-the-wall. Kaufelt and his staff made the decision to focus on high-quality gourmet cheeses from around the world. Today, people come from all over to sample Murray's cheeses as well as take classes or attend its Cheese U boot camp to learn about cheese. Although Murray's has extended its product line to include gourmet meats, crackers, jam, chocolate, olives, pickles, and dried fruit, cheese remains its core product. In fact, Murray's Cheese has been voted by Forbes as "the best cheese shop." The company also received a very high rating for service in Zagat's 2011 New York City Food Lover's Guide.
Murray's success prompted Kroger to seek it out as a partner in its supermarkets. Murray's Cheese shops can now be found in different Kroger supermarkets throughout the country. The cost that Murray's Cheese spent on advertising to become so successful: zero dollars. Instead of advertising, the company relies on in-store salespersons providing customer service and creating positive word-of-mouth communication to promote and secure its reputation.
When training its cheesemongers, the company recruits those who are passionate about both cheese and people. The company sets qualifi cations before beginning the recruiting process and identifies a set of traits characterizing effective salespeople who could become cheesemongers. All customers who enter Murray's Greenwich Village store get to taste free samples of cheese before they buy it. This sampling creates an image of Murray's Cheese as a customer-friendly company.
Customer relationships are so integral to Murray's that its cheesemongers taste the cheese with the customers. In this way, Murray's in-store sales force educates themselves about the cheeses they are selling and creates a valuable experience where the customer feels appreciated. "It's about sharing that knowledge and helping people have an experience that they wouldn't have been able to have on their own," said Liz Thorpe, vice president of Murray's Cheese. By establishing this unique experience, Murray's learns what customers are looking for and often succeeds in getting them to purchase more products at once and make repeat purchases.
This positive customer environment is what Murray's Cheese hopes to bring to Kroger. Those Kroger employees who sell Murray's cheeses undergo extensive training beforehand. Murray's even created a 300-page cheese service guide for these recruits. Kroger customers seem to appreciate the more attentive customer service they receive in these Murray-branded shops. In a pilot program where three Murray's Cheese shops replaced Kroger cheese departments, sales increased 50 to 100 percent. It was such a success that, under the new partnership, Murray's Cheese now has Murray's shops in Kroger supermarkets in Ohio, Georgia, Tennessee, and Texas, with plans for continued expansion.
Personal selling does not always have to be about traveling throughout sales territories, calling on prospects. Murray's in-store cheesemongers make and close sales doing what they do best: educating customers and sharing the gourmet cheese experience. With Kroger's success at promotion and Murray's strengths in personal selling, it looks to be a win-win situation for both partners. Murray's motivated cheesemongers help to satisfy the needs of their customers and achieve personal goals.
How would you explain the sales presentation that is most effective for selling Murray's cheese products?

Question 17

How does a salesperson find and evaluate prospects? Do you consider any of these methods to be ethically questionable? Explain.

Question 18

Leap Athletic Shoe Inc., a newly formed company, is in the process of developing a sales strategy. Market researchers have determined that sales management should segment the market into five regional territories. The sales potential for the North region is $1.2 million; for the West region, $1 million; for the Central region, $1.3 million; for the South Central region, $1.1 million; and for the Southeast region, $1 million. The firm wishes to maintain some control over the training and sales processes because of the unique features of its new product line, but Leap marketers realize that the salespeople need to be fairly aggressive in their efforts to break into these markets. They would like to provide the incentive needed for the extra selling effort. What type of sales force compensation method would you recommend to Leap? Why?

Question 19

In the cosmetics industry, sales promotions reign supreme. You manufacture and market organic skin creams, which are sold nationwide at your own "boutiques" inside various department stores. You are considering two different promotions for your newest lotion, which retails for $19.99. The fi rst is providing free samples in select stores. Each sample will cost about 45 cents per customer. After carefully examining market research, you estimate that 15,000 customers will try the free sample, with 35 percent opting to purchase the product. The second promotion is a dollar-off coupon that provides a discount on select products. The coupons would be sent to all 100,000 current customers on your mailing list at a cost of 53 cents per customer. In the past, the coupons have had a 13 percent redemption rate. Which promotion would you adopt based upon the information provided? What is some additional information that could help you in choosing the best option?

Question 20

Direct Selling in China Booms in the 21st Century
What activities come to mind when you think of the words "evil," "cultish," and "superstitious"? In China, the government has used these words to describe direct selling. Direct selling, to the benefit of consumers, involves marketing products through face-to-face sales presentations at home or in the workplace. With social media, this concept has expanded to digital person-to-person communication. In countries like China, direct selling, or as it is often called network selling, often finds prospects through relatives, friends, and neighbors. While direct selling was once criticized by the government as being a questionable activity, consumers in China respect direct selling and are aware that direct sales companies' products are often among the highest quality products available to consumers. Today, Amway's Nutrilite is the number one selling dietary supplement and the official supplement of the Chinese Olympic team.
The Chinese government's negative attitude toward direct selling was the result of prior abuses through illegal pyramid schemes, which led to riots. Pyramid schemes occur when money is exchanged for recruiting other people into the scheme. Leaders of successful schemes make the most money, while those who fail to recruit others lose out. Multilevel marketing, on the other hand, is a very legitimate activity; it is not designed to exploit others, and support is given to sell products directly to consumers.
In 2006, direct selling was allowed in China under the provision that pyramid schemes and multilevel selling were forbidden. In fact, multilevel selling and pyramid sales in China can result in serious fines and even criminal prosecution. Although some people in China still hold negative views toward direct selling, for many women, direct selling has gone from "evil" to "empowering." Today, direct selling is flourishing in China, offering women a way to earn income and maintain enough flexibility to perform domestic responsibilities.
In countries where women are not usually able to start their own businesses, direct selling offers advancement opportunities and training. Additionally, despite the worldwide economic downturn, items like cosmetics and Tupperware remain in high demand, enabling direct selling companies to flourish. Direct selling has become a multi-billion dollar industry, with Avon as a leading seller of beauty and related products. Avon sets up retail stores and provides the products to salespeople to sell directly to consumers on the streets and in their neighborhoods. Although Amway is known for being a multilevel marketer in the United States, it sells its products through the same system. The success of both of these companies has been incredible. For example, Amway's Nutrilite vitamins and Artistry cosmetics are market leaders. Direct selling cosmetics company Mary Kay also sees opportunities in China and anticipates that the country will become its largest market.
Some people do not view direct selling sales reps as authentic salespeople. But many products, even business-to- business products like telecommunications, financial services, and scientific solutions, are sold through direct selling channels. The basic approaches to personal selling are used by sales representatives from companies like Amway and Avon. The salespeople have to be involved in the personal selling process of prospecting, pre-approach, approach, making the presentation, overcoming objections, and closing the sale. There are sales managers who have to recruit, train, and motivate the company's sales representatives. Many direct sales representatives develop long-term associations with the customers through regular communications over prolonged periods of time. Besides direct personal relationships and contacts, many of the sales reps are using social networking to simulate communication that would otherwise occur face-to-face. The importance of direct selling can be seen with global sales results of $10.9 billion for Amway, more than $11.3 billion for Avon, and total wholesale revenue of $66 billion for the industry. Today, there are more than 43 million sales representatives/ distributors across the world.Some Chinese officials still regard direct selling with suspicion since a common tactic of con artists is to pose as direct sellers. Therefore, China implemented laws limiting the ways direct selling companies could compensate their sales force and banned teachers, doctors, and civil servants from becoming direct sellers. Taking all of that into account, many direct sellers find the benefits outweigh the costs. Not only is direct selling flexible, it also helps women earn income in uncertain financial times when family members are out of work. Even women who do not earn much money in sales appreciate the flexibility and corporate culture. They look forward to the promise of future rewards with the company. Direct selling companies are also benefiting, with Mary Kay predicting a 30 percent sales increase in China. Although direct selling may be taken for granted in America, it is gaining an eager fan base among women in China.
Why do you think direct selling is even more successful in China than in the United States?

Question 21

Are order getters more aggressive or creative than order takers? Why or why not?

Question 22

What are the primary purposes of personal selling?

Question 23

Why are team selling and relationship selling becoming more prevalent?

Question 24

When developing its marketing strategy, a company must consider the different forms of communication that are necessary to reach a variety of customers. Several types of promotion may be required. Knowledge of the advantages and disadvantages of each promotional element is necessary when developing the marketing plan. Consider the information in this chapter when evaluating your promotional mix:
Identify the resellers in your distribution channel. Discuss the role that trade sales promotions to these resellers could play in the development of your promotional plan.
The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.

Question 25

Identify several characteristics of effective sales objectives.

Question 26

TerrAlign
TerrAlign offers consulting services and software products designed to help a firm maximize control and deployment of its field sales representatives. See how the company provides sales territory management solutions by visiting www. terralign.com.
Identify three features of TerrAlign software that are likely to benefit sales managers.

Question 27

How should a sales manager establish criteria for selecting sales personnel? What do you think are the general characteristics of a good salesperson?

Question 28

Indy Racing League (IRL) Focuses on Integrated Marketing Communications
For the first 17 years of its existence, the Championship Auto Racing Teams (known as CART and, later, as Champ Car) dominated auto racing in the United States. Open-wheel racing, involving cars whose wheels are located outside the body of the car rather than underneath the body or fenders as found on street cars, enjoyed greater notoriety than other forms of racing-including stock-car racing like NASCAR. However, not everyone associated with open-wheel racing in the United States welcomed the success enjoyed by CART. One person with major concerns about the direction of CART was Tony George, president of the Indianapolis Motor Speedway and founder of the Indianapolis 500.
In 1994, George announced that he was creating a new open-wheel league that would compete with CART, beginning in 1996. The Indy Racing League (IRL) was divisive to open-wheel racing in the United States, as team owners were forced to decide whether to remain with CART or move to the new IRL. Only IRL members would be allowed to race in the Indianapolis 500- the world's largest spectator sport and the premiere open-wheeled racing competition. CART teams responded by planning their own event on the same day as the Indianapolis 500. The real challenge for the new IRL was developing an integrated marketing communications program to ensure maximum informational and persuasive impact on potential fans (customers). The rift between CART and the IRL resulted in both parties being unable to use the terms "IndyCar" and "Indy car." Eventually, the IRL was able to reassume the Indy Car brand name, but the temporary loss of the brand name created a challenge for promoting the new league.
A 2001 ESPN Sports Poll survey found that 56 percent of American auto racing fans said stock car racing was their favorite type of racing, with open-wheel racing third at 9 percent. The diminished appeal of open-wheel racing contributed to additional problems with sponsor relationships. Three major partners left CART, including two partners (Honda and Toyota) that provided engines and technical support to CART and its teams. During the same time, the IRL struggled to find corporate partners as a weakened economy and a fragmented market for open-wheel racing made both the IRL and CART less attractive to sponsors.
The IRL experienced ups and downs in the years following the split. Interest in IRL as measured by television ratings took a noticeable dip between 2002 and 2004, with 25 percent fewer viewers tuning in during 2004 than just two years earlier. Some sponsors pulled out, including talk-show host David Letterman. Furthermore, Tony George resigned his top positions with the IRL and the Indianapolis Motor Speedway (IMS) in July 2009. He was a proponent of using profits from IMS to support operations of the IRL, funneling an estimated hundreds of millions of dollars over the years to sustain the IRL.
In response to declining interest in IRL, marketing initiatives were taken to reverse the trend by recognizing the various promotional tools available. For instance, the league dedicated a marketing staff in 2001 to its operations. In 2005, the IRL launched a new ad campaign that targeted 18- to 34-yearold males. The campaign was part of a broader strategy to expand the association of IRL beyond a sport for middle-aged Midwestern males to a younger market. IRL has created profiles on social networking sites like Facebook and Twitter to further target this market.
In support of this effort, two developments can be noted. First, IRL has followed a trend observed in NASCAR and has involved several celebrities in the sport through team ownership. Among the celebrities involved with IRL teams are NBA star Carmelo Anthony, former NFL quarterback Jim Harbaugh, and actor Patrick Dempsey. Another celebrity involved with the IRL is rock star Gene Simmons. He is a partner in Simmons Abramson Marketing, who was hired to help the IRL devise new marketing strategies. The firm's entertainment marketing savvy is being tapped to help the IRL connect with fans on an emotional level through its drivers, whom Simmons referred to as "rock stars in rocket ships."
Second, driver personalities began to give the IRL some visibility. The emergence of Danica Patrick as a star in the IRL broadened the appeal of the league and assists in efforts to reach young males. Patrick was a 23-yearold IRL rookie in 2005, who finished fourth in the Indianapolis 500. The combination of the novelty of a female driver, her captivating looks, provocative advertising (particularly her Go Daddy ads), and personality made her the darling of American sports in 2005. Before moving on to NASCAR in 2012, Patrick's effect on the IRL was very noticeable; the IRL reported gains in event attendance, merchandise sales, website traffic, and television ratings during Patrick's rookie season. Patrick has since drawn the interest of many companies that have hired her as a product endorser, including Motorola, Boost Mobile, and XM Radio. In addition, she has appeared in photo shoots in FHM and the 2008 and 2009 Sports Illustrated swimsuit issues. Other drivers like Helio Castroneves, Scott Dixon, Ryan Hunter-Reay, and Marco Andretti, who have gained notoriety in Indy racing, also increased awareness of the IRL.
Driver personalities are critical to the promotion and communication process. Most of the drivers endorse their respective sponsors and end up in television advertising promoting the product. This is often done while showing the driver in an Indy racing car, also promoting the league. Drivers to some extent engage in personal selling by interacting with fans, signing autographs, and making personal appearances. Public relations for the drivers is important in television talk show appearances and various other word-of- mouth communication that is created when spectators start discussing the drivers. It is even possible for drivers to appear in television programs as a type of product placement, promoting themselves, the Indy League, and the IRL.
The Future
In 2008, the IRL and Champ Car decided to reunify. Although reunification was a major step toward competing against its rival NASCAR, the organization knew it needed to engage in strong integrated marketing communications if it wanted to grow its market share.
One major development for the IndyCar Series was a new television broadcast partner. ABC had televised the Indianapolis 500 for 45 years. The IRL will continue that relationship, but most of the other races on the IndyCar Series schedule (at least 13 per season) are televised by the NBC Sports Network, a cable channel that replaced ESPN as IRL's broadcast partner. While the NBC Sports Network has a smaller audience than ESPN, it covers fewer sports and plans to give the Indy- Car Series more coverage than ESPN did when it owned the broadcast rights. In addition, the NBC Sports Network signed a 10-year contract with the IRL.
Perhaps the biggest development for the IRL in recent years is its acquisition of a title sponsorship. A title sponsorship is the use of a corporate brand name to be associated with all communication about the league. Due to the decline in its popularity, the IRL lacked a title sponsor for many years. In 2009, the clothing provider Izod decided to become the official title sponsor of the IRL for six years. This sponsorship is likely to be very beneficial for the IRL, particularly as it came at a time when many sponsors for NASCAR and the IRL were pulling out due to the recession.
Auto racing is the fastest-growing spectator sport in the United States. Unfortunately, the disagreement among top leadership in open-wheel racing divided the sport, leading to a period of decline in open-wheel racing, while other forms of auto racing have grown. Therefore, the new IRL must strengthen its standing in the American motorsports market. The support of major celebrities like Patrick Dempsey and the popularity of drivers like Danica Patrick have boosted the ratings of the IRL, but not enough to overtake NASCAR (and the loss of Danica Patrick as a full-time driver to NASCAR also creates a challenge). With the two major open-wheel leagues unified once more, the IRL must begin the task of reconnecting with former fans and building connections with a new audience.
How do driver appearances on television and at public events contribute to promoting the IRL?

Question 29

What major issues or questions should management consider when developing a training program for the sales force?

Question 30

Murray's Cheese Achieves Success through Personal Selling
For Murray's Cheese, personal selling is the driving force behind its success. The business has retail sales of $2,500 per square foot and a growth rate of 15 to 20 percent per year at its main store in Greenwich Village, New York. The company owns retail, wholesale, catering, and education businesses. It also has a partnership with the supermarket giant Kroger to bring Murray's customer-friendly environment to select Kroger supermarkets.
Murray's views personal selling as a core competency that sets itself apart from the competition. The key is to inform customers and persuade them to purchase products in a store environment. Murray's sales representatives understand the importance of a quick presentation, overcoming objections, and closing the sale.
Because Murray's wants its customers to be repeat buyers, there is an attempt to listen to customers, gain an understanding of their interests, and try to find the right product to satisfy their needs. Murray's Cheese began in 1940 as a wholesale butter and egg shop owned by Jewish Spanish Civil War Veteran Murray Greenberg. When the current president, Rob Kaufelt, purchased the shop in 1991, the store was little more than a local hole-in-the-wall. Kaufelt and his staff made the decision to focus on high-quality gourmet cheeses from around the world. Today, people come from all over to sample Murray's cheeses as well as take classes or attend its Cheese U boot camp to learn about cheese. Although Murray's has extended its product line to include gourmet meats, crackers, jam, chocolate, olives, pickles, and dried fruit, cheese remains its core product. In fact, Murray's Cheese has been voted by Forbes as "the best cheese shop." The company also received a very high rating for service in Zagat's 2011 New York City Food Lover's Guide.
Murray's success prompted Kroger to seek it out as a partner in its supermarkets. Murray's Cheese shops can now be found in different Kroger supermarkets throughout the country. The cost that Murray's Cheese spent on advertising to become so successful: zero dollars. Instead of advertising, the company relies on in-store salespersons providing customer service and creating positive word-of-mouth communication to promote and secure its reputation.
When training its cheesemongers, the company recruits those who are passionate about both cheese and people. The company sets qualifi cations before beginning the recruiting process and identifies a set of traits characterizing effective salespeople who could become cheesemongers. All customers who enter Murray's Greenwich Village store get to taste free samples of cheese before they buy it. This sampling creates an image of Murray's Cheese as a customer-friendly company.
Customer relationships are so integral to Murray's that its cheesemongers taste the cheese with the customers. In this way, Murray's in-store sales force educates themselves about the cheeses they are selling and creates a valuable experience where the customer feels appreciated. "It's about sharing that knowledge and helping people have an experience that they wouldn't have been able to have on their own," said Liz Thorpe, vice president of Murray's Cheese. By establishing this unique experience, Murray's learns what customers are looking for and often succeeds in getting them to purchase more products at once and make repeat purchases.
This positive customer environment is what Murray's Cheese hopes to bring to Kroger. Those Kroger employees who sell Murray's cheeses undergo extensive training beforehand. Murray's even created a 300-page cheese service guide for these recruits. Kroger customers seem to appreciate the more attentive customer service they receive in these Murray-branded shops. In a pilot program where three Murray's Cheese shops replaced Kroger cheese departments, sales increased 50 to 100 percent. It was such a success that, under the new partnership, Murray's Cheese now has Murray's shops in Kroger supermarkets in Ohio, Georgia, Tennessee, and Texas, with plans for continued expansion.
Personal selling does not always have to be about traveling throughout sales territories, calling on prospects. Murray's in-store cheesemongers make and close sales doing what they do best: educating customers and sharing the gourmet cheese experience. With Kroger's success at promotion and Murray's strengths in personal selling, it looks to be a win-win situation for both partners. Murray's motivated cheesemongers help to satisfy the needs of their customers and achieve personal goals.
How would you apply the concept of relationship selling to building long-term customers at Murray's Cheese?

Question 31

Explain the major advantages and disadvantages of the three basic methods of compensating salespeople. In general, which method would you prefer? Why?

Question 32

Consumer sales promotions aim to increase sales of a particular retail store or product. Identify a familiar type of retail store or product. Recommend at least three sales promotion methods that could effectively promote the store or product. Explain why you would use these methods.

Question 33

What major factors should be taken into account when designing the size and shape of a sales territory?

Question 34

Direct Selling in China Booms in the 21st Century
What activities come to mind when you think of the words "evil," "cultish," and "superstitious"? In China, the government has used these words to describe direct selling. Direct selling, to the benefit of consumers, involves marketing products through face-to-face sales presentations at home or in the workplace. With social media, this concept has expanded to digital person-to-person communication. In countries like China, direct selling, or as it is often called network selling, often finds prospects through relatives, friends, and neighbors. While direct selling was once criticized by the government as being a questionable activity, consumers in China respect direct selling and are aware that direct sales companies' products are often among the highest quality products available to consumers. Today, Amway's Nutrilite is the number one selling dietary supplement and the official supplement of the Chinese Olympic team.
The Chinese government's negative attitude toward direct selling was the result of prior abuses through illegal pyramid schemes, which led to riots. Pyramid schemes occur when money is exchanged for recruiting other people into the scheme. Leaders of successful schemes make the most money, while those who fail to recruit others lose out. Multilevel marketing, on the other hand, is a very legitimate activity; it is not designed to exploit others, and support is given to sell products directly to consumers.
In 2006, direct selling was allowed in China under the provision that pyramid schemes and multilevel selling were forbidden. In fact, multilevel selling and pyramid sales in China can result in serious fines and even criminal prosecution. Although some people in China still hold negative views toward direct selling, for many women, direct selling has gone from "evil" to "empowering." Today, direct selling is flourishing in China, offering women a way to earn income and maintain enough flexibility to perform domestic responsibilities.
In countries where women are not usually able to start their own businesses, direct selling offers advancement opportunities and training. Additionally, despite the worldwide economic downturn, items like cosmetics and Tupperware remain in high demand, enabling direct selling companies to flourish. Direct selling has become a multi-billion dollar industry, with Avon as a leading seller of beauty and related products. Avon sets up retail stores and provides the products to salespeople to sell directly to consumers on the streets and in their neighborhoods. Although Amway is known for being a multilevel marketer in the United States, it sells its products through the same system. The success of both of these companies has been incredible. For example, Amway's Nutrilite vitamins and Artistry cosmetics are market leaders. Direct selling cosmetics company Mary Kay also sees opportunities in China and anticipates that the country will become its largest market.
Some people do not view direct selling sales reps as authentic salespeople. But many products, even business-to- business products like telecommunications, financial services, and scientific solutions, are sold through direct selling channels. The basic approaches to personal selling are used by sales representatives from companies like Amway and Avon. The salespeople have to be involved in the personal selling process of prospecting, pre-approach, approach, making the presentation, overcoming objections, and closing the sale. There are sales managers who have to recruit, train, and motivate the company's sales representatives. Many direct sales representatives develop long-term associations with the customers through regular communications over prolonged periods of time. Besides direct personal relationships and contacts, many of the sales reps are using social networking to simulate communication that would otherwise occur face-to-face. The importance of direct selling can be seen with global sales results of $10.9 billion for Amway, more than $11.3 billion for Avon, and total wholesale revenue of $66 billion for the industry. Today, there are more than 43 million sales representatives/ distributors across the world.Some Chinese officials still regard direct selling with suspicion since a common tactic of con artists is to pose as direct sellers. Therefore, China implemented laws limiting the ways direct selling companies could compensate their sales force and banned teachers, doctors, and civil servants from becoming direct sellers. Taking all of that into account, many direct sellers find the benefits outweigh the costs. Not only is direct selling flexible, it also helps women earn income in uncertain financial times when family members are out of work. Even women who do not earn much money in sales appreciate the flexibility and corporate culture. They look forward to the promise of future rewards with the company. Direct selling companies are also benefiting, with Mary Kay predicting a 30 percent sales increase in China. Although direct selling may be taken for granted in America, it is gaining an eager fan base among women in China.
What are the social and economic benefits of the sales opportunities that are provided to women in developing countries?

Question 35

How does a sales manager, who cannot be with each salesperson in the field on a daily basis, control the performance of sales personnel?