Deck 17: Personal Selling and Sales Promotion

Question 1

You have been hired by a discount sporting-goods retailer for an over-the-counter sales position. You have completed a training course that includes learning about the products, assisting customers, and cross-selling. You have made several good friends in the training course and sometimes get together after work to go running, play golf, or have dinner. You've noticed that one of your friends has really taken the training course to heart and has adopted a very aggressive attitude toward customers in the store, pushing them to buy just about anything, whether they need it or not.
Should you discuss the situation with your friend? Should you discuss it with your supervisor? Explain your response.

Answer 1

It can be sort out by discussing with the friend. It is the responsibility of the team member to coordinate and help other team members. Even still, if the friend repeats the same, then it should be discussed with the supervisor.

Question 2

What is trade promotion? What are its objectives?

Answer 2

Trade promotion is a marketing technique which is aimed at increasing the demand for products and services in retail stores. It is generally based on special pricing, display fixtures and demonstrations.
The following are its objectives :
• It encourages resellers to stock the new products and motivates to carry on the existing products and services.
• Effective consumer promotion : One of the main objectives of trade promotion is to maximize the consumer oriented sales promotion. It helps in reaching out to the masses across the geographical area.
• Offering of financial incentives : Specific financial incentives are offered to the wholesalers and retailers that purchase or promote specific products.
• Timing and cost effectiveness : Trade promotions are helpful in improving the costs and time in transferring the goods from one place to another.
• Quickly improves retail sales : A careful timing and attention to cost helps in improving the retail sales quickly.

Question 3

Compensation systems. Go to the websites listed below and review the material on compensation systems. Prepare a report outlining the major issues associated with designing a sales compensation system. www.evancarmichael.com/Sales/414/Compensationsystems- in-sales-organizations.html www.inc.com/guides/sales-compensation-plan.html www.davekahle.com/compfeature.html

Answer 3

The issues with the compensation systems are as follows:
• Financial appreciation of the performance is exclusively aligned with the commission.
• Compensation is completely based on a single variable - turnover results.
• The performance standards for the calculations of compensation are informal as there is no cohesion between the targets and incentives.
• Another major issue is that some firms they divide the compensation in such a way that the large portion is given to the leads and the rest are distributed to the team players.
• Some firms pay 100% commission. Those employees who receive 100% commission are hesitant to move from their current sales target to new targets. This is mainly due to the reason that they have to start the process newly for the new targets whereas existing targets can be achieved with additional efforts.

Question 4

With a partner, choose one of the following sales situations. Then take turns coming up with creative ways to close the deal, with one of you playing the customer and the other playing the salesperson. Present your closing scenarios to the class.
a. You are a sales associate at a car dealership, and a potential customer has just test-driven one of your newest models. You have handled all the customer's objections and settled on a price. You don't want the customer to leave without agreeing to purchase the car.
b. You operate a lawn-care business and have visited several homeowners in a new development. Three of them have already agreed to give your service a try. You are meeting with the fourth and want to close that sale, too.

Question 5

What is team selling? Describe a situation in which you think it would be effective.

Question 6

Assume that a friend asks you to solicit donations for a local charity (you pick the charity). Outline your approach and presentation as a salesperson would.

Question 7

The Consumer Electronics Show (CES) is one of the largest trade shows in the world. Visit the CES website and answer the following questions:
a. When and where is the CES held?
b. How many attended the most recent CES? How many firms and organizations had exhibits?
c. What were the major new products introduced at the most recent CES? www.cesweb.org

Question 8

Why is it important for a salesperson to understand order processing-regardless of the type of selling he or she is engaged in?

Question 9

How does each of the following factors affect the decision to emphasize personal selling or advertising and sales promotion?
a. geographic market concentration
b. length of marketing channels
c. degree of product technical complexity

Question 10

Why is the recruitment and selection stage of the hiring process one of a sales manager's greatest challenges?

Question 11

Private Jets: In Rarefied Air
Welcome to the world of the rich and famous-where people relax in luxury on their own small jet planes rather than climb aboard a commercial airliner and fold themselves into a cramped cabin along with 100 or more fellow passengers. Billionaires, CEOs, and companies-particularly those overseas-constitute a lively, growing marketplace for small jets. One of the leading manufacturers of business aircraft, Brazil-based Embraer, markets its Phenom line that includes the entry-level 100 (valued at $3.6 million) and the 300 (an upgraded model particularly appealing to jet owners who want to trade up). Phenoms can accommodate four passengers and can fly at 41,000 feet fully loaded.
Embraer is seeing its product line beginning to take off-pardon the pun-in Asia, a region that already accounts for 12 percent of the world's business jets. Embraer recently opened a plant in Harbin, China, to help meet market need. In a recent year, Embraer took orders for more than 800 of its Phenom 100s and 300s.
Embraer has recently penetrated the India market, where its prospects include training schools, charter companies, businesses, and individuals interested in fractional ownership. In prospecting, the company considers such factors as a company's economic growth, corporate profits, and stock performance. After just a few months in India, Embraer's orders have topped 30. Planning for the future, Embraer has partnered with Mumbai-based Indamer as its authorized service center and has begun training mechanics and engineers to work on its planes. Embraer isn't the only player in this niche market. Italian aircraft manufacturer Piaggio Aero Industrie is building business jets for customers in India and the Middle East.
According to some industry analysts, the market for private jets enjoyed a brief boom period before declining in the wake of widespread global criticism over companies' extravagant spending and corporate waste. Today, however, analysts see an uptick in the sale of used jets-a harbinger of better days ahead for new aircraft-with prospective markets for private jets including Russia, Mexico, and China.
Suppose you had the financial means and the desire to buy a private jet. How would you locate a dealer? Some turn to salespeople like George Rependa, a Canadian, whose company-Executive Aircraft Services-brokers the sale of private airplanes. Rependa, a professional pilot, says there are only a few people in his business. They travel the globe inspecting and evaluating planes, setting up deals, arranging financing, and doing due diligence on buyers and sellers (as well as the planes). Their expenses, he says, are "huge"-but commissions from such technical, specialized sales are even higher. And, as Rependa points out, he's selling a complicated product: "Selling an airplane is not like selling a washing machine."
But if you lack the cash to buy a jet of your own, take heart. You can still enjoy a luxury ride by booking a flight with Los Angeles- based Spectrum Air, a player in the luxury private jet industry. Passengers fly on one of the Gulfstream IVs or Falcon 2000 jets in Spectrum's fleet and enjoy the same amenities as, say, a Hollywood producer or Oscar-winning actor on the way to the Sundance film festival.
Who might be a good prospect for a private jet? If you were a salesperson for such aircraft, how would you go about qualifying a prospect?

Question 12

On your own or with a classmate, go online and research a firm such as General Mills, Ford, or Burger King to find out what kinds of consumer-oriented promotions the company is conducting for its various brands or individual products. Which promotions seem the most appealing to you as a consumer? Why? Present your findings to the class.

Question 13

Since the implementation of the national Do Not Call Registry, some Americans have noticed an increase in door-to-door selling as well as emails containing sales messages. As a marketer, do you think this type of selling is effective? Why or why not?

Question 14

What is the role of a sales incentive?

Question 15

You have been hired by a discount sporting-goods retailer for an over-the-counter sales position. You have completed a training course that includes learning about the products, assisting customers, and cross-selling. You have made several good friends in the training course and sometimes get together after work to go running, play golf, or have dinner. You've noticed that one of your friends has really taken the training course to heart and has adopted a very aggressive attitude toward customers in the store, pushing them to buy just about anything, whether they need it or not.
Do you agree with your friend's actions? Why or why not?

Question 16

Food manufacturers often set up tables in supermarkets and offer free samples to shoppers, along with coupons for the promoted items. Sometimes restaurants offer free coffee or drink refills. What other products might lend themselves to sampling? Make a list. Pick one of the items and come up with a sampling plan for it. Where and when would you sample? To whom would you offer samples?

Question 17

Sales careers. Visit the three websites listed here and review the material on careers in sales. Make a list of five interesting facts about sales careers. Did this exercise make you more or less interested in a sales career? Explain your answer. www.collegegrad.com/careers/marke.shtml www.wetfeet.com/Careers-and-Industries/Careers/Sales. aspx www.bls.gov/oco/ocos020.htm

Question 18

With a classmate, design a specialty advertising item for one of the following companies or its products, or choose one of your own. Present your design sketches to the class.
a. SeaWorld or Busch Gardens
b. Dunkin' Donuts
c. Verizon Wireless
d. Equal Exchange coffee
e. Apple iPad

Question 19

Cross-selling can be an effective way for a firm to expand. Locate an advertisement for a firm you believe could benefit from cross-selling. List ways it could offer multiple goods or services to the same customer. Then create a new ad illustrating the multiple offerings.

Question 20

Suppose you are hired as a salesperson for a firm that offers prep courses for standardized tests. Where might you find some leads?

Question 21

Which of the four sales channels is each of the following salespeople most likely to use?
a. salesperson in a Macy's store
b. Coldwell Banker real estate agent
c. route driver for Keebler snack foods (sells and delivers to local food retailers)
d. technical support for HP

Question 22

What is expectancy theory? How do sales managers use it?

Question 23

Private Jets: In Rarefied Air
Welcome to the world of the rich and famous-where people relax in luxury on their own small jet planes rather than climb aboard a commercial airliner and fold themselves into a cramped cabin along with 100 or more fellow passengers. Billionaires, CEOs, and companies-particularly those overseas-constitute a lively, growing marketplace for small jets. One of the leading manufacturers of business aircraft, Brazil-based Embraer, markets its Phenom line that includes the entry-level 100 (valued at $3.6 million) and the 300 (an upgraded model particularly appealing to jet owners who want to trade up). Phenoms can accommodate four passengers and can fly at 41,000 feet fully loaded.
Embraer is seeing its product line beginning to take off-pardon the pun-in Asia, a region that already accounts for 12 percent of the world's business jets. Embraer recently opened a plant in Harbin, China, to help meet market need. In a recent year, Embraer took orders for more than 800 of its Phenom 100s and 300s.
Embraer has recently penetrated the India market, where its prospects include training schools, charter companies, businesses, and individuals interested in fractional ownership. In prospecting, the company considers such factors as a company's economic growth, corporate profits, and stock performance. After just a few months in India, Embraer's orders have topped 30. Planning for the future, Embraer has partnered with Mumbai-based Indamer as its authorized service center and has begun training mechanics and engineers to work on its planes. Embraer isn't the only player in this niche market. Italian aircraft manufacturer Piaggio Aero Industrie is building business jets for customers in India and the Middle East.
According to some industry analysts, the market for private jets enjoyed a brief boom period before declining in the wake of widespread global criticism over companies' extravagant spending and corporate waste. Today, however, analysts see an uptick in the sale of used jets-a harbinger of better days ahead for new aircraft-with prospective markets for private jets including Russia, Mexico, and China.
Suppose you had the financial means and the desire to buy a private jet. How would you locate a dealer? Some turn to salespeople like George Rependa, a Canadian, whose company-Executive Aircraft Services-brokers the sale of private airplanes. Rependa, a professional pilot, says there are only a few people in his business. They travel the globe inspecting and evaluating planes, setting up deals, arranging financing, and doing due diligence on buyers and sellers (as well as the planes). Their expenses, he says, are "huge"-but commissions from such technical, specialized sales are even higher. And, as Rependa points out, he's selling a complicated product: "Selling an airplane is not like selling a washing machine."
But if you lack the cash to buy a jet of your own, take heart. You can still enjoy a luxury ride by booking a flight with Los Angeles- based Spectrum Air, a player in the luxury private jet industry. Passengers fly on one of the Gulfstream IVs or Falcon 2000 jets in Spectrum's fleet and enjoy the same amenities as, say, a Hollywood producer or Oscar-winning actor on the way to the Sundance film festival.
In your opinion, what would be the advantages and disadvantages of working as a salesperson in a niche industry like private or business jets? For someone interested in that kind of job, what would be the barriers to entry?

Question 24

What is the role of sales promotion in the marketing effort?

Question 25

Green Mountain Coffee Roasters is well known for its specialty coffees, available in many retail outlets such as supermarkets and convenience stores. But visit a medical office or a car dealership, and you might find it there as well-in one-cup dispensers, ready for individuals to brew while waiting. This requires personal selling to office managers, doctors, and the like. What role does relationship selling play in this situation? What kind of training might Green Mountain sales reps receive?

Question 26

What are the benefits of sampling? What are the drawbacks?