Marketing Final Exam

Reduction or rebate is in exchange for performance of

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Unformatted text preview: cribe five of these unique sales promotion tools. ANS: TRADE ALLOWANCES are price reductions offered by manufacturers to intermediaries. The price reduction or rebate is in exchange for performance of specified functions or purchasing during special periods. PUSH MONEY is a bonus that intermediaries’ sales representatives receive for pushing the manufacturer’s brand. TRAINING programs may be provided for an intermediary’s personnel if the product is complex. FREE MERCHANDISE may be offered in lieu of quantity discounts. It may also be used as payment for trade allowances provided though other sales promotions. STORE DEMONSTRATIONS can be performed at the retail establishment for customers. Customers can then sample products or see how they are used. BUSINESS MEETINGS, CONVENTIONS, AND TRADE SHOWS are all ways to meet other vendors and potential customers. PTS: 1 Communication REF: 289 OBJ: 18-3 TOP: AACSB KEY: CB&E Model Promotion MSC: BLOOMS Synthesis 7. List the advantages personal selling offers over other forms of promotion. ANS: • • • • • PTS: 1 REF: 290 Communication KEY: CB&E Model Promotion Personal selling can be used to provide a detailed explanation or demonstration of the product. This capability is especially needed for complex or new goods or services. Salespeople have the freedom to vary the message according to the motivations and interests of each prospect. When prospects raise objections, counterarguments and explanations can be provided by the salesperson. Personal selling can be directed only to qualified prospects, whereas other forms of promotion waste coverage. Personal selling costs can be controlled easily by adjusting the size of the sales force in oneperson increments. Commission plans can also help expenses. Personal selling is more effective in closing the sale than other promotional tools. OBJ: 18-4 TOP: AACSB MSC: BLOOMS Synthesis 8. Discuss the customer and product conditions that suggest personal selling is more important than advertising and sales promotion. ANS: Personal selling is more important if: • • • • • PTS: 1 REF: 290 Communication KEY: CB&E Model Promotion the product has a high value the product is custom-made there are few customers the product is technically complex customers are concentrated OBJ: 18-4 TOP: AACSB MSC: BLOOMS Synthesis 9. Compare and contrast relationship selling and traditional personal selling. ANS: Traditional selling: • • • • • Relationship or consultative selling: • • • • PTS: 1 REF: 291-292 Communication KEY: CB&E Model Promotion focuses solely on the sales transaction focuses on closing sales emphasizes a planned presentation for the sole purpose of making the sale attempts to persuade buyers to accept a point of view or convince the buyer to take some action has objectives that are frequently at the expense of the buyer (win–lose outcome) emphasizes the relationship that develops between a salesperson and a buyer bui...
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This document was uploaded on 09/29/2013.

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