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Unformatted text preview: cribe five of these unique sales promotion tools.
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
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.
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.
• • •
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
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.
Personal selling is more important if:
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.
Traditional selling: •
Relationship or consultative selling:
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
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
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This document was uploaded on 09/29/2013.
- Fall '13