Approach is the sales step in which a salesperson meets the customer for the

Approach is the sales step in which a salesperson

This preview shows page 45 - 47 out of 53 pages.

salesperson learns as much as possible about the prospective customer before making a sales call. Approach is the sales step in which a salesperson meets the customer for the first time. Presentation is the sales step in which a person tells the “value story” to the buyer, showing how the company’s offer solves the customers problem. But before the salesperson can present customer solutions, they must develop solutions to the present. Handling objections is the sales step in which a salesperson seeks out, clarifies, and overcomes nay customer objections to buying. Closing is the sales step in which a salesperson asks the customer for an order. Follow-up is the sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business. The steps in the just- described selling process are transaction oriented —their aim is to help salespeople close a specific sale with a customer. But in most cases, the company is not simply seeking a sale. Rather, it wants to engage the customer over the long haul in a mutually profitable relationship . Thus, the selling process must be understood in the context of building and maintain profitable customer relationships. LO4 Sales promotion consists of short-term incentives to encourage the purchase or sales of a product/service. Whereas advertising offers reasons to buy a product or service, sales promotion offers reason to buy now. Sale promotions are everywhere, coupons in newspapers etc. Sales promotion tools are used by most organizations, including manufacturers, distributors, retailers, and not-for- profit institutions. They are targeted toward final buyers ( consumer promotions ), retailers and wholesalers ( trade promotions ), business customers ( business promotions ), and members of the sales force ( sales force promotions ). Several factors have contributed to the rapid growth of sales promotion, particularly in consumer markets. First, inside the company, product managers face greater pressures to increase current sales, and they view promotion as an effective short-run sales tool. Second, externally, the company faces more competition, and competing brands are less differentiated. Increasingly, competitors are using sales promotion to help differentiate their offers. Third, advertising efficiency has declined because of rising costs, media clutter, and legal restraints. Finally, consumers have become more deal oriented. In the current economy, consumers are demanding lower prices and better deals. Sales promotions can help attract today’s more thrift-oriented consumers. Sales promotion objectives vary widely. Sellers may use consumer promotions to urge short-term customer buying or boost customer brand involvement. Objectives for trade promotions include getting retailers to carry new items and more inventory, buy ahead, or promote the company’s products and give them more shelf space. Business promotions are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople. For the sales force, objectives include getting more sales force support for current or new products and getting salespeople to sign up new accounts. Many tools can be used to accomplish sales promotion objectives. Descriptions of the main 45
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consumer, trade, and business promotion tools follow.
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