8 Incentives Incentives to members of trade include a variety of tactics Awards

8 incentives incentives to members of trade include a

This preview shows page 172 - 174 out of 199 pages.

8. Incentives Incentives to members of trade include a variety of tactics. Awards in the form of travel, gifts orcash bonuses can induce retailers and wholesalers to give a firm’s product added attention.9. Allowances Allowances to retailers and wholesalers for cooperative advertising (featuring the firm’s productsin local promotions) or payment for setting and maintaining displays is a common practice.8.4. Personal Selling Personal sellingrefers to the presentation of goods before the potential buyers and persuadingthem to purchase it. It involves face-to-face interaction and physical verification of the goods tobe purchased. The objective is not only just to sell the product to a person but also to makehim/her a permanent customer. You can also find personal selling in some shops where salesmenare employed by the shopkeeper to use this technique. For example, you can find such salesmenin jewellery stores, consumer goods stores, etc. In business,personal sellingrefers to the personal communication of information to persuade aprospective customer to buy something – a good, service, idea, or something else – that satisfiesthat individual’s needs. This definition often involves the salesperson often working withprospects or customers to examine their needs, provide information, suggest a product to meettheir needs, and provide after-the-sale service to ensure long-term satisfaction. The definitionalso involves communications between seller and buyer. The salesperson and the buyer discussneeds and talk about the product relative to how it will satisfy the person’s needs.8.4.1.The Nature of Personal SellingPersonal selling is a critical aspect of a firm's promotional strategy. When correctly used anddone well, it is a major factor in generating sales volume. It is part of promotion that:1.brings the human element into marketing transactions,2.makes it possible for the buyer to act immediately, 3.increases customer confidence in the supplier, and4.simplifies the handling of individual customer problems. 1. The Human Element is Critical Salespeople and customers deal with each other face to face. A partnership is created, one thatlasts a long time. For instance, a computer system salesperson will be involved in the installationof the system and subsequent system modifications long after the purchase order has beensigned. Familiarity, if not friendship, develops between the salesperson and customer. Thesalesperson becomes the company for the customer. Buyers do not deal just with an inanimatebusiness organization, but with human beings from that company whom they see personally and
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know. Since personal contacts are involved, it is more difficult for buyers to ignore or remove thesales influence.
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