Final Exam Marketing PDF

11/12 Undercover Marketing - Marketing to people who do not know that they are being marketed to. - a.k.a. Stealth marketing Personal Selling - “Salesperson” covers a wide range of positions from order takers to order getters. - Salespeople have multiple tasks: - Creat...

11/12 Undercover Marketing - Marketing to people who do not know that they are being marketed to. - a.k.a. Stealth marketing Personal Selling - “Salesperson” covers a wide range of positions from order takers to order getters. - Salespeople have multiple tasks: - Create sales - Build & maintain relationships - “Boundary spanning” - Educate customers (represent the company) - Bring information to the company (represent the customers) Prospect & Qualifying - Obtain leads and scout out qualified prospects. Use: - Referrals - Directories - Cold Calling - Qualify leads through a screening process. Preapproach - Learn as much as possible about a prospective customer before making a sales call. - Establish your call objectives: - To make an immediate sale? - To gather information only? - To qualify the prospect? - Decide on the best approach. - How and when to contact the person Approach - Salesperson meets the customer for the first time. - Iron out the following: - Salesperson’s appearance - Opening lines - Key questions about buyer’s needs - Show a display or sample to attract attention or curiosity. Presentation & Demonstration - Salesperson tells the product “story”, highlighting customer benefits. - Need-satisfaction approach: - Show solutions/results - Good listening skills - “Customer-Solution approach” - “Magic Wand” Question - “How does the customer feel about _____-?” Handling Objections - Salesperson seeks out, clarifies, and overcomes customer objections to buying. - Seek out hidden objections - Ask buyer to clarify objections - Tactics: - Salesperson is in control (e.g., has a “script”, knows which questions to ask, anticipates objections) - Establish a relationship (e.g., similarities between salesperson/buyer, references past relationship with company) - Use emotion - Refer to buyer’s core values - Reduce risk of buying - Give sense of urgency Closing - The salesperson asks the customer for the order. - Recognize closing signals. - Tactics: - Directly ask for the order - Review points of agreement - Offer to help write up the order - Ask whether the buyer wants this model or that one - Give a sense of urgency to buy Follow-Up - Follow-up after the sale to ensure customer satisfaction and repeat business. 11/14 Key talents of successful salespeople - Intrinsic Motivation - Disciplined work style - Ability to close a sale - Ability to build relationships with customers Sales Force Structure - Outside and Inside Sales Forces - Territorial: Salesperson assigned to exclusive area and sells full line of products. - Product: Sales force sells only certain product lines. - Customer: Sales force organized by customer or industry. - Complex: Combination of several of the above is most common for nationwide companies. Sales Force Evaluation - Most information about the sales force’s activities comes from reports: sales reports, call reports, expense reports. - Salespeople are typically good at reporting some things, not others. - GOOD at: Sales reports, contact report (part of call reports) - BAD at: Competitive information, complete expense reports, details of promises made (in call reports) - Management uses this information to evaluate, then offers feedback both informally and formally. Sales Promotion - Offer incentives to buy now or buy more - Invites and rewards quick consumer response - Effects are short-lived - Wide assortment of tools Sales Promotion Techniques - Sampling: Provide sample to introduce new product or create new excitement for existing product - Couponing - Promote early trial of new brand or stimulate sales of mature brand - Redemption rate has declined; coupons targeted more carefully (e.g., through cell phones) - Sampling — Couponing — Premiums — Advertising specialties — Patronage rewards — Point-of-purchase promotions — Contests and sweepstakes 12/5 Key Trends in Retailing - Growth of non-store retailing - Retail convergence and the rise of mega-retailers - Global expansion of major retailers - Growing importance of technology - Retail stores as communities and hangout places, importance of experiential retailing Rise of Disintermediation - Eliminating marketing intermediaries from a channel  - Radically new types of intermediaries that displace traditional ones AMA Statement of Ethics - Marketers must do no harm. - Marketers must foster trust in the marketing system. - Marketers must embrace, communicate and practice the fundamental ethical values that will improve consumer confidence in the integrity of the marketing exchange system. AMA Ethical Values - Honesty — to be truthful and forthright in our dealings with customers and stakeholders. - Responsibility — to accept the consequences of our marketing decisions and strategies. - Fairness — to try to balance justly the needs of the buyer with the interests of the seller. - Respect — to acknowledge the basic human dignity of all stakeholders. - Openness — to create transparency in our marketing operations. - Citizenship — to fulfill the economic, legal, philanthropic and societal responsibilities that serve stakeholders in a strategic manner. Sustainable Marketing Social Criticisms of Marketing - Individual - High prices - Deception  - High pressure selling - Planned obsolescence - Harmful products - Society - Materialism - Unreal expectations and desires - Cultural pollution - Taking advantage of children, lower socioecon, etc - Few social goods