Exam 4

Chapter 16: Personal Selling and Sales Promotion

Personal selling: Personal presentations by the firms sales force for the purpose of engaging customers,
making sales, and building customer relationships.
o Most salespeople are well-educated and well trained professionals who add value for customers
and maintain long term customer relationships
Salesperson: an individual who represents a company to customers by performing one or more of the
following activities: prospecting, communicating, selling, servicing, information gathering, and
relationship building.
o Personal selling involves interpersonal interaction and engagement between salespeople and
individuals customers (face to face, email, twitter, video/online conferences)
Sales force maintains the relationship between the customer and company. For the customer, the sales
force is the manifestation of the company. For the company, the sales force is the champion of the
customers interest.
Marketing and sales needs to work together
Sales force management: analyzing, planning, implementing, and controlling sales force activities.
o Designing sales force strategy and structures

o Recruiting, selecting, training, compensating, supervising, and evaluating the firms sales people.

Sales force structure: a company can divide sales responsibilities along several lines
o Territorial sales force structure: a sales force organization that assigns each salesperson to an
exclusive geographic territory in which that salesperson sells the companys full line. (one
product line to one industry with customers in many locations)
o Product sales force structure: a sales force organization in which salespeople specialize in selling
only a portion of the companys products or lines. (sells many products to many types of
customers)
o Customer (or market) sales force structure: a sales force organization in which salespeople
specialize in selling only to certain customers or industries. \
Complex sales force structure: a wide variety of products to many types of customers
over a broad geographic area.
Sales Force Size
o Workload approach: groups accounts into different classes according to size, account status, or
other factors related to the amount of effort required to maintain the account. It then determines
the number of salespeople needed to call on each class of accounts the desired number of times.
Outside sales force (field sales): salespeople who travel to call on customers in the field
Inside sales force: salespeople who conduct business from their offices via telephone, online and social
media interactions, or visits from prospective buyers.
Team selling: using teams of people from sales, marketing, engineering, finance, technical support and
even upper management to service, complex accounts.
Sales people have 4 key talents: intrinsic motivation, a disciplined work style, the ability to close a sale,
and the ability to build relationships with customers.
Compensation: a fixed amount, a variable amount, expenses, and fringe benefits
Sales quotas: a standard that states the amount a salesperson should sell and how sales should be divided
among the companys product.

Social Selling: using online, mobile, and social media to engage customers, build stronger customer
relationships, and augment sales performance.
Personal selling process: the steps that salespeople follow when selling, which include prospecting and
qualifying, pre-approach, approach, presentation and demonstration, handling objections, closing, and
follow-up.

Prospecting and Qualifying

o Prospecting: the sales step in which a salesperson or company identifies qualified potential
customers. They might have some leads, but they need to learn to find others. Most of these will
happen through referrals
o Qualify: how to identify the good leads, and screen out the poor ones; looking at financial ability,
volume of business, special needs, location, and possibility for growth.
Pre-Approach
o The sales step in which a salesperson learns as much as possible about a prospective customer
before making a sales call
Approach
o The sales step in which a salesperson meets the customer for the first time.
o Making a good impression
Presentation and demonstration
o Presentation: the sales step in which a salesperson tells the value story to the buyer, showing
how the companys offer solves the customers problems.
o Should be able to listen to customers needs
Handling objections
o The sales step in which a salesperson seeks out, clarifies, and overcomes any customer
objections to buying.
Closing
o The sales step in which a salesperson asks the customer for an order.
Follow-up
o Last step in the sale process
o The sales step in which a salesperson follows up after the sale to ensure customer satisfaction
and repeat business.
Sales promotion: short term incentives to encourage the purchase or sale of a product or service ex:
coupons
Consumer promotions: Sales promotion tools used to boost short-term customer buying and engagement
or enhance long term customer relationships. Ex: samples, coupons, refunds, premiums, and point-ofpurchase displays to contests, sweepstakes, and event sponsorships.

o Samples: offers of a trial amount of a product. Sample is the most effect, but most expensive
way.
o Coupons: certificates that save buyers money when they purchase a specified product. Digital
coupons becoming more popular.
o Rebates: (cash refunds) are like coupons except that the price reduction occurs after the purchase
rather than at the retail outlet.
o Price packs: (cents off deals) offer consumers savings off the regular price of a product.
o Premiums: goods offered either free or at a low cost as an incentive to buy a product. Premium
may come inside the package or outside the package, or later through the mail. ( mcdonalds
happy meal comes with a toy)
o Ad specialties (promotional products): products that have the advertisers name on them already
ex: t shirts, pens, calendars, mouse pads, tote bags etc.
o Point of purchase promotions: displays and demonstrations that take place at the point of sale ex:
at grocery stores when they let you taste test
o Contests/sweepstakes: chance to win something Ex: doodle for google.
o Event marketing/sponsorship: creating a brand marketing event or serving as a sole or
participating sponsor of events created by others.
o Trade promotions: sales promotion tools used to persuade resellers to carry a brand, give it shelf
space, and promote it in advertising.
Business promotions: sales promotion tools used to generate business leads, stimulate purchases, reward
customers, and motivate salespeople.
o Conventions and trade shows: ways to promote their product, find new leads
o Sales contest: contest for salespeople or dealers to motivate them to increase their sales
performance over a given period of time.
Developing sales promotion program
o Size of the incentive: minimum incentive necessary for a promotion to succeed.
o Conditions for participation: incentives must be offered to everyone or only to select group of
people.
o Length of promotion: too short- people miss; too long: loses its force
o Evaluation: makers should work to measure the returns
Chapter 17: Direct, Online, Social Media, and Mobile Marketing
Direct and digital marketing: engaging directly with carefully targeted individual consumers and
customer communities to both obtain an immediate response and build a lasting customer relationships.
Companies use direct and digital marketing as a business model. Some companies only sell online.
Benefits
o Convenient, easy and private
o Buyers have access to an almost unlimited assortment of goods and products
Forms of Direct and Digital marketing:
o Face to face selling
o Direct-mail marketing
Marketing that occurs by sending an offer, announcement, reminder, or other item
directly to a person at a particular address
o Catalog marketing
Direct marketing through print, video, or digital catalogs that are mailed to select
customers, made available in stores, or presented online
o Telemarketing
Using telephone to sell directly to customers.
o Direct-response television marketing

Direct marketing via television, including direct-response television advertising (or

infomercials) and interactive television advertising.
o Kiosk marketing
o Online marketing
Marketing via the internet using company websites, online ads, and promotions, email,
online video, and blogs.
Marketing website: a web site that engages consumers to move them closer to a direct
purchase or other marketing outcome.
Branded community website: a website that presents brand content that engages
consumers and creates customer community around a brand. (dont try to sell anything at
all, provide brand information instead)
Website should be visually appealing, easy to use, and useful.
Online advertising: advertising that appears while consumers are browsing online,
including display ads, search-related ads, online classifieds, and other forms
Email marketing: sending highly targeted, highly personalized, relationship-building
marketing messages via email.
Viral marketing: the digital version of word of mouth marketing: videos, ads, and other
marketing content that is so infectious that customers will seek it out or pass it along to
friends.
Blogs: online journals where people and companies post their thoughts and other content,
usually related to narrowly define topics.
o Social media marketing
Independent and commercial online communities where people congregate, socialize, and
exchange views and information.
o Mobile marketing
Marketing messages, promotions, and other content delivered to on the go consumers
through mobile phones, smartphones, tablets, and other mobile devices.
Digital and social media marketing: using digital marketing tools such as web sites, social media, mobile
apps, and ads, online videos, email, and blogs that engage consumers anywhere, anytime via their digital
devices.
Multichannel marketing: marketing both through stores and other traditional offline channels and
through digital, online, social media, and mobile channels.

Chapter 18: Creating Competitive Advantage

Competitive advantage: an advantage over competitors gained by offering consumers greater value
Competitor analysis: identifying key competitors; assessing their objectives, strategies, strengths, and
weakness, and reaction patterns; and selecting which competitors to attack or avoid.
o Identifying competitors: not only people that sell the same product; blockbuster didnt lose its
business to people selling dvds, they lost it to Netflix
Industry point of view
Market point of view: define competitors as companies that are trying to satisfy the same
customer need
o Assessing competitors: what are the competitors objectives, what do they seek in the
marketplace, what is the strategy, strengths and weakness?
Objectives: know what importance the competitor places on certain things. Also look for
new opportunities.
Strategic group: a group of firms in an industry following the same or a similar strategy.
Ex: GE and Whirlpool

Strength and Weakness: what CAN the competitors do?

Benchmarking: comparing the companys products and processes to those of
competitors or leading firms in other industries to identify best practices and find
ways to improve quality and performance.
Customer Reaction: what WILL our competitors do? Marketing managers need a deep
understanding of a competitors mentality if they want to anticipate how that competitor
will act or react.
o Competitors to Attack or Avoid
Customer value analysis: an analysis conducted to determine what benefits target
customers value and how they rate the relative value of various competitors offers.
Competitive marketing strategies: strategies that strongly position the company against competitors and
give it the greatest possible competitive advantage
Entrepreneurial marketing: most companies started by individuals who live by their wits. Visualize an
opportunity, construct flexible strategies, knock on every door to gain attention.
Formulated marketing: developing formal marketing strategies
Intrepreneurial marketing: reestablishing entrepreneurial spirit and actions that made them successful in
the first place.
Basic competitive strategies
o Overall cost leadership: lowest production and distribution costs. Low costs let the company
price lower than its competitors and win a large market share.
o Differentiation: company concentrates on creating a highly differentiated product line and
marketing program so that it comes across as the class leader in the industry.
o Focus: company focuses its efforts on serving a few market segments well rather than going after
the whole market.
Value disciplines- strategies for delivering superior customer value
o Operational excellence: company provides superior value by leading its industry in price and
convenience. Serves customers who want reliable, good-quality products or services but want
them cheaply and easily.
o Customer Intimacy: company provides superior value by precisely segmenting its markets and
tailoring its products or services to exactly match the needs of targeted customers. Ex: Zappos
o Product Leadership: company provides superior value by offering a continuous stream of
leading-edge products or services. Ex: Apple
Competitive Positions
o Market leader: (40%) the firm in an industry with the largest market share
o Market Challenger: (30%) a runner-up firm that is fighting hard to increase its market share in an
industry
o Market follower: (20%) a runner up firm that wants to hold its share in an industry without
rocking the boat
o Market nicher: (10%) a firm that serves a small segment that the other firms in an industry
overlook or ignore.

Expanding demand
o If the leading firm can expand the market they gain the most
o New users, new uses, more usage of the products
Protecting market share
o Prevent or fix weaknesses that provide opportunities for competitors, fulfill value proposition,
continuous innovation
Expanding Market share: Expanding market share increases sales

Competitor-centered: a company whose moves are mainly based on competitors actions and reactions
Customer-centered: a company that focuses on customer developments in designing its marketing
strategies
and
delivering
superior
value to its
target
customers
Marketcentered: a
company
that
pays
balanced
attention to
both
customers
and
competitors in designing its marketing strategies

Chapter 19: The Global Marketplace

Global firm: a firm that, by operating in more than one country, gains R&D, production, marketing, and
financial advantages in its costs and reputation that are not available to purely domestic competitors.
World Trade organization: reassess trade barrier and establish new rules for international trade. Also
imposes international trade sanctions, mediates global trade disputes.
Economic communities: a group of nations organized to work toward common goals in the regulation of
international trade.
Economic environments ( Two factors: industrial structure and income distribution)
o Subsistence economies: simple agriculture, consume more of their output
o Raw material exporting economies: rich in one or more natural resource, but poor in other ways
o Emerging economies: fast growth in manufacturing results in rapid growth in overall economic
growth. (BRIC countries; brazil, Russia, india, china)
o Industrial economies: major exporters of manufactured goods, services, and investment funds.
(US, Japan, Norway)
Political-Legal Environment: types of money to use
Cultural Environment: being respectful of other cultures.

Exporting: entering foreign markets by selling goods produced in the companys home country, often
with little modification.
o Indirect: working through independent international marketing intermediaries; less investment
because the firm does not require an overseas marketing organization or network, also less risk.
o Direct: they handle their own exports; more investment and risk
Joint venturing: Entering foreign markets by joining with foreign companies to produce or market a
product or service.
o Licensing:
entering foreign
markets
through
developing
an agreement
with a
licensee in the
foreign
market. For a
fee or
royalty
payments,
the licensee
buys the
right to use the
companys
manufacturing
process,
trademark,
patent,
trade secret, or
other item
of value

o Contract manufacturing: a joint venture in which a company contracts with manufacturers in a

foreign market to produce its products or provide its service.
o Management contracting: a joint venture in which the domestic firm supplies the management
know-how to a foreign company that supplies the capital; the domestic firm exports management
services rather than products.
o Joint ownership: a cooperative venture in which a company creates a local business with
investors in a foreign market, who share ownership and control
Direct investment: entering a foreign market by developing foreign based assembly or manufacturing
facilities.

Standardized
global marketing:
an
international
marketing
strategy that
basically uses
the same
marketing
strategy and mix
in all of the
companys
international
markets.
Adapted
global marketing:
an
international
marketing
approach that
adjusts the marketing strategy and mix elements to each international target market, which creates more
costs but hopefully produces a larger market share return.
Product
o Straight product extension: marketing a product in a foreign market without making any changes
to the product.
o Product adaptation: adapting a product to meet local conditions or wants in foreign markets
o Product invention: creating a new product or service for foreign markets
o Communication adaptation: a global communication strategy of fully adapting advertising
messages to local market

Whole
designing
channels

channel view:
international
that take into account

the entire global supply chain and marketing channel, forging an effective global value delivery
network.
Chapter 20: Social Responsibility and Ethics

Sustainable Marketing: socially and environmentally

responsible marketing that meets the present needs of
consumers and businesses while also preserving or
enhancing the ability of future generations to meet their
needs.
Marketing concept: organizations thrive by determining
the current needs and wants of the target customers and
fulfilling them more effectively and efficiently than
competitors do.
Societal marketing concept: considers the future welfare of consumers
Strategic planning concept: considers future company needs
Sustainable marketing concept: societal marketing and strategic planning
Criticism of individual marketing:
o High prices
o Deceptive practices
o High pressure selling
o Shoddy, harmful, or unsafe products
o Planned obsolescence
o Poor service or disadvantaged consumers
Consumerism: an organized movement of citizens and government agencies designed to improve the
rights and power of buyers in relation to sellers.

Environmentalist: an organized movement of concerned citizens, businesses, and government agencies

designed to protect and improve peoples current and future living environment.

Environmental sustainability: a management approach that involves developing strategies that both
sustain the environment and produce profits for the company.
Consumer oriented marketing: a company should view and organize its marketing activities from
consumers point of view
Customer value marketing: a company should put most of its resources into customer value building
marketing investments
Innovative marketing: a company should seek real product and marketing improvements
Sense of mission marketing: a company should define its missions in broad social terms rather than
narrow product terms
Societal marketing: a company should make marketing decisions by considering consumers wants, the
companys requirements, consumers long run interests, and societys long run interests.
Deficient products: products that have neither immediate appeal nor long run benefits.
Pleasing products: products that give high immediate satisfaction, but may hurt consumers in the long
run
Salutary products: products that have low immediate appeal but may benefit consumers in the long run
Desirable products: products that give high immediate satisfaction and high long run benefits.