978-1305769786 Chapter 18 Solution Manual

DISCUSSION STARTERS

Discussion Starter 1: Sales Force Automation

ASK: How do you think technology has revolutionized personal selling?

Technology has radically altered how sales people do their jobs. The amount of data a salesperson has

access to during the sales appointment is unprecedented. Thanks to organizations, such as Salesforce.com,

Discussion Starter 2: Personal Selling Skills and Successful Job Interviewing

ASK: How can an understanding of personal selling skills and tools assist you during job interviews?

If you know personal selling skills, you are better able to understand how to read the interviewer and how

to respond to the interviewer’s questions.

Doing your homework for an interview, similar to the way a sales person plans for a sales meeting, will

allow you to be successful in the interview. Just as there are different types of buyers, there are different

Discussion Starter 3: Drug Companies and Free Samples

Drug companies often distribute free samples to doctors as a form of promotion. Pfizer provided $2.7

billion in free samples during a one-year period. Concerned medical professionals believe that brand-

name samples encourage doctors to prescribe them in place of more affordable generic alternatives or

more appropriate medicines. Free samples also bypass the pharmacist, which is risky because pharmacists

possess databases to detect how the sample might interact with other prescriptions. Drug companies claim

samples give doctors firsthand knowledge of new treatments. Additionally, a study revealed that even

after free samples are banned, there is only a slight reduction in the brand-name drugs prescribed.

ASK: Is it responsible for drug companies to encourage trials through free samples?

Discussion Starter 4: Digital Coupons

Recent years have seen an uptick in digital coupon use and redemption rates. In one year digital coupon

rates grew 141%, with 66 million digital coupons being redeemed. Digital coupons on mobile devices is

particularly popular as the vendor can simply scan the coupon’s barcode from the customer’s phone. It is

estimated that digital coupons are 10 times more likely to be redeemed than paper coupons.

ASK: Why are digital coupon redemption rates so much higher than redemption rates for print?

CLASS EXERCISES

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The types of salespeople are order getters (current-customer sales, new business sales), order takers

2. Identify the resellers in your distribution channel. Discuss the role that trade sales promotions

to these resellers could play in the development of your promotional plan.

Students will have different resellers in their distribution channels depending on their product and

their product’s target market. Distribution channels for different products can look very different.

Nevertheless, trade sales promotions to resellers are likely to play a role in the development of every

student’s promotional plan.

• Sales contests

3. Evaluate each type of consumer sales promotion as it relates to accomplishing your

promotional objectives.

Students should start off by stating their promotional objectives. They then need to go on to

outline the different consumer sales promotions and link them back to their objectives. Not all

promotional techniques discussed in this chapter will likely be helpful to every student.

There are many different consumer sales promotions methods. Students should review in their books

which are best used to attain their specific objectives. Consumer sales promotions include:

• Coupons

• Cents-off offers

with a certain product or service or otherwise on a password–protected website for classroom use.

(6) A dealer listing is dual-purpose advertising that announces a product or consumer promotion

and contains names of participating retailers that carry the product.

(7) Free merchandise may be offered to a reseller that purchases a stated quantity of the same or

different products.

15. What types of sales promotion methods have you observed recently? Comment on their

effectiveness.

This is an open-ended question that will enable students to recall some sales promotion methods they

COMMENTS ON THE CASES

VIDEO CASE 18.1: NEDERLANDER ORGANIZATION REWARDS

THE AUDIENCE

Summary

The Nederlander Organization is a theatrical organization that owns concert venues and Broadway

theaters. Nederlander describes itself as a lifestyle company, which puts them in a specific niche with a

specific type of customer. The organization engages in promotional activities for various concerts as well

as production of Broadway shows. Nederlander Organization has leveraged these relationships with their

Audience Rewards program, a type of sales promotion that has allowed them to build strong relationships

with customers by enhancing their experience. The unique nature of the industry and smaller size of their

target market allow Nederlander to create a valuable experience for customers through personal selling

and sales promotion activities. The Audience Rewards is similar to a frequent-flyer program.

Nederlander’s sales promotion program strongly benefits smaller venues. The Audience Rewards

program also depends on outside relationships with major companies that sponsor the rewards for the

with a certain product or service or otherwise on a password–protected website for classroom use.

2. How do driver appearances on television and public events contribute to promoting the

Indy Racing League?

When drivers are on television promoting a sponsor’s product, it is often done while showing the

driver in an Indy Racing Car, therefore also promoting the league. Drivers engage in personal selling

3. What is the link between sponsorships of cars and drivers by corporations and promotion

of the IRL?

Sponsorships are the use of corporate names to be associated with the racecars, the drivers, or (in the

case of a title sponsorship) all association with the league. Through sponsorships, the IRL not only