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6. Heavy equipment salesperson
7. Agent for a snack food distributor who only stocks shelves
8. Door-to-door cosmetics salesperson
9. Insurance salesperson
10. Agent for a snack food distributor who fills a retailer’s orders
Answers:
The most likely answers:
1. Missionary salesperson
Class Exercise 3: The Personal Selling Process
This exercise is recommended as a group activity.
In this chapter, you learned about the elements of the personal selling process. All of you have
participated in this process and in this exercise you will analyze one encounter.
Step 1: Discuss within your group your experiences with various types of sales people. Choose one
encounter, either positive or negative.
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CHAPTER QUIZ
1. Which of the following types of salespeople facilitate the selling function but are not involved solely
with making sales?
a. Field order takers
b. Inside order takers
c. Order getters who focus on current-customer sales
d. Order getters who focus on new-business sales
e. Support salespeople
2. The first step in the selling process is
a. preapproach.
b. approaching the customer.
c. making the presentation.
d. overcoming objections.
e. prospecting.
3. In order to encourage purchases of consumer products, marketers may offer to let buyers pay less
than the regular price shown, a consumer sales promotion method known as
4. Sales promotion is defined as a(n)
a. activity used as a direct inducement to resellers, salespeople, or consumers.
b. advertising campaign.
c. cyclical activity aimed at producing short-run effects on sales.
d. noncyclical activity aimed at producing long-run effects.
e. material used in personal selling.
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SEMESTER PROJECT
In this chapter, you learned about the elements of the personal selling process. In this exercise you will
learn how following those elements can lead to a successful interview and a job offer.
Prospect: Identify two firms with which you would like an interview.
Pre-approach: Gather information about each firm and what they are looking for in entry-level applicants.
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ANSWERS TO DISCUSSION AND REVIEW QUESTIONS
1. What is personal selling? How does personal selling differ from other types of promotional
activities?
Personal selling is a process of informing customers and persuading them to purchase products
2. What are the primary purposes of personal selling?
The primary purposes of personal selling can be grouped into three general categories: a) to find
3. Identify the elements of the personal selling process. Must a salesperson include all these
elements when selling a product to a customer? Why or why not?
The personal selling process consists of several elements or steps. The first step is prospecting and
evaluating. This involves developing a list of potential customers. After developing a list of
4. How does a salesperson find and evaluate prospects? Do you consider any of these methods to
be ethically questionable? Explain.
A salesperson seeks the names of prospects from several sources, including company sales records,
consumers’ information requests from advertisements, other customers, newspaper announcements
5. Are order getters more aggressive or creative than order takers? Why or why not?
Order getters generally are considered more creative and aggressive than order takers because they
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6. Why are team selling and relationship selling becoming more prevalent?
Team selling involves the salesperson joining with people from the firm’s financial, engineering, and
7. Identify several characteristics of effective sales objectives.
Sales objectives should be stated in precise, measurable terms and be specific regarding the time
8. How should a sales manager establish criteria for selecting sales personnel? What do you think
are the general characteristics of a good salesperson?
A sales manager must develop a set of characteristics that makes people especially well-suited for the
9. What major issues or questions should management consider when developing a training
program for the sales force?
The major issues or questions to consider when developing a sales force training program are the
following:
a. Who should be trained? Training programs can be directed toward the total sales force or toward
a segment of it.
10. Explain the major advantages and disadvantages of the three basic methods of compensating
salespeople. In general, which method would you prefer? Why?
The straight salary method of compensation provides salespeople with maximum security, gives the
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11. What major factors should be taken into account when designing the size and shape of a sales
territory?
In designing the size and shape of sales territories, the sales manager considers several major factors.
12. How does a sales manager, who cannot be with each salesperson in the field on a daily basis,
control the performance of sales personnel?
Because a sales manager ordinarily does not travel with each salesperson, information is needed
13. What is sales promotion? Why is it used?
Sales promotion is an activity and/or material that acts as a direct inducement, offering added value or
incentive for the product to resellers, salespeople, or consumers. Sales promotion activities and
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14. For each of the following, identify and describe three techniques and give several examples: (a)
consumer sales promotion methods and (b) trade sales promotion methods.
Students’ choices for techniques and examples may vary, but they will include any of the following:
a. Consumer sales promotion methods
(4) Frequent-user incentives reward customers who engage in repeat purchases. Examples of
frequent-user incentives include frequent-flyer tickets and free food received after a number
of food purchases are made at a specific restaurant.
(5) Point-of-purchase displays include outside signs, window displays, counter pieces, display
racks, and self-service cartons. These are used to encourage retailers to carry a firm’s product.
(6) Demonstrations are supplied by the manufacturer and are good for attracting attention. They
frequently show how a product works and sometimes involve the preparation and distribution
of the product. An example is the demonstration of a product in an appliance store.
b. Trade sales promotion methods
(1) Buying allowances are temporary price reductions to resellers for the purchase of specified
quantities. They are used as an incentive to handle new products, achieve temporary price
reductions, or stimulate the purchase of an item in quantities larger than usual.
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(2) A buy-back allowance is a secondary sales promotion method given to resellers after an
initial promotional deal is over to stimulate repurchase. Such allowances are used to
encourage cooperation in the initial transaction and in restocking.
(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
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ANSWERS TO APPLICATION QUESTIONS
1. Briefly describe an experience you have had with a salesperson at a clothing store or an
automobile dealership. Describe the steps the salesperson used. Did the salesperson skip any
steps? What did the salesperson do well? Not so well? Would you describe the salesperson as an
order getter, an order taker, or a support salesperson? Why? Did the salesperson perform more
than one of these functions?
2. Leap Athletic Shoe Inc., a newly formed company, is in the process of developing a sales
strategy. Market researchers have determined that sales management should segment the
market into five regional territories. The sales potential for the North region is $1.2 million; for
the West region, $1 million; for the Central region, $1.3 million; for the South Central region,
$1.1 million; and for the Southeast region, $1 million. The firm wishes to maintain some control
over the training and sales processes because of the unique features of its new product line, but
Leap marketers realize that the salespeople need to be fairly aggressive in their efforts to break
into these markets. They would like to provide the incentive needed for the extra selling effort.
What type of sales force compensation method would you recommend to Leap? Why?
Leap should offer a combination compensation plan, in which salespeople receive a fixed salary plus
3. Consumer sales promotions aim to increase sales of a particular retail store or product. Identify
a familiar type of retail store or product. Recommend at least three sales promotion methods
that could effectively promote the store or product. Explain why you would use these methods.
Student answers will vary. They should pick at least three promotion methods from coupons, cents-
4. Producers use trade sales promotions to encourage resellers to promote their products more
effectively. Identify which method or methods of sales promotion a producer might use in the
following situations, and explain why the method would be appropriate.
a. A golf ball manufacturer wants to encourage retailers to add a new type of golf ball to
current product offerings.
b. A life insurance company wants to increase sales of its universal life products, which
have been lagging recently (the company has little control over sales activities).
c. A light bulb manufacturer with an overproduction of 100-watt bulbs wants to encourage
its grocery store chain resellers to increase their bulb inventories.
Students should select their answers from the “Trade Sales Promotion Methods” section. The most
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5. In the cosmetics industry, sales promotions reign supreme. You manufacture and market
organic skin creams which are sold nationwide at your own ‘boutiques’ inside various
department stores. You are considering two different promotions for your newest lotion,
which retails for $19.99. The first is providing free samples in select stores. Each sample
will cost about 45¢ per customer. After carefully examining market research, you estimate
that 15,000 customers will try the free sample, with 35 percent opting to purchase the
product. The second promotion is a dollar–off coupon that provides a discount on select
products. The coupons would be sent to all 100,000 current customers on your mailing list
at a cost of 53¢ per customer. In the past, the coupons have had a 13 percent redemption
rate. Which promotion would you adopt based upon the information provided? What is
some additional information that could help you in choosing the best option?
Students should perform a cost analysis to find the best solution:
Samples
Coupons
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ANSWERS TO INTERNET EXERCISE
TerrAlign offers consulting services and software products designed to help a firm maximize control and
deployment of its field sales representatives. See how the company provides sales territory management
solutions by visiting www.terralign.com.
1. Identify three features of TerrAlign software that are likely to benefit salespeople.
2. Identify three features of TerrAlign software that are likely to benefit sales managers.
3. Why might field sales professionals object to the use of software from TerrAlign?
Territories with equal sales potential usually will be unequal in geographic size; this causes
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ANSWERS TO DEVELOPING YOUR MARKETING PLAN
The information obtained from these questions should assist you in developing various aspects of
your marketing plan found in the Interactive Marketing Plan exercise at www.cengagebrain.com.
1. Review the various types of salespeople described in this chapter. Given your promotional
objectives (from Chapter 17), do any of these types of salespeople have a place in your
promotional plan?
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.
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 .
• Consumer contests
• Consumer games
• Sweepstakes
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COMMENTS ON THE CASES
VIDEO CASE 19.1: MURRAY’S CHEESE ACHIEVES SUCCESS
THROUGH PERSONAL SELLING
Summary
This case discusses how a cheese shop used personal selling to become a thriving business—and attracted
Kroger’s attention in the process. Although for years Murray’s Cheese was little more than a local
Greenwich Village hole-in-the-wall, its quality cheeses and excellent customer service have now made it
renowned across the nation. It spends zero money on advertising; instead, its in-store cheesemongers use
personal selling to form relationships and instill customer loyalty. Its success resulted in a lucrative
partnership with Kroger Supermarkets.
Questions for Discussion
1. How would you explain the sales presentation that is most effective for selling Murray’s cheese
products?
Murray’s sales force uses relationship-based personal selling to achieve sales. An approach, a quick
2. How would you apply the concept of relationship selling to building long-term customers at
Murray’s Cheese?
In its approach, the sales force uses free samples and then offers to try the cheese with the customer to
3. Do you think that Murray’s Cheese salespeople need extensive motivation and training?
Yes. To create a customer-friendly environment, Murray’s cheesemongers must be highly informed
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CASE 19.2: DIRECT SELLING IN CHINA BOOMS IN THE 21ST
CENTURY
Summary
This case discusses how personal direct selling has gone from being a banned activity to becoming a
booming industry in China. Direct selling was banned in 1998 due to riots that occurred over illegal
pyramid schemes. In 2006 direct selling was once again allowed in China—albeit with some
restrictions—but pyramid schemes and multi-level marketing were declared illegal. Direct selling has
become a multi–billion industry in China. It has taken off among women in particular because it is
flexible and allows them to earn income in these uncertain times.
Questions for Discussion
1. Why are direct selling personal sales representatives legitimate or authentic salespeople?
Direct selling personal sales representatives are legitimate salespeople because many of the same
2. Why do you think direct selling is even more successful in China than in the United States?
In China women do not have as many opportunities to advance as women in America. Direct
3. What are the social and economic benefits of the sales opportunities that are provided to
women in developing countries?
Women in the direct selling industry get to socialize with other women direct sellers (through training
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STRATEGIC CASE 7: INDY RACING LEAGUE (IRL) FOCUSES ON
INTEGRATED MARKETING COMMUNICATIONS
Summary
This case discusses how the Indy Racing League (IRL) is using integrated marketing communication
to reinvigorate the sport of open–wheel racing. Because the split between the IRL and CART caused
such a rift, open–wheel racing was overtaken by stock–car racing. Now, with open-wheel racing once
again unified, the IRL is engaging in several integrated marketing initiatives to boost popularity and
compete with NASCAR.
Questions for Discussion
1. How does the IRL utilize the various components of integrated marketing communication?
Advertising, personal selling, and public relations are all essential for the IRL. The league is
engaging in advertising with an ad campaign, started in 2005, targeting 18–34 year old males. The
2. How do driver appearances on television and public events contribute to promoting the
IRL?
When drivers are on television promoting a sponsor’s product, it is often done while showing the
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
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INSTRUCTIONS FOR ROLE-PLAY TEAM CASE
ROLE-PLAY TEAM CASE EXERCISE 7: SHOCKVOLT ENERGY
DRINK
This role-play team case exercise is designed to simulate actual marketing decision making in the real
world. Students take on assigned roles and then participate in a team discussion of the case.
Preparation
Break the class into teams of 5. The entire team should read the Background section.
Each student will take on a role of a particular employee within the organization. Even though all of the
Team Meeting
Students should try to accurately represent the motivations and interests of their individual roles during a
team discussion (15-45 minutes depending on class activities). Teams should discuss each of the issues in
the case and complete any activities mentioned in the Background section.
The issues for Shockvolt include:
• Promotions for energy drinks are becoming more extreme, and Shockvolt is starting to appear
corporate and not as edgy as its competitors.
This case will require students to complete the following activities:
• Reevaluate Shockvolt’s marketing strategy and decide how to improve the company’s
promotions.
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Class Discussion (optional)