Chapter 16 One to One Trade Promotion Direct Marketing and Personal Selling trade promotions Promotions that focus on members of the trade which include distribution channel members such as retail salespeople or wholesale distributors that a firm must work with in order to sell its products Technique Primary Target Description Example Allowances discounts and deals Trade Co op Advertising Trade and consumers Trade Trade and consumers Trade and consumers Trade Trade Trade shows Promotional products Point of purchase POP displays Incentive programs Push money Retailers or other organizational customers receive discounts for quantity purchases or for providing special merchandising assistance Retailers get a discount for using a special Thanksgiving display unit for Pepperidge Farm Stuffing Mix Manufacturers pay part of the cost of advertising by retailers who feature the manufacturer s product in their ads Toro pays half of the cost of Brad s Hardware Store newspaper advertising that features Toro lawn mowers Many manufacturers showcase their products to attendees A company builds awareness and reinforces its image by giving out premiums with its name on them In store exhibits attract consumers attention Many POP displays also serve a merchandising function The National Kitchen and Bath Association trade shows allow manufacturers to display their latest wares to owners of kitchen and bath remodeling stores Coors distributors provide bar owners with highly sought after Coors Light neon signs Caterpillar gives customers caps with the Caterpillar logo The Behr s paint display in Home Depot stores allow consumers to select from over 1 600 colors including 160 Disney colors A prize is offered to employees who meet a prespecified sales goal or who are top performers during a given period Mary Kay cosmetics awards distinctive pink cars to its top selling representatives Frequent flyer points A particular type of incentive program in which salespeople are given a bonus for selling a specific manufacturer s product A retail salesperson at a cosmetics counter gets 5 every time she sells a bottle of Glow perfume by JLo push money allowances discounts and deals co op advertising trade shows promotional products Point of Purchase POP displays Incentive programs merchandising allowance Reimburses the retailer for in store support of the product case allowance A discount to the retailer or wholesaler based on the volume of product ordered co op advertising A sales promotion where the manufacturer and the retailer share the cost trade shows Events at which many companies set up elaborate exhibits to show their products give away samples distribute product literature and troll for new business contacts promotional products Goodies such as coffee mugs T shirts and magnets given away to build awareness for a sponsor Some freebies are distributed directly to consumers and business customers others are intended for channel partners such as retailers and vendors Point of purchase POP displays In store displays and signs push money A bonus paid by a manufacturer to a salesperson customer or distributor for selling its product direct marketing Any direct communication to a consumer or business recipient designed to generate a response in the 1 Chapter 16 One to One Trade Promotion Direct Marketing and Personal Selling form of an order a request for further information and or a visit to a store or other place of business for purchase of a product Direct response TV DRTV Infomercial Catalog A collection of products offered for sale in book form usually consisting of product descriptions accompanied by photos of the items direct mail A brochure or pamphlet that offers a specific good or service at one point in time Telemarketing The use of the telephone to sell directly to consumers and business customers direct response advertising A direct marketing approach that allows the consumer to respond to a message by immediately contacting the provider to ask questions or order the product direct response TV DRTV Advertising on TV that seeks a direct response including short commercials of less than two minutes 30 minute or longer infomercials and home shopping networks m commerce Promotional and other e commerce activities transmitted over mobile phones and other mobile devices such as smartphones and personal digital assistants PDAs Short messaging system marketing SMS personal selling Marketing communication by which a company representative interacts directly with a customer or prospective customer to communicate about a good or service Factors that influence a firm s emphasis on personal selling If the product is a custom good or personal product If there are trade in products If negotiation is required If a push strategy is used If the decision maker has a higher status within the organization If the purchase is a new task for the customer If the product is highly technical or complex If the customer is very larger If the product is expensive Technical specialist Sales Jobs Order taker Missionary salesperson New business salesperson Order getter Team selling order taker A salesperson whose primary function is to facilitate transactions that the customer initiates technical specialist A sales support person with a high level of technical expertise who assists in product demonstrations missionary salesperson A salesperson who promotes the firm and tries to stimulate demand for a product but does not actually complete a sale new business salesperson The person responsible for finding new customers and calling on them to present the company s products order getter A salesperson who works to develop long term relationships with particular customers or to generate new sales Team selling The sales function when handled by a team that may consist of a salesperson a technical specialist and others transactional selling A form of personal selling that focuses on making an immediate sale with little or no attempt to develop a relationship with the customer relationship selling A form of personal selling that involves securing developing and maintaining long term relationships with profitable customers creative selling process The process of seeking out potential customers analyzing needs determining how product attributes might provide benefits for the customer and then communicating that information 2 Chapter 16 One to One Trade Promotion Direct Marketing and Personal Selling Step 1 prospecting A part of the selling