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Bronis Verhage
ISBN: 9789001818661
http://www.marketingfundamentals.noordhoff.nl
© 2017 Noordhoff Uitgevers bv
GLOSSARY
Chapter 11 Sales management
Personal selling A sales person identifying prospective customers, assessing their
needs, presenting product information face-to-face, persuading the customer to make
a purchase and following up to maintain the relationship.
Order Taker Sales person who processes routine orders through the internet or over
the phone and does not engage in creative selling or persuasion.
Route Seller A type of field order taker who visits customers directly to replenish the
inventories of retailers and wholesalers.
Merchandiser Sales representative responsible for arranging promotional materials
and in-store displays for retailers
Order Getter Traditional salesperson who contacts existing and potential customers
to give them relevant information, persuade them to buy and close the sale.
Account Manager Company representative who is the primary contact for an
important customer, responsible for providing day-to-day support and maintaining the
relationship.
Team selling A form of consultative selling in which several experts – typically sales,
marketing and technical specialists – work together in developing and presenting
products and services to key decision makers of a buying organization.
Support sales people Staff who facilitate the selling process by identifying prospective
customers, creating goodwill, educating buyers and providing service after the sale.
Missionary salesperson Manufacturer’s representative who promotes goodwill by
providing detailed product information and assisting the company’s customers in
selling to their own customers (Detail person, detail rep).
Sales engineer Someone with technical expertise – often viewed as a consultant –
who does not sell products but helps to identify customer needs and solve problems by
providing technical support.
Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2017 Noordhoff Uitgevers bv
Trade salespeople staff who help the manufacturers’ customers build up their volume
by providing promotional help, for example in setting up store displays and rearranging
shelf space.
Prospecting Developing a list of potential customers from online data bases, company
sales records, and responses to ads or websites..
Referral Recommendation to speak to a new prospect – someone who may need or
want the product – by current customers, colleagues, suppliers or others.
Lead The identification of a person or company that may be a potential buyer.
Cold call Method of calling on an unfamiliar company or potential buyer without a
prior appointment.
Preapproach Collecting and analyzing background information about a potential
buyer before approaching him.
Approach The salesperson’s – carefully planned and critical – first contact with a
prospect.
Sales presentation Stage of the selling process in which the salesperson creates an
interest or desire for the product by explaining its main features and strengths,
illustrated by success stories of current users.
Canned presentation Presentation based on memorized information about the
product’s general benefits, to be adjusted to the potential buyer’s information needs.
Need-satisfaction presentation Flexible and tailored presentation to address the
specific needs and interests of the prospect.
Sellogram Matrix – to structure a sales presentation – in which specific product
features (quality, durability, etc.) are related to certain customer needs in order to
appeal to a particular prospect .
Closing Stage in the selling process in which a sales person asks the prospect for a
commitment to buy a product or service.
Trial close Selling technique in which the sales person asks a question (such as ‘What
color do you prefer?) that would usually be asked after the purchase decision.
Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2017 Noordhoff Uitgevers bv
Follow-up Post-purchase communication with a customer to ensure that his
expectations have been met.
Relationship management The management of ongoing relationships with customers
in order to meet their long-term needs.
Sales management The process of planning, organizing, implementing and controlling
the personal selling function.
Sales strategy Systematic approach to managing the company’s sales efforts,
including setting and achieving sales objectives, organizing the sales force and
executing the sales plan to meet customers’ needs.
Sales manager Management position that involves coordinating, evaluating and
motivating the efforts of multiple salespeople in order to increase their productivity.
Sales objective Specific sales goal of a company or individual to be achieved over a
certain period of time.
Management by objectives A sales management approach in which sales managers
and sales people jointly develop strategies and set performance goals for reaching
those goals, which are then used to evaluate each salesperson’s performance (MBO).
Outside sales force Salespeople who go out into the field to meet with potential
customers face-to-face.
Territorial sales force structure A type of sales force structure in which the target
market is divided into distinct districts or territories to sell the entire product
assortment to all interested buyers in that region.
Product sales force structure Sales force structure in which a separate sales force or
salesperson is used for each product line, brand or product.
Customer sales force structure Sales force organized around specific industries or
types of buyers (such as supermarket chains and specialty stores) with different needs.
Talley formula Formula used to calculate how many sales reps a firm needs, which
integrates the number of customers to be visited, the call frequency necessary to
service a customer each year, and a salesperson’s average amount of selling time
available per year. (Workload approach)
Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2017 Noordhoff Uitgevers bv
Sales plan Plan that describes the target market, sales organization, sales objectives,
strategies for achieving the objectives, resources needed and practical guidelines for
the plan’s implementation.
Inside sales force Professional sales performed remotely and not face-to-face with
the customer to support the traditional field sales force (Remote sales; Virtual sales) .
Empathy The ability to understand the customer’s problems, and to see a particular
situation as the prospect or customer perceives it.
Commission A fee paid to a salesperson for each sale made, which provides an
incentive for extra sales efforts.
Direct marketing A custom tailored marketing approach that allows a company to
communicate directly with customers by using detailed customer information from a
computerized database and direct communication tools such as interactive consumer
websites, e-mail, mobile messaging, and direct mail to generate an order or other
response.
Direct marketing communication A firm’s tailored marketing communication efforts
that allows it to effectively appeal to a narrow, carefully selected target market (Rifle
approach)
Database marketing The use of computer database technologies to systematically
collect, store, and analyze information about individual customers in order to develop
customized marketing activities.
Conversion A type of transaction that converts a trial subscription into a permanent
or new one.
List management Selling mailing lists, evaluating past direct marketing campaigns to
determine how the available information can be used more effectively in future
communications with customers, and updating the list database of customers in order
to decrease costs per order.
Interactive media Media – such as direct mail, telephone marketing and direct
response television advertising – that allow for two-way communication between the
firm and the buyer and provide a measurable response.
Direct mail An advertising message that is sent directly to a prospect in the target
market.
Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2017 Noordhoff Uitgevers bv
Telephone marketing Direct marketing system in which the phone is used as an
interactive marketing instrument to systematically approach target markets and to
develop and enhance relationships with customers.
Telemarketing Making unsolicited telephone sales calls that – due to the intrusive
nature of this practice – has acquired a bad image in the consumer market
(Teleselling).
Sponsored magazine A direct mail medium, distributed free of charge and typically
consisting of editorial articles about new products as well as advertising, that is
effective in passing on information to customers and in enhancing the relationship with
them.
Infomercial An extended television commercial for a single product presented in a
television show format.
Direct response advertising Any medium used to get an immediate response from a
target audience, eliminating an intermediary in the purchase process.
Direct response television marketing Selling a product directly over the television by
urging consumers to call a toll-free number, bypassing standard retail stores.
Television home shopping TV program or cable channel that presents products to
television viewers, encouraging them to call a toll-free number and order the products
featured in the program.
Integrated direct marketing A marketing campaign involving several media, such as
direct mail, a website, a toll-free phone number and telemarketing, all used
simultaneously.
Sales promotion A set of direct incentives to temporarily increase the basic value of a
product relative to comparable products on the market, stimulating consumers to buy
it.
Price pack deal Promotion that offers a brand at less than the regular price, or offers
buyers an extra quantity (‘Now 25% more’) though the package itself (Cents-off deal).
Rebate A partial refund of the original payment for a product from the producer (Cash
refund offer).
Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2017 Noordhoff Uitgevers bv
Redemption The rate at which buyers participate in rebates.
Coupon A certificate, usually with an expiration date, for money off the purchase
price at the point of sale.
Sample The free distribution of a small quantity of a product, usually in the early
stages of its life cycle.
Premium Item offered at no cost or at a considerable savings over the retail price with
the purchase of another product.
Self-liquidating premium A premium that the consumer pays for – including the
handling fees – by purchasing it below the regular retail price.
Contest Company-sponsored competition in which consumers can win prizes by using
their creative or analytical skills in completing a task, such as writing a slogan.
Sweepstakes Company-sponsored lottery that awards prizes on the basis of chance
alone.
Games A type of sweepstakes that covers an extended period of time, requiring
participants to, for example, collect numbers in bottle caps, every time they buy a
product.
Frequency program Incentive program that rewards loyal customers for making
multiple or repeat purchases (Loyalty program).
Trade promotions Sales promotion campaigns aimed at retailers, wholesalers, agents
or other middlemen that encourage them to carry the manufacturer’s products and
promote them effectively.
Incentive Reward for a specific behavior, such as discounts for customers
participating in promotions.
Selling-in activities Promotions to stimulate resellers to carry specific products and
keep large quantities in stock.
Selling-out activities Manufactures providing marketing tools such as flyers, window
posters, displays and other supporting store material, designed to increase the
retailers’ turnover.
Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2017 Noordhoff Uitgevers bv
Slotting fee Cash payment made to a retailer for access to shelf space in stores, for
special shelf locations or placing displays (Slotting allowance).
Display Presentation device to help retailers directing shoppers’ attention to a
particular product (Point of purchase display)
Trade show Event at which marketers exhibit and demonstrate their products to
other members of the distribution channel.
Sales force promotions Incentives to encourage sales people to improve their
performance by acquiring new customers, providing better service, or introducing new
products.
Forward Buying Customers or retailers buying more of a product than they need in
order to carry them through to the next time a reduced price is being offered.
Tailor-made promotions Exclusive, customized promotions offered by a national
brand manufacturer to ensure the cooperation of retail chain stores.
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