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Some questions answered in Chapter 15

Some questions answered in Chapter 15. What is a reseller? How does the buying process of a reseller differ from the buying process of an end user? What common terms and conditions apply to such sales, and how do they affect sales?

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Some questions answered in Chapter 15

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  1. Some questions answered inChapter 15 What is a reseller? How does the buying process of a reseller differ from the buying process of an end user? What common terms and conditions apply to such sales, and how do they affect sales? How do salespeople help resellers sell their products and services? How do salespeople build partnerships with resellers? What role do trade shows and markets play in the sale of goods to the trade?

  2. Remember when we talked about how that music CD gets to you? Plasticparts mfr. Electronicequipmentmfr. Telephonecompany Recordingcompany Packagingmfr. Retailer Distributor Consumer Accountingfirm Truckingfirm

  3. Could anyone get excited selling electrical fixtures? Are you focusing on the product or on what the product does for the retailer?

  4. Why buy Banquet frozen meals? Coupon means lower price, saves money Coupon will increase sales Easy to prepare –anyone can fix a good meal Heavy advertising will improve awareness Large portions will filljust about anyone Growing segment means growing sales Variety means Banquet can be part of almost every evening meal without getting tired of it Competitive pricing to buildsales Banquet is well-known and trusted Banquet has strong market image, means fast consumer acceptance

  5. Return on investment Think of a major purchase you’ve made. What was your return on your investment?

  6. Marketing math • Tom’s Tropical Fish Store buys an exotic tropical fish for $10 and sells it for $15. The markup is: • 15% • 25% • 50% • 100% • 150%

  7. There are three major questions often asked by a reseller Regarding turnover:How quickly and easily will your product sell? Regarding sales:How much of it will I sell? Regarding profit margin:At what profit will it sell?

  8. The Strategic Profit Model Exhibit 15.2 Net Sales Gross Margin Cost of Goods Sold Net Profit Net Profit Margin Variable Expenses Net Sales Total Expenses Gross Margin Return on Investment Fixed Expenses Net Sales Inventory Turnover Inventory

  9. How is the Internet changing the role and importance of salespeople?

  10. Working with wholesalers • There are many manufacturers of products for setting up and maintaining fish aquariums. A company like Aquarium Systems would like its wholesalers to recommend its products rather than competing brands. In terms of its wholesaler, Aquarium Systems would like to create: • product awareness • brand equity • product equity • mind share • brand loyalty

  11. Why might a retailer be opposed to spiffs?

  12. Any questions about the terminology? Automatic replenishment (AR) Breaking bulk Buyback Cash discounts Category captain Category management Consignment Contests Co-op advertising Deferred dating Efficient customer response (ECR) Electronic data interchange (EDI) Forward buy Freestanding insert Gross profit margin Guaranteed price Inventory turnover Just in time inventory (JIT) Letters of credit List price Markdown Market share Markup Merchandise markets Mind share Net price Net profit margin Net sales Push money (PM) Quick response (QR) Resellers Selling history Spiffs Stock keeping unit (SKU) Strategic profit model (SPM) Suggested retail price Trade discounts Trade fairs Trade promotions Trade shows Turnaround

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