Principles And Procedures Related To Selling

Front 1

Successful retail sales often require studies of the market to determine if a given product will sell in retail and why. Name some market studies are frequently used:

Back 1

1) Jury of Executive Opinion

2) Sales Forces Composite

3) Expert Surveys

4) Survey of Buyer Intentions

5) Survey of Buyer Intentions

6) Market Tests

7) Simple Trend Analysis

8) Regressions Analysis

Front 2

Describe the market study Jury of Executive Opinion

Back 2

Jury of Executive Opinion

This method involves combining and averaging sales projections of executives in an organizations various departments to arrive at a market analysis conclusion

Front 3

Describe the market study Sales Forces Composite

Back 3

Sales Forces Composite

Involves asking salespeople, those who are in constant contact with the customer, to forecast sales and product recommendations in their
territory.

Front 4

Describe the market study Expert Surveys

Back 4

Expert Surveys

This is the market research and sales forecasting method that involves the participation of experts outside the organizations, those with specialized knowledge in the given market: consultants, economists, and retired executives.

Front 5

Describe the market study Survey of Buyer Intentions

Back 5

Survey of Buyer Intentions

Often used in markets that are deeply niched, this method consists of asking potential customers if they intend to purchase a specific product during a specific period of time, and how many units they intend to purchase.

Front 6

Describe the market study Survey of Delphi Method

Back 6

Delphi Method

Quite complex, this method involves surveying (typically by mail) a panel of experts from inside and outside the organization to obtain anonymous estimates and explanations, show the results to the constituents, and then repeat the process until a consensus is reached.

Front 7

Describe the market study Market Tests

Back 7

Market Tests

Involves distributing sample product to a given market for a short-term trial to determine potential sales forecasts and record customer reactions and feedback for the product.

Front 8

Describe the market study Simple Trend Analysis

Back 8

Simple Trend Analysis

One of the most basic systems, this is the analysis of past sales data and previous customer feedback in a given market.

This market research can be useful for a release of a newer version of a product or of similar products to those produced by the company conducting the research.

Hint 8

Simple Trend Analysis is largely based on the belief that past variables (strength of economy, consumer trends) are consistent with present variables.

Front 9

Describe the market study Regressions Analysis

Back 9

Regressions Analysis

This is the statistical analysis for developing a mathematical formula that defines a relationship between changes in past sales (the dependent variable) and one or more independent variables (GNP, per capita income, or industry advertising expenditures). Simple regressions uses one independent variable, while multiple regression uses more than one independent variable.

Hint 9

Marketing and Distribution Channels for Products Marketing Distribution Primer Getting the word out about a product to the right people (target marketing) and getting the product to the right place (via distribution channels) are very important to reach sales goals. A few definitions to begin this section: Summary of Market Research Methods.

Front 10

The process of getting a product to the point of sale

Back 10

Distributing

Front 11

Name and describe four basic types of distribution?

Back 11

1. Dual Distribution

2. Intensive Distribution

3. Selective Distribution

4. Exclusive Distribution


1) Dual Distribution-this consists of selling the same product in two or more competing channels to reach the same target market. For example, TGI Friday’s Restaurant Chain has over 1,000 restaurants in the United States, and also has some of their menu items available grocery stores.

2) Intensive Distribution-producers of convenience items (chewing gum, soft drinks, newspapers) strive to have their product present in as many outlets as possible to attain maximum market exposure.

3. Selective Distribution-is comprised of the restriction of distribution to a certain geographic area or type of store, based on performance capability. Selective distribution outlets, being carefully chosen, are almost always compatible with the product’s image.

4. Exclusive Distribution-the use of only one outlet in a given geographic area.

Hint 11

1) Dual distribution is a way to producers to reduce the risk that one channel of distribution will be inadequate to reach target customers or that channel members will not do a good job of distribution.

2) Intensive Distribution The more places a product is available for the consumer, the more likely the product will sell well.

3) Selective Distribution- Shopping products, specialty products, and industrial products that require specialty selling effort from intermediaries often use this distribution strategy.

4) Targets a specific market.