350: Ch. 2 Knowledge And Skill Requirements

Front 1

Canned Sales Pitches

Back 1

A company brings the most effective salespeople back into the company's office and wrote down their sales script. Then they implemented it to all salespeople, who were expected to follow the scripts every time.

Front 2

Manipulation

Back 2

eliminates or reduces the buyer's choice unfairly

Front 3

Persuasion

Back 3

one may influence the buyer's decision, but the decision remains the buyer's

Front 4

deception

Back 4

withholding information or telling lies is clearly manipulative and therefore unethical

Front 5

Bribes

Back 5

payments made to buyers to influence their purchase decisions

Front 6

Kickbacks

Back 6

payments made to buyers based on the amount of orders placed

Front 7

Backdoor Selling

Back 7

salespeople engage in this when they ignore the purchasing agent's policy, go around his/her back, and contact other people directly involved in the purchasing decisions

Front 8

Trade Secrets

Back 8

information owned by the company by which the company gains a competitive advantage. They are protected by law, so if u take customer records with you, you could face a civil lawsuit.

Front 9

sexual harassment

Back 9

includes unwelcome sexual advances; requests for sexual favors, jokes or graffiti; posting sexual material in bulletin boards or cubicle walls; and physical conduct

Front 10

statutory law

Back 10

is based on legislation passed either by state legislators or by Congress. The main laws governing salespeople are the Uniform Commercial Code and Antitrust laws.

Front 11

Administrative Laws

Back 11

are established by local, state, or federal regulatory agencies. The (FTC) Federal Trade Commission is the most active agency in developing these laws.

Front 12

Common law

Back 12

grows out of court decisions. Precedents set by these decisions fill in the gaps where no laws exist.

Front 13

Uniform Commercial Code (UCC)

Back 13

Is the legal guide to commercial practice in the United States.

Front 14

Agent

Back 14

A person who acts in place of his/her company

Front 15

Sale

Back 15

the transfer of title to goods by the seller to the buyer for a consideration known as price.

Front 16

Contract to sell

Back 16

anytime a salesperson makes an offer and receives an unqualified acceptance, and contract exists. A sale is made when the contact is completed and title passes from the seller to the buyer.

Front 17

Invitation to negotiate

Back 17

A sales presentation

Front 18

Offer

Back 18

takes place when the salesperson quotes specific terms. It specifically states what the seller promises to deliver and what it expects from the buyer.

Front 19

orders

Back 19

written offers, become contracts when they are signed by an authorized representative in the salesperson's company.

Front 20

Free on Board (FOB) destination

Back 20

the title to the goods usually passes from the seller to the buyer at the destination. This means that goods in transit should be reported as inventory by the seller, since technically the sale does not occur until the goods reach the destination.

Front 21

FOB Factory

Back 21

when titles transfer for goods shipped cash on delivery (COD) and for goods sold on consignment, Understanding the terms of the sale and who has title can be useful in resolving complaints about damaged merchandise.

Front 22

Warranty

Back 22

is an assurance by the seller that the products will perform as represented ... a guarantee.

Front 23

Expressed Warranty

Back 23

is an oral or a written statement by the seller

Front 24

Implied Warranty

Back 24

is not actually stated but is still an obligation defined by law. Under a sales contract, there is a guarantee that the item sold is merchantable and fit for the purpose intended.

Front 25

Sales puffery

Back 25

Glowing descriptions for a product or service.

Ex: "Our service can't be beat"

"This is a top-notch product"

"This product will last a lifetime"

Front 26

False Claims Act

Back 26

Or Lincoln Law, was passed in 1863 during the civil war to encourage citizens to press claims against vendors that fraudulently sold to the U.S. government

Front 27

Credulous Person Standard

Back 27

Means the company and the salesperson have to pay damages if a reasonable person could misunderstand a statement in Canada.

Front 28

Business Defamation

Back 28

occurs when a salesperson makes unfair or untrue statements to customers about a competitor, its products, or its salespeople.

Front 29

Reciprocity

Back 29

a special relationship in which 2 companies agree to buy products from each other.

EX: A manufacturer agrees to buy microprocessors from a manufacturer if the manufacturer agrees to buy its computers

Front 30

Tying Agreement

Back 30

a buyer is required to purchase one product in order to get another product.

EX: a customer wants to buy a copier machine, and has to buy copy paper from the same company

Front 31

Collusion

Back 31

refers to competitors working together while the customer is making a purchasing decision.

EX: The League/ everyone is pricing the same product the same price

Front 32

Resale Price Maintenance

Back 32

is the practice whereby a manufacturer and its distributors agree that the distributors will sell the manufacturer's product at certain prices, at or above a price floor or at or below a priceceiling.

Front 33

Spiffs (Push Money)

Back 33

"Special Promotion Incentive Fund". Are only legal if the reseller knows and approves of the incentive and it is offered to all reseller's salespeople. Even if they are legal, not everyone agrees that they are ethical.

Front 34

Price Discrimination

Back 34

as a seller giving unjustified special prices, discounts, or services to some customers and not to others.

Front 35

Privacy Laws

Back 35

limit the amount of information that a firm can obtain about a consumer and specify how that information can be used or shared.

Front 36

Lubrication

Back 36

involves small sums of money or gifts, typically made to low ranking managers or government officials, in countries where these payments are not illegal.

Front 37

Subordination

Back 37

involves paying larger sums of money to higher-ranking officials to get them to do something illegal or to ignore an illegal act.

Front 38

Cultural Relativism

Back 38

is the view that no culture's ethics are superior

Front 39

Ethical Imperialism

Back 39

is the view that ethical standards in one's home country should be applied to one's behavior across the world

Front 40

(FCPA) Foreign Corrupt Practices Act

Back 40

makes it illegal for US companies to pay bribes to foreign officials

Front 41

conspiracy

Back 41

an agreement between competitors before customers are contacted

Front 42

ethics

Back 42

are principles governing the behavior of an individual or a group.

Front 43

poaching

Back 43

EX: it is unethical to steal poential customers from other salespeople