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47 Cards in this Set

  • Front
  • Back
The costs that a customer would incur by switching from its current product or service provider to another.
Switching costs
A warranty with certain conditions and limitations on the parts covered, type of damage covered, or time period for which the agreement is valid.
Limited Warranty
The factor that is most important to customers when choosing one product or service over another
A sales method that is focused more on the personal characteristics of the salesperson than on the needs or wants of the customer.
Personal Selling
An advantage that a firm is able to develop, protect, and defend from rivals and that distinguishes it in the marketplace.

The primary objective of a venture's marketing efforts from the perspective of revenue strategy is to develop ____
Sustainable Competitive Advantage (SCA)
To develop a business within a company to a point at which that business can grow and thrive better as a new and separate company
The system that a company uses to collect from customers who do not pay on time.
Collection Policy
A customer service strategy that may include placing calls to prospective customers who may have questions about pricing, product or service features and benefits, and after-sale support.
Pre-Sale Customer Service
Payments made to salespeople based on the number of units they are responsible for selling.
A company whose stock is registered with the SEC and is traded on a national stock
Public company
The general understanding of how each component of the business contributes to revenue.
Revenue Strategy
Sales that are made through gatherings of friends and neighbors. Tupperware and Mary Kay cosmetics are examples of this sales approach
Party Plan Sales
The cash that comes into the venture as a result of sales.
Revenue Stream
A distinctive feature of a company and its offerings that makes it different from competitors
Payments due from customers
Accounts Receivable
Expenses that are associated with supporting customers after the sale has already been made.
After Sale Expense
Organizational system in large companies in which the various business activities such as marketing, accounting, sales, and many others are delegated to discrete business units or departments.
Division of Labor
Salespeople who are employed by the venture.
Inside Sales
Contract salespeople who are not employees of the company they represent.
Outside Sales
A sales technique that provides some flexibility for the salesperson to alter the marketing message within reasonable boundaries based on the needs of a particular customer.
Adaptive Selling
Independent contractors who represent and sell products for one or more clients.
Direct Salespeople
Websites that enable customers to learn about the company's products or services and purchase them online
A direct-selling process that is duplicated by salespeople who sponsor and train others; also called network marketing. An ever-increasing income stream can be generated through bonuses on sales made by several levels of downline distributors.
Multilevel Marketing
Software that focuses on organizing and managing information about customers
Customer Relationship Management
The average number of days that a receivable is in the collection cycle.
Days Receivable
A notification to debtors that their payment is past due and will soon be referred to a collection agency.
Pre-Collect Notice
A federal law governing the methods that firms can use to expedite debt collection.
Fair Debt collections Practices Act
The time, resources, and marketing collateral that are required to add a single customer to the firm's customer list.
Customer Acquisions Costs
The practice of selling additional products and services to existing customers.
Muliple Revenue Streams
The structure of entrepreneurial ventures is significantly different from the structure of large organizations. (T or F)
The general understanding of how each component of the business contributes to revenue is called revenue generation.(T or F)
In most businesses, the CEO coordinates the interaction among marketing, sales, and customer service functions.
(T or F)
The entrepreneur CEO must never play the role of vice president of revenue.
(T or F)
Marketing varies widely from company to company, from product to product, and from service to service.(T or F)
One way that marketing contributes to revenue strategy is through analysis of consumer behavior and projections about future tastes and buying habits.
(T or F)
Customers tend to shape a marketing message, but the message does not shape customers. (T or F)
Selling is the business activity that is the most directly related to a company's revenue. (T or F)
Workers' compensation is the pay opportunity available to employees who are responsible for persuading the customer to act. (T or F)
Indirect salespeople typically are independent contractors who represent and sell products for one or more clients. (T or F)
Which of the following sales methods focuses more on the personal characteristics of the salesperson than on the needs or wants of the customer?
Personal Selling
Which of the following marketing strategies has generated less interest now because of the Do Not Call Registry?
Which of the following compensations are included in a salesperson's total compensation?
a) salary
b) expenses
c) contests
d) all of the above
In many businesses, customer service can also produce revenue through the sale of
The entrepreneur has three rules for success...
1)Focus on the customer.
2)Keep turnaround times short.
3)Always give the customer value (the combination of price and quality).
The five components of revenue strategy are...
1) Marketing
2) Sales
3) Customer Service
4) Credit and Collections
5) Multiple Revenue
A venture's revenue strategy concerns understanding and serving customer needs and wants. The (3) rules for success:
1) Focus on the customer
2) Keep turnaround times short
3) Always give the customer value
The four most common alternatives to inside sales are...
1) Direct Selling
2) E-Commerce
3) Party Plans
4) Multi-level marketing