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122 Cards in this Set
- Front
- Back
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a person-to-person business activity in which a salesperson uncovers and satisfies the needs of a buyer to the mutual, long-term benefit of both parties
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personal selling
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the various options that firms have to sell their products
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go-to-market strategies
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the sum of the customer's purchases over its entire life
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lifetime customer value
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the process of a firm using various go-to-market strategies at the same time
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multichannel strategy
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firms whose go-to-market strategy relies heavily on salespeople
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sales-force intensive organizations
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Coordinated communications programs that exploit the strengths of various communication vehicles to maximize the total impact on customers
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integrated marketing communications
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Firms have more control when using paid or unpaid methods?
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paid methods
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Which communications methods are perceived as more credible?
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publicity and word of mouth
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Communication methods that give companies control over content and timing?
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Advertising, Internet sites, and sales promotions
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Communication method that allows more flexibility?
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personal selling
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Is the most costly method of communication?
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personal selling
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Salespeople spend less than __ percent of their time on-site in a face-to-face meeting with customers and prospects
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35
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10 Characteristics of Successful Salespeople:
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1. Self-motivated
2. Dependability and trustworthiness 3. Ethical sales behavior 4. Customer and product knowledge 5. Ability to use information technology 6. Communication skills 7. Flexibility and agility 8. Creativity 9. Confidence and optimism 10. Emotional intelligence |
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The skills required to be a successful salesperson can be _______.
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learned
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Innate characteristics such as personality traits, gender, and height are largely ________ to sales performance.
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unrelated
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Companies spend billions of dollars each year on ________.
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training
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3 Types of Rewards in Selling?
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1. Independence and responsibility
2. Financial rewards 3. Management opportunities |
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marketing that seeks to win customers by building the right type of relationship desired by those customers
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relationship marketing
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refers to the purchase of the same product from the same vendor over time
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behavioral loyalty
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is an emotional attachment to a brand, company, or salesperson
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attitudinal loyalty
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No future business
Both parties pursue their own self interest |
solo exchanges
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Long-term market exchanges
Behavior loyalty Previous purchase influences next purchase |
functional relationship
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Buyer and seller have a close personal relationship
Buyer and seller work together to solve problems Trust |
relational partnerships
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Long-term relationships
Partner organizations make significant investments to improve the profitability of both parties Uncover and exploit joint opportunities |
strategic partnerships
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5 Foundations of Successful Relationships:
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1. Mutual Trust
2. Open Communication 3. Common Goals 4. Commitment to mutual gain 5. Organizational support |
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is a belief by one party that the other party will fulfill its obligations in a relationship
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trust
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Living up to promises made
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dependability
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Demonstrated knowledge of the customer, the product, the industry and the competition
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competence
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Put customer needs first
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customer orientation
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Truthfulness, sincerity, being candid
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honesty
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Least important component of trust
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likeability
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Key building block for building successful relationships
Listen, listen, listen Very important when there is conflict Type of partnerships determines openness of communication Be aware of cultural differences |
Open Communication
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Key to a successful relationship
Helps partners focus on opportunities Helps sustain the partnership |
Common Goals
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__________ goals are critical
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measurable
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Mutual investment
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commitment to mutual gain
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Structure and culture
Training Rewards |
organizational support
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Salespeople locate and qualify prospects; buyers identify sources of supply
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awareness
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Both parties may explore the potential benefits and costs of a partnership
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exploration
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the use of technology and statistics to identify important suppliers and opportunities for cost reduction, greater efficiency, and other benefits.
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supplier relationship management
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Both parties investigate the benefits of a long-term relationship
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expansion
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The customer and seller pledge to continue the relationship for a period of time
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commitment
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Process of terminating the relationship
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dissolution
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5 Phases of Relationship Development:
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1. Awareness
2. Exploration 3. Expansion 4. Commitment 5. Dissolution |
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principles governing behavior of an individual or a group
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ethics
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What is ethical can vary by ______ or _______
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country or industry
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cannot develop between buyers and sellers when salespeople behave unethically or illegally
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partnerships
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deteriorates if integrity becomes questionable
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trust
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guide market exchange relationships
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legal principles
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become increasingly important as firms move to partnerships, particularly strategic partnerships
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ethical principles
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Customer remains free to make a choice
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basic principle
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eliminates or reduces the buyer’s choice unfairly
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manipulation
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trying to influence the buyer’s decision, not force it
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persuasion
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Codes of ethics
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company policies
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Relatives and friends
Other salespeople Sales managers |
values of significant others
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All salespeople behave “this way”
No one will be hurt by this behavior This behavior is the lesser of two evils This conduct is the price one has to pay for being in business |
rationalizations
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Telling half-truths
Withholding important information |
deception
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actions by one salesperson that go behind the back of a purchaser to directly contact other members of the buying center
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backdoor selling
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Act as though you are spending your own money
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expense accounts
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Give ample notice
Offer assistance during the transition Don’t burn your bridges Don’t take anything with you that belongs to the company |
switching jobs
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is based on legislation passed by either state legislatures or Congress
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statutory laws
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are established by local, state, or federal regulatory agencies
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administrative laws
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grows out of court decisions
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common law
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Agency
Sale Title and risk of loss Oral versus written agreements Obligations and performance |
uniform commercial code
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an assurance by the seller that the products will perform as represented
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warranty
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an oral or written statement by the seller
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expressed warranty
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not actually stated but is still an obligation defined by law
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implied warranty
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“This is a top-notch product.”
“This product will last a lifetime.” |
sales puffery
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“Mechanically, this oil rig is a 9 on a scale of 10.”
“Feel free to prescribe this drug to your patients, doctor. It’s nonaddicting.” |
misrepresentation
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special relationship in which two companies agree to buy products from each other
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reciprocity
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agreement between a buyer and seller in which the buyer is required to purchase one product to get another
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tying agreement
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agreement among competitors, made prior to contacting customers, concerning their relationships with customers
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conspiracy
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agreement among competitors, made after contacting customers, concerning their relationships with customers
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collusion
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situation in which a seller gives unjustified special prices, discounts, or special services to some customers and not to others
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price discrimination
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laws that limit the amount of information that a firm can obtain about a consumer and specify how that information can be used or shared
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privacy laws
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Products included in manufacturing
Services to support the manufacturing operation |
producers
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Goods to use in making their products
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OEM producers
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Goods and services to support their own production and operations
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end users
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items are major purchases such as mainframe computers and machine tools
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capital equipment
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include paper towels and replacement parts for machinery
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maintenance, repair, and operating supplies
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Finished products or services with the intention to resell them
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resellers
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how much a reseller makes on each sale
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profit margin
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how quickly an item sells, and how much effort it takes to sell
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turnover
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Goods and services valued at more than $1 trillion annually
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government agencies
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Different needs and buying processes
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institutions
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Products and services for use by themselves or by their families
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consumers
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situation in which the demand for a producer's goods is based on what its customers sell
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derived demand
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8 Steps of Buying Process:
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1. Recognition of a need
2. Definition of the product type needed 3. Development of detailed specifications 4. Search for qualified suppliers 5. Acquisition and analysis of proposals 6. Evaluation of proposals and selection of a supplier 7. Placing and receiving the order 8. Evaluation of product performance |
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Narrowing range of alternatives
Critical that salespeople be involved in the initial steps |
creeping commitment
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A customer purchases a product or service for the first time
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new tasks
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A customer buys the same product from the original source
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straight rebuys
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The customer has purchased the product in the past but is looking for new information
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modified rebuys
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Who makes the buying decisions?
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1. Users
2. Initiators 3. Influencers 4. Gatekeepers 5. Deciders |
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3 Organizational Factors Influencing Organizational Buying Decisions:
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1. Economic criteria
2. Quality criteria 3. Service criteria |
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3 Individual Factors Influencing Organizational Buying Decisions:
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1. Need for buying center members
2. Personal risks 3. Personal needs |
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Encoding and decoding problems
The environment in which the communications occur |
communication breakdowns
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interpersonal communication in which both parties act as senders and receivers. Salespeople send messages to customers and receive feedback from them; customers send messages to salespeople and receive responses
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two-way communication
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Rate of speech
Loudness Inflection Articulation |
voice characteristics
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Include conflicts, trials, and crises
Paint a word picture |
stories
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Salespeople should listen 80 percent of the time and talk no more than 20 percent of the time
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80-20 listening rule
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People can speak at a rate of only 120-160 words per minute, but they can listen to more than 800 words per minute
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speaking-listening differential
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Facial muscles
Eye contact Hand movement and hand shaking Posture and body movements |
body language
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0-2 feet
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intimate zone
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4-12 feet
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social zone
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2-4 feet
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personal zone
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beyond 12 feet
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public zone
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The temperature
The local cultural norms |
geography
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Their appearance
Their expectations of your appearance |
customers
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Norms for your industry
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corporate culture
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Top levels of your organization
Dress above your position |
aspirations
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Immediacy does not equal intimacy
Use meaningful subject lines Put important information in the first few lines |
e-mail communication
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Best time to send an e-mail and get it read
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Wednesday around 11:00 AM
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encodes information and transmits messages
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sender
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who decodes the messages
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receiver
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About __ percent of communication is nonverbal
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50%
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Also called a canned presentation
Completely memorized sales talk Ensures salespeople will provide complete and accurate information Limited effectiveness Can be delivered at low cost by unskilled salespeople |
standard memorized presentation
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Prearranged presentation that usually includes:
-Standard introduction -Standard Q&A -Standard method for getting the customer to place an order Effective because it is well organized |
outlined presentation
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Written and/or oral presentation based on a detailed analysis of the customer’s needs
Allows the salesperson to demonstrate empathy Provides greatest opportunity to adapt to customer needs Can be very costly, requiring highly skilled people to analyze the customer’s needs |
customized presentation
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forces the salesperson to practice the marketing concept
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adaptive selling
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The ___________ presentation illustrates adaptive selling
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customized
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gives salespeople the opportunity to use the most effective sales presentation for each customer
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adaptive selling
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Computer program that mimics a human expert
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expert system
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is one example of a categorical scheme salespeople can use to improve their knowledge and adaptability
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social style matrix
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