Personal Selling Test 1

Front 1

1. Subsistance

Back 1

taking care of bare minimum-food and shelter

Front 2

the exchanges you need based on the number of people formula

Back 2

-need two people with excess to trade, and the exchnges you need is dependent on the number of people
#5= N(N-1)/2
#10= 10(10-1)/2=45

Front 3

to improve exchange process we created

Back 3

1. Central market place-could be permanent like a store or meeting on this stree ever Tuesday morning
2. Money-allowed you to sell your good Monday and then come back and buy other goods on Saturday
-helped us overcome indivisibility and time
3. Time-Monday and Saturday

Front 4

indivisibility

Back 4

want to give K my apples, but he has oranges and I need a plow, but P has a plow, but doesn't want apples

Front 5

2. Production

Back 5

-demand far exceeded supply
-people in manufacturing had control of the market, so maketing didn't exist

Front 6

3. Financial

Back 6

1830's-1840's ish
needed ways to be efficient
gained efficiency by buying big companies

Front 7

efficiency=
and the two ways to increase efficiency

Back 7

=output/input
Increase ouput and not use more material to increase efficiency
or
leave output the same and decrease input to increase efficiency

Front 8

4. Sales orientation

Back 8

-because of the war
-sale man tricking buyers
-unethical practices of sales men and is where marketing got it's black eye and is why marketing never got over this reputation
"Let the buyer beware"

Front 9

5. Marketing Era

Back 9

Late 1940-World War
American companies providing means to win the war-Ex: Detroit Ford company stopped making cars and made tanks
-"Let the seller beware"-if you don't produce what the buyer wants, they will go buy somewhere else

Front 10

Marketing concept

Back 10

great idea, but difficult to implement
-manage customer satisfaction-managing customer demand is impossible
-maximize customer orientation to increase profits
fetushionary responsibility to be profitable

Front 11

Fetushionary responsibility to be profitable for:

Back 11

1. stock holders
2. employees of company
3. customer-do this by marketing research which cost money

Front 12

Personal Selling

Back 12

one on one communication

Front 13

opposite of personal selling

Back 13

mass communication

Front 14

an industrial good is

Back 14

?facilitating?

Front 15

services are usually

Back 15

intangible and can't be stored and has a quality level component
Ex: airplane seats

Front 16

what determines if it is a consumer good or an industrial good

Back 16

how the good is acquired

Front 17

public relations

Back 17

company controlled it and they wanted people to hear about it
Ex: belk teen fashion show and girls do service project and its in the newspaper

Front 18

publicity

Back 18

NOT controlled by company
Ex: same girls get caught drinkin and it's in the newspaper

Front 19

Economy

Back 19

<---------means(take job or give company $)-----------
---------------------------------------G&S---------->
Production____________________________ Consumption
<-------$-------------------------------------------
----------------$ to pay rent or employees-------->

Front 20

to have a good economy, what has to happen

Back 20

1. production produces goods and services the consumer wants
2. consumer buys G&S

Front 21

utility

Back 21

?want satisfying power?

Front 22

4 types of utility

Back 22

1. Form (has some Mktg bc consumers choose what you produce)
2. Place (Marketing)
3. Time (Marketing)
4. Usage (or possession) (Marketing)

Front 23

The utilities are performed by 8 functions

Back 23

1. selling
2. buying
3. transporting
4. storing
5. standardizationg and grading
6. financing
7. risk taking
8. market info
-these 8 functions MUST be performed

Front 24

sellling and buying

Back 24

create the possession utility

Front 25

transporting

Back 25

creates place utility

Front 26

storing

Back 26

creates time utility (like people making Christmas stuff)

Front 27

Standardization and grading

Back 27

sizing in clothes is a form of standardization
they facilitate the selling and buying of the product

Front 28

risk-taking

Back 28

financing is a form of risk-taking, but there are other forms or risk-taking
Es: stores buying school supplies to sell and getting the number they think they will sell
the longer the channel, the bigger risk that is taken

Front 29

What they want:
Production

Back 29

1 or a few of one product
continuous basis
produce when demand is know
value it based on cost
-both productino and consumption are different, but 8 functions make it where it can happen

Front 30

What they want:
Consumption

Back 30

1 or few of many products
convient times
product before demand is known
value it based on usage

Front 31

buying behavior is rarely the

Back 31

result of one factor

Front 32

In order he finds them important from the consumers view

Back 32

1. Buyer - inner circle
2. Product
3. Situation
4. Sources - outer circle

Front 33

1. Buyer

Back 33

there are as many as 5 roles in this
#1 role: initiator (teacher takes sick child to office)
#2 role: influencer (principle says call her parents)
#3 role: decider (at doctor, they tell parents to get a certain drug)
#4 role: buyer (parents buy drug)
#5 user (the child uses drug)
-one person may perform all, just a few, or one of these roles

Front 34

2. Product

Back 34

how much knowledge and effort the buyer needs to spend to set the good
a. convience
b. shop
c. specialty
-effort varies between convience, shop, and specialty

Front 35

2. A. Convience

Back 35

office supplies if business is buying it
can buy these items from many places

Front 36

2. B. Shop

Back 36

-for a business would be raw materials or processed materials
1. homo shop good: good as percieved that all items are same
Ex: for him a fridge is a fridge, so he will make decision on non product factors like will they deliver
2. hetero shop good: each are different in some way
Ex: a suit-you wont just grab the first one you see, you look at all the differences in the suit
-can buy these items in a few places

Front 37

2. C. Specialty

Back 37

building a new assembly line if business buying
-can buy these items in one place

Front 38

is deciding not to buy anything a decision?

Back 38

YES!!

Front 39

3. situation

Back 39

depends on product and buyer
tonight go grab a quick dinner, but if parents come to town, may go get fresh food and cook them dinner

Front 40

4. Sources

Back 40

depends on situation, product, and buyer
said yes to daughter playing hap when talking to piano teacher, later thought about how much the harp would cost and decided he needed to look into all aspects of it first (teacher was source and changed his thought process)

Front 41

types of industrial markets

Back 41

1. Producer
2. OEM
3. MRO
4. Reseller

Front 42

1. producer

Back 42

produce materials-make thread or use thread to make clothe
could be raw materials or final products; most interested in price and quality

Front 43

2. OEM

Back 43

Original Equipment Manufacturers-make shirts out of clothe
people who first make product

Front 44

3. MRO

Back 44

Maintenance, repair, and overhaul
dealership who buys brake repair kits and also buys all the parts to overhaul on engine

Front 45

4. reseller

Back 45

are either wholesaler or retailer
don't change the physical product, they just buy product to then resell it, but may also but items to help facilitate reselling item, like racks to hold reselling item

Front 46

types of governmental markets

Back 46

1. Institutional or non-profit
2. Individuals buying from themselves

-the largest buying government is the U.S. federal Govt
?-use to do all bid-selling-usually bought low selling bid-price is not the only thing involved anymore though?

Front 47

1. institutional

Back 47

non-profit (Ex: Red Cross) wants to have "0" at the end, but institutional doesn't try to do that even though their suppose to, like Auburn University

Front 48

all markets have a similar way with conv, shop, and specialty

Back 48

?

Front 49

Straight rebuy

Back 49

automatically rebuy pencils to sell in store when the inventory gets down to 20 pencils

Front 50

Modified rebuy

Back 50

the manufacturer reconsiders who their buying from, the contract term, etc- it may go back to a straight rebuy, or may become a new buy

Front 51

new task buy

Back 51

something you have never bought before, or something you haven't bought in a very long time
-buying a new copies and you bought last copier 20 years ago, and copiers now are very different than 20 years ago

Front 52

gatekeeper

Back 52

keeps people out or let's them in
can stop or enhance the flow of info

Front 53

what ORGANIZATIONS want from suppliers

Back 53

economics - best price
quality
services

Front 54

what CONSUMERS want from suppliers

Back 54

sell new assembly line to 20 year old melanie instead of 64year old bud
economics - worried about their salary and benefits

Front 55

message

Back 55

this is the commonality that people have together
from the sender to the reciever
Ex: common language, common experiences (experiences may be same, but still different like both people ahving lost a loved one)

Front 56

Sender (ending)

Back 56

what they thing or wnat to say

Front 57

Receiver (decode)

Back 57

hears something, but it may be what they think they hear
could be visual or words they use, etc

Front 58

feedback

Back 58

from receiver to sender
hopefully improves communication

Front 59

noise

Back 59

anything that keeps you from receiving the message

Front 60

factors that affect communication

Back 60

1. verbal
2. non-verbal

Front 61

1. verbal

Back 61

-how simple are the words or sentences you use-the simpler, the better
-how you say things (ex: southern accent)
-the voice you use to say things
-the afflictions you use in your voice
(ex: monotoned)
-articulation
-how well we use analogy
-how you use stories
-how well do you listen-a good salesprson listens 80% and talks 20%-don't just listen, but help them
-when people don't understand-rephrase, re-present, clarify, use different words, so they will understand-then sum it up to make sure they understand
-be able to tolerate silence-don't talk too fast, wait for them to speak
-concentrate primarily on what your trying to say to them-don't get distracted or start talking about something irrelevant

Front 62

2. non-verbal

Back 62

-body language:
body angle-how your sitting
-our face-somebody who doesn't smile alot
-our arms and hands-want hands facing up bc it makes you seem open
-eyes-alert, or look them in the eye
-firm handshake
-posture
-role of space: (public, social, peronal, intimate)
-general appearance-what your wearing for different situations

Front 63

role of space from non-verbal

Back 63

public space: not close to anyone particular person-at church or football game
social space
personal space-some people don't like hugging
intimate space-space between me and parents or me and frank
-personal and intimate rarely happen in business

Front 64

statuatory law

Back 64

some GOVERNING body has enacted some law and is based on some specific action by the ?_____ ?body

Front 65

administered law

Back 65

generally written and then somebody (an AGENCY) is put in charge of them and they add to it

Front 66

common law

Back 66

result of actions by the COURTS; it is set by precadent and can be changed by another court

Front 67

common law example

Back 67

LL Bean was only store allowed to be opened in Maine on sundays and others wouldn't bc of the blue law-then they said you could be open on sunday if you only had 250 square ft and 4 retail sales people, so a grocery store was able to be inside these rules by putting up ropes in front and then had the 4 employees go retrieve the ppls grocery items and they were called warehouse workers
-bc of this they got rid of the limitation rules

Front 68

Universal Commercial Codes (UCC)

Back 68

hundreds of legislation on how people in sales and businesses should act
-agent
-broker

Front 69

agent

Back 69

acts in place of their company (only represent one side)

Front 70

broker

Back 70

represents BOTH sides and brings the buyer and seller together

Front 71

Sale

Back 71

occurs when there is an actual transfer of title for some consideration (not necessarily $, but in most cities it is)(the consideration doesn't have to occur immediately

Front 72

contract to sale

Back 72

when there is an agreement made but meither the consideration or transfer has occured

Front 73

initiative to negotiate

Back 73

invitation to meet to talk about buying

Front 74

oral agreement

Back 74

it is as ______ as a written agreement, but an oral agreement requires another person, so it isn't he said/she said

Front 75

companies do warranties or guarantees to

Back 75

limit their liability

Front 76

expressed warranty

Back 76

something in writing

Front 77

implied warranty

Back 77

doesn't have to be mentioned, but bc of normal business practices, you expect it

Front 78

false advertising

Back 78

also called misrepresentation
something you know is not true
"our product is good for 100 years!"

Front 79

misleading

Back 79

also called puffery
something not proveable
"our product is so good it seems to never ware out!"

Front 80

push money

Back 80

tell sales people to sell your product and you give them more money over their commission; if don't tell manager about it, it's illegal, if tell manager it's not illegal

Front 81

illegal practices

Back 81

ex: sherman anti trust act
business deformation

Front 82

business deformation

Back 82

equivalent to a ?lie?
about businesses-tell someone something that could hurt ?the buyer?-saying something that's not true about a business-it's deformation if you say it and can't prove it

Front 83

restiprocity

Back 83

if you buy my product, i'll buy your product-not illegal

Front 84

tying agreement

Back 84

say you can't buy something unless you buy something else with it
ex: you can't buy this copier unless you buy all the supplies from me as well
ex: Holiday Inn hotels and Holiday inn supplies
-most AREN'T legal anymore

Front 85

resale price maintenance

Back 85

dictating what price they sell them for
ex: chips at gas station with price already on bag of chips
-now it's illegal

Front 86

conspiracy vs. collusion

Back 86

collusion-basically two sellers getting together and limiting or raising price in someway to limit competition

Front 87

Robinson Pactman Act

Back 87

if I make an offer to one buyer, they must offer it to all like buyers

Front 88

social style metrics

Back 88

the key is the "training"

Front 89

in-house selling

Back 89

selling on phone

Front 90

types of presentation in selling

Back 90

1. standardized
2. outline
3. customized

Front 91

standardized presentation

Back 91

tells you what to say and not flexible
-it's the most rigid

Front 92

outline presentation

Back 92

not standardized, allows for greater flexibility
-not as rigid as standardized, but not as flexible as customized

Front 93

customized presentation

Back 93

can address each call in a different way depending on customer
-allows you to take in info about the buyer
-this is where you get info adaptive selling

Front 94

When selling to people
Step 1

Back 94

knowing the product itself that your selling is important
what is the products pros and cons-know your own product and know competitors product and service and price

Front 95

when selling to people
step 2

Back 95

know company policies and procedures

Front 96

when selling to people
step 3

Back 96

have selling skils-understand what your selling skills are
ex: he's not good at describing things, so work on that and focus on how you do sell well

Front 97

when selling to people
step 4

Back 97

know the customer
what it is that makes them importatn
ex: know customer before you make an embrassing remark "Hows your wife?" when he just got divorced
learn about your customer from others

Front 98

when selling to people
step 5

Back 98

learn to keep notes on customers
keep adding info you learn about people to their specific notes

Front 99

packaging

Back 99

tarp example: would open up sealed package to feel product, then would buy the unopened package resulting in a markdown, so they put sample of product on the outside

Front 100

prospecting

Back 100

has to have a need for something

between first four steps you are a lead???? exhibit 6,1 in book

Front 101

lead

Back 101

does the lead have the ability to buy-can they financial make the purchase
do they have the authority to buy-see this the most in large corporation
-is the lead approachable
-are they likely to buy from you-want your sample that's neutral-go to bama with college stuff, don't take auburn sutff

Front 102

exclusive territories

Back 102

based on political boundaries like state lines
can cause problems for sales reps bc market size and shape doesn't go by political boundaries

Front 103

house accounts

Back 103

particulary in cases that ar large or VP of MKTG started with them, then that account may want to only talk to home office
where people place their orders with purchasing department or upper management, instead of sales person

Front 104

exhibit 6.2

Back 104

list of definitions

Front 105

endlead chain

Back 105

common source of leads

Front 106

bird dogs

Back 106

another name for something????

Front 107

center of influence

Back 107

can be a different person for different situations

Front 108

ads, directmail, etc

Back 108

goo to use for leads
most common one to use is a coupon

Front 109

cold calling

Back 109

most discouraging way to get leades
say if you get 1 out of 20 then your lucky

Front 110

Standard Industrial Classification
(SIC)

Back 110

government does this about company size, etc.
-it's a way to group companies together and has a min of 4 numbers and each number gets more specific about company
it's hard to get to but about 99% of it is free