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BUS 466 - Ch. 2
Ch. 2
36
Marketing
Undergraduate 4
12/06/2012

Additional Marketing Flashcards

 


 

Cards

Term
ETHICS
Definition

The principles governing behavior of an individual or a group, establishing what is appropriate and indicating what is right and wrong.

  • Can vary from country to country and industry to industry
Term
EVOLUTION OF PERSONAL SELLING
Definition

pre 1930 -> 1930-1960 -> 1960-1990 -> Post 1990

 

Objective: Making sales -> satisfying customer needs -> building partnerships

 

Orientation: short-term seller needs -> short term customer needs -> long term customer and seller needs

 

Role of salesperson: provider -> persuador -> problem-solver -> value creator 

 

Activities: taking orders and delivering -> aggressively convincing -> matching offerings to needs -> creating new alternatives, matching buyer needs with seller capabilities

Term
Basic principle of ethical selling
Definition
customer remains free to make a choice
Term
Manipulation
Definition
Eliminates or reduces the buyer's choice unfairly
Term
Persuasion
Definition
Trying to influence the buyer's decision without forcing it
Term
Factors that affect ethical behavior of salespeople
Definition
  • Ethical behavior:
    • Personal goals, customer goals, company goals, company policies, laws, social norms, values of significant others
    • Personal code of ethics
Term
3 Main conflicting objectives
Definition
Company objectives - Salesperson objectives - Customer objectives
Term
Examples of rationalizations of a salesperson's personal code of ethics
Definition
  • 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
Term
Deception
Definition
Telling half-truths;withholding important information
Term
Bribes, gifts, and entertainment ethics
Definition
  • Check your motives for gift giving
  • Make sure the customer understands no strings attached
  • make sure the gift does not violate either companies' policies
  • Safest gifts are inexpensive business items imprinted with the salesperson's company logo
Term
Bribes vs Kickbacks
Definition

Bribes are payments made to buyers to influence their purchase decisions

 

Kickbacks are payments made to buyers based on the amount of orders placed

 

Personal benefit to purchasing agent, but negative to the firm because product's performance is not considered in decision

Term
Backdoor selling
Definition

Ignoring the purchasing agent's policy, go around his or her back, and contact other people direclty involved in the purchasing decision.

 

Risky and unethical

Term
How to ethically use expense accounts
Definition
Act as if you are spending you rown money and use only for legitimate expenses, not luxuries
Term
Switching jobs ethically
Definition
  • Give ample notice
  • Offer assistance during the transition phase
  • Don't burn your bridges
  • Don't take anything with you that belongs to the company
Term
Ethical relationships with competitors
Definition
Don't criticize; don't make false claims
Term
Uniform Commercial Code
Definition
  • the legal guide to commercial practice in the United States. Defines the following terms:
    • agency
    • Sale
    • Title and risk of loss
    • oral vs written agreements
    • obligations and performance
Term
Agent
Definition
Person who acts on behalf of his or her company
Term
Sale 
Definition
transfer of title to goods by the seller to the buyer for a consideration known as price. 
Term
Title and Risk of loss
Definition

FOB (free on board) destination - seller has title until goods are received at the destination

 

FOB factory - buyer assumes responsibility and risk of any loss or damage incurred during transportation

Term
Warranty
Definition
  • Assurance by the seller that the products will perform as represented. Sometimes called a guarantee.
    • expressed
    • implied
Term
Expressed Warranty
Definition
Oral or written statement by the seller
Term
Implied Warranty
Definition
Not actually stated but is still an obligation defined by law.
Term
Sales Puffery
Definition

Glowing descriptions considered to be opinions that customers cannot reasonably rely on.

 

"this is a top notch product"

 

"this product will last a lifetime" 

Term
Misrepresentations
Definition
Can be treated as statements of fact and warranties - "feel free to prescribe this drug to your patients, doctor. It's nonaddicting.
Term
Sherman Antitrust Act, Clayton Act, Federal Trade Commission Act, Robinson-Patman Act
Definition
Prohibit unfair business practices that may reduce competition - business defamation, reciprocity, tying agreements, interference with competitors, restrictions on resellers, price discrimination, privacy laws, do not call law
Term
Business Defamation 
Definition

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

 

Statements are illegal when they damage the competitor's reputation or the reputation of its salespeople

Term
Reciprocity
Definition

A special relationship in which two companies agree to buy products from each other.

 

Illegal when one company forces the other into the agreement. Only legal when mutually agreed to.

Term
Tying Agreements
Definition
Buyer is required to purchase one product in order to get another product.
Term
Conspiracy
Definition
Agreement between competitors before customers are contacted - ie dividing up territories. 
Term
Collusion
Definition
Competitors working together while the customer is making the purchasing agreement. ie. agreeing to charge the same price.
Term
Spiff
Definition
incentives to get reseller's salespeople to push certain products. Legal only if the reseller knows and approves of the incentive and it is offered to all the reseller's salespeople. Not always seen as ethical, despite being legal.
Term
Price Discrimination
Definition

Unjustified special prices, discounts, or services given to some customers and not others.


Justified if results from differences in the cost of manufacture, sale, or delivery

 

or differences in the quality

 

or if it is an attempt to meet prices offered by competitors.

Term
Lubrication
Definition

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

 

Permitted under the Foreign Corrupt Practices Act amendment, when customary in the culture

 

Look at policies of the home country and othe company. Mostly considered unethical

Term
Subordination
Definition

Paying larger sums of money to higher ranking officials to get them to do something that is illegal or to ignore an illegal act.

 

Illegal under foreign corrupt practices act

Term
U.S. Salespeople are subject to.....laws
Definition
U.S. laws and should use corporate support and guidance in dealing with cultural differences.
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