Term
|
Definition
1. Map the territory
2. Locate customer/prospects; Identify by sales potential
3. Consider breaking up large territories into smaller zones
4. Develop routing plan
5. Develop a schedule; Consider needs & preferences
6. Plan additional tentative calls
7. Decide call frequency based on sales potential |
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Term
| Common Record Keeping Requirements |
|
Definition
- Customer & Prospect Files
- Call/Activity Reports
- Expense Reports
- Sales Reports |
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Term
| Customer & Prospect Files |
|
Definition
- Name, address, phone, email
- Personal characteristics
- Names of people who influence purchase
- Appropriate times to make call |
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Term
|
Definition
- Personal information on the customer
- Discussion of short- and long-rage buying plans
- People you've called on and what took place
- Any further action necessary |
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Term
|
Definition
- Meals
- Lodging
- Travel
- Entertainment
- Software packages to track |
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Term
|
Definition
- Items
- Quantities
- Pricing
- Allows tracking of sales performance |
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Term
|
Definition
| Possible sales of an entire industry in a time period |
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Term
|
Definition
| Portion of a market that a particular firm can reasonably expect to achieve |
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Term
|
Definition
| Dollar or unit sales for a specified future period; specified item or product line |
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Term
|
Definition
| Sales goals assigned to an individual sales person, territory, office, etc. |
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|
Term
| Subjective Forecasting Methods |
|
Definition
- User Expectations Method
- Sales Force Composite
- Jury of Executive Opinion
- Delphi Technique |
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Term
|
Definition
~ Relies on answer from customers regarding their expected consumption of a product
~ User have difficulty reliably predicting their needs |
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Term
|
Definition
~ Each sales person provides an estimate of what they can do in the next period
~ Combined and adjusted using historical prediction accuracy |
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|
Term
| Jury of Executive Opinion |
|
Definition
~ Internal poll of key executives
~ Combines through average of opinions of discussion |
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Term
|
Definition
~ Anonymous expect opinion
~ Iteratively adjusted |
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|
Term
| Objective Forecasting Methods |
|
Definition
- Test Marketing
- Time Series Analysis |
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Term
|
Definition
- Moving Average
- Exponential Smoothing
- Decomposition Method
- Statistical Demand Analysis |
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Term
|
Definition
| Future sales are the average of n past years sales |
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Term
|
Definition
| Moving average, but recent years are weighted higher than earlier years |
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Term
|
Definition
| Tries to assess overall trend, business cycle, and seasonality |
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|
Term
| Statistical Demand Analysis |
|
Definition
| Uses regression to predict sales using appropriate varliables |
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Term
|
Definition
| Represent the expectation of performance for a given territory/sales person in a given time; dollar or unit sales or points |
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|
Term
|
Definition
Providing incentives for sales people
- compensation plans include commission and bonuses; sales contest based on providing incentive for more productivity |
|
|
Term
| Characteristics of a Good Quota |
|
Definition
- Attainable
- Easy to understand
- Complete |
|
|
Term
|
Definition
| A group of customers or a geographic area assigned to a sales person |
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|
Term
|
Definition
1. Thorough coverage of the market
2. To establish responsibilities
3. To evaluate performance
4. To improve customer relations
5. To reduce sales expense
6. To allow better matching of sales person to customer's needs
7. To benefit sales people and the company |
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|
Term
| 7 Steps of Time & Territory Management |
|
Definition
1. Start with sales quota
2. Account analysis & prioritization
3. Develop account & product objectives (increasing # of daily calls or new accounts obtained)
4. Territory time allocation
5. Develop a sales call objective
6. Scheduling & routing
7. Territory & customer evaluation |
|
|
Term
| Account Analysis Approaches |
|
Definition
- Undifferentiated Selling Approach
- Account Segmentation Approach |
|
|
Term
| Undifferentiated Selling Approach |
|
Definition
~ Products and customers are similar
~ Same selling strategy can be used with all customers |
|
|
Term
| Account Segmentation Approach |
|
Definition
~ Customers have heterogeneous needs and differing characteristics
~ Customers require different selling strategies
- Key accounts
- Regular accounts
- Unprofitable accounts |
|
|
Term
|
Definition
- ABC Analysis
- Grid Allocation |
|
|
Term
|
Definition
A - high potential
B - medium potential
C - low potential |
|
|
Term
|
Definition
- Account opportunity
- Strength of position |
|
|
Term
|
Definition
- Performance Goals
- Activity Goals
- Conversion Goals |
|
|
Term
|
Definition
| Revenues or sales goals, or personal development goals |
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|
Term
|
Definition
| Behavioral objectives such as calls per month |
|
|
Term
|
Definition
| Measures of the sales person's efficiency |
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|
Term
|
Definition
| Comparing your goals with standard rates or top performers to assess performance |
|
|
Term
| Territory Time Allocation |
|
Definition
- # of accounts in territory
- # of sales calls made on customers
- Time requires for each sales call
- Frequency of customer sales calls
- Travel time around the territory
- Non-selling time
- Return on time invested |
|
|
Term
| Customer Relationship Management |
|
Definition
| Any application or initiative designed to help your company optimize interactions with customers, suppliers, or prospects using "touch points" |
|
|
Term
|
Definition
- Call centers
- Sales persons
- Distributors
- Stores
- Brand offices
- Website
- E-mail |
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|
Term
|
Definition
- Customer retention
- Customer acquisition
- Customer profitability |
|
|
Term
|
Definition
- Centralizes needed information about accounts
- Links with calendar, email, social media, etc. to provide scheduling assistance
- Meeting notes and follow-ups |
|
|
Term
|
Definition
| Making all of the business activities customer-centered; Makes it easier for customers to do business with a company |
|
|
Term
|
Definition
| Data management to give sales people the information they need to accomplish relationship management |
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|
Term
| 3 Reasons to Have Selling Knowledge |
|
Definition
1. Gives the sales person confidence
2. Builds the buyer's confidence in the sales person
3. Build relationships based on caring about the needs of others
- Selling to highly educated people may put sales people at a knowledge disadvantage |
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|
Term
| What You Should Know About Your Final Customer |
|
Definition
- What needs are met by the product
- What segments exist
- How does your product match their needs (FAB)
- Purchase trends |
|
|
Term
| Sources of Information on Your Final Customer |
|
Definition
- Internal records
- Customer histories
- Territory records
- Previous marketing research
- Channel members
- New marketing research; immersion |
|
|
Term
|
Definition
~ Consumer goods sales people require less information
~ Selling high technology products to knowledgeable industrial buyers requires extensive product knowledge |
|
|
Term
|
Definition
- Background and company growth
- Information on policies, procedures
- Product and service favilities |
|
|
Term
|
Definition
- Performance data
- Physical size and characteristics
- How the product operates
- Specific FAB
- How well the product is selling |
|
|
Term
|
Definition
| Reaches all users of a product |
|
|
Term
|
Definition
| Used by a retailer to reach consumers in the local geographic area |
|
|
Term
| Cooperative (Co-op) Advertising |
|
Definition
| Costs shared between the manufacturer and the retailer |
|
|
Term
|
Definition
| Undertaken by the manufacturer and directed toward wholesales and retailers |
|
|
Term
|
Definition
| Directed toward industrial purchasers |
|
|
Term
|
Definition
| Mailed directly to the consumer or industrial user |
|
|
Term
| Companies May Use Advertising To |
|
Definition
- additional selling information for sales presentations
- develop leads
- increase cooperation from channel members
- educate the customer
- inform prospects that a product is on the market and where to buy it
- reduce cognitive dissonance over the purchase
- create sales or pre-sale customers |
|
|
Term
|
Definition
| An article of merchandise offered to the user to take some action |
|
|
Term
|
Definition
- product lines and assortments carried
- distribution, promotion, pricing policies
- quantity of which product purchased in the past
- when each member sees sales people
- likes and dislikes |
|
|
Term
| Know Your Competition Industry and Economy |
|
Definition
- compare products, policies, price to your own
- customer will often ask for comparisons
- Sources of information
a. their advertising
b. your company records
c. media
d. trade publications |
|
|
Term
|
Definition
| Dollar amount added to product cost to determine its selling price; usually based on selling price |
|
|
Term
|
Definition
- non-cumulative; single purchase
- cumulative; purchases over time |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Discount for performing some services |
|
|
Term
|
Definition
|
|
Term
|
Definition
- Product cost v. true value
- Unit cost comparisons
- ROI |
|
|
Term
|
Definition
7% verbal
38% tone of voice
55% non-verbal |
|
|
Term
|
Definition
- Source; Sales person
- Noise
- Encoding; Develop sales presentation
- Message& Medium; Actual presentation
- Decoding; Interprets sales presentation
- Noise
- Receiver; Buyer
- Noise
- Feedback
- Noise
- Source; Sales person |
|
|
Term
| 6 Message Included in the Communications Model |
|
Definition
1. What you mean to say
2. What you really say
3. What the other person hears
4. What the other person thinks is heard
5. What the other person says about what you said
6. What you think the other person said about what you said |
|
|
Term
|
Definition
10% of what they read
20% of what they see
30% of what they hear
50% of what they hear and see |
|
|
Term
|
Definition
Body angle - leaning forward; upright at attention
Face - smiling; relaxed; eye contact
Hands- relaxed; open
Arms - relaxed; open
Legs - crossed toward you; uncrossed |
|
|
Term
|
Definition
Body angle - learning away from you
Face - puzzled; little expression; averted eyes
Hands - moving; clasped
Arms - crossed; tense
Legs - moving; crossed away from you |
|
|
Term
| What to do if you see disagreements singles |
|
Definition
- stop the presentation
- temporarily reduce pressure to buy or participate in the conversation
- let the person know you are aware
- use direct questioning |
|
|
Term
|
Definition
Body angle - retracted shoulders; leaning away
Face - tense; showing anger; wrinkled; little eye contact
Hands - motions of rejection or disapproval; tense; clenched
Arms - tense; crossed over chest
Legs - crossed away from you |
|
|
Term
| Barriers to Communications |
|
Definition
- Differences in perception; lack of common understanding
- No need recognition
- Selling pressure
- Information overload
- Disorganized presentation
- Distractions
- Poor listening
- Not adapting to buyer's style |
|
|
Term
|
Definition
| Difficulty dealing with someone whose communication style is different than your own |
|
|
Term
|
Definition
| The degree to which a salesperson is perceived as developing and maintaining buyer comfort throughout the sales process |
|
|
Term
|
Definition
| People are more apt to buy from you when the perceive you view the world as they do |
|
|
Term
|
Definition
1. Marginal Listening
2. Evaluative Listening
3. Active Listening |
|
|
Term
|
Definition
~ lowest level
~ difficulty concentrating; distraction by their own thoughts |
|
|
Term
|
Definition
| Listener tries to hear but may not understand the intent |
|
|
Term
|
Definition
~ sales person tries to see the prospect's point of view
~ 80/20 listening rule
~ speaking/listening differential: 120-160 v. 800+ |
|
|
Term
| Hints to Active Listening |
|
Definition
- repeat information
- restate or rephrase information
- clarify information
- summarize the conversation
- tolerate silences
- concentrate on the ideas being communicated |
|
|
Term
| How to Classify Selling Situations |
|
Definition
1. Decision Difficulty and Importance
2. Customer ( businesses v. consumers)
3. Buying Situation |
|
|
Term
|
Definition
~ perceived importance of a decision
~ often varies with price and social visibility |
|
|
Term
| Classifying By Difficulty |
|
Definition
- Routine Decision Making
- Limited Decision Making
- Extensive Decision Making |
|
|
Term
|
Definition
- low involvement
- repeat purchases
- little or no time or thought
- beliefs and attitudes already formed
- must reinforce the current belief (positive) or change loyalty and habits (negative) |
|
|
Term
|
Definition
- Medium involvement
- general qualities of goods in a product class are known
- each brand's specific FAB is not known
- more time and motivation to seek information to make the right decision
- provide information to make brand comparisons possible |
|
|
Term
| Extensive Decision Making |
|
Definition
- High involvement
- More at stake
- Information overload
- Find out how they will make a decision and provide only the information that helps them decide |
|
|
Term
| Consumer Buying Situations |
|
Definition
- Habitual Buying Decisions
- Variety-Seeking Buying Decisions
- Complex Buying Decisions |
|
|
Term
| Habitual Buying Decisions |
|
Definition
| Frequently purchased, low-cost items |
|
|
Term
| Variety-Seeking Buying Decisions |
|
Definition
- Low customer involvement; important perceived brand differences
- Brand switching motivated by variety-seeking rather than dissatisfaction |
|
|
Term
|
Definition
- high involvement
- expensive
- purchased infrequently
- lengthy learning process |
|
|
Term
|
Definition
A group of employees responsible for making major purchasing decisions
- combine expertise in different ares
- used when decisions are complex and will impact multiple functional areas |
|
|
Term
| Types of B2B Buying Situations |
|
Definition
- New-Task Buy
- Straight Re-Buy
- Modified Re-Buy |
|
|
Term
|
Definition
- first time purchase of product/service
- information gathering and evaluation depends on complexity and importance
- numerous participants
- sales person as a consultant |
|
|
Term
|
Definition
- routine purchase of supplies
- if product meet criteria buying process is largely automatic
- must monitor satisfaction |
|
|
Term
|
Definition
| Specifications, delivery, prices, or some other element are being modified |
|
|
Term
| Roles Played in the Buying Process |
|
Definition
- initiators
- users
- gatekeepers
- buyer
- decider
- controller |
|
|
Term
|
Definition
| The people who perceive a problem that may require the purchase |
|
|
Term
|
Definition
| The people who work with the product or service |
|
|
Term
|
Definition
| Provide information for evaluating alternatives |
|
|
Term
|
Definition
| Control the kind and amount of information others use in the purchasing process |
|
|
Term
|
Definition
| Contacts the selling organization and places the order |
|
|
Term
|
Definition
| Person with the final authority to make the decision |
|
|
Term
|
Definition
| Determines the budget for the purchase |
|
|
Term
|
Definition
1. Need Arousal - economic, psychological, social
2. Collection of Information
3. Information Evaluation - match needs with FAB
4. Purchase Decision
5. Post-Purchase Behavior - satisfaction or dissonance |
|
|
Term
|
Definition
1. Anticipation or recognition of problem or need
2. Characteristics and quantity needed
3. Search for potential suppliers
4. Acquisition and analysis of proposals or bids
5. Selection of order routine
6. Performance evaluation and feedback |
|
|
Term
Stimulus-Response Model
(black box model) |
|
Definition
STIMULUS-->BLACK BOX-->RESPONSE
We don't know what happens in the black box; why do people do what they do |
|
|
Term
| What Do We Know About Why People Buy |
|
Definition
1. practical (rational) and psychological (emotional) reasons
2. specific methods to help determine prospect's thought during presentation
3. buyers consider certain factors in making a decision |
|
|
Term
|
Definition
- Result from a lack of something
- Might be rational
- Might by psychological
a. Conscious Need Level
b. Preconscious Need Level
c. Unconscious Need Level |
|
|
Term
|
Definition
- person is fully aware of their needs
- easiest to sell to; talk about what their needs are |
|
|
Term
|
Definition
- person is not yet fully aware of their needs
- may be hesitant about telling you
- may present false reasons |
|
|
Term
|
Definition
- person does not know why they buy a product
- needs may be formed gradually over many years
- use questioning to uncover hidden needs |
|
|
Term
|
Definition
| Can be seen as preferences |
|
|
Term
|
Definition
- Feature
- Advantage
- Benefit |
|
|
Term
|
Definition
| A physical characteristic of a product (attribute) |
|
|
Term
|
Definition
| What the feature does; how it performs |
|
|
Term
|
Definition
| Favorable result to the customer; defined by consumer's goals |
|
|
Term
| Common Psychological Needs |
|
Definition
- Fear
- Vanity
- Desire for gain
- Security
- Love of family
- Personal pleasure
- Desire to succeed
- Comfort of luxury
- Self-preservation
- Prevention of loss |
|
|
Term
|
Definition
1. Listen
2. Observe
3. Combine (all of these methods)
4. Ask questions
5. Talk to others
6. Empathize
- Look for customer's hot button |
|
|
Term
|
Definition
| Checks the customer's attitude about the sales presentation |
|
|
Term
| When to Use a Trial Close |
|
Definition
- After making a strong selling point
- After the presentation
- After answering an objection
- Immediately before moving to close the sale |
|
|
Term
|
Definition
1. Show Feature
2. Explain Advantage
3. Lead into Benefit
4. Let Customer Talk |
|
|
Term
|
Definition
The process by which a person selects, organizes, and interprets information
- operates through the senses
- senses act as filtering devices |
|
|
Term
|
Definition
- Selective Exposure
- Selective Distortion
- Selective Retention |
|
|
Term
|
Definition
- Buyers receive a large amount of information and can only use a small part of it
- Ignore or quickly forget other information
- Information may be haphazardly presented or may not be relevant |
|
|
Term
|
Definition
| Alteration of information that results from that information being inconsistent with the buyer's existing beliefs or attitudes |
|
|
Term
|
Definition
| Buyer only remembers information that supports his/her current attitudes and beliefs |
|
|
Term
|
Definition
A learned predisposition about something
- negative or positive
- made up of beliefs (cognitive) and evaluations of those beliefs (emotional) |
|
|
Term
|
Definition
- 1950s
- Fill needs through the products we have |
|
|
Term
|
Definition
- 1960s-1970s
- emphasizes identifying needs through communications
- sales person assumes the role of consultant
- Listen-->Identify Problems-->Offer Solutions
- first integration of the marketing concept into sales tactics |
|
|
Term
|
Definition
- meets the needs of value conscious buyers who are interested in price and convenience
- not much effort in need assessment, problem solving, relationship building or sales follow-up |
|
|
Term
|
Definition
- focus is on building and maintaining quality relationships
- partnering with customer to solve problems
- takes into consideration the long- and short-term optimization of your sales
- trusted member of a buying relationship over time
- capture full customer lifetime value |
|
|
Term
| 4 Key Groups in Relationship Selling |
|
Definition
- Customers
- Secondary Decision Makers
- Company Support Staff
- Management |
|
|
Term
|
Definition
| Long-term sales outlook; communicate to them that this is a long-term selling relationship |
|
|
Term
| Secondary Decision Makers |
|
Definition
| Might facilitate a meeting or some other activity that helps you get a sale; gate-keepers; must reach these people to improve the relationship |
|
|
Term
|
Definition
Develop relationship with employees internal to your organization;
Solving customer needs often means working with other people in your organization |
|
|
Term
|
Definition
| Your sales manager and other members of the management team; you have the support you need at times when you need it |
|
|
Term
|
Definition
- bundle of facts, opinions, beliefs, and perceptions you have about yourself (conscious and unconscious)
- need to have knowledge of who you are
- take advantage of your own personality |
|
|
Term
|
Definition
| Imagining yourself in someone else's position |
|
|
Term
|
Definition
| An internal force that drives sales people to make a sale |
|
|
Term
|
Definition
Capacity for monitoring and managing our emotions and those of others
- perceiving emotions
- using emotions in problem solving
- understanding emotions
- managing emotions |
|
|
Term
|
Definition
- Feeling
- Sensing
- Thinking
- Intuiting |
|
|
Term
|
Definition
1. Extroversion v. Introversion
2. Sensing v. Intuition
3. Thinking v. Feeling
4. Judgement v. Perception |
|
|
Term
|
Definition
| Personal communication of information to persuade a prospective customer to buy something that satisfies that individual's needs |
|
|
Term
|
Definition
| Waits for the customer to order; maybe some up-selling; very little closing |
|
|
Term
|
Definition
| Create new and repeat sales by creatively competing with other brands; often involves increasing awareness |
|
|
Term
|
Definition
| Building awareness about a brand in general without an emphasis on getting orders |
|
|
Term
| Required Skills for Selling |
|
Definition
- Conceptual Skills
- Human (Social) Skills
- Technical Skills |
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|
