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Sell and A to the Professor
Personal Selling Final
128
Marketing
Undergraduate 4
05/09/2013

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Term
Personal selling
Definition
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
all about relationships
Term
Why learn about personal selling
Definition
principles are useful to everyone
developing mutually beneficial, long-term relationships is vital to all of us
people in business use these principles all the time
Term
Examples of everyone selling
Definition
Entrepreneurs- to acuire funding
Industrial relations executives- negotiating with unions
Financial planners- convincing clients that their service is of value
Term
Advantages of a sales job
Definition
compensation potential
challenge
flexibility of time
rewards from making a tough sale
learning the business from the bottom up
opportunities for senior management positions
Term
Disadvantages of sales job
Definition
role ambiguity-limited supervision
role conflict- potential conflict between customer and company demands
Depression from lost sales
discomfort from asking customers to buy
Negative stereotype
Term
The "promotional mix"
Definition
Impersonal, personal
Paid: ads/sales promotions, personal selling/emails
Unpaid: publicity, word of mouth
Term
Communication methods strengths and weaknesses
Definition
Firms have more control when using paid
Unpaid are typically seen as more credible
Advertising, internet sites, and sales promotions give companies control over content and timing
personal selling more flexible
personal selling most costly (400 per contact)
Term
For many companies personal selling is...
Definition
the primary method of promotion
Term
Roles of the salesperson
Definition
client relationship manager
account team manager
vendor and channel manager
information provider to their firm
Term
Types of sales jobs
Definition
trade salespeople
new business selling
technical salespeople
missionary salespeople
manufacturers' agent (or reps)
Term
trade salespeople
Definition
sell to firms that resell the products rather than using them within the firm (sell to the trade)
Term
New-business selling
Definition
the salesperson responsible for finding new customers
can be though os as a hunter vs. salesperson who cultivates existing customers is farmer
Term
Technical salespeople
Definition
technical background which allows them to provide support in later stafes of selling process
come in only after another salesperson has established contact with potential customer
Term
Missionary salespeople
Definition
"sell" the product but firms buy from distributors or other manufacturers
frequently call on people who influence buying decision but do not actually place the order
Term
Manufacturers' agents (Reps)
Definition
independent businesspeople who are paid a commission by a manufacturer for all products/services sold
Agents never own the products
Simply perform the selling activities then transmit orders to manufacturers
Term
Sales people spend ___% of time on-site contacts
Definition
33%
Term
To be successful in selling a salesperson has to be, type A, life of party, overly agressive
Definition
FALSE
Term
Agressive
Definition
lacks empathy, pushy, assumes they know customer needs
Term
Assertive
Definition
responds to objectives in a positive way, shows empathy, asks good questions& provides information, Does NOT give up on 1st or 2nd no
Term
Submissive
Definition
not confident, lets customer take control, gives in to objections too soon
Term
The personal selling process
Definition
prospect-> pre-approach planning ->Approaching the prospect->The sales presentation->handling objections-> closing the sale
Term
Characteristics of cultivating selling
Definition
need for good listening skills
ask the right questions
Creativity and analytic-thinking are necessary
focus on problem-solving, rather than deal-making".
Term
The power of 1 more person
Definition
anyone has 10 close business associates who also have 10 close business associates (110 more people)
Term
Outcomes of good networking
Definition
more business contacts
more sales
more business education
more community involvement
more friends
Term
when going to a networking event you should always
Definition
have a plan
Term
Fundamentals of networking
Definition
pre-plan the event
show up early
don't spend too much time with people you already know
walk the crowd at least twice
target your prospects
have your elevator pitch ready
be positive
say a person's name twice
eat early
stay until end
stand at entrance at beginning and end
don't sell product yet
never forget business cards
Term
guidelines for joining an organization
Definition
go where prospects are
commit to becoming involves
be consistent
give first, don't push
not every networking contact needs to be a sale
get to be known as a leader
Term
Other tips
Definition
take action every day
call at least 2 people a day
go to at least 1 networking event per week
make your customers your friends
Term
Adaptive selling
Definition
reading your audience to be an effective communicator
Term
Canned presentation
Definition
standard memorized presentation
ensures salespeople will provide complete and accurate information
limited effectiveness
Term
Prearranged presentation
Definition
outlined presentation
standard into
standard answers to common objections
standard method for getting the customer to place an order
effective because well organized
Term
Customized presentation
Definition
written and/or oral, based on detailed analysis of customer's needs
allows salesperson to demonstrate empathy
provides greatest opportunity to adapt to customer needs
Term
Adaptive Selling
Definition
Salespeople should alter content and form of their sales presentation so customers will be able to absorb info easily
Forces salesperson to practice the marketing concept
Empathizes the importance of satisfying customer needs
Being adaptable increases buyers trust and commitment and results in higher sales performance
Term
Social style mix
Definition
popular training program that companies use to help salespeople adapt their communication styles
Adjust behavior to mirror customer's social style
Term
Responsiveness
Definition
based on how emotional people tend to get in social situations
readily express
concern with others
informal and casual in social situations
Term
social style matrix
Definition
x axis assertiveness low to high
y axis high to low responsiveness
top left-analytical
Top right- drivers
bottom left- amiables
bottom right- analyticals
Term
Drivers
Definition
swift, efficient decision makers
focus on the present and appear to habe little concern with past of future
Term
Expressives
Definition
Focus on the future, directing their time and effort towards achieving their vision
Have little concern for practical details in present situations
Term
Amiables
Definition
Achieve their objectives by working with people, developing an atmosphere of mutual respect
Term
Analyticals
Definition
like facts, principles, and logic
Suspicious of power and personal relationships
Term
Identifying Customer's social styles
Definition
Concentrate on the customer's behavior and disregard how you feel about the behavior
Avoid assuming that specific jobs or functions are associated with a social style
Test your assessments
Term
Analytical cues
Definition
technical background, achievements on the wall, conservative, likes solitary activities
Term
Driver cues
Definition
technical background, achievements on the wall, no posters or slogans on office walls, calendar promptly displayed, furniture paced so that contact with people is across desk, conservative dress, likes group activities
Term
Amiable cues
Definition
Liberal arts background, Office has friendly open atmosphere, pictures of family displayed, desk placed for open contact with people, casual or flamboyant dress, solitary activities
Term
Expressive cues
Definition
liberal arts background, motivational slogans on wall, friendly open atmosphere, cluttered unorganized desk, open contact with people, casual or flamboyant dress, likes group activities
Term
prospecting
Definition
the life blood of company growth
often least favorite activity- rejection
talking to the right company and right people
requires disciple and work to be done right
Term
lead vs prospect
Definition
becomes prospect when you discover needs
Term
A portfolio approach to prospecting
Definition
c prospects- name, address, phone #, possible contact
b prospects- possible need, shows interest, multiple meetings
A prospect- decision-maker known, clear need for your product, short buying horizon, can afford you
Term
endless-chain method
Definition
sales rep attempt to get at least one additional lead from each person they interview
works best when the source is a satisfied customer and partner
Term
where to find prospects
Definition
satisfied customers
endless chain method
social media
shows, fairs, and merchandise markets
webinars and seminars- Group prospecting
Lists and directories
cold calling and spotters
Term
Spotters
Definition
paying someone for lead information
aka bird dogs
Term
cold calling
Definition
should not be primary way to get prospects
Term
overcoming a reluctance to prospect
Definition
identify and evaluate excises not to call
engage in sales training and role playing activities
set specific goals for all of your prospecting activity
realize the economic value of most prospect
Term
relationship marketing
Definition
partnering
strategic alliance
relational transacting
co-opetition (between competitors)
Term
Characteristics of relational transacting
Definition
joint long-term planning
sharing of info
co-investment in non-recoverable assets
trust
high level of interdependency
common goals/shared values
Term
Why has relationalism developed
Definition
firms returning to their core competencies
increased inter-firm dependency
increased global opportunities and uncertainties
consumer demand for higher quality products
Term
“Symbiotic” Relationship
Definition
the goby fish and shrimp
one digs hole other stands guard
Term
selling to a current customer vs. new one
Definition
7 vs 34
Term
loyalist
Definition
the customer who is completely satisfied and keeps coming back
Term
advocate
Definition
a loyalist who tells others about you
Term
vigilante
Definition
a former-customer who had a bad experience and goes out of their way to tell others
Term
mercenary
Definition
act and appear satisfied but are always looking for the next best deal
Term
hostage
Definition
may appear loyal by purchasing but is only buying because of lack of choice
Term
Satisfaction vs. delightment
Definition
satisfaction- things as expected, needs met adequately, loyalty based on routine
delightment- unexpectedly positive product experience, consistency of raised level of quality, loyalty based on emotional attachment
Term
reasons to push for delightment
Definition
increased commoditization of many products; they look the same
global market expansion
buyers becoming more knowledgeable with greater amounts of information
lowered switching costs
Term
Brand Attributes: Functional vs. Psychological
Definition
Functional- performance, reliability, conformity to needs, durability, serviceability
Psychological- competence, accessibility, adaptability, reputation, recovery, courtesy and empathy
Term
Characteristics of a strong presentation
Definition
keeps buyers attention
improves understanding
helps remember what was said
offers proof of the salesperson's assertions
creates a sense of value
Term
strengthening presentation for buyers style
Definition
Expressive- intense colors, positive images
analyticals- clean simple detailed
amiables- people filled slow paced
drivers- crisp and professional
Term
Strengthening presentation: consider elements like...
Definition
how many people will attend
which stage of the buying process they are in
what information they need
what type of situation this is
Term
Graphics and charts
Definition
know the single point the visual should make
use current, accurate info
don't place too much info on visual
use bullets
don't overload buyer with numbers
clearly label with title
Term
Value analysis
Definition
showing the prospect that the cost of the proposal is offset by the value added
Term
Customer value proposition
Definition
the way in which your product will meet the prospect's needs and hoe that is different from the offerings of competitors
Term
profit margin
Definition
the net profit the reseller makes, expressed as a percentage of sales
Term
inventory turnover
Definition
annual sales/ average retail price of inventory on hand
inventory management systems
Term
return on space
Definition
sales per square ft or sales per shelf ft
Term
The approach
Definition
the first time salesperson makes contact
most important 30 seconds in selling
must establish rapport and gain attention
Term
Setting an agenda
Definition
propose
make sure customer understands value of it
and get input and acceptance before moving on
Term
aggressive selling style
Definition
believe they are the best judge of the customer's needs
Term
submissive selling style
Definition
accept the customer's definition of needs
Term
Assertive selling style
Definition
probe for need-related info that the customer may hae not volunteered
Term
indifferent customers
Definition
may see no need for the type of product you sell or may be satisfied with product they are using now
challenge is to help them see their situation in a new and different way
Term
Referral approach
Definition
"mr. smith, thank you for seeing me. i'm here at the suggestions of ms. allen of brock controls."
Term
benefit approach
Definition
mr. smith, i would like to tell you about a copier that can reduce your copying costs by 15%
Term
product approach
Definition
mr. smith, how would you like to have this credenza in your office
Term
compliment approach
Definition
mr. smith i saw in the post dispatch that your company had record profits this quarter. congrats
Term
compliment approach
Definition
mr. smith i saw in the post dispatch that your company had record profits this quarter. congrats
Term
question approach
Definition
mr. smith, what was your reaction to the brochure i sent you about our new services?
Term
SPIN technique
Definition
S=situation questions
P= problem questions
I=Implication questions
N= Need pay off
Term
Situation questions
Definition
data gathering
what is your position
how many people do you employ
Term
Problem questions
Definition
questions about specific difficulties, problems, or dissatisfactions
help you identify opportunities - areas that the salesperson can probe for further understanding
is your current machine difficult to repair
have you experienced any difficulties with the overall quality of your forklifts
Term
Implication questions
Definition
questions asked only after dissatisfaction has been identified
designed to help the prospect think about the ramifications of problems
help buyer realize that the cost of nothing outweigh the cost of solution
what happens if you shop your customer a product that doesn't meet specs
what does that do to your price as compared to your competitiors
Term
Need payoff
Definition
salesperson ask questions about the usefulness of solving a problem, they are asking need payoff questions
if i can show you a way to eliminate paying overtime for your operators and therefore reduce your costs, would you be interested?
if buyer responds negatively to a need payoff question the salesperson has not identified a serious need
Term
why do prospects raise objections
Definition
don't understand what you are selling/its benefits
don't need it (or think they don't)
don't like the unknown/risk
to test you
too expensive
don't want to make decision
Term
valid objections
Definition
true reason why they are showing resistance
Term
invalid objections
Definition
a dodge, a way of getting rid of a salesperson or hiding the true objection... i'm not interested, just send me a brochure, never heard of you, i'm busy
Term
how do you determine if really invalid
Definition
timing-where in the selling process you are
tone- how someone says is
Term
forestalling an objection
Definition
salesperson raises an objection before the buyer has a chance to raise it
buyers are more willing to change thinking when they do not fell need to defend position
Term
common methods for responding to objections
Definition
direct denial
indirect denial
compensation
feel-felt-found
boomerang
postpone
Term
direct denial
Definition
that is simply not true. our product has been rated the highest in the industry for the last three years
Term
indirect denial
Definition
I can certainly see why you would be concerned about quality. Actually though our product has been rated as the highest in the industry got the last three years
Term
compensation method
Definition
i agree that our quality is not as high as some as our competitors. however it was designed that way for customers who are looking for a lower-priced alternative. so you see, our somewhat lower quality is actually offset by out much lower price
Term
Boomerang method
Definition
the fact that the quality is lower than in other products is probably the very reason you should buy it
Term
postpone method
Definition
that's an interesting point. before discussing it fully, I would like to help cover just two things that I think will help you better understand the product from a different perspective. Okay?
Term
handling price objections
Definition
price/quality connection
lowest-denominator method
product as an investment (i.e. cost/benefit analysis)
Term
right time to seek for commitment
Definition
no right time
watch for verbal indicators
watch for nonverbal indicators
Term
trial closes
Definition
how does this look so far
is this something that's an improvement over what you are using now
would that kind of savings mean much more you your bottom line
can you see how this could really benefit your people
do you think your customers will have a positive response to this
pretty cool huh
Term
Direct request
Definition
ask for the order
Term
benefit summary
Definition
we've agreed that the overall cost savings our product provides is what you're looking for, correct?
Term
balance sheet
Definition
why you should buy from me
why you shouldn't buy from me
Term
probing
Definition
mr. jenkins, it sounds as though you need to know why our price is what it is right?
as long as i'm here, what things are you considering as you think this through
Term
Aggressive closing
Definition
overwhelms customer
responds to objections without attempting to understand them
Term
submissive closing
Definition
assumes customers will buy when ready
Term
assertive closing
Definition
responds to objections, leading to a somewhat automatic close
Term
expressed warranty
Definition
oral or written statement by seller
Term
implied warranty
Definition
not actually stated but is still an obligation defined by law
Term
puffery
Definition
quality can't be beat!
Term
forced reciprocity
Definition
legal if both parties willing
if you do this i'm use your shipping
Term
sandbagging
Definition
legal unethical
Term
price fixing
Definition
illegal
Term
2 types of sales goals
Definition
activity- behaviors that lead to sales
performance- outcomes of behaviors
Term
planning process
Definition
make list of activities, prioritize goals, estimate the time each will take, develop a time schedule, compare estimated time with actual time spent on the activity
Term
ABC prioritization
Definition
a- really need to be accomplished
b- the activities are important in the near future
C- icing on the cake accomplishments
Term
reasons people procrastinate
Definition
unpleasant task
task overwhelming
goals unclear
fear change
fear failure
addicted to cramming
Term
reasons people don't delegate
Definition
loss of control
feeling they are the only one that can do the job right
feeling guilt
feeling they don't have authority
success of the person doing the work
never think of it
Term
steps to delegating
Definition
find the right person
explain the task
specify your standards
establish a reporting method
encouraging questions
conduct unscheduled status check
evaluate results
reward achievements
Term
time leaks
Definition
socializing too much
misplacing things
forgetting information
long-winded people
Term
time management commandments
Definition
det goals
prioritize
write it down
avoid procrastinating and time leaks
delegate when possible
be flexible
don't obsess
Term
team selling
Definition
integrates functional specialists with customer relationship specialists
works with buying center
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