22-53 Flashcards
Define kickbacks and backdoor selling
Kickbacks?
Payments made to buyers based on amount of orders placed
backdoor selling?
Salesperson ignoring the purchasing agent’s policy and contact people directly involved in the purchase decision
Define and know the difference between puffery and misrepresentation.
Puffery: Opinions, customers can’t rely on statements
Misrep: Statements about inherent capabilities of products or services that can be treated as statements of facts (9 out of 10 times…)
Define business defamation, reciprocity, tying agreements, conspiracy and collusion
Business defamation
Unfair or untrue statements about competition, products, or salespeople
Reciprocity
Two companies agree to buy from each other
Tying
Required to purchase one product in order to get another (illegal unless can show necessity)
Conspiracy
Agreement between competitors before customers are contacted
Collusion
Competition working together while the customer is making a purchase decision
What is the difference between lubrication payments and subordination?
Lubrication: Small money or gifts to low-ranking officials
Sub: Larger payments to higher ranking officials
Define and provide examples of producers, OEM purchasers, end users, resellers, government agencies, institutions, and consumers.
What are producers?
Buy components to manufacture their own products to sell (A grain company purchasing wheat, oats, etc.)
OEM purchasers
Original equipment manufacturers: buy goods to use in making their products
(Already processed by another company - a computer company purchases different parts to go into a whole)
End users
When producers buy goods and services to support their own
-Paper towels, notepad, pens
Resellers
Buy finished products or service with the intention to resell them to business & consumers. Must consider: Profit margin, turnover, and effort to maximize their ROI (Walmart, etc)
Government agencies
Federal, local, state: The lowest bidder wins the contract. Goods and services valued at more than $1 trillion annually.
Consumers
Products and services for use by themselves or by their families (us)
Institutions
Public and private institutions; usually they have intense and well-defined purchasing procedures
-Churches, hospitals, colleges
Why is selling to an organization more complex than selling to a consumer?
Evaluations and negotiations, complexity is increasing, time to close, number of people required to sign off, availability of buyers
What are the eight steps in the organizational buying process?
- Recognition of need
- Definiton of product type needed
- Development of detailed specifications
- Search for qualified suppliers
- Acquisition and analysis of proposals
- Evaluation of proposals + selection of supplier
- Placing and receiving the order
- Evaluation of product performance
What is creeping commitment, and how can it aid the salesperson in the sales process?
Customer becomes increasingly committed to a course of action while going through the steps
Define new task buying, straight rebuys, and modified rebuys.
New Task buying:
When purchasing for the first time (usually equipment)
Straight rebuys
A customer buys the same product from originals source
Modified rebuys
Customer has purchased the product but is looking for new info
What role do the following play in the sales process – initiator, influencers, gatekeepers, users, and deciders?
Initiator: starts the process, can come from each of the other sources
Influencers: Directly/indirectly provide influence during the process
Gatekeepers: Control the flow of info and may limit alternatives considered
Users: Often not make the decision, some influence
Deciders: Makes final choice
What is a ‘lost for good’ customer and why can this be a goal for a salesperson?
Minimizing the chances of a poor decision by converting buying decision into straight rebuys. –> Routine decision
What is the communication process that we discussed in class? What is encoding and decoding?
Encoding (thoughts to words), message,
decoding (interpreting),
feedback (verbal/non)
What are three problems that can arise in a communication process?
- Original message unclear or poorly structured
- Emotional filter distorts the message (anger, bias, attention)
- Message not heard or wrongly interpreted
What are three things that ensure that communication is successful?
- Sender states message clearly
- message properly decoded
- Receiver pays attention and is not distracted
When is it appropriate to use industry terms/jargon?
In good and long standing relationships
Define the following related to vocal characteristics – loudness, inflection, articulation
loudness- the volume
inflection- loudness and pitch
articulation- clearness of the message
What are some examples of positive outcomes after calling on prospective customers?
- Purchase
- Phone meeting
- In-person meeting
- Details for follow up
What is the difference between hearing, passive listening, and active listening?
Hearing: Tuning in and out, non responsive, pretending to hear, attention to self
Passive: Low effort, no deeper meaning, more concerned with content than with speaker’s feelings, seems like real listening
Active: Put self in speaker’s place, sees things from their POV, reads body language, avoids distractions
What is the 80/20 rule regarding listening?
Listen 80, talk 20
What are three examples of positive non-verbal communication signals?
Uncrossed arms, nodding, eye contact
What are three examples of negative non-verbal communication signals?
Crossed arms, shaking head, no eye contact
When it comes to appearance, what are three of the five principles that we discussed in class?
- Consider geography
- consider customers and their expectations
- Consider corp culture and norms
Regarding the table in chapter 4 of the D2L slides (slide 15), answer the following: which communication methods have fast response times? Slow response times? Which communication methods allow salespeople to read or hear the buyer’s verbal or non/verbal communications? Which method allows for the highest quantity of information that the buyer and/or seller can send?
Fast: Telephone/ Face to face Slow: Email, Fax, Voicemail Verbal Communications: Tele, F2F, Voicemail Nonverbal: Fax, Email Highest of info: F2F
What is an example of a commitment to action that you can leave on a voicemail? An email?
Ask to call back to set up an appointment
What are the main characteristics of a memorized presentation? An outlined presentation? A customized presentation?
Memorized
Same points to all customers, complete and accurate info, not very effective, no tailoring of presentation
Outlined
Standard intro, answers to objections, method for getting the customer to place an order, effective
Customized
Based on detailed analysis of customer’s needs, communication, adaptive
What is the best presentation method for new sales reps?
Outlined
Define adaptive selling. What type of knowledge is required for adaptive selling?
Adaptive: changing sale behavior based on selling situation
-Product/company knowledge (products, services, company, competitors) , sales and customers (reduce complexity of selling, get more creative)
What is the difference between performance feedback and diagnostic feedback?
- Performance: Provides information about whether the salesperson achieved his or her goal
- Diagnostic: Provides info about what the salesperson is doing right and wrong instead of just whether he or she made a sale
We discussed two dimensions of social style. List and define them.
Assertiveness- degree to which people have opinions about issues & publicly make them known
Responsiveness- based on how emotional one reacts in social situations
What are the four categories of social styles we discussed in class? What are key characteristics of each? How would you sell to each social style
Drivers: CEO - quick decisions, assertive, risk
Expressive: Act quickly, risk, decisions based on everyone, impatient, changes minds, sales people
Amiable: Relationships, slow decision, no risk, consensus
Analytical: slow decisions, no relationships lol, want to make right decision
Driver: Direct and business like. Quick action
Expressive: How it will achieve recognition, testimonials, innovator
Analytical: Solid evidence, long term beenfits and expertise
Amiable: Satisfaction, build good relationship, follow up!
What are two things that someone who is highly assertive can adjust to reduce their assertiveness in a sales encounter?
Ask for customer’s opinion and listen without interruption
What are two things that someone who is highly responsive can adjust to reduce their responsiveness in a sales encounter?
Talk less and restrain enthusiasm
