Chapter 17: Personal Selling and Sales Management Flashcards
Where does most direct face-to-face selling of consumer products take place?
At the salespersons’ place of business
Where do B2B salespeople typically make their sales calls?
At customer locations
What is 1 advantage of personal selling?
Sales messages can be tailored to the motivations, interests, and objections of each prospective customer
What is 1 major factor that changes the sales environment?
The rapid increase in new sales technologies, including social media
How does personal selling help with complex goods?
Salespeople can determine customer needs and propose customized features and accessoiries
What is a limitation of personal selling?
The cost per contact is much higher than mass communication methods
When are advertising and sales promotion more important than personal selling?
When the product has low value, is standardized, or is easy to understand
When is personal selling more important than advertising?
When the product has high value, is custom-made, or is technically complex
What is ‘showrooming’?
When consumers evaluate products in-store but compare prices and features online before making a purchase
How can social media impact a salesperson’s credibility?
Consumers may know more about the products than the salesperson, damaging credibility
What is relationship selling?
Building long-term partnerships with customers by focusing on mutually beneficial outcomes
Why is relationship selling more cost-effective for companies?
It focuses on retaining customers, which is less expensive than constantly finding new ones
What is the first step in the sales process?
Generating leads
What is lead generation?
The process of identifying firms or people most likely to buy the seller’s offerings
What is a common method of lead generation?
Cold calling, which involves approaching potential buyers without prior knowledge of their needs
What does lead qualification determine?
Whether a prospect has a recognized need, buying power, and is receptive and accessible
What is the preapproach in the sales process?
The homework a salesperson does before contacting a prospect, particularly in B2B sales
What should a salesperson know before proposing a solution?
- Everything about the product
- Customer needs
- Competitors
- The industry
What is a sales proposal?
A formal document or presentation that shows how the product will meet or exceed the prospect’s needs
What should a salesperson do when handling objections?
- Anticipate objections
- Investigate fully
- Know the competition
- Stay calm
What does closing a sale often require?
Negotiation, during which both the salesperson and prospect offer concessions to reach an agreement
What is the final step in the selling process?
Following up to ensure the customer is satisfied and all promises are met
What is social selling?
Using social media platforms for research, networking, prospecting, and relationship building throughout the sales process
What is the foundation of effective sales management?
A success-oriented sales force that accomplishes its mission economically and efficiently
What should sales goals be like in effective sales management?
Sales goals should be clear, precise, measurable, and include a time frame for completion
What is a quota in sales management?
A statement of a salesperson’s sales goals, usually based on sales volume
How are most sales departments organized?
By:
1. Geographic regions
2. Product lines
3. Marketing functions
4. Markets
5. Industries
6. Individual accounts
What are some key traits of great salespeople?
- Strong ego
- Sense of urgency
- Competitiveness
- Assertiveness
- Sociability
- Risk-taking
- Quick thinking
- Creativity
- Empathy
Why are market or industry-based structures becoming more popular?
They allow sales reps to become experts in their fields, offering better solutions and service
What begins after a sales recruit is hired?
- Initial training on company policies
- Selling techniques
- Product knowledge
- Nonselling duties
How has sales training evolved with new technologies?
Training now includes eLearning methods, webinars, and online tutorials in addition to traditional methods like role-playing
What are the characteristics of outside salespeople versus inside salespeople?
Outside salespeople:
1. Self-starters
2. Manage their own schedules
3. Travel more
Inside salespeople:
1. Rely on communication skills
2. Make cold calls
3. Have more direct supervision
Why is compensation important in sales force management?
It attracts, motivates, and retains good salespeople, and firms may tie compensation to profitability or customer satisfaction
What happens in companies with lower compensation levels?
- Higher turnover rates
- Increased costs
- Decreased sales effectiveness
- Poor relationship management
What performance measures are used to evaluate the sales force?
- Sales volume
- Contribution to profit
- Customer satisfaction
- Specific goal achievement
How can social media help evaluate salespeople’s performance?
Through customer reviews, managers can assess where salespeople excel or fall short
What are 2 key factors of a CRM system?
- Customers take center stage
- Business must manage the customer relationship across all contact points
How can CRM systems help businesses close more sales?
By identifying customer relationships, understanding the customer base, and capturing data to develop deeper relationships
What does ‘customer-centric’ mean in CRM?
It is a philosophy where a company customizes products and services based on data generated from customer interactions
What is ‘knowledge management’ in CRM?
The process of centralizing and sharing customer information to enhance relationships between customers and the organization
How do interactions contribute to CRM succes?
Interactions help build learning relationships between customers and the organization, contributing to lasting and profitable relationships
What are ‘touch points’ in CRM?
Areas where customers have contact with a company, and from which data is gathered
How can web-based interactions be used in CRM?
They allow customers to evaluate products, give feedback, and provide data that can be used to improve customer relationships and refine marketing efforts
What is ‘social CRM’?
An extension of traditional CRM that includes engaging customers through social media and using behavioral data for better relationship management
What is the net promoter score in social CRM?
It measures how much a customer influences others’ behavior through recommendations on social media
How are point-of-sale interactions useful in CRM?
They collect customer data to identify the best customers and improve satisfaction through services like in-store promotions
What is the challenge in capturing customer data for CRM?
The issue is not how much data to obtain, but what types of data shouls be acquired and how to use it effectively
How does cross-selling work in CRM?
By matching product profiles to customer demographics of behavior, companies can recommend additional products or services to existing customers
What is data mining used for in CRM?
To identify the most profitable customers and trailor marketing strategies to those segments
What is campaign management in CRM?
Developing customized product or service offerings for targeted customer segments to enhance relationships
How can companies retain loyal customers using CRM?
By building long-term, mutually beneficial relationships with their key customers
How can marketers use transaction data in CRM?
They can track customer relationships and modify marketing messages based on the customers purchase history and usage patterns
