Exam 1 cards 1-25

Question 1

What is the definition of selling

Answer 1

a. Human-driven interaction between and within individuals and organizations:
b. No sequential steps
c. Involves many people
d. Creates value

Question 2

In a sales transaction, what is the buyer’s profit? The seller’s profit?

Answer 2

Buyers = Value
Sellers = Selling price minus cost of goods sold and selling costs

Question 3

What is the personal value equation?

Answer 3

Benefits received - (Selling price + Time and effort to purchase)

Question 4

How can time savings enter into the sales equation?

Answer 4

Time savings can offset higher prices – pay more for service, expertise, convenience

Question 5

What are three ways that salespeople can add value in a selling situation?

Answer 5

• Provide interface between the buying and selling companies
• Identify networks of key players and help activate them to the task of co-creating value
• Encourage two-way communication and help to create effective bonds between people
 Help to manage situations that arise to bring everyone back to a value-adding perspective
 Help to foster trust and commitment
 Be attuned to activities that increase value adding and help facilitate more of them
 Help to provide closure on solutions that provide value to all parties

Question 6

In terms of adding value, which is the difference between unpaid and paid sales promotion? The difference between personal and impersonal sales promotion?

Answer 6

Paid – Advertising, personal selling/email
Unpaid – Publicity/Word of mouth
Personal – Personal Selling/email
Impersonal – Advertising/sales promotion/Publicity

Question 7

What are three tasks that client relationship managers do?

Answer 7

prospecting (looking for new customers)
making sales presentations
demonstrating products
negotiation price & delivery terms
writing orders
increasing sales to existing customers
traveling, doing paperwork, and working with other people in their company to make their orders go smoothly.

Question 8

three benefits to team selling

Answer 8

When a small company uses multiple salespeople to contact a client it helps the company appear larger than it is. Customers may like this approach, as it gives them multiple people to contact if there’s a problem.
Team selling shows clients that a company has more than one person with strong selling capabilities, giving the client a higher comfort level about the company.
Effective team selling will lower the cost of sales calls, while the number of people assigned to each sales call will double. This will increase their “batting average,” resulting in an overall increase in productivity.

Question 9

Define and provide a diagram for the following sales channels: B2B industrial salesperson, B2B trade salesperson, B2B missionary salesperson, B2C direct salesperson.

Answer 9

Industrial - Sent by the manufacturer to sell the business
Trade Salesperson - sell to firms that resell the products, rather than using them within the firm
Missionary Salesperson - work for manufacturer, sell and influence directly to customer
Direct salesperson - Sells straight from the manufacturer to the consumers (non-business)

Question 10

How is selling to an existing customer different from selling to a new customer?

Answer 10

Selling to an existing customer would rely more on the relationship. New customer you have to build trust

Question 11

What is the difference between “order taking” and “order getting”? Which is preferred (from the organization)? Which is easier (as a salesperson)?

Answer 11

Order taking- Like McDonalds. Customer tells you what they want
Order Getting – Sales person has to go out and sell the product to another. Order getting is preferred.

Question 12

What is the difference between a field salesperson and an inside salesperson?

Answer 12

Field sales – Someone who sells outside of the office

Inside sales- someone who sells from within the office

Question 13

What is the definition of emotional intelligence? Why is high emotional intelligence an important quality for a salesperson to have

Answer 13

• Ability to effectively understand and regulate one’s own emotions and to read and respond to the emotions of others
High EI - Knowing ones emotions allows the salesperson to connect and interact effectively and can positively relate to performance and retaining customers

Question 14

What is the definition of ethics?

Answer 14

The principles governing behavior of an individual or a group

Question 15

How did the sales profession change from the early days (pre-1960) to today in terms of objective, orientation, and the role of the salesperson?

Answer 15

1960’s – Make sales, no relationship, persuader, more aggressive in convincing people to buy. Short term focused
today – Building relationships, Long term customer and seller needs, value creator, matching buyer needs with seller capabilities, not so pushy

Question 16

How can manipulation and persuasion hurt a relationship with customers?

Answer 16

Trust deteriorates if integrity becomes questionable

Partnership between buyers and sellers cannot develop when salespeople behave unethically or illegally

Question 17

What are the pros and cons to giving your largest customer an expensive holiday gift?

Answer 17

Could be taken the wrong way
Can’t offer any of this to public sector/gov’t agencies
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

Question 18

What are two ways that a salesperson might rationalize unethical decisions?

Answer 18

All salespeople behave this way
No one will get hurt by this behavior
This behavior is the lesser of two evils
This conduct is the price one has to pay for being is business

Question 19

What is the ‘front page of the newspaper’ test that we discussed regarding making ethical decisions?

Answer 19

Would you want the decision to end up on the front of the newspaper

Question 20

What is the definition of deception in a sales context?

Answer 20

Deliberately presenting inaccurate information
Telling half-truths
Withholding important information
Manipulative and unethical

Question 21

What is the definition of bribing in a sales context?

Answer 21

Payments made to buyers to influence their purchase decisions

Question 22

Define kickbacks and backdoor selling

Answer 22

Kickbacks - Payments made to buyers based on the amount of orders placed
Backdoor selling - Salespeople ignore the purchasing agent’s policy and contact people directly involved in the purchasing decision

Question 23

Define and know the difference between puffery and misrepresentation

Answer 23

Puffery - opinions, customers can’t rely on statements
Misrepresentation - statements about the inherent capabilities of products or services can be treated as statements of fact and become warranties, Illegal under the False Claims Act

Question 24

Define business defamation, reciprocity, tying agreements, conspiracy and collusion

Answer 24

Defamation - unfair or untrue statements about competitor, products, or salespeople, Illegal when they damage a competitor’s reputation or the reputation of the salespeople
Reciprocity - two companies agree to buy from each other
Tying Agreement - required to purchase one product in order to get another — illegal, UNLESS they can show that the two products must be used together
Conspiracy - agreement between competitors before customers are contacted
Collusion - competitors working together while the customer is making a purchase decision

Question 25

What is the difference between lubrication payments and subordination?

Answer 25

Lubrication - small money or gifts to low-ranking officials

Subordination - larger payments to higher-ranking officials