Exam 1 Cards 26-53 Flashcards
Define and provide examples of producers, OEM purchasers, end users, resellers, government agencies, institutions, and consumers
Producers - buy components to manufacture their own products to sell
Products included in manufacturing
Products and services to support the manufacturing operation
OEM purchasers - original equipment manufacturers: buy goods to use in making their products Goods to use in making their products to sell (but these goods they buy have already been processed or made by another company)
End Users - when producers buy goods and services to support their own production. Ex. Capital equipment
Resellers - buy finished products or services with the intention to resell them to businesses & consumers. They must consider: profit margin, turnover, & effort to maximize their ROI. EX. Walmart
Government agency - : federal, local, and state; the lowest bidder wins the contract. Goods and services valued at more than $1 trillion annually (6% of GDP - 2012 US GDP 15.6 trillion); the largest customer in the world
Institutions: public and private institutions; usually they have intense and well-defined purchasing procedures. Examples: churches, hospitals, colleges
Consumers: products and services for use by themselves or by their families. Example: us!
Why is selling to an organization more complex than selling to a consumer?
Evaluations and negotiations Complexity is increasing (global business, management involvement, buyer needs) Time to close Number of people required to sign off Availability of buyers
What are the eight steps in the organizational buying process?
Step 1 – recognition of need
Step 2 – Definition of the product type needed
Step 3 Development of detailed specifications
Step 4 – search for quality suppliers
Step 5 – acquisition and analysis of proposals
Step 6 – evaluation of proposals and selection of a supplier
Step 7 – Placing and receiving the order
Step 8 – Evaluation of product performance
What is creeping commitment, and how can it aid the salesperson in the sales process?
Creeping commitment - Customer becomes increasingly committed to a course of action while going through the steps in the buying process, Each level serves as a foundation to the next level and has the opportunity to eliminate potential salespeople to buy from. As decisions are made at each step, the range of alternatives narrows; the customer becomes more and more committed to a specific course of action & to a specific vendor. Critical that salespeople be involved in the initial steps
Define new task buying, straight rebuys, and modified rebuys
New task buying – Purchasing for the first time, usually with equipment. Must go through the 8 steps
Straight Rebuys – A customer buys the same product from the original source. Called Filling. Based on long relationship
Modified rebuys – Customer has purchased product in the past but is looking for new info. May tweak order
What role do the following play in the sales process – initiator, influencers, gatekeepers, users, and deciders?
Initiator – Starts process, can come from each of the other sources
Influencers – directly/indirectly provide influence during the buying process
Gatekeepers – control the flow of information; may limit alternatives being considered
Users – Often don’t make the purchasing decision, might have some influence
Decider – Makes the 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 decisions into straight rebuys à Decision becomes routine
What is the communication process that we discussed in class? What is encoding and decoding?
Encoding - translating thoughts into words
Decoding - interpreting a received message to interpret the meaning
What are three problems that can arise in a communication process?
the original message is unclear or poorly structured
an emotional filter distorts the message (anger, bias, lack of attention)
the message is not heard or wrongly interpreted
What are three things that ensure that communication is successful?
the sender states the message plainly and clearly
the message is properly decoded or interpreted
the receiver pays attention and is not distracted
When is it appropriate to use industry terms/jargon?
When you are communicating with people from that industry
Define the following related to vocal characteristics – loudness, inflection, articulation
Loudness - Strongly audible, high in volume
Inflection - Change pitch or tone of voice
Articulation - the process of articulating speech, utter clear distinct syllables
What are some examples of positive outcomes after calling on prospective customers?
purchasing something (depends on the situation), get a phone meeting, get an in-person meeting, ask for certain details – but make sure that you get some sort of follow-up meeting/appointment/call
What is the difference between hearing, passive listening, and active listening?
Hearing – Tuning in and out, mainly paying attention to yourself, often pretending to listen
Passive – Not making an effort to understand, not listening to the deeper meaning, more concerned with content than feeling, speaker may think they are listening
Active – Tried to put them in speakers place, sees things from speakers prospective, reading speakers body language carefully
What is the 80/20 rule regarding listening?
Listen 80% talk 20%
