Exam 2 Flashcards
advertising designed to reach all users of the product, whether consumers or industrial buyers.
national advertising
used by a retailer to reach customers within its geographic trading area
retail advertising
advertising the retailer conducts with the cost paid for by the manufacturer or shared by the manufacturer and retailer
co-op advertising
undertaken by the manufacturer and directed toward the wholesaler or retailer.
trade advertising
aimed at individuals and organizations that purchase products used in manufacturing other products
industrial advertising
mailed directly to the consumer or industrial user; it is an effective method of exposing these users to a product or it reminds them that the product is available to meet a specific need
direct-mail advertising
includes free samples, coupons, contests, and demonstrations to consumers
consumer sales promotion
encourages resellers to purchase and aggressively sell a manufacturer’s products by offering incentives like sales contests, displays, special purchase prices, and free merchandise (for example, buy 10 cases of a product and get 1 case free).
trade sales promotion
allow a product to be seen easily and purchased.
point-of-purchase displays
refers to the physical placement of the product within the retailer’s store.
shelf positioning
the number of individual products placed beside each other on the shelf.
shelf facings
an article of merchandise offered as an incentive to the user to take some action
premium
allows salespeople to view and manipulate customer and/or prospect information on an electronic map.
geographic information system
can abbreviate the time it takes to accomplish this task to no more than a minute or two, the time it takes to execute a few keystrokes.
word processing system
the standard price charged to customers
list price
the price after allowance for all discounts
net price
the price based on geographic location or zone of customers
zone price
means the buyer pays transporta-
tion charges on the goods—the title to goods passes to the customer when they
are loaded on shipping vehicles.
FOB shipping point
the seller pays all shipping costs
FOB destination
One-time reduction in price
noncumulative quantity discounts
discounts the customer receives for buying a certain amount of a product over a stated period, such as one year
cumulative quantity discounts
are earned by buyers who pay bills within a stated period
cash discounts
he manufacturer may reduce prices to channel members (middlemen) to compensate them for the services they perform.
trade discounts
the dollar amount added to the product cost to determine its selling price.
markup
the money available to cover the costs of marketing the product, operating the business, and profit.
gross profit
the money remaining after the costs of marketing and operating the business are paid.
net profit
illustrates how all leads and prospects are considered and filtered out as they are subjected to the three mad questions
sales prospecting funnel
all salespeople lose X percent of sales or customers per year, this is known as…
leaking bucket customer concept
based of the law of averages
cold canvass prospecting methods
when a customer refers the salesperson to someone she knows
endless chain referral method
a person or organization recommended to you by someone who feels that this person or organization could benefit from you or your product
referral
customers whose salesperson has left the company
orphaned customers
involves finding and cultivating people in a community or territory who are willing to cooperate in helping to find prospects
center of influence method
to contact a large number of prospects across a vast area is far less costly than use of a canvassing sales force, though usually more costly than mailouts.5
telephone prospecting
is a marketing com- munication system using telecommunication technology and trained personnel to conduct planned, measurable marketing activities directed at targeted groups of consumers.
telemarketing
A salesperson often can find prospects by constantly watching what is happening in the sales area
observation method
group of names gathered from various sources
prospect pool
people and organizations you know nothing or very little about
leads
people or organizations you frequently know very little about other what you learned from the referral
referrals
provides guidelines for a salesperson to ask for referrals in four commonly faced situations,
referral cycle
Salespeople must sell the product, plus sell the prospect on providing referrals.
parallel referral sale
not wanting to contact a prospect or customer
call reluctance
a method of achieving an end
a plan
refers to programs, goals, and problems of great importance to customers
strategy
refers to planning the sales call on a customer or prospect
preapproach
4 components of sales call planning
determining the sales call objective; (2) developing or reviewing the customer profile; (3) developing a customer benefit plan; and (4) developing the individual sales presentation based on the sales call objective, customer profile, and customer benefit plan.
contains the nucleus of the information used in your sales presentation; thus it should be developed to the best of your ability.
customer benefit plan
prospects enter this stage if they listen and enter into a discussion with you
interset
Using the FAB formula (Chapter 3), strive to bring prospects from lukewarm interest to a boiling what
desire
in this step strive to develop a strong belief that the product is best suited to prospects’ specific needs.
conviction
Once the prospect is convinced, plan the most appropriate method of asking the prospect to make a blank
purchase
devoted to a discussion of the buyer’s needs
need-development
the salesperson begins to take control of the conversation by restating the prospect’s needs to clarify the situation
need awareness
salesperson shows how the product will satisfy mutual needs
need fulfillment
