exam 4 Flashcards
informing customers and persuading them to purchase products through personal communication in an exchange situation
personal selling
first step in the personal selling process
Prospecting
name of a person that you are targeting for a sale
lead
type of lead that doesn’t have any money
suspect
type of lead that does have mone
prospect
name 5 different places you can get leads
bird dogs, newspaper leads, directories, old accounts and observation through trade shows and the internet
second step in the personal selling process where you prepare the sales presentation
pre-approach
what should be done in the pre-approach (4 things)
have objective
prospect profile
develop prospect benifit plan
rehearse
what does fab stand for
features, advantages, and benifits
third step in the personal selling process in which the first few minutes are crucial
approach
things to remember in the approach stage (12)
wear business clothing well groomed refrain from smoking and gum chewing good posture keep coat and umbrella outside ask for seat be positive always be polite don't apologize for taking time keep eye contact shake hands firmly pronounce name correctly
the fourth step to the personall selling process
make the presentation
things to include in the making presentation stage of the personal selling process (7)
logical reasoning
personalize relationship through flattery and being honest
build trust
use body language
control presentation
be a diplomat
use Paul Harvey dialogue to build suspense
fifth step to the personal selling process where you ask the prospect if they like the product
trial close
sixth step of the personal selling process where you ask what the prospect doesn’t like about the product and attempt to overcome them by being positive and not treating people with hostility
objections
eight step in the personal selling process where you ask the prospect to by the product and then ask again after 30 seconds
close close
ninth step to the personal selling process
follow up
consists of a wide variety of promotional tools designed to stimulate earlier and or stronger market response
sales promotion
what are the tools to sales promotion
coupons demonstrations frequent user incentives point of purchase displays free samples money refunds premiums cents off offers consumer contest
sales promotion tool that rewards present users, wins back previous users, and encourages purchases in large quantities
coupons
sales promotion tool where it rewards repeat users
frequent user incentives
sales promotion tool that consists of outside signs window displays counter pieces and display racks
point of purchase displays
sales promotion tool that consists of things like a buy one get one promotion
premiums
name the six benefits of Advertising
promote products and organizations stimulate primary and selective demand offset competitive advertising aid salespeople remind people our product still exists reinforce we made the right decision
type of advertising used when introducing a new product with no competition also known as pioneer advertising
primary advertising
new product with competition
selective advertising
selective advertising where you mention the name of the competitor
comparative advertising
selective advertising where you don’t mention the name of the competitor
competitive advertising
what are the steps to creating an advertising campaign
identify and analyze advertising target market define advertising objectives create advertising platform determining advertising appropriation develop media plan create advertising message evaluate advertisement offer
what should define advertising objectives be
clear
precise
measurable
in creating an advertising message what should be emphasized
the most important issues
what should be don when determining advertising appropriation
objective and task example increase sales by 10% by increasing amount of commercials
managers decide advertising amount
arbitrary
executing a n advertising campaign is done through
media firms
printers
artists
photographers
securing editorial space as divorced from paid space in all media red viewed or heard by a company’s customers or prospects for the specific purpose of meeting sales goals
publicity
kind of publicity that is a single page and less than 300 words
news release
king of publicity with a longer manuscript and is specific publication
feature article
kind of publicity with a breif description and photo
caption photo
kind of publicity where a meeting is called to announce an event
press conference
value placed on that which is exchanged
price
why is price important (2)
determines profit
can change quickly
how does price relate to product
price will go up if product is of high quality price will go down if product is of low quality
how does price relate to distribution
high price means exclusive distribution low price means intensive distribution
how does price relate to promotion
high prices are not mentioned in advertising low prices are mentioned in advertising
name other words for price
primium fair wage interest tuition etc.
middle man agrees to do something then it will have a discount
trade discount
buy more and have a lower price
quantity
discount by paying early 2%/10 net 30
cash discount
buying out of season
seasonal discount
price not included in shipping
FOB factory transportation
transportation cost is included in price
FOB destination
same price regardless of distance
uniform geographic pricing
group customers into zones and charge each zone a price
zone pricing
formula for calculating elasticity
change in quantity divided by the change in price times the price of Q1 divided by Q2
how is a price elastic
if the absolute value is less than 1
how is a price inelastic
if the absolute value is greater than one
how is a price unitary
if the absolute value is equal to one
formula for total cost
total fixed cost plus total variable cost
formula for AFC
TFC/Q
formula for AVC
TVC/Q
extra cost to produce one more unit
marginal cost
extra revenue to produce one more unit
marginal revenue
how to you calculate MR and MC
take the derivative of TC and TR
how to you maximize total revenue
set marginal revenue equal to 0
how do you maximize profit
set marginal revenue equal to marginal cost
how do you calculate break-even point
fixed cost divided by price minus average variable cost
how do you calculate break-even point with a fixed profit
fixed cost plus profit divided by price minus average variable cost
new products can also be called
pioneer products
new product charging a high price with no similar products
price skimming
new product and charging less than competitor with similar product
penetrating price
pricing policy for people who have great skill
professional pricing
psychological pricing policy where you make people think that they are paying less by charging prices like 19.99
odd price
psychological pricing policy where you make people think they are getting a good quality because you charged prices like 12.50
even pricing
psychological pricing policy where you make people think that the price doesn’t change with the time when they really just change the size
customary pricing
psychological pricing policy where you make people think the price is high because the product is unique
prestige
psychological pricing policy where retailers charge a certain price for a product line
price lining
Promotional pricing where prices change for one time only
special event
Promotional pricing where the change is at or below the cost of the product
price leader
promotional pricing where you was/is pricing is used
superficial pricing
