Marketing Practice Midterm Flashcards
What are the 4 P’s of the Marketing Mix?
- Product
- Price
- Promotion
- Place
What is the breakeven point?
When sales revenue exceeds total costs.
What are the two things that make up total costs in a breakeven point diagram?
Total Costs = Variable Costs + Fixed Costs
What is the adoption of innovations curve?
A model that describes how different groups of people adopt new innovations over time.
What are the different types of people in the adoption of innovations curve?
- Innovators (2.5%)
- Early Adopters (13.5%)
- Early Majority (34%)
- Late Majority (34%)
- Laggards (16%)
What is marketing orientation?
The approach a company takes toward understanding and meeting customer needs and wants.
What are the 7 habits of a successful business?
- Cultivate Inner Networks
- Customer Centric
- Humble Honesty
- Adaptability
- Opportunity Focused
- Finding a Better Way
- Balanced Lifestyle Management
What is a company vision?
What the company ultimately wants to accomplish.
What is a company mission?
How the company accomplishes their goals.
What are company values?
The commitment a company makes, and the guardrails they put in place, to act both legally and ethically in the pursuit of the vision and mission.
What is customer value?
The perceived benefits that a customer receives from a product or service in relation to the costs they make to obtain it.
Basic Success Requires:
- Understanding the business machine
- Vision, mission statement, strategy, and planning
- Execution
What is Revenue?
The income your business earned from sale of goods and services.
Does revenue account for expenses and costs?
No.
What is Profit?
Revenue minus expenses.
What is Cash Flow
Amount and timing of the payments to and from your business.
What are the three points of the Personal Selling Philosophy?
- Extension of the modern customer oriented marketing approach.
- Become a problem solver and consultant.
- Goal is to have the customer value as a partner.
What are informed salespeople supposed to help a customer decide?
Applying product knowledge to solve your customer’s issues.
What is marketing?
The process of creating and delivering desired goods and services to customers.
What is the “secret” of marketing?
Understanding target customers needs, demands, and wants before competitors do.
What are the 4 features of Consultative Selling?
- Customer is a person to be served, not a prospect to be sold.
- No high-pressure sales presentation.
- Emphasizes information giving, problem solving and negotiation instead of manipulation.
- Emphasizes service after the sale.
What is Personal Selling?
A process of building a relationship.
What is Transactional Selling?
The process of conducting one-off, generally impersonal sales where immediately generating revenue is the main priority.
What are the 6 Steps of the Technical Sales Process?
- Lead Qualification
- Request for Proposal
- Discovery and First Customer Engagement
- Proposal and Demo
- Evaluation
- Negotiations and Close
What are the 3 key components of the Technical Sales Process?
- New Product Intro
- Technical Sales Process
- Ongoing Post Sales Support
What is an RFP?
A formal process by which companies document their requirements for a product or service and solicit competitive bids.
What makes an RFP Compliant?
It includes both technical and content.
What are the 5 Dysfunctions of a Team?
- Absence of Trust among Team Members
- Fear of Conflict
- Lack of Commitment
- An Avoidance of Accountability
- Inattention to Results
What are the 4 Comms Truths?
- Inevitable
- Consequences
- Irreversible
- Full of Error
What is the number 1 mistake in Sales and Marketing?
Communication
What is the definition of Communication?
The development, application, and distribution of content across various media to convey information.
What is the Model of Communication?
Concept -> Encoder -> Coded Message -> Decoder -> Understanding -> Feedback to Encoder.
On the Article “Sales and Marketing’s Number One Mistake” what does Thompson say is the biggest mistake in Sales and Marketing?
Failing to think like the prospect.
What are the 3 main causes of Procrastination?
- Low interest or motivation
- Inexperience with the topic
- Large tasks
What is the purpose of a To-Do List?
To break the project into smaller tasks, allowing for focus on the overall benefits instead of the magnitude of the task.
What is important about Delegating Work?
Delegate the result, not the process.
When handling paperwork, what are the steps to the RAFT system?
- Refer: Give it to someone else.
- Act: Take action yourself.
- File: Save it for reference.
- Trash: Get rid of it.
What are the 7 questions of knowing your audience from the audience needs map?
- What are they like?
- Why are they here?
- What keeps them up at night?
- How can you solve their problem?
- What do you want them to do?
- How can you best reach them?
- How might they resist?
What are the 3 important elements of a technical presentation?
- Organization
- Visual Aids
- Delivery and Style
What is the meaning of a Verifiable Requirement?
A requirement that can be objectively verified by inspection, analysis, test, or demonstration.
What is the meaning of an Attainable Requirement?
The requirement is within budget and schedule, as well as technically feasible.
What is the downfall of using Ambiguous Terms in Requirement statements?
They lead to budget and schedule problems.
What are the 2 main characteristics of an Unverifiable Requirement?
- Subjective
- Unquantifiable
Is it more important to state a Need or an Implementation?
Need - May force developer to use solution that doesn’t meet the need.
What is the importance of using “Shall” in formal requirements?
It indicates that a requirement MUST be implemented (not optional).
Is using “Shall” in an RFP contractually binding?
Yes
What are common shortcomings in RFP Requirements?
- Missing requirements
- Over-specifying
- Overly tight tolerances
What are the 5 Levels of Listening?
- Ignoring
- Pretend Listening
- Selective Listening
- Attentive Listening
- Empathetic Listening
What is the purpose of the CARE acronym?
To improve listening skills?
What does the acronym CARE stand for?
- Concentrate
- Acknowledge
- Restate
- Empathize
If your ethics question is illegal what should you do?
STOP
If your ethics question doesn’t maximize shareholder value what should you do?
Ask if it would be ethical not to take the action.
If it’s ethical not to take an action what should you do?
Continue the project and disclose its impact on shareholders.
What does the Legality/Policy Test say?
Would this choice violate a law or policy of my employer?
What does the Harm Test say?
Do the benefits outweigh the harms?
What does the Reversibility Test say?
Would I think this choice were good if I traded places with someone else?
What does the Colleague Test say?
What would professional colleagues say?
What does the Publicity Test say?
How would this choice look on the front page of a newspaper?
What does the Common Practice Test say?
What if everyone behaved in this way?
What is the purpose of the FCPA?
Foreign Corrupt Practices Act - Targeted at prohibiting bribery/corruption outside the US.
What is the purpose of ITAR?
International Traffic in Arms Regulations - Regulate export of defense articles and services.
Is looking at others work or using it without permission theft?
Yes
Why is it essential to mark one’s own documents?
It’s a way to protect it from being used by others.
What are the 6 steps in the Sales Territory Design Process?
- Select Basic Control Unit
- Analyze Workload
- Determine Basic Territories
- Assign to Territories
- Customer Contact Plan
- Evaluate and Revise if Needed
What are some examples of a Basic Control Unit?
- Geographic Areas
- Technologies/Products
- Major Accounts
- A combination of two or more factors
What are the 3 main influences on workload for a salesperson?
- Nature of the job
- Intensity of market coverage
- Type of products sold
What is the difference between the Breakdown Approach and the Equalized Workload Approach?
- Breakdown: Starts with total sales goal and breaks it down into the number of salespeople needed.
- Equalized Workload: Determines the number of salespeople based on the total workload.
What is the formula for the Breakdown Approach?
Number of Salespeople = Forecasted Sales Volume / Average Sales per Salesperson
What is the formula for the Equalized Workload Approach?
Number of Salespeople = Total Workload / Work Capacity per Salesperson
