Professional Selling Exam 1 Flashcards
1
Q
What is the definition of Selling?
A
Human driven interaction between and within individuals and organizations.
2
Q
What is the Buyers profit?
A
Value
3
Q
What is the Sellers profit?
A
Selling price minus the cost of goods and selling costs.
4
Q
What is the personal value equation?
A
Benefits received-(selling price + time and effort to purchase)
5
Q
How can time savings enter into the sales equation?
A
It can offset higher prices - pay more for service, expertise and convenience.
6
Q
What are three ways that salespeople can add value in a selling situation?
A
Encourage two way communication, help to foster trust and commitment, and help provide closure on solutions that provide value.
7
Q
What are three tasks that client managers do?
A
Looking for new customers, making sales presentations, and demonstrating products.
8
Q
What are three benefits of team selling?
A
Performing well, high job satisfaction and lower turnover intentions.
9
Q
B2B Industrial Salesperson
A
Manufacturer—–>salesperson—->business customer
10
Q
B2B Trade Salesperson
A
Manufacturer—>Trade salesperson—>distributor—>distributor salesperson—>business customer
11
Q
B2C Direct Salesperson
A
Manufacturer—->Direct Salesperson—->Consumer
12
Q
Order Taking
A
Routine completion of sales, typically just maintaining customers. Refilling orders.
13
Q
Order Getting
A
Selling to new customers
14
Q
Field Salesperson
A
Face to face interactions
15
Q
Inside Salesperson
A
Communicate with customers by telephone or computer.
16
Q
Emotional Intelligence
A
Ability to effectively understand and regulate one’s own emotions and to read and respond to others.
17
Q
Ethics
A
the prinicples of a governing behavior of an individual or group
18
Q
Manipulation
A
Elimination or reducing a buyer’s choice unfairly
19
Q
Persuasion
A
The decision still remains the buyer’s with attempts made to influence it.
20
Q
Two ways that a salesperson might rationalize unethical decisions.
A
“All salespeople behave this way”
“this conduct is the price one has to pay for being in business.”
21
Q
Deception in a sales contexts
A
Deliberately presenting inaccurate information.
- Telling Half Truths
- Withholiding important information
- Manipulative and unethical
22
Q
Bribing in a sales context
A
Payments made to buyers to influence their purchase decisions.
- Check your motives for gift giving
- Make sure the customer understands no strings attached
- Make sure the gift does not violate either companie’s policies
23
Q
Kickbacks
A
payments made to buyers based on the amount of orders placed
24
Q
Backdoor Selling
A
Salespeople ignore the purchasing agent’s policies and contact people directly involved in the purchasing decision.
25
Sales Puffery
Opinions, customers can't rely on
| -"This is a top notch product"
26
Misrepresentation
Statemetns about the inherent capabilities, products or services can be treated as statements of fact and become warranties.
-“Feel free to prescribe this drug to your patients, doctor. It's non-addicting.”
27
Business Defamation
unfair or untrue statements about competitor, products or salespeople
occurs when a salesperson makes unfair or untrue statements to customers about a competitor, its products or its salespeople
statements are illegal when they damage the competitor's reputation or the reputation of its salespeople.
28
Reciprocity
to companies agree to buy from each other
29
Tying Agreements
required to purchase one product in order to get another---illegal, UNLESS they can show that the two products must be used together
30
Conspiracy
agreement between competitors before customers are contacted
31
Collusion
competitors working together while the customer is making a purchase decision)
32
What is the difference between lubrication payments and subordination?
Lubrication payment involves a small sum of money or a small gift given to a low ranking official.
Subordination involves larger payments to higher ranked officials
33
Producers
Buy components to manufacture their own products to sell (products and services to support the manufacturing operation)
ex: A grain company purchasing wheat, oats, etc.
34
OEM Purchasers
Original Equipment Manufacturers (Buy goods to use in making their products)
ex: Pizza shop buying pepperoni, IBM buying intel chips for laptops
35
End Users
Producers who buy goods and services to support their own production
ex: Trucks for construction, paper and pencils for an office
36
Resellers
Buy finished products with the intention to resell them to businesses and consumers. **They must consider profit margin (how much the reseller makes on the sale), Turnover (How quickly the item sells or how much effort it took) and efforts to maximize
37
Government Agencies:
Federal, local and state (lowest bidder wins the contract)
38
Institutions
Universities, churches hospitals (public and private institutions have well defined purchasing procedures
39
Consumers
everyday people who buy things
40
Why is selling to an organization more complex than selling to a consumer?
```
Evaluations & Negotiations
Number of people needed to sign off
Time to close
Increasing complexity
Availability of buyers
```
41
What are the eight steps in the organizational buying process?
```
Recognition of a need
Definition of product type needed
Development of detailed specifications
Search for qualified suppliers
Acquisition and analysis of proposals
Evaluation of proposals and selection of a supplier
Placing and receiving the order
Evaluation of product performance
```
42
What is creeping commitment, and how can it aid the salesperson in the sales process?
Creeping commitment: When a customer becomes increasingly committed to a course of action while going through the steps in the buying process.
43
New task buying
When purchasing for the first time. This is usually the case with equipment. Customer generally goes through all 8 steps
44
Straight rebuys
A customer buys the same product from the original source. Also called filling, this occurs when inventory is low. Customers are familiar with this item and have a long term relationship with the salesperson so it is hard for a new salesperson to break in
45
Modified Rebuys
The customer has purchased the product in the past but is looking for new information. Builds on straight rebuy, meaning the customer might want more information to tweak an order, but doesn’t need to go through the 8 steps.
46
Initiator
Starts the process, can come from each of the other sources
47
Influencers
Directly/indirectly provide influence during the buying process
48
Gatekeepers
Control the flow of information; may limit alternatives from being considered
49
Users
Often do not make purchase decision, may still have some influence
50
Deciders
Makes the final choice
51
What is a ‘lost for good’ customer and why can this be a goal for a salesperson?
Lost for good: Minimizing the chances of a poor decision by converting buying decisions into straight rebuys → Decision becomes routine
This is a goal for salespeople because they can gain a lifetime customer.
52
What is the communication process that we discussed in class? What is encoding and decoding?
Sales is Two-way communication between the seller and the buyer
Encoding: Translating thoughts into words (the message)
Decoding: How the listener interprets the message
53
What are three problems that can arise in a communication process?
The original message is unclear
An emotional filter distorts the info (Bias, judgement, anger)
The message is not heard or wrongly interpreted
54
What are three things that ensure that communication is successful?
The sender states the message clearly and plainly
The message is properly decoded or interpreted
The receiver pays attention and is not distracted
55
When is it appropriate to use industry terms/jargon?
As a general rule, avoid the use of slang, except in very informal settings jargon-- use only when the audience will understand
56
Define the following related to vocal characteristics – loudness, inflection, articulation
Loudness: volume
Inflection: change of pitch
Articulation: producing clear speech sounds
57
What are some examples of positive outcomes after calling on prospective customers?
Purchasing something, getting a second meeting
58
What is the difference between hearing, passive listening, and active listening?
Hearing: Tuning in and tuning out, not really paying attention
Passive listening: not making the effort to understand what the speaker is saying
Active listening: Avoids all distractions, actively tries to put themselves in the speaker’s shoes, reads non verbal language
59
What is the 80/20 rule regarding listening?
```
80/20: listen 80%, talk 20% - active listening
Think while listening
Don’t interrupt
Enjoy the silence
Select one or more of the following:
Repeating information word for word
Restating or rephrasing information
Ask clarifying questions
Summarizing the conversation
Be silent
```
60
What are three examples of positive non-verbal communication signals?
Uncrossed arms and legs
Leaning forward
Nodding
61
What are three examples of negative non-verbal communication signals?
Crossed arms or legs
Leaning backward or turned away from yo
Shaking head
62
When it comes to appearance, what are three of the five principles that we discussed in class?
Consider your geography (temperature, norms)
Consider your customers (their appearances & their expectations)
Consider your corporate culture (norms for your industry)
Consider your aspirations (dress one level above your position)
Consider your own personal style (as you develop yourself, define you)
63
Fast Response Times
Face-to-face, telephone
64
Slow Response Times
Voice mail, fax, email
65
Salesperson can hear buyer’s verbal communications
Face-to-face, telephone
66
Salesperson can read buyer’s verbal communications
Face-to-face
67
Method that allows for the highest quantity of information that the buyer can send
Face-to-face
68
Method that allows for the highest quantity of information that the seller can send
Face-to-face
69
What is an example of a commitment to action that you can leave on a voicemail? An email?
Commitment to action: the ask and the initiative for follow through
Voicemail -- will follow up with you soon/shortly ???
Email -- I look forward to hearing from you/working with you soon
70
What are the main characteristics of a memorized presentation? An outlined presentation? A customized presentation?
Memorized
-Presents same selling points too all the customers
-Provides complete and accurate information
-Limited effectiveness
-No opportunity for the salesperson to tailor the presentation
Outlined
-Prearranged presentation that includes:
-Standard introduction
-Standard answers to common objections
-Standard method for getting the customer to place an order
-Effective because it is well organized
Customized
-Based on a detailed analysis of the customer’s needs
-Use the communication principles to:
-Discover the customer's needs and problems
-Propose the most effective solution
-Adapts to customer’s needs
71
What is the best presentation method for new sales reps?
Outlined presentations
72
Adaptive Selling
Changing the sale behavior according to the selling situation
Illustrated by customized presentation
Emphasizes the importance of satisfying customer needs
Being adaptable:
Increases buyer trust and commitment
Results in higher sales performance
Adapt for: knowledge, presentation style, feelings/behavior, age/belief/culture differences, situational factors
73
Knowledge Required For Adaptive Selling
Product and company knowledge
Information about products, services, company, and competitors
Knowledge about sales situations and customers
Categories of customer types or types of sales situations are developed to:
Reduce the complexity of selling
Free up the mental capacity to think more creatively
May be able to generalize some of your customers, creating 3-4 general presentations (e.g., current customer, former customer, unhappy but still talking, loves your competitor-which one?)
Practice and experience = success!
74
Performance feedback
provides information about whether the salesperson achieved his or her goal
75
Diagnostic feedback
provides information about what the salesperson is doing right and wrong instead of just whether he or she made a sale
76
We discussed two dimensions of social style. List and define them.
Assertiveness: degree to which people have opinions about issues and publicly make their positions clear to others
Responsiveness: based on how emotional people tend to get in social situations
77
What are the four categories of social styles we discussed in class? What are key characteristics of each? How would you sell to each social style?
Drivers, Expressives, Amiables, and Analyticals
78
Drivers
Have a great desire to get ahead in their companies and careers
Swift and efficient decision makers
Base their decisions on facts
Take risks
Look at several alternatives before making a decision
79
Expressives
Focus on the future
Direct their time and effort toward achieving their vision
Act quickly
Base their decisions on their personal opinions and the opinions of others
Impatient and change their minds easily
Often associated with sales professionals
80
Amiables
Give importance to close relationships and cooperation
Make decisions slowly
Build a consensus among people involved in the decision
Avoid risks
Change their opinions reluctantly
Associated with new sales professionals
81
Analyticals
Suspicious of power and personal relationships
Make decisions slowly in a deliberate and disciplined manner
Like facts, principles, and logic
Strongly motivated to make the right decision
82
How do you sell to Drivers?
Direct, businesslike, organized presentation with quick action and follow-up
Emphasize the effects of a purchase decision on profits
83
How do you sell to Expressives?
Demonstrate how a product will help to achieve personal status and recognition
Use product demonstrations and creative graphics
Use testimonials from well-known firms and people
Put them in the role of innovator, the first person to use a new product
84
How do you sell to Amiables?
Build personal relationships
Give guarantees about a product’s performance
Follow through on commitments
Stress the product’s benefits in terms of its effects on the satisfaction
85
How do you sell to Analyticals?
Use solid, tangible evidence
| Use sales presentations that recognize their technical expertise and emphasize long-term benefits
86
What are two things that someone who is highly assertive can adjust to reduce their assertiveness in a sales encounter?
```
Ask for customer opinion
Acknowledge merits of customer’s viewpoint
Listen without interruption
Be more deliberate; don’t rush
Let customer direct flow of conversation
```
87
What are two things that someone who is highly responsive can adjust to reduce their responsiveness in a sales encounter?
Become businesslike, talk less, restrain enthusiasm, make decisions based on facts, stop and think
