Professional Selling Exam 1 Flashcards
What is the definition of Selling?
Human driven interaction between and within individuals and organizations.
What is the Buyers profit?
Value
What is the Sellers profit?
Selling price minus the cost of goods and selling costs.
What is the personal value equation?
Benefits received-(selling price + time and effort to purchase)
How can time savings enter into the sales equation?
It can offset higher prices - pay more for service, expertise and convenience.
What are three ways that salespeople can add value in a selling situation?
Encourage two way communication, help to foster trust and commitment, and help provide closure on solutions that provide value.
What are three tasks that client managers do?
Looking for new customers, making sales presentations, and demonstrating products.
What are three benefits of team selling?
Performing well, high job satisfaction and lower turnover intentions.
B2B Industrial Salesperson
Manufacturer—–>salesperson—->business customer
B2B Trade Salesperson
Manufacturer—>Trade salesperson—>distributor—>distributor salesperson—>business customer
B2C Direct Salesperson
Manufacturer—->Direct Salesperson—->Consumer
Order Taking
Routine completion of sales, typically just maintaining customers. Refilling orders.
Order Getting
Selling to new customers
Field Salesperson
Face to face interactions
Inside Salesperson
Communicate with customers by telephone or computer.
Emotional Intelligence
Ability to effectively understand and regulate one’s own emotions and to read and respond to others.
Ethics
the prinicples of a governing behavior of an individual or group
Manipulation
Elimination or reducing a buyer’s choice unfairly
Persuasion
The decision still remains the buyer’s with attempts made to influence it.
Two ways that a salesperson might rationalize unethical decisions.
“All salespeople behave this way”
“this conduct is the price one has to pay for being in business.”
Deception in a sales contexts
Deliberately presenting inaccurate information.
- Telling Half Truths
- Withholiding important information
- Manipulative and unethical
Bribing in a sales context
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
Kickbacks
payments made to buyers based on the amount of orders placed
Backdoor Selling
Salespeople ignore the purchasing agent’s policies and contact people directly involved in the purchasing decision.
Sales Puffery
Opinions, customers can’t rely on
-“This is a top notch product”
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.”
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.
Reciprocity
to companies agree to buy from each other
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
Conspiracy
agreement between competitors before customers are contacted
Collusion
competitors working together while the customer is making a purchase decision)
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
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.
OEM Purchasers
Original Equipment Manufacturers (Buy goods to use in making their products)
ex: Pizza shop buying pepperoni, IBM buying intel chips for laptops