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Marketing > Sales > Flashcards

Sales Flashcards

1
Q

What is Perceived Value?

A

Value is the customer’s perception of the balance between benefits received from a product or service and the sacrifices made to experience those benefits.

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2
Q

How do customers reduce perceived risk?

A
  • Delay purchase
  • Seek word-of-mouth endorsement
  • Negotiate service contracts
  • Seek additional information from advertising copy
  • Buy known brands
  • Deal with reputable suppliers
  • Seek performance guarantees
  • Take out insurance
  • Demand pre-purchase trial
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3
Q

What is a Value proposition?

A

A value proposition is the explicit or implicit promise made by a company to its customers that it will deliver a particular bundle of value-creating benefits.

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4
Q

Which value delivery strategies do you know?

A
  • Operational excellence
  • Product leadership
  • Customer intimacy
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5
Q

What is mass customization?

A

Mass customisation is the use of flexible processes and organizational structures to create varied and even individually tailored value propositions, with neither a cost nor a lead-time penalty.

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6
Q

Which key customer acquisition questions do you know?

A
  1. Which prospects (potential new customers) will be targeted?
  2. How will these prospects be approached?
  3. What offer will be made?
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7
Q

Which Sources of B2B leads do you know?

A
  • Satisfied customers (Refferals)
  • Networking (personal contacts)
  • Promotional activities (Exhibitions, etc)
  • Web-sites
  • Publicity
  • Lists and directories
  • Tele-marketing
  • E-mail
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8
Q

What are key questions in B2B prospecting?

A
  • Does the lead have a need for my company’s products?
  • Does the lead have the ability to pay?
  • Is the lead authorised to buy?
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9
Q

What KPI’s do you know for customer acquisition programs?

A
  • Number of customers acquired
  • Cost per acquired customer
  • Value of the acquired customer
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10
Q

Should a sales force be specialized?

A

Sales specialization improves performance.

However:

  • Specialization is expensive
    • Must produce results that are greater than investment
  • Sales specialization is more difficult to manage
    • Requires greater oversight to align with firm’s strategy
  • Changing sales assignments are challenging:
    • Must modify job content and account assignments
    • This requires substantial planning and investment
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11
Q

When do manufactorers mainly use indepent sales agent in addition tho their own salesforce?

A

Common for manufacturers is to use sales agents when entering new territories with low or unknown sales volumes.

  • Selling costs (commissions) incurred only when product or service is sold
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12
Q

What are the advantages of using an independent sales agent?

A

Advantages of using an independent sales agent:

  • An “in-place” or existing sales force
  • Established buyer relationships
  • Little (or no) fixed costs
  • Experienced sales personnel
  • Lower costs per sales call
  • Long-term stability in the territory
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13
Q

What are the disadvantages of using an independent sales agent?

A

Disadvantages of using an independent sales agent:

  • Seller may not receive equal time for their products
  • Agents blamed for shifting sales call focus to another product line when buyer’s need is not easily identified
  • Agents criticized for not opening new accounts, not following up on leads, representing too many mfgs, and communicating poorly with the firms they represent
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14
Q

What may be sources of conflict Sources of conflict between firm and selling agent?

A
  • Goal Differgence
  • Domain Dissension (who owns a particulair domain, like territory served)
  • Reality Perceptions (one party feel sligted when the other party believes it acted in good faith)
  • Abuse of Power
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15
Q

When should a company has it’s own salesforce?

A
  • When it’s important to control sales effort, product or related technology is new, buyers need high level of service
  • Company exerts greater control over sales force efforts
  • Greater control over who is hired
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16
Q

When should a company hire indepent sales agents?

A
  • When potential sales revenue is low in a territory
  • When revenue will take years to become substantial
  • When qualified sales agents already operate in the area
  • When it’s not feasible for company sales force to cover entire market (e.g., National Semiconductor, Advanced Micro Systems)
17
Q

What can be reasons for not reaching sales goals?

A

Internal Factors

  • Flawed sales projections based on limited market research
  • Changes in marketing mix variablesresulting in inferior products or services
  • Increase in cost of supplies passed on to buyers via higher product prices
  • Promotional campaigns don’t produce projected results
  • Delays or other problems with distributionof products

External Factors

  • New competitors and competing products entering marketplace
  • Environmental factors affect customer demand and cause customers to postpone or cancel their purchases
  • Change in laws and regulations preventing or restricting use of products and services or making them more expensive
  • Changes in the way firms do business,for example, as a result of new technology
18
Q

What is CRM?

A

In general, Customer Relationship Management is the development and nurturing of long-term customer relationships to produce:

  • greater customer loyalty
  • more customer focused employees
19
Q

What are the main objectives of CRM?

A
  • The integrated view of customers
    • Identify potential customers
    • Understand needs
    • Decrease attrition
    • Increase cross usage
    • Increase usage of more prestigious items
    • Increase satisfaction
    • Improve campaign management
    • Increase referrals
    • Win back lost customers
    • Move customers up relationship hierarchy
    • Integrate marketing and sales throughout channels
20
Q

What are the four types of CRM

A
  • Strategic CRM aims to win and keep profitable customer
  • Operational CRM focuses on the automation of sales, marketing and service processes
  • Analytical CRM focuses on the intelligient data mining for strategical and tactical purposes
  • Collaborative CRM applies technology across the organization in order to optimise company, partner and customer value
21
Q

How can you increase customer lifetime values?

A

CLV can be increased through:

  • Increasing the marging
  • increasing the customer retention rate
  • reducing discounts

Note: Increasing customer retention rate has greater leverage on customer lifetime value than reducing the discount rate.

22
Q

How can you improve your CLV?

A

current customers:

  • improve customer retention
  • grow customer margins
  • and delete

potential customers:

  • retrieve
  • acquire
  • and ignore
23
Q

What are the major phases of a CRM project?

A
  1. Develop the CRM strategy
  2. Build the CRM project foundations
  3. Needs specification and partner selection
  4. Project implementation
  5. Performance evaluation
24
Q

What is a “Prospect”?

A

A prospect (qualified lead) has:

  • a need for my product
  • the ability to pay
  • the authority to buy
25
Q

What different Sales Closing methods do you know?

A
  • Assumptive Close: Salesperson assumes to be able to take the order and tries „it“
  • **Action Close: **Involves customer in the conversation on close
  • Choice Close: Lets customer choose „details“ (often used) with alternative question
  • Ask for the Order: Close is a good offer, isn‘t it? Or: Would you like to try first … (Do you buy?)

Marketing (5 decks)

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