Test 3

Question 1

When Should Personal Selling be Used?

Answer 1

Technical products, difficult to use. Something considered high risk like certain types of investments.

Question 2

Examples of Jobs in Sales

Sales creep real kolas today

Answer 2

Sales managers, consultants, representatives, key account managers, technical specialist

Question 3

The Seven Steps of Personal Selling

PPAPHGF
Pansy people annoy people having good fun.

Answer 3

1.Prospecting
2.Pre-Approach
3.Approach
4.Presentation/Sales Pitch
5.Handling Objections
6.Gaining commitments
7.Follow Up

Question 4

What is SPIN

Answer 4

Situation - What is going on
Problem - What are the challenges
Implementation - What effect does this have

Needs Payoff - How can this help you/customer

Question 5

How does Technology Play a Role in Personal Selling?

Answer 5

CRM, Analytics, AI, Social Selling (networks)

Question 6

Key Components on Sales Force Management

The Force

Answer 6

Size, area, generalist vs. specialist, compensation and incentives, recruitment (selection and retention), motivation (training and performance appraisal)

Question 7

What is special about Walmart Retail link?

Answer 7

Connects suppliers and manufacturers in real time to Walmart inventory levels and sales.

Question 8

Push vs Pull Strategy

Answer 8

Push - manufacture, then try to sell.
Pull - Only make or buy when need by a customer

Question 9

Major categories of Inventory costs

Oh opposing cars. OOC

Answer 9

order costs (including freight inwards), opportunity (stock out costs), carrying costs (financing, staff, storage space including insurance, heating and colling)

Question 10

Key Warehouse Functions

RP PS

Answer 10

Receiving, putting away, picking, and shipping

Question 11

Major transportations

Answer 11

Water - Inexpensive, slow
Air - Fast, slow
Road - Cheapest, accident is more likely
Rail - can carry a lot, huge investment
Cyberspace - Data protection, high cost
Pipeline - carry alot, not environmentally friendly

Question 12

How does ISO14001 effect supply chain

Answer 12

Products and transportation must meet environmental standards for recycling, energy efficiency, hazardous waste, energy efficient transportation

Question 13

What are the objectives of pricing?

Answer 13

Maximize the profit (highest price and volume)

Question 14

Price Elasticity

Answer 14

Price sensitivity. Elastic - demand changes. Inelastic - demand barely changes.

Question 15

Break even analysis, how does this impact pricing?

Answer 15

How many units must be sold before a business makes a profit. (SP-vc)(*units-FC) = NP

Question 16

Underpricing

Answer 16

Pricing less than what a consumer is willing to pay

Question 17

Context of rising prices. What do we mean by unbundling and shrinkflation?

Answer 17

Unbundling - separating out product and services. Customer only pays for what they want.
Shrinkflation - Reducing the SIZE of the product, while only increasing the price nominally.

Question 18

Pricing Strategies

MOP LSP PS

Answer 18

Markup Price - Cost plus
Odd Even - Selling at 1.95 instead of 2.00
Prestige - Selling for a high price as a sign of exclusivity
Loss Leader - Selling product at a loss, to bring in more business and make profits on other products
Seasonal Discounts - Selling winter or summer products at discount at end of the season
Price Bundling - Adding several products and or services together
Penetration - Initial low price to get into market
Skimming - Charging higher initial price when product is new and supply is limited and customers willing to pay a premium.

Question 19

Dynamic pricing, predatory pricing, price fixing, price discrimination

Answer 19

DP - Prices change during the day, as demand changes
PP - Initial low pricing to put other out, then raise prices
PF - Colluding to set prices in a region or market
PD - Different prices for different consumers

Question 20

Black vs Grey Market

Answer 20

Black - Trading is illegal
Grey - Have not used authorized import agents

Question 21

Role of WTO and NAFTA and the key issues

Answer 21

WTO - regulates trade, preventing excessive tariffs ensuring free trade, prevent dumping.
NAFTA - North American Free Trade Agreement regulates tariffs between US, Canada, and Mexico.

Question 22

What is the difference between depth and breath, business versus product franchises, corporate vs voluntary chains?

Answer 22

Breath - Variety of product Depth - Number of different brands
BF - How the bus or product sell the product Exxon - gasoline
Corporate - all owned by one company
Cooperative - work together
Voluntary - Can choose to use common suppliers product.

Question 23

Examples of Retailers

Answer 23

Fulline Discount: Walmart
Specialty Discount: Dicks
Supermarket: Hannaford’s
Warehouse Club: Sams
Convenience Store: Pop type store
Departmental: Macys
Off Price: TJ Maxx
Closeout Chain: Mardens, Big lots
Online: Amazon
TV: HSN
Automated Vendor: Best Buy at airports

Question 24

Three common Store locations

Answer 24

CBD, mall shopping center, stand alone, (airport, college)

Question 25

Three common retail outlet layouts

Answer 25

Grid, spine, free flow, loop.

Question 26

What goes into atmosphere?

Answer 26

Music, lighting, colors, models, smells, displays.

Question 27

Geofence, Omni channel, augmented reality

Answer 27

GF - Mobile device enters an area, that company can respond by sending you targeted specials
OC - Online and brick and mortar
AR - How their product would look in your home

Question 28

What value do wholesalers create?

Answer 28

Risk take, buy in bulk (bulk breaking), do shipping, get discounts, financing, training and advice.