Marketing 3410/ Sales: Exam 1

Personal selling

interpersonal interactions between buyers and sellers to develop and enhance customer relationships

Trust-based relationship selling

focuses on solving customer problems, providing opportunities and adding value to customers business over extended period of time

Initiate, develop and enhance customer relationships

Customer value

customers perception of what they have to exchange to obtain a good or service

determined by questions such as: "Is the salesperson dependable?"

sales dialogue

conversations between buyers and sellers- to determine if prospect is worth your time and to prepare them for what to expect when doing business

evolution of professional selling

increases focus on *sales professionalism:* truthful, non-manipulative tactics to satisfy long-term needs

qualities of sales profession

1. large knowledge base

2. make contribution to society: diffusion of innovation, economy

3. defined culture and organization of colleagues

4. unique set of professional skills

ways sales profession could improve

1. salespeople need the decision making

2. uniform ethical code

contributions of personal selling

1. salespeople stimulate economy

2. diffusion of innovation: of new products

3. generate revenue and provide feedback to company

4. build and maintain long term relationships

5 approaches of selling

1. Adaptive selling: ability to tailor sales approach to various customers

2. Stimulus-response selling: ex: continued affirmation- series of questions arranged to make the customer say yes until he/ she says yes to the sales pitch

3. Mental States selling/ formula approach: A.I.D.A.

Attention- take control

Interest- during intro

Desire- during intro or pitch

Action- they either say yes or no

4. Need satisfaction selling: asking customers' needs

5. Problem-solving formula: goes beyond identifying needs to develop solutions. "Pain point" is asking questions till they state what their pain point is of where they really need help

AIDA

Attention, Interest, Desire, Action

consultative selling

helping customers attain *strategic goals* by consulting customers' needs and salesperson expertise. Ex: doctor asks your problems before prescribing you medication

strategic orchestrator

A role the salesperson plays in consultative selling where he or she arranges the use of the sales organization's resources in an effort to satisfy the customer.

business consultant

A role the salesperson plays in consultative selling where he or she uses internal and external sources to become an expert on the customer's business. Involves educating customers on the sales firm's products and how these products compare with competitive offerings.

sales support sales position

people responsible for informing buyer - they do not personally sell

- missionary: inform to convert prospects into customers

- detailer: in the pharmaceutical industry, work at physician level to inform

- technical support: technical specialist

new business sales position

order-getters/ "hunters"

focus on new business- either 1-time sale or turn over to account manager

don't personally grow business much

combination sales job

when salesperson performs multiple types of sales jobs within the framework of a single position

existing business sales business

order-getters, route salespeople, "farmers"

- maintain current customers/ replenish stock

inside sales

- no prospecting

- non-retail salespeople who remain in employers business while dealing with customers (inbound marketing)

direct-to-consumer sales/ B2B

outside sales

prospect for new business then maintain and grow those relationships

Definitions of:

· Account Executive

· Factory rep

· Agent

· New Business Development (NBD)

· Business Development Rep (BDR)

· Account Executive: salespeople

· Factory rep/ manufacture rep: sell to retailers or directly to end-users

· Agent

· New Business Development (NBD): prospect then turnover to salespeople

· Business Development Rep (BDR)

Trust

amount of integrity buyer sees in seller

-openness

-dependability

-confidentiality

-reliability

-fairness

long-term relationship

mutually beneficial

factors/ questions that gain buyers trust

expertise: of product; are you asking the right questions

candor: honest and fair balanced presentation?

customer orientation: do they care about partnership?

Compatibility

topics covered during initial sales training

-industry history

-company history and policy

-product and market info

-knowledge about competitors

-selling techniques

-how to initiate, develop and enhance customer relationships

Service knowledge salespeople must know

delivery, inventory, financial information, installation, warranties and unique aspects

unethical behavior

Deceptive practices:

- exaggeration

- withholding info

Non-customer orientated behavior

- pushy

- hard sell

- fast-talking

Illegal activities

- defraud

- misuse company assets

3 ways salespeople can create product liabilities for companies

- express warranty: salesperson not intending to give warranty

- misrepresentation: false claims

- negligence

consumer market

consumers purchasing goods and services for their own consumption

business market

Firms, institutions, and governments acquire goods and services for their own use or for resale to their customers

characteristics of business markets

-Concentrated demand: tends to be many businesses in a geographical area

-Derived demand: demand for business products is based off of consumer demand. Ex: car manufacturing company requires larger purchase of steel when more cars are being purchased

-Higher levels of demand fluctuation

-Purchasing professionals: usually have a designated buyer

-Multiple buying influences: usually many people have to decide to buy a product, not just purchasing professional

-Collaborative buyer-seller relationships: buyer relying on seller to stay stocked

buying process

1. need recognition

2. determination and description of the characteristics

and quality

3. prospect potential sources

4. acquisition and analysis of proposals

5. evaluation of proposals

6. selection of order routine

7. performance feedback and evaluation

potential sources for identifying potential suppliers

- trade associations

-trade shows

- product source directory

- trade publication

- ads

- social media

- word of mouth

multiattribute model

a procedure for evaluating suppliers and products that incorporates weighted averages across desired characteristics

straight rebuy

ex: Mizzou ordering more ink from usual company

- often long-term agreement

- usually using "Electronic Data Interchange (EDI): transactional exchanges automated with internet and web-enabled programs

modified rebuy

ex: Mizzou ordering chairs again but now w wheels

typically due to result of changing conditions

new task

first time buy

- usually multiple members involved

- highest risk

Communication Styles Matrix

*Relationship Oriented-*

Amiables:

- Easy going, cooperative and friendly

- No desire to control- avoid conflict

- Need time to make decision- no regard of time- no risk

- Easy to meet w- will also meet w competitors

- ex: Papa

Expressives:

- animated and highly communicative extrovert

- competitive but value relationships

- Attack when confronted- creative and take risk

- Open-minded and changeable

- Fast decision making and prefer big picture

*Task Oriented-*

Drivers:

- Hard and detached from relationships

- Competitive in relationships, will run over others- love power and control

- Formal, organized, and opinionated- result focused

- Ex: Trump

Analytical:

- Need facts and details before making decisions

- Meticulous and disciplined- no risk

- Don't express feelings

- Ex: lawyer, accountant, engineer

Communication style flexing

Adjusting communication style to fit that of the buyer

Customer Relationship Management tool (CRM)

systems integrated with the web allow reps to have more informed conversations with prospects and customers

- Easily accumulates data collected on customer demographic, sales and customer services history and marketing preferences

Electronic Data Interchange (EDI)

transactional exchanges automated with internet and web-enabled programs

the selling process

initiate, develop and enhance customer relatinships

open-ended questiona

ex: How do you feel...

close-ended questions

Questions that can be answered in short or single word responses.

Ex: How many...

dichotomous questions

Allows customer to choose from two or more options

Ex: which do you prefer, the ____ or the ____?

probing questions

Elicit more articulate and precise responses from the customer for use in needs discovery and solution identification

1) clarify

2) encourage elaboration

3) verify info and responses

Evaluative Questions

Questions that use the open-and closed-end question formats to gain confirmation and to uncover attitudes, opinions, and preferences

ex: earlier you mentioned ____, could you tell me more about how that might affect _____

tactical questions

used to shift or redirect the topic of discussion

ex: you mentioned that _____, can you give me an example?

reactive questions

refer to or directly result from information previously provided by the other party

ex: you mentioned ____, can you give me an example?

SPIN Questioning System

- Uncover buyer's *current situation and problems*

Situation questions: who are the current suppliers?

Problem questions: what problems prospect have with current suppliers

Implication: how does your "problem" affect profitability

Need-payoff: uncover need, then show how your solution can help

ADAPT Questioning System

-logic-based funneling sequence of questions, beginning with broad and generalized inquiries designed to identify and assess the buyer's situation.

Assessment questions: spark conversation. "How long has current supplier been in place?

Discovery: probe. "How often do these equipment failures occur?"

Activation: "What effects do these failures have on your operations?"

Projection: "If equipment never failed, what effects would that have on your overall operation?

Translation: "Since having suppliers that care consistently on time is important to you- if I could show you how our company ensures on-time delivery, would you be interested?

CLASP questioning

Current situation

Like about salesperson

Alter

Signer

Paint the Picture

effective listening skills

1. Pay attention

2. Monitor nonverbals

3. Paraphrase and repeat

4. Make no assumptions

5. Encourage buyer to talk

6. Visualize

SIER Hierarchy of Active Listening

- Sensing

- Interpreting

- Evaluating

- Responding

open-ended question

are also called nondirective questions and are designed to let the customer respond freely.

open-ended question

The question "How do you currently measure performance?" is an example of a(n) _____.

Tim asked his customer, "Would you be interested in increasing sales revenue by 30 percent?" According to the SPIN system of questioning, Tim's question is an example of a(n)

Need-payoff question

activation questions

In the context of the ADAPT questioning system, projection questions are preceded by:

active listening

___ is defined as the cognitive process of effectively sensing, interpreting, evaluating, and responding to the verbal and nonverbal messages of current or potential customers.

a. Social listening

b. Casual listening

c. Pseudo listening

d. Selective listening

e. Active listening

Concrete expressions are less likely to be misunderstood than their abstract counterparts.

Which of the following is a reason to use concrete expressions in messages?

glance sideways

In the context of nonverbal communication, a person who is feeling defensive or apprehensive would:

a. maintain good eye contact.

b. use a low-pitched voice.

c. glance sideways.

d. uncross his or her arms and legs.

e. lean forward during a conversation.

sales funnel or pipeline

trust-based sales process and strategic sales prospecting process in the form of a funnel; moving prospects down the funnel till they become customers

Prospecting methods

Cold Canvassing:

-cold calling

-referrals

- introductions- from happy customers

Networking:

- noncompeting salespeople

- social media

Company Sources:

- company records

- ad/ phone inquires

- trade show

-seminars

Commercial Sources:

- directories

- lead management sources

strategic prospecting plan

- Set goals: for acquiring new prospects

- Allocate time: establish regular daily schedule for conducting prospecting

- Stay Positive: developed confidence by knowing your products and believe you offer the best solution.

- Keep Records: track who and how many people you reach out to

- evaluate: Whats working and whats not?

Information to gather about prospects

- basic info; name, title, cell phone #, any hobbies, linkedin, about the company, communication style

- info about selling situation: type of purchase, motivation for buying, current supplier, buying members, budget, competitors involved

- Sources of information: online searches, social media, directories, annual reports, press, databases

it is likely that they will lose some customers over time.

It is important for most salespeople to spend time prospecting because:

a. it is likely that they will lose some customers over time.

b. new customers are a better source of revenue than existing customers.

c. new customers rely on salespeople to provide information about their buying process.

d. generating additional business from existing customers is impossible.

e. new customers are more loyal when compared to existing customers.

strategic prospecting

_____ is a process designed to identify, qualify, and prioritize sales opportunities, whether they represent potential new customers or opportunities to generate additional business from existing customers.

a. Business engineering

b. Strategic prospecting

c. Sales budgeting

d. Exploratory data analysis

e. Profiling

sales prospect

- has need for product or service

- has the budget/ resources

- has authority to make purchase decisions

qualifying sales leads

the act of searching, collecting, and analyzing info to determine likelihood of lead being a good candidate

planning the sales dialogue

The final step in the strategic prospecting process is:

a. dividing the consumer market into distinct segments.

b. asking the prospect to make a purchase.

c. identifying sales leads.

d. planning the sales dialogue.

e. asking the sales lead for feedback on the purchased product.

cold canvassing

Sarah is a salesperson who prefers calling or meeting her sales leads without any prior knowledge about them or their companies. In this scenario, which of the following methods of sales prospecting does Sarah prefer using?

a. Networking

b. Inbound telemarketing

c. Referral

d. Partnership selling

e. Cold canvassing

centers of infuence

well-known and influential people who can help salesperson prospect and gain leads

noncompeting salespeople

a salesperson selling noncompeting products so members can generate prospects for each other

ex: BNI

company records

salespeople can identify previous customers

advertising inquires

sales leads generated from companys advertising efforts

inbound telemarketing

toll-free telephone numbers that customers can call to obtain information about products or services and make purchases

outbound telemarketing

Sales method in which sales personnel place phone calls to prospects and try to conclude the sale over the phone

Seminars

Which of the following is used by firms to generate leads and provide information to prospective customers by inviting them through direct mail, word of mouth, or advertising on local television and radio?

a. Centers of influence

b. Incentive programs

c. Stock markets

d. Open houses

e. Seminars

It helps the salesperson understand all aspects of a prospect's buying process.

From a salesperson's perspective, which of the following is an advantage of obtaining specific information about the selling situation?

a. It helps the salesperson identify the weaknesses of a prospect.

b. It helps the salesperson understand all aspects of a prospect's buying process.

c. It makes it difficult for a prospect to reject the salesperson.

d. It makes it easier for the salesperson to set up an appointment with a prospect.

e. It helps the salesperson make a guaranteed sale.