Study Time!

The customer's long-term value to the sales organization is referred to as the -blank- of the customer.

Lifetime Value

\-blank- is the altering of sales behaviors during a customer interaction or from one situation to another based on information the sales rep gathers about the nature of the selling situation.

Adaptive Selling

T/F: Dishonesty not only harms the customer relationship but can lead to legal action and huge financial judgements against the company.

True

\-blank- is the process of analyzing a lead to see if it meets the criteria to be a prospect.

Qualifying the Prospect

\-blank- involves questioning the customer to discover his or her needs.

Need Identification

A firm that is -blank- puts the customer at the center of everything that occurs, both inside and outside the firm.

Customer-Centric

\-blank- are the jobs involved in selling goods and services to end-user consumers for their own personal use.

Retail Selling

A -blank- is a non financial present.

Gift

What is a circumstance that can lead to prospecting being a higher priority?

A customer gets into financial difficulty or goes out of business entirely.

In a -blank- presentation the customer has problems and the salesperson is there to solve them by creating win-win solutions.

Problem-Solving

What was the option in the Drishti Eye Center Case?

Terminate Bhatt

T/F: Value may be thought of as a ratio of benefits to cost.

True

\-blank- are internet-based platforms that allow users to create their own content and share it with others who access the site.

Social Media

\-blank- is when a customer is satisfied, loyal, and willing to spread the word that he or she is pleased with you.

Customer Advocacy

T/F: Controversial topics should be discussed in the first three minutes of the sales presentation.

False

What was one of the options in the Designs by Kate case?

Educated employees on sales ladder

\-blank- utility is created when the firm converts raw materials into finished products that are desired by the market.

Form

T/F: Data collected within CRM systems by the sales force, customer service representatives, and digital marketers offers significant opportunities to better understand the market as a whole.

True

\-blank- are people who come into contact with an unusually large number of people in the course of their daily routine.

Bird Dogs

Which approach strategy involves asking the customer to compete a set of questions?

Assessment

What was a decision problem in the Designs by Kate case?

How big an impact did adding Level 1 team members have on a representatives' income?

\-blank- logistics are how the firm goes about sourcing raw materials for production.

Inbound

\-blank- the practice of impeding competitor access to a customer.

Competitor Obstruction

\-blank- telemarketing involves unsolicited phone calls to leads in an attempt to qualify them as prospects.

Outbound

T/F: At every step in the presentation, it is not important to get customer agreement.

False

Customer Orientation

Firms that have a high level in customer-centric

Customer Mindset

A salespersons’ belief that understanding and satisfying customers, whether internal or external to the organizations, is central to doing their job well

Return on customer investment

sales organizations must calculate how much time, money, and other resources should be invested in a particular customer versus the anticipated return on that investment.

Lifetime value of a customer.

The customer’s long-term value to the sales organization

Transactional selling

the set of skills, strategies, and sales processes that meets the needs of buyers who treat suppliers as a commodity and who are mainly or exclusively interested in price and convenience (the focus tends to be on communicating a hard sell message)

Relationship selling

the central goal is securing, building, and maintaining long-term relationships with profitable customers (oriented toward the *long term*).

Consultative selling

the set of skills, strategies, and processes that works most effectively with buyers who demand, and are willing to pay for, a sales effort that creates new value and provides additional benefits outside of the product itself. (salespeople who become close to the customer and who have an intimate grasp of the customer’s business issues)

Enterprise selling

Enterprise selling is the set of skills, strategies, and processes that work most effectively with strategically important customers who demand an extraordinary level of value creation from a key supplier.

Ethics

moral principles and standards that guide behavior.

*Prospecting and Sales Call Planning*: Prospects

set of potential customers you or your firm identified as

*very likely* future customers.

*Communicating the Sales Message:* Persuasive communication

When you persuade,

you hope to convince someone to do something.

Contemporary selling

the salesperson acts as a consultant or problem solver for buyers and sells value added solutions, popularized by the term solution selling, in which the salesperson’s primary role is to move the buyer toward visualization of a solution to their problem (need).

*Negotiating for Win-Win Solutions* (selling process)

Even when buyers have been doing business with you for a very

long time, they will develop objections to various aspects of your proposed solution.

Objection

a concern that some part of your product offering (solution) does not fully meet the buyer’s need.

Closing and Follow-Up

The rapport, trust, and mutual respect inherent in a long-term

buyer-seller relationship can take some of the pressure off the “close” portion of the sales process.

Follow-up

A big part of this process of maintaining loyal customers over the long run; includes service after the sale. (effective)

*Salesperson Self-Management* (Autonomy)

the degree of independence the salesperson can exercise

in making their decisions in the day-to-day operation of the job.

*Salesperson Performance:* Motivation

the amount of effort a salesperson chooses to expend on

each activity or task associated with the job.

*Salesperson Performance:* Expectancy Theory

a salesperson’s estimate of the probability that

expending effort on a task will lead to improved performance and rewards.

Recruiting (seven necessary traits for a successful salesperson):

1. Listening skills
2. Follow-up skills
3. Ability to adapt sales style from situation to situation
4. Tenacity (sticking with a task)
5. Organizational skills
6. Oral communication skills
7. Ability to interact with people at all levels of customer’s organization.

Training

building specific skill and knowledge sets needed to succeed in the job.

Development

providing a long-term road map or career track

for a salesperson so he or she can realize professional goals

*Compensating and Evaluating Salespeople* (Compensation)

monetary rewards

*Compensating and Evaluating Salespeople* (Incentives)

variety of financial and non-financial rewards

*Compensating and Evaluating Salespeople* (Non-financial incentives)

recognition programs, promotions to better territories or to management positions, or opportunities for personal development.

Internal Environment

issues relevant and controllable by the firm

External Environment

issues outside the control of the organization

Job Autonomy

Freedom of action and opportunities for personal initiative.

Job Variety

Multifaceted and challenging activities within their job

Opportunities for Rewards

Salespeople hired right out of college tend to start at higher salaries than most other professions and tend to keep up well during their careers with the compensation of their peers outside of sales (due to sales compensation being linked directly to performance).

Intrinsic rewards

rewards inherent to satisfaction derived from elements of the job or role itself

Extrinsic rewards

rewards bestowed on the salesperson by the company

Favorable Working Conditions

Many sales positions involve telecommuting with a virtual office, and with less minute-to-minute direct supervision than most other careers.

Ability to Move Up in the Organization

Sales frequently offers great opportunities for career development and advancement.

Success Factors in Contemporary Selling:

1. Listening skills
2. Follow-up skills
3. Ability to adapt sales style from situation to situation
4. Tenacity- sticking w/ a task
5. Well organized
6. Verbal communication skills
7. Proficiency in Interacting with People at All Levels of a Customer’s Organization
8. Demonstrated Ability to Overcome Objections
9. Closing Skills
10. Personal Planning and Time Management Skills

Listening Skills

Research has found that buyer-seller relationships are significantly strengthened

when salespeople consistently employ effective listening skills.

Follow-up Skills

A key difference between transactional and relationship selling is the effort devoted to the ongoing maintenance of the relationship, especially in between face-to-face encounters with the customer (make future purchases)

Adaptive selling

altering of sales behaviors during a customer interaction or from one situation to another based on information the sales rep gathers about the nature of the selling situation (more successful)

Tenacity

process of managing relationships requires patience and the willingness to work with a client, often over very long periods, before the potential benefits of the relationship to both parties are realized.

Well Organized

As the content and responsibilities of sales jobs have increased in complexity and buying organizations have become more complicated for salespeople to navigate, the ability to skillfully prioritize and arrange the work has become a more important success factor (effective time and territory)

Verbal Communication Skills

Salespeople must be great communicators, especially of their value proposition.

Proficiency in Interacting with People at All Levels of a Customer’s Organization

Selling often involves communication and interaction with many people within the client’s firm besides the purchasing agent.

Demonstrated Ability to Overcome Objections

The sales rep can minimize them by developing a trusting relationship with the client over the long run and by working to negotiate win-win solutions.

Closing Skills

Closing is of paramount importance, but a win-win approach to negotiating makes closing a much less arduous process for a salesperson.

Personal Planning and Time Management Skills

good at personal planning and managing your time will serve you well in a sales career (use technology to be organized)

Selling Function Activities

* Plan selling activities
* Search out leads
* Call on potential accounts
* Identify decision makers
* Prepare sales presentation
* Make sales presentation
* Overcome objections
* Introduce new products
* Call on new accounts

Working with others Activities

* Write up orders
* Expedite orders
* Handle back orders
* Handle shipping problems
* Find lost orders

Servicing the product

* Learn about the product
* Test equipment
* Supervise installation
* Train customers
* Supervise repairs
* Perform Maintenance

Managing information

* Provide technical information
* Receive feedback
* Provide feedback
* Check with superiors

Servicing the account

* Stock shelves
* Setup displays
* Take inventory for client
* Handle local advertising

Attending conferences and meetings

* Attend sales conferences
* Attend regional sales meetings
* Work at client conferences
* Setup product exhibitions
* Attend periodic training sessions

Training and recruiting

* Recruit new sales reps
* Train new salespeople
* Travel with trainees

Entertaining

* Entertain clients with golf, sports event, etc
* Take clients to dinner
* Take clients out for drink
* Take clients out to lunch
* Throw parties for clients

Traveling

* Travel out of town
* Spend nights on the road
* Travel in town

Distribution

* Establish good relations with distributors
* Sell to distributors
* Handle credit
* Collect past-due accounts

Retail selling

jobs involve selling goods and services to end-user consumers for their own personal use (business-to-consumer (B2C) market)

Business-to-business (B2B) market (industrial selling):

the sale of goods and services to buyers who are not the end users

Business-to-business markets involve three types of customers:

* *Sales to resellers:* when a salesperson sells to a retail store who then resells the goods to its customers.
* *Sales to business users:* when a salesperson sells materials to another company who then uses it to product another product or when a salesperson sells a service to another firm to use when conducting their business.


* *Sales to institutions:* when a salesperson sells a product to a nonprofit hospital or government agency

Differences between B2B vs B2C selling

* Many of the goods and services sold by B2B salespeople are more

expensive and technically complex than those in B2C.
* B2B customers tend to be larger and to engage in extensive

decision-making processes involving many people.
* Many sellers work in both the B2C and B2B markets

Trade servicer

The sales force’s primary responsibility is to increase business from current and potential customers by providing them with merchandising and promotional assistance.

Missionary seller

The sales force’s primary job is to increase business from current and potential customers by providing product information and other personal selling assistance (no direct orders from customers but persuade to buy)

Technical seller

The sales force’s primary responsibility is to increase business from current and potential customers by providing technical and engineering information and assistance.

New-business seller

The sales force’s primary responsibility is to identify and obtain business from new customers, securing and building the customer relationship.

Outsourced sales force

entails hiring sales agents—who usually work for a broker organization—that specialize in selling particular types of product lines within the hiring firm’s channel of distribution.

Buying center

Represents all the people who participate in purchasing or influencing the purchase of a particular product.

Initiators

The people who perceive a problem or opportunity that may require the purchase of a new product or service (can be anyone in the firm)

Users

The people in the organization who must use or work with the product or service, often influence the purchase decision.

Influencers

provide information for evaluating alternative products and suppliers and often play a major role in determining the specifications and criteria to use in making the purchase decision.

Gatekeepers

control the type and amount of information provided to other people involved in the purchasing process.

There are two types of gatekeepers:

* *Screens:* Receptionists and administrative assistants at American Airlines, who decide whose phone call is put through to the executive or purchasing agent
* *Filters:* The American Airlines purchasing agent who gathers proposals from three companies and decides what to tell others in the buying center about each company. The purchasing agent filters information, choosing to pass along some but not all of it to influence the decision.

Buyer

The person who actually contacts the selling organization and places the order (some have the authority to negotiate purchases)

Decider

The person with the final authority to make a purchase decision.

Controller

the person who determines the budget for the purchase.

Selling center

an approach that brings together individuals from around the organization (marketing, customer service, sales, engineering, and others) as a team to join the salesperson who has primary responsibility for a customer.

Team-selling structure

One common structure makes the salesperson (account manager) responsible for working with the entire selling team to manage the customer relationship (proper structure key to the success of the selling center)