FBLA Marketing Nationals

cold call

calling many people in the hopes one answers

vertical structure

chain of command, CEO at top, best control

horizontal structure

no middle managers, high-level managers interact with customers, typically in small business, better morale

time utility

product available when the customer wants it

place utility

making it easier to produce, having product

possession utility

alternative benefits, benefits gained when it is owned

form utility

value in a finished product vs. parts

LACE Objection Handling

Listen, Accept, Commit, Explicit action

tip the bucket

ask for all remaining objections

need objection

do not need

price objection

about price; typically too high

feature objection

object to part, whether aspects or details

time objection

person is not ready to buy

source objection

question credibility

boomerang technique

bouncing back to use to support/defend product

objection chunking

taking higher/lower viewpoint

conditional close

make sale close (agreement) a condition for satisfying objection

deflection

avoid responding and letting it pass

fallback technique

step back and remove reason for objection

pre-empting

handling objections when they happen

pushback technique

object to objection

standing-room-only close

show others are ready to buy

question technique

asking questions about objection

third party technique

using unbiased third party to provide testimony

demonstration technique

having an employee show the consumer

buying signals

the things customers do or say to indicate a readiness to buy

trial close

initial effort to close sale

superior point method

a technique that permits the salesperson to acknowledge objections as valid yet still offset them with other features and benefits

excuses

are insincere reasons for not buying or not seeing the salesperson

layman's terms

words the average customer can understand

objection writing

write down, cross off as they are addressed

feel, felt, found

"I understand"..."others have felt"..."what they found" - show that objections are not always to something so bad

FUD (fear, uncertainty, doubt)

a method used in sales and marketing to dissuade customers from buying competing products and solutions by providing information that triggers fear and uncertainty, or sows seeds of doubt, about current customer thinking - often against competitors

opportunity cost

cost of an action

layaway sale

small costs

cash on delivery sale

pay when object/product is received

licensing

allows other company to produce (Windows!)

endless chain prospecting

asking people to recommend

realistic setting display

shows scene, parts

semi-realistic setting display

only shows essence, rest is up to imagination

fantasy setting

unrealistic, often disproportionate

blind check method

write the description of the merchandise, count the quantities received, and list them on a blank form or dummy invoice

direct check method

check directly against the actual invoice of purchase order

spot check method

a random check of one carton in a shipment

quality check method

inspect the workmanship and general characteristics of the received merchandise

just-in-time (JIT) inventory system

controls the flow of parts and material into assembly and manufacturing plants

perpetual inventory system

tracks the number of items in inventory on a constant basis

physical inventory system

information about stock levels is not maintained on an ongoing basis

sale steps

1. prospecting, find possibilities

2. preapproach, find out needs

3. approach, discuss (greet) and show

4. sales debates

5. close

intensive distribution

The producer's products are stocked in the majority of outlets. This strategy is common for basic supplies, snack foods, magazines and soft drink beverages.

selective distribution

Means that the producer relies on a few intermediaries to carry their product. This strategy is commonly observed for more specialised goods that are carried through specialist dealers, for example, brands of craft tools, or large appliances.

exclusive distribution

Means that the producer selects only very few intermediaries. Exclusive distribution is often characterised by exclusive dealing where the reseller carries only that producer's products to the exclusion of all others. This strategy is typical of luxury goods retailers such as Gucci.