Ch 1: Selling and Salespeople

Personal Selling

Phenomena of human-driven interaction between individuals or organizations to bring about economic exchange.

Customer Value Proposition (CVP)

The collection of buyer-specific benefits provided by a seller.

Personal Value Equation

Benefits received minus the sum of selling price and the time and effort to purchase.

Go-to-Market Strategies

Approaches used by salespeople and firms to sell their products (e.g., Internet, field sales, resellers).

Customer Lifetime Value (CLV)

The estimated value of a customer over the entire lifetime of the relationship.

Impersonal & Paid Communication

Advertising and sales promotion.

Personal & Paid Communication

Personal selling and direct email.

Impersonal & Unpaid Communication

Publicity.

Personal & Unpaid Communication

Word-of-mouth communication.

Customer-Centric

Making the customer the center of everything the salesperson does.

Six Sigma Selling Programs

Programs designed to reduce errors introduced by the selling system to practically zero.

Supply Chain Logistics

Management of the supply chain and relationships with partners and vendors.

Customer Relationship Management (CRM) System

An electronic system containing customer information and detailed call histories.

Distribution Channel

A set of people and organizations responsible for the flow of products from producer to user.

Direct Sales Channel

Salespeople working for the manufacturer call directly on business or consumer customers.

Trade Salespeople

Salespeople employed to sell to firms that resell products rather than use them internally.

Distributor Salespeople

Salespeople who sell products made by different manufacturers to businesses or retailers.

Missionary Salespeople

Salespeople who promote a manufacturer's products to influencers who do not directly place orders.

Manufacturers' Agents

Independent salespeople paid on commission who do not own the products they sell.

Field Salespeople

Salespeople who communicate with customers face-to-face at the customer's location.

Inside Salespeople

Salespeople who communicate with customers via telephone or computer from their employer's location.

Selling Analytics

Gaining insights into customers using data mining, analytic techniques, and artificial intelligence.

Emotional Intelligence (EI)

The ability to understand and regulate one's emotions and respond to others' emotions.

Four Aspects of Emotional Intelligence

Self-awareness, emotion control, empathy (recognizing emotions), and using emotions effectively.

Servant Leadership Mindset

A leadership approach focused on helping others, preparing salespeople for management roles.

Steps in the Selling Process

Prospecting, planning calls, making calls, presenting, answering objections, obtaining commitment, and partnering post-sale.

Sales Engineer

Specializes in facilitating the sales process for technologically and scientifically advanced products

Organizations whose go-to-market strategies rely heavily on salespeople are called

sales-force intensive organizations

The salespersons who secure new customers and spend most of their time generating leads are called

hunters

The salespersons who sell to existing customers are called

farmers