Marketing: element 3-principles of sales

Comprehensive practice flashcards in question-and-answer format covering customer value, sales processes, pipelines, market segmentation, marketing vs. sales, customer experience mapping, NPS scoring, and after-sales service.

What is the difference between paid media, owned media, and earned media?

Paid media is advertising a business pays for; owned media consists of channels the business controls (e.g., website, email list); and earned media is publicity gained organically (e.g., reviews, shares).

How are turnover, profit margins, and churn defined?

Turnover is the total sales a business makes over a period of time; profit margins refer to how much of the money made is actually profit; and churn is when customers stop using a business or stop buying from it.

What are acquisition costs, and how does repeat business affect them?

Acquisition costs are the cost of gaining a new customer (advertising + promotion). Repeat business reduces acquisition costs because satisfied existing customers return to buy again.

How do loyal and repeat customers benefit a business regarding pricing, profit, and inventory planning?

Loyal customers spend more money over time and are less sensitive to price changes (price elasticity), boosting profit margins. Additionally, repeat customers' purchasing patterns provide insights to help forecast demand and plan inventory.

What role do brand advocates play, and what example of brand value alignment is cited in the notes?

Brand advocates support and promote brands through purchases and word of mouth (such as social media posts), reducing churn and increasing lifetime value. An example of value alignment given is Innocent drinks' promise to give to charity.

What are the seven stages of the sales life cycle in order?

1. Prospecting
2. Qualifying/disqualifying
3. Make contact and qualify
4. Build relationships
5. Present offer
6. Handle objections
7. Close the deal

What are the four types of closing techniques and how do they function?

• Direct close: Simply ask the customer if they want to buy to encourage a clear decision. • Silent close: Stop talking and let the customer decide after presenting the product, giving them time without added pressure. • Assumptive close: Act as if the customer has already decided to buy, making buying feel like the natural next step. • Alternative close: Give the customer two options that both involve buying, making the decision easier than asking whether to buy at all.

What are the five stages of the sales funnel?

1. Awareness
2. Interaction
3. Interest and evaluation
4. Action
5. Loyalty/advocacy

What does BANT stand for, and what is the preferred order to evaluate its components?

BANT stands for Budget, Authority, Needs, and Timeline. The preferred order of evaluation is Needs, Budget, Authority, Timeline.

What are the components of the 7Ps marketing mix?

• Product: What the business sells and its benefits/features • Place: Where and how the product is sold or distributed • Price: Cost of the product/service and the pricing strategy used • Promotion: How the business advertises • People: Employees and staff who interact with customers • Process: Steps and systems used to provide the product/service • Physical evidence: Physical things customers see representing the business (shop, packaging, website, uniforms, branding)

What are the four primary types of market segmentation?

• Demographic: Based on who people are (age, gender, income, and occupation) • Geographic: Based on where people live (country, city, or region) • Psychographic: Based on lifestyle and interests (personality, values, attitudes) • Behavioural groups: Based on spending, consumption, rate of usage, loyalty status, and desired benefits

What are the main advantages and disadvantages of market segmentation?

• Advantages: Product customization/tailoring, targeted pricing strategies, targeted promotional strategies, alignment of people, optimizing process decisions, and appealing physical evidence. • Disadvantages: Extensive market research needed, producing products for each specific segment may not be possible, higher production and stock holding costs, higher promotional costs, and risk if consumers in small target segments change their minds.

What is a buyer persona and what are the five steps to create one?

A buyer persona is a research-based profile representing a target customer segment including demographics, behaviours, goals, and pain points. The five steps are:

1. Gather customer data
2. Analyse trends
3. Identify goals and pain points
4. Define behaviours
5. Build the profile

What is the primary difference between marketing and sales?

Marketing attracts potential customers and builds brand awareness, whereas sales focuses on directly engaging prospects to close deals and secure transactions.

How do sales and marketing pathways differ between B2B, B2C, and Social Enterprise organizations?

• B2B: $\text{Lead} \rightarrow \text{Meeting} \rightarrow \text{Sale}$ (uses the sales pipeline; often involves face-to-face or online meetings) • B2C: $\text{Marketing} \rightarrow \text{Customer} \rightarrow \text{Sale}$ (uses paid, owned, and earned channels to sell online or in-store) • Social enterprise: $\text{Awareness} \rightarrow \text{Cause} \rightarrow \text{Donation/action}$ (focuses on creating social/environmental benefits rather than profit)

What is customer friction, and what are four common examples of it?

Customer friction is anything that makes the buying process difficult. Examples include:

1. Long waiting times
2. Complicated ordering
3. Incorrect orders
4. Slow payment systems

What are the benefits and disadvantages of offline touchpoints?

• Benefits: Ideal for personal interaction and tangible experiences, which build trust and lasting impressions. • Disadvantages: Can be expensive (e.g., printing posters or paying for physical advertising) and have limited reach (mainly reaching customers in specific locations).

What are the advantages and disadvantages of digital touchpoints?

• Advantages: Offer scalability, real-time engagement, convenience, and valuable data-driven insights. • Disadvantages: High competition from businesses competing online, and negative feedback spreads quickly (bad reviews or comments can damage reputation).

What are the five stages of customer experience mapping?

Stage 1: Awareness Stage 2: Consideration Stage 3: Purchase Stage 4: Experience Stage 5: Loyalty

How does the Net Promoter Score (NPS) classify customer types based on their ratings?

• Promoters (Score $9-10$): Loyal customers who are likely to recommend the business. • Passives (Score $7-8$): Satisfied customers but not enthusiastic enough to actively promote the business. • Detractors (Score $0-6$): Unhappy customers who may discourage others from using the business.

How is the Net Promoter Score (NPS) calculated, and what do its score ranges mean?

Formula: $\text{NPS} = \%\text{Promoters} - \%\text{Detractors}$ (Passives are not included).

Meanings: • Below $0$: Poor customer loyalty • $0-30$: Good • $31-50$: Very good • Above $50$: Excellent • Above $70$: World-class

What does the term "patronize" mean in the context of customer loyalty?

To keep using the same business and not consider changing.

What are the advantages and disadvantages of technical support, refunds and returns, and warranties in after-sales service?

• Technical support: Solves product issues and increases customer satisfaction, but is expensive to provide trained staff. • Refunds and returns: Builds customer trust knowing faulty items can be returned, but costs money through refunds and handling returned goods. • Warranties: Gives customers peace of mind and confidence in repairs/replacements, but can be expensive for businesses to cover those costs.