Sales Lecture Notes Flashcards

A complete set of vocabulary flashcards covering the key terms and concepts of sales, assortment management, buying behavior, and customer relationship strategies as detailed in the lecture notes.

Sales

All activities involved in selling a product or service to a consumer or business.

Inside Sales

A sales approach where teams engage with prospects and customers remotely, often from an office, using leaner and more automated processes.

Outside Sales

A sales approach where salespeople broker face-to-face deals, traditionally through door-to-door or field sales.

$B2B$ Sales

Business-to-business sales, describes companies that sell products and services to other businesses rather than individual consumers.

$B2C$ Sales

Business-to-consumer sales, which revolve around transactions between a company and individual consumers.

eCommerce Sales

A sales model where customers research and purchase products online without needing to engage with a company representative.

Direct Sales

A model where individuals sell directly to consumers outside of a traditional retail environment, often earning a commission.

Account Based Sales

A strategy for large enterprise accounts where a dedicated team serves the customer from lead through to customer success to build long-term relationships.

Prospect

A point of contact at a company that a salesperson would like to sell products or services to.

Sales Pipeline

A visual representation of all the steps in a sales process, showing where prospects are in the sales cycle.

Sales Plan

A document outlining the goals, objectives, strategies, and tactics for a sales organisation.

Cross-selling

The practice of identifying opportunities to sell additional products or services to existing customers based on their needs.

Up-selling

A tactic where the salesperson tries to increase the value of an order by selling more expensive variants of a product.

Lead Qualification

The process of assessing leads to determine suitability based on factors like needs, budget, and purchase readiness.

Inside Sales Representative

A role primarily engaging in sales activities from an office via phone, email, or chat, Supporting the outside sales team.

Account Manager

A strategic role responsible for maintaining and developing relationships with key customers to ensure satisfaction and increase revenue.

Geographical Division

An organisational structure where the market is divided into regions or countries and assigned to specific salespeople.

Sales Forecast

A prediction of expected sales over a specific period based on historical data, market analysis, and sales trends.

$SMART$ Objectives

Specific, Measurable, Achievable, Relevant, and Time-bound goals used to set effective sales targets.

Core Assortment

The part of the assortment consisting of the products that sell the best and that customers always expect to find.

Peripheral Assortment

Items that complement the core assortment but are relatively less sold.

Assortment Width

The number of different assortment groups a store offers.

Assortment Depth

The number of items (brands, models, and types) offered within a specific product group.

$20/80$ Rule

Also known as the Pareto principle, it states that usually $20\%$ of an assortment is responsible for $80\%$ of the revenue.

Convenience Goods

Everyday groceries or items purchased regularly with little thought and high frequency.

Shopping Goods

Products for which consumers are willing to travel and compare options based on price and service before purchasing.

Specialty Goods

Articles purchased rareley for which consumers research thoroughly and invest significant time and effort.

Unsought Goods

Products that consumers are not yet inclined to buy or are brand new and not well-known.

Complementary Articles

Goods that are used together and complement each other, such as coffee and coffee creamer.

Follow-up Articles

Additions to a previous purchase that a customer expects to find, such as printer cartridges for a printer.

Substitution Articles

Interchangeable goods where consumers make choices based on price or availability.

Umbrella Brand

A collective manufacturer's brand where all products share the same name, such as Sony or Samsung.

A Brands

Higher quality and higher-priced brands with high status that are promoted extensively to build brand loyalty.

Sanitizing

The process of making an assortment healthy by removing items that generate little to no revenue.

Penetration Rate

The percentage of buyers out of the total market who have purchased a specific item at least once.

Trading Up

Adding new, more expensive product variants to the assortment to improve its image.

Cannibalisation

When the introduction of a new or cheaper item causes the sales of existing items to drop significantly.

Initial Demand

The demand created when a consumer purchases a product or service for the very first time.

Derived Demand

Demand for an industrial product that is determined by the final demand for a consumer product.

$$DMU$$

Decision Making Unit; a group of people within an organisation who influence and participate in the procurement process.

New Task Buy

An industrial buying situation where an item has never been purchased before, requiring extended problem-solving.

Straight Rebuy

A repeat purchase where a product is reordered with the same specifications.

Aloof Customer

A customer typology characterized by a measured tone, interest in technical details, and a need for professional certainty.

Gatekeeper

A role within the $DMU$ responsible for gathering information and determining who can access it.

Cognitive Dissonance

The post-purchase doubt or psychological discomfort a customer feels when encountering facts that conflict with their purchase decision.

Buyer Persona

A fictitious representation of a customer that describes their behavior, decisions, and journey during the purchase process.

Sales Funnel

A model describing the path a visitor takes toward making a purchase, categorized into suspects, leads, prospects, and orders.

Suspect

A person or company that fits the target audience profile but has not yet identified interest in the company's offerings.

Hot Prospect

A potential customer who is very likely to place an order in the short term.

Incoterms

International Commercial Terms; standard delivery terms that define responsibilities for costs and risks in international trade.

Personal Selling

A direct form of sales involving personal contact to build relationships, understand needs, and offer solutions.

Hard Franchising

A strict business model where the franchisor exercises extensive control over uniformity, layout, and operations.

Canvassing

A technique where salespeople visit potential customers without an appointment or make contact on the street.

Consultative Selling

A sales method where the salesperson acts as a consultant, providing value through in-depth analysis and customized solutions.

Deep Selling

A tactic where a salesperson tries to sell more quantity of the same goods to a customer.

Hard Selling

A direct and aggressive sales approach emphasizing quick purchase decisions through pressure or urgency.

$$CRM$$

Customer Relationship Management; a strategy and technology platform used to manage and analyse interactions with customers to improve loyalty.