Exam 2 Integrated Review: Chapters 6–11 and Guest Speaker Panel

Comprehensive vocabulary flashcards covering the guest speaker panel (Seth Lytton, Anne Love, Thomas Bornemann), personal selling, supply chain management, logistics, and pricing strategies for Exam 2.

Seth Lytton

Marketing executive (Yahoo background, affiliate marketing) who advised students to adopt AI without letting it replace human judgment, verify all AI outputs, and remain open to unplanned career pivots.

Anne Love

American Express merchant marketing leader who emphasized that human judgment must validate AI, recommended reserving 5–10% of marketing budgets for experimental spending with a roughly 200% ROI target, and stressed internal firewall data governance.

Thomas Bornemann

Former Principal at EY who described consulting as an apprenticeship model, cautioned against choosing career paths driven purely by money, emphasized data protection from external AI, and highlighted the importance of curiosity and leadership.

Apprenticeship Model

A professional development framework highlighted by Thomas Bornemann where entry-level employees acquire skills and advance through guided mentorship, hands-on experience, and ongoing coaching.

Personal Selling

A two-way flow of communication between a buyer and a seller designed to influence a purchase decision, handle objections, and build long-term relationships, especially for complex, expensive, or risky offerings.

Consultative Seller

A sales representative who focuses on diagnosing customer problems, designing tailored solutions over time, and establishing ongoing advisory relationships.

Missionary Salesperson

A sales professional who educates potential buyers, promotes goodwill, and builds brand awareness without directly soliciting or processing orders.

Key-Account Seller

A salesperson assigned to manage, coordinate, and grow relationships with a company's largest, most profitable, and strategically vital accounts.

Customer Advocacy

The sales practice of representing and protecting the customer's interests within the selling organization to build deep trust and maximize customer lifetime value.

Adaptive Selling

An interpersonal sales approach in which the representative customizes the communication style, presentation depth, pacing, and message to the unique needs and behaviors of each buyer.

SPIN Selling

A question-based sales methodology structured around Situation, Problem, Implication, and Need-payoff questions to uncover customer challenges before proposing a solution.

Pre-Approach

The stage in the personal selling process where the salesperson conducts background research on a prospective buyer, their organization, and key decision-makers prior to initial contact.

Objection

A customer's explicit concern, hesitation, or pushback regarding price, product value, timing, or terms, which serves as an opportunity for the salesperson to clarify value rather than indicating rejection.

Summarization Close

A closing technique where the salesperson recaps the buyer's agreed-upon requirements, aligns them with the proposed solution's core benefits, and asks for confirmation or agreement.

Supply Chain Orientation

A management philosophy where employees and leaders evaluate and prioritize the performance, flows, and integration of the entire supply chain rather than focusing exclusively on their internal department.

Supply Chain Flows

The three interconnected movements across a supply network: physical product flow downstream toward customers, money flow upstream back to suppliers, and information flow moving bidirectionally.

FOB (Free on Board)

The baseline price of goods loaded at the supplier's port of origin, excluding subsequent freight, import tariffs, port fees, or inland transportation costs.

Landed Cost

The complete expense of an imported product delivered to its destination, calculated as $\text{Landed cost} = \text{FOB} + \text{freight} + \text{tariff} + \text{fees}$.

Push Strategy

A supply chain model where goods are manufactured and stocked based on sales forecasts prior to receiving customer orders, following the sequence: forecast, plan, order materials, make, store, customer orders, ship.

Pull Strategy

A demand-driven supply chain strategy where actual customer orders trigger purchasing, manufacturing, and fulfillment, minimizing finished-goods inventory holding costs.

Hybrid Push-Pull Strategy

A supply chain model that prepares raw materials or standardized components in advance using forecasts, but postpones final assembly and customization until an actual customer order is received.

The 8 Rs of Logistics

The critical logistics benchmarks required to meet customer demands: right product, right quantity, right condition, right place, right time, right customer, right cost, and right resilience.

Inventory Carrying Cost

The total financial burden of holding goods in stock—including storage, capital interest, insurance, damage, pilferage, and obsolescence—calculated as $\text{Carrying-cost percentage} = \frac{\text{annual carrying cost per unit}}{\text{manufacturing cost per unit}} \times 100$.

Nearshoring

The practice of relocating production or supplier facilities to a geographically close country (such as U.S. firms shifting production to Mexico) to shorten lead times and mitigate ocean shipping disruptions.

Multishoring

A sourcing strategy that disperses supplier contracts across several different countries to eliminate single-nation vulnerability and diversify tariff exposure.

Disintermediation

The elimination of intermediary organizations or middlemen from the distribution channel, enabling direct producer-to-consumer or direct-to-retailer transactions.

Agentic AI

Autonomous artificial intelligence systems programmed to plan, execute multi-step workflows, and adapt actions dynamically toward specific business goals within designated guardrails.

Physical AI

Artificial intelligence embodied in physical equipment, sensors, autonomous transport, or warehouse robots (such as Amazon's DeepFleet and Vulcan) to handle material goods.

Dynamic Pricing

A pricing practice where prices continuously adjust in response to real-time fluctuations in demand, capacity, customer timing, or market conditions.

Price Fixing

An illegal agreement among competing companies in the same market to establish, inflate, or maintain fixed prices, which violates antitrust regulations.

Predatory Pricing

An illegal pricing practice where a dominant firm deliberately sets prices below cost to drive competitors out of business, aiming to recoup losses by raising prices later.

Deceptive Pricing

Unlawful pricing tactics designed to mislead consumers, such as artificial 'was' reference prices, bait-and-switch ploys, or hidden fees.

Reach

The total number or percentage of unique individuals within a target audience who are exposed to a specific marketing communication at least once during a campaign.

Frequency

The average number of times an individual within a targeted audience is exposed to a promotional message or advertisement over a specified timeframe.

Impressions

The total cumulative exposure count delivered by an advertising message, calculated as $\text{Impressions} = \text{Reach} \times \text{Frequency}$.

Rating

A media audience metric, typically presented on a 0–100 scale, reflecting the percentage of an overall target market or viewing audience watching a specific broadcast.

Psychographic Segmentation

Dividing consumer markets based on lifestyles, personal values, attitudes, and activities (such as Marriott targeting the 'local discoverer' segment).

Demographic Segmentation

Categorizing market segments by objective, measurable personal variables such as age, gender, income level, education, family size, or occupation.

Behavioral Segmentation

Segmenting consumers based on observed actions, product usage rates, purchase history, brand loyalty, or specific benefits sought.

VALS Framework

A psychographic segmentation tool that classifies adult consumers into distinct segments based on psychological traits, values, attitudes, and primary motivations.

Objective-and-Task Method

A promotional budgeting approach where marketers define specific marketing objectives, determine the exact tasks needed to achieve them, and calculate the cumulative cost of executing those tasks.