D099 WGU Sales Management Flashcards

Comprehensive vocabulary flashcards covering key concepts from the WGU Sales Management (D099) transcript, including organizational structures, buyer behaviors, recruitment, metrics, and budgeting.

Functional relationships

Limited, ongoing relationships that develop when a buyer continues to purchase a product from a seller out of habit, as long as its needs are met.

Modular structure

Divides the business into small, tightly knit strategic business units (SBUs), which focus on specific elements of the organizational process.

Value chain

The process or activities by which a company adds value to a product, including production, marketing, and the provision of after-sales service.

Strategic business units (SBUs)

A profit center that focuses on product offering and market segment.

Sustainable competitive advantage

Company assets, attributes, or abilities that are difficult to duplicate or exceed and provide a superior or favorable long-term position over competitors.

Business intelligence (BI)

The use of data in an enterprise to facilitate decision-making.

Big data analytics

Large, complex data sets that require non-traditional data processing software to predict trends and forecasts.

Integrated marketing communications (IMC)

The careful coordination of all promotional activities—media advertising, sales promotion, personal selling, and public relations, as well as direct marketing, packaging, and other forms of promotion—to produce a consistent, unified message that is customer focused.

Marketing concept

Identifying consumer needs and then producing the goods or services that will satisfy those needs while making a profit for the organization.

The main limitation of the AIDA model

The model assumes consumers are passive and marketers are active during most of the buying process.

Transactional selling

Focuses on short-term, often single, transactions.

Relationship selling

Focused on long-term relationship building to keep customers satisfied and consequently convince them to return and make multiple purchases.

Adaptive selling

Using social styles to customize a sales approach to the specific customer.

Analyticals

Focus on "how," include facts, do not challenge their facts, demonstrate results, mention guarantees and warranties, give them time to decide, communicate the pros and cons, and provide history, data, financial details. Low responsiveness and low assertiveness.

Drivers

Focus on "what," get to the point quickly, provide options, use facts, focus on results, provide timelines, and make them feel in control. Low responsiveness and high assertiveness.

Amiables

Focus on "why," establish a personal relationship, demonstrate personal commitment, and work as a team. High responsiveness and low assertiveness.

Expressives

Focus on "who," take extra time to discuss everything, give them recognition and approval, ask them how they feel about the product or service, focus on the big picture, and use facts and figures to demonstrate what is possible. High responsiveness and high assertiveness.

Customer lifetime value (CLV)

A prediction of the net profit attributed to the entire future relationship with a customer.

Value proposition

An innovation, service, or feature intended to make a company or product attractive to customers.

Equation for ROI

$$\text{ROI} = \frac{\text{net profit}}{\text{investment}} \times 100$$

Equation for CLV

$$\text{CLV} = \text{dollar value of purchases} \times \text{gross profit percent} \times \text{number of purchases}$$

Wholesalers

They sell the products to other intermediaries, such as retailers, for a higher price than they paid. They buy in bulk and store the products in their own warehouses and storage places until it is time to resell them. They are independently owned, and they own the products that they sell.

Distributors

They take ownership of the product, store it, and sell it at a profit to retailers or other intermediaries. However, the key difference is that distributors ally themselves to complementary products.

Missionary salespeople

A salesperson who provides information to an individual who will influence the purchase decision.

Technical salespeople

Salespeople who are experts in a specific product or service area. They promote and sell the product by demonstrating how it works along with the benefits it can offer potential customers.

Account-based marketing (ABM)

Concentrates sales and marketing resources on a clearly defined set of target accounts within a market and employs personalized campaigns designed to resonate with each account.

Pareto principle

The law of the vital few, or the principle of factor sparsity, states that, for many events, roughly 80 percent of the effects come from 20 percent of the causes.

Economic buyer

The individual decision maker or group within the customer organization who controls the budget and writes the checks for new product purchases.

Infrastructure buyer

Someone who makes sure that purchasing rules defined in corporate governance procedures are followed.

User buyer

Someone who influences the buying decision as the person who will actually use the solution after the purchase decision is made.

Gatekeepers

Individuals who will decide if and when one gets access to members of the buying center.

Stages of B2B buying process

Recognize the need, define the need, search for suppliers, bid analysis, supplier selection, order placement, and performance review.

Value-added resellers (VARs)

A reseller that adds features or service to an existing product and sells it.

Micropurchases with credit cards

These are purchases under $\$3000$, which do not require competitive bids and a procurement officer.

Simplified acquisition procedures

These are purchases under $\$150,000$.

Contracting by negotiations

The government will issue an RFP when it requires a highly technical product or service that exceeds $\$150,000$.

DUNS number

The Data Universal Numbering System. A unique, nine-digit identifier that is issued and maintained by Dun & Bradstreet.

Straight rebuy

The duplicate purchase of the identical goods in the identical amount under the identical terms from the identical supplier.

Affiliative selling relationships

A situation where the buyer needs extensive expertise from the seller to make a decision.

Just-in-time (JIT)

A manufacturing system in which materials or components are delivered immediately before they are required in order to minimize inventory costs.

Customer relationship management systems (CRM)

A customer database that holds all the information regarding a transaction and captures all communication. It collects data on purchasing behaviors and patterns to distribute to relevant departments.

Three primary functions of a CRM system

Operational, analytical, and collaborative.

Operational CRM

Refers to integrating sales, marketing, and customer support to ensure that customer satisfaction is as high as possible.

Data warehouse

A large store of data accumulated from a wide range of sources within a company and used to guide management decisions.

Psychographic segmentation

Values, opinions, attitudes, and lifestyle.

Prescriptive analytics

A type of data analytics that factors information about possible situations or scenarios, resources, and performance, and suggests a course of action or strategy.

The 3 Vs of Big Data

Volume (amount of data), Velocity (speed of data sends/collection), and Variety (various data forms).

Firmographics

Descriptive attributes of firms that can be used to aggregate individual firms into meaningful market segments.

Predictive lead scoring

Recognizes trends in the customer journey and uses them to predict where the customer is in the sales pipeline.

Cannibalization rate

This measures the relationship between sales gains of one product and sales losses of a substitute product.

Boundary spanners

An individual who has the role of connecting an organization's internal network with external sources of information.

Role ambiguity

A situation where people are unclear or uncertain about their role expectation.

Matrix structure

An organizational structure that combines people from different functional areas of the organization.

Affective job satisfaction

A person's emotional feeling about the job as a whole.

Job specification

A written statement of the attributes, skills, knowledge, and experience that a person must have to perform a particular job.

Lilly Ledbetter Fair Pay Act of 2009

Gives victims the right to file a complaint within 180 days of their last discriminatory paycheck.

The Age Discrimination in Employment Act (ADEA)

Prohibits age discrimination against employees who are at least 40 years of age.

Americans with Disabilities Act (ADA)

Prohibits unlawful discrimination against qualified disabled workers.

Yield ratio

The percentage of applicants from one source who make it to the next stage in the selection process.

Biographical information blanks (BIBs)

A series of questions about a person's history that may have shaped his or her behavior.

Halo effect in interviews

Occurs when an interviewer becomes biased because of one positive or negative trait a candidate possesses.

Construct validity

Refers to whether the measure accurately assesses the underlying construct that it claims to assess.

Multiple hurdle model

A type of statistical approach that requires only candidates with high (preset) scores go to the next stages of the selection process.

Formative evaluations

It looks at whether the training program served its purpose and finds ways to improve it, even though it may have been effective.

Summative evaluations

Helps determine which participants need further training and whether or not the training program needs further improvement.

Programmed instruction

An online, self-paced, and highly structured training method that presents trainees with concepts and problems using a modular format.

Just-in-time learning approach

Learning or training approach where learning is available on-demand and can be accessed when the learner needs it.

Draw against commission method

A method of paying commission by which the employee receives a payout at regular intervals.

Distributive justice

Employees receive (at least a portion of) their rewards as a function of their level of contribution to the organization.

Intrinsic rewards

Rewards that are related directly to performing the job, often described as "self-administered" rewards.

Sales performance incentive fund (SPIF)

A financial incentive that encourages sales for a specific item or group of items.

Behaviorally anchored rating scale (BARS)

A rating tool that identifies observable job-related behaviors as they relate to superior or inferior performance using performance descriptions.

Operations budgeting

The revenues and expenses over a period of time, typically a quarter or a year, that a company uses to plan its operations.

Activity-based costing (ABC)

A costing method that first assigns costs to activities, then assigns costs to products based on their consumption of activities.

RACI matrix

A responsibility assignment chart that maps out tasks, milestones, and key decisions and assigns the roles of responsible, accountable, consulted, and informed.

Delphi technique

A method of group decision-making and forecasting that involves successively collating judgements of experts.

Exponential smoothing

A method for forecasting that is similar to a weighted average, except it uses an exponentially decreasing weight for past observations.

Workload method

Determining the size of a sales force by estimating the total workload, determining the number of hours necessary to cover the entire customer base and then dividing it based on the selling time each representative has available.

Incremental method

A method of estimating the sales force that adds additional sales representatives as long as the additional revenue added exceeds the costs.