Final Exam

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Author:
kylie.steinhoff
ID:
206267
Filename:
Final Exam
Updated:
2013-03-10 21:02:50
Tags:
19 20 21
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Description:
Ch. 19, 20, 21
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  1. Personal Selling
    • Paid personal communication that attempts to inform customers and persuade them to purchase products in an exchange situation
    • Personal dialogue b/w buyer and seller
  2. Advantage of Personal Selling
    Flexible
  3. 9 Myths on Selling
    • Good salespeople are born and not made
    • Good salespeople are good talkers
    • Good salespeople can sell anything
    • Good salesperson can sell to anyone
    • Selling is fun and games
    • Good salesperson never takes no for an answer
    • Locker room syndrome
    • People do not want to buy
  4. Locker room syndrom
    Most sales do not take place on the golf course
  5. 7 Stages of selling
    • 1. Prospecting
    • 2. Preparing
    • 3. Approach
    • 4. Presentation
    • 5. Overcoming Objections
    • 6. The Close
    • 7. Follow-up
  6. Prospecting Systems
    • Endless Chain
    • Center of Influence
    • Personal Observation
    • Junior Salespeople (spotters, bird dogs)
    • Cold Canvas
    • Cool Canvas
  7. Center of Influence
    One family or few families that run the show
  8. Personal Observation
    Keep your ears and eyes open
  9. Junior Salespeople (spotters, bird dogs)
    Do prospecting while experienced sales reps do the selling
  10. Cold Canvas
    • Calling on every individual company
    • ex: door to door
  11. Cool Canvas
    Look for certain qualifications
  12. Preparing (stage 2)
    Do research before contacting client
  13. Approach (Stage 3)
    • First impression
    • Hoped will smoothly flow into presentation
    • Call buyer by name
  14. Presentation (Stage 4)
    • Figuring out how to close
    • Early claims should be conservative
    • Never knock your employer
    • Have the prospects test the product
  15. Overcoming Objections (Stage 5)
    • Objections not always a bad thing
    • Answer objection right away
  16. Methods for Handling Objections
    • Direct denial - not suggested
    • Indirect denial - most popular
    • Boomerang - throw objection back at them
    • Compensation - similar to boomerang
  17. The Close (Stage 6)
    Try to avoid interrupting 3rd party
  18. Closing Methods
    • Continued affirmation
    • Assumptive close
    • Narrowing the options
    • Standing room only
    • Asking for the order
    • Trap close
  19. Continued Affirmation
    Ask which one you like, not each individual
  20. Assumptive Close
    • Assume someone will buy
    • Ex: do you want a box, cash or credit
  21. Narrowing the Options
    Immediately remove things customer doesn't like
  22. Standing Room Only
    More popular if someone else likes it
  23. Trap Close
    Use when one major objection such as price
  24. Follow-Up Stage (Stage 7)
    • Motivating Salespeople
    • Compensating Salespeople - better to have straight salary compared to straight commission
  25. Types of Sales Promotions
    • Coupons
    • Premiums
    • Contests and Sweepstakes
    • Trade Promotions as a type of sales promotion
  26. Coupons
    • Use has sky rocketed
    • Good for introducing new products
    • Helps maintain market share
    • Grants price reduction to those sensitive to price
    • Most common distribution through newspapers
  27. **Cross Coupon
    • one brand having coupons for different brand
    • called cross ruff
  28. Premiums
    • When making a purchase, you get another good free of reduced
    • Ex: Prize in the cracker jack box
  29. Contests
    Game of skill, some skill
  30. Sweepstakes
    Game of chance
  31. Trade Promotions as a type of sales promotion
    Wouldn't be targeted to final consumer
  32. Athletes/Celebrities
    • Use local athletes
    • Use American movie stars
  33. International Promotion
    • Push money
    • Case allowance
    • Slotting allowance
  34. Push Money
    money paid to salespeople every time they sell a product
  35. Case Allowance
    Provides discount to retailer based on volume of product ordered
  36. Slotting Allowance
    • Direct payment to retailer for stocking product
    • Ex: Northland cranberries paying paying Trigs to carry product
  37. Price
    Value placed on what is exchanged
  38. **Barter
    Trade where there is no money exchanged
  39. Price Competition
    • Ex: Geicko
    • Viable Strategy
  40. Non-Price Competition
    • Competing for better quality
    • Viable Strategy
    • Ex: State Farm
  41. Horizontal Price Fixing
    • Competing firms agree to set prices
    • Illegal
  42. Vertical Price Fixing
    • Different channels of distribution
    • Illegal for manufacturer to dictate price
  43. Bait and Switch
    • Promoting an item at an unrealistically low price to serve as "bait" and then attempting to steer customer to more expensive options.
    • Illegal
  44. Price Objectives
    • Profit Maximization
    • Return on Investment
    • Market Share
    • Status Quo
    • Survival
    • Product Quality
    • Price Lining
  45. Profit Maximization
    Setting prices to get the most profit
  46. Return on Investment
    15%-40%
  47. Market Share
    Objective to get 30%, what price to get there
  48. Status Quo
    Helping things the way they are
  49. Survival
    Setting prices to not go bankrupt
  50. Product Quality
    Some will pay more for better quality
  51. Price Lining
    • Limited number of prices for lines of merchandise
    • Ex: 3 different tables of ties w/ 3 different prices
  52. FOB Destination
    Don't pay for shipping, shipping is included
  53. FOB Factory
    Price at factory, you pay shipping
  54. Zone Pricing
    Different locations have different prices
  55. Uniform Delivered Pricing
    • Postage stamp pricing
    • Entire country is viewed as one zone
  56. List Prices
    Prices quoted to customers w/o any price adjustments
  57. Rebates
    • An adjustment is made to list price, usually coming from manufacturer
    • They know many people won't send it back in
  58. **2/10, net 30
    Bill is due in 30 days, but if you pay w/in 10 days you get a 2% discount
  59. Trade (functional) discount
    Will give discount if they perform certain functions for you
  60. **Keystoning
    Retailer doubles the wholesale price
  61. **Break Even Analysis
    • Fixed Costs/(Selling Price - Variable Cost)
    • F=SP-VC
  62. Mark-Up (Cost)
    • (Selling Price - Cost)/Cost
    • SP-C/C
  63. Mark-Up (Selling Price)
    • (Selling Price-Cost)/Cost
    • SP-C/C
  64. Most flexible of the 4 P's
    Price
  65. Skimming Pricing
    Starting w/ high price, then gradually comes down
  66. Skimming Price Advantages
    • In early life cycle, price is less important
    • Segmenting market based on income
    • Can be useful in feeling out demand
    • Can recover costs quicker
  67. Penetrating Pricing
    • Starting w/ a low price
    • Cheaper per unit to make
  68. Parity Pricing
    Pricing at the competitive level
  69. Captive Pricing
    • Basic product in product line is priced low
    • Ex: Free Gillette handle, need to pay for blades
  70. Psychological Pricing
    • Odd even pricing
    • Customary pricing
    • Prestige pricing
    • Multiple unit pricing
    • Reference pricing
  71. Odd even pricing
    People are more attracted to prices ending in odd numbers
  72. Customary Pricing
    Based on tradition
  73. Prestige Pricing
    Set prices at artificially high levels because people associate price w/ quality
  74. Multiple Unit Pricing
    Ex: Six pack
  75. Reference Pricing
    • Pricing a product at a moderate level and positioning it next to more expensive brand or model
    • Ex: Buick Sentry
  76. Professional Pricing
    Lawyers, consultants charge
  77. Promotional Pricing
    • Price leaders
    • Special event pricing
    • Superficial discounting
    • Experience curve pricing
    • Comparison discounting
  78. Price Leaders
    • Price something below cost or cheaply to increase the sales of regular merchandise
    • Ex: Kwik Trip and bananas
  79. Special Event Pricing
    Ex: Sale on St. Patrick's Day
  80. Superficial Discounting
    • Illegal in some states
    • Ex: Was $89 now $79
  81. Experience Curve Pricing
    Experienced companies can change a lower price because they operate more efficiently
  82. Comparison Discounting
    • Setting a price and comparing it w/ a higher price
    • Could compare w/ products previous price, competing brand, same product @ a different outlet, suggested retail price
  83. **Buyers' Perceptions
    how important price is to target market
  84. Value Conscious
    Concerned about price and quality
  85. Price Conscious
    Striving to pay the low prices
  86. Prestige Sensitive
    Purchasing products that signify prominence and status
  87. Consumer Trends
    • More and more consumers are less interested in places w/ high markups
    • More people are going to Costco or Sams Club
  88. Airbus
    • Multibillion dollar company
    • If it's not Boeing, it's Airbus
    • Headquartered in France
    • Consortium in 4 different Countries
  89. 4 Countries Airbus has consortium
    • France
    • Spain
    • Germany
    • Britain

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