Chapter 17: Personal Selling and Sales Management

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Chapter 17: Personal Selling and Sales Management
2014-12-04 14:22:26
This card set contains terms and other relevant information from chapter 17 of Marketing The Core 5th edition.
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  1. What is personal selling?
    It is the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designated to influence a person's or group's purchase decision. It could also take place over the telephone and through video teleconferencing and Internet-enabled links between buyers and sellers (p. 388).
  2. What is sales management?
    Planning the selling program and implementing and evaluating the personal selling effort of the firm (p. 388).
  3. What are the three major roles personal selling serves in a firm's overall marketing efforts?
    • First, sales people are the critical link between the firm and its customers. This role requires that salespeople match company interest with customer needs to satisfy both parties in the exchange process.
    • Second, salespeople are the company in the consumer's eyes. They represent what a company is or attempts to be and are often the only personal contact a customer has with the company.
    • Third, personal selling may play a dominant role in a firm's marketing program (p. 388).
  4. What is relationship selling?
    The practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time. It involves mutual respect and trust among buyers and sellers (p. 389).
  5. Who is an order taker?
    A salesperson who processes routine orders or reorders for products that were already sold by the company (p. 390).
  6. What are the two types of order takers and what are their specific duties?
    • First, Outside order takers visit customers and replenish inventory stocks of resellers, such as retailers or wholesalers.
    • Second, Inside order takers, also called order clerks or salesclerks, answer simple questions, take orders, and complete transactions with customers (p. 390).
  7. Who is an order getter?
    A salesperson who sells in conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers' use of a product or service (p. 390)
  8. What is outbound telemarketing?
    It is the practice of using the telephone rather than personal visits to contact current and prospective customers (p.391)
  9. what is the personal selling process?
    Sales activities occurring before and after the sale itself, consisting of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up (p. 392)
  10. What is the prospecting stage and how many types of prospects are there?
    It is the search for a qualification of potential customers. There are three types of prospects (p. 392).
  11. What is the definition of lead, the first type of prospect?
    The first type of prospect is a lead.  It is the name of a person who may be a possible customer (p. 392).
  12. What is the second type of prospect?
    The second type of prospect is called a prospect. This is a customer who wants of needs the product (p. 392).
  13. What is the third type of prospect?
    The third type of prospect is called a qualified prospect. It is an individual that wants the product, can afford to buy it, and is the decision maker (p. 392).
  14. Explain cold canvassing/cold calling
    This approach is used to generate leads either in person or by telephone.  It simply means that a sales person may open a directory, pick a name, and contact that individual or business.  There is a high refusal rate but it can be successful (p. 393).
  15. What is the Telephone Consumer Protection Act of 1991?
    This act contains provisions to curb abuses such as early morning or late night calling. Additionally federal regulations require more complete disclosure regarding solicitations, include provisions that allow consumers to avoid being called at any time through the Do-Not-Call Registry, and impose fined for violations (p. 393).
  16. What does the preapproach stage involve?
    the preapproach stage involves obtaining further information on the prospect and deciding on the best method of approach (p. 393).
  17. What does the approach stage involve?
    The approach stage involves the initial meeting between the salesperson and the prospect, where the objectives are to gain the prospect's attention, stimulate interest, and build the foundation for the sales presentation itself and the basis for a working relationship (p. 394).
  18. What is the presentation stage?
    The presentation stage is at the core of the order-getting selling process, and its objective is to convert a prospect into a customer by creating a desire for the product or service (p. 394).
  19. What three major presentation formats exist?
    (1) stimulus-response format, (2) formula selling format, and (3) need-satisfaction format (p. 394)
  20. What is the stimulus-response presentation format?
    The stimulus-response presentation format assumes that given the appropriate stimulus by a salesperson, the prospect will buy. With this format the salesperson tries one appeal after another, hoping to hit the right button (p. 394).
  21. What is the formula selling presentation format?
    The formula selling presentation format is based on the view that a presentation consists of information that must be provided in an accurate, thorough, and step-by-step manner to inform the prospect. A popular version of this format is the canned sales presentation, which is memorized, standardized message conveyed to every prospect (p. 395).
  22. What is the need-satisfaction presentation format?
    The need-presentation format emphasizes probing and listening by the salesperson to identify the needs and interest of prospective buyers. Once these are identified, the salesperson tailors the presentation to the prospect and highlights product benefits that may be valued by the prospect (p. 395).
  23. What are the two styles that are common with need-satisfaction format?
    The two styles are adaptive selling and consultative selling.
  24. What is adaptive selling?
    Adaptive selling is a need-satisfaction sales presentation style that involves adjusting the presentation to fir the selling situation.
  25. What is consultative selling?
    Consultative selling is a need-satisfaction sales presentation style that focuses on problem style that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution (p. 395).
  26. What are objections?
    Objections are excuses for not making a purchase commitment or decision. some objections are valid and are based on the characteristics of the product or service or price. However, many objections reflect prospect skepticism or indifference.
  27. How many common techniques are used to deal with objections?
    There are six techniques which include: acknowledge and convert the objection, postpone, agree and neutralize, accept the objection, denial and Ignore the objection (p. 396).
  28. State and describe the first technique that is used to deal with objections.
    Acknowledge and convert the objection: This technique involves using the objection as a reason for buying. For example, a prospect might say, "The price is too high." the reply: "yes, the price is high because we use the finest materials. Let me show you..." (p. 396).
  29. State and describe the second technique that is used to deal with objections.
    Postpone. The postpone technique is used when the objection will be dealt with later in the presentation: "I'm going to address that point shortly. I think my answer would make better sense then." (p. 396)
  30. State and describe the third technique that is used to deal with objections.
    Agree and neutralize. Here a salesperson agrees with the objection, then shows that it is unimportant. A sales person would say, "That's true. Others have said the same. But, they thought that issue was outweighed by other benefits." (p. 396)
  31. State and describe the fourth technique that is used to deal with objections.
    Accept the objections. Sometimes the objection is valid. Let the prospect express such views, probe for the reason behind it, and attempt to stimulate further discussion on the objection (p. 396).
  32. Sate and describe the fifth technique that is used to deal with objections.
    Denial. When a prospect's objection is based on misinformation and clearly untrue, it is wise to meed the objection head on with a firm denial (p. 396).
  33. State and describe the sixth technique that is used to deal with objections.
    Ignore the objection. This technique is used when it appears that the objection is a stalling mechanism or is clearly not important to the prospect (p. 396).
  34. What is the closing stage?
    The closing stage in the selling process involves obtaining a purchase commitment from the prospect. This stage is the most important and the most difficult because the salesperson must determine when the prospect is ready to buy (p. 396).
  35. What three closing techniques are used when a salesperson believes a buyer is about ready to make a purchase.
    • trial close
    • assumptive close
    • urgency close
  36. What is trial close?
    A trial close involves asking the prospect to make a decision on some aspect of the purchase: "Would you prefer the blue or gray model?" (p. 397)
  37. What is an assumptive close?
    An assumptive close entails asking the prospect to consider choices concerning delivery, warranty, or financing terms under the assumption that a sale has been finalized (p. 397).
  38. What is an urgency close?
    An urgency close is used to commit the prospect quickly by making reference to the timeliness of the purchase "low interest financing ends next week" (p. 397).
  39. What is the follow-up stage?
    The follow-up stage includes making certain the customer's purchase has been properly delivered and installed and difficulties experienced with the use of the item are addressed (p. 397)
  40. Describe sales management and the three interrelated function.
    Selling must be managed if it is going to contribute to a firm's marketing objective. Sales management consists of three interrelated functions: (1) sales plan formulation, (2) sales plan implementation, and (3) salesforce evaluation (p. 397).
  41. What is a sales plan?
    The sales plan is a statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed. Sales plan formulation involves three tasks: (1) setting objective, (2) organizing the salesforce, and (3) developing account management policies (p. 398).
  42. Why is it important to set objective?
    Setting objectives is central to sales management because this task specifies what is to be achieved. In practice, objectives are set for the total salesforce and for each salesperson (p. 398).
  43. Describe the process of organizing the salesforce.
    Establishing a selling organization is the second task in formulating the sales plan. Companies organize their salesforce on the basis of (1) geography, (2) customer, or (3) product or service (p. 398)
  44. What is major account management?
    The practice of using team selling to focus on important customers o as to build mutually beneficial, long-term cooperative relationships; also called key account management (p. 398).
  45. What are account management policies?
    They are policies that specify who salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out (p. 399).
  46. Sales plan implementation
    The sales plan is put into practice through the tasks associated with sales plan implementation.  The three major tasks involved in implementing a sales plan are (1) salesforce recruitment and selection, (2) salesforce training, and (3) salesforce motivation and compensation (p. 400).
  47. What is a job analysis?
    A job analysis is a study of a particular sales position, including how the job analysis is used performed and the tasks that make up the job (p. 400).
  48. What is a job description?
    Information from a job analysis is used to write a job description, a written document that describes job relationships and requirements that characterize each sales position. It explains (1) to whom a salesperson reports, (2) how a salesperson interacts with other company personnel, (3) the customers to be called on, (4) the specific activities to be carried out, (5) the physical and mental demands of the job, and (6) the types of products and services to be sold (p. 400).
  49. What qualifications are often expected for order-getting sales positions?
    • imagination and problem-solving ability
    • strong work ethic
    • honesty
    • intimate product knowledge
    • effective communication and listening skills
    • attentiveness reflected in responsiveness to buyer needs and customer loyalty and follow-up (p. 401)
  50. Salesforce motivation and compensation
    A sales plan cannot be successfully implemented without motivated salespeople. Research on salesperson motivation suggests that (1) a clear job description, (2) effective sales management practices, (3) a personal need for achievement, and (4) proper compensation, incentives, or rewards will produce a motivated salesperson (p. 401).
  51. What is a straight salary compensation plan?
    Under a straight salary compensation plan, a salesperson is paid a fixed fee per week, month, or year (p. 401).
  52. What is a straight commission compensation plan?
    With a straight commission compensation plan, a salesperson's earnings are directly tied to the sales or profit generated (p. 401).
  53. What is a combination compensation plan?
    a combination compensation plan contains a specified salary plus a commission on sales or profit generated (p. 401).
  54. What is a sales quota?
    Sales quotas are specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period (p. 402).
  55. What is salesforce automation (SFA)?
    The use of technology to make the sales function more effective and efficient (p. 402).