Sales Management Exam 2

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  1. These buy finished products or services with the intention to resell them to businesses and consumers.
  2. This is how much you make on each sale
    Profit Margin
  3. This refers to how quickly a product will sell
  4. this is how much _____ it takes to sell the product
  5. What is ROI?
    Return on Investment
  6. These develop detailed specifications for a product and then invite qualified suppliers to submit bids
    Government Agencies
  7. In Government agencies, the contract is awarded to who?
    the lowest bidder
  8. This is the order of rules to do business with government or business agencies.
    Procurement process
  9. Projected needs are:
    what you project your needs to be like in the future
  10. This is the notice of new federal sales opportunities
    Commerce business daily
  11. This publishes information on a state-wide business
    national association of state purchasing
  12. _____ _______ _________ have a website that tells small business how to sell goods.
    Small business administration
  13. In Organizational buying & selling - who makes purchase decisions?
    Purchasing agents
  14. What is increased as customers become global businesses?
  15. What is the average time needed to complete a purchase in Organizational Buying & Selling?
    5 months
  16. This results from sales to OEMs and resellers based on the product demand.
    Derived Demand
  17. What are the eight steps of the organizational buying process?
    • 1. Recognition of a Need
    • 2. Definition of the Product Type Needed.
    • 3. Development of detailed specifications
    • 4. Search for qualified suppliers
    • 5. Acquisition and analysis of proposals
    • 6. Evaluation of proposals and selection of a supplier
    • 7. Placing receiving the order
    • 8. Evaluation of product performance
  18. Creeping commitment is what?
    the customer's commitment to a particular course of action while following the buying process.
  19. This is when the potential suppliers participate in the actual design process for a new product.
    Early procurement involvement or early supplier involvement.
  20. Define Straight Rebuy.
    Typically customer has lots of knowledge. Will have purchased product number of times.
  21. What do sales people need to do in order to break into the "straight rebuy"?
    Provide compelling information - this is often failed
  22. Define modified rebuy.
    Customer has purchased product in past or similar product. Customer interested in obtaining new information.
  23. What triggers a Modified Rebuy?
    Typically triggered by supplier performing unsatisfactory or when new product comes available.
  24. What triggers a straight rebuy?
    Triggered by Internal Event.
  25. Define New Task
    Customer purchasing products/services for first time. Customer has not made purchase decision so knowledge is limited. Typically will go through all 8 buying process steps.
  26. What buying situation has a lot of risk for the customer?
    New Task
  27. What are a couple of the main players in the Buying Center?
    Gatekeepers & Deciders
  28. These people control the flow of information and limited the alternatives considered.
  29. These people ensure that purchase are consolidated under one contract to reduce costs and increase quality.
  30. These people make the final choice in the buying center.
  31. Who usually selects the vendor and places the order for straight rebuys?
    Purchasing Agent
  32. These refer to the performance of the product.
    Rational Needs
  33. What are the three organizational factors?
    Economic, Quality, and Service Criteria
  34. What are the three individual factors?
    • Needs of buying center members
    • Personal risks
    • Personal needs
  35. Under Economic Criteria; This method is used for determining the cost of equipment or supplies over their useful lives and helps insure that a product with a higher initial cost will have a lower overall cost.
    Life-cycle costing
  36. This is when suppliers and customers work together to reduce costs and still provide the required level of performance.
    Value analysis
  37. This term refers to minimizing the chances of a poor decision by converting buying decisions into straight rebuys.
    lost for good
  38. This minimizes the inventory by having deliveries just in time for assembly into final product.
    Just IN Time inventory control (JIT)
  39. This is a form of JIT where the supplier manages inventory levels for customers.
    Automatic replenishment
  40. This refers to computer systems that share data across companies.
    Electronic Data Interchange
  41. These are used to forecat sales, develop a production schedule, and order parts and raw materials with delivery dates.
    Material Requirements planning
  42. This a strategy by which organization buyers evaluate the relative importance of suppliers and determine with whom they wish to develop partnerships.
    Supply Relationship Management
  43. This is the amount that is spend with each vendor and for what products.
    Annual spend
  44. this is the ability to consolidate purchases and negotiate better terms
  45. Under vendor analysis - what criteria to buyers rate the supplier on?
    price, quality, performance, and on time delivery.
  46. This is making purchasing decisions that do not damage the environment
  47. Sales people should listen ___% of the time and talk about ____% of the time.
    80% / 20%
  48. Speaking-listening differential refers to the fact that customers can listen to words at a rate of __% faster that which sales people can talk.
  49. Sales people need to do what after they ask a difficult question?
    Refrain from speaking.
  50. Movement by the prospect is a negative sign. true or false?
  51. If a customer is blinking rapidly - this means what?
    They're worried about you and they are stressed
  52. Test Question:
    It is late in the day when Steven is calling on a favorite customer. She is tired but invites him in and sits back with hands and legs uncrossed. This is a sign of:
    Exhaustion, Boredom, Indifference, Positive?
  53. When is it okay to shake hands?
    Prospects choice
  54. The zone that students are seated in to the professor in a classrom is referred to as the what?
    Public zone.
  55. The zone closest to a person is the what?
    intimate zone
  56. This is the time between sending a message and getting a response to it.
    Response time
  57. What are the three things you need to consider when making a decision on new products to add (as a reseller)?
    Profit Margin. Your Turnover. Your Effort
  58. Purchase made by their customer's customers are based on what?
    drive demand
  59. A salesperson for a sign company was trying to get a customer to buy a new kind of tool called floor graphics. The Customer had purchased advertising before, but not this kind. This would be an example of a what?
    modified rebuy
  60. What are the primary two types of needs?
    Emotional and Rational
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Sales Management Exam 2
2015-03-25 04:26:33

Sales test 2
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