MKTG 3328 PASS EXAM 1

2. "Delighters": Psychological Attributes

- Ability to respond to requests, being innovative, consideration for the customer, engagements to satisfy, able to do the job right - center of the plate. (keeps)

1. "Must-Haves": Functional Attributes

- Meeting standards, operating trouble-free, Performing as expected, Product uniformity- (gets)

What is a needs gap?

1) "in-between" of desired and actual state; How much is that problem costing you?

What are the three categories of business buyers?

1) Firms, Institutions, Governments

What is trust?

1) The extent of the buyer's confidence that he or she can rely on the salesperson's integrity. Integrity- quality of honesty moral principle, moral uprightness.

6) After-sales Service is one characteristic of the Augmented Product. What are some Service Dimensions that may meet the needs of a customer? When performed well, these may lead to superiority over competitors.

1. Augmented product: Warranty, Installation, Delivery & credit 2. Actual Product: Brand name, Quality level, Packaging, Design, Features.

3. Enhancing Customer relationships

1. Building value through post-sale follow-up. 2. Assessing value and relationship performance 3. Increasing customer value through self-leadership and teamwork

What is meant by the term "Basis of the Bargain"?

1. Buyer relies on what the seller says

If a customer is thinking "is this sales person being honest?" Which element of trust does it indicate.

1. Candor

What is an End Customer? Does the Business Buyer spend much time focusing on meeting the End Customer's needs? Why or why not?

1. End-Customer Needs: Business buyers perception of what their customer needs.Yes. "What does my customer need? What have they expressed?"

2. Developing Customer Relationships

1. Engaging prospects/customers through sales dialog and presentations 2. Co-creating and validating customer value 3.Earning customer commitment

What are the five components of trust (Trust Builders)? Describe each one of them.

1. Expertise: 2. Dependability: 3. Candor: 4. Customer Orientation: 5. Compatibility:

What are the two types of product liability that can be created by a salesperson?

1. Express warranty: 2. Misrepresentation:

What are some ways to deal with unethical behavior?

1. Follow the leader (Leader pays attention to ethics) 2. Leader Selection ( Integrity, Values) 3. Establish a code of ethics 4. Create ethical structures (office of ethics) 5. Appropriateness of gift giving 6. Use of expense accounts 7. Way in which unethical demands by a prospect should be dealt with.

What are the types of knowledge (Knowledge Bases) that help to build trust and relationships with customers?

1. Market/Customer Knowledge 2. Company- 3. Industry 4. Competitor 5. Technology- 6. Price/Promotion 7. Product- 8. Service-

What are the five strategies that a salesperson can use to influence the buyer's decision?

1. Modify the product offering being proposed (continue discussion even through decision has already been made) 2. Alter the buyer's beliefs about the proposed offering (change belief of product) 3. Alter the buyer's beliefs about the competitors offering (be careful on how you slam competitors (have backup info) 4. Alter the Importance Weights (don't make people feel they are stuck) 5. Call attention to neglected Attributes (other things that are important)

What are the two categories of a business buyer's needs that are found in the Needs Gap?

1. Organizational needs 2. Individual needs

What are the three common types (categories) of sales positions?

1. Sales Support 2. New Business 3. Existing Business

2. Selling strategy

1. Sales territory 2. Each customer 3. Each sales call

What contributes to the first phase ( Initiating customer relationships) being successful?

1. Selling Foundations 2. Selling strategy

What are the contributions of personal selling to businesses and the economy?What is meant by the term "Diffusion of Innovation"?

1. Stimulating the economy 2. Diffusion of Innovation: Distribution of new products, services, and ideas to the members of society 3. Generating revenue and providing feedback through research 4. Maintaining long-term relationships with customers 5. Providing expertise and coordinating activities with the selling firm

Describe each of the five alternative personal selling approaches.

1. Stimulus Response Selling: 2. Mental States Selling: 3.Needs Satisfaction Selling: 4.Problem Solving Selling: 5.Consultative Selling:

1. Initiating customer relationships

1. Strategic Prospecting 2. Assessing situation 3. Discovering needs 4. Planning value based sales dialog and presentation

Business Buying Process

1. [Initiating the Relationship] 2. [Developing the Relationships] 3. [Enhancing the Relationships]

5) The salesperson must have knowledge of the product that is being offered to customers. What are the three levels of a product that a salesperson must know?

1. core benefit 2.actual product 3. augmented product

1. Selling foundations

1. trust and ethics 2. understanding buyers 3. communication skills

Trust-based sales definition

1. understanding customer value > 2. creating and communicating customer value > 3. delivering and increasing customer value

Transaction-Focused Traditional

: doesn't care much about customer, only cares on benefits for salesperson and about the sale. They want to make the sell, the sales person based.

- Functional need:

A new task needs to be performed with the product. "We need cell phones that allow one to use a keyboard"

1. Features:

A quality or characteristic of a product or service that is designed to provide value to a buyer. "What a product is/has/characteristic"

5. Compatibility:

A salesperson's commonalities with other individuals

Stimulus Response Selling:

A serious of questions arranged to make the customer say yes to them, until he/she says yes to the entire sales pitch.

What does the term adaptive selling mean?

Ability of salespeople to change their sales messages based on various customer situations.

Higher Levels of Demand Fluctuation:

Acceleration

What are the two areas that have an influence on the three phases of trust-based sales process

Areas 1. Selling Foundations: Trust and ethics. Understanding Buyers. Communication Skills. 2. Selling Strategy Based on Customer Needs and Value: Sales Territory. Each Customer. Each Sales Call.

Mental States Selling:

Assumes the buying process for most buyers is essentially identical and that buyers can be led through certain mental states, (less trust based)

2. Actual Product:

Brand name, Quality level, Packaging, Design, Features.

- Situational need:

Caused by circumstances. "We need new cellphones because many are broken"

1. Market/Customer Knowledge

Companies provide extensive training to prepare salespeople for the field:Market/Customer- understand the markets they serve and their customers, including needs, personalities, and communication styles. Benefit- ability to 1) develop and implement effective selling strategies, and 2) clearly communicate relevant solutions.

What is a Pioneer?

Constantly involved in new products. Put deals that companies don't have and go into areas that others don't

1) If given a question that a customer would ask himself/herself about a salesperson, be able to identify the component of trust being considered. For example, a customer may be thinking, "Is the salesperson being honest?" This could be a consideration of the salesperson's candor. See Exhibit 2.1 (PPT) and the text for examples of questions.

Customer perspective of trust 1. Expertise: Do they know what they are talking about. (knowledge,resources) 2. Dependability: Do they keep promises? 3. Candor: is the sales person honest and presenting things fairly. 4. Customer Orientation: -Does the sales person care about the partnership. - Will they go out of their way to fix a mistake. (wrong order,late delivery ect...) 5. Compatibility: Will the buyer like doing business with the salesperson and his company.

Deceptive Practices:

Deceive, Hustle, Scam, Exaggerate, Withhold Information, Bluff

Different Categories of Unethical Behavior:

Deceptive Practices: Non-Customer - Illegal Activity:

Illegal Activity:

Defraud, Con, Misuse Company Assets

1. Assertiveness:

Degree persons holds to opinions and controls by directing thoughts and actions of others

"Diffusion of Innovation"

Distribution of new products, services, and ideas to the members of society

When given some types of salesperson behavior, be able to identify which ones are unethical.

Examples: 1. Show concern for won interests 2. Passing the blame for something they did wrong 3. Take advantage of the poor or uneduacated 4. Accept favors from customer so seller feels obliged to bend policies 5. Sell products services that people do not need 6. Give answers when they don't know them 7. Pose as a market researcher when doing phone sales 8. Sell dangerous or hazardous products 9. Withhold information 10. Exaggerate benefits of product 11. Lie about availability to make sale 12. Lie to competitors 13. Falsify product testimonials

Problem Solving Selling:

Extension of need satisfaction selling, involves finding alternative solutions for satisfying buyer needs.(more trust-based)

2. Misrepresentation:

False claims by a salesperson. "This machine only takes one person to operate it".

Consider Features and Benefits. Which should receive the most emphasis when a salesperson is showing the customer a product? Should a salesperson only point out the features of a product without explaining the benefits of those features?

Features, but if anything both.No.

3. Candor:

HONESTY of the spoken word, being upfront with others, can't be misleading

Consultative Selling:

Helping customers attain strategic goals by using products, services, and expertise of the selling organization. (more trust-based)

Customers evaluate their experience after purchasing and using a product. What they consider is represented by a two-factor model. Which of the two factors has greater influence on the buyer's level of satisfaction?

INTERPERSONAL COMMUNICATION/BEHAVIORS HAS THE GREATEST INFLUENCE

1) During which stage of the buying process will the salesperson have the best chance for influencing the Business Buyer's Buying Process?

Initiating the relationship

Regarding the 5 personal selling approaches, which are less adaptive vs. more adaptive? Which require less skill to use? Which selling approach is covered in this class through the worksheets and role play?

Less Adaptive 1. Need Satisfaction 2. Problem Solving 3. Consultative Selling More Adaptive 4. Stimulus Response 5. Mental States. Class Role Play; Need Satisfaction

2. Responsiveness:

Level of feelings and sociability displayed by individual

1. Sales Support

Missionary, Detailers, Technical Support Salespeople

Purchasing Professionals:

More rationale approach

1) Review "Procedures for Evaluating Suppliers and Products". Describe how a multiattribute model is developed and applied by buyers to make a purchase decision.

On the basis of the category being observed like USD. Used for evaluating suppliers and products. Incorporates weighted averages across desired characteristics.

3. Existing Business

Order-takers, Route Salespeople

Non-Customer

Oriented Behavior: Pushy, Hard Sell, Fast Talking, High Pressure (Unethical)

3. [Enhancing the Relationships]

Performance Feedback and Evaluation

Buyers have different communication styles. A four-cell matrix (Figure 3.7) presents four types of communication style. What are the four types and the two personality traits used to form the matrix?

Personalities 1. Assertiveness: 2. Responsiveness: DIFFERENT TYPES 1. Low Assertiveness: 2. High Assertiveness: 3. Low Responsiveness: 4. High Responsiveness:

Three phases of trust-based sales process (Figure 1.4).

Phases 1. Initiating customer relationships 2. Developing Customer Relationships 3. Enhancing Customer relationships

2. New Business

Pioneers, Order-Getters

2. Dependability:

Predictability of a person's actions (thinking of how you'll react to something, also remember to have consistency) ex: don't shave your head

1. [Initiating the Relationship]

Recognition of the need > Determination of Desired Characteristics > Description of Desired Characteristics >

Describe the form of personal selling that is called "trust-based relationship selling".

Requires that salespeople: earn trust, meet customer needs, create communicate & deliver value

2. [Developing the Relationships]

Search and Qualification of Potential Sources > Acquisition & Analysis of Proposals > Evaluation & Selection of Suppliers >

There are different "Types of Buyer Needs" (text, pg. 60). If given a scenario with a customer expressing a need, be able to identify the type of need being held by the customer. See Exhibit 3.2 for examples of each need.

Situational Needs: I need a new cell phone bc mine is broke and I am heading out of town Functional Needs: I need a cell phone with a keyboard Social Needs: I need a state of the art cell phone so I will be recognized as a tech savvy person. Psychological Needs: I need a cell phone with an extended warranty Knowledge Needs: I need comprehensive training on how to use a new cell phone.

What are the three types of buying decisions? How are they different from one another?

Straight Rebuy (Low effort/ research.) Order them for years from office depot. Ex: Paper clips bought at Sam. Modified Rebuy (medium effort/ research) Extremely important to sales people, open up the door for a bid, for you to modify better. New Task (high effort/research) New unfamiliar item It needs satisfaction selling.

4. Customer Orientation:

The act of salespeople placing as much emphasis on the customer's interest as their own. Understand the customer before selling anything. Should be putting the customer at the center of the plate.

2. Benefits:

The added value or favorable outcome derived from features of the product or service seller offers. "What a product does/outcome that comes from that feature/products"

- Psychological need:

The need reflects a desire to feel a certain way. "We want a good brand of cell phone so we can rely on it to work when needed.

- Knowledge need:

The need to increase understanding of something. "We need training so all employees know how to use them"

- Social need:

There is a need to be in sync/in tune with others. "We need a state-of-the-art cell phone so we will be recognized as technology-savvy.

Technology can be a friend or a foe of a salesperson. How does a salesperson properly use technology to build successful relationships with customers?

Use technology for World Wide Web, E-mail, Pagers, Cellphones, Voicemail

1. Augmented product:

Warranty, Installation, Delivery & credit

1. Express warranty:

Way in which a salesperson gives warranty/ guarantee to a customer, obligating the company to do the same.

What is a Missionary Salesperson?

Work for manufacturers "spread the word" conversion. Selling in which the salesperson's role is to inform an individual with the power to influence others to buy a product, rather than to make a direct sale to that person.

(RFP) Request for Proposal:

a form developed by firms and distributed to qualified potential suppliers that help suppliers develop and submit solution proposals [what they're looking for; responding to needs]

7. Product

a thorough understanding of their product offerings and the various sources of value they provide. Benefit- be perceived (by the customer) as experts and capable of accurately matching solutions to the needs of the customers.

Derived Demand:

associated w/consumer goods

Needs Satisfaction Selling:

based on the notion that the customer is buying to satisfy a particular need or set of needs (more trust-based)

Multiple Buyer-Seller Influences:

buying teams

Close Buyer-Seller Relationships

close relationship more than ever

Trust- Based Relationship:

focuses on having more expertise, listening, conversation, solve problems, ask questions, letting customers talk and plan future, there is a mutual benefit profit for both, they close the sell successfully and become an ally and consultant and focuses on what the customer wants and needs

Concentrated Demand:

most purchases made; small number of large buyers

1. Expertise:

the ability, knowledge, and resources to meet customer expectations

3. Industry

the dynamics, structure, culture, and forces that affect the industry(s) in which they work. Benefit- ability to 1) develop and execute effective selling strategies, and 2) be viewed as a market info resource.

4. Competitor

their competitors and respective market offers and how they are perceived in the market. Benefit- to position their products against those of their competitors'.

5. Technology

understand how utilize sales technology hardware and software (internet, CRM, laptops, smart phones) Benefit- to leverage technology to me more competitive...work smarter not harder.

6. Price/Promotion

understand the details of, and how to manage, promotional programs, and the pricing policies of their products. Benefits- ability to 1) facilitate their customer's participation in promotional programs and 2) effectively negotiate terms.

2. Company

understand their company's culture mission goals policies and procedures, benefit- ability to effectively and accurately represent the company when interacting (negotiating) with its prospective and current customers.

8. Service

understand their company's service capabilities, including limitations, fees, time-frames, and the value they add. Benefit- ability to match their company's service capabilities to the needs of their customers. More than product- outside product core: MKTG support, Advertising with store logo, Delivery, Sampling at store. These are features of your firm/product- address customer needs.

Should the features and benefits explained by the salesperson be related to the customer's Needs Gap?

yes.