D077 Concepts in Marketing, Sales, and Customer Contact
What are the 6 steps to the sales process?
1- Prospecting and Qualifying 2- Approaching Customers 3- Presenting and demonstrating the product 4- Handling objections 5- Closing 6- Following Up
Mixed Negotiations
A blend of inductive and deductive negotiation
Which scenario represents personal selling? - The marketing department uses the four Ps to determine the brand message. - A customer orders a product online using a website. - A customer goes to a pet store and discusses the best type of turtle food with a salesperson. - The marketing team collaborates with the sales organization to develop appropriate tools for advertising.
A customer goes to a pet store and discusses the best type of turtle food with the sales person
Bait and switch
A form of fraud where customers are "baited" by advertising that is for a product or a service at a low price. Customers then discover that the advertised good is not available and are "switched" to a more expensive product.
The chief financial officer (CFO) is reviewing expenditures and notes that purchases have increased significantly since the new purchasing manager was hired. After some investigation, the CFO realizes that the purchasing manager seems to approve any and all purchases without challenging the expenditure. Based on the model of dual concern theory, which conflict handling style is being exhibited by the purchasing manager? - Compromise - Competition - Accommodation - Avoidance
Accomodation
Jake is revising a sales presentation based on new information concerning his customers. The new presentation will now focus on what the current customers want to know about the produce, its shelf life, and its nutrient profile. Which trend is Jake integrating into the presentation? - Internet of things - Adaptive selling - Social networking - Integrated marketing communications
Adaptive selling
What is effective personal selling? - Identifying good prospects that are predisposed and well-suited to the product or service being offered - Building mutual trust and respect between buyer and seller where benefit comes to both parties - Giving honest responses to any questions the buyer has and showing that the salesperson cares - Addressing customers' needs and preferences without making them feel pressured
Addressing customers' needs and preferences without making them feel pressured
New Task
An organization considers buying a product for the first time
Which presentation format tends to be the most successful in building a salesperson-customer bond? - A structured presentation - A canned presentation - An unstructured presentation - A fully automated presentation
An unstructured presentation
What are the four social styles of selling?
Analytical Driver Amiable Expressive
The service manager at a new car dealership wants to purchase equipment upgrades and replacements for the large service bay. The manager makes appointments to meet with the owner of the dealership to discuss the upgrades and costs, but the owner keeps canceling the meeting with a different excuse each time. Based on the model of dual concern theory, which conflict handling style is being exhibited by the purchasing manager? - Competition - Accommodation - Compromise - Avoidance
Avoidance
Which example illustrates how artificial intelligence and the internet of things positively affect sales and marketing? - During a peak busy period, a customer is diverted from a long line to be checked out using a card swipe device attached to a mobile device. - A customer uses a store's mobile application to make a purchase. - After a salesperson has a customer conversation, details of that engagement are saved in a customer relationship management tool. - Chat-bots answer customers' product questions in real time.
Chat-bots answer customers' product questions in real time
What is the next stage of the selling process after all customer objections have been addressed by the salesperson? - Closing the sale - Handling objections - Following up - Presenting the product
Closing the Sale
Individuals A and B had competing new product ideas and each needed scarce company resources. Individual A lobbied management to obtain all the resources possible regardless of how Individual B might be impacted or the relationship might be affected. Which style of handling conflict was used by Individual A? - Avoidance - Compromise - Competition - Accommodation
Competition
The purchasing manager for an electronics supply house enjoys sparring with sales representatives in person and tends to have heated phone conversations with them. The manager never gives an inch during negotiations and states that the upper hand and best pricing are the result of personal negotiation skills. Based on the model of dual concern theory, which conflict handling style is being exhibited by the purchasing manager? - Avoidance - Competition - Compromise - Accommodation
Competition
Andie's pitch to Design Group included two years of consulting, training, and product development services and was approved on May 1. On May 15, the CEO of Design Group asked to change the contract to one year of services. After negotiation, Andie and the firm agreed to an 18-month contract. Which conflict management method did the consultant use? - Competition - Accommodation - Collaboration - Compromise
Compromise
Individuals A and B were handling the conflict of negotiating a ten percent total budget reduction for their departments. Individual A stated to Individual B, "Maybe we can both agree to give in a little." Individual B agreed and each decided to reduce their budgets by five percent to meet the ten percent total budget reduction for their departments. Which style of handling conflict was used by these two individuals? - Avoidance - Accommodation - Competition - Compromise
Compromise
The regional sales representative for a laboratory equipment supplier meets with a primary care practice manager to try to sell an upgrade to the practice's blood analysis computer. The practice manager told the sales representative in an email when agreeing to the appointment that money for an upgrade was not available; the current hardware was working and meeting company needs. After an hour behind closed doors, the sales representative left with a purchase order for the new hardware along with a new printer for the computer. The representative agreed to a reduction in the cost of the hardware along with a year of free support and upgrades. Based on the model of dual concern theory, which conflict handling style did the sales representative and the practice manager use to make the sale? - Competition - Avoidance - Accommodation - Compromise
Compromise
Jake wants to learn about potential customer needs so the produce can be diversified based on what restaurant owners want on their menus. Which selling approach will Jake need to take? - Consultative - Telemarketing - Team - Solution
Consultative
Which type of selling involves partnering with customers to solve problems? - Team - Solution - Direct - Consultative
Consultative
A purchasing manager is bundling new products with used products and selling them as new. What behavior is illustrated by this action? - Hard selling - Deceptive advertising - Pyramid scheme - Bait and switch
Deceptive Advertising
Which role within a buying center is responsible for making the final selection for vendors to use and products to purchase? - Buyer - Initiator - Decider - Influencer
Decider
Which three individuals have a role in the buying center? Choose three answers. - Decider - Instructor - Initiator - Gatekeeper - Manager - Auditor
Decider, Initiator, Gatekeeper
A sales representative for a laboratory equipment company is in the final stage of closing a large sale. The representative realizes the customer is not fully aware of the specifications of the product, and the product may require modifications to fit the customer's needs. Which action should the sales representative take based on this knowledge? - Delay the sale and ensure that the customer is aware of specifications. - Complete the sale and immediately notify the support staff about the situation. - Complete the sale and inform the customer on how to contact the support team. - Delay the sale and wait for the needs of the customer to change.
Delay the sale and ensure that the customer is aware of specifications
A sales employee works for an organization that implements sales quotas on its employees to encourage sales. What is an ethical issue that this employee may encounter? - Working extra hours to contact customers in different time zones - Setting a goal to exceed a quota by at least 10% in the next year - Postponing a meeting with a boss to meet with a customer - Delaying an end-of-year sale to have a head start on the quota in the next year
Delaying an end-of-year sale to have a head start on the quota in the next year
The purchasing manager for a large auto parts company enters into every negotiation from the position of the possibility of personally winning something and the salesperson having to lose something. Which negotiation approach is this manager demonstrating? - Distributive - Integrative - Inductive - Deductive
Distributive
What is the main ethical responsibility of a salesperson? - Making the customer profitable - Doing the right thing for the customer - Placing company interests above customer interests - Disclosing all potential design flaws of the product
Doing the right thing for the customer
Which role in the decision making unit justifies a purchase by linking it to profit? - User buyer - Infrastructure buyer - Economic buyer - Alternative buyer
Economic Buyer
The Internt of Things (IoT)
Embedding computers in every day things, turning them into smart and connected devices that can be monitored and used for data analytics
Which individual in the buying center is the product intended for when a B2B purchase is completed? - Gatekeeper - Buyer - End user - Initiator
End Users
An organization lost sales because a competitor introduces a compelling new product feature. In response, managers at the organization are anxious to move forward with a project or purchase that can help them regain a competitive edge. Which factor contributes to a Business to Business (B2B) purchase decision in this situation? - Governmental - Organizational - Environmental - Interpersonal
Environmental
Andie was successful at pitching to Design Group concerning services because of expertise in business development and the timing of the presentation. Design Group's largest competitor acquired a steel supplier that would drive down its costs of providing steel in architectural design projects and that would make Design Group less competitive on projects using steel construction. What type of factor contributed to Design Group's work with Andie? - Organizational - Regulatory - Interpersonal - Environmental
Environmental
Jake recently started a vertical farming business in Heartland, Ohio. He grows pesticide-free produce unique to the region. He constructs vertical farming towers from single-use plastic waste, uses old shipping containers for farming space, irrigates using recycled water, and accesses natural sunlight through skylights made of single-use plastic waste. Jake has joined the Association for Vertical Farming to build his industry knowledge and network, but he needs to develop personal relationships with local farm-to-fork restaurant owners who would be interested in organic produce. What will be the purpose of this farmer's personal selling process? - Discuss association membership. - Explain the focus on sustainable farming. - Facilitate an exchange with restaurant owners. - Identify the business to customer prospects.
Facilitate an exchange with restaurant owners.
A new vice president (VP) for a manufacturing company wants to upgrade the network in the product assembly area. The new VP does not want to use the same systems integration vendor and would prefer to buy products and services from a different vendor that has been in business for only a year. Which type of influence does the VP have over purchasing decisions? - Organizational - Interpersonal - Environmental - Governmental
Interpersonal
A sales representative for a durable medical equipment company wants to approach a large doctor's office to pursue an ongoing relationship with the office. Which phase of the negotiation process should the sales representative consider first? - Closure - Bargaining - Investigation - Presentation
Investigation
What are the five phases of negotiation?
Investigation, Determining you desired outcome, Presentation, Bargaining, Closure
Planned Obsolescence
Is a policy of designing a product with a limited useful life, so it will become unfashionable or will no longer function after a certain period of time and put the consumer under pressure to purchase again.
A salesperson decides to provide an incentive to one influencer in each prospective company after they recommend his product and the sale is approved. What unethical practice is the salesperson using? - Pyramid scheme - Bait and switch - Hard selling - Kickback
Kickback
A school administrator receives a vacation to a tropical location from a textbook company after purchasing textbooks for a business class from that vendor. Which unethical behavior has this administrator committed? - Kickbacks - Pyramid scheme - Planned obsolescence - Bait and switch
Kickbacks
Which department ensures that all new sales contracts comply with the ethical standards of the company? - Accounting - Marketing - Legal - Human Resources
Legal
Dual Concern Model
Maps five styles of handling conflict on a grid according to their degree of cooperation or assertiveness
A large retail electronics company needs to craft product communications for the sales associates in stores around the country. The employees of the company will need to explain a new promotion and the pricing levels consistently and fairly to a variety of shoppers. Which department of the company should perform this task? - Accounting - Human Resources - IT - Marketing
Marketing
What is a characteristic of integrated marketing communications (IMC)? - IMC campaigns use many different "look and feel" elements to grab attention. - Customers can obtain a response from a company in less than 24 hours. - Marketing efforts are focused on reaching target customers. - IMC campaigns rely on one point of contact with customers to make a sale.
Marketing efforts are focused on reaching target customers
A regional sales representative for an electronic health record (EHR) wants to increase sales to doctor's offices in the area. Which strategy is effective to increase B2B sales? - Meeting with doctors and office management - Running advertising on local radio stations - Mailing sales brochures to office managers - Setting up a booth at regional conventions
Meeting with doctors and office management
Telemarketing
Method of direct marketing by a salesperson over the phone
Compromise
Middle-ground style of handling conflict
The Design Group in Seattle has seen a sales increase of 40% since contracting with the Andie six months ago. The firm approaches Andie for another one-year contract, but with changes to the number of hours that she will need to spend with the firm's architects. Instead of working 10 hours per week from the company office, Andie will be working 15 hours per week at Design Group. What type of buying situation does this represent? - New task - Straight rebuy - Modified rebuy - Comprehensive task
Modified Rebuy
The vice president (VP) of the design department realizes that to remain competitive, the company will need to redesign their current smartwatch by adding new features. Which B2B buying situation supports this decision? - Modified rebuy - New task - Straight rebuy - Inventory liquidation
Modified Rebuy
Which B2B buying situation is encountered when a company is selling an upgrade of a current product? - Inventory liquidation - Modified rebuy - Straight rebuy - New task
Modified Rebuy
Inductive
Negotiating by beginning with details and working up to a larger agreement
Deductive
Negotiating by beginning with the big picture then turning to details
The chief executive officer (CEO) of a company that manufactures smart door locks decides to expand the business. Based on brand recognition for their smart locks, the CEO intends to expand into producing smart doorbells. Which B2B buying situation supports this decision? - Inventory liquidation - Straight rebuy - New task - Modified rebuy
New Task
A person has used their desktop computer to search for information on a household appliance they are considering purchasing. Within a few minutes, information from the person's desktop appears on their cell phone. Which current trend in personal selling caused this information to appear? - Consultative selling - Integrated marketing communications (IMC) - Artificial intelligence (AI) - Social styles matrix
Social Style Matrix?
A potential buyer wants to purchase a complete hardware, software, and network package for a new office building. Which type of selling approach should be used with this customer? - Telemarketing - Solution - Team - Normal
Solution
As the result of the rapid success of a company's new electronic device, the manager decides to order another run of the product for the organization. No changes will be made to the design, parts, or functionality of the product. Which B2B buying situation supports this decision? - New task - Inventory liquidation - Modified rebuy - Straight rebuy
Straight Rebuy
Accommodation
Style of handling conflict focused on empathy over self-interest; cooperative and unassertive
Competition
Style of handling conflict focused on self-interest over empathy
Collaboration
Style of handling conflict with high concern for both empathy and self-interest; assertive and cooperative
Avoidance
Style of handling conflict with little empathy or self-interest; uncooperative and unassertive.
Which type of selling shows customers that a company has more than one person with strong selling capabilities, giving the customer a higher comfort level with the company? - Telemarketing - Solution selling - Team selling - Consultative selling
Team Selling
A salesperson is contacting potential customers to share a new product package available for purchase. The pitch includes an initial phone conversation and a follow-up teleconferencing meeting. Which sales approach is the salesperson using? - Telemarketing - Consultative selling - Solution selling - Team selling
Telemarketing
Which type of sales approach occurs with a recorded sales pitch, programmed to be played over the phone via automatic dialing? - Customer-empowered selling - Team selling - Telemarketing - Solution selling
Telemarketing
Bargaining
The 4th phase in the negotiation process, where the parties seek an agreement
Modified Rebuy
The buyer wants to reorder a product but with some modification to the product specifications, prices, or other aspects.
Closure
The final phase of negotiation, where an agreement is reached or the negotiation fails
What is at the core of personal selling? - Provide quality information to potential buyers - The human exchange between buyer and seller - Avoid unethical behavior - Identify the right marketing mix of product and price
The human exchange between buyer and seller
Investigation
The initial phase of the negotiation process, where information is gathered
A consumer visits a farmer's market for an avocado sale advertising $0.50 per large avocado. When the individual arrives at the market, the farmer says that the avocados are only available in packs of 12. The consumer later checks the social media advertisement and sees no details stating the avocados must be purchased in packs. What behavior is illustrated by this situation? - Predatory selling - Bait and switch - Kickback - Pyramid scheme
Bait and Switch
Customers are shown advertising for a new mop at the price of $19.99. When they go to purchase the mop, the company states that the mop for $19.99 is not available, but there is a similar model available for $39.99. Which behavior is illustrated by this action? - Kickbacks - Pyramid scheme - Bait and switch - Planned obsolescence
Bait and switch
A sales representative for an ultrasound machine offers to include a free one-year maintenance contract with the purchase price if the client will agree to the purchase today. Which phase of the negotiation process are the representative and the client in? - Investigation - Closure - Presentation - Bargaining
Bargaining
Andie submits a proposal for services to Design Group. At the next meeting, Andie begins working with the lead architect to achieve consensus on the timeline and outcomes for the project. Which stage of the negotiation process is being illustrated? - Bargaining - Investigation - Presentation - Determining desired outcomes
Bargaining
Adaptive Selling
a trend in personal selling that uses the idea of social styles to adapt and customize your selling style based on the behavior of the customer.
A customer visits a high-end retail electronic store to purchase a laptop he researched online. Before purchasing, the customer asked the salesperson about the risk of the laptop battery overheating. The salesperson shares the features and benefits of the product with him, focusing in on the design capabilities of the laptop, and recommends the laptop. The person leaves thinking his purchase went smoothly and he is receiving full value for the product. Which practice did the salesperson use in this transaction? - Pitching a product as a solution to multiple objective needs - Focusing on the features of the product while withholding product risks - Promoting a product that was designed with planned obsolescence - Promoting the strongest aspect of a product through hard selling
Focusing on the features of the product while withholding product risks
A salesperson visits a customer to make sure the customer is satisfied with the purchase of the product. What step in the sales process is the salesperson completing? - Following up - Closing - Demonstrating the product - Handling objections
Following Up
Andie is finalizing a second contract with Design Group and needs to know what resources that must be provided while on-site at the new work location. The CEO asks Andie to work directly with a project manager to share information on a need-to-know basis. Which role is the project manager performing in this process? - Influencer - End user - Gatekeeper - Initiator
Gatekeeper
A salesperson wants to ensure they have all of the pertinent information to complete the sale and alleviate any possible concerns. Which step of the sales process is being used? - Closing the sale - Handling objections - Presenting and demonstrating the product - Prospecting and qualifying
Handling Objections
Jake's meeting with a local farm-to-fork restaurant owner presented a new challenge. When asked about how well the produce performed compared to produce that was genetically modified or treated with pesticides, the farmer was unsure of how to respond. Which stage of the selling process does Jake need to work on before following up with this potential customer? - Handling objections - Prospecting and qualifying - Approaching customers - Closing the sale
Handling objections
A student has $5,000 to purchase a used car. A salesperson presents a $9,500 car in order to meet their quota, even though the salesman knows the car is above budget. The salesperson has the student take the car for a test drive, explains the features and benefits of the car, and then states there is another customer expressing interest in purchasing the car before the lot closes in an hour. Once financing options are clarified, the salesperson mentions there is no time for the student's parents to advise since the lot is closing and the best deal will no longer be available the next day. Which unethical practice is being used by this salesperson? - Pyramid scheme - Hard selling - Bait and switch - Planned obsolescence
Hard Selling
Jake is under pressure from investors to sell $1,000,000 in produce by the year's end. The plan is to meet with each of the customers and persuade one customer to purchase 100 towers of produce for the next month. The farmer will pressure the customer to purchase in 24 hours or offer the sale to a competitor instead. Which kind of unethical approach will Jake be using? - Pyramid scheme - Planned obsolescence - Hard selling - Bait and switch
Hard Selling
Which action leads to a failed negotiation or to a less than desirable outcome? - Being open to the wants and needs of the other party - Holding unrealistic expectations of the negotiation outcomes - Giving something up to get something in the negotiation - Developing a list of potential outcomes of the negotiation
Holding unrealistic expectations of the negotiation outcomes
What is a characteristic that is true of integrated marketing communications (IMC)? - IMC accesses more than one customer touch point. - IMC predominantly uses mass communication. - IMC has little regard for the values of consumers. - IMC is supported by and depends on sales.
IMC accesses more than one customer touch point
A company is looking to buy multiple WiFi routers. Which department in this company ensures the routers are compatible with the other systems the company uses? - Marketing - Accounting - Human Resources - IT
IT
Integrated Marketing Communications (IMC)
Immersive and targeted communication with customers to help move them through the various stages of the buying process
What is the result of customer relationships based on honest communication, clear pricing, and respectful treatment? - Improved business results - Increased scrutiny from regulating entities - Improved product performance - Increased business efficiencies
Improved business results
Deciders
Individual(s) at an organization making the final purchase decision, often the person who owns the budget
Buyers
Individuals at an organization who are responsible for the purchase contract, often a purchasing department
Gatekeepers
Individuals at an organization who control the flow of information to and among others within the buying center; often administrative professionals
Influencers
Individuals at an organization who try to affect the purchase decision, sometimes brought into the buying process to provide technical expertise
End users
Individuals at an organization who will use the product or service to be purchased
A company is looking to contract a web-design firm to develop its intranet. Which role is IT fulfilling in the buying center? - Influencer - Decider - Gatekeeper - Initiator
Influencer
Artificial Intelligence
Intelligent machines (computers) capable of learning and reacting.
A company experienced a business quarter where sales were poor. The management team decided to slow down or halt all purchasing decisions. Which factor influences a Business to Business (B2B) purchase decision in this situation? - Organizational - Interpersonal - Governmental - Environmental
Organizational
The vice president (VP) of sales for an auto parts supplier reviews the most recent quarter's sales numbers and notes a 20% decline in sales from the previous three quarters. Based on these declining numbers, the company reduces current orders to suppliers. Which type of influence over purchasing does this company decision reflect? - Organizational - Governmental - Environmental - Interpersonal
Organizational
Analytical Selling
People with this social style want to know how, Low Response, Low assertiveness
Driver Style
People with this social style want to know what, Low Responsiveness, High Assertiveness
Expressive Style
People with this social style want to know who; High assertiveness, High responiveness
Amiable Style
People with this social style want to know why; Low Assertiveness High Responsiveness
A technology manufacturer creates its smartphones using components with a maximum lifespan of two years. After the two-year period, the customer will likely need to purchase another smartphone. Which behavior is illustrated by this practice? - Hard selling - Pyramid scheme - Planned obsolescence - Bait and switch
Planned Obsolescence
Which step of the sales cycle describes a salesperson researching targeted customers that may be interested in a product? - Prospecting and qualifying - Approaching customers - Presenting and demonstrating - Closing the sale
Prospecting and qualifying
Andie is interested in working for a competitor to one of her clients. She asks her client if he knows what fees for services the competitor provides. Which ethical factor did the consultant disregard? - Overselling results - Renegotiating the contract - Providing fair value - Respecting confidential information
Respecting Confidential Information
A new and used textbook store opens in a college town, and the owners want to reach as many of the students and staff as possible to draw in business. Which strategy is effective in reaching these B2C customers? - Running advertising on local radio stations - Meeting with school administrators - Offering discounts for large purchases of the same textbook - Buying overstocked titles from the college bookstore
Running advertising on local radio stations
Team Selling
Sales approach that involves multiple people from an organization joining forces to advance a customer opportunity
Consultative Selling
Sales approach where the seller becomes a trusted advisor and builds a relationship to truly understand her needs
Solution selling
Sales approach where the seller diagnoses the customer's problem then recommends a mix of products and services (a solution) to solve it
Business-to-business (B2B)
Sales to another company that consumes the product or services as apart of the operating the business or uses the product in the assembly of the final product it sells to consumers
The dual concern model is being used by an organization. Which concern must be balanced with empathy? - Others' needs - Self-interest - Compromise - Avoidance
Self-interest
Determining Your Desired Outcome
The second phase in the negotiation process, where you define what you would like to get from the negotiation, also called Best Alternative to a Negotiated Agreement (BATNA)
Which ethical issue may arise when a sales team is unable to meet its annual sales quota? - The team may receive smaller paychecks. - The team may request sales quota reductions. - The team may be less motivated to sell. - The team may misrepresent products to increase sales.
The team may misrepresent products to increase sales
Presentation
The third phase in the negotiation process, where you put together information to support your position
What is the underlying purpose for personal selling? - To assist marketing in determining the correct product and price - To obtain customer feedback to improve the product - To provide interaction between the buyer and the seller - To identify good prospects
To provide interaction between the buyer and the seller
Hard Selling
Where the salesperson uses excessive pressure to push the customer to quickly close a sale
Integrative Approach
Win-Win negotiation that looks for ways to expand the pie so each party gets more
Distributive View
Win-lose negotiation that sees the situation as a fixed pie to be divided
Initiaters
individuals at an organization who suggest purchasing a product or service
Straight Rebuy
the organization reorders a good or service without any modifications
Pyramid Scheme
unethical and unsustainable business model where those higher up the pyramid profit from recruitment fees of those below
Personal Selling
uses in-person interaction to sell products and services