M426 Exam 1

the organizing phase for a sales executive involves...

determining what type of sales force to use

If product line is broad, you would use )))))

direct

If the selling task is complex, you would use _____

direct

If you have a product that requires local stock and has widely dispersed customers, you would use...

distributor

Which part of the sales process is the most important?

followup! (but most people don't do it!)

Transformational leadership theory?

A leader has the charisma to inspire followers job satisfaction

In which selling model would the salesperson ask the client tons of questions?

Consultative

What is a gatekeeper?

Control the information

What is a manufacturer's rep?

Doesn't own product or maintain inventory. Sell for several non-competing manufacturers

What are the users in a buying center?

Jobs require that they implement and evaluate what was purchased

Contemporary leadership approaches?

Leader-member exchange theory and transformational leadership theory

What is an account managers role in enterprise selling?

They initially capture and maintain a customer's business

How do you evaluate vendors?

a Multi attribute matrix where you weight importance, rank each vendor, and calculate a total for each

Before setting a strategy, you should develop...

a mission statement

The sales function includes...

locating buyers, persuading, and completing the transaction

If the manufacturer wants to enter into new market or introduce new product, you would use...

manufacturer's rep

Account penetration is also known as...

product development (new products/current markets)

Other situational leadership approach?

situational leadership model: directing coaching suppporting delegating

What is the smart format for establishing objectives?

specific measurable achievable realistic time-based

What are some ethics issues for sales?

stealing claiming credit sexual harrasment

What is human capital?

the people in an organization

What is CRM?

the process of identifying and grouping customers in order to develop an appropriate relationship strategy so that the organization can acquire, retain, and grow the business

What are milestones?

important short-term objectives

What are the three criteria to compute CLV

1. Probability of future purchases 2. Future marketing costs 3. Future contribution margins

What percent of a companies revenue is typically taken up by sales?

20%

What is challenger selling and what is it a subset of?

A form of consultative selling where challenging how a consumer thinks and helping them identify hidden or misunderstood opps or threats

What is the "Great man theory"

AKA: trait approach The idea that people were born with certain traits that made them more likely to be leaders

What are influencers in a buying center?

Affect decision makers choice through recommendations, etc.

What is the supply chain?

All of the events and people needed to bring a company's product to the customer.

How does a salesperson get a meeting in the approach phase?

An awesome opening statement that focuses on the buyer

What product might be a good example of transactional selling?

An insurance caller

What is the easiest and least expensive way to reduce risk?

By sharing information

What is the conventionalist approach to ethics?

As long as it is legal or "everyone is doing it."

Libertine?

As long as no one gets hurt

Approach?

Asking the potential client to meet

What is enterprise selling?

B2b selling with a strategic partnership between buying and selling organizations.

What is affiliative selling?

Based on friendship between the salesperson and the individual buyer

What are the approaches to ethics?

Golden Rule Conventionalist Protestant Market Impaerative Libertine Utilitarian

Utilitarian?

Best outcome for all involved.

What is the objection phase of selling?

Buyer presents objections, salesperson probes to find deeper issue

Broker?

Can carry inventory, but doesn't take ownership

What is a field sales manager?

Carries out the executives vision on a smaller scale. i.e. executive sets sales targets, manager sets individual quotas for each person i.e. executive decides ideal sales person fit, but manager actually hires and interviews

Advantages of outsourcing?

Cheaper cost per sales call Established relationships

Being a sales manager includes what four functions?

Coaching, developing, motivating, convincing

Advantages of having company-employed sales people?

Greater control over selling. Greater control over who is hired. Company salesperson only sells your own companys product

Another name for missionary salespeople?

Detail reps-- primary activity is o detail or describe the product

What is the Uniform Commercial Code?

Determines who the agent is and key elements such as a sale and warranty

Emerging concepts of leadership?

Developing your followers - Stephen Covey's 7 habits of highly effective people - servant leadership: leaders serve followers and set and example -Level 5 leadership: separate good from great

What are leadership practices?

Direction Aligning people Motivating and inspring

True or false. Most companies have a standard sales method

FALSE! 55% don't!

True or false. Non-internet direct channels are growing.

FALSE! Direct channels other than the internet are shrinking.

True or false. The sales function can only be completed by sales people.

False!! could include marketing advertisements, etc.

True or false.. sales managers are super salespeople.

False.

True or false. If you sell a complex product, you should use a distributor.

False. Distributors sell competing products and will sell whatever is easiest. If it is complex, they won't waste the time.

True or false. The purchasing manager in an organization is becoming a low-status job.

False. The purchasing manager is becoming more and more authoritative and higher status.

The growth for sales jobs is faster or slower than other professions?

Faster!

What is the FEBA approach to presentation?

Feature, evidence, benefit, agreement

Sales position are ____ to fill.

Hard

What is the strategy hierarchy?

How strategy flows down through the organization

What is consultative selling and what are other names for it?

Identifying and solving problems for the client aka.. needs-satisfaction selling or problem/solution selling

How would you plan sales strategy based on CLV.

If high value and high percent of purchase share... lots of attention and weekly visits. if high value and low percent of purchase share, biweekly contact, etc.

Protestant ethic approach to ethics?

If you can defend what you did to peers it is fine. Based on intended, not actual outcome

If the sales cycle is short, you would use ____

Indirect

What are the roles in a buying center?

Initator Decision maker Purchaser Controller Influencers Users Gatekeepers

According to the "great man theory," what traits lend themselves to becoming good leaders?

Intelligence Self confidence Determination Integrity Sociability

What is the behavioral approach to leadership?

Looked at different leadership styles Two dimensions: consideration and initiating structure More employee centered than production centered

When prospecting you are looking for a ____ buyer, meaning they....

MAD have the money to buy, authority to buy, and desire to buy

What is transactional selling?

Making the sale as quickly as possible i.e. lots of calls

What are the types of outsourced people?

Manufactureres rep/agent Distributors Broker

When creating a marketing strategy, you should consider the following?

Markets, relationships, investments, objectives

What does a controller do in the buying center?

May approve or set budget for purchase

In which type of buy will all buying stages be completed?

New buy and potentially modified re-buy

What are the three types of organizational buying situations?

New buy Modified re-buy Straight rebuy

What are the steps in the selling process?

Prospecting Pre-Approach Approach Needs Identification Presentation Handling Objections Closing the sale Implementation/followup

What is a good example of affiliative selling in the business world?

Perhaps heavy mining equipment. It will need lots of post-sale service and can shut down business when not working properly. So you buy from someone you can count on

What are management practices?

Planning and budgeting Organizing and staffing Controlling and problem solving predictability

Sales executives complete four main activities.. these are...

Planning, organizing, implementing, monitoring

What are growth strategies?

Plans designed to increase sales to same customers

Sales success is a ____ predictor of management ability.

Poor

What are the steps in the buyer's decision making process?

Problem recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Evaluation

Leadership is a _____.

Process

What is the difference between a selling approach and a selling process?

Process= steps Approach = transactional, affiliative, enterprise, consultative

What steps are included in a straight re-buy?

Product specifications Specify quantity Review performance

What is a modified re-buy?

Purchase of product when buyer has considered different vendors or product changes

What three mini phases are involved in needs-identification

Questioning Identification pre-commitment

What are the 8 buying stages?

Recognize problem Determine characteristics Determine specifications Search for suppliers Evaluate proposals Select supplier Specify quantity Review performance

What are challenges as a leader for the sales executive?

Recruiting and keeping good employees Virtual leadership Diversity Removing limitations facing emails Avoiding ethical miscues Motivating sales teams Technlogy in sales

What is the Leader member exchange theory?

Relationships develop between leader and member to form in-group or out-group

Why are direct channels (non-intenret) shrinking?

Sales call cost increasing Transportation costs increasing Distributors responding quicker and more effidienct

Where does cRM data come from?

Sales person enters data Back office systems Marketing research companies

What is business defamation?

Salespeople make unfair or untrue statements to customers about a competitor, its products salespeople, etc.

Types of company-owned sales people?

Salesperson Field representative Account Managers Trade representatives Missionary salespeople

What can a CRM system do?

Seamless interaction Access Same Information Predictive Models Campaign Management

Retail sales reps?

Sell to people who come into stores i.e. Apple Geniuses

What is an integrative relationship in B2B business?

Selling firm becomes buyer's sole source supplier and deep relationship between the two

Missionary salespeople?

Selling to people who aren't the primary users of a product, but "sell" or "recommend it" to others.. i.e. pharmacies

Inside salesperson?

Sells at company's facilities (including call center employees)

Field representative?

Sells at customer locations. Inside sales person finds new accounts for the field rep to contact

What is a distributor?

Take ownership of the products and maintain inventory Sell for many manufacturers (including competing)

Account managers?

Take responsibility for building sales within specific accounts

What are some trends in sales right now?

Technology, relationship based selling, team selling, global

What is the service dominant logic?

The idea that being in business is essentially about serving the needs of others

Market imperative?

The market will determine what is right

What is social capital?

The ties a firm has with others

How has technology changed logistics?

There are bar codes, etc. that can help monitor inventory levels, etc.

What are the leadership approaches?

Trait Behavioral Situational Contemporary Emerging

Three types of B2b relationships

Transactional Facilitative Integrative

What are the four basic models of selling?

Transactional Problem solving/consultative Affiliative enterprise

True or false. More decision makers are being involved in buying, ultimately leading to longer buying cycles

True

True or false. A company should have a standard sales method.

True!

True or false. Sales technology makes reps more productive, but also creates the feeling that jobs are less secure.

Truth. It is unclear who owns the relationship with the customer

How would a higher role use CRM/SFA systems differently than lower level employees

Upper level would use sales forecasts, monitoring, looking at best practices Lowe level would access data, pricing formulas, integrated inventory shipping and billing, as well as leads

What is a multi-channel environment?

When a company uses a number of methods or channels to sell. i.e. the internet

Seamless integration?

When a firm's customers can easily shift transactions across company's various channels i.e. Returning online purchases in store

What is a reverse auction?

When customers post their needs online and a company bids to fill their needs

What is "aftermarket?"

When you've bought something and need to maintain it or buy new parts, etc.

What is a contact center/call center?

Where an inside salesperson may handle many chat and voice conversations at once

Challenges of implementing CRM and SFA systems?

Who owns relationship with customer What/who/where is the data How much information should be available, for whom, and for what use

Situational approach to leadership?

contingency theory of leadership: evaluated leaders based on leadership situations with the following dimensions -leader-member relations -task structure: approach to solving problem is clear - Position power: ability to reward/punish

Typically the strategy hierarchy is...

corporate, marketing, sales

the implementing phase for a sales executive involves..

creating a culture and choosing compensation

Vertical marketing rep?

handle accounts from the same type of business i.e. all customers are in healthcare industry

Inbound center vs. outbound?

inbound: call center that handles customer initated calls outbound: salesperson initiates calls

If your target market is segmented, you would use _____

indirect

What is pre-commitment?

needs identified and it is clear what the rules for the sales are and qualifying the buyer as MAD

Trade representatives?

sell to organizations in the supplyy chain (typically retailers) i.e. selling mattresses to furniture store

What are some of the things a back office system might input into a CRM system

purchase history service history payment record

What is the needs-identification stage?

questioning to confirm that the buyers is MAD and gaining pre-commitment i.e. SPIN (situation, problem, implication, needs-payoff)

The planning phase for a sales executive might include..

quotas, general sales strategies, specify sales approach, etc.

Wha tis the pre-approach?

research the customer using the internet, contact management software, etc.

Geographic rep?

take responsibility for building sales within specific area

Prospecting is...

the 1st step in the selling process where you identify a lead

What is a sales forecast?

what the salesperson expects to sell in a particular period of time

When is it especially beneficial to use an outsourced sales team?

when going blobal