Marketing 3410 Midterm (Ch. 1-5)
What happens in the absence of proper grammar
(1) The meaning and credibility of the message are significantly downgraded. (2) The receiver begins to focus on the sender rather than the message, which materially reduces the probability of effective communication. (3) The receiver dismisses the sender and the sender's organization as being unqualified to perform the role of an effective supplier and partner.
Questions can be typed into two basic categories:
(1) amount of information and level of specificity desired (2) strategic purpose or intent.
Categorization of buyers splits them into either the:
(1) consumer market (2) business market
three verbal communication subcomponents:
(1) developing effective questioning methods for use in uncovering and diagnosing buyers' needs and expectations, (2) using active listening skills to facilitate the interchange of ideas and information (3) maximizing the responsive dissemination of information to buyers in a way that fully explains and brings to life the benefits of proposed solutions
Buyer's Purchase Process
(1) recognition of the problem or need (2) determination of the characteristics of the item and the quantity needed (3) description of the characteristics of the item and quantity needed 4) search for and qualification of potential sources (5) acquisition and analysis of proposals (6) evaluation of proposals and selection of suppliers (7) selection of an order routine (8) performance feedback and evaluation.
Types of nonverbal communication
- Facial Expressions - Eye Movements - Placement and Movements of Hands, Arms, Head, and Legs - Body Posture and Orientation - Proxemics - Variations in Vocal Characteristics - Speaking Rates and Pause Duration - Pitch or Frequency - Intensity and Loudness - Using Nonverbal Clusters
Salespeople combine the different types of questions discussed earlier to accomplish multiple and closely related sales objectives:
- Generate buyer involvement. - Gather information. - Clarification and emphasis. - Show interest. - Gain confirmation. - Advance the sale.
Legal reminders for sales organizations
- Review sales presentations and claims for possible legal problems. - Make the salesforce aware of potential conflicts with the law. - Carefully screen any independent sales agents the organization uses. - With technical products and services, make sure the sales presentation fully explains the capabilities and dangers of products and services.
Legal reminders for salespeople
- Use factual data rather than general statements of praise during the sales presentation. Avoid misrepresentation. - Thoroughly educate customers before the sale on the product's specifications, capabilities, and limitations. - Do not overstep authority, as the salesperson's actions can be binding to the selling firm. - Avoid discussing these topics with competitors: prices, profit margins, discounts, terms of sale, bids or intent to bid, sales territories or markets to be served, rejection or termination of customers. - Do not use one product as bait for selling another product. - Do not try to force the customer to buy only from your organization. - Offer the same price and support to buyers who purchase under the same set of circumstances. - Do not tamper with a competitor's product. - Do not disparage a competitor's product without specific evidence of your contentions. - Void promises that will be difficult or impossible to honor.
Purposes of sales dialogue
-Determine if a prospective customer should be targeted for further sales attention. -Clarify the prospective customer's situation and buying processes. -Discover the prospective customer's unique needs and requirements. -Determine the prospective customer's strategic priorities. -Communicate how the sales organization can create and deliver customer value. -Negotiate a business deal and earn a commitment from the customer. -Make the customer aware of additional opportunities to increase the value received. -Assess sales organization and salesperson performance so that customer value is continuously improved.
salespeople are acting unethically if they:
-Shows concern for their own interest, not the clients'. -Pass the blame for something they did wrong. -Take advantage of the poor or uneducated. -Accept favors from customers so the seller feels obliged to bend policies. -Sell products/services that people do not need. -Give answers when they do not really know if they are correct or not. -Pose as a market researcher when doing phone sales. -Sell dangerous or hazardous products. -Withhold information. -Exaggerate benefits of product. -Lie about availability to make sale. -Lie about competitors. -Falsify product testimonials.
Variables to earn buyer's trust
-expertise -dependability -candor -customer orientation -compatibility
Skills required for success by salespeople
1. Active listening—to include asking appropriate questions, and not interrupting at inappropriate times 2. Service orientation—actively seeking ways to help customers 3. Oral communications skills—including persuasive communications 4. Coordination and problem solving—to include bringing others together and reconciling differences 5. Written communications skills—including computer and other technologically facilitated communications 6. Logical reasoning resulting in rational reasons to take action 7. Strategic and organizational skills so work can be planned and executed efficiently 8. Dependability and attention to detail 9. Motivation and persistence in the face of obstacles 10. Integrity—honest and ethical 11. Initiative—willing to take on responsibilities and challenges 12. Adaptability—open to change and devoted to continual learning
Gathering Prospect Information to Prepare for Sales Dialogue
1. Basic Information about the Prospect 2. Information about the Selling Situation 3. Sources of Information
strategic prospecting process
1. Generating sales leads 2. Determining sales prospects 3. Prioritizing sales prospects 4. Preparing for sales dialogue 5. Remaining stages in the trust-based sales process
With this enhanced level of preparation and understanding, the salesperson can plan, create, and deliver a more effective presentation using the five fundamental strategies that are inherent within the evaluation procedures buyers use.
1. Modify the Product Offering Being Proposed 2. Alter the Buyer's Beliefs about the Proposed Offering 3. Alter the Buyer's Beliefs about the Competitor's Offering 4. Alter the Importance Weights 5. Call Attention to Neglected Attributes
How salespeople contribute to their company
1. Revenue producers 2. Sources of market research and feedback 3. Candidates for management positions
How salespeople contribute to national economy
1. Stimulate economic transactions 2. Further the diffusion of innovation
Three types of purchasing decisions:
1. straight rebuys 2. modified rebuys 3. new tasks.
Ziff Corp., a content aggregator firm, is expanding its capacity to hold data. The firm's target is to have 255 servers. If it currently has 220 servers, the firm's needs gap is _____ servers.
35
Actual state
A buyer's actual state of being.
Psychological attributes
A category of product characteristics that refers to how things are carried out and done between the buyer and seller. More influence on buyer satisfaction and loyalty
Detailer
A category of sales support personnel in the pharmaceutical industry working at the physician level to furnish information regarding the capabilities and limitations of medications in an attempt to get the physician to prescribe their product.
missionary salespeople
A category of sales support personnel who are not typically involved in the direct solicitation of purchase orders. Their primary roles are disseminating information, stimulating the sales effort to convert prospects into customers, and reinforcing customer relationships.
sales professionalism
A customer-oriented approach that uses truthful, nonmanipulative tactics to satisfy the long-term needs of both the customer and the selling firm.
Dichotomous questions
A directive form of questioning; these questions ask the customer to choose from two or more options.
request for proposal
A form developed by firms and distributed to qualified potential suppliers that helps suppliers develop and submit proposals to provide products as specified by the firm.
Content marketing
A form of marketing that involves creating and distributing valuable, relevant, and consistent content to attract and retain buyers.
Trust-Based Relationship Selling
A form of personal selling requiring that salespeople earn customer trust and that their selling strategy meets customer needs and contributes to the creation, communication, and delivery of customer value. Primary Focus: The customer and the customer's customers Desired Outcomes: Trust, joint planning, mutual benefits, enhance profits
Business market
A market composed of firms, institutions, and governments who acquire goods and services to use as inputs into their own manufacturing process, for use in their day-to-day operations, or for resale to their own customers. Stress overall value as the cornerstone for purchase decisions. Distinguishing characteristics: 1. Concentrated Demand 2. Derived Demand 3. Higher levels of Demand Fluctuation 4. Purchasing Professionals 5. Multiple Buying Influences 6. Collaborative Buyer-Seller Relationship
Consumer market
A market in which consumers purchase goods and services for their use or consumption. Highly influenced by peer group behavior, aesthetics, and personal taste
SIER
A model that depicts active listening as a hierarchical, four-step sequence of sensing, interpreting, evaluating, and responding. - Sensing - Interpreting - Evaluating - Responding
referral
A name of a company or person given to the salesperson as a lead by a customer or even a prospect who did not buy at this time.
needs gap
A perceived difference between a buyer's desired and actual state of being.
two-factor model of evaluation
A postpurchase evaluation process buyers use that evaluates a product purchase using (1) functional and (2) psychological attributes.
seminars
A presentation salespeople give to generate leads and provide information to prospective customers who are invited to the seminar by direct mail, word of mouth, or advertising on local television or radio.
Multiattribute model
A procedure for evaluating suppliers and products that incorporates weighted averages across desired characteristics. (1) assessments of how well the product or supplier performs in meeting each of the specified characteristics (2) the relative importance of each specified characteristic to the buying firm.
Strategic Prosepecting
A process designed to identify, qualify, and prioritize sales opportunities, whether they represent potential new customers or opportunities to generate additional business from existing customers.
straight rebuy decision
A purchase decision resulting from an ongoing purchasing relationship with a supplier.
Modified rebuy decisions
A purchase decision that occurs when a buyer has experience in purchasing a product in the past but is interested in acquiring additional information regarding alternative products and/or suppliers.
new task decision
A purchase decision that occurs when a buyer is purchasing a product or service for the first time.
SPIN
A questioning system that sequences four types of questions designed to uncover a buyer's current situation and inherent problems, enhance the buyer's understanding of the consequences and implications of those problems, and lead to the proposed solution. - Situation questions - Problem questions - Implication questions - Need-payoff questions.
ADAPT
A questioning system that uses a logic-based funneling sequence of questions, beginning with broad and generalized inquiries designed to identify and assess the buyer's situation. - Assessment questions - Discovery questions - Activation questions - Projection questions - Transition questions
sales funnel or sales pipeline
A representation of the trust-based sales process and strategic sales prospecting process in the form of a funnel.
Which of the following nonverbal cues is associated with questions and can often be perceived as reflecting uncertainty?
A rising pitch during the course of a message
Revenue producers
A role fulfilled by salespeople that brings in revenue or income to a firm or company.
Strategic orchestrator
A role the salesperson plays in consultative selling where he or she arranges the use of the sales organization's resources in an effort to satisfy the customer.
Long-term ally
A role the salesperson plays in consultative selling where he or she supports the customer, even when an immediate sale is not expected.
Business consultant
A role the salesperson plays in consultative selling where he or she uses internal and external (outside the sales organization) sources to become an expert on the customer's business. This role also involves educating customers on the sales firm's products and how these products compare with competitive offerings.
combination sales job
A sales job in which the salesperson performs multiple types of sales jobs within the framework of a single position.
noncompeting salespeople
A salesperson selling noncompeting products.
Predictability
A salesperson's behavior that can be foretold on the basis of observation or experience by a buyer.
Compatibility and likability
A salesperson's commonalities with other individuals.
strategic prospecting plan
A salesperson's plan for gathering qualified prospects.
Sales process
A series of interrelated steps beginning with locating qualified prospective customers. From there, the salesperson plans the sales presentation, makes an appointment to see the customer, completes the sale, and performs post-sale activities. 3 major phases: 1. Initiating Customer Relationships 2. Developing Customer Relationships 3. Enhancing Customer Relationships
Inbound telemarketing
A source of locating prospects whereby the prospect calls the company to get information.
outbound telemarketing
A source of locating prospects whereby the salesperson contacts the prospect by telephone.
Desired state
A state of being based on what the buyer desires.
introduction
A variation of a referral where, in addition to requesting the names of prospects, the salesperson asks the prospect or customer to prepare a note or letter of introduction that can be sent to the potential customer.
Express Warranty
A way a salesperson can create product liabilities by giving a product warranty or guarantee that obligates the selling organization even if the salesperson does not intend to give the warranty.
_____ is defined as the cognitive process of effectively sensing, interpreting, evaluating, and responding to the verbal and nonverbal messages of current or potential customers.
Active listening
According to a study examining the status of sales as a true profession, which of the following is an area in which sales needs to improve?
Adherence to a uniform ethical code
Order-takers
Also called farmers, these salespeople specialize in maintaining current business. -existing business
Order-getters
Also called hunters, these salespeople actively seek orders, usually in a highly competitive environment. -new business
AIDA
An acronym for the various mental states the salesperson must lead customers through when using mental states selling: Attention Interest Desire Action
Mental states selling
An approach to personal selling that assumes that the buying process for most buyers is essentially identical and that buyers can be led through certain mental states, or steps, in the buying process; also called the formula approach. -not custumer-oriented
Need satisfaction selling
An approach to selling based on the notion that the customer is buying to satisfy a particular need or set of needs. -questioning, probing tactic to discover problem 1. Uncover and confirm buyer needs 2. Present offering to satisfy buyer needs 3. Continue selling until purchase decision
Stimulus response selling
An approach to selling where the key idea is that various stimuli can elicit predictable responses from customers. Salespeople furnish the stimuli from a repertoire of words and actions designed to produce the desired response. -most suitable for relatively unimportant purchase decisions, when time is severely constrained and when professional buyers are not the prospects
Continued affirmation
An example of stimulus response selling in which a series of questions or statements furnished by the salesperson is designed to condition the prospective buyer to answering "yes" time after time, until, it is hoped, he or she will be inclined to say "yes" to the entire sales proposition.
Problem-solving selling
An extension of need satisfaction selling that goes beyond identifying needs to developing alternative solutions for satisfying these needs. 1. Define problem 2. Generate alternative solutions 3. Evaluate alternative solutions 4. Continue selling until purchase decision
Personal selling
An important part of marketing that relies heavily on interpersonal interactions between buyers and sellers to initiate, develop, and enhance customer relationships.
sales prospect
An individual or organization that has a need for the product or service, has the budget or financial resources to purchase the product or service, and has the authority to make the purchase decision.
In the context of the trust-based sales process, which of the following is an essential part of initiating customer relationships?
Assessing the situation of prospective customers
The overall evaluation scores of a commercial glue for attributes such as ease of application, bonding time, durability, reliability, and shelf-life in storage are 75, 45, 78, 75, and 62, respectively. The importance of which of the following attributes is most likely to be deemphasized by the salesperson selling the glue?
Bonding time
In the context of the types of buyers, which of the following is a difference between business markets and consumer markets?
Business buyers tend to be larger in size as compared to consumer buyers.
Sales dialogue
Business conversations between buyers and sellers that occur as salespeople attempt to initiate, develop, and enhance customer relationships. Sales dialogue should be customer-focused and have a clear purpose.
Sarah is a salesperson who prefers calling or meeting her sales leads without any prior knowledge about them or their companies. In this scenario, which of the following methods of sales prospecting does Sarah prefer using?
Cold canvassing
Which of the following examines the purchasing behavior of existing customers?
Company records
Openness
Completely free from concealment: exposed to general view or knowledge.
Service issues
Concerns of the buyer that the salesperson should address.
Which of the following is a reason to use concrete expressions in messages?
Concrete expressions are less likely to be misunderstood than their abstract counterparts.
Reliability
Consistency of a salesperson over time to do what is right.
Cold calling
Contacting a sales lead unannounced and with little or no information about the lead.
Which of the following is considered an illegal activity in the sales profession?
Defrauding
Derived demand
Demand in business markets that is closely associated with the demand for consumer goods.
_____ denotes that the demand in business markets is closely associated with the demand for consumer goods.
Derived demand
Product knowledge
Detailed information on the manufacture of a product and knowing whether the company has up-to-date production methods.
Which of the following is a category of support salespeople?
Detailers
Directories
Electronic or print sources that provide contact and other information about many different companies or individuals.
trade shows
Events where companies purchase space and set up booths that clearly identify each company and its offerings and that are staffed with salespeople who demonstrate the products and answer questions.
Honesty
Fairness and straightforwardness of conduct.
Negligence
False claim(s) made by a salesperson about the product or service he or she is trying to sell.
Misrepresentation
False claim(s) made by a salesperson.
must-have attributes
Features of the core product that the customer takes for granted.
Nonverbal clusters
Groups of related nonverbal expressions, gestures, and movements that can be interpreted to better understand the true message being communicated.
Candor
Honesty of the spoken word.
Which of the following is an example of an open-end question that is designed to be evaluative in nature?
How do you feel about rice cookers?
Fairness
Impartiality and honesty.
Which of the following prospecting methods involves using a phone number (usually a toll-free number) that prospects or customers can call for information?
Inbound telemarketing
expressives
Individuals who are high on both responsiveness and assertiveness, are animated, communicative, and value building close relationships with others.
amiables
Individuals who are high on responsiveness, low on assertiveness, prefer to belong to groups, and are interested in others.
analyticals
Individuals who are low on responsiveness and assertiveness, analytical and meticulous, and disciplined in everything they do.
drivers
Individuals who are low on responsiveness, high on assertiveness and detached from relationships.
Influencers
Individuals within an organization who guide the decision process by making recommendations and expressing preferences.
Deciders
Individuals within an organization who have the ultimate responsibility of determining which product or service will be purchased.
Initiators
Individuals within an organization who identify a need.
Users
Individuals within an organization who will actually use the product being purchased.
Company records
Information about customers in a company database.
Customer knowledge
Information about customers that is gathered over time and from very different sources that helps the salesperson determine customer needs to better serve them.
Technology knowledge
Information salespeople must have about the latest technology.
Market knowledge
Information salespeople must have if larger companies break their customers into distinct markets; salespeople must be familiar with these markets to tailor their sales presentations.
In the context of the SIER model, which of the following should listeners immediately start doing after receiving a message?
Interpreting
Which of the following is true of proper questioning?
It can facilitate both the buyer's and seller's understanding of a problem and its possible solutions.
Which of the following is true of trust-based selling?
It has been referred to as talking with customers.
From a salesperson's perspective, which of the following is an advantage of obtaining specific information about the selling situation?
It helps the salesperson understand all aspects of a prospect's buying process.
Which of the following is an advantage of having basic information about a prospect?
It helps the salesperson understand the prospect from a personal perspective.
Ramon, an employee at Spellberg Inc., is frustrated at his job because of its monotonous nature, lack of freedom, and lack of appreciation for hard work. After studying the characteristics of various professions, he decides to switch his career to sales. Which of the following are some of the characteristics of sales that most likely interested Ramon?
Job variety, good compensation, and independence
competitor knowledge
Knowledge of a competitor's strengths and weaknesses in the market.
Price knowledge
Knowledge tools salespeople must have about pricing policies in order to quote prices and offer discounts on products.
Promotion knowledge
Knowledge tools salespeople must possess to explain their firms' promotional programs.
Which of the following is true of sales opportunities for salespeople?
Larger organizations typically represent better sales opportunities than smaller ones.
Social selling
Leveraging social media to identify, understand, engage, and network with prospects to develop relationships
lead management services
Lists of targeted businesses or individuals with detailed contact and other information, as well as e-mail, direct mail, telephone, and Web-based marketing services to connect with targeted leads.
Gatekeepers
Members of an organization who are in the position to control the flow of information to and between vendors and other buying center members.
_____ is an approach to personal selling that assumes that the buying process for most buyers is essentially identical and that buyers can be led through certain intellectual steps in the buying process.
Mental states selling
_____ form a category of sales support personnel who usually work for a manufacturer but might also work for brokers and manufacturing representatives, especially in the grocery industry.
Missionary salespeople
Inside sales
Non-retail salespeople who remain in their employer's place of business while dealing with customers.
Assessment questions
One of the five stages of questions in the ADAPT questioning system that do not seek conclusions but rather should address the buyer's company and operations, goals and objectives, market trends and customers, current suppliers, and even the buyer as an individual.
Discovery questions
One of the five stages of questions in the ADAPT questioning system that follows up on the assessment questions; they should drill down and probe for further details needed to develop, clarify, and understand the nature of the buyer's problems fully.
Activation questions
One of the five stages of questions in the ADAPT questioning system used to "activate" the customer's interest in solving discovered problems by helping him or her gain insight into the true ramifications of the problem and to realize that what might initially seem to be of little consequence is, in fact, of significant consequence.
Projection questions
One of the five stages of questions in the ADAPT questioning system used to encourage and facilitate the buyer in "projecting" what it would be like without the problems that have been previously "discovered" and "activated."
Transition questions
One of the five stages of questions in the ADAPT questioning system used to smooth the transition from needs discovery into the presentation and demonstration of the proposed solution's features and benefits.
Implication questions
One of the four types of questions in the SPIN questioning system that follows and relates to the information flowing from problem questions; they are used to assist the buyer in thinking about the potential consequences of the problem and understanding the urgency of resolving the problem in a way that motivates him or her to seek a solution.
Problem questions
One of the four types of questions in the SPIN questioning system that follows the more general situation questions to further probe for specific difficulties, developing problems, and areas of dissatisfaction that might be positively addressed by the salesperson's proposed sales offering.
Need-payoff questions
One of the four types of questions in the SPIN questioning system that is based on the implications of a problem; they are used to propose a solution and develop commitment from the buyer.
Situation questions
One of the four types of questions in the SPIN questioning system used early in the sales call that provides salespeople with leads to develop the buyer's needs and expectations fully.
Sources of Information
Online searches Online and print directories Prospect Web site Social media Annual reports Trade and business press Professional organizations Company databases Contact with prospect
The question "How do you currently measure performance?" is an example of a(n) _____.
Open-end questions
_____ are also called nondirective questions and are designed to let the customer respond freely.
Open-end questions
Which of the following is an impact of information technology on the buying process?
Order times have reduced
_____ are salespeople who actively seek orders, usually in a highly competitive environment.
Order-getters
_____ are salespeople who specialize in maintaining current business.
Order-takers
Purchasers
Organizational members who negotiate final terms of the purchase and execute the actual purchase.
Sales leads or suspects
Organizations or individuals who might possibly purchase the product or service a salesperson offers.
tracking system
Part of the strategic prospecting plan that records comprehensive information about the prospect, traces the prospecting methods used, and chronologically archives outcomes from any contacts with the prospect.
Dependability
Predictability of a person's actions.
Open-end questions
Questions designed to let the customer respond freely; the customer is not limited to one- or two-word answers but is encouraged to disclose personal and/or business information. Words often used to begin open-end questions include what, how, where, when, tell, describe, and why.
Closed-end questions
Questions designed to limit the customer's responses to one or two words.
Probing questions
Questions designed to penetrate below generalized or superficial information to elicit more articulate and precise details for use in needs discovery and solution identification. (1) request clarification (2) encourage elaboration (3) verify information and responses
Reactive questions
Questions that refer to or directly result from information the other party previously provided.
Evaluative questions
Questions that use the open and closed-end question formats to gain confirmation and to uncover attitudes, opinions, and preferences the prospect holds.
Tactical questions
Questions used to shift or redirect the topic of discussion when the discussion gets off course or when a line of questioning proves to be of little interest or value.
_____ has been concerned with the image of salespeople and has developed a code of ethics as a set of principles that outline the minimum requirements for professional conduct.
Sales and Marketing Executives International
Advertising inquiries
Sales leads generated from company advertising efforts.
Pioneers
Salespeople who are constantly involved with either new products, new customers, or both. Their task requires creative selling and the ability to counter the resistance to change that will likely be present in prospective customers. -new business
Which of the following is considered critical to success in selling?
Self-confidence
Skills for Trust-based relationship selling
Selling skills Information gathering Listening and questioning Strategic problem solving Creating and demonstrating unique, value-added solutions Teambuilding and teamwork
Which of the following is used by firms to generate leads and provide information to prospective customers by inviting them through direct mail, word of mouth, or advertising on local television and radio?
Seminars
Jillian, a salesperson, is known to always pursue the best sales opportunities. Most people in her organization believe that Jillian's success is a result of a strategic prospecting plan. Which of the following statements supports this belief?
She sets aside three hours every week for identifying and qualifying sales opportunities.
_____ are the specific needs that are contingent on, and often a result of, conditions related to the specific environment, time, and place.
Situational needs
In recent years, which of the following has gained popularity as a valuable information source for salespeople?
Social media
Contributions
Something given to improve a situation or state for a buyer.
Economic stimuli
Something that stimulates or incites activity in the economy.
_____ is a process designed to identify, qualify, and prioritize sales opportunities, whether they represent potential new customers or opportunities to generate additional business from existing customers.
Strategic Prospecting
While giving a presentation about various insurance policies to a potential client, Robert, an insurance salesperson, asked the client to give him a general idea about his current financial position. The client, however, was unwilling to provide such details to Robert. To avoid embarrassing the client and himself, Robert changed the topic of discussion by asking the client a question about something that he had mentioned earlier. In the given scenario, Robert most likely used a(n) _____ to redirect the discussion.
Tactical question
trust-based sales communication
Talking with rather than at the customer. A collaborative and two-way form of communication that allows buyers and sellers to develop a better understanding of the need situation and work together to cocreate the best response for resolving the customer's needs.
Buying teams
Teams of individuals in organizations that incorporate the expertise and multiple buying influences of people from different departments throughout the organization.
technical support salespeople
Technical specialists who may assist in the design and specification process, installation of equipment, training of customer's employees, and follow-up technical service.
Adaptive selling
The ability of salespeople to alter their sales messages and behaviors during a sales presentation or as they encounter different sales situations and different customers.
Expertise
The ability, knowledge, and resources to meet customer expectations.
Customer orientation
The act of salespeople placing as much emphasis on the customer's interests as their own.
Delighter attributes
The augmented features included in the total market offering that go beyond buyer's expectations and have a significant positive impact on customer satisfaction.
ideal customer profile
The characteristics of a firm's best customers or the perfect customer.
active listening
The cognitive process of actively sensing, interpreting, evaluating, and responding to the verbal and nonverbal messages of current or potential customers. - Underscores the importance of receiving and interpreting both verbal and nonverbal cues and messages to better determine the full and correct meaning of the message - Incorporates a well-accepted model of listening
Nonverbal communication
The conscious and unconscious reactions, movements, and utterances that people use in addition to the words and symbols associated with language.
Customer value
The customer's perception of what they get for what they have to give up, for example, benefits from buying a product in exchange for money paid.
Assertiveness
The degree to which a person holds opinions about issues and attempts to dominate or control situations by directing the thoughts and actions of others.
Psychological Needs
The desire for feelings of assurance and risk reduction, as well as positive emotions and feelings such as success, joy, excitement, and stimulation.
Knowledge Needs
The desire for personal development, information, and knowledge to increase thought and understanding as to how and why things happen.
Trust
The extent of the buyer's confidence that he or she can rely on the salesperson's integrity.
Functional attributes
The features and characteristics that are related to what the product actually does or is expected to do.
Responsiveness
The level of feelings and sociability an individual openly displays.
_____ is a procedure for evaluating suppliers and products that incorporates weighted averages across desired characteristics.
The multi-attribute model of evaluation
Functional Needs
The need for a specific core task or function to be performed.
Social Needs
The need for acceptance from and association with others.
Situational Needs
The needs that are contingent on, and often a result of, conditions related to the specific environment, time, and place.
Proxemics
The personal distance that individuals prefer to keep between themselves and other individuals; an important element of nonverbal communication. Intimate zone: reserved for intimate relationships with immediate family and loved ones. Personal zone: for personal relationships with close friends and associates. Social zone: for business client relationships and is the zone in which most business is conducted. Public zone: for the general public and group settings such as classrooms and presentations.
outsource
The process of giving to a supplier certain activities that were previously performed by the buying organization.
Consultive selling
The process of helping customers reach their strategic goals by using the products, services, and expertise of the sales organization. 3 primary roles: strategic orchestrator, business consultant, and long-term ally
Diffusion of innovation
The process whereby new products, services, and ideas are distributed to the members of society.
Security
The quality of being free from danger.
Which of the following is likely to happen if a sender does not use proper grammar while sending a message?
The receiver will focus on the sender rather than the message.
Which of the following is the first step in a business buyer's purchase process?
The recognition of a problem or need
Ethics
The right and wrong conduct of individuals and institutions of which they are a part.
qualifying sales leads
The salesperson's act of searching out, collecting, and analyzing information to determine the likelihood of the lead being a good candidate for making a sale.
Confidentiality
The state of being entrusted with information from a buyer that cannot be shared.
Supply chain management
The strategic coordination and integration of purchasing with other functions within the buying organization as well as external organizations.
Which of the following statements is true of inside-sales personnel?
They are non-retail salespeople who remain in their employer's place of business while dealing with customers
Which of the following statements is true of salespeople?
They must understand their buyers and respond to their specific needs, wants, and expectations.
Which of the following is true of salespeople?
They play a role in producing revenue for their firms
Which of the following is true of the most productive salespeople?
They pursue the best sales opportunities and translate a larger percentage of these opportunities into actual sales.
electronic data interchange (EDI)
Transfer of data electronically between two computer systems.
More money is spent on personal selling than on any other form of marketing communications
True
Which of the following is a difference between social needs and psychological needs?
Unlike psychological needs, social needs are the need for acceptance from and association with others.
centers of influence
Well-known and influential people who can help a salesperson prospect and gain leads.
Basis of the bargain
When a buyer relies on the seller's statements in making a purchase decision.
Acceleration principle
When demand increases (or decreases) in the consumer market, the business market reacts by accelerating the buildup (or reduction) of inventories and increasing (or decreasing) plant capacity.
Which of the following statements is true of expertise in today's sales process?
Young salespeople can shadow more experienced salespeople to learn what it takes to be successful.
A purchase decision is characterized as a modified rebuy decision when:
a buyer wishes to consider new suppliers for current purchase needs or new products that existing suppliers offer.
Needs are the result of:
a gap between buyers' desired states and their actual states
When applying the multi-attribute model of evaluation, buyers:
account for the relative importance of each characteristic of a product or supplier.
In the context of the ADAPT questioning system, projection questions are preceded by:
activation questions
In the context of business markets, the increased interdependence between buyers and sellers and the desire to reduce the risk of the unknown has led to:
an emphasis on the development of long-term buyer-seller relationships.
Ashley, a sales executive, is describing her product to a potential client. During the conversation, Ashley notices that her client is clenching his jaw tightly. In the context of nonverbal communication, it can be said Ashley's client is _____.
angry
The fastest way for a salesperson to win the respect of a buyer is to:
be perceived as being an expert
In the context of the qualifications and skills required for success by salespeople, initiative refers to:
being willing to take on responsibilities and challenges
Salespeople can instill a desire for a product in a buyer by:
building a sense of urgency
Simona is a sales representative at a cosmetics company. When a customer asked her a question about a face cream, she honestly told the customer that although the face cream is beneficial, it may make the skin oily. In this scenario, Simona exhibits _____.
candor
In a buyer-seller relationship, which trust-building characteristic does the question "Will the buyer like doing business with the salesperson?" address?
compatability
Steve is hired as a salesperson for Turtle Computer Inc. and is responsible for business-to-business sales. Steve understands the technical specifications and performance statistics of the computers sold by Turtle Computer Inc. better than any of the other salespeople. However, Steve is relatively unfamiliar with the ways in which businesspeople use computers on a day-to-day basis and is unable to offer products based on their specific needs. In this scenario, it is evident that Steve needs to improve his _____.
customer knowledge
Michelle is a new sales representative for a shoe store. Despite having high sales targets, Michelle always spends considerable time trying to understand her clients' needs so that they are satisfied with the shoes they buy. In this scenario, Michelle most likely has a _____.
customer orientation
Robert is a salesperson. He ensures that he remembers his customer's name, title, and contact information before meeting him or her. Robert does this to:
establish rapport with the customer.
Sarah is a new sales representative for an automobile company. She possesses immense knowledge about cars. She is rarely asked a question to which she does not know the answer, and customers seek her advice when making their purchase decisions. Given this information, it is evident that customers most likely seek Sarah's advice because of her _____.
expertise
The term _____ refers to a way a salesperson can create product liabilities by giving a product assurance that obligates the selling organization even if the salesperson does not intend to give the assurance.
express warranty
To be successful in problem-solving selling, salespeople must be able to:
get the buyer to agree that a complication exists and that resolving it is worth the time and effort required
In the context of nonverbal communication, a person who is feeling defensive or apprehensive would:
glance sideways.
To better understand their own products' position in the marketplace, salespeople must:
have knowledge of their competitor's strengths and weaknesses.
Martin, a computer salesperson, tells a customer that the computers he is attempting to sell weigh only four pounds when, in reality, they weigh six pounds. The customer, however, is not convinced and does not make the purchase. Martin's behavior is considered unethical because:
he provides deceptive information to the customer
While making purchase decisions, individuals within an organization who realize that the acquisition of a product might solve an organizational need or problem are referred to as _____.
initiators
Salespeople should be familiar with their own company's operation and policies because such knowledge helps them in:
inspiring the trust of buyers
Unlike traditional selling, trust-based relationship selling:
is a selling strategy that focuses on meeting customer needs.
Unlike traditional selling methods, today's contemporary selling process:
is embedded within the relationship marketing paradigm
It is important for most salespeople to spend time prospecting because:
it is likely that they will lose some customers over time.
Trust is an important factor in sales in today's competitive marketplace because:
long-term buyer-seller relationships are evolving as the preferred form of doing business
In the context of mental states selling, salespeople can stimulate a buyer into action or persuade the buyer to make a product purchase by:
making multiple attempts to close the sale of the product
It is important for salespeople to have sound industry and company knowledge because:
many buyers are too busy to stay informed
Scott believes that his customers buy products and services to satisfy a particular desire or a set of desires. He makes an extensive effort to figure out what his customers' requirements are and then helps them meet these requirements. He uses a selling approach that focuses on his customers rather than on himself. In this scenario, Scott most likely uses _____.
need satisfaction selling
Tim asked his customer, "Would you be interested in increasing sales revenue by 30 percent?" According to the SPIN system of questioning, Tim's question is an example of a(n) _____.
need-payoff questions
Pete is a salesperson who relies on other salespeople and professionals who work near his organization to help him identify potential customers. Pete relies on _____ as a method for prospecting.
networking
Employees at Vyant Tech have to go out to nearby coffee shops to get a cup of coffee. This causes a decline in their daily productivity. As a result, the head of operations decides to get a high-tech coffee machine installed in the office to save time. After conducting extensive research and comparing coffee machines of various brands, he purchases one that is quick, durable, and would allow the employees to try out different coffee flavors. In this scenario, the head of operations has most likely engaged in a _____ purchase decision.
new task
How buyers define trust
openness, dependability, candor, honesty, confidentiality, security, reliability, fairness, and predictability
The final step in the strategic prospecting process is:
planning the sales dialogue.
One of the primary causes of salesperson failure is:
poor listening skills.
Molly is confused about which washing machine she should buy—a front-load machine or a top-load machine. Peter, a salesperson at an electronics store, asked about her budget and how many articles of clothing she intends to wash each day on an average. Considering her specific requirements as well as the amount of money she is willing to spend, he suggests that Molly buy a top-load washing machine. In this scenario, it is evident that Peter possesses sound _____.
product knowledge
If a buyer is evaluating his or her experience with a product purchase based on the product's ability to respond to requests, the buyer is assessing the product on the basis of a:
psychological attribute
When a salesperson has been introduced to a sales lead by another customer, that salesperson has been provided a(n) _____.
referral
While selling to expressives, salespeople should be:
relationship-oriented and fast-paced.
According to the SIER model, the first step in the process of active listening is _____.
sensing
SPIN is an acronym for:
situation questions, problem questions, implication questions, and need-payoff questions.
North Americans generally recognize four distinct proxemic zones. In this context, salespeople typically begin working with a prospect at the far end of the _____.
social zone
Marie, a salesperson, uses a variety of statements and questions while trying to sell products to prospective buyers. She designs the statements and questions in such a way that they elicit favorable answers from the prospective buyers until a desired result is obtained. In this scenario, Marie most likely uses _____.
stimulus response selling
The term _____ refers to the role a salesperson plays in consultative selling where he or she arranges the use of the sales organization's resources in an effort to satisfy a customer.
strategic orchestrator
It is important for salespeople to _____ while waiting to see buyers.
strike up conversations with other sales representatives
During a job interview or a sales call, if you lean back and place both hands behind your head, you are most likely to convey the nonverbal message of _____.
superiority
Widget Corp. is interested in purchasing new turbines. The Widget Corp. buying team has narrowed the alternatives to products proposed by five suppliers—supplier 1, supplier 2, supplier 3, supplier 4, and supplier 5. To select a supplier, the team is considering two characteristics—ease of application and durability. The purchase decision lies on the performance score and the importance weight of each characteristic. The performance scores for ease of application of supplier 1, supplier 2, supplier 3, supplier 4, and supplier 5 are 10, 8, 7, 5, and 9, respectively. The performance scores for durability of supplier 1, supplier 2, supplier 3, supplier 4, and supplier 5 are 6, 8, 9, 7, and 5, respectively. The buying team assigns ease of application an importance score of 7 against a score of 9 for durability. According to the multi-attribute model of evaluation, the buying team of Widget Corp. is most likely to select _____.
supplier 3
While selling to analyticals, salespeople should be:
task-oriented and slow-paced.
Straight rebuy decisions occur when:
there is a long-term purchase agreement.
It is important for salespeople to have complete understanding of their companies' pricing policies because:
they are often responsible for quoting prices and offering discounts.
Kate is a salesperson for an automobile company. Kate believes that the best way for her potential and existing customers to know about her company's products is by seeing the products in person. Given this information, which of the following would most likely be the best method of prospecting for Kate?
trade shows
Which of the following can be used by companies and salespeople to stimulate interest in products and provide leads?
trade shows
Kevin is a salesperson who believes that salespeople should not just find prospects and make sales presentations but should also be involved in listening to and questioning customers about their needs, creating and demonstrating unique solutions, and building an efficient and motivated sales team. In this context, Kevin is most likely to be engaged in _____.
trust-based relationship selling
Samuel is a salesperson in a computer manufacturing company. He is currently engaged in prospecting and is trying to communicate with a high-profile client to form a business relationship with him. In this scenario, Samuel should communicate:
using the mode of communication his client prefers.