MKT 215 Midterm (Questions)

Why is it important for a salesperson to establish objectives for each sales call?

It is important for salespeople to establish sales call objectives because doing so keeps them organized, focused, and goal-directed. Setting multiple sales call objectives (e.g., during an introductory call the objective may be simply to introduce the salesperson and his or her company and to gather information on the buyer's needs) helps the salesperson have a plan to keep the sales moving forward when the primary objective is not met (i.e., a fallback plan). Finally, having to set sales call objectives reminds salespeople to have a purpose for each sales call, reducing the likelihood that they will waste their time and their customers' time.

What company sources can be used for prospecting?

Many organizations provide a variety of ways to help salespeople generate leads and identify sales prospects. These sources include company records, advertising inquiries, inbound telemarketing, outbound telemarketing, trade shows, and seminars.

Why is trust important to a salesperson?

Today's customers are more sophisticated, more informed (or, at least, have access to more information), and are more aware of traditional manipulative "sales tactics." In addition, buying organizations are interested in taking advantage of efficiencies associated with using a smaller number of suppliers. Salespeople who understand this know that the stereotypical type of selling (e.g., manipulative, pushy, and aggressive) is ineffective and that building mutually beneficial relationships with their customers is the only way to compete in the new millennium. Trust is important to a salesperson because it is essential for building these long-term relationships.

Why is prospecting difficult for some salespeople?

Prospecting is difficult for some salespeople because it is a process filled with rejection. This is problematic to some salespeople for some reasons. First, many salespeople fear or, at least, don't like rejection. Second, because it is filled with rejection, many salespeople may feel that prospecting is an inefficient use of their time. In either (or both) case(s), salespeople will find prospecting difficult because they will not allocate resources necessary for making this process more effective.

How is personal selling different from other forms of marketing communications?

The primary difference between personal selling and other forms of marketing communications is that it is not directed at mass markets. It involves salespeople talking with their buyers before, during, and after the sale.

Why is sales dialogue and presentation preplanning important?

Sales presentation preplanning is important because it helps keep the salesperson organized and focused. The key element to sales presentation planning is the creation of one or more sales call objectives. These objectives are important because they help the salesperson manage accounts through the sales process and they serve as a tool for measuring performance.

How can salespeople enhance their chances of securing an appointment with a prospect?

Salespeople will be more likely to secure an appointment with a prospect if they follow three simple directives: give the prospect a reason an appointment should be granted; request a specific amount of time; and suggest a specific time for the appointment. In general, salespeople need to show that they recognize that the prospect's time is valuable.

Discuss how the four sequential elements of sensing, interpreting, evaluating, and responding (SIER) combine to create what is referred to as active listening.

Active listening is the cognitive process of actively sensing, interpreting, evaluating, and responding to the verbal and nonverbal messages of present or potential customers. In other words, it means concentrating on identifying the message the buyer is trying to convey through both verbal and nonverbal communication. Sensing is the process of receiving the verbal and nonverbal messages sent by the buyer. It requires the salesperson to both hear what the buyer is saying and see how the buyer is putting the message across (i.e. body language). Interpreting is the process of drawing meaning from the message (both verbal and nonverbal). Salespeople must make sure they consider the buyer's experiences, knowledge, and attitudes when deriving meaning from the message. Evaluating is the process of determining the extent to which the salesperson agrees with what the buyer is communicating. Salespeople should wait until the buyer has finished communicating his or her message and until they are sure they understand the message before evaluating it. Finally, responding is the process of providing the buyer with feedback, verbal and/or nonverbal, related to the message. The salesperson should use responses to communicate understanding, encourage elaboration, and control the flow of the conversation.

What are the implications for a salesperson if, when making a sales call, he or she discovers that there is no needs gap present? Illustrate your answer with an example.

Answers to the question will vary. However, the student should demonstrate an understanding of the salesperson's ability to help buyers uncover needs that they had not recognized previously. Salespeople often call on customers who do not yet realize that they have a need for the salesperson's product.

What are the implications of buying teams for a salesperson selling complex production equipment to a manufacturer firm? Develop an example to explain further and illustrate your answer.

Answers to this question will vary. However, students' answers should demonstrate their understanding of a buying center. Buying team members are described in terms of their roles and responsibilities within the team. Salespeople need to adjust and interact with each member in those roles.

List and compare the probable functional, situational, psychological, social, and knowledge needs of (a) a large financial investment office and (b) a college student, both of whom are looking to purchase a new computer printer.

Answers to this question will vary. Students should, however, demonstrate an understanding of how the various needs of a business organization differ from those of a college student. For example, the business organization may have a functional need for large prints, while the college student may have a need (functional as well) for small prints.

Why have knowledge and the capability to creatively apply that knowledge in creating unique solutions become so important for today's salesperson in the business-to-business marketplace?

As markets become more competitive and technology (e.g., e-commerce) improves, salespeople will have to "add value" to their relationship with the customers to be successful. The ability of salespeople to solve problems plays an important role in adding value to their customer relationships. In addition, the increased competition brought by globalization requires salespeople to be more creative so that they can meaningfully differentiate their market offers.

Explain why both verbal and written communication are a necessity for a successful salesperson.

Both verbal and written forms of communication are important because each plays a crucial role in the purchase decision. Verbal communication is important for learning about the customer's situation and particular needs and then presenting solutions to those needs in a manner the customer understands. Written communication is important because it is often perceived as being more credible; word processing programs have subroutines to check spelling and grammar. It creates a permanent record of claims and intentions. Because written communication is much less flexible, it must clearly convey the intended message. Written and verbal communications are often used together and should be mutually supportive to maximize the impact of the message and to reduce ambiguity.

What is the difference between buying motives and benefits?

Buying motives refer to the most important facts from the customer's perspective in making a purchase decision. Buying motives motivate the buyer to make a purchase, and they may be rational or emotional or a combination of both. Benefits, on the other hand, describe added value for the customer—the favorable outcome derived from a feature. Benefits are the sources of value that address the buyer's buying motives. Salespeople should present benefits that, at a minimum, address the buyer's buying motives.

Do you see the need for any salesperson to ever use a canned sales presentation?

Canned sales presentations may be effective when the product line is narrow, and when there is little variation in the types of value customers that can derive from the product(s) or in the needs the product addresses. In addition, canned sales presentations may be helpful to inexperienced salespeople or when an organization wants tight control over the information presented by salespeople.

How does the consultative selling approach differ from problem-solving and need satisfaction selling? Explain the three key roles of consultative salespersons.

Consultative selling differs from problem-solving selling in that this type of selling is focused on helping customers reach their strategic goals, not merely solving immediate problems or filling immediate needs. To engage in consultative selling, the salesperson must possess a great deal of knowledge about the customer's business and industry. This is necessary so that the salesperson can provide the customers with insight into all areas of their business that influence their abilities to reach their strategic goals. The three key roles of consultative salespeople include the strategic orchestrator, the business consultant, and the long-term ally. As the strategic orchestrator, the salesperson's primary job is to utilize the resources of the sales organization and to help the customer obtain his/her strategic objectives in an effort to satisfy the customer. As the business consultant, the salesperson's job is to become an expert on the customer's business and industry. This often entails seeking internal and external resources to become better educated about the customer's business. As a long-term ally, the salesperson's job is to support the customer even if a sale is not expected in the short term.

What does it mean for a salesperson to have a customer orientation?

Customer orientation means that the salesperson is as concerned about his or her customers' interests as his or her own. It means truly understanding the customer's situation and then presenting fair and balanced solutions addressing the customer's needs. In other words, it means looking out for the customer. This requires salespeople to be honest, candid, and fair when dealing with the customer.

Explain why expertise is such an important relationship builder.

Expertise is such an important relationship builder because it gives the salesperson credibility and is associated with several the other trust builders. Credibility affords the salesperson a degree of the buyer's trust prior to the salesperson actually earning it. Expertise may also help the salesperson earn the buyer's trust through the other trust builders. For example, salespeople with greater expertise are more likely to have greater competence and/or make more significant contributions.

Explain the role of functional attributes and psychological attributes in the postpurchase determination of customer satisfaction.

Functional attributes refer to the features that allow a product to do what it is supposed to do and to the extent to which it does as expected. Products that do not perform as expected will have a negative effect on customer satisfaction. Products that perform better than expected will have a positive effect on customer satisfaction. Psychological attributes refer to the things in the market that shape the buyer's feelings about the acquisition process and the relationship with the salesperson. For example, at the buyer's request, the salesperson may make last minute delivery schedule changes that he or she is not otherwise obligated to do. Generally speaking, the stronger the psychological attributes, the greater the customer satisfaction.

How do the three different types of purchasing decisions (straight rebuy, modified rebuy, new task) influence the time and effort a buyer might allocate to the different steps of the purchase decision process?

Generally speaking, as the type of purchasing decision moves from a straight rebuy to a modified rebuy to a new task, the amount of time and effort spent in the purchase decision process increases. In straight rebuy situations, it is not uncommon for the purchase decision to immediately follow the recognition of the need. For example, a taxi driver low on fuel will stop at a gas station with little consideration given to the different brands or types (e.g., octane rating) of fuels available. A buyer enters into a modified rebuy type of purchase decision simply to check the competitiveness of existing suppliers in terms of the product offering and pricing levels. This again adds on to the time and effort spent in the purchase decision process. In new task situations, the person recognizing the need often does not know how to fulfill the need. Consequently, he or she will spend much more time gathering information and evaluating alternatives. For example, businesses buying new phone systems will often spend weeks (or months) trying to determine their telecommunication needs (the first step in the purchase decision process).

How might the following characteristics of business-to-business markets affect the relational selling activities of salespeople: Larger, but fewer, buyers? Derived demand? Higher levels of demand fluctuation?

If the market consists of larger, but fewer, buyers, then each customer (or potential customer) relationship might be extremely important. This means salespeople will need to be more flexible and allocate more resources (i.e., time and money) to develop and maintain the relationship. If the markets are characterized by derived demand, then salespeople selling products need to monitor the markets from which the demand for their product is derived. This will allow salespeople to anticipate demand shifts and then help their customers plan accordingly. If the markets show higher levels of demand fluctuations, then salespeople will need to anticipate such fluctuations and then help their customers plan for these fluctuations by adjusting inventory accordingly (this is similar to the approach toward derived demand). Customers value salespeople who can help them avoid having too much or too little inventory. The ability to anticipate demand fluctuations correctly will help salespeople forge strong relationships.

What are the key differences between transaction-focused traditional selling and trust-based relationship selling?

In transaction-focused traditional selling, salespeople are focused on maximizing sales in the short run and are self-oriented rather than customer-oriented. Little attention is given to uncovering the needs or providing customized solutions. Selling tactics focus on closing the sales and getting order volume. Little to no post-sale follow-up is provided by the salesperson unless it is focused on another transaction. In contrast, trust-based relationship selling strategies focus on initiating, developing, and enhancing long-run mutually beneficial relationships with the customers. Selling methods are customer-oriented, focusing on need discovery and presentation of customized solutions. Post-sale follow-up is considered an important part of the relationship development process.

How do knowledge bases help build trust and relationships?

Knowledge bases help build trust and relationships because they empower the salesperson to use the trust-building variables more effectively. For example, as salespeople gain more product knowledge, they are better able to demonstrate expertise and customer orientation (by more precise matching of solutions to needs) and make a stronger contribution.

Identify and explain each of the individual steps involved in the ADAPT sequence of questioning. Develop two example questions for each step.

Like SPIN, ADAPT is a progressive questioning technique designed to uncover needs that the salesperson can satisfy with his or her market offer. ADAPT is an acronym for the following five stages of strategic questioning and represents what the salesperson should be doing at each stage: • Assessment questions—are designed to elicit factual information about the customer's current situation. "With how many suppliers do you currently work?" and "Do you own or lease your cleaning equipment?" are examples of assessment questions. • Discovery questions—arise from the information gained from the preceding assessment questions and seek to uncover problems or dissatisfactions (that the salesperson can positively address) the buyer is experiencing. "How well are your current suppliers performing?" and "Have you ever had any trouble getting your leased equipment serviced?" are examples of discovery questions. • Activation questions—are designed to motivate the buyer to want to solve the problem or dissatisfaction discussed in the previous stage. These questions ask the buyer to consider the ramifications of the problem. "How do the problems you are currently experiencing with your suppliers affect your production efficiency?" and "Do you ever experience downtime while waiting for your leased equipment to be serviced?" are examples of activation questions. • Projection questions—ask the buyer to describe what life would be like if the problem(s) or dissatisfaction(s) were eliminated. These questions are also designed to motivate the buyer to want to solve the problem. "If your suppliers were always on time and orders were always accurate, how would your production efficiency be enhanced?" and "If downtime were eliminated, how would your productivity be affected?" are examples of projection questions. • Transition questions—are designed to help the salesperson make a smooth transition from needs discovery to the presentation of a solution. "Would you be interested in hearing about how you can eliminate the problems you are currently experiencing with your suppliers?" and "Are you interested in learning how you can lease your equipment and still eliminate downtime?" are examples of transition questions. Students' answers will vary. However, they should address the points mentioned above.

Most salespeople use organized sales dialogues and presentations today. Why?

Most salespeople use organized sales dialogues and presentations because they provide greater flexibility and effective interaction with the prospective customer. This form of interaction allows salespeople to learn about their customers' needs and then customize solutions to those needs. After all, the customer is interested only in hearing about how the salesperson's market offer may solve his or her problem. Using a canned presentation that, for example, covers all the products' features may bore, confuse, or otherwise disinterest the customer.

What approaches can be used to prioritize sales prospects?

One approach is to create an ideal customer profile and then analyze sales prospects by comparing them with this ideal customer profile. A second approach is to identify one or more criteria, evaluate sales prospects against these criteria, and either rank all of the sales prospects based on this evaluation or place the sales prospects into A, B, and C categories, with A sales prospects representing the best sales opportunities.

Distinguish between open-end and closed-end questions and describe how each of these question formats might best be used in the trust-based selling process.

Open-end questions encourage free response rather than limiting the buyer's response to one or two words. Closed-end questions limit the buyer's response to one or two words. These questions usually ask the buyer to respond with either yes or no. Generally, salespeople use open-end questions early on in the sales call, especially during the needs discovery phase. These questions encourage the buyer to respond freely and allow the salesperson to better understand the unique situation of the buyer. Salespeople use closed-end questions throughout the sales call. Generally, salespeople use closed-end questions to clarify or confirm ideas/information discussed during the sales call. Salespeople also use closed-end questions when seeking the buyer's commitment (i.e. asking for the order). Students' answers will vary. However, they should address the points mentioned above.

Why is prospecting an important activity for salespeople?

Prospecting is an important activity for salespeople because it is the primary means of generating revenue and guarding against the effects of customer turnover. While it's possible to increase revenue by raising prices, the most effective way to increase revenue and grow market share is to acquire new customers. Next, given that customer turnover is inevitable, prospecting allows salespeople to keep new customers who replace those that are lost. While it is possible and even desirable to grow business with existing customers, it is unlikely that such growth could ever be great enough to make up for business lost to turnover.

What is meant by proxemics? Why is it important for salespeople to understand the concept of proxemics?

Proxemics refers to the personal distance that individuals prefer to keep between themselves and other individuals and is an important element of nonverbal communication. The physical distance between the salesperson and the buyer is a form of nonverbal communication and affects the comfort level of the buyer. A buyer who feels a salesperson is standing too close may be uncomfortable and feel that the salesperson is pushy or aggressive. In contrast, a buyer who feels the salesperson is standing too far away may perceive the salesperson as uninterested and not customer-oriented. Salespeople should understand the concept of proxemics so that they can effectively communicate with their customers.

What are the basic criteria used to qualify leads as sales prospects?

Qualified sales prospects are leads who: • Have a need for the product or service • Have the budget or financial resources to purchase the product or service • Have the authority to make the purchase decision

Identify and explain each of the individual steps involved in the SPIN sequence of questioning. Develop two example questions for each.

SPIN is a progressive questioning technique that is designed to uncover needs (of the buyer) that the salesperson can satisfy with his or her market offer. SPIN is an acronym for the following four types of questions making up the multiple question sequence: • Situation questions—are fact-finding questions that ask the buyer to provide information about his or her background and/or existing situation. "Who are your current suppliers?" and "What methods of advertising do you use currently?" are examples of situation questions. • Problem questions—probe the buyer for specific difficulties or areas of dissatisfaction. "Have you ever had any problems with your current suppliers?" and "What problems have you experienced with your current methods of advertising?" are examples of problem questions. • Implication questions—ask the buyer to consider the ramifications of the problems uncovered by the problem questions. These questions help motivate the buyer to want to solve the problems. "How is your business affected when your suppliers are late with deliveries?" and "What is the effect of ineffective advertising on your profitability?" are examples of implication questions. • Need-payoff questions—focus the buyer's attention on the benefits of solving the problem. As with implication questions, these questions help motivate the buyer to want to solve the problem. "How would your business be affected if your suppliers were never late with deliveries?" and "What impact would effective advertising have on your bottom line area?" are examples of need-payoff questions. Students' answers will vary. However, they should address the points mentioned above.

Discuss how salespeople use effective questioning to maintain subtle control over the buyer-seller communication dialogue.

Salespeople can maintain subtle control over the buyer-seller communication dialogue by using effective questioning to guide the course and depth of the conversation. Salespeople can use questions to shift the conversation to an appropriate topic, control the depth of conversation on the topic, and redirect the conversation when the topic's usefulness diminishes. Salespeople can also use questions to gain, regain, and hold the buyer's attention. Finally, salespeople can use questions to control the progression of the sales call, moving the customer from the introduction stage all the way to the commitment stage. Students' answers will vary. However, students should address the points mentioned above.

How can salespeople use electronic networking as a prospect method?

Salespeople can use electronic or social networking to enhance prospecting in a variety of ways. First, social networking sites (e.g., LinkedIn and Plaxo) can help salespeople identify prospects, either directly or through referrals. Second, salespeople can use social networking to learn about the prospect and the prospect's organization, either from the prospect's social networking page or from other members of the social network who are familiar with the prospect. Students' answers will vary. However, students should address the points mentioned above.

How do salespeople contribute to our society? Are there negative aspects of personal selling from a societal perspective?

Salespeople contribute to society's goal of economic growth in two basic ways. They stimulate economic transactions and further the diffusion of innovation—the process whereby new products, services, and ideas are distributed to the members of society. In a fluctuating economy, salespeople make invaluable contributions by assisting during recovery cycles and by helping to sustain periods of relative prosperity. Consumers who are likely to be early adopters of an innovation often rely on salespeople as a primary source of information. Consumers often exhibit strong resistance to change, but change is necessary in the long run for the continued progress and/or survival of the society. By encouraging the adoption of innovative products and services, salespeople make a positive contribution to the society. The negative aspects of personal selling can become apparent when salespeople allow themselves to exhibit unethical conduct. If salespeople mislead a consumer regarding a product or service for their own or their company's benefit, then society is negatively impacted. Society's perception of personal selling as a professional and ethical occupation is adversely affected, and salespeople's credibility as accurate sources of new information is damaged.

What are the primary contributions made by salespeople to their employers?

Salespeople make three important contributions to their firms. First, they are the direct producers of revenue in most business firms. Second, they play an important role in market research and in providing feedback to their firms. For instance, salespeople can provide information about customer requested additions to the product line. One further contribution that salespeople make to their firm is that they serve as a pool of candidates for promotion into management positions. The sales job is often considered an entry level position providing the right foundation for future management assignments.

How might salespeople use their knowledge of the multiattribute evaluation model to plan and deliver their sales presentations to a buyer?

Salespeople may use their knowledge of the multiattribute evaluation model in several ways to help plan and deliver their sales presentations to a buyer. For example, salespeople may adjust their presentation so that they highlight the important attributes and reduce the time spent on less important attributes. Other ways in which salespeople may use this information include the following: • Modifying the product offering being proposed • Altering the buyer's beliefs about the proposed offering • Altering the buyer's beliefs about the competitor's offering • Altering the importance weights • Calling attention to neglected attributes

Explain the superiority of using verbal communication skills to create mental pictures compared to simply using words in sales dialogue with buyers.

Salespeople need to communicate effectively and efficiently given the relatively short amount of time they spend with buyers. When words are used to create mental pictures in the minds of buyers during the sales dialogue, the intended message is more efficiently conveyed and understanding is enhanced. Studies in cognitive psychology have long supported the contention that pictures are more memorable than words. To increase the impact of a conversation, salespeople should incorporate (where appropriate) relevant visual aids that support the idea they are attempting to convey. Students' answers will vary. However, they should address the points mentioned above.

How would you rank the five trust builders in order of importance?

Students' answers will vary, but should include all the five components (expertise, dependability, customer-orientation, candor, and compatibility).

Do you think certain knowledge bases are more important than others? Why?

Students' answers will vary, but they should include an appropriate rationale based on the chapter content. The knowledge bases that are viewed as more important may vary depending upon the buyer-seller relationship and the type of selling situation.

What is the essence of trust for a salesperson?

Students' answers will vary. The answers should include some description of the buyer relying on the salesperson's words or actions in situations where such reliance involves risk to the buyer.

How important is teamwork between the customer and the sales organization in practicing consultative selling? How does teamwork within the sales organization factor into consultative selling?

Teamwork between the customer and sales organization is essential if consultative selling is to be successful. This is especially true when the salesperson is assuming the role of a strategic orchestrator and a long-term ally. Teamwork within the sales organization is also essential given that internal resources must be directed toward helping the organization's customers achieve their strategic goals.

Explain the concept of communication styles and how a salesperson might flex his or her own style to better match the style of the buyer. How would the salesperson's behaviors and activities differ as he or she advances through the different stages of the selling process? Illustrate your answer with examples.

The concept of communication styles suggests that individuals possess different psychological predispositions to communication. The text covers four categories that individuals can be sorted into based on two dimensions—assertiveness and responsiveness. The resulting four communication styles are amiables—low on assertiveness and high on responsiveness; expressives—high on both responsiveness and assertiveness; drivers—low on responsiveness and high on assertiveness; and analyticals—low on both responsiveness and assertiveness. The salesperson needs to flex his or her communication style based on the communication style of the buyer. This does not mean mirroring the buyer, necessarily; rather, it means adopting a style that enhances communication and moves the sales process in the desired direction. Students' examples will vary.

What factors will influence the continued evolution of personal selling?

The continued evolution of personal selling as a profession is necessary in response to the ever-growing complexity of the dynamic environment. Factors that will influence this evolution include the increased sophistication of buyers, economic uncertainties, and new computer technologies. Other issues include the following: intensified competition; more emphasis on improving sales productivity; fragmentation of traditional customer bases; customers dictating quality standards and other procedures to be met by vendors; and greater demand for in-depth, specialized knowledge as an input to purchase decisions.

Discuss the final step of the sales process (enhancing customer relationships) as related to the continuing evolution of personal selling.

The final step of the sales process is enhancing customer relationships, and it is an important part of the continuing evolution of personal selling. As personal selling evolves from a transaction-oriented process into a relationship management process, the ability of the salesperson to enhance relationships will become increasingly important.

Explain the key elements of written proposals.

The key elements of written proposals are the executive summary, customer needs and proposed solution, seller profile, pricing and sales agreement, and implementation and timetable. The executive summary, usually limited to two typewritten pages, explains the customer's problems, the nature of the proposed solution, and the benefits. It also builds a desire to read the full proposal. The customer needs and proposed solution section clearly states the customer's problems and needs and then presents the solution with evidence on how it will address them uniquely. The seller profile offers an overview of the supplier company, emphasizing its capabilities and successes in providing services to past customers. The pricing and sales agreement officially "asks for the order" by providing pricing information and delivery options. Finally, the implementation and timetable section explains the steps necessary for the buyer to complete placing an order with the timetable detailing a schedule of key implementation events.

What are the major components of a strategic prospecting plan?

The major components of a strategic prospecting plan include the following: • Goal stating the number of qualified prospects to be generated • Allocation of time to conduct prospecting activities • Tracking system to track the leads and prospects through the sales pipeline and the relative costs associated with acquiring the leads • A system for analyzing and evaluating the results of prospecting activities • A program to review and stay up-to-date on product knowledge and competitor information

Why is the planning template for sales dialogues and presentations an important tool for today's salesperson?

The primary advantage of the planning template for sales dialogues and presentations is that it ensures that salespeople are organized and cover all the pertinent content areas when they develop or prepare a sales presentation. In addition, a planning template helps the salesperson with the process of uncovering the needs and identifying a customized solution. Finally, salespeople can use the information collected while developing the planning template to learn more about their territories, their customers, and their performance.

What are the disadvantages of cold canvassing prospecting methods?

The primary disadvantages of cold canvassing prospecting are that it is inefficient and can have a detrimental impact on the image of the salesperson. Cold canvassing is inefficient because of the low success rate. Salespeople engaged in cold canvassing generally know little to nothing about the prospects; therefore, they do not qualify as good salespeople. This process might result in salespeople spending a great deal of time calling on prospects who do not meet the qualifying criteria. Cold canvassing can be detrimental to the image of a salesperson because cold calls are unannounced. The potential prospects may feel as though the salesperson is inconsiderate because he or she did not call to make an appointment. In addition, the potential prospects may perceive the salesperson to be unorganized because the salesperson had little to no information about the buyer and did not make an appointment.

What are the objectives of strategic prospecting?

The primary objective of strategic prospecting is to identify, qualify, and prioritize sales opportunities. The basic objective of the strategic prospecting process is to provide salespeople with a list of prioritized sales prospects. Strategic prospecting should involve the use of one or more criteria that can help salespeople improve their prospecting effectiveness continuously. The focal point of a strategic prospecting plan should be the goal stating the number of qualified prospects to be generated.

How might a salesperson work with and assist a business buyer in each step of the buying process: Recognition of the problem or need? Determination of the characteristics of the item and the quantity needed? Description of the characteristics of the item and the quantity needed. Search for and qualification of potential sources? Acquisition and analysis of proposals? Evaluation of proposals and selection of suppliers? Selection of an order routine? Performance feedback and evaluation?

The role of many salespeople is to help potential buyers recognize their needs. A salesperson can accomplish this task by asking questions that help in identifying these needs (covered later in the text). They should closely listen to the buyer's answers and control the flow of the conversation. After helping a buyer recognize the need, the salesperson may be in a position to help him or her determine the characteristics of the item and the quantity needed. For a salesperson to be effective in this role, the buyer must perceive the salesperson as possessing expertise in the related area. A salesperson with related expertise may help the buyer develop detailed specifications for the solution and also help the buyer determine the quantity of the product. As mentioned above, this would require the buyer to have a great deal of trust in the salesperson's expertise. Salespeople often serve as an important source of information for buyers; salespeople help buyers in their search for and qualification of potential sources for the proposed solution. Of course, the objective of the salesperson is to make sure his or her organization is considered one of the sources that can provide an appropriate solution. Salespeople help in the acquisition and analysis of a proposal. To do this, they need to understand the evaluation criteria so they can present their proposal in the best light possible. Better yet, salespeople who work closely with the buyer through the earlier stages may have the opportunity to help shape the evaluation criteria. Then, they must make sure that their proposed solution meets or exceeds those criteria. A trusted salesperson may be able to influence the evaluation of the proposals and selection of the suppliers. However, a salesperson in such a trusted position has an ethical obligation to ensure that the best interests of the buyers supersede his or her own interests. Once identified as the selected solution provider, the salesperson may work with a buyer to determine the best order routine. The salesperson must ensure that both the buyer and the selling organization understand and are able to meet their respective obligations associated with the delivery process. This performance feedback and evaluation stage requires salespeople to follow up with their customers (after purchase) to ensure the buyer's expectations have been met or exceeded. If not, the salesperson needs to address the unmet expectations immediately. This stage is crucial for the long-term success of the relationship.

If trust means different things to different buyers, how is a salesperson to determine what trust means for each buyer?

The salesperson must determine what trust means for each buyer by asking questions, listening to the responses, and making general observations. This is the only way the salesperson will be able to learn what trust attributes are critical to relationship-building for a specific buyer.

What types of information should salespeople gather to prepare for sales dialogue?

The salesperson should collect information about the prospect and the prospect's organization. Regarding the prospect, the salesperson should, at least, know the prospect's name and title (the salesperson should pronounce them correctly). As the sales process progresses, the salesperson can learn additional information about the prospect (e.g., hobbies, interests, and so forth), which includes the prospect's risk tolerance. The salesperson should also gather information about the prospect's organization, its type, the industry and marketing channels in which it operates, and its competitors and customers. Students' answers will vary. However, students should address the points mentioned above.

What are the three areas of unethical behavior? Discuss each.

The three areas of unethical behavior are deceptive practices, illegal activities, and non-customer-oriented behavior. Deceptive practices refer to any attempt by the salesperson to mislead or otherwise deceive the buyer. For example, a salesperson may exaggerate a product's benefits knowing that the buyer's decision will be based on (or that the buyer is relying on) those exaggerations. Illegal activities refer to a variety of activities in which the salesperson knowingly breaks the law. A salesperson padding an expense reimbursement report is an example of breaking the law. Non-customer-oriented behaviors are practiced by salespeople and companies that concentrate on short-term goals. They allow the practice of outmoded sales tactics.

Explain why talking with buyers rather than talking at buyers is critical to success in selling.

Today, success in selling a product requires the establishment of mutually beneficial relationships with the customers. To build such relationships, the salesperson has to identify the needs of the customer. This can be done only through interactive discussion (i.e., talking with the buyer and sharing information). In addition, talking with buyers rather than talking at buyers helps build trust, which is critical for building successful relationships. Students' answers will vary. However, students should address the points mentioned above.

Most businesses would have a difficult time surviving without the benefits of the salespeople who call on them. Do you agree?

Yes, because customers benefit from salespeople in many ways. Buyers expect salespeople to contribute to the success of the buyer's firm. Salespeople do so by providing valuable information to buyers and using their problem solving skills to benefit the buyer's firm.

What are characteristics of a well-written customer value proposition?

A good customer value proposition will be a simple statement that clearly directs upcoming sales dialogues by explaining why a customer would be better off choosing the product of the salesperson and his or her firm. It should explain only the key benefits for the buyer and avoid listing all of the benefits. At the same time, it should be as specific as possible on tangible outcomes and relate any product or service dimensions that would add value to the buyer's operations. Finally, the customer value proposition should promise only what can be consistently delivered, keeping in mind that appropriate guarantees can be added as the sales process moves along.

How are need satisfaction and problem-solving selling related? How do they differ?

Need satisfaction and problem-solving selling are related in that each seeks to uncover and satisfy the needs of the buyer. Problem-solving selling differs from need satisfaction selling in that it seeks to identify a set of alternative solutions, which may include a competitor's product, to satisfy the buyer's needs.

Explain what is meant by nonverbal clusters and why they are important to salespeople.

Nonverbal communication is often broken down into several individual components. Nonverbal clusters are groups of related expressions, gestures, and movements. A single isolated gesture or movement cannot be taken as a reliable indication of the true intent or meaning of a message. Rather, sensing and interpreting groups or clusters of nonverbal cues provides a more reliable indicator of the message and intent. It is important for salespeople to be able to identify and read nonverbal clusters so that they are better able to capture what the buyer is conveying through the set of nonverbal expressions, gestures or movements (i.e. nonverbal clusters).

Explain the difference in the uses of probing, evaluative, tactical, and reactive questions in trust-based selling.

Probing questions are used to dig below the surface and uncover detailed information. They are especially useful during need discovery and objection handling. Evaluative questions help the salesperson uncover the buyer's feelings and attitudes. These questions may be either open-end or closed-end. Tactical questions help the salesperson control the flow and direction of the conversation. Salespeople use these questions to redirect the focus of the conversation when the present topic is of little value or is non-productive. Salespeople use reactive questions when responding to information provided by the buyer. Typically, salespeople use these questions to get the buyer to elaborate on something he or she just said. Students' answers will vary. However, they should address the points mentioned above.

How might a salesperson go about earning trust?

Students' answers will vary, but they should include a discussion of the basic building blocks of trust, which include expertise, dependability, candor, customer orientation, and compatibility/likability.