Personal Selling: Chapters 7, 8, 9, 10, & 11
Comparative cost-benefit analysis
A comparison of the buyer's current situation costs with the value of the seller's proposed solution. Can also be a comparison of the seller's product with the competitor's product
FEBA
A method of describing a product or service where salespeople mention the feature, provide evidence that the feature actually does exist, explain the benefit (why that feature is important to the buyer), and then ask whether the buyer agrees with the value of the feature and benefit
Trial order
A small order placed by a buyer in order to test the product or the vendor. Not to be confused with trial close.
Efficient consumer response (ECR) system
Distribution system that drives inventory to the lowest possible levels, increases the frequency of shipping, and automates ordering and inventory control processes without the problems of stockouts and higher costs
Benefit
How a particular feature will help a particular buyer
Turnover (TO)
How quickly a product sells, given a level of effort to sell it
SPIN
Logical sequence of questions in which a prospect's needs are identified. The sequence is situation questions, problem questions, implication questions, and need payoff questions.
Sales portals
Online databases that include in one place many sources of information that the salesperson might need. Includes items such as account data, competitor intelligence, and news about the industry, the company, and the economy.
Quick-response (QR) system
System of minimizing order quantities to the lowest level possible while increasing the speed of delivery to drive inventory turnover; accomplished by prepackaging certain combinations of products
Credibility
The characteristic of being perceived by the buyer as believable and reliable
Minimum call objectives
The minimum that a salesperson hopes to accomplish in an upcoming sales call
Opportunity cost
The return a buyer would have earned from a different use of the same investment capital
Customer value proposition (CVP)
The way in which a salesperson's product or service will meet the prospect's needs and how that is different from the offerings of competitors, especially the next-best-alternative
Forestall
To resolve objections before buyers have a chance to raise them
Credibility statement
a description of the seller and his or her company, offered to buyers to show that the seller can meet their needs
Electronic whiteboard
a digital version of an easel
Automatic replenishment (AR)
a form of just-in-time inventory management where the vendor manages the customer's inventory, and automatically ships and stocks products at the customer's location based on mutually agreed-upon standards
Opening
a method designed to get the prospect's attention and interest quickly and make a smooth transition into the next part of the presentation. Examples include introduction, product, question, referral, and so on
Sales asset management system
a system used to archive, catalog, and retrieve digital media and text; used by salespeople to create presentations
Selling center
a team that consists of all people in the selling organization who participate in a selling opportunity
Direct request method
act of attaining commitment by simply asking for it in a straightforward statement
Impression management
activities in which salespeople engage to affect and manage the buyer's impression of them
Office scanning
activity in which the salesperson looks around the prospect's environment for relevant topics to talk about
Follow-up
activity that a salesperson performs after commitment is achieved
Primary call objective
actual goal the salesperson hopes to achieve in an upcoming sales call
Referral opening
approach in which the name of a satisfied customer or friend of the prospect is used at the beginning of a sales call
Product opening
approach in which the salesperson actually demonstrates the product features and benefits as soon as he or she walks up to the prospect
Compliment opening
approach in which the salesperson begins the sales call by complimenting the buyer in some fashion
Benefit opening
approach in which the salesperson focuses on the prospect's needs by stating a benefit of the product or service
Introduction opening
approach method in which salespeople simply state their names and the names of their companies
Balance sheet method
attempts to obtain commitment by asking the buyer to think of the pros and cons of the various alternatives; often referred to as the Ben Franklin method
Barriers
buyer's subordinates who plan and schedule interviews for their superiors; also called screens
Rapport
close, harmonious relationship founded on mutual trust
Portfolio
collection of visual aids that can be used to enhance communication during a sales call
Closing
common term for obtaining commitment, which usually refers only to asking for the buyer's business
Electronic data interchange (EDI)
computer-to-computer linkages between suppliers and buyers for information sharing about sales, production, shipment, and receipt of products
Objection
concern or question raised by the buyer
Requirements
conditions that must be satisfied before a purchase can take place
Situation questions
general data-gathering questions about background and current facts that are very broad in nature
Secondary call objectives
goals a salesperson hopes to achieve during a sales call that have somewhat less priority than the primary call objective
Halo effect
how one does in one thing changes a person's perceptions about other things one does
Executive summary
in a written proposal, a summary of one page or less that briefly describes the total cost minus total savings, the problem to be solved, and the proposed solution
Influential adversaries
individuals in the buyer's organization who carry great influence and are opposed to the salesperson's product or service
Payback period
length of time it takes for the investment cash outflow to be returned in the form of cash inflows or savings
Inventory turnover
measure of how efficiently a retailer manages inventory; calculated by dividing net sales by inventory
Videoconferencing
meetings in which people are not physically present in one location but are connected via voice and video
Direct denial method
method of answering objections in which the salesperson makes a relatively strong statement indicating the error the prospect has made
Multiple-sense appeals
method of attracting as many of the senses as possible (hearing, sight, touch, taste, and smell)
Referral method
method of helpfully responding to objections in which the salesperson shows how others held similar views before trying the product or service. Also called the feel-felt-found method
Third-party-testimony method
method of responding to an objection during a sales presentation that uses a testimonial letter from a third party to corroborate a salesperson's assertions
Probing method
method to obtain commitment in which the salesperson initially uses the direct request method and, if unsuccessful, uses a series of probing questions designed to discover the reason for the hesitation
LAARC method
method to respond to objections: listen, acknowledge, assess (the validity of the objection), respond, confirm (that the objection has been answered)
Compensation method
method used to respond helpfully to objections by agreeing that the objection is valid, but then proceeding to show any compensating advantages
Indirect denial method
method used to respond to objections in which the salesperson denies the objection but attempts to soften the response by first agreeing with the prospect that the objection is an important one
Return on investment (ROI)
net profits (or savings) expected from a given investment, expressed as a percentage of the investment
Buying signal's
nonverbal cues given by the buyer that indicate the buyer may be ready to commit; also called closing cues
Benefit summary method
obtaining commitment by simply reminding the prospect of the agreed-on benefits of the proposal
Balanced presentation
occurs when the salesperson shows all sides of the situation - that is, is totally honest
Executive briefing center
presentation rooms set aside to highlight a company's products and capabilities
Cash discount
price discount given for early payment in cash
Value analysis
problem-solving approach for reducing the cost of a product while providing the same level of performance
Revisit method
process of responding to objections by turning the objection into a reason for acting now. Also called the boomerang method
Cumulative discount
quantity discount for purchases over a period of time; the buyer is allowed to add up all the purchases to determine the total quantity and the total quantity discount
Problem questions
questions about specific difficulties, problems, or dissatisfactions that the prospect has
Open questions
questions for which there are no simple yes-no answers
Need payoff questions
questions that ask about the usefulness of solving the problem
Closed questions
questions that can be answered with a word or short phrase
Implication questions
questions that logically follow one or more problem questions (in SPIN); and are designed to help the prospect recognize the true ramifications of the problem
Trial close
questions the salesperson asks to take the pulse of the situation throughout a presentation
Advantages
reasons why a feature would be important to someone
Acknowledge method
responding to an objection by letting the buyer talk, acknowledging that you heard the concern, and then moving on to another topic without trying to resolve the concern; also called the pass-up method
Major sale
sale that involves a long selling cycle, a large customer commitment, an ongoing relationship, and large risks for the buyer if a bad decision is made
Assertive
sales manner that stresses responding to customer needs while being self-confident and positive
Closing cues
same as buying signals
Quantifying the solution
showing the prospect that the cost of the proposal is offset by added value
Simple cost-benefit analysis
simple listing of the costs and savings that a buyer can expect from an investment
Customer benefit proposition
statement showing how a product addresses the buyer's specific needs
Digital collateral management system
system that archives, catalogs, and retrieves digital media and text. Used by salespeople to create presentations
Small talk
talk about current news, hobbies, and the like that usually breaks the ice for the actual presentation
Feature dumping
talking about lots of features of little interest to the customer and wasting the buyer's time
Selective perception
the act of hearing what we want to hear, not necessarily what the other person is saing
Friendly silent questioning stare (FSQS)
the act of silently waiting to encourage buyers to elaborate or explain more fully what their concern is
Buyer's remorse
the insecurity a buyer feels about whether the choice was a wise one; also called post-purchase dissonance
Net present value (NPV)
the investment minus the net value today of future cash inflows (discounted back to their present value today at the firm's cost of capital)
Optimistic call objective
the most optimistic outcome the salesperson thinks could occur in a given sales call
Profit margin
the net profit the reseller makes, expressed as a percentage of sales
Focus of power
the person in the organization who can approve, prevent, or influence action
focus of dissatisfaction
the person in the organization who is most likely to perceive problems and dissatisfactions; leads to the focus of power
Focus of receptivity
the person in the organization who will listen receptively and provide a seller with valuable information; leads to the focus of dissatisfaction
Four A's
the selling process, consisting of acknowledge, acquire, advise, and assure
Customer value proposition (CVP)
the way in which a salesperson's product or service will meet the prospect's needs and how that is different from the offerings of competitors, especially the next-best-alternative
Superior benefit method
type of compensation method of responding to an objection during a sales presentation that uses a high score on one attribute to compensate for a low score on another attribute
Webcasting
videoconferencing in which the meeting is broadcast over the internet
Analysis paralysis
when a salesperson prefers to spend practically all his or her time analyzing the situation and gathering information instead of making sales calls
FAB
when salespeople describe the features, advantages (why that feature is important), and benefits of their product or service
Handouts
written documents provided to buyers before, during, or after a meeting to help them remember what was said
Feature
(1) quality or characteristic of the product or service (2) putting a product on sale with a special display and featuring the product in advertising
Testimonial
Statement, usually in the form of a letter, written by a satisfied customer about a product or service
Questions opening
Beginning the conversation with a question or stating an interesting fact in the form of a quesiton
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CH 10
Start
CH 11
Start
CH 8
Document camera
Camera similar to a traditional overhead projector in its ability to display transparencies. However, because it is essentially a camera, it is also capable of displaying any three-dimensional object without the use of a transparency; also called a visual presenter
Start
Ch 9
Collateral
Collection of documents that are designed to generate sales, and include such items as brochures, sales flyers and fact sheets, and short success stories
Excuses
Concerns expressed by the buyer that mask the buyer's true objections
Aggressive
Sales style that controls the sales interaction but often does not gain commitment because it ignores the customer's needs and fails to probe for information
Pass-up method
Same as acknowledge method ?
Post-purchase dissonance
Same as buyer's remorse
Feel-felt-found method
Same as referral method ?
Boomerang method
Same as revisit method ?
Pioneer selling
Selling a new and different product, service, or idea. In these situations the salesperson usually has difficulty establishing a need in the buyer's mind.
Submissive
Selling style of salespeople who are often excellent socializers and like to spend a lot of time talking about non business activities. These people are usually reluctant to attempt to obtain commitment
Seeding
Sending customers information that could be useful to the customer, but this does not include sales related information like pricing, brochures, and so on
Request for proposal (RFP)
Statement issued by a potential buyer desiring bids from several potential vendors for a product. RFPs often include specifications for the product, desired payment terms, and other information helpful to the bidder; also called request for bids or request for quotes