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