Professional Sales Exam 2

buyer resolution theory

A purchase is made only after the prospect has made five buying decisions (1) Why should I buy? (2) What should I buy? (3) Where should I buy? (4) What is a fair price? (5) When should I buy?

questions to ask before a low price approach

Are you selling to low or high involvement buyers? How important is quality? How important is service?

Product Information Categories

Product development and quality improvement processes Performance data and specifications Maintenance and service contracts Price and delivery

another way to quantify the solution is to calculate...

ROI

sources of prospects

Referrals Friends and family Directories Trade publications Trade shows Direct-response marketing Website Databases Cold calling Networking Educational seminars Non-sales prospecting

quantifying the solution

The process of determining whether or not the proposal adds value

T/F: In most selling situations, prospecting begins with a study of the market for your product or service.

True

T/F: The act of creating a product concept in the customer's mind is called positioning.

True

During the solution sales process the salesperson:

Uncovers and clarifies a customer's problem Works with the customer to create a vision of how things could be better Develops a plan for implementing the vision

A good sales letter should follow standard rules:

Visual format of a business letter Proper use of white space Proper punctuation Proper grammar and spelling Minimal use of personal pronouns

Salespeople should most likely think of needs in terms of: A) each specific customer B) the competition C) the product D) the typical customer E) the industry as a whole

a

Selling a solution versus selling a specific product requires...

a greater effort to define and diagnose the customer problem.

solution

a mutually shared answer to a recognized customer problem

product strategy

a plan that emphasizes becoming a product expert, selling specific benefits, and configuring value added solutions

customer strategy

a plan that results in understanding the customers perceptions and maximizing satisfactions

referral

a recommendation to a salesperson from a customer or business associate

Todays customers are a new generation of ....

aggressive internet empowered customers

prospect

an individual or business who meets the qualification criteria established by you or your company

customized solution

appeals to the customers desire for choices that are tailored to his/her needs

Successful sales presentations convert product features into: A) selling appeals B) buyer benefits C) product applications D) closed sales E) research statistics

b

product configuration

bring together many parts of the company's product mix to develop a custom fitted solution

A written proposal typically includes 5 parts

budget and overview objective strategy schedule rationale

patronage buying motive

buy products from one particular business

A balanced funnel involves: A) entering prospects from an even balance of industries B) aggressively eliminating non-productive leads C) having prospects at different stages of the sales cycle D) combining technical sales with product sales E) entering the "Ferris wheel" simultaneously

c

Which type of price discount would most likely be offered by a ski lodge during the summer months? A) promotional allowance B) functional discount C) seasonal discount D) quality discount E) associate allowance

c

As a salesperson, it's important to know your __

competition

rational buying motive

conscious, logical reason to make a purchase

Group Influences that affect buying decisions

customer, roles, reference groups, social class, culture and subculture

How is this handbag being positioned and differentiated from other handbags similar in manufacturing and look? A) The handbag is being positioned on price. B) The handbag is being positioned on design. C) The handbag is being positioned on versatility. D) The handbag is being positioned on exclusivity. E) The handbag is being positioned on convenience.

d

Joe Girard's "Ferris wheel" concept assumes which of the following? A) Salespeople will do better prospecting when they think of the process as a roller coaster. B) If the customers are sold the correct product and given good service, a company will not lose customers. C) The optimal ratio of customers to prospects is 66 percent. D) A certain number of customers will be lost every year by most companies. E) Departing customers must be replaced by new customers at an equal rate

d

Throughout the sales presentation, it is usually best to: A) describe the weakness of competing products B) discuss competing products even if you are unfamiliar with them C) refuse to answer any questions about competing products D) avoid shifting attention away from your product to competing products E) be proactive about discussing competing products

d

product features include

data, facts, and characteristics

What should the sales director of RealPlan most likely do before sending salespeople out to call on business buyers for the first time? A) Build long-term strategic alliances by creating systems selling appeals. B) Adjust the sales forecast using the normal sales cycle for customers. C) Ask the salespeople to rehearse the standard customer presentation. D) Make sure the salespeople have talked to businesspeople before. E) Discuss the differences between consumer buyers and business buyers.

e

expected product

everything that represents the customer's minimal expectations

Points to consider when pricing

experience exclusivity target market value

strategic alliance process buyer

focus on careful study of proposed partner

consultative process buyer

focus on needs awareness and helping evaluate solutions

transactional process buyer

focus on purchase stage

types of consumer buying situations

habitual, variety-seeking, complex buying

qualifying prospects

identifying prospects who appear to have a need for your product

Guidelines about discussing the competition

in most cases, don't refer to the competition during the sales presentation never discuss them unless you have all your facts straight never criticize the competition be prepared to add value

todays customers employ 3 "power tools"

instant information choice real time price comparisons

positioning

involves those decisions and activities intended to create and maintain a certain concept of the product in the customer's mind

Consultative buyers

lacks a need awareness welcomes need clarification wants help evaluating possible solutions usually needs a customized product solution

product buying motive

leads a prospect to purchase one product in preference to another

attrition

loss of customers over a period of time

In sales, a solution is more than a specific product, it often provides...

measurable results

quality control

measuring products/services against standards

5 steps in the buying process

needs awareness, evaluation of solutions, resolution of problems, purchase, implementation

Product position options

new and emerging products vs. well-established products position with price position with value-added strategies

types of business buying situations

new task buy, straight rebuy, and modified rebuy

Main purpose of a salesperson is

not to make sales, but to create customers

Maslow's Hierarchy of Needs

physiological, security, social, esteem, self-actualization

__is a top ranked characteristic of salespeople who are able to build trust with customers

product knowledge

value-added product

product that exists when salespeople offer the customers more than they expect

sources of differentiation

quality, price, convenience, economy, service, etc.

types of discounts

quantity, seasonal, promotional, trade or functional, unbundling

Emotional buying motives

reasons to purchase based on feelings, beliefs, and attitudes

potential product

refers to what may remain to be done, that is, what is possible

Dimensions of service quality

tangibles, reliability, responsiveness, assurance, empathy

differentiation

the ability to separate yourself, your product, and/or your company from that of your competitors

generic product

the basic, substantive product you are selling

product development

the original idea for a product/service is tested, modified, and retested before its offered to the customer

value proposition

the set of benefits and values to meet and exceed customers specific needs

bridge statement

transitional phrase that connects a statement of features with a statement of benefits

Transactional Buyers

well aware of their needs conducted their own research good understanding of the product that will meet their needs

product benefits include

whatever provides a customer with a personal advantage or gain