USM MKT 330: Final Exam Kelli King

KAS (knowledge, skills, abilities)

(knowledge, skills, abilities)

Standard Memorized Presentation

- Also known as Canned Presentation - Completely memorized sales talk - Ensures that a salesperson provides complete and accurate information about the firm's product and policies - Limited effectiveness (no opportunity for the salesperson to tailor the presentation to the needs of a specific customer)

How to deal with the price objection

- Anticipate objections and prepare helpful responses - Forestall known concerns - Relax and listen, and do not interrupt - Evaluate if the objection is just an excuse - Always tell the truth

Amiables

- Give importance to close relationships and cooperation. - Make decisions slowly, building a consensus among people involved in the decision. - Avoid risks. - Change their opinions reluctantly. - Salespeople selling to amiables should stress the product's benefits in terms of its effects on the satisfaction of employees. - Example: Paul McCartney

Drivers

- Have a great desire to get ahead in their companies and careers. - Swift and efficient decision makers. - Base their decisions on facts. - Take risks. - Look at several alternatives before making a decision. - To influence drivers, salespeople need to use a direct, businesslike, organized presentation with quick action and follow-up. - Example: Donald Trump

Analyticals

- Like facts, principles, and logic - Suspicious of power and personal relationships - Make decisions slowly in a deliberate and disciplined manner - Strongly motivated to make the right decision - Salespeople need to use solid, tangible evidence when making presentations to analyticals. - Example: Bill Gates

importance of internal partnerships

- Salesperson must represent the customer to the company - Ability to work with groups inside the company can directly affect the sales representative's compensation

Team Selection and Management

- Seller's team size should be equal to the buyer's team size - Sessions should have defined roles - Team leader should manage the actual negotiation session - Establish rules and signals to communicate with one another - Practice to understand respective roles

Expressives

- View power and politics as important factors in their quest for personal rewards and recognition. - Focus on the future by directing their time and effort toward achieving their vision. -Base their decisions on their personal opinions and the opinions of others. - Act quickly, take risks, tend to be impatient, and change their minds easily. - Salespeople need to demonstrate how their products will help an expressive customer achieve personal status and recognition. - Example: Obama

When do buyers raise objections?

- When setting up an initial appointment - During the presentation - When attempting to obtain commitment - After the sale

Items negotiated between buyers and sellers

-Inventory levels the buyer must maintain -Inventory levels the seller must keep on hand to be able to restock the buyer quickly -Details about the design of the product or service -Web page development -How the product will be manufactured -Display allowances for resellers -Advertising allowances and the amount of advertising the seller does -Sales promotion within the channel of distribution -Delivery terms and conditions -Retail and wholesale pricing points for resellers

Planning for the negotiation session

-Prepare emotionally for the stress that will occur Location: -Free from distraction for both teams -Neutral site - Owned by neither party Online negotiations affect the behaviors of the negotiators Time allotment depends on: -Negotiation objectives -Extent to which both sides desire a win-win session

(Gaining) the interview

-Using personal contacts -Using employment postings -Responding to postings -Writing the cover letter

The self management process

1. Set sales goals 2. Design sales strategy and allocate resources 3. Implement time and territory strategy 4. Evaluate performance

A accounts

20 percent of the salesperson's accounts that could buy the most.

B accounts

80 percent of the salesperson's accounts.

Emotional Intelligence

Ability to effectively understand and regulate one's own emotions and to read and respond to the emotions of others

Impersonal Paid Communication Methods:

Advertising/sales promotion

conflict handling behavior modes (COMPROMISING MODE)

Applies to people in the middle, in terms of cooperativeness and assertiveness •Attempts to arrive at a win-win solution

Go-to-market strategies

Approaches used by salespeople to sell their products

Closing

Asking for the buyer's business Should be natural, logical progression of any sales call

geographic salespeople

Assigned a specific geographic territory to sell the company's products and services.

Dealing with Win-Lose Negotiators (BROWBEATING)

Attempt to alter the selling team's enthusiasm and self-respect

CRM software

Automates and integrates the functions of sales, marketing, and service in an organization

Customized Presentation

Based on a detailed analysis of the customer's needs. Uses the communication principles to: - Discover the customer's needs and problems. - Propose the most effective solution for satisfying customer needs. - Lets the salesperson demonstrate empathy.

Responsiveness

Based on how emotional people tend to get in social situations. - Responsive people readily express joy, anger, and sorrow

FOB destination

Buyer takes responsibility for the goods once they reach the buyer's location, the seller pays the freight

The negotiation meeting (AMBUSH NEGOTIATING OR SNEAK ATTACK)

Buyers engaging in a win-lose tactic of negotiating when the other party does not expect it Occur : •Prior to the negotiation meeting •During installation of the new product

variable call patterns

Calling on accounts in an irregular order

Adaptive Selling

Changing sales behavior according to a selling situation. - Illustrated by customized presentation. - Emphasizes the importance of satisfying customer needs.

Dealing with Win-Lose Negotiators (BUDGET LIMITATION TACTIC OR BUDGET BOGEY)

Claims of budget ceilings •A ploy to try to get a lower price •Best defense is to do homework before going into the negotiation session

types of incentive pay

Commission: Incentive pay for an individual sale. Bonus: Incentive pay for overall performance in one or more areas.

Inside salespeople

Communicate with customers by telephone or computer at their employer's location

Field salespeople

Communicate with the customer face-to-face at the customer's location

Excuses

Concerns expressed by the buyer that mask the buyer's true objections

requirements

Conditions to be satisfied before a purchase can take place

Assertiveness

Degree to which people have opinions about issues and publicly make their positions clear to others. - Assertive people speak out, make strong statements, and have a take-charge attitude

commission rate

Determines the amount paid. • Expressed as a percentage of the base or as a dollar amount.

Speaking-listening differential

Difference between the 120-to-160-words-per-minute rate of speech versus the 800-words-per-minute rate of listening

Effective methods of gaining commitment

Direct request Benefit summary balance sheet probing

Zoning

Dividing the territory into zones based on ease of travel and concentration of customers. • Each area is the center of a zone. Works best for: • Compact territories. • Situations in which salespeople do not call regularly on the same accounts.

Communication Breakdown is caused by:

Encoding and decoding problems

Evaluating Performance (performance analysis)

Evaluation of performance relative to performance goals that were set earlier.

buyers remorse

Feeling regret or concern after making a large purchase

open-door policy

General management techniques that allow subordinates to bypass immediate managers and take concerns straight to upper management.

Legal Interview Questions

Have you ever used another name? Where do you live? Can you, after employment, verify your right to work in the United States? Statement of company policy regarding assignment of work of employees who are related.Statement of company policy concerning travel: Can you accept this policy? Have you ever been convicted of a felony? (Such a question must be accompanied by a statement that a conviction will not necessarily disqualify the applicant.)

Personal Selling

Human-driven interaction between and within individuals or organizations

conflict handling behavior modes (Collaborating mode)

Individuals who are both assertive and cooperative •Seek to maximize the satisfaction of both parties •Seek to reach a truly win-win solution •Have the motivation, skill, and determination to: •Really dig into an issue or a problem •Explore all possible solutions

Feedback

Information given to a salesperson indicating how he or she is performing

Decoding

Interpreting the meaning of a received message

commission base

Item from which commission is determined.

key accounts

Large customers who have an assigned salesperson.

sales executive

Leader at the top of the sales force hierarchy.Policy maker.Plays a vital role in determining the company's strategies with respect to: • New products and markets. • Sales forecasts. • Prices. • Competition.

agenda

Listing of what will be discussed and in what sequence

How to obtain commitment

Maintain a positive attitude Let the customer set the pace Be assertive, not aggressive Sell the right item in the right amounts

Company areas that are important to salespeople

Manufacturing, administration, shipping and installation, customer service, marketing, sales

types of sales goals (CONVERSION GOALS)

Measures of a salesperson's efficiency. • Benchmarking: Comparing one's performance with the best in the organization. • Helps one see where he or she is falling short.

multilevel selling

Members, at various levels of the sales organization, calling on their counterparts in the buying organization. • Can take place without a formal multilevel sales team. Another type of sales team is made up of the field rep and the field support rep.

Types of compensation plans (straight salary)

Method in which a salesperson receives a fixed amount of money for work during a specified time. Used when: • Sales require long periods of negotiation. • Team of salespeople is involved and individual results cannot be measured. • Other aspects of the marketing mix are more important than the salesperson's efforts in generating sales.

Activity Quotas

Minimal expectations of activities for each salesperson

Profit quotas or gross margin quotas:

Minimum levels of acceptable profit or gross margin performance. • Motivate the sales force to sell more profitable products or to sell to more profitable customers.

sales quota

Minimum number of sales in units.

revenue quota

Minimum sales revenue necessary for acceptable performance.

Areas of conflict

Minor issues - Who should attend future meetings Major issues - Cost per unit or exclusive purchase agreements

commission plans use a draw which is

Money paid to a salesperson against future commissions.

Guidelines to make concessions effective

Never make concessions unless •All of the buyer's demands and opening position are known •One is given in return and do not feel guilty about receiving a concession

C accounts

Noncustomers or accounts with low potential for sales.

concession

One of the involved part agrees to change a position in some fashion

internal partnerships

Partnering relationships between a salesperson and another member of the same company.

incentive pay

Pay tied to some level of performance

types of compensation plans (straight commission)

Pays a certain amount per sale and includes a base and a rate but not a salary. • Provides more financial incentive for the salesperson to work hard.

Personal Paid Communication Methods:

Personal selling and e-mails

Routing

Planning sales calls in a specific order to minimize travel time. • Types of sales call patterns that can be efficient with effective routing.

Outlined Presentation

Prearranged presentation that includes a: - Standard introduction. - Standard answers to common objections raised by customers. - Standard method for getting the customer to place an order. Effective because it is well organized

Forestall

Prevent by doing something ahead of time

Felt Stress

Psychological distress or anxiety brought about by job demands or constraints encountered in the work environment

Impersonal Unpaid Communication Methods:

Publicity

quota

Quantitative minimum level of acceptable performance for a specific period. Useful for controlling the sales force.

ABC analysis

Ranks accounts by sales potential. • Accounts with the greatest sales potential are prioritized. • Effective for industries requiring regular contact with the same accounts.

conflict handling behavior modes (AVOIDING MODE)

Refers to individuals who do not attempt to fulfill their own needs or the needs of others •Do not strive for a win-win agreement or any agreement

benefit statements

Reflect strong feelings in support of the purchase

salary

Regular payment regardless of performance.

Goals should be

SMART: specific, measurable, attainable, relevant, time-bound

bonus

Salespeople receive a lump-sum payment for a certain level of performance over a specified time.

80 to 20 listening rule

Salespeople should: Listen 80 percent of the time Talk no more than 20 percent of the time

Dealing with Win-Lose Negotiators (NEGOTIATION JUJITSU)

Salesperson steps away from the opponent's attack •Directs the opponent back to the issues being discussed •Goal - To calm the buyer while helping the seller maintain control of her own emotions

routine call patterns

Seeing the same customers regularly

field salespeople

Sell at the customer's location.

inside salespeople

Sell at their own company's location. • Include account managers, field support reps, and customer service reps.

Situational Stress

Short-term anxiety caused by a situational factor

Buyer questions

Signal readiness to buy if the question concerns implementing the purchase and points toward when purchase is implemented

Comparing Buyer and Seller Price Positions

Sm- sellers minimum price Bo- buyers opening price Bt- buyers target price St- sellers target price So-sellers opening price Bm- buyers maximum price

Dealing with Win-Lose Negotiators (NIBBLING)

Small extra, or add-on, the buyer requests after the deal has been closed

time management strategy

Starting early Managing responsiveness Scheduling in advance Using downtime wisely

Traits of Top Salespeople

Strong ego, sense of urgency, ego driven, assertive, willing to take risks, sociable, abstract reasoner, skeptical, creative, empathetic

Importance of Obtaining Commitment

Tells the salesperson what to do next Defines status of the client fail to obtain results longer to obtain sale

Go-to-market strategies include selling through:

The Internet, Field sales representatives, Business partners, Resellers, Manufacturers, Franchises,Telemarketers

(During) the interview

The approach. • Social amenities will begin the interview.

FOB installed

Title and responsibility do not transfer until the equipment is installed and operating properly

Encoding

Translation of thoughts and ideas into words

conflict handling behavior modes (ACCOMMODATING MODE)

Unassertive and highly cooperative -focus of needs and desires of other party

Dealing with Win-Lose Negotiators (EMOTIONAL OUTBURSTS TACTIC)

Used by buyers to make seller feel uncomfortable ,so as give in to their demands

team selling

Used by companies that recognize they can best build partnerships by empowering the account manager to represent the organization. Group of salespeople support a single account. • Every team member brings a different area of expertise or handles different responsibilities.

follow up

What a salesperson does after achieving commitment

(preparing for) the interview-Frequently Asked Interview Questions

What are your long-range and short-range goals and objectives? When and why did you establish these goals, and how are you preparing yourself to achieve them? • What do you consider to be your greatest strengths and weaknesses? • Why did you choose the career for which you are preparing? • How do you think a friend or professor who knows you well would describe you? • Why should I hire you?

illegal interview questions

What is your maiden name? Do you own or rent your home? Where were you born? Where were your parents born? With whom do you reside?Are you married?Do you plan a family? Have you ever been arrested?

Personal UnPaid Communication Methods:

Word of Mouth

Missionary salespeople

Work for a manufacturer and promote the manufacturer's products to other firms

Dealing with Win-Lose Negotiators (GOOD GUY-BAD GUY ROUTINE)

Works on the hurt and rescue principle •Bad guy - Negotiator makes all sorts of outlandish statements and requests •Good guy - Offers a win-win solution by presenting a lower demand •Used in buyer-seller negotiations in industrial situations •Best response is to say no •Underscores the importance of getting signatures on contracts and agreements as soon as possible

Salespeople can combine zoning with routing using

a circular approach within a zone

When to obtain commitment

after you have created value for the client

conflict handling behavior modes (COMPETING MODE)

assertive and uncooperative -pursuing own goals objectives at the expense of the other party

nature of negotiation

bargaining process through which buyers and sellers resolve areas of conflict and arrive at agreements

(during the interview)-presentation

carrying portfolios

types of routing plans

circular routing, leapfrog routing, straight-line routing, cloverleaf routing

sales call allocation grid

classifies accounts on the basis of the company's competitive position with an account, along with the account's sales potential • Helps determine which accounts should receive more resources. • Classification is determined by the salesperson's evaluation of the account on the dimensions of account opportunity and strength of position. • Effective tool for analyzing current customers.

regular sales calls are ............

constrained not open to negotiating

Emphasis on getting the sale no matter what:

damages trust insults the buyers intelligent raises the possibility of losing commitment

nonverbal cues

important indicators of the customer's state of mind and are evident through facial expressions and actions

buying signals

indications that the buyer is ready to buy

how negotiations differ from regular sales calls

more intensive planning large number of people from the selling firm

win-win negotiation

negotiator attempts to secure an agreement that satisfies both parties

trial closes

questions regarding the prospect's readiness to buy

assertive

salespeople are self confident and positive

aggressive

salespeople control the sales interaction but fail to gain commitment

Pioneer Selling

selling a new and different product, service, or idea

Win-lose negotiating

the negotiator attempts to win all the important concessions and thus triumph over the opponent (resembles almost every competitive sport)

Evaluating Performance (postcall analysis)

• After every call, salespeople write down what occurred and what needs to be done. • Information can be filled into a printed form or entered into a territory management program • Information can be used when preparing for the next call. • Should include reflecting on whether initial sales call objectives were reached.

types of sales goals (ACTIVITY GOALS)

• Behavioral objectives. • Reflect the efforts of the salesperson. • Intermediate goals. • Should be set after performance and conversion goals are set. • Determined by the desired level of performance at a certain rate of conversion.

during the interview(gaining commitment)

• Being sure to learn when to expect to hear from the company, confirming that deadline, and writing it down. • Asking for commitment and confirming the information signal your professionalism and your organizational and selling skills.

disguised interview

• Candidate is unaware that the interviewer is evaluating the candidate • Common at college placement offices.

panel interview

• Candidates will encounter multiple interviewers. • Candidates need to keep all interviewers involved while answering questions.

stress interview

• Designed to place the candidate under severe stress to see how the candidate reacts. • Criticized as being unfair because the type of stress one experiences on a job interview often differs from the type of stress one would face on the job.

Sales executive's job is to:

• Determine ethical corporate policy. • Support positive behaviors. • Ensure that other policies support the ethics of the organization.

Sales executives should enhance the culture of an organization by:

• Developing formal policies. • Facilitating training courses in ethics. • Setting up ethics review boards and hiring ethics officers. • Encouraging an open-door policy.

conventional resumes

• Form of life history, organized by type of experience. • The three categories of experience used are education, work, and activities/hobbies.

conversion ratio

• Important measure of effectiveness. • Calculated by account type. • Pinpoints effective strategies and areas that need improvement. • Can be calculated for each step of the sales cycle

group interview

• Include several candidates and several interviewers. • May take place in a conference room or around a dinner table.

Evaluating Performance (productivity analysis)

• Involves identifying strategies that work for the salesperson. • Conversion ratio: Number of sales per calls.

types of compensation plans (combination plans)

• Offer the greatest flexibility for motivating and controlling the activities of salespeople.• Use bonuses.

Needs Identification

• Preparing questions that will help you learn whether the company's offer will meet your needs. • Taking notes during the interview so you can evaluate whether your needs will be met. • Trying to determine early whether your interviewer is a sales manager or a personnel manager. • Asking about the type of compensation plan in the first meeting.

types of sales goals (PERFORMANCE GOALS)

• Related to outcomes. • Should be set first. • Example: Personal development goals.

functional resume

• Reverse the content and titles of the conventional résumé, organizing by what the candidate can do or has learned rather than by types of experience. • Highlights more forcefully what the candidate can do.

Evaluating Performance (activity analysis)

• Salespeople set activity goals when planning their time in order to evaluate their own performance. • Helps salespeople manage their efficiency and reduce wasted time.

compensation system

• Satisfy the needs of both the salespeople and the company. • Be uniform within the company and in line with what competitors' salespeople receive.

internal partnerships (role of sales)

• Selling a company, its products, and its services to customers. • Selling customers' needs to the companies and providing them with solutions for those needs.

Account salespeople (key accounts, NAMs, SAMs)

• Some develop new accounts while others maintain existing accounts. • Customers may be classified based on their size.

concessions should:

•Concessions should gradually decrease in size •Do not be afraid to say no •All concessions offered are tentative until the final agreement is reached and signed •Be confident and secure position and do not give concessions carelessly •Do not accept the buyer's first attempt at a concession •Help the buyer to see the value of any concessions agreed to negotiate without preconceived notions •When a mistake is made, tell the buyer and begin negotiating that issue again •Check out the offer to see how it compares to the target position before agreeing to it •Remain noncommittal when customer asks for a bottom line price •Know when to stop and use silence effectively •Plan the session well

The negotiation meeting (PRELIMINARIES)

•Conversation to break the ice •Ensure a comfortable environment •Establish a win-win environment •Prepare an agenda

The negotiation meeting (GENERAL GUIDELINES)

•Listen carefully •Keep track of issues discussed or resolved •Consider cultural differences