MAR 3391 Exam 1 PART 1
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91 terms
Terms | Definitions |
|---|---|
 Personal selling | person-to-person business activity in which a salesperson uncovers and satisfies the needs of a buyer to the mutual, long-term benefit of both parties |
| Customer-centric | making the customer the center of everything the salesperson does |
| 24/7 service | a selling firm is available for them 24 hours a day, 7 days a week |
| Value | the total benefit that the seller's products and services provide to the buyer; the seller's goal is to add this |
| Customer value proposition | the collection of buyer-specific benefits; the "nucleus" of the salesperson's life |
| Go-to-market strategies | various methods firms have to approach customers; include selling through the Internet, field sales representatives, business partners, resellers, manufacturer agents, franchises, telemarketers, and others |
| Customer lifetime value (CLV) | estimated value of the customer over the lifetime of the relationship |
| Sales-force intensive organizations | organizations whose go-to-market strategies rely heavily on salespeople |
| Multichannel strategy | firms using several strategies at the same time |
| Integrated marketing communications | communication programs that coordinate the use of various vehicles to maximize the total impact of the programs on customers |
| Buyer's profit/value | benefits received - (selling price + time and effort to purchase) |
| Six sigma selling programs | designed to reduce errors introduced by the selling system to practically zero |
| Customer relationship management (CRM) | information is transmitted electronically to the company, its salespeople, and its customers and is contained in this system |
| Distribution channel | set of people and organizations responsible for the flow of products and services from the producer to the ultimate user |
| Trade salespeople | salespeople who sell to distributors and firms that resell the products (that is, they sell to the trade) |
| Missionary salespeople | work for a manufacturer and promote the manufacturer's products to other firms |
| Manufacturer's agents | independent businesspeople who are paid a commission by a manufacturer for all products or services sold; they never own the products |
| Field salespeople | spend considerable time in the customer's place of business, communicating with the customer face-to-face |
| Inside salespeople | work at their employer's location and typically communicate with customer by telephone or letter |
| Creativity | the trait of having imagination and inventiveness and using them to come up with new solutions and ideas |
| Emotional intelligence | the ability to effectively understand and regulate one's own emotions, and to read and respond to the emotions of others |
| Ethics | principles governing the behavior of an individual or a group |
| Manipulation | eliminates or reduces the buyer's choice unfairly |
| Persuasion | one may influence the buyer's decision but the decision remains the buyer's |
| Deception | withholding information or telling lies |
| Bribes | payments made to buyers to influence their purchase decisions |
| Kickbacks | payments made to buyers based on the amount of orders placed |
| Backdoor selling | when salespeople ignore the purchasing agent's policy, go around his or her back, and contact other people directly involved in the purchasing decision |
| Trade secrets | information owned by the company by which the company gains a competitive advantage; protected by law |
| Sexual harassment | unwelcome sexual advances, requests for sexual favors, jokes or graffiti, positing sexually explicit material on bulletin boards or cubicle walls, and physical conduct |
| Statutory law | based on legislation passed either by state legislatures or Congress |
| Administrative law | established by local, state, or federal regulatory agencies |
| Common law | grows out of court decisions |
| Uniform Commercial Code (UCC) | the legal guide to commercial practice in the United States |
| Agent | person who acts in place of his or her company |
| Sale | the transfer of title to goods by the seller to the buyer for a consideration known as price |
| Contract to sell | exists anytime a salesperson makes an offer and receives an unqualified acceptance |
| Invitation to negotiate | a sales presentation |
| Offer | takes place when the salesperson quotes specific terms; specifically states what the seller promises to deliver and what it expects from the buyer |
| Orders | written offers from buyers; become contracts when they are signed by an authorized representative in the salesperson's company |
| Free on board (FOB) destination | seller has title until the goods are received at the destination; any loss or damage incurred during transportation is the responsibility of the seller |
| FOB factory | buyer assumes the responsibility and risk of loss or damage incurred during transportation |
| Warranty | an assurance by the seller that the products will perform as represented; sometimes called a guarantee |
| Expressed warranty | oral or written statement by the seller |
| Implied warranty | not actually stated but is still an obligation defined by law |
| Sales puffery | opinions, glowing descriptions, ex: "our service can't be beat"; customers cannot reasonably rely on these statements |
| False Claims Act | Aka Lincoln Law; passed in 1863, enabled a person bringing a claim of fraud to share in the proceeds if the contractor was found guilty and damages are assessed |
| Credulous person standard | means the company and the salesperson have to pay damages if a reasonable person could misunderstand a statement |
| Business defamation | occurs when a salesperson makes unfair or untrue statements to customers about a competitor, its products, or its salespeople; these statements aer illegal when they damage the competitor's reputation or reputation of its salespeople |
| Reciprocity | a special relationship in which two companies agree to buy products from each other; illegal if one company forces another into it |
| Tying agreement | a buyer is required to purchase one product in order to get another product, they are typically illegal; are legal when seller can show the products must be used together or when a company's reputation depends on the proper functioning of equipment |
| Conspiracy | an agreement between competitors before customers are contacted |
| Collusion | refers to competitors working together while the customer is making a purchase decision; occurs when competitors agree to charge the same price for equipment that a prospect is considering |
| Resale price maintenance | companies establish a minimum price below which their distributors or retailers could not resell their products; legal in some situations |
| Spiffs (or Push money) | providing special incentives to get a reseller's salespeople to push products; legal only if the reseller knows and approves of the incentive and its offered to all the reseller's salespeople |
| Price discrimination | a seller giving unjustified special prices, discounts, or services to some customers and not to others |
| Privacy laws | limit the amount of information that a firm can obtain about a consumer and specify how that information can be used or shared |
| Lubrication | involves small sums of money or gifts, typically made to low-ranking managers or government officials, in countries where these payments are not illegal |
| Subordination | paying larger sums of money to higher-ranking officials to get them to do something that is illegal or to ignore an illegal act |
| Cultural relativism | the view that no culture's ethics are superior |
| Ethical imperialism | the view that ethical standards in one's home country should be applied to one's behavior across the world |
| Foreign Corrupt Practices Act | makes it illegal for US companies to pay bribes to foreign officials; however, an amendment to the act permits small lubrication payments when they are customary in a culture |
| Canned sales pitches | distributed to all salespeople, who were expected to follow scripts every time without deviation |
| Customer lifetime value (CLV) | combined total of all future sales (typically discounted back into current dollars) |
| Relationship marketing | creating the type of relationship that best suits the customer's need, which may or may not require a partnership |
| Behavioral loyalty | the purchase of the same product from the same vendor over time; for example when someone purchases out of habit |
| Attitudinal loyalty | an emotional attachment to a brand, company, or salesperson |
| Market exchange | transaction between a buyer or seller in which each party is concerned only about its own benefit; two types: solo exchanges and functional relationships |
| Functional Relationships | long-term market exchanges characterized by behavioral loyalty; buyer purchases same product out of havbit or routine; previous purchase influences the next purchase |
| Customer satisfaction | occurs when the buyer's expectations are met and needs are fulfilled |
| Win-win relationship | by working together, both parties benefit; both are concerned about each others welfare |
| Relational partnerships | types of partnerships are not necessarily strategic to either organization, although they may be to the individuals involved |
| Strategic partnerships | long-term business relationships in which the partner organizations make significant investments to improve the profitability of both parties |
| Lead users | companies that face and resolve needs months or years ahead of the rest of the marketplace |
| Knowledge management technology | the use of technology to help salespeople manage all the information required to be effective |
| Awareness | at this stage it is likely that no transaction has taken place; during this phase salespeople locate and qualify prospects, which buyers identify various sources of supply |
| Supplier relationship management (SRM) | the use of technology and statistics to identify important suppliers and opportunities for cost reduction, greater efficiency, and other benefits |
| Exploration | this stage is a search and trial phase for both buyer and seller; both may explore the potential benefits and costs of a partnership |
| Expansion | this stage involves efforts by both parties to investigate the benefits of a long-term relationship; the intention of both parties is to develop the appropriate type of relationship |
| Commitment | at this stage the customer and the seller have implicitly or explicitly pledged to continue the relationship for a period of time; it is the most advanced stage of the relationship |
| Dissolution | can occur at any time in the relationship process; process of terminating the relationship |
| Trust | a belief by one party that the other party will fulfill its obligations in a relationship |
| Dependability | the buyer's perception that the salesperson, and the product and company he or she represents, will live up to promises made, not something that can be demonstrated immediately |
| Competence | demonstrated when salespeople can show that they know what they are talking about; knowledge of the customer, product, industry, and competition are all necessary to salesperson's success |
| Customer orientation | degree to which the salesperson puts the customer's needs first; sellers stress benefits and solutions to problems over features |
| Honesty | truthfulness and sincerity |
| Likability | refers to behaving in a friendly manner and finding a common ground between buyer and seller |
| Mutual investments | tangible investments in the relationship by both parties |
| Relationship-specific assets | resources specific to the relationship and cannot be easily transferred to another relationship |
| Boundary-spanning employees | employees who cross the organizational boundary and interact with customers or vendors |
| Solo exchange | in this a buyer and seller pursue their own self-interests; they do not plan on doing business together again |
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