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MKTG 428 Exam 1
Terms in this set (80)
Selling that involves separate organizations, each entering in to a separate transaction. These are short term single sales that have little to do with customer needs.
Selling that narrows the vendor pool, improves efficiencies, and works directly with customers to solve problems. These are focused on long term relationships. The sales rep gets to know the customers' needs and wants. Once the relationship is established, they will make a recommendation or think about a sale. The established relationship provides a competitive advantage.
Sales effectiveness is enhanced through _______________________.
Computers and mobile phones provide greater _______________________.
T/F Leadership is not necessarily important in sales management success.
Leadership is a key component in sales management success.
Compare leading vs. managing
Leading is mentoring, communicating, coaching, and empowering. Managing is controlling, supervising, or directing.
The type of leadership that takes subordinates' work seriously, takes lead from subordinates, builds trust, allocates rewards and glory, and views self as steward.
_______________ underlies all selling and sales management activities.
What is the Sales Management Process?
1. The formulation of the sales program
2. The implementation of the sales program
3. The evaluation and control of the sales program
Components of the external environment?
-Legal and political
-Social and Cultural
What are the three broad categories of laws regulating the conduct of business?
2. Consumer Protection
3. Equal Employment Opportunity
Transportation, communication, and data processing technologies change:
1. Sales territories
2. Sales rep deployment
3. Sales performance evaluation
DEFINE: Development of moral standards by which actions and situations can be judged, ethical standards reflect the integrity of the firm
Components of the internal environment?
-Goals, objectives, and culture
-Production and Supply Chain Capabilities
-R&D and Technology Capabilities
Which of the following is not an example of how the natural environment can impact the sales environment?
B. Natural Disasters
C. Sales Quotas
D. Availability of Raw Materials
C. Sales Quotas
T/F One of the challenges in the global sales environment is dealing with increased number of laws that regulate business.
Name some advantages of CRM or data analytics:
-maintaining customer relationships
-insights into customer buying behavior
-tells you how to organize your sales force
-tells you how to allocate your time
-tailor marketing campaigns
T/F A start up is at the point where they are ready to use a sales force. One of their first decisions will be to decide if they want to hire internal sales or hire outside agents.
Name a way that the sales force is changing in the 21st century:
-Long term relationships with customers
-Nimble and adaptable sales structures
-Fewer functional barriers within the organization
-Coaching sales management style (shifting from commanding to coaching)
-Incorporate all activities and outcomes in performance evaluations
What are some attractive qualities about a career in sales?
-opportunities for personal initiatives
-variety of challenging activities
-favorable working conditions (working from home)
-excellent opportunities for development and advancement
-act as your own boss, freedom to travel, competitive personality, control you own financial fate, not boring
What is the most important key factor in selling?
Are most salespeople involved in B2C or B2B?
What are the stages of the selling process?
1. Prospecting new customers
2. Opening the relationship
3. Qualifying the prospect
4. Presenting the sales message
5. Closing the sale
6. Servicing the account
Participants in the Organizational Buying Process:
-Initiators - perceive problems/opportunities requiring new product or service
-Users - use or work with the product or service
-Influencers - provide information for evaluating products or suppliers
-Gatekeepers - EX: receptionist to CFO
-Buyers - contact selling organization and place order
-Deciders - final authority to purchase
-Controllers - determine budget
Establish a _______________ structure to meet customer needs.
direct reports and internal consultants provide expertise
team managed by senior salesperson dedicated to serving important customer
What are the different types of organizational buying situations?
1. New Task
2. Modified Rebuy
3. Straight Rebuy
What is CRM?
comprehensive business model for increasing revenues and profits by focusing on customers; overarching business philosophy and process tool to facilitate a customer-drive enterprise
Customers drive the __________________ which is driven by the __________________.
marketing strategy; marketing mix
__________________ is the center of all marketing activities.
What are the different types of marketing?
mass marketing, target marketing, customer marketing, one-to-one marketing
What are the objectives of CRM?
What are some advantages of CRM?
-reduces advertising costs
-increases awareness of customer needs
-tracks effectiveness of promotional campaigns
-competition for customers based on service, not prices
-prevents over-spending on low-value customers, under-spending on high-value ones
-speeds time to develop and market a product
-improved the use of the customer channel
What are Porter's Three Generic Strategies?
1. Low cost
What are the types of relationships between buyers and sellers?
1. Market exchange
2. Customer relationship
3. Strategic partnership
What is marketing strategy?
one shot transactions occurring between a buyer and seller with limited thought of future consideration
What are functional relationships (customer relationships)?
creating a climate of cooperation with open and honest communication
What are strategic partnerships?
long-term relationships where both parties make significant investments
What are the stages of relationship development?
1. Exploration - determine value, build trust, set proper expectations, monitor
2. Expansion - generate repeat sales, full-line selling, cross-selling
3. Commitment - build loyalty, become a preferred supplier, engage in TQM
large purchases, high complexity, high detail, lots of price negotiations, few buyers, high geographic dispersity, needs lots of post sale follow up
Two types of Sales Organization structure?
Vertical & Horizontal
Types of agents?
-sell part of their output of their principals
-take neither ownership nor physical possession of their goods
-cover specific territory and specialize in limited range of complementary products
-do not take title or possession of the goods they sell
-compensated by commission
-broad authority to modify the prices and terms of the sale
-actively shape manufacturer's promotional and sales programs
simplest and most common method; individual sales people are assigned to separate geographic territories; responsible for performing all activities necessary to sell all products
Pros of Geographic Organization
low costs, travel time and expenses minimized, sales administration and overhead costs kept low
Cons of Geographic Organization
does not provide benefits associated with specialization of labor
separating sales force for each product or category in the line
Pros of Product Organization
salespeople master effective selling methods for single or related products; closer alignment of sales and production; sales management controls allocation of selling efforts across the line
Cons of Product Organization
duplication of effort
Organization by Customer Type
natural extension of marketing concept and strategy of market segmentation
Pros of Organization by Customer Type
better understanding of customer needs; increased familiarity with certain businesses; increased control over allocation of selling effort
Cons of Organization by Customer Type
possible higher selling and administrative costs ; duplication of effort
Organization by Selling Function
sales people specialize in performing different selling functions like prospecting and developing new accounts vs. maintaining and servicing existing customers
Pros of Organization by Selling Function
skills matched to sales function; developmental salespeople often a successful alternative
Cons of Organization by Selling Function
customer objections to switch to maintenance salespeople; feelings of rivalry between the sales force
What type of organization does telemarketing fall under?
Organization by selling function
What are Co-Marketing Alliances?
they develop marketing and sales programs to sell integrated systems directly to the ultimate customer
What is the span of control?
span of control is dictated by managers and levels of management, the more of these there are the lower the span of control, and vice versa
Pros of a larger span of control
greater control/responsiveness due to fewer management layers; lower admin costs
Cons of a larger span of control
reduced one-to-one communication due to a larger number of subordinates; managements may be less effective; negating cost savings
The Six C's in Finding the Right Rep
1. Compatible lines
2. Compatible territories
3. Compatible customers
4. Credibility of the rep
Start of a new salesforce: building blocks
-start with a strategy
-appoint an expansion team
-leverage existing strengths
-avoid compensation snafus
What is an impact of new technologies?
may change vertical structure; productivity enhancement through CRM systems
DEFINE Market Potential
estimate of possible sales for an entire industry in a market during a stated period under ideal conditions
DEFINE Sales Potential
portion of market potential the firm can expect to reasonably achieve
DEFINE Sales Forecast
estimate of dollar or unit sales for a specified future period
DEFINE Sales Quotas
sales goals assigned to a marketing unit to manage sales efforts
Subjective Sales Forecasting
more qualitative info
Objective Sales Forecasting
more quantitative info
Different types of quotas
Most popular type of quota is
Sales Volume Quotas
often based on past sales, related directly to market potential thus credible and easily understood, may be expressed in dollars, physical units, or points
reflect territorial conditions, require a detailed analysis of work required for effective territorial coverage, customers influence activity quotas through: account and order size, purchasing patterns, support required for satisfaction
direct sales people to more profitable products and customers
Determining Sales Force Size Methods
1. Breakdown method
2. Workload method
3. Incremental Method
divide total forecast sales for the company by the sales likely to be produced by each individual
all sales reps shoulder equal amount of work
add sales reps as long as profit by having them exceeds additional costs
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