Personal Selling Exam #1

Personal Selling

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Terms in this set (49)

Personal Selling

A person-to-person business activity in which a sales person uncovers and satisfies the needs of a buyer to the mutual long-term benefit of both parties.

- Most expensive
- Smallest reach
- Largest CLV

The Two-Fold Responsibility of a Sales Person

1) Deliver value to the customer
2) Deliver revenue to the employer

Customer Lifetime Value (CLV)

A prediction of the net profit attributed to the entire future relationship with a customer.

- Initial profit
- Recurring profits
- Likelihood of add-on sales, reorders, and renewals
- Customer churn (loss of clients)

Hunters vs. Gatherers

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Distribution Channel

A set of people, organizations, and technologies responsible for the flow of products, services, money, and information from the producer to the user.

Business-to-Business Distribution Channels

a) Manufacturer -> Sales Person -> Business Customer

b) Manufacturer -> Sales Person -> Distributor -> Sales Person -> Business Customer

Selling Distribution Channels

a) Manufacturer -> Sales Person -> Consumer

b) Manufacturer -> Sales Person -> Retailer -> Sales Person -> Consumer

c) Manufacturer -> Sales Person -> Distributor -> Sales Person -> Retailer -> Sales Person -> Consumer

The principles governing behavior of an individual or a group which establish appropriate behavior and indicate what is right and wrong.

Eliminating or reducing the buyer's choice unfairly.