45 terms

Personal Selling Chapter 1

terms
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Personal selling
Interpersonal communication process in which a seller in which uncovers and satisfies the needs of a buyer to the mutual, long-term benefit of both parties.
1. No sequential steps
2. Involves many people
3. Creates value
4. Customer value proposition: Collection of buyer-specific benefits
4 aspects of personal selling
value
the total benefit that the seller's products and services provide to the buyer
Customer value proposition
The way in which a salesperson's product or service will meet the prospect's needs and how that is different from the offerings of competitors, especially the next- best alternative
Personal Value Equation
= Benefits received - (Selling price + Time and effort to purchase)
1. Selling value
2. Influencing others
3. Developing long-term relationships
Leaders are skilled at (3)
go-to-market strategies
Strategies include selling through the internet, field sales representatives, business partners, resellers, manufacturer agents, franchises, telemarketers, and others
Customer lifetime value
Estimated value of the customer over the lifetime of the relationship
Sales force-intensive organizations
Organizations that rely heavily on salespeople
Multichannel strategy
Using several strategies at the same time
Integrated marketing communications
Communication programs that coordinate the use of various vehicles
1. advertising/ sales promotion
2. personal selling/email
Paid Communication methods (2)
1. Publicity
2. word of mouth
unpaid communication methods (2)
Salespeople
1. Eyes and ears of the company
2. Skillful at disseminating knowledge acquired from customers to other people in their companies
Customer relationship management system
Information transmitted electronically to the company, its salespeople, and its customers and is contained in this system
distribution channel
is a set of people and organizations responsible for the flow of products and services from the producer to the ultimate user
customer centric
which means making the customer the center of everything the salesperson does
supply chain logistics
The management of the supply chain
six sigma selling programs
are designed to reduce errors introduced by the selling system to practically zero
trade salespeople
salespeople who sell to firms and resell the products
missionary salespeople
salespeople who work for a manufacturer and promote the manufacturer's products to other firms
manufacturers' agents
are independent business people who are paid a commission by a manufacturer for all products or services sold
1. The stage of the buyer-seller relationship
2. The salesperson's role
3. The importance of the customer's purchase decision
4. The location of salesperson-customer contact
5. The nature of the offering sold by the salesperson
6. The salesperson's role in securing customer commitment
6 factors in describing sales jobs
Stage of the buyer-seller relationship
Selling to prospects requires different skills than does selling to existing customers
Salesperson's role
Taking orders or creating new solutions
Importance of the customer's purchase decision
Sales jobs involving important decisions for customers differ greatly from sales jobs involving minor decisions
Field salespeople
Communicate with the customer face to face, at the customers location
Inside salespeople
Communicate with customers by telephone or computer, at employer's location
Nature of the offering sold by the salesperson
Types of benefits provided by products and services affects the nature of the sales job
Salesperson's role in securing customer commitment
Sales jobs differ by the types of commitments sought and the manner in which they are obtained
1. Self-motivated
2. Dependable and trust
3. Ethical sales behavior
4. Customer and product knowledge
5. Analytical skill
6. Ability to use information technology
7. Communication skill
8. Flexibility and agility
9. Creativity
10. Confidence and optimism
characteristics of successful sales people (10)
Emotional Intelligence (EI)
Ability to effectively understand and regulate one's own emotions and to read and respond to the emotions of others
1. Knowing one's own feelings and emotions as they are experienced
2. Controlling one's emotions to avoid acting impulsively
3. Recognizing customers' emotions, also known as empathy
4. Using one's emotions to interact effectively with customers
5. Positively related to performance and retaining customers
5 aspects of emotional intelligence
1. Independence and responsibility
2. Financial rewards
-- Earn more money the longer they sell
-- Depend on the level of skill and sophistication needed to do the job
3. Management opportunities
-- Selling jobs develop a firm base for launching a business career
Rewards in selling (3)
1. knowledge and skills needed for partnerships
2. The partnership development process
3. The salesperson as a manager
building partnership model (3)
1. Prospecting
2. Planning for the sales call
3. Making the sales call
4. Strengthening the presentation
5. Responding to objections
6. obtaining commitment
7. Building partnering relationships after the sale
7 steps in selling
Benefit Concept
is what exists in the consumer's mind. It is the psychological bundle of all attributes built into the product or service to meet customer needs.
1. lifetime value of a customer
2. customer margin
3. customer retention
4. customer life
5. acquisition cost
6. retention costs
7. discount rate (present value)
7 lifetime value components
Lifetime Value of a Customer
the discounted cash flow a given customer or market segment brings to a business over the length of time the customer (segment) is affiliated with the business.
Customer Margin
difference between selling price and cost of goods sold.
Customer Retention
surrogate for customer satisfaction. Number of customers who return to repurchase
Customer Life
the number of time periods the customer returns before they cease purchasing your product
Acquisition Cost
the costs associated with obtaining a new customer in sales, promotion materials, sales collateral, the cost of sales calls, etc. that lead to the first purchase.
Retention Costs
those costs associated with keeping a current customer...follow up sales calls, service assistance, reminder promotion, reminder sales contacts, some things as simple as buying lunch or playing golf to mine for information to the help the customer or circle of buying influencers.
Discount Rate (present value)
the annual growth rate of an investment, used when a future value is assumed and you are trying to find the required present value. Also called internal rate of return, or CAGR for Compound Annual Growth Rate