Chapter 17: Personal Selling and Sales Management

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Personal Selling
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the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision
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Sales Management
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involves planning the selling program and implementing and evaluating the personal selling effort of the firm
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Relationship Selling
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the practice of building ties to customers based on a salesperson’s attention and commitment to customer needs over time
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Order Taker
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a salesperson who processes routine orders or reorders for products that were already sold by the company
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Order Getter
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a salesperson who sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers’ use of a product or service
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Personal Selling Process
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sales activities occurring before and after the sale itself
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Stages in the Personal Selling Process
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the stages are: 1. Prospecting 2. Preapproach 3. Approach 4. Presentation 5. Close 6. Follow-Up
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Prospecting Stage
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first stage in the personal selling process search for and qualify prospects
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Lead
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the name of a person who may be a possible customer
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Prospect
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a customer who wants or needs the product
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Qualified Prospect
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an individual that wants the product, can afford to buy it, and is the decision maker
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Cold Canvassing or Cold Calling
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technique used when a salesperson picks up a directory, picks a name, and contacts the individual or business
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Pre-Approach Stage
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second stage in the personal selling process in which one gathers information and decides how to approach the prospect
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Approach Stage
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third stage in the personal selling process in which one gains a prospect’s attention, stimulates interest, and makes the transition to presentation
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Presentation Stage
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fourth stage in the personal selling process that begins by converting a prospect into a customer by creating a desire for the product or service
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3 Major Presentation Formats
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the three major formats are: 1. Stimulus-Response 2. Formula-Setting 3. Need-Satisfaction
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Stimulus-Response Format
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presentation format that assumes that given the appropriate stimulus by a salesperson, the prospect will buy –salesperson tries one appeal after another hoping to hit the right button
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Formula-Setting Format
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presentation format based on the view that a presentation consists of information that must be provided in an accurate, thorough, and step-by-step manner to inform the prospect
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Canned Sales Presentation
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a popular version of the formula-setting presentation format –a memorized, standardized message conveyed to every prospect
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Need-Satisfaction Format
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presentation format in which the salesperson dominates the conversation but also emphasizes probing and listening to identify the needs and interests of prospective buyers
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Adaptive Selling
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a need-satisfaction sales presentation style that involves adjusting the presentation to fit the selling situation
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Consultative Selling
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a need-satisfaction sales presentation style that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution
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6 Most Common Techniques in Handling Objections
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the six most common techniques are: 1. Acknowledge and convert 2. Postpone 3. Agree and neutralize 4. Accept 5. Denial 6. Ignore
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Close Stage
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fifth stage in the personal selling process –obtain a purchase commitment from the prospect and create a customer
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Trial Close
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involves asking the prospect to make a decision on some aspect of the purchase
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Assumptive Close
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entails asking the prospect to consider choices concerning delivery, warranty, or financing terms under the assumption that a sale has been finalized
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Urgency Close
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used to commit the prospect quickly by making reference to the timeliness of the order
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Follow-Up Stage
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last stage in the personal selling process –ensure that the customer is satisfied with the product or service
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Sales Plan
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a statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed
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3 Tasks Involved in Sales Plan Formulation
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the three tasks involved are: 1. Setting Objectives 2. Organizing the Salesforce 3. Developing Account Management Policies
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How do companies organize their salesforce?
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organized on the basis of: 1. Geography 2. Type of consumer 3. Specific products or services
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Major Account Management
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an important variation of the customer organizational structure that is the practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships; also called “key account management”
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Account Management Policies
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policies that specify who salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out
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3 Major Tasks Involved in Implementing a Sales Plan
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the three major tasks involved are: 1. Salesforce recruitment and selection 2. Salesforce training 3. Salesforce motivation and compensation
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Straight Salary Compensation Plan
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a salesperson is paid a fixed fee per week, month, or year
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Straight Commission Compensation Plan
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a salesperson’s earnings are directly tied to the sales or profit generated
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Combination Compensation Plan
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contains a specified salary plus a commission on sales or profit generated
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Sales Quota
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specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period
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Salesforce Automation (SFA)
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the use of technology to make the sales function more effective and efficient

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