question

Personal selling

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A purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other

question

1st advantage of personal selling

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Provides a detailed explanation or demonstration of the product.

question

2nd advantage of personal selling

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Sales message can be varied according to the motivations and interests of each prospective customer

question

3rd advantage of personal selling

answer

Can be directed only to qualified prospects

question

4th advantage of personal selling

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Costs can be controlled by adjusting the size of the sales force

question

Most important advantage of personal selling

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More effective than other forms of promotion in obtaining a sale and gaining a satisfied customer

question

Relationship selling is also known as

answer

consultative selling

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Relationship selling

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A multistage process that emphasizes personalization and empathy as key ingredients in identifying prospects and developing them as long-term, satisfied customers

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What is the focus on relationship selling?

answer

Building mutual trust between the buyer and seller through the delivery of long-term, value-added benefits that are anticipated by the buyer

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Relationship or consultative salespeople become

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Consultants, partner,s and problem solvers for their customers

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Customer relationship management (CRM)

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The ultimate goal of a new trend in marketing that focuses on understanding customers as individuals instead of as part of a group

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How was CRM initially popularized?

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One-to-one marketing

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How are marketers making their communications more specific?

answer

CRM cycle

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Two key points of CRM

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1) Customers take center stage in any organization 2) The business must manage the customer relationship across all points of customer contact throughout the entire organization

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Companies that have CRM systems follow a _________ focus or model

answer

customer-centric

question

Customer-centric

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An internal management philosophy similar to the marketing concept in Chapter 1

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What does learning in a CRM environment involve?

answer

Collecting customer information through comments and feedback on product and service performance

question

Knowledge management

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A process by which customer information is centralized and shared in order to enhance the relationship between customers and the organization

question

When does an interaction occur?

answer

When a customer and a company and a company representative exchange information and develop learning relationships

question

How can the success of CRM be measured?

answer

The effectiveness of the interaction between the customer and the organization

question

Following a customer-centric approach, an interaction can occur through a __________ or direct communication channel

answer

Formal

question

Touch points

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In a CRM system, touch points are all areas of a business where customers have contact with the company and data might be gathered

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The net promoter score

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Measures how much a customer influences the behavior of other customers through recommendations on social media

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Point-of-sale interactions

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Another touch point in stores or at information kosks

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What is the traditional approach for acquring data from customers?

answer

Channel interactions

question

What do channel interactions include?

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Store visits, conversations with salespeople, interactions via the Web, traditional phone conversations, and wireless communications

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Is the issue with CRM how much data can be obtained or what type of data should be acquired?

answer

What type of data should be acquired

question

What is leveraging customer information?

answer

When you data mine then tailor design marketing strategies

question

Improving customer retention by a mere 2 percent can decrease costs by ____

answer

10 percent

question

Campaign management

answer

Involves montiroing and leveraging customer interactions to sell a company's products and to increase customer service

question

When a company retains an additional 5 percent of its customers each year, profits will increase by ______

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25 percent

question

Sales process is also known as the

answer

sales cycle

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Sales process

answer

The set of steps a salesperson goes through to sell a particular product or service

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True or false: The sales process or cycle can be unique for each product or service

answer

True

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Seven steps in the personal selling process

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1) Generating leads 2) Qualifying leads 3) Approaching the customer and probing needs 4) Developing and proposing solutions 5) Handling objections 6) Closing the sale 7) Following up

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The final step in the sales process is...

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Following up

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Follwoing up lowers

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Cognitive dissonance

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True or false: Traditional selling and relationship selling follow the same basic steps

answer

True

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How do traditional selling and relationship selling differ in relation to the sales process?

answer

The relative importance placed on key steps in the process

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Traditional selling efforts are ________ oriented

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Transaction

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Step 1: Lead generation is also called

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Prospecting

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Lead generation

answer

the identification of those firms and people most likely to buy the seller's offerings

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Referall

answer

A recommendation from a customer or business associate

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Referrals are typically as much as _____ times more productive in generating sales than cold calls

answer

10

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Networking

answer

Using friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations to identify potential clients

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Step 2

answer

Qualifying leads

question

Qualifying leads

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When a prospect shows interest in learning more about a product, the salesperson has the opportunity to follow up (or qualify) the lead

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Qualified leads are

answer

Real prospects who answer questions, value your time, and are realistic about money and when they are prepared to buy

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Lead qualification involves determining whether the prospect has 3 things:

answer

1) A recognized need 2) Buying power 3) Receptivity and accessibility

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Preapproach

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The "homework" that must be done by the salesperson before contacting the prospect

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In a needs assessment, the consultative salesperson must know everything there is to know about

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1) The product 2) Customers and their needs 3) The competition 4) The industry

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Sales proposal

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Written document or professional presentation that outlines how the company's product will meet or exceed the client's needs

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Sales presentation

answer

The formal meeting in which the salesperson has the opportunity to present the sales proposal

question

Quota

answer

A statement of the salesperson's sales goals, usually based on sales volume alone but sometimes including key accounts, new accounts, repeat sales, etc

question

Compensation planning is one of the sales manager's _____ jobs

answer

toughest

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_______ are one of the most rapidly adopted consumer technologies in history

answer

Tablets

question

Social commerce

answer

Combines social media with the basics of e-commerce. Example, Pinterest

question

The bulk of the marketing budget goes to

answer

Search marketing and display advertising

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Social media budget in marketing went from 19% in 2011 to _____ in 2016

answer

35%

question

Unique consequence of social media

answer

Widespread shift from one-to-many communication to many-to-many communication

question

Crowdsourcing

answer

Using consumers to develop and market products

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First action a marketing team should take when initiating a social media campaign

answer

Listen

question

Social media monitoring

answer

The process of identifying and assessing what's being said about a company, individual, product, or brand

question

After establishing a listening platform, the organization should develop

answer

a list of objectives for its social media team to accomplish

question

6 categories of social media users

answer

1) Creators 2) Critics 3) Collectors 4) Joiners 5) Spectators 6) Inactives

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Corporate blogs

answer

Sponsored by a company or one of its brands and are maintained by one or more of the company's employees

question

Noncorporate blogs

answer

Independent and not associated with the marketing efforts of any particular company or brand

question

Microblogs

answer

Blogs that entail shorter posts than traditional blogs (like Twitter)

question

Price plays 2 roles in the evaluation of product alternatives:

answer

1) A measure of sacrifice 2) An information cue

question

Do we infer quality information from price?

answer

Yes

question

Revenue

answer

The price charged to customers multiplied by the number of units sold

question

3 categories of pricing objectives

answer

1) Profit oriented 2) Sales oriented 3) Status quo

question

Proxit maximization

answer

Setting prices so that total revenue is as large as possible relative to total costs

question

Return on investment =

answer

Net profits after taxes / Total assets

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ROI measures management's overall effectiveness in

answer

generating profits with the available assets

question

The higher the firm's ROI,

answer

the better

question

Firms seek ROIs in the 10 to

answer

30% range

question

Sales-oriented pricing objectives are based either on

answer

market share or on dollar/unit sales

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Market share

answer

a company's product sales as a percentage of total sales for the industry

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status quo pricing

answer

seeks to maintain existing prices or to meet the competition's prices

question

price equilibrium

answer

When demand and supply are equal

question

elasticity of demand

answer

consumer's responsiveness or sensitivity to changes in price

question

Elastic demand

answer

a situation in which consumer demand is sensitive to price changes

question

Inelastic demand

answer

An increase or a decrease in price will not significantly affect demand for the product

question

Elasticity =

answer

% change in quantity demanded of good A / % change in price of good A

question

If E in the elasticity formula is > 1, demand is

answer

elastic

question

E < 1, demand is

answer

inelastic

question

E = 1, demand is

answer

unitary

question

unitary elasticity

answer

an increase in sales exactly offsets a decrease in prices, so total revenue remains the same

question

If price goes down and revenue goes up, demand is

answer

elastic

question

If price goes down and revenue goes down, demand is

answer

inelastic

question

If price goes up and revenue goes down, demand is

answer

elastic

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