Personal Selling – Chapter 2 – Flashcards
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Exhibit 2.1 (p. 44) *The Difference between selling and Marketing Concepts*
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Selling Concepts: 1) Emphasis is on the product 2) Company first makes the product and then figures out how to sell it 3) Management is sales-volume oriented 4) Planning is short-run, in terms of today's products and markets 5) Stresses needs for sellers Marketing Concepts: 1) Emphasis is on customer's wants 2) Company first determines customers' wants and then figures out how to make and deliver a product to satisfy those wants 3) Management is profit oriented 4) Planning is long-run, in terms of new products, tomorrow's markets, and future growth 5) Stresses wants of buyers
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Exhibit 2.2 (p. 45) *The marketing group is the link between customers and the organization*
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Top Management: Functional Departments: -*Marketing* -Production -Human Resources Salespeople: Customers: -Manufacturers -Service -Wholesalers -Retailers -Consumers
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Exhibit 2.3 (p. 46) *Four Elements to the marketing mix and four promotion activities*
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Marketing Mix (All) --> Product, Price, Place, Promotion (Public Relations) --> Public Relations, Advertising, Sales Promotion, Personal Selling
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Exhibit 2.4 (p. 47) *Examples of business-to-business value-adding*
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*Help customer reduce process costs:* -Improve yields -Reduce waste (through recycling, etc.) -Reduce rework -Reduce direct labor -Reduce indirect labor (inspection, handling) -Reduce energy costs *Help customer reduce inventory:* -Consignment -Just in time delivery -Reduced cycle time *Help customer reduce administrative costs:* -Simplify billing -Improve traceability -Use electronic data interchange *Improve safety:* -Reduce price to the customer -Substitute certain product components -Improve company processes and supplier processes
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Exhibit 2.5 (p. 48) *Examples of distribution channels for consumer and industrial products*
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*Consumer Products:* Manufacturer --> Household consumer Retailer------------------> Wholesaler-------------> Household Consumer Retailer-------------------> Household consumer *Industrial Products:* Manufacturer--> Industrial Wholesaler-----> Industrial
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Exhibit 2.9 (p. 55) *Dependence increases as relationships become more important*
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Transactional -> Relationship -> Partnership
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Exhibit 2.11 (p.60) *Marketing and personal selling provide service to customers*
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Level 1 (Outside): -Product -Price -Placement -Promotion Level 2 (Middle) *ABC'S* -Analyze needs -present product Benefits -gain Commitment -Service Level 3 (Center) -Customer
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Marketing
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Activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
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Exchange
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Act of obtaining a desired product from someone by offering something in return
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Transaction
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A trade of values between two parties; it forms a relationship between buyer and seller
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Marketing Concept
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A business philosophy that says the customers' want-satisfaction is the economic and social justification for a firm's existence
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Marketing Mix
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4 Elements: -Product -Price -Placement -Promotion
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Good
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Physical objects that can be purchased
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Service
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An action or activity done for others for a fee
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Idea
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Concept, Image, Issue, or philosophy
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Value-Added
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Benefits received that are not included in the purchase price of the individual goods, service, or idea
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Product
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A bundle of tangible and intangible attributes, including packaging, color, and brand, plus the services and even the reputation of the seller
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Consumer Products
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Things produced for and purchased by households or end consumers for their personal use
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Industrial Products
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Things sold primarily for use in producing other products
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Price
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Value or Worth of a product that attracts the buyer to exchange money or something of value for the product
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Distribution
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The channel structure used to transfer products from an organization to its customers
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Household
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A decision-making unit buying for personal use
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Firm
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An organization that produces goods and services
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Government
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An organization that has two functions: 1) The provision of goods and services to household and firms 2) The redistribution of income and wealth
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Resellers
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Purchase products and then sell them to organizations and/or individuals
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Promotion
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Increases company sales by communicating product information to potential customers
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Personal Selling
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Personal communication of information to unselfishly persuade a prospective customer to buy something goods, service, idea or something else, that satisfies an individual's needs
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Advertising
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Non-personal communication of information paid for by an identified sponsor such as an individual or an organization
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Public Relations
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Non-personal communication of information that is not paid for by an individual or organization
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Sales Promotion
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Involves activities or materials used to create sales for goods or services
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Relationship Marketing
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Creation of customer loyalty
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Service Quality
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Subjective satisfaction assessment that customers arrive at by comparing the service level they believe an organization ought to deliver to the service level that they perceive being delievered
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Transaction Selling
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Customers are sold to and not contacted again
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Partnering
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The seller contacts customers after the purchase to determine if they are satisfied and have future needs
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80/20 Principle
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80% of sales often come from 20% of the company's customers
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Consultative Selling
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The process of helping the customer achieve strategic short- and long-term goals through the use of the seller's good and/or service
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Buying Teams
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Composed of multi-functional specialists who ensure their organizations accurately convey their complex needs to the seller and thoroughly assess the accuracy of the supplier's reccomendations
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Team leaders
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A salesperson coordinates all of the information, resources, and activities needed to support customers before, during, and after the sale
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Team Selling
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Brings together the appropriate people and resources needed to make the sales call
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E-Sales Call
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Salesperson or a team of sales people, will be positioned in front of a computer interacting with the buyer or buying team
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Top-to-Top
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Meeting where only the top executives or persons with purchase power of two or more companies meet
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Business Consultant
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Salesperson gives advice and service
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Long-term Ally
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The salesperson acts as a helper in meeting the customer's needs
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Relationship Gap
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The difference between the salesperson's pre- and post-sale concern for the customer
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4 P's of Marketing
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Product: A bundle of tangible and intangible attributes, including packaging, color, and brand, plus the services and even the reputation of the seller Price: Value or Worth of a product that attracts the buyer to exchange money or something of value for the product Place: Physical location of the good and/or service Promotion: Increases company sales by communicating product information to potential customers
