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This 18 page Study Guide was uploaded by Donovan Gleason on Friday November 7, 2014. The Study Guide belongs to 335 at University of Washington taught by Mike Egucci in Fall. Since its upload, it has received 135 views. For similar materials see Principles of Selling in Marketing at University of Washington.
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Date Created: 11/07/14
Chapter 1 Marketing an organizational function and a set of processes for creating communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders Marketing concept a business philosophy that says the customer39s wantsatisfaction is the economic and social justification for a firm s existence Good a physical object that can be purchased Service an action or activity done for others for a fee Product bundle of tangible and intangible attributes including packaging color and brand plus the services and even the reputation of the seller Price refers to the value or worth of a product that attracts the buyer to exchange money or something of value for the product Distribution refers to the channel structure used to transfer products from an organization to its customers Promotional effort 1 Personal selling 2 Advertising 3 Public relations 4 Sales promotion Want to be in between professional sales person and golden rule sales person 6 reasons to choose a sales career 1 Service to others 2 Variety of sales jobs 3 Freedom 4 Challenge 5 Advancement 6 Rewards Types of sales jobs 1 Retail salesperson 2 Customer contact person salesperson 3 Direct sellers face to face with customers Selling for a wholesaler 4 5 Selling for a manufacturer 6 Ordertakers 7 Order getters Sales career L sales trainee salesperson key account salesperson direct sales manager regional sales manager divisional sales manager national sales manager 9 l quotquot 3 vice president of marketing 9 president beginning as a sales person allows a person to 1 learn about the attitudes and activities of the companys salespeople 2 become familiar with customer attitudes toward the company its products and its salespeople 3 Gain firsthand knowledge of products and their application which is most important in technical sales 4 Become seasoned in the business world Success in selling 1 S success begins with love 2 S service to others 3 U use of the golden rule of selling 4 C communication ability 5 C characteristics for the job a Caring joy harmony b Patience kindness moral ethics c Faithful fair self control 6 E excels at strategic thinking 7 S Sales knowledge at the MD level 8 S Stamina for the challenge ABCS of selling 1 2 3 4 Analyze Benefits Commitment Service Want to build a relationship with customers to get customer loyalty Professional salesperson territory manager 1 9 quot39gt 3 9 Creates new customers Sells more to present customers Builds long term relationship with customers Provides solutions to customers problems Provides service to customers Helps customers resell products to their customers Helps customers use products after purchase Builds goodwill with customers Provides company with market information Learning selling skills 1 2 3 Technical skill understanding of and proficiency in the performance of specific tasks Conceptual skills cognitive ability to see the selling process as a whole and the relationship among its part Thinking and planning abilities Human skills ability to work with and through other people Sales process 1 2 Determine person or organization you will call on with MAD Planning what you want to achieve and how to accomplish it 3 Rapportbuilding S 9 quot39gt 10 11 12 13 14 15 16 Uncover needs Attention interest transition into presentation Physical performance characteristics and resulting benefits How to resell for reseller How to use for consumers and industrial user What s in it for your customers Check attitude toward what was said in presentation Opposition or resistance to information or salesperson Response using techniques for meeting objections Check attitude toward if overcame objection Maintaining contact with prospects and customers Ensure high level of service Call on next prospectcustomer with MAD Chapter 2 What influences ethical behavior 1 2 Wordview people have different beliefs on ethics and morality about the world Morals Level one preconventional individual acts in his or her best interest and thus follows rules to avoid punishment or receive awards Level two conventional individual conforms to the expectations of others such as family friends employer boss or society and upholds moral and legal laws Level three principed individual lives by an internal set of morals values and ethics regardless of punishments or majority opinion Fixed point of reference refers to something that provides the correct action to take in any situation and never gets tailored to fit an occasion Ethical 1 2 3 4 behavior Being honest truthful Maintaining confidence and trust Following the rules Conducting yourself in the proper manner 5 Treating others fairly 6 Demonstrating loyalty to company and associates 7 Carrying your share of the work and responsibility with 100 percent effort Employees rights rights desired by employees regarding their job security and their treatment by employers while on the job irrespective of whether those rights are currently protected by law or collecting bargaining agreements of labor unions Salespeoples ethics in dealing with their employers 1 Misusing company assets 2 Moonlighting a second job while on company hours or going to classes 3 Cheating adding sales from earlier on to a contest then supposed to 4 Affecting other salespeople 5 Technology theft takes the firms files Ethics in dealing with customers 1 Bribes 2 Misrepresentation 3 Breach of warranty Robinsonpatman act allows sellers to grant quatity discounts to larger buyers based on savings in manufacturing costs Price discrimination illegal and no way to treat customers Tie in sale to buy a particular line of merchandise a buyer may be required to buy other unwanted products This is prohibited under the clayton act Code of ethics formal statement of the companys values concerning ethics and social issues Ethics committee group of executives appointed to oversee company ethics Ethics ombudsperson an official given the responsibility of corporate conscience who hears and investigates ethics complaints and informs top management of potential issues Values 1 Integrity 2 Trust 3 Character Chapter 3 Black box is the decision making process of the buyer that the seller cant see Stimulusresponse model a stimulus is applied sales presentation resulting in a response purchase decision Try to find a predictable way What we know about mental processes 1 People buy for both practical rational and psychological emotional reasons 2 Salespeople can use specific methods to help determine the prospects thoughts during sales presentations 3 That buyers consider certain factors in making purchase decisions Needs and wants for example people need transportation but some people want a BMW while others want a mustang Economic needs the buyer s need to purchase the most satisfying product for the money price quality performance dependability durability convenience of buying and service Product plus a product is more than a product promotional support profit potential availability reliability competitive edge product training technical support builtin quality warrantyguarantee Levels of need 1 13 levelconscious need level buyers are fully aware of their needs 2 2quot 39 level preconscious need level buyers may not be fully aware of their needs 3 3390 level unconscious need level people do not know why they buy a product only that they do buy Benefit selling FAB selling technique 1 Feature physical characteristic of a product 2 Advantage the performance characteristic of a product that describes how it can be used or will help the buyer a Fastest selling soap on the market b Store and send more rapidly with our computer c This machine copies on both sides of the page instead of 1 3 Benefit is a favorable result the buyer receives from the product because of a particular advantage that has the ability to satisfy a buyers need a Diamond ring image of success investment or to please a loved one b Camera memories of places friends and family c STP motor oil engine protection car investment or peace of mind d Movie tickets entertainment escape from reality or relaxation LOCATE 1 2 6 Listen prospects may drop leading remarks like I wish I had a television like this one Observe study their surroundings Experienced salespeople can determine much about people by observing the way they dress or where they live and work Combine a skillful salesperson may talk to others listen to a prospect probe with questions make careful observations and emphasize Ask questions questions bring out needs that the prospect would not reveal or does not know Talk to others ask others about a prospects needs For instance ask an office managers secretary about the managers satisfaction with a copy machine Emphasize look at the situation from the customers point of view Trial close it should be used at four important times 1 2 3 4 After making a strong selling point in the presentation After the presentation After answering an objection Immediately before you move to close the sale SELL sequence 1 2 3 4 Show feature Explain advantage Lead into benefit Let customer talk Classifying buying situations 1 2 Routine decision making buying milk cold drinks grocery items Limited decision making a moderate level of actual buyer involvement in the decision They seek information to help them make the right decision Example want headphones but not sure which brand is better Extensive decision making buyers seeking to buy a home insurance or a car Determine all possible reasons why buyers are interested in a product Then in a simple straightforward manner present only enough information to allow the buyer to make a decision Need arousal relate products benefits to the persons needs Collection of information when buyers are faced with limited extensive problem solving Information evaluation determines what will be purchased Purchase decision made when a buyer matches this information with needs attitudes and beliefs as discussed earlier in making a decision Purchase satisfaction comes from receiving benefits expected or greater than expected from a product Purchase dissonance tension over whether the right product was purchased Chapter 4 Communication it takes two the act of transmitting verbal and nonverbal information and understanding between seller and buyer 8 communication elements 1 Source the source of communication salesperson 2 Encoding process the salespersons conversion ideas and concepts into the language and materials used in the sales presentation 3 Message the info intended to be conveyed in the sales presentation 4 Medium the form of communication used in the sales presentation and discussion most frequent words visual materials and body language 5 Decoding process receipt and translation interpretation of the information by the receiver 6 Receiver the person the communication the info is intended for the buyer 7 Feedback reaction can be verbal nonverbal or both 8 Noise factors that distort communication between seller and buyer Self concept factors 1 Real self people as they actually are 2 Self image how they see themselves 3 Ideal self what people would like to be 4 Lookingglass self how people think others regard them Adapt presentation to buyers style 1 Thinker style places value on logic ideas and systematic inquiry 2 lntuitor style values on ideas innovation concepts theory ong range thinking 3 Feeler style value on being people oriented and sensitive to peoples needs 4 Senser style value on action Want to be brief and to the point with them 4 major nonverbal channels 1 Concepts of space a Territorial space b Intimate space c Personal space d Social space e Public space f Space threats g Space invasion 2 Appearance a Style hair carefully b Dress as a professional 3 Handshake a Shake hands firmly and look people in the eye 4 Body movements a Acceptance signals iv V Body angle leaning forward and upright at attention Face smiling pleasant expressed relaxed eyes on visual aid and your eyes positive tone Hands relaxed performing business calculations holding on as you attempt to withdraw a product sample firm handshake Arms relaxed and generally open Legs crossed and pointed toward you or uncrossed b Caution signals Body angle leaning away from you Face puzzled little or no expression averted eyes or little eye contact neutral or questioning voice tone saying little asking only a few questions Arms crossed tense Hands moving fidgeting with something clasped weak handshake v Legs moving crossed away from you c Disagreement signals i Body ange retracted shoulders leaning away from you moving the entire body back from you or wanting to move away ii Face tense showing anger wrinkled face and brow little eye contact negative voice tones or sudden silence iii Arms tense crossed over chest iv Hands motions of rejection or disapproval tense and clenched weak handshake v Legscrossed away from you Body guidelines 1 2 3 4 Be able to recognize nonverbal signals Be able to interpret them correctly Be prepared to alter a selling strategy by slowing changing or stopping a planned presentation Respond nonverbally and verbally to a buyers nonverbal signals Master persuasion communication to maintain control Probing gathering information and uncovering customer needs using one or more questions Empathy the ability to identify and understand the other person39s feelings ideas and situation KlSS Keep It Simple Salesperson 3 levels of listening 1 Marginal listening involves the least concentration and typically listeners are easily distracted by their thoughts Evaluative listening the listener actively tries to hear what the prospect says but isn t making an effort to understand the intent Instead of accepting and trying to understand the message the evaluative listener categorizes the statement and prepares a response Active listening attention is not only on the words spoken but also on the thoughts feelings and meaning conveyed Listening in this way means the listener puts herself into someone else s shoes It requires the listener to give the other person verbal and nonverbal feedback Enthusiasm show excitement toward the customer Credibility establishing this with customers through continued empathy willingness to listen to specific needs and continual enthusiasm toward their work and customers business can make claims that some customers may treat as gospel 1 Proof statements statements that substantiate the salespersons claims Chapter 5 Sales training effort an employer puts forth to provide the opportunity for the salesperson to receive job related culture skills knowledge and attitudes that result in improved performance in the selling environment Knowledge builds relationships 1 2 3 4 5 Knowledge increases confidence in salespeople and in buyers Relationships increase sales Know your customers Know your company General company information Know your product 1 2 3 4 5 Performance data Physical size and characteristics How the product operates Specific features advantages and benefits of the product How well the product is selling in the marketplace Know your resellers 1 2 3 4 5 Likes and dislikes of each channel members customers Product lines and the assortment each one carries When each member sees salespeople Distribution promotion and pricing policies What quantity of which product each channel member has purchased in the past Advertising and sales promotion information the salesperson provides the buyer 1 2 Massive sampling and couponing Heavy advertising 3 Tv advertising theme 4 Display materials Types of advertising 1 National advertising 2 Retail advertising 3 Cooperative advertising 4 Trade advertising 5 Industrial advertising 6 Direct mail advertising Why spend money on advertising 1 Increase overall sales and sales of a specific product Give salespeople additional selling information for sales presentations Develop leads for salespeople through mail ins ad response and so on quot 3 Increase cooperation from channel members through co op advertising and promotional campaigns Educate the customer about the company39s products Inform prospects that a product is on the market and where to buy it N979 Reduce cognitive dissonance over the purchase 8 Create sales or presell customers between a salespersons calls Consumer sales promotion free samples coupons contests and demonstrations to consumers Point of purchase POP dispays photographs drawings coupons giant size product carton aisle dumps counter displays floor stands Shelf positioning placement in retailers store Shelf facings number of products placed beside each other on the shelf Premium article of merchandise offered as an incentive to the user to take action contestssweepstakes consumer premiums dealer premiums Top 10 PC applications 1 Customerprospect profile 2 Lead tracking 3 Call reports 4 Sales forecasts Sales date analysis Sales presentation Timeterritory management Order entry S l quot Travel and expense reports 10 Checking inventoryshipping status Major reasons for salespeople to us a PC 1 Provides more effective management of sales leads and better followthrough on customer contacts Computerization provides a permanent lead file 2 Improves customer relations due to more effective follow ups This leads to greater productivity Improves organizations of selling time Pcs help reps monitor and organize everything Provides more efficient account control and better time and territory management Increases number and quality of sales calls quot39gt Offers faster speed and improved accuracy in finishing and sending reports and orders to the company 7 Helps develop more efficient proposals and persuasive presentations Geographic information systems GS view and manipulate customer or prospect info on a map Cell phones 1 The person you are with is the most important person to talk to 2 Use text messaging to simplify your life 3 Turn off your phone during meetings sales calls and presentations 4 Don39t engage in cell yell List price standard price charged to customers Net price price after allowance for all discounts Zone price the price based on geographic location or zone of customers FOB shipping point free on board means the buyer pays transportation charges on the goods FOB destination the seller pays all shipping costs Noncumulative quantity discounts commonly used in the sale of industrial goods and consumer goods Cumulative discounts discounts customer receives for buying a certain amount of a product over a stated period Cash discounts earned by buyers who pay by a certain period Trade discounts manufacturer ma reduce prices to channel members middlemen to compensate them for services they perform Consumer discounts onetime price reductions Markup the dollar amount added to the product cost to determine its selling price Gross profit the money available to cover the costs of marketing the product operating the business and profit Net profit the money remaining after the costs of marketing and operating the business are paid Return on investment ROI refers to an additional sum of money expected from an investment over and above the original investment total gross profittotal investment Value analysis determines best product for the money Chapter 6 10 steps of selling process 1 Prospectcustomer 2 Preapproachplanning 3 Approach 4 Presentation a Product SELLS b Marketing plan SELLS c Business proposition SELLS Trial close Determine objection Meet objection Trial close S l quot Close 10 Followup and service Prospect qualified person or organization that has the potential to buy your good or service Prospecting lifeblood of sales because it identifies potential customers 2 reasons to prospect 1 Increase sales 2 Replace customers that will be lost over time Lead name of a person or organization that might be a prospect Qualified prospect money authority desire Sales prospecting funnel illustrates how all leads and prospects are considered and filtered out as they are subjected to the three mad questions before they become qualified prospects Leaking bucket customer concept new customers come through the top and leave through a hole in the bottom of the bucket It is always easier to sell a satisfied customer than an unsatisfied one or a new prospect 13 prospecting methods 1 Eprospecting Cold cavassing Endless chain customer referrals Orphaned customers Sales lead clubs Prospect lists Getting published Public exhibitions and demonstrations S quot39gt 3 Center of influence L 3 Direct mail 11 Telephone and telemarketing 12 Observation 13 Networking The prospect pool 1 Leads 2 Referrals 3 Orphans 4 Customers Referral cyce provides guidelines for a salesperson to ask for referrals in four commonly faced s ua ons Parallel referral sae sell the product and sell the prospect on providing referrals When to ask for referrals 1 2 3 4 Preapproach Presentation Product delivery Service and followup Call reluctance refers to not wanting to contact a prospect or customer Obtaining the sales interview 1 Appointment making 2 Telephone appointment 8 Plan and write down what you will say This helps you organize your thoughts and concisely present the message Clearly identify yourself and your company State the purpose of your call and briefly outline how the prospect may benefit from the interview Prepare a brief sales message stressing product benefits over features Present only enough information to stimulate interest Do not take no for an answer Be persistent even if there is a negative reaction to the call Ask for an interview so that you can further explain product benefits Phrase your appointment request as a question Ex would 9 or 1 be better for you on Tuesday 3 Personally making the appointment 8 b Believe in yourself Develop friends in the prospects business Call at the right time on the right person Do not waste time waiting Chapter 7 High performance sales people 1 3 Uncover and understand the customers strategic needs by gaining in depth knowledge of the customers organization Develop solutions that demonstrate a creative approach to addressing the customers strategic needs in the most efficient and effective manner possible Arrive at a mutually beneficial agreement Customer strategic needs and salespeople creative solutions leads to mutually beneficial agreements long term relationships and performance goals costs productivity sales profits Sales call planning 1 2 3 4 Determining the sales call objective Developing or reviewing the customer profile Developing a customer benefit plan Developing the individual sales presentation based on the sales call objective customer profile and customer benefit plan Sales call objective main purpose of a salepersons contact with a prospect or customer SMART call objective 1 2 3 4 5 Specific to get an order is not specific Measurable quantifiable number size etc Achievable not too difficult to fulfill Realistic not too easy to fulfill Timed at this call or before the end of the financial year Customer profile 1 2 3 4 5 6 Who makes the buying decisions What is the buyers background What are the desired business terms and requirements of the account What competitors successful do business with the account What are the purchasing policies and practices What is the history of the account Customer benefit plan 1 Step 1 select the features advantages and benefits of your product to present to your prospect 2 Step 2 develop your marketing plan 3 Step 3 develop your business proposition price percent markup forecasted profit per square foot of shelf space return on investment payment plan 4 Step 4 develop a suggested purchase order based on a customer benefit plan Prospects 5 mental steps to buying 1 Attention 2 Interest 3 Desire 4 Conviction 5 purchase
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