Questions and Answers
Define prospecting in the context of sales.
Activities to identify likely buyers from various sources such as previous customers, referrals, trade lists, and advertising inquiries.
What is the purpose of approach in sales?
To make an initial contact and establish a good relationship with the prospect.
Explain what 'Closing' refers to in sales.
Bringing the sale to an end, finalizing the deal with the customer.
What is the purpose of follow-up in sales?
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Describe relationship management in sales.
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What is the definition of a convenience product?
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Define 'Market segmentation.'
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The Characteristics of something make it unable to be seen, felt, smelled, heard, or tasted.
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What is a Sole Proprietorship?
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Match the following terms with their definitions:
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Define Marketing.
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The Sales Orientation philosophy focuses on changing consumers' minds to fit the product.
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The _____ consists of the four Ps of marketing: product, place, price, and promotion.
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Match the following types of merger with their descriptions:
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Study Notes
Marketing and Sales
- Prospecting: Identifying likely buyers from a list of previous customers, referrals, trade lists, advertising inquiries, and other sources.
- Approach: Establishing an initial contact and building a good relationship with the prospect.
- Closing: Bringing the sale to an end.
- Follow-up: Contacting the customer to ensure everything was handled as promised and the order was shipped promptly.
Advertising and Promotion
- Selective advertising: Advertising that targets a specific brand or store, promoting its attributes, benefits, uses, and images.
- Primary demand advertising: Advertising that encourages generic demand for an entire product category.
- Institutional advertising: Advertising that promotes an industry or organization as a whole, stressing goodwill, corporate image, or contributions to society.
- Communications media: The means used to broadcast or print advertising messages.
- Media schedule: A time schedule identifying the exact media and dates for advertisements to appear.
Public Relations and Sales Promotion
- Publicity: Promotional activities that involve unpaid messages.
- Public relations: Activities that actively manage publicity (and sometimes other promotional elements).
- Point of purchase materials: Items given to retailers to serve as reminders at the point of sale.
- Trade allowance: A reduction in price, a rebate, merchandise, or something else given to a wholesaler or retailer for performance of a specific activity or in consideration for a large order.
Marketing Strategies
- Promotional mix: The combination of all elements of promotion, including personal selling, advertising, publicity, and sales promotion.
- Push strategy: A strategy that emphasizes promotional efforts aimed at members of the channel of distribution.
- Pull strategy: A strategy that focuses promotional efforts at the ultimate consumer or industrial buyer.
- Internal marketing: Marketing efforts aimed at the marketer's own employees to help them recognize their role in the organization's effort to create customer satisfaction.
Market Segmentation
- Consumer market: A market in which the buyers are individuals who will use the product to satisfy personal or household needs.
- Organizational or business market: A market in which the buyers are organizations that will use the product in their operations or resell it later.
- Market segment: A portion of a larger market.
- Market segmentation: Dividing a heterogeneous mass market into a number of smaller, more specific customer groups.
- Target market: The specific group likely to buy the company's product.
Consumer Behavior
- Consumer behavior: Consists of the activities in which people engage when selecting, purchasing, and using products and services.
- Demographic variables: Variables that describe people, including sex, age, and marital status.
- Psychographic variables: Lifestyle, personality, attitudes, and other psychological characteristics of consumers.
- Geodemographic segmentation: Combining demographic variables with a geographic variable to characterize clusters of similar individuals.
Marketing Research and Analysis
- Marketing research: The systematic and objective process of gathering information for aid in making marketing decisions.
- Primary data: Data gathered and assembled specifically for the project at hand.
- Secondary data: Data previously collected and assembled for some purpose other than the project at hand.
- Environmental scanning and analysis: The diagnostic activity of interpreting environmental trends in light of the organization's ability to deal with change.
- SWOT: Acronym for strengths, weaknesses, opportunities, and threats.
Product and Branding
- Product: A bundle of customer benefits.
- Core product: The essential benefits common to most competitive offerings.
- Product positioning concept: Defines the central idea underlying the product features and key benefits that appeal to the target market.
- Product differentiation: Calling buyers' attention to aspects of the product that set it apart from its competitors.
- Convenience product: A product that is relatively inexpensive, is purchased on a regular basis, and is bought without a great deal of thought.
- Shopping product: A product that generates a great deal of consumer effort.
- Specialty product: A product perceived as having a particular attraction other than price.
Pricing
- Value: Measures the power one product has to attract another product in exchange.
- Price: The amount of money or other consideration given in exchange for a product or service.
- Breakeven point: The point at which total costs and revenues meet.
- Skimming price: A relatively high introductory price that marketers plan to systematically lower as the product matures.
- Penetration price: A low introductory price.
- Prestige pricing: Pricing a brand at high levels so that consumers believe that brand differs from other brands.
Promotion
- Promotion: Communication applied to business.
- Brand image: The symbolic meaning associated with a particular brand.
- Positioning campaign: Promoting a brand's position in relation to its competitors to get consumers to view the brand from a particular perspective.
- Personal selling: A person-to-person communication between the seller and the prospective buyer.
- Field selling: Occurs when an "outside" salesperson travels to the prospective account's place of business.
- Telemarketing: Using the telephone as the primary means of communicating with prospective customers.
- Inside selling: Occurs when salespeople sell from the company's premises.### Forms of Business Ownership
- Sole proprietorship: a business owned by one person
- Partnership: an arrangement in which two or more people co-own a business
- Partnership agreement: a written document stating the terms of the partnership for the protection of each partner
- Limited partnership: a partnership in which some partners invest money or assets but have no managerial responsibilities or liability for losses
- General partner: a partner who participates in managing the business and has unlimited liability for its debts
- Limited partner: a partner who does not participate in managing the company and is liable for its indebtedness only to the extent of their investment
- Corporation: an entity owned by stockholders and granted by government charter certain powers, privileges, and liabilities separate from those of the individual stockholders
- Board of directors: a group of individuals selected by the corporation's stockholders to hire the chief executive officer (CEO), make decisions about the corporation's stocks and dividends, and oversee major policy decisions
Mergers and Acquisitions
- Merger: the result of two firms formally joining their assets, liabilities, and ownership
- Vertical merger: the combining of firms engaged in related businesses
- Horizontal merger: the joining of firms in the same industry
- Conglomerate merger: the combining of firms that do business in completely unrelated industries
- Acquisition: the result of one firm simply buying the assets and obligations of another company
- Tender offer: an offer to the shareholders of a company to purchase all of their stock at a price above current market value
- Hostile takeover: occurs when a firm acquires another company whose managers do not want the company to be sold
- Master limited partnership: similar to a limited partnership, except that shares of ownership can be traded on stock exchanges
- S corporation (subchapter S): a form of business that is distinct from other corporations only in the way it is taxed; taxed similarly to sole proprietorships and partnerships
- Cooperative: a business that is owned and managed by its customers or members, who pay annual dues or membership fees and share in any profits made
- Joint venture: an alliance in which two or more people or companies join together to undertake a specific, limited, or short-term project
Marketing Principles
- Marketing: the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that will satisfy individual and organizational objectives
- Exchange process: occurs when two or more parties exchange or trade things of value
- Production orientation: the philosophy that stresses the factory over the consumer
- Sales orientation: the philosophy that a company should change consumers' minds to fit the product
- Marketing concept: the philosophy that a company must be consumer-oriented in all matters and stress long-run profitability rather than short-term profits or sales volume
- Marketing mix: the result of management's efforts to creatively combine interrelated and interdependent marketing activities; consists of the four Ps of marketing: product, place, price, and promotion
- Product: what the company offers its perspective customers
- Place or distribution: the location where customers buy the product; how products get to the customer, how quickly, and in what condition
- Price: the amount of money, or sometimes goods or services, given in exchange for something
- Demographics: the study of the size and composition of the population
- Culture: the social values, beliefs, and institutions in a society
- Social values: represent the goals a society views as important and express a culture's shared ideas about preferred ways of acting
- Technology: the application of scientific knowledge to practical purposes
- Marketing strategy: consists of determining basic long-range goals and committing to a marketing plan that explains how the goals will be achieved
- Competitive advantage: anything that makes a company's product superior or different from competitors in a way that is important to the market
- Market: a group of individuals who are potential customers for the product being offered for sale
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Description
This quiz covers different forms of business ownership, including sole proprietorship and partnerships.
