Go to Market Strategies - Chapter 2
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Questions and Answers

What type of knowledge refers to understanding pricing policies to quote prices and offer discounts?

  • Technology knowledge
  • Customer knowledge
  • Market knowledge
  • Price knowledge (correct)

What does customer orientation emphasize in a sales relationship?

  • Minimizing communication with the buyer
  • Focusing solely on closing the sale
  • Prioritizing company profits over customer needs
  • Caring for the customer's interests and needs (correct)

Which knowledge is necessary for salespeople to tailor their sales presentations based on distinct markets?

  • Market knowledge (correct)
  • Price knowledge
  • Technology knowledge
  • Customer knowledge

Which of the following enhances the likelihood of earning a buyer's trust?

<p>Honest and transparent communication (A)</p> Signup and view all the answers

What factor contributes to compatibility or likability in a buyer-seller relationship?

<p>Having shared interests and values (B)</p> Signup and view all the answers

What does customer knowledge primarily help salespeople determine?

<p>Customer needs (D)</p> Signup and view all the answers

Which type of knowledge is essential for addressing service issues a buyer may have?

<p>Understanding product specifications (C)</p> Signup and view all the answers

Which dimension of service superiority focuses on whether a company can demonstrate speed in delivery?

<p>Delivery (B)</p> Signup and view all the answers

Which of the following is NOT a factor in service superiority relevant to a salesperson?

<p>Market segmentation (A)</p> Signup and view all the answers

What is the significance of trust in the purchase process?

<p>It is positively related to purchase intentions (D)</p> Signup and view all the answers

What is a critical aspect of relationship marketing in the selling process?

<p>Building long-term buyer-seller relationships (A)</p> Signup and view all the answers

How can technology facilitate communication between buyers and salespeople?

<p>By allowing virtual communication 24 hours a day (D)</p> Signup and view all the answers

What is a potential advantage of offering training at a customer’s site?

<p>Convenience for customers (D)</p> Signup and view all the answers

What type of technology allows for the posting of price updates and new product information online?

<p>Internet (A)</p> Signup and view all the answers

What does trust represent in the relationship between a buyer and a salesperson?

<p>The buyer's confidence in the salesperson's integrity (A)</p> Signup and view all the answers

Which of the following is NOT considered a key term in defining trust?

<p>Affluence (C)</p> Signup and view all the answers

Why is developing trust and rapport important before any selling activity?

<p>It helps build lasting relationships that can lead to success (A)</p> Signup and view all the answers

What is the significance of ethics in selling according to the principles discussed?

<p>Ethics and values are more important than techniques and strategies (C)</p> Signup and view all the answers

Which question helps to evaluate a salesperson's competence in building trust?

<p>Do you know what you are talking about? (B)</p> Signup and view all the answers

What is meant by the concept of 'closing' in a sales context?

<p>It represents a mutual agreement that benefits both the buyer and seller (A)</p> Signup and view all the answers

What factor is emphasized as crucial for preventing manipulation during negotiation?

<p>Recognizing the customers' needs and concerns (C)</p> Signup and view all the answers

Which of the following best describes the foundation upon which trust is built?

<p>Truth, respect, and honesty (D)</p> Signup and view all the answers

What is a potential consequence of providing a false claim about a product or service during a sale?

<p>It can result in a product liability for the company. (A)</p> Signup and view all the answers

Which unethical behavior is exhibited when a salesperson exaggerates the benefits of a product?

<p>Deceptive practice (D)</p> Signup and view all the answers

What is an express warranty?

<p>A guarantee that obligates a selling organization even without intent. (B)</p> Signup and view all the answers

How can a salesperson create product liabilities for their company through negligence?

<p>By failing to inform a customer about a product's risks. (B)</p> Signup and view all the answers

What behavior might indicate a salesperson is acting in their own interest rather than the client's?

<p>Offering unnecessary products to maximize sales. (D)</p> Signup and view all the answers

What unethical practice is involved when a salesperson pretends to be a market researcher during a sales call?

<p>Misleading communication (C)</p> Signup and view all the answers

Which action is considered unethical when it involves withholding crucial information from a customer?

<p>Deceiving the customer about product safety (B)</p> Signup and view all the answers

What could be a result of a salesperson lying about a competitor during a sales pitch?

<p>Potential legal repercussions and loss of reputation (D)</p> Signup and view all the answers

What is one appropriate action a salesperson can take to build trust with customers?

<p>Make eye contact during conversations (B)</p> Signup and view all the answers

Which of the following topics should be included in sales training to address ethical concerns?

<p>Appropriateness of gift giving (A)</p> Signup and view all the answers

What should Antonia do to address her ethical dilemma regarding the discount offer?

<p>Explain the predicament to her client (C)</p> Signup and view all the answers

Which knowledge base involves understanding ethical considerations in sales?

<p>Business ethics knowledge (A)</p> Signup and view all the answers

What is a potential consequence of not addressing a prospect's unethical demands?

<p>Loss of customer trust and reputation (D)</p> Signup and view all the answers

What is a reason for a salesperson to be concerned with the legal system of other countries?

<p>To ensure compliance with local laws (A)</p> Signup and view all the answers

What action is NOT recommended for building trust with customers?

<p>Sharing false information to make a sale (C)</p> Signup and view all the answers

Which aspect is NOT a part of effective sales training?

<p>Learning advanced sales techniques for aggressive selling (D)</p> Signup and view all the answers

Flashcards

Trust

The buyer's confidence in the salesperson's integrity, allowing reliance.

Importance of Trust

Trust leads to increased long-term revenue and profits in sales relationships.

Building Trust

Earning trust involves showing honesty, openness, dependability, and reliability.

Relationship Selling and Trust

Trust in relationship selling goes beyond transactional trust, encompassing competence, customer focus, honesty, dependability, and confidentiality.

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Competence

The salesperson's ability to demonstrate expertise and knowledge in their field.

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Customer Orientation

Prioritizing the customer's needs and interests.

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Honesty and Candor

Being truthful and open in sales interactions.

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Dependability and Reliability

Consistency and ability to follow promises and commitments made.

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Trust in Sales

A key element in relationship marketing, characterized by open communication, common goals, and a commitment to mutual gain.

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Relationship Marketing

A selling approach focusing on long-term buyer-seller relationships based on mutual trust and value.

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Expertise (Sales)

A salesperson's knowledge and ability to fulfill customer expectations.

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Dependability (Sales)

Predictability and reliability of a salesperson's actions.

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Candor (Sales)

Honesty and fairness in a salesperson's words and actions.

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Customer Orientation (Sales)

Prioritizing customer needs and interests as much as your own.

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Competitor Knowledge

Understanding a competitor's strengths and weaknesses in the market.

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Product Knowledge

Detailed understanding of a product, including its manufacturing and company's production methods.

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Price Knowledge

The knowledge salespeople need regarding pricing policies. This includes knowing how to quote prices and offer discounts on products.

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Market Knowledge

Information salespeople need to understand about different customer segments. Larger companies might divide their customers into specific groups, and salespeople must be familiar with these groups to tailor their sales presentations.

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Customer Knowledge

Information gathered over time about customers. This includes their needs, preferences, and past interactions.

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Technology Knowledge

Information salespeople must have about the latest technology. This could include understanding how to use CRM software, online tools, or other technologies relevant to their industry.

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What makes a salesperson better than the competition?

Offering superior service through quick deliveries, reliable inventory, customer training, field maintenance, credit and financial considerations, installation, guarantees, and warranties. Each element contributes to a positive customer experience.

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Internet as a bridge to customers

The internet can be used to provide customers with updated pricing information and access to new product information.

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Email as a bridge to customers

Email facilitates 24/7 communication between buyers and salespeople. It also allows for sending mass communications to a large customer base.

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Bridge to customers

Technology helps build bridges between salespeople and their customers, connecting them more efficiently and enhancing communication.

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Unethical Sales Behavior

Actions by salespeople that violate ethical standards, potentially harming customers and the company's reputation.

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Product Liability

A company's responsibility for any harm caused by its products, even if the salesperson acted unethically.

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Express Warranty

A formal promise by a seller about a product's performance or lifespan, legally binding even if the salesperson didn't intend it.

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Misrepresentation

False statements made by a salesperson about a product or service, misleading customers.

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Negligence

Failure by a salesperson to provide accurate information about a product, leading to harm or loss for the buyer.

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Basis of the Bargain

When a buyer relies on the seller's statements when making a purchase decision, creating legal implications.

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Deceptive Practices

Actions by salespeople that mislead customers to gain an advantage, often involving dishonesty or manipulation.

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Illegal Activities

Sales behaviors that violate laws and regulations, potentially leading to serious consequences for both the salesperson and the company.

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Gift Giving Ethics

Salespeople must understand the ethical limits of giving gifts to prospects, considering factors like value, purpose, and company policy.

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Expense Account Ethics

Proper use of expense accounts is crucial for salespeople, ensuring accountability and avoiding misuse for personal gain.

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Unethical Prospect Demands

Salespeople face the challenge of handling unethical demands from prospects, navigating a balance between satisfying the client and upholding ethical principles.

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Build Trust: Get to Know Them

Building trust with customers starts by taking the time to understand their needs, goals, and preferences.

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Build Trust: Call Them by Name

Using a customer's name shows respect and makes them feel valued, building connections and trust.

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Build Trust: Eye Contact

Direct eye contact conveys confidence and sincerity, fostering trust and open communication.

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Build Trust: Open Body Language

Open body language signals openness, honesty, and willingness to listen, creating a more welcoming and trustworthy atmosphere.

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Build Trust: Honesty

Trust is built on honesty and transparency. Salespeople should provide accurate information and address concerns openly.

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Study Notes

Go to Market Strategies - Chapter 2 - Building Trust

  • Learning Objectives:
    • Explain what trust is
    • Understand why trust is important
    • Explain how to earn trust
    • Discuss the knowledge bases that build trust and relationships
    • Explain the role of ethics in sales

Integrity Selling Values and Ethics

  • Selling is a mutual exchange of value
  • Selling is about doing for and with people, not to them
  • Develop trust and rapport before the selling activity begins
  • Pressure comes from customers, not the seller, when they recognize needs.
  • Effective selling is driven by value-based principles, not just techniques

Integrity Selling Values and Ethics: Basis for Long-Term Success

  • Truth, respect, and honesty are fundamental to long-term success.
  • Ethics are more significant to success compared to techniques
  • Understanding buyer needs/wants is crucial before trying to sell
  • Buyer-seller negotiation is a collaborative strategy.
  • Successful closing is a partnership, not a one-sided approach.

2-1 What is Trust?

  • Trust is the extent of the buyer's confidence in the salesperson's integrity.
  • Trust is key to successful relationships between customers and suppliers
  • Trust leads to improved long-term revenues and profits
  • Trust characteristics include:
    • Openness
    • Dependability/Predictability
    • Candor/Honesty
    • Fairness
    • Reliability
    • Security
    • Predictability
    • Confidentiality

2-1 Trust Builders

  • Trust is built upon:
    • Expertise
    • Compatibility
    • Customer Orientation
    • Dependability
    • Candor

2-1 What is Trust? (Continued)

  • Trust is about answering specific questions:
    • Does the salesperson have the relevant knowledge and expertise needed?
    • Will the salesperson act in a way that is consistent with promises?
    • Is the salesperson honest and straightforward?
    • Does the salesperson demonstrate care for customer needs?
    • Will the salesperson protect the confidentiality of shared information?

2-2 Why is Trust Important?

  • Buyers need unique solutions.
  • Long-term relationships lead to mutually beneficial outcomes.
  • These relationships are characterized by:
    • Trust
    • Open Communication
    • Shared goals
    • Mutual gain
    • Organizational support

2-2 Why is Trust Important? (Con't)

  • Trust is directly related to purchase intentions
  • Relationship selling is now paramount.
  • Relationship selling (paradigm) emphasizes creating long-term buyer-supplier relationships.
  • This paradigm requires collaborative efforts from both parties.

2-3 How to Earn Trust

  • Expertise: Possessing the necessary knowledge, skills, and resources to meet customer expectations.
  • Dependability: Demonstrating predictable actions and keeping commitments.
  • Candor: Displaying honesty and transparency in communication.
  • Customer Orientation: Prioritizing customer needs and interests.
  • Compatibility: Finding commonalities and building rapport with the customer.

2-4 Knowledge Bases Help Build Trust and Relationships

  • Competitor Knowledge: Understanding a competitor's strengths and weaknesses.
  • Product Knowledge: Having detailed knowledge of the product's manufacturing and quality.
  • Service Issues: Understanding customer concerns and issues with services.
  • Promotion Knowledge: Understanding details of the company's promotional programs and offering strategies.

2-4 Knowledge Bases Help Build Trust and Relationships (Continued)

  • Price Knowledge: Knowing pricing policies and discounts.
  • Market Knowledge: Understanding different market segments and tailoring strategies accordingly.
  • Customer Knowledge: Accumulating information about customers over time to meet their particular needs.
  • Technology Knowledge: Utilizing tools and technology to effectively communicate and provide information.

2-5 Sales Ethics

  • Ways a seller can create product liabilities:
    • Express Warranty: providing guarantees that the seller isn't responsible for
    • Misrepresentation: false claims
    • Negligence: false reporting
  • Basis of the Bargain: When a buyer relies on the seller's statements/claims
  • Important Training Topics:
    • Appropriateness of gift-giving
    • Proper Use of expense accounts/per diem
    • Dealing with unethical demands
  • Importance of observing legal systems where sales activities are conducted

Exhibit 2.7: Areas of Unethical Behavior

  • Unethical behavior is a function of:
    • Deceptive Practices: deceiving, scamming, exaggerating, high-pressure tactics.
    • Non-Customer-Oriented Behavior: pushy tactics, hard sell, fast-talking communication
    • Illegal activities: fraud, misusing company assets

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Description

This quiz covers Chapter 2 of Go to Market Strategies, focusing on the essential aspects of building trust in sales. You'll learn about the importance of trust, how to earn it, and the ethical considerations involved in effective selling. Understanding these concepts is crucial for successful, value-driven relationships in the marketplace.

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