Selling Chapter 1 Flashcards

Questions and Answers

Why learn about Personal Selling?

People in business use selling principles all the time (correct)

Developing mutually beneficial, long-term relationships is vital (correct)

Salespeople have no influence on day-to-day activities

Principles of selling are useful only to salespeople

What is a selling situation?

Person A has a need, Person B has a solution, and there is an exchange taking place.

What four departments of a firm does sales impact?

Finance and Accounting, Logistics and Supply Chain, Manufacturing, Marketing.

How do salespeople impact profits?

Cost of sales, pricing, cost of goods sold. Signup and view all the answers

How do salespeople help or hurt cash flow?

Collection of accounts receivable and sandbagging. Signup and view all the answers

What do salespeople influence as logistics and supply chain managers?

Where companies source their products. Signup and view all the answers

What are the characteristics of salespeople as inventory managers?

Supplier side, customer side, managing the flow of products, services, money, and information. Signup and view all the answers

What are the two B2B distribution channels?

Direct sales to a business customer and sales through distributors. Signup and view all the answers

What are the three consumer channels?

Retail, online, and direct. Signup and view all the answers

How do salespeople act as manufacturing managers?

Salespeople control the types and timing of products produced. Signup and view all the answers

What is salespeople's impact on the marketing aspect of a firm?

Salespeople affect the 4 P's of marketing. Signup and view all the answers

What are the three go-to-market strategies?

Multi-channel, sales force intensive, integrated marketing communications. Signup and view all the answers

Are salespeople born or made?

The skills required to be a successful salesperson can be learned. Signup and view all the answers

What are the rewards in selling?

Independence, management opportunities, and financial rewards. Signup and view all the answers

What are the types of relationships?

Market exchanges, functional relationships, relational partnerships, strategic partnerships. Signup and view all the answers

What is the difference in relationships and selling?

Relationship marketing emphasizes loyalty and lifetime customer value. Signup and view all the answers

What are the two types of loyalty?

Behavioral loyalty and attitudinal loyalty. Signup and view all the answers

What are the four types of relationships between buyers and sellers?

Sales market transactions, functional relationships, relational partnerships, strategic partnerships. Signup and view all the answers

What is the goal in market exchange selling?

Make a sale. Signup and view all the answers

What is the second stage of the market exchange selling?

Closing the sale. Signup and view all the answers

What is the third stage of the market exchange selling?

Following through. Signup and view all the answers

What are the actions in the first stage of the long-term relationship selling?

Building trust and initiating the relationship. Signup and view all the answers

What are the actions in the second stage of the long-term relationship selling process?

Developing the relationship through discussions and solutions. Signup and view all the answers

What are the actions in the third stage of the long-term selling process?

Enhancing the relationship by ensuring customer satisfaction. Signup and view all the answers

What are the five foundation building blocks of successful relationships?

Common goals, commitment to mutual gain, organizational support, mutual trust, open communication. Signup and view all the answers

What are the three characteristics of successful partnerships?

Mutual trust, open communication, common goals. Signup and view all the answers

What is the definition of trust?

A belief that the other party will fulfill its obligations. Signup and view all the answers

What are the last two characteristics of a successful partnership?

Commitment to mutual gain and organizational support. Signup and view all the answers

What are the first two parts in the phases of relationship development?

Awareness and exploration. Signup and view all the answers

What are the other three phases of relationship development?

Expansion, commitment, dissolution. Signup and view all the answers

What are the two main characteristics of managing relationships and partnering?

Choosing the right relationships and using technology to increase efficiency. Signup and view all the answers

Study Notes

Personal Selling Importance

Selling principles apply universally, benefitting anyone, not just designated salespeople.
Cultivating long-term, mutually beneficial relationships is essential for success in business.
Sales principles are routinely utilized across various business functions.
Understanding daily activities of salespeople enhances overall business comprehension.

Selling Situations

Defined as an interaction where one person has a need (Person A) and another possesses a solution (Person B), resulting in an exchange.

Sales Impact on Firm Departments

Finance and Accounting: sales influence cost management.
Logistics and Supply Chain: sales ensure customer needs are met through effective sourcing.
Manufacturing: sales interact with vendors for product availability.
Marketing: sales provide essential market insights and information.

Sales Influence on Profits

Costs linked to sales, including cost of sales and cost of goods sold, directly affect profitability.

Cash Flow Management by Salespeople

Effective collection of accounts receivable enhances cash flow.
Practices like sandbagging (underbidding) can adversely affect cash flow.

Supply Chain and Logistics Influence

Salespeople contribute to sourcing products and meeting customer requirements by liaising with partners and vendors.

Salespersons as Inventory Managers

Responsible for managing relationships on both the supplier and customer sides.
Involved in ensuring efficient flow of products, services, and information from producers to end-users.

B2B Distribution Channels

Direct sales: manufacturers' salespeople engage directly with businesses.
Sales through distributors: trade salespeople supply firms that resell products.
Missionary salespeople: promote manufacturer products.
Distributor salespeople: sell distributor products to customers.

Consumer Channels

Consumer channels include direct, retail, and e-commerce sales strategies.

Manufacturing Impact by Salespeople

Sales dictate both the types and timing of products manufactured, influencing material requirements.

Marketing Aspects Affected by Sales

Salespeople impact the four P's of marketing: Price, Place, Promotion, and Product.
They also shape the firm's go-to-market strategy.

Go-to-Market Strategies

Multi-channel: utilizing several sales approaches.
Sales force intensive: a strategy heavily reliant on sales personnel.
Integrated marketing communications: focuses on customer lifetime value.

Nature of Sales Skills

Sales skills can be developed rather than being purely innate traits.
Training investment reflects the industry acknowledgment that various characteristics do not dictate sales performance.

Rewards in Selling Careers

Selling roles offer independence, managerial opportunities, and financial incentives.

Types of Relationships in Selling

Market exchanges include solo exchanges and functional relationships.
Partnerships consist of relational and strategic partnerships that enhance profitability.

Relationship vs. Selling

Relationship marketing focuses on customer loyalty and lifetime value rather than just transactional sales.

Loyalty Types

Behavioral loyalty involves repeated purchases from the same vendor.
Attitudinal loyalty reflects emotional attachment to a brand or salesperson.

Relationship Types Between Buyers and Sellers

Variants of relationships include sales market transactions, functional relationships, relational partnerships, and strategic partnerships.

Marketing Exchange Selling Goals

Main goal is to make sales through effective contact, engagement, and rapport building.

Stages of Market Exchange Selling

Closing the sale involves crafting an effective pitch and responding to potential objections.
Following through requires re-establishing contact and reinforcing the relationship.

Long-Term Relationship Selling Process

Building trust involves strategic prospecting, understanding customer needs, and showcasing relationship value.
Relationship development stages include initiating, customizing offerings, and ensuring mutual satisfaction.

Foundations for Successful Relationships

Successful relationships are built on common goals, mutual trust, open communication, and commitment to shared success.

Characteristics of Successful Partnerships

Essential traits include mutual trust, dependability, open communication, and aligned objectives.

Trust Definition

Trust is the belief that each party will fulfill obligations in a relationship.

Partnership Characteristics

Commitment to mutual gain and organizational support are crucial for partnership success.

Phases of Relationship Development

Awareness: qualifying prospects and identifying suppliers.
Exploration: assessing partnership benefits and costs.
Expansion: evaluating long-term relationship advantages.
Commitment: pledging continuation of the relationship.
Dissolution: managing the termination process if necessary.

Managing Relationships and Partnerships

Focus on selecting appropriate relationships based on innovative access and operational efficiency enhanced by technology.

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Description

This quiz focuses on Chapter 1 of Selling, exploring the importance of personal setting and the principles of selling. It highlights how these principles apply to everyone involved in business, not just traditional salespeople. Test your knowledge of key concepts and terms related to establishing selling situations and building partnerships.