Transaction-focused Selling Ch 1-5

Chapter 1 ● Transaction-focused Selling ○ ● Trust-based selling ○ Requires salespeople to earn trust, meet customer needs, and contribute to the creation, communication, and delivery of customer value ● Differences ○ Transaction: focus on the salesperson and selling firm, role is to make calls and close sales, isolated from customers decision making process ○ Trust: focus on customer(s), role is business consultant, involved in decision making process ● Adaptive selling ○ Ability of salespeople to change their sales messages based on various customer situations ● Consultative selling ○ Helping customer attain strategic goals by using products, services, and expertise of the selling organization ● Differences ○ Adaptive: changes sales based on customer situations ○ Consultative: changes sales based on organizations products ● Personal selling ○ Marketing tool that focuses on interpersonal interactions between buyers and sellers - to initiate, develop and enhance customer relationships Chapter 2 ● Factors affecting trust (trust builders) ○ Expertise, compatibility, customer orientation, dependability ● Salesperson knowledge bases ○ Technology, industry, company, product, service, price promotion, market/customer knowledge, competitor ● Sales ethics ○ Product liabilities created by salespeople ■ Express warranty: sales person gives warranty/guarantee to a customer obligating the company to do the same ■ Misrepresentation: false claims by a salesperson ■ Negligence: false claim about the product or service ● Basis of the bargain ○ Buyer relying on the selling in making the purchase decision Chapter 3 ● Steps in the new buying process ○ Recognition of the problem ○ Determination and description of the characteristics of the item and the quantity needed ○ Search for and qualification of potential sources ○ Acquisition and analysis of proposals ○ Evaluation of proposals and selection of suppliers ○ Selection of an order routine ○ Performance feedback and evaluation ● The needs gap ○ The difference between the desired state and actual state ● Types of buyer needs and their definitions ○ Psychological ○ Social ○ Situational ○ Knowledge ○ Functional ● Communications styles and their differences ○ Amiables ■ Slow-paced ■ Relationship oriented ○ Expressives ■ Relationship-oriented ■ Fast-paced ○ Analyticals ■ Task-oriented ■ Slow-paced ○ Drivers ■ Task Oriented ■ fast-paced Chapter 4 ● Understanding the purposes of each type of question in the SPIN selling model ○ Situation: used to collect facts ○ Problem: used to probe for problem, points of dissatisfaction ○ Implication: used to probe the consequence of a problem ○ Need: used to uncover the core need ● ADAPT ○ Assessment, discovery, activation, projection, transition ● Types of questions, open-ended vs. closed ended ○ Open ended: allows free customer response ○ Close ended: limits customer response to one or two words ○ Dichotomous: customer needs to select from two or more options ○ Probing: elicits articulate and precise responses from the customer ○ Evaluative: uses open-ended and close-ended question formats to discover attitudes, opinions, and preferences that the prospect holds ○ Tactical: used to shift the topic when the conversation goes off course ○ Reactive: question based on the information provided previously by the other party ● Benefits of trust-based sales communication ○ Allows buyers and sellers to understand the need by working together to create the best solution for customers Chapter 5 ● Definition of sales prospect ○ Designed to identify, qualify, and prioritize sales opportunities ● Prospecting methods ○ Cold canvassing: cold calling, referrals, introductions ○ Networking: center of influence, social media, non competing salespeople ○ Company sources: company records, advertising inquiries, telephone inquiries, trade shows, seminars ○ Commercial sources: directories, lead management sources ● Strategic prospecting plan: uses, parts and definition ○ Set goals ○ Allocate time ○ Keep records ○ Stay positive ○ Evaluate Chapter 6 ● The parts of the sales dialogue template ○ Prospect information, customer value, proposition, linking buying motives benefits support information and reinforcement methods, current suppliers, beginning the sales dialogue, anticipated prospect questions and objections, earn prospect commitment, building value through followup action ● Customer value proposition ● Parts of a sales proposal ○ Executive summary: demonstrates salespersons knowledge about the customer’s need and creates a desire in the customer to read it ○ Customer needs and proposed solution: includes situation analysis and the recommended solution ○ Seller profile: information about the selling company ○ Pricing and sales agreement: presents the pricing and delivery options ○ Implementation and timetable: includes details about the additional information required to sign the contract ● Written sales proposals Chapter 7 ● Response checks and their uses ○ Questions that salespeople use during a sales dialogue, used to confirm benefits and assess buyer’s level of interest ● Confirmed benefits ● Proof providers ○ Statistics, testimonials, and case histories Chapter 8 ● Types of objections ○ No need, product or service objection, company objection, price is too high, time/delaying ● LAARC method ○ Listen, acknowledge, assess, respond, confirm Chapter 9 ● Four step follow up ○ Interact, connect, know, relate ● Understand adding value ○ Provide quality customer service ○ Meet customer expectations ○ Develop a service strategy ○ Concentrate on the dimensions of customer service Chapter 10 ● Territory analysis ○ Surveying an area to determine customers and prospects who are most likely to buy ● Account classification: single-factor analysis and portfolio analysis ○ Process of categorizing existing customers and prospects based on their potential as a customer ○ Single factor: analyzes accounts based on a single factor ○ Portfolio: analyzes accounts considering two factors simultaneously ● Portfolio analysis selling strategies matrix CHAPTER 1 Which of the following forms of marketing involves talking with buyers before, during, and after the sale? (a) Personal selling (B) Advertising (C) Direct marketing (D) Sales promotion (E) Electronic marketing John is a salesperson who relies heavily on creating sales strategies centered around gaining his customers' trust and confidence and meeting their needs. His main focus is on delivering customer value. In this context, John relies on the _____ form of personal selling. (A) consultative selling (B) mental states selling (C) trust-based relationship selling A salesperson who follows the trust-based relationship selling strategy when dealing with his or her customers is expected to be actively involved in: (A) maximizing sales in the short run. (B) convincing the customers that his or her product is the best. (C) moving on to a new customer as soon as sales are completed with the previous customer. (D) solving his or her customers' problems. Which of the following is a key difference between trust-based relationship selling and transaction-focused traditional selling? (A) In trust-based relationship selling the customer is the primary focus, whereas in transaction focused traditional selling the salesperson is the primary focus. Susan's customers are always concerned about what they are receiving in exchange for what they are paying. They are concerned about the ways in which Susan is helping them achieve their strategic goals and how she is helping them save money. In this context, Susan's prospects are concerned about _____. (A) marketing (B) personal selling (C) customer value A salesperson can deal with the issue of intensified competition in the future by: (E) focusing more on creating and delivering customer value. One of the key roles that salespeople play in society is the distribution of knowledge about new technology. In other words, salespeople help with the _____. (A) growth of revenue (B) diffusion of innovation When salespeople alter their sales messages and behaviors during a sales presentation or as they encounter different sales situations, they are using _____. (A) value-based selling (B) response selling (C) interactive selling (D) adaptive selling _________ refers to the process whereby new products, services, and ideas are distributed to the members of society. Answer : Diffusion of innovation In the context of a buyer-seller relationship, which of the following statements is true of trust? A) The salesperson defines it in the relationship. (B) It was more important in traditional selling than it is in today's relationship selling. (C) A salesperson has to determine what it means to each of his or her buyers. CHAPTER 2 Which component of trust in a salesperson does a buyer's question "Do you know what you're talking about?" most likely address? (A) Expertise Which component of trust in a salesperson does a buyer's question "Will you recommend what is best for me?" most likely address? (A) Confidentiality (B) Service resilience (C) Customer orientation Which component of trust in a salesperson does a buyer's question "Can you and your company back up your promises?" most likely address? (A) Customer orientation (B) Likability (C) Service resilience (D) Dependability Bill, a sales representative at a home appliance store, is trying to convince a customer to purchase a particular refrigerator. The customer is confused with so many options available and cannot decide which one to buy. Following traditional selling methods, which of the following should Bill do? ( (C) He should close the sale as quickly as possible, using whatever means possible Salespeople who always do what they say they will do earn the trust of buyers because buyers perceive them as being: (A) dependable. Susan is hired as salesperson in a jewelry store. Being new to this industry, she does not possess a great deal of knowledge about the products offered by her store. She is often asked questions by customers to which she does not know the answer. However, she always responds to them by saying, "I will check with my store manager and get back to you." By being up-front with her customers, Susan exhibits: (D) candor. Ravi is a sales representative at a sports equipment company. He has a keen interest in tennis and often organizes matches with some of his customers on weekends. By doing so, he has befriended a number of his clients. Given this information, it is evident that Ravi gives high priority to _____ in the buyer-seller relationship. (A) compatibility Robert is a young college graduate who is looking for a sales job in the pharmaceutical industry. In order to better his chances of being selected by employers, he decides to enhance his knowledge of the latest medications in the market. In this scenario, it is evident that Robert is trying to enhance his _____. (A) industry knowledge Nora, a salesperson working with Fifth Leaf Fashions, informs her customers that they can return garments within 30 days of purchase in return for cash. However, the Fifth Leaf Fashion's return policy states that customers may only exchange the returned garments for other garments and not cash. In this scenario, it is evident that Nora needs to improve her _____. (A) industry knowledge (B) company knowledge A salesperson should be familiar with his or her company's key personnel from other departments. This helps: (A) determine the company's human resources policies. (B) build team spirit when the salesperson needs help in meeting a customer's needs. A salesperson's service mission is to: (D) provide added value for a customer. Rita has recently been hired as a sales representative at a grocery store. As part of her training, her store manager asks her to memorize the discounts offered by the store during the Christmas season. In this scenario, the store manager wants to enhance Rita's _____. (A) promotion knowledge Which of the following knowledge tools must a salesperson use to answer the question "Can the salesperson give additional discounts to get a potential client whom the company has been after for years?" (A) Price knowledge Milton is the sales manager of a cosmetics company that offers a wide range of face creams, lipsticks, and eye makeup. Some of the products are sold to wholesalers and distributors, while others are sold directly to end-users. Milton decides to divide his company's vast customer base into distinct segments so that the company's salespeople can specialize in one line of business only. To carry out this process, it is necessary for Milton to possess sound _____. (E) market knowledge A salesperson needs to use his or her _____ to answer a buyer's question, "How do your company's prices compare with others in your industry?" (A) technology knowledge (B) promotion knowledge (C) customer knowledge (D) competitor knowledge Which of the following statements is true of ethical standards? (A) Ethical standards are not influenced by a person's code of conduct. (B) Ethical standards for a profession are based on society's standards Jim, an inexperienced salesperson, informs one of his potential customers that the laptop he is selling has a much faster processing speed than the competitor's. This is not true. The customer, however, remains unconvinced and does not make a purchase. Jim's behavior is considered unethical because he: (D) exaggerates the benefits of his product _________ is a knowledge tool that salespeople must possess to explain their firms' advertising programs.Answer : Promotion knowledge _________ is taken to mean that a buyer relied on a seller's statements in making a purchase decision.Answer : Basis of the bargain CHAPTER 3 A business buyer's purchase process ends with: (A) performance feedback and evaluation. Allen and Spade, a firearms manufacturer, has received a new order for customized hand guns. The company understands that the production of this order will require a new set of machinery. With the help of its engineers, the company has figured out the specifications of the machinery required. Now, the company should begin: (A) evaluating the performance of the new machines compared to the old ones. (B) searching for machine manufacturers. Allied Co., a technological firm, requires new data servers. Based on the specifications provided by its engineers, Allied Co. has acquired tenders-from several different companies-for the required number of servers. Now, the company should begin: (A) evaluating proposals from server providers. . Chindanel Hotels, a chain of luxury hotels, wants to install new security systems in all of its franchises. Based on the specifications provided by Chindanel, a few companies have submitted tenders to acquire the contract. Chindanel Hotels has shortlisted one company and has decided to give the contract to it. Now, Chindanel Hotels should begin: (A) acquiring proposals from security system manufacturers. (B) identifying the faults in the existing security system. (C) evaluating performance of the new security systems compared to the old ones. (D) selecting an order routine of the security systems Jason was all set to go home after his day of work. As soon as he stepped out of the office building, it started to rain. Jason wished he had an umbrella, as he walks to and from work, and now he cannot get home without getting drenched in rain. Jason's need of an umbrella is a _____. (A) social need (B) situational need Sarah recently bought a bicycle. After a few days of cycling, she realized that she needs a basket attached to the bicycle in which she could keep her bag and other articles while cycling. Sarah's need of a basket is a _____. (A) social need (B) situational need (C) knowledge need (D) functional need Which of the following is a difference between situational needs and social needs? (C) Unlike social needs, situational needs are a result of conditions related to the specific environment, time, and place. Which of the following is a difference between functional needs and psychological needs? (A) Unlike functional needs, psychological needs are a result of conditions related to the specific environment, time, and place. (B) Unlike functional needs, psychological needs reflect the desire for feelings of assurance and risk reduction Which of the following strategies leads to an effective sales presentation? (C) Altering the buyer's beliefs about the proposed offerings when the buyer underestimates the product Jamie is a salesperson making a sales proposal to a potential customer. During the presentation, she learns that some of the attributes of her product offering will not be able to maximize the buyer's evaluation score when compared to a competitor's offering. Which the following is probably the best strategy for Jamie to follow?. (C) She should attempt to explain to the buyer that the characteristics on which her product scores low are not really important. If a buyer is evaluating a sales offering on its eagerness to satisfy, the buyer is assessing the sales offering on the basis of a _____. (A) psychological attribute Low-assertive individuals tend to: (A) control situations. (B) be deliberate in their communication. In the context of communication styles, _____ are low on responsiveness but high on assertiveness. (C) drivers While selling to amiables, salespeople should adopt a _____ type of communication style. (E) relationship-oriented and slow-paced While selling to drivers, salespeople should adopt a _____ type of communication style (D) task-oriented and fast-paced In the context of the buying process, a _________ refers to the perceived difference between a buyer's desired and actual state of being.Answer : needs gap The final phase in the buying process is the _________.Answer : evaluation of performance and feedback CHAPTER 4 The purpose of trust-based sales communication is: D) to reach an understanding between the buyer and the seller In the context of sales communication, which of the following is an advantage of having effective trust-based sales communication skills? (B) They allow salespeople to identify buyers' needs and accurately convey proposed solutions. . Which of the following is an example of an open-end question? (C) How do you currently assess the performance of your suppliers? . Which of the following is true of open-end questions? (E) These questions are designed to let customers respond freely and encourage the customer's thought processes Which of the following is an example of a closed-end question? (C) Is this the primary reason you are interested in switching suppliers? _____ are designed to penetrate below generalized or superficial information to elicit more articulate and precise details for use in needs discovery and solution identification. (A) Evaluative questions (B) Multiple-choice questions (C) Probing questions The question "That sounds like an important issue, could you give me an example of what you mean?" is an example of which of the following types of question? (A) Evaluative questions (B) Probing questions Which of the following types of questions is used to uncover prospects' perceptions and feelings regarding existing and desired circumstances and potential solutions? (A) Evaluative questions Which of the following types of questions will be used by a salesperson to change topics when proceeding on a forbidden or nonproductive line of questioning? (D) Tactical questions Which of the following best describes the purpose of the SPIN (situation questions, problem questions, implication questions, and need-payoff questions) questioning system?To encourage buyers to disclose personal and business information (B) To uncover a buyer's inherent problems According to the SPIN questioning system, _____ are used early in a sales call and provide salespeople with leads to develop the buyer's needs and expectations fully. (D) situation questions According to the SPIN questioning system, "Do you use telemarketing or mobile marketing?" is an example of a(n) _____ question. (D) situation Talking with the customer rather than at the customer is the basis of _________.Answer : trust based sales communication CHAPTER 5 Steve is a salesperson for the Cloud Nine Corporation. His territory includes 50 established accounts which he calls on regularly. Although Steve is supposed to allocate some time to prospecting, he prefers to call on his existing accounts. Which of the following is most likely the reason why Steve resists prospecting? (A) He is afraid of rejection. Sandy is a salesperson who has trouble prospecting effectively. Approximately 80 percent of the leads she contacts do not end up making a purchase, for various reasons. Sandy would likely not have wasted so much of her time if she had collected more information about those leads. Sandy is probably having trouble: (A) communicating with her leads. (B) preparing a sales dialogue. (C) qualifying her leads. Craig is a salesperson for an industrial equipment company. Craig calls on factories and spends most of his time talking with equipment operators who work on the factory floor. While Craig is able to get the equipment operators interested in his products, he is often unable to make a sale. In this scenario, Craig needs to: (A) identify the people with the authority to make the purchase decision. Which of the following is true of cold canvassing? (A) It occurs when salespeople call prospects unannounced. Which of the following methods of prospecting is considered to be very inefficient? (A) Electronic networking (B) Trade shows (C) Cold calling Pete is a salesman who is a member of The Green Stones Country Club. The club is frequented by lawyers, doctors, and other members of the community. Pete will often identify new prospects while striking up conversations with the club members. Pete uses the club members as _____. (A) commercial sources (B) referrals (C) noncompeting salespeople (D) advertising inquiries (E) centers of influence In which of the following prospecting methods do salespeople ask potential customers to fill out information cards indicating interest in their company or one of its products? (A) Centers of influence (B) Outbound telemarketing (C) Trade shows The focal point of a prospecting plan should be: (A) the goal stating the number of qualified prospects to be generated. In a strategic prospecting plan, which of the following is a reason for salespeople to set aside time for prospecting? (A) It helps prevent other activities from creeping in and displacing prospecting activities. A _____ is a part of the strategic prospecting plan that records comprehensive information about a prospect, traces the prospecting methods used, and chronologically archives outcomes from any contacts with the prospect. (A) tracking system Which of the following states the significance of evaluation in a prospecting plan? (D) Continuous evaluation should be employed to ensure that a salesperson is meeting prospecting goals and using the most effective prospecting methods. Which of the following is the basic objective of sales prospecting? (E) To provide salespeople with a list of prioritized sales prospects A(n) _________ is an individual or organization that has a need for the product or service, has the budget or financial resources to purchase the product or service, and has the authority to make the purchase decision.Answer : sales prospect A salesperson's plan for gathering qualified prospects is called a(n) _________.Answer : strategic prospecting plan