Marketing 3000- Final Exam

Personal selling
A purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other
1st advantage of personal selling
Provides a detailed explanation or demonstration of the product.
2nd advantage of personal selling
Sales message can be varied according to the motivations and interests of each prospective customer
3rd advantage of personal selling
Can be directed only to qualified prospects
4th advantage of personal selling
Costs can be controlled by adjusting the size of the sales force
Most important advantage of personal selling
More effective than other forms of promotion in obtaining a sale and gaining a satisfied customer
Relationship selling is also known as
consultative selling
Relationship selling
A multistage process that emphasizes personalization and empathy as key ingredients in identifying prospects and developing them as long-term, satisfied customers
What is the focus on relationship selling?
Building mutual trust between the buyer and seller through the delivery of long-term, value-added benefits that are anticipated by the buyer
Relationship or consultative salespeople become
Consultants, partner,s and problem solvers for their customers
Customer relationship management (CRM)
The ultimate goal of a new trend in marketing that focuses on understanding customers as individuals instead of as part of a group
How was CRM initially popularized?
One-to-one marketing
How are marketers making their communications more specific?
CRM cycle
Two key points of CRM
1) Customers take center stage in any organization
2) The business must manage the customer relationship across all points of customer contact throughout the entire organization
Companies that have CRM systems follow a _________ focus or model
customer-centric
Customer-centric
An internal management philosophy similar to the marketing concept in Chapter 1
What does learning in a CRM environment involve?
Collecting customer information through comments and feedback on product and service performance
Knowledge management
A process by which customer information is centralized and shared in order to enhance the relationship between customers and the organization
When does an interaction occur?
When a customer and a company and a company representative exchange information and develop learning relationships
How can the success of CRM be measured?
The effectiveness of the interaction between the customer and the organization
Following a customer-centric approach, an interaction can occur through a __________ or direct communication channel
Formal
Touch points
In a CRM system, touch points are all areas of a business where customers have contact with the company and data might be gathered
The net promoter score
Measures how much a customer influences the behavior of other customers through recommendations on social media
Point-of-sale interactions
Another touch point in stores or at information kosks
What is the traditional approach for acquring data from customers?
Channel interactions
What do channel interactions include?
Store visits, conversations with salespeople, interactions via the Web, traditional phone conversations, and wireless communications
Is the issue with CRM how much data can be obtained or what type of data should be acquired?
What type of data should be acquired
What is leveraging customer information?
When you data mine then tailor design marketing strategies
Improving customer retention by a mere 2 percent can decrease costs by ____
10 percent
Campaign management
Involves montiroing and leveraging customer interactions to sell a company’s products and to increase customer service
When a company retains an additional 5 percent of its customers each year, profits will increase by ______
25 percent
Sales process is also known as the
sales cycle
Sales process
The set of steps a salesperson goes through to sell a particular product or service
True or false: The sales process or cycle can be unique for each product or service
True
Seven steps in the personal selling process
1) Generating leads
2) Qualifying leads
3) Approaching the customer and probing needs
4) Developing and proposing solutions
5) Handling objections
6) Closing the sale
7) Following up
The final step in the sales process is…
Following up
Follwoing up lowers
Cognitive dissonance
True or false: Traditional selling and relationship selling follow the same basic steps
True
How do traditional selling and relationship selling differ in relation to the sales process?
The relative importance placed on key steps in the process
Traditional selling efforts are ________ oriented
Transaction
Step 1: Lead generation is also called
Prospecting
Lead generation
the identification of those firms and people most likely to buy the seller’s offerings
Referall
A recommendation from a customer or business associate
Referrals are typically as much as _____ times more productive in generating sales than cold calls
10
Networking
Using friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations to identify potential clients
Step 2
Qualifying leads
Qualifying leads
When a prospect shows interest in learning more about a product, the salesperson has the opportunity to follow up (or qualify) the lead
Qualified leads are
Real prospects who answer questions, value your time, and are realistic about money and when they are prepared to buy
Lead qualification involves determining whether the prospect has 3 things:
1) A recognized need
2) Buying power
3) Receptivity and accessibility
Preapproach
The “homework” that must be done by the salesperson before contacting the prospect
In a needs assessment, the consultative salesperson must know everything there is to know about
1) The product
2) Customers and their needs
3) The competition
4) The industry
Sales proposal
Written document or professional presentation that outlines how the company’s product will meet or exceed the client’s needs
Sales presentation
The formal meeting in which the salesperson has the opportunity to present the sales proposal
Quota
A statement of the salesperson’s sales goals, usually based on sales volume alone but sometimes including key accounts, new accounts, repeat sales, etc
Compensation planning is one of the sales manager’s _____ jobs
toughest
_______ are one of the most rapidly adopted consumer technologies in history
Tablets
Social commerce
Combines social media with the basics of e-commerce. Example, Pinterest
The bulk of the marketing budget goes to
Search marketing and display advertising
Social media budget in marketing went from 19% in 2011 to _____ in 2016
35%
Unique consequence of social media
Widespread shift from one-to-many communication to many-to-many communication
Crowdsourcing
Using consumers to develop and market products
First action a marketing team should take when initiating a social media campaign
Listen
Social media monitoring
The process of identifying and assessing what’s being said about a company, individual, product, or brand
After establishing a listening platform, the organization should develop
a list of objectives for its social media team to accomplish
6 categories of social media users
1) Creators
2) Critics
3) Collectors
4) Joiners
5) Spectators
6) Inactives
Corporate blogs
Sponsored by a company or one of its brands and are maintained by one or more of the company’s employees
Noncorporate blogs
Independent and not associated with the marketing efforts of any particular company or brand
Microblogs
Blogs that entail shorter posts than traditional blogs (like Twitter)
Price plays 2 roles in the evaluation of product alternatives:
1) A measure of sacrifice
2) An information cue
Do we infer quality information from price?
Yes
Revenue
The price charged to customers multiplied by the number of units sold
3 categories of pricing objectives
1) Profit oriented
2) Sales oriented
3) Status quo
Proxit maximization
Setting prices so that total revenue is as large as possible relative to total costs
Return on investment =
Net profits after taxes / Total assets
ROI measures management’s overall effectiveness in
generating profits with the available assets
The higher the firm’s ROI,
the better
Firms seek ROIs in the 10 to
30% range
Sales-oriented pricing objectives are based either on
market share or on dollar/unit sales
Market share
a company’s product sales as a percentage of total sales for the industry
status quo pricing
seeks to maintain existing prices or to meet the competition’s prices
price equilibrium
When demand and supply are equal
elasticity of demand
consumer’s responsiveness or sensitivity to changes in price
Elastic demand
a situation in which consumer demand is sensitive to price changes
Inelastic demand
An increase or a decrease in price will not significantly affect demand for the product
Elasticity =
% change in quantity demanded of good A / % change in price of good A
If E in the elasticity formula is > 1, demand is
elastic
E < 1, demand is
inelastic
E = 1, demand is
unitary
unitary elasticity
an increase in sales exactly offsets a decrease in prices, so total revenue remains the same
If price goes down and revenue goes up, demand is
elastic
If price goes down and revenue goes down, demand is
inelastic
If price goes up and revenue goes down, demand is
elastic