Flashcards in New Materials pt.2 Deck (18)
What does ZOPA stand for? Draw a figure that explains a negotiation with both a ZOPA and negative ZOPA
Zone of Possible Agreement. (Pictures)
Define and provide an example of BATNA. What does BATNA stand for?
At your ‘worst case’ point, you can opt out of the negotiation and select your BATNA (also called a reservation point)
"Best alternative to negotiated agreement"
Ex.) You need tools for a project. You have 2 meetings, the first one already provided you with a fair price. You go into the second meeting trying to get a lower one but if he offers you a higher one then you just fall back on the first one.
List and define the five conflict-handling behavior modes we discussed in class.
Competing mode: Assertive and uncooperative
Pursuing own goals and objectives at the expense of the other party
Accommodating mode: Unassertive and highly cooperative
Focus on the needs and desires of the other party
Avoiding mode: Refers to individuals who do not attempt to fulfill their own needs or the needs of others
Do not strive for a win-win agreement or any agreement
Compromising mode: Applies to people in the middle, in terms of cooperativeness and assertiveness
Attempts to arrive at a win-win solution
Collaborating mode: Individuals who are both assertive and cooperative
Seek to maximize the satisfaction of both parties
Define behavioral loyalty and attitudinal loyalty
Behavioral loyalty: Purchase of the same product from the same vendor over time
Attitudinal loyalty: Emotional attachment to a brand, company, or salesperson
Define solo exchanges and functional relationships. What is the difference between the two?
Solo exchanges: Both the buyer and the seller pursue their own self-interests
No future business, one-time sale
Functional relationships: Long-term market exchanges characterized by behavioral loyalty
Define relational and strategic partnerships
Buyer and seller have a close personal relationship.
Marked by open, and honest communication
Partners trust each other and don't worry about small details
not necessarily strategic but provides flexibility
Long-term business partners
Partners make significant investments to improve the profitability of both parties
Partners have gone beyond trusting each other
Partners get strategic advantage
Created for uncovering and exploiting joint opportunities
What are the five phases of relationship development? Define each.
Awareness- Salespeople locate and qualify prospects
Exploration- Exploring potential benefits and costs of a partnership
Expansion- Involves efforts by both parties to investigate the benefits of a long-term relationship. Both parties is to develop the appropriate type of relationship
Commitment- Customer and seller implicitly or explicitly pledge to continue the relationship for a period of time. Most advanced stage of the relationship. Investments are made at this stage. Involves promises by buyer and seller to work over many transactions
Dissolution- Process of terminating the relationship. Poor performance. Clash in culture. Change in needs
Loss of investments impacts both organizations
Define customer orientation
Degree to which salesperson puts customer needs first
Stressing benefits and solutions to problems over features
Emphasizing the salesperson’s availability and desire to provide service
Define boundary spanning employees. What are three things that managers may do to support these employees?
Boundary spanning employees: Employees who cross the organizational boundary and interact with customers or vendors
Structure and culture
How has the buyer-supplier interface changed over time?
Used to have a salesperson to singular buying contact
Now people at all ends could be contacted
What is an electronic data interchange, and how is it useful?
Electronic data interchange: Automatic placement of orders by having one’s computers talk to customers’ computers.
Ensure proper initial use of product or service
What is the number one thing we discussed when handling irate customers?
Follow the golden rule- Treat your customers how you would like to be treated, no matter how difficult. Empathy.
Define preferred supplier.
Preferred supplier: One who is assured of a large percentage of the buyer’s business
What are examples of hard and soft savings?
Payment terms - Cash discounts
Improve process - Cycle time reduction (shorter order/delivery cycles)
Vendor inventory management
Quality and innovation
Supply chain management - Optimum packaging that reduces shipping costs
Global initiatives - Access to new markets
Improve process - Safety and environmental procedures
Quality and innovation - Training
Supply chain management - Bar coding, reduces shipment processing time
What are champions and how can they be beneficial in a sales situation?
Champions: Work for the buying firm in areas affected by proposed change, advocates for the salesperson
Work with the salesperson to make the proposal successful
May be managers/senior managers with the buyer’s firm
Champions can be found within your organization as well
What is complacency, and what are two reasons why a relationship might move to dissolution?
Complacency: Assuming that the business is yours and will always be yours
Limited personal relationships
Failure to monitor competitor’s actions or the industry
What is the 3x3 strategy we discussed in class?
3x3 strategy: have three personal relationships at three levels of the organization (9 total relationships)