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Flashcards in New Materials pt.2 Deck (18)
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1

What does ZOPA stand for? Draw a figure that explains a negotiation with both a ZOPA and negative ZOPA

Zone of Possible Agreement. (Pictures)

2

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.

3

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

4

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

5

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

6

Define relational and strategic partnerships

Relational-
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

Strategic-
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

7

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


8

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

9

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
Training
Rewards

10

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

11

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

12

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.

13

Define preferred supplier.

Preferred supplier: One who is assured of a large percentage of the buyer’s business

14

What are examples of hard and soft savings?

Hard 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


Soft savings
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

15

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

16

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

17

What is the 3x3 strategy we discussed in class?

3x3 strategy: have three personal relationships at three levels of the organization (9 total relationships)

18

What are three things that a salesperson can do to avoid complacency?

Ensure paperwork is done accurately and in time

Keep a record of promises made

Follow up on customer requests and deliveries promptly