Test 3 Flashcards
(28 cards)
When Should Personal Selling be Used?
Technical products, difficult to use. Something considered high risk like certain types of investments.
Examples of Jobs in Sales
Sales creep real kolas today
Sales managers, consultants, representatives, key account managers, technical specialist
The Seven Steps of Personal Selling
PPAPHGF
Pansy people annoy people having good fun.
1.Prospecting
2.Pre-Approach
3.Approach
4.Presentation/Sales Pitch
5.Handling Objections
6.Gaining commitments
7.Follow Up
What is SPIN
Situation - What is going on
Problem - What are the challenges
Implementation - What effect does this have
Needs Payoff - How can this help you/customer
How does Technology Play a Role in Personal Selling?
CRM, Analytics, AI, Social Selling (networks)
Key Components on Sales Force Management
The Force
Size, area, generalist vs. specialist, compensation and incentives, recruitment (selection and retention), motivation (training and performance appraisal)
What is special about Walmart Retail link?
Connects suppliers and manufacturers in real time to Walmart inventory levels and sales.
Push vs Pull Strategy
Push - manufacture, then try to sell.
Pull - Only make or buy when need by a customer
Major categories of Inventory costs
Oh opposing cars. OOC
order costs (including freight inwards), opportunity (stock out costs), carrying costs (financing, staff, storage space including insurance, heating and colling)
Key Warehouse Functions
RP PS
Receiving, putting away, picking, and shipping
Major transportations
Water - Inexpensive, slow
Air - Fast, slow
Road - Cheapest, accident is more likely
Rail - can carry a lot, huge investment
Cyberspace - Data protection, high cost
Pipeline - carry alot, not environmentally friendly
How does ISO14001 effect supply chain
Products and transportation must meet environmental standards for recycling, energy efficiency, hazardous waste, energy efficient transportation
What are the objectives of pricing?
Maximize the profit (highest price and volume)
Price Elasticity
Price sensitivity. Elastic - demand changes. Inelastic - demand barely changes.
Break even analysis, how does this impact pricing?
How many units must be sold before a business makes a profit. (SP-vc)(*units-FC) = NP
Underpricing
Pricing less than what a consumer is willing to pay
Context of rising prices. What do we mean by unbundling and shrinkflation?
Unbundling - separating out product and services. Customer only pays for what they want.
Shrinkflation - Reducing the SIZE of the product, while only increasing the price nominally.
Pricing Strategies
MOP LSP PS
Markup Price - Cost plus
Odd Even - Selling at 1.95 instead of 2.00
Prestige - Selling for a high price as a sign of exclusivity
Loss Leader - Selling product at a loss, to bring in more business and make profits on other products
Seasonal Discounts - Selling winter or summer products at discount at end of the season
Price Bundling - Adding several products and or services together
Penetration - Initial low price to get into market
Skimming - Charging higher initial price when product is new and supply is limited and customers willing to pay a premium.
Dynamic pricing, predatory pricing, price fixing, price discrimination
DP - Prices change during the day, as demand changes
PP - Initial low pricing to put other out, then raise prices
PF - Colluding to set prices in a region or market
PD - Different prices for different consumers
Black vs Grey Market
Black - Trading is illegal
Grey - Have not used authorized import agents
Role of WTO and NAFTA and the key issues
WTO - regulates trade, preventing excessive tariffs ensuring free trade, prevent dumping.
NAFTA - North American Free Trade Agreement regulates tariffs between US, Canada, and Mexico.
What is the difference between depth and breath, business versus product franchises, corporate vs voluntary chains?
Breath - Variety of product Depth - Number of different brands
BF - How the bus or product sell the product Exxon - gasoline
Corporate - all owned by one company
Cooperative - work together
Voluntary - Can choose to use common suppliers product.
Examples of Retailers
Fulline Discount: Walmart
Specialty Discount: Dicks
Supermarket: Hannaford’s
Warehouse Club: Sams
Convenience Store: Pop type store
Departmental: Macys
Off Price: TJ Maxx
Closeout Chain: Mardens, Big lots
Online: Amazon
TV: HSN
Automated Vendor: Best Buy at airports
Three common Store locations
CBD, mall shopping center, stand alone, (airport, college)
