ABM 22 Final Exam | ABM 222 - Agribus/Food Ind Sales (W), Quizzes of Agricultural engineering

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Three Types of Sales Goals

1. Performance (outcomes)2. Activity (behavioral)3. Conversation (efficiency) TERM 2

Setting Goals

DEFINITION 2 S.M.A.R.TSpecificmeasurableattainablerealistictimely TERM 3

Dissolution

DEFINITION 3 Can happen naturally though market changes or preferences of the parties or due to:1. limited personal relationships2. Failing to monitor competitor3. complacency TERM 4

Commitment

DEFINITION 4 occurs when there is an implied pledge to continue the relationship for the mutual benefit of both parties TERM 5

Expansion

DEFINITION 5 Expanding your share in the business

Exploration

Development of expectations for each party TERM 7

Building Trust (5)

DEFINITION 7 dependabilitycompetencecustomer orientationhonesty and sinceritylikability TERM 8

5 Phases of Building a Partnership with a

Client

DEFINITION 8 Building trustexplorationexpansioncommitmentdissolution TERM 9

5 Rules of Negotiating

DEFINITION 9 never negotiate in terms of me, me, me.be specificnever ask "no" questionsavoid direct disagreementsell from the end TERM 10

Win-Win Negotiating

DEFINITION 10 negotiator attempts to secure an agreement that satisfies both parties

Mark-Up Percentage

Same as gross margin %. Estimated percentage value added to the cost of the goods to arrive at the selling pricemark-up dollar/COGS TERM 12

Mark-Up

DEFINITION 12 Same as margin dollars. Dollar added to the COGS to arrive at the selling priceSelling Price-COGS TERM 13

Selling Price

DEFINITION 13 amount the retailer charges for the productCost of good + mark-up TERM 14

Cost of Goods Sold

(COGS)

DEFINITION 14 how much of the retailers money is invested in inventory.Quantity x cost per item TERM 15

Payback

Period

DEFINITION 15 the length of time it takes for the investment cash outflows to be returned in the form of cash inflowsinvestment / annual profit or savings

Strategies for Making Concessions

1. Label the concession2. Demand and Define reciprocity3. Make contingent concessions4. Make concessions in installments TERM 17

Win-Lose Negotiating

DEFINITION 17 negotiator attempts to win all of the important concessions and triumph over the opponent. TERM 18

Value-Benefit Equation

DEFINITION 18 (value(s)) - cost(s)) > (value(A) - cost(A)) TERM 19

Cost Out of Stock

DEFINITION 19 amount of profit loss due to insufficient supply to meet demand TERM 20

Strategic Profit Model

DEFINITION 20 breaks down the resellers cost and investment to show the trade-offs resellers can make between profit margin and inventory turnover.

Category Management

partnership only at the marketing communications level.It focuses primarily on merchandising, advertising, and promoting product in and with the store. TERM 22

3 Questions

DEFINITION 22 How much will it sell?At what profit will it sell at?Gross Margin ROI? TERM 23

Reseller Buying Considerations

DEFINITION 23 Net salesCOGSGros Profit MarginNet Profit MarginInventory TurnoverGross Margin ROI TERM 24

Roles of Resellers in Distribution Channel

DEFINITION 24 provide an assortment of products or servicesbreaking bulk items: Ag bulk itemsholding inventory: keeping product on handprovide service: credit, product TERM 25

Characteristics to Display When

Closing

DEFINITION 25 confidencelet prospect set the pacebe assertive, not aggressive or submissivesell right amount/itemprepared to execute the "details" after the closebuild up close w/dominant buying urge

When to Use a Trial Close

when you have determined the willingness to buy TERM 27

When to Close

DEFINITION 27 anytime the buyer is readyafter a successful trial closeafter a successful close TERM 28

Define

Closing

DEFINITION 28 The point in the sale in which you are able to accomplish your sales call goals. does not always mean a sale. TERM 29

Traits and Behaviors of Successful

Salespeople

DEFINITION 29 develop/maintain a positive attitudecommit to always tell the truthanticipate objections and prepare helpful response.relax and listen and never interrupt the buyeraddress known problems before the buyer doesmake sure objection is not an excuseempathic TERM 30

Feature; Benefit

DEFINITION 30 Feature: what a product hasBenefit: what the features mean

Personal Selling

An interpersonal process during which the seller uncovers and satisfies the needs of a buyer to the mutual long term benefit of both parties TERM 32

Characteristics of Successful Salespeople

DEFINITION 32 self startersuse time efficientlymotivated to learndependable and trustworthyethicalhave product knowledgegood communicatoradapt to their customerhave emotional intelligence TERM 33

Disadvantages of Salespeople

DEFINITION 33 limited supervisionpotential conflict between customer and company demandsdepression from loss of salediscomfort from asking customers to buynegative stereotypes TERM 34

Advantages of Salespeople

DEFINITION 34 compensate potentialchallengeresponsibilityflexibility in work activitiesrewards from making a tough salelearning the business from the bottom-upopportunity for senior management TERM 35

Sales Organization is Made up of:

DEFINITION 35 sales supportsales executivesfield sales managersales rep

Selling Internally

process does not stop with the customer or prospect. convey the needs of the customers and prospects to people within your organization TERM 37

Presentation Process Steps (3)

DEFINITION 37

1. Summarize problem2. Outline solution3. Present selling points TERM 38

Steps in Preparing to Respond to Objectives:

DEFINITION 38 Positive attitudeanticipate objectionslistenconfirm objectionsdecide on method of responserespondsecure agreement TERM 39

Steps in the Sales Process (7)

DEFINITION 39 prospectingpreparing/planning sales callopening, probing, listeningpresentation of features and benefitshandling objectionsthe closingservice and follow-up TERM 40

What to Consider when Selling to

Resellers:

DEFINITION 40 net salesselling historymarket share

The Need to Probe

there is an underlying reason for every customer need, and the salesperson must continue probing until he or she uncovers the root problem "Finding the need behind the need" TERM 42

Making Selling Points

DEFINITION 42 loaded with features and benefits. present features and explain its importance TERM 43

Direct Denial

DEFINITION 43 strong statement indicating an error was made. generally used for rumors or misinformation TERM 44

Consideration or Admission

DEFINITION 44 agree with the objection, but show the net benefits outweigh the objection. Effective with analyticals TERM 45

Feel-Felt-Found

DEFINITION 45 show how others had similar views before trying the product

Pass-Up

Let the buyer talk, acknowldge, pause, and move onto another topic. Used when the buyer just wants to vent frustration. Do not use if the objection is false. TERM 47

Post-Pone

DEFINITION 47 ask permission to address it later in the presentation. Good for early price objections TERM 48

Direct Request

DEFINITION 48 simply ask for the order. works well decisive customer drivers. TERM 49

Benefit Summary

DEFINITION 49 Recap all major points of the presentation. highlight the benefits made. especially useful in complex sales. ask for the sale at the end. TERM 50

Balance Sheet Method

DEFINITION 50 list the pros and cons of buying from you. helps those who have a tough time making up their mind. Takes time and may create more confusion

Resellers

increase the value of the products and service they sell to the end user