AGEC 315 - Texas A&M University



AGEC 315

Exam 2 Review - Fall 2002

Chapters 6,9,10,11,12,13

This is a study sheet containing the highlights from each of the above chapters. Questions on the exam will require you to fully understand both the principles behind each of the highlights and the correlation between them. Be aware that there may be topics on the test that have not been directly addressed in this study guide. It is important to study all class notes and read the assigned chapter in the text in order to fully prepare for the exam.

In order to help you in your preparation for this exam, we have placed two past exams on the web. It would be beneficial for you to study these exams. However, do not memorize the answers to individual questions, as they or the structure of the question may be different.

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CHAPTER 6:

_ Sales and Marketing process is about CREATING PERCEIVED VALUE in customers mind. The total benefits must outweigh total costs.

_ Intangible Values - can be hard to manage

−Includes: emotions, pride, prestige, status, etc.

_ Tangible Values- Concrete, easy to measure.

_ Performance of product must exceed at least the minimums that is acceptable

_ Price- Most perceive it as negative, but it can be neutralized if the

customer perceives the value received is greater than the price paid. As long as the price is Afair@ that is what=s most important.

_ Negative reaction to costs can be decreased by Aspreading@ them across

Time (eg. what is the cost per month for three (3) years?)

_ Value Levels 1-4 not important

CHAPTER 9.............................

_ Prospecting- Identifying new potential accounts.

_ All prospects are not equal.

_ Understand the role of prospecting.

_ Know the 5 rules of successful prospecting.

1. Prospecting plan must help achieve sales goal.

2. Study market to know what is changing and identify high potential customers.

3. Use variety of prospecting methods.

4. Prioritize your prospects.

5. Develop a system for profiling prospects.

_ Know and be able to describe:

1. Market Segments

2. Penetration

3. Concentration

_ How do you prioritize your prospecting list.

_ Be able to identify sources of prospects.

_ Customer information database system.

CHAPTER 10:

_ Overall Planning ProcessCKnow how the planning process flows from Long Term Sales Goals to Long Term Selling Strategy to Sales Call Objective and finally to Sales Call Strategy.

_ KEY ACCOUNTCAll accounts are not of equal importance.

_ Understand the role of the KEY ACCOUNT in you selling success.

_ Understand the KEY ACCOUNT strategy:

1. Sales goals.

2. Account=s key business goals.

3. How to acquire and/or maintain their business.

4. Personal relationships.

5. Salesperson=s plan for staff resources.

_ Selling Cycle: Understand the difference between it and buying cycle.

_ The selling cycle is the inverse of the buying cycle.

_ As a salesperson you should Aunder-promise and over-deliver.@

_ Every sales call should have a specific objective. (SMART)

_ S B SPECIFIC

_ M B MEASURABLE

_ A B AMBITIOUS

_ R B REALISTIC

_ T B TIME

CHAPTER 11:

_ Understand the power of personal relationships - they are the basis for sales

_ Fist Impressions are long-lasting and hard to change.

_ Factors that affect the sales call opening??

_ Industry/salesperson=s personality/customer=s personality

situation/timing/product

_ What are the 5 goals that need to be accomplished in a sales opening?

1. Create a positive first impression.

2. Get the prospect=s attention.

3. Arouse their interest.

4. Build rapport.

5. Bridge to a discussion of needs.

_ Etiquette rules for meeting new people - respect their Aworld@

_ Know how you build rapport.

_ Behavioral Styles:

1. Dominance

2. Influence

3. Steadiness

4. Compliance

_ Know the different types of openers and the pros and cons associated with each of them.

1. Standard Approach

2. Direct

3. Gift

4. Compliment

5. Arouse Interest

6. Referral

7. Mystery

8. Startling Statement

_ Remember that you DO NOT CHOOSE your opener based on what works best only for your personality, the CUSTOMER=S personality is of upmost importance

*** Expect questions that relate to your sales project.

CHAPTER 12:

_ What is probing? - Uncovering needs of customers and their buying processes.

_ What is probing used for and how so you successfully probe?

_ Most successful sales people stay away from high pressure tactics. Their job is to understand business needs as well as personal needs.

_ What are the 4 different types of questions:

1. Closed

2. Open

4 Clarifying

5 Confirming

_ Understand how and when to use each type of question.

_ Know the different areas to probe and the subsequent specifics of each area.

1. How the buying decision is made.

2. Business or production goals.

3. Relevant business or production practices

4. Expectations

5. Current loyalties.

6. Unmet needs and unmet expectations.

_ Question flow. - How do you EXPECT your questions to flow? (They will actually

_ go differently)

_ Effective Listening Involves:

_ Listening to everything they say.

_ They way they say it.

_ Observe non-verbal cues.

_ Listening for facts, feelings and non-verbal cues.

CHAPTER 13:

_ Know the 4 steps in making a selling point.

1. Feature -choose features carefully

2. Benefit

3. Evidence

4. Agreement

_ It is not necessary to sell all features, only the relevant ones.

_ FEATURE: Fact or Data about the product. Tangible. Can be seen or touched.

_ BENEFIT: Result of feature; how it helps.

_ EVIDENCE: Testimonials, Cost/Benefit Analysis, Trials, Demos.

_ CUSTOMER BUYS BENEFITS NOT FEATURES!!!!

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