AGEC 315



AGEC 315

Exam I Review

Chapters 1-6

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 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 print and study these exams. However, do not memorize the answers to individual questions, as they or the structure of the question will be different.

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CHAPTER 1:

• Understand Business to Business Selling and how it differs from Consumer and/or Retail Selling.

• What is the role of selling in a business?

CHAPTER 2:

• Characteristics of a good salesperson.

• Understand the different parts of the Value Bundle and how it benefits your customer.

• “Selling is a Profession.” Know the characteristics of professional selling:

1. Common Language

2. Systematic Procedures

3. Body of Knowledge

4. Set of Principles

5. Code of Ethics

• Dr. Litzenberg’s two part ethics test.

• Be able to differentiate between Direct and Indirect Responsibilities of Salespeople.

• Be able to describe and explain the differences between the Levels of Selling.

• Selling in the traditional distribution channel.

1. Manufacture

2. Distributor

3. Retail or Dealer

4. Producer

• It is important to be able to describe the differences between them and how selling is involved with and between each of the four stages.

CHAPTER 3:

• Understand the benefits/disadvantages of selling as a profession.

• Types of compensation (3) and the associated levels of risk associated with each.

• Challenges of professional selling.

CHAPTER 4:

• Be able to explain the “Economic Exchange Model” how it helps to explain the reason why people buy.

• “Needs Bases Selling”- Remember that needs are relative, not absolute.

• Maslow’s Hierarchy of Human Needs:

1. Self Actualization

2. Self Esteem

3. Social Needs

4. Security

5. Physiological

• Understand the differences between each of Maslow’s levels and how each relates to selling approaches.

• Customers seldom distinguish between Needs and Wants. Therefore the sale will only occur when the customer perceives the total of values exceeds the perceived cost.

• Understand and be able to describe the three types of buyers how each require a different selling approach:

1. Relationship

2. Economic

3. Business

CHAPTER 5:

• The Buying Decision Process (AIATAF)

Steps:

1. Need Recognition (Awareness)

2. Information Search (Interest)

3. Evaluate Alternatives (Alternatives)

4. Choose to Try (Trial)

5. Adoption (Adoption)

6. Follow Up (Follow Up)

• Post Purchase Dissonance

• Customer Loyalty

• Cost

• Loyalty to Salesperson not to Company

• Adoption of Technology- Know the 5 different kinds of adaptors and how it each require a different selling approach.

• Opinion Leaders

• Buying Situations:

1. New Task Buying.

2. Modified Rebuy.

3. Straight Rebuy.

CHAPTER 6:

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

• Intangible Values

• Important

• Can be hard to manage

• Include: emotions, pride, prestige, status, etc.

• Tangible Values- Concrete, easy to measure.

• Performance of product must exceed at leash 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 important, that is the most important.

• Costs can be decreased by:

• Value Levels

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