Skip to main content

Key Terms

adaptive selling

an approach to personal selling in which selling behaviors are altered during the sales interaction or across customer interactions, based on information about the nature of the selling situation

AIDA model

the model consumers go through when becoming interested in a product. First the product must grab their attention, then they gain interest, they have a desire for the product, and they act to acquire the product

ambiguous terms and conditions

when a contract is unclear and misleading

approach

the stage of the sales process where the salesperson makes the initial approach to introduce the product to the customer

commission

the compensation paid to salespeople based on a fixed formula related to the salesperson’s activity or performance

consultative selling

focuses on the expertise of a salesperson with problem solving

contest

a marketing or consumer sales promotion technique that involves collection, matching, or use of skill to complete a project or activity with the goal of a prize or reward for the player

cooperative advertising

an approach to paying for local advertising or retail advertising whereby the details are handled by a local retail store but is partly or fully paid for by a national manufacturer whose product is featured in the ad

coupon

a printed certificate entitling the bearer to a stated price reduction or special value on a specific product

credit terms

credit terms of the agreement between the buyer and seller with length of time and payments to be made

customer relationship management

the process sales personnel undertake to work with the customer to build the relationship and move into the role of a trusted advisor

formula selling

an approach in which the sales presentation is designed to move the customer through the stages in the decision-making process, such as get the customer’s attention, develop interest, build desire, and secure action

hidden fees

also called undisclosed fees and are fees that are not made known to the buyer

inside order taker

a salesclerk or order clerk that is employed for a company that address questions and complete the final sale

kickbacks

illegal payment for preferential or improper service

lead response time

the activity of evaluating factors through data analytics, demographics, buyer behavior, competitor analysis, and economics

loyalty programs

a form of promotion focused on repeat purchases and frequently attached to a sales receipt, punch card, or stamp card

missionary salespeople

individuals who have the power to influence the customer to purchase a product or service

need/satisfaction format

a type of customized sales presentation in which the salesperson first identifies the prospective customer’s needs and then tries to offer a solution that satisfies those needs

opportunity win rate

the number of sales closed divided by the total number of opportunities created; calculates another opportunity to track sales

order getters

highly trained salespeople who know their products, services involved, and competition across the street

order takers

sales personnel that are responsible for taking orders from customers by identifying the customer and finding the right product fit

outside order takers

salespeople out in the trenches, visiting customers and delivering inventory to retailers and wholesalers

personal selling

communication between a buyer and seller. The primary responsibility is to build a relationship with the buyer.

point-of-purchase displays

displays that allow manufacturers to showcase their products in a way that stands out from all the other products in the store

pre-approach stage

the stage of the sales process where the salesperson will work to understand the needs of the customer and begin working with them to become a customer

premiums

a promotional tool that is often defined in three forms: merchandise offered at a lower price or free; an item of value, other than the product; souvenir merchandise

presentation

the stage of the sales process where the salesperson showcases the features about a product that will be of most benefit to the prospect based on the needs uncovered during the pre-approach and approach stages

prospect

a potential qualified customer who has the willingness, financial capacity, authority, and eligibility to buy the salesperson’s offering

qualification

the process the salesperson undertakes to make sure the sales lead is a good fit for the product they are selling

quantitative assessments

numbers driven and based on inputs and outputs of the sales cycle

rebates

a form of promotion that rewards consumers for sending information to the company

relationship selling

a method of personal selling used to better understand the needs and wants of the buyer

sales force automation

a software tool that helps organizations acquire customers

sales leads

a database of potential customers that sales professionals work to create and develop through lead generation

sales promotion

a short-term way of enticing the consumer to purchase a product or service

samples

providing consumers with a free sample of a product is a form of promotion

selling process

includes all of the steps the salesperson will implement as they work with the buyer to become a customer

support personnel

fulfill the responsibilities that assist the sales team in supporting the customer and completing the sale

sweepstakes

a marketing or consumer sales promotion that involves the offering of prizes to participants, where winners are selected by chance and no consideration is required

team selling

the practice of involving a group of people familiar with the viewpoints and concerns of a customer’s key decision makers to sell and service a major account

technical specialist

a salesperson who has extensive product knowledge and uses this knowledge as the focal aspect of the sales presentation

 

Citation/Attribution

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Attribution information

  • If you are redistributing all or part of this book in a print format, then you must include on every physical page the following attribution:
    Access for free at https://openstax.org/books/principles-marketing/pages/1-unit-introduction
  • If you are redistributing all or part of this book in a digital format, then you must include on every digital page view the following attribution:
    Access for free at https://openstax.org/books/principles-marketing/pages/1-unit-introduction

Citation information

© Dec 20, 2022 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.

No Comments
Back to top