D099 Sales Management - Set 4 - Part 1

Correct Answer: It assumes customers always purchase on impulse

Unlike the AIDA model, which ends at the point of purchase, the Six-Step Buying Process includes post-purchase activities like relationship building, leading to repeat purchases and long-term customer engagement.

Correct Answer: Focuses on building long-term relationships with customers

Transactional selling is primarily concerned with making immediate sales without focusing on long-term relationships or deep customer engagement.

Correct Answer: Negotiating the best possible price for both parties

Relationship selling is a sales strategy focused on creating long-term relationships with customers by understanding their needs and maintaining ongoing communication.

Correct Answer: Consultative selling

Adaptive selling involves using a sales approach that changes based on the customer's social style, ensuring a more personalized and effective interaction.

Correct Answer: Analytical

Drivers are low in responsiveness but high in assertiveness. They are focused on achieving results and prefer direct, efficient communication.

Correct Answer: Drivers

Amiables are highly responsive and have low assertiveness. They value personal connections and relationships over detailed data or control.

Correct Answer: Focusing on closing sales as quickly as possible

Consultative selling involves becoming a trusted advisor by deeply understanding the customers needs and providing solutions that address those needs effectively.

Correct Answer: The average amount of time a customer remains with a company

CLV represents the long-term value of a customer by predicting the total net profit a company can generate from that customer.

Correct Answer: Amiable

Analytical individuals prioritize facts and data. They are low in responsiveness and assertiveness and are interested in understanding how things work before making decisions.

Correct Answer: They focus on the "who" and appreciate recognition and approval

Expressives are high in both assertiveness and responsiveness, often focusing on relationships, recognition, and social interaction when making decisions.

Correct Answer: People are more likely to purchase if they feel rushed

The Law of Psychological Reciprocity states that when someone gives us something or does us a favor, we feel a strong urge to give something back in return.

Correct Answer: A promise of low prices

The value proposition is the unique benefit or feature that makes a product or service stand out to customers and convinces them to choose it over competitors.

Correct Answer: ROI = (Net profit Total revenue) 100

Return on investment (ROI) is a performance metric that measures the efficiency of an investment, calculated by dividing the net profit by the investment and multiplying by 100 to get a percentage.

Correct Answer: Straight rebuy involves new suppliers, while new task purchases do not

A straight rebuy occurs when a business purchases the same product or service without any modifications, whereas a new task purchase involves buying a product or service for the first time.

Correct Answer: 80% of sales activities result in 20% of the revenue

The Pareto Principle, or 80/20 Rule, states that 20% of a company's customers typically generate 80% of its revenue, highlighting the importance of focusing on high-value customers.

Correct Answer: The total amount of revenue generated in a fiscal year

Sales quotas are specific targets set for salespeople, indicating how much they need to sell within a certain timeframe.

Correct Answer: Transactional selling

Technical selling involves providing detailed product expertise, often for complex or highly technical products, to help customers make informed purchasing decisions.

Correct Answer: A companys plan for selling products

Business intelligence (BI) involves collecting, analyzing, and using data to help businesses make informed decisions, improving overall performance and strategy.

Correct Answer: Managing inventory levels

Big Data Analytics involves analyzing vast amounts of data to uncover patterns, predict trends, and make strategic business decisions based on data insights.

Correct Answer: Lower prices than competitors

A sustainable competitive advantage is achieved when a company possesses assets, skills, or attributes that are difficult for competitors to replicate, ensuring a favorable market position.