1 ABC A sales acronym standing for always be closing

2 Above the Line Advertising: whereby payment is made and commission is payable to an advertising agency.

Commissionable media are: television, radio, cinema, posters, press and ambient

3 accompaniment report

when a manager or supervisor or trainer accompanies a sales person while working on the sales territory,

usually while meeting prospects or customers. Typically the manager would complete a an accompaniment

visit report on the performance of the sales person, which would be discussed, and suitable followup actions

or training agreed.

4 account

a customer, usually a businesstobusiness organization; a major account is a large organization; a national

account is a customer with branches or sites that constitute a nationwide coverage, which typically requires

special pricing and senior sales attention.

5 Active Listening

This is where the listener aims to understand, not just hear; they can achieve this through concentrating,

asking linked questions, using empathy statements, summarising and use of appropriate body language

such as nodding

6 added value

the element(s) of service or product that a sales person or selling organization provides, that a customer is

prepared to pay for because of the benefit(s) obtained. Added values are real and perceived; tangible and

intangible. A good, reliable, honest, expert, informed sales person becomes a very significant part of the

selling organization's added value, as perceived by the customer, if not by the selling organization.

7 Adoption process A buying process for first-time purchases, particularly for consumer markets and comprising: Awareness,

Interest, Evaluation, Trial, Adoption, Post-Adoption confirmation: similar to AIDA

8 advantage the aspect of a product or service that makes it better than another, especially the one insitu or that of a

competitor.

9 Advertising

A form of promotion whereby payment is made and commission is payable to an advertising agency.

Commissionable media are: television, radio, cinema, posters, press and ambient: also known as above-the-

line promotion

10 Advocate revenue sales influenced by word-of-mouth advertising.

11 Agenta person who acts on behalf of a company or individual to sell its products or services... an agent is typically

compensated on a commission only basis... also see broker

12 Agent

Agents sell to the end customer on behalf of the Principle, who is the owner of the goods so they, in effect as

a sales force. They often do not handle the goods, unless they are stocking agents, and they do not take title,

or ownership, of the goods. They are paid commission on what is sold and so must be highly motivated

13Agree and Counter (Method of Dealing

with Objections)

If the objection is a fact that is correct, yet there can be a benefit to the fact, this is an excellent way of

overcoming it; it is one of the most common methods for dealing with an objection. It shows that the

salesperson is honest and empathetic yet turns the problem to a potential advantage. An example is if the

prospect says the product is too expensive: the salesperson can point out it is more expensive than many

competitors (agree) but the superior quality of materials means that it will last longer giving the prospect

long-term peace of mind and long-term value

14 AIDAsales process acronym... attention, interest, desire, action... "get the prospect's attention, gain their interest,

create desire and encourage them to act by moving forward with the purchase."

15 AIDA Attention, Interest, Desire, Action: a model describing the stages that promotion can take a target audience

through: is often used to set promotional objectives

16 Alternative Close

The alternative close is similar to the assumptive close but the sales person offers the buyer two options for

example, asking whether the buyer would like the product in black or white prior to the buyer saying they

intend to purchase the product. This technique needs to be used carefully.

17 Ambient Media Originally known as 'fringe media'. New types of advertising media that surround us in our daily lives,

including: petrol pump advertising projected onto buildings, on car parking tickets, cricket pitches

18 ambush marketing

the act of marketing a product or service in conjunction with an event or other brand without paying for the

right... typically used when an official sponsorship opportunity is available but a company doesn't wish to

pay the fee for the sponsorship or another company has already purchased the sponsorship.

19 Ansoff Matrix

A model showing the possible product-market strategies of an organisation; these are considered the main

marketing strategies and comprise: market penetration, product development, market development and

diversification. The 2 x 2 matrix axes are: new and existing products along one axis and new and existing

markets along the other

20 AOSTIC A business planning acronym standing for: Analysis, Objectives, Strategy, Targets, Implementation and

Control – now often expanded to MAOSTIC, see relevant section

21 Appointment a personal sales visit to a prospect, usually arranged by phone. See the appointmentmaking process.

22 ASPacronym... application service provider... a software solution used by the customer where the solution itself

is developed, hosted and managed by an outside company... generally implies a lower implementation cost.

23 Assumption/Assumptive Close This is where the salesperson works on the assumption that it’s a ‚done deal‛ and they just need to iron out

the finer points. It should be used carefully as it making assumptions can annoy the buyer.

24 Assumptive closeold school closing approach where the salesperson assumes the prospect is buying and moves directly to a

request for a signed contract and/ or payment.

25 Balanced Scorecard A technique that helps a firm to evaluate performance against specific objectives. Methods of measurement

include: sales, profit and customer value

26 bartera non-monetary exchange... an exchange of products and/ or services for other products and/ or services...

sometimes used to minimize cash outlays or to maximize the value of sunk costs.

27 Barter An exchange of products and/or services for other products and/or services; some firms use it to minimise

cash purchases

28 base salary or "base"the guaranteed portion of a salesperson's monetary compensation... not always a part of a salesperson's

compensation.

29 BCG (Boston Consulting Group) Matrix Also known as ‚The Boston Box‛. This 2 x 2 matrix is a model to help a firm analyse its product portfolio.

The two axes are relative market share and annual market growth and the four quadrants are:

30 Behavioural Segmentation

Classifying the market into groups of people according to the similarity in way they behave or interact with

a product. This includes identifying those who require the same benefit from a product or service and those

who use a product or service in the same way. It is increasingly recognised that this should be the starting

point for market segmentation

31 Below the Line All forms of promotion except advertising (i.e. those on which agencies are not paid commission). It

includes: public relations, sales promotions, direct mail, point of sale

32 Benefit the gain (usually a tangible cost, but can be intangible) that accrues to the customer from the product or

service.

33 benefit the value experienced by the customer.

34 Benefit The value of the product or service experienced by the consumer, which is distinct from features. Sales

people should sell on benefits supported by features

35 Black Friday

a retail sales term used to describe the Friday after Thanksgiving... traditionally a big selling day for the

retail world... originated as a description of the day in the year when a retailer begins to profit or "be in the

black".

36 Body Language The main non verbal communication method and includes the way you stand or sit, facial expressions,

gesticulations, how you hold your head and use your eyes

37 Brand A name, term, design, symbol or any other feature that identifies one seller’s good or service as distinct from

those of other sellers [4]

38 Brand Extension A strategy whereby a firm uses an existing brand name for a new product to be marketed to the same

market egg Persil washing tablets

39 brokera person who acts on behalf of a company to sell its products or services... a broker is typically compensated

on a commission only basis... also see agent.

40 Broker A particular type of agent who tends to trade on behalf of the customer, rather than the principal and so will

tend to have agreements with many principal organisations [3] eg an insurance broker

41 budget

the amount of money available for use to a salesperson or purchasing agent for a particular time period or a

particular project... can also be used to describe a sales target (in revenue and/ or units) for a specified time

period... also referred to as a quota, goal or forecast.

42 Business Buyer Behaviour

The buying process and factors that influence the process when businesses purchase goods or services.

Business DMP (Decision making process) usually more extensive than consumer buying and may involve:

Establish need, Develop specification, Identify alternatives, Evaluate alternatives against specification,

Request tender, Select, Establish administrative systems, Purchase, Post-purchase evaluation.

43 Business Plan A plan that states the long-term direction of a company and includes audit, mission, objectives, strategies,

forecasts, cash flows and controls

44 Business to Business (B2B) Can refer to a market, product or industry whereby the context is of a firm selling to another organisation to

either

45 Business to Consumer (B2C) Can refer to a market, product or industry whereby the context is of a firm selling to an individual for his

own personal consumption, rather than to an organisation for their use or consumption

46 buyer

most commonly means a professional purchasing person in a business; can also mean a private consumer.

Buyers are not usually major decisionmakers, that is to say, what they buy, when and how they buy it, and

how much they pay are prescribed for them by the business they work for. If you are selling a routine

repeating predictable product, especially a consumable, then you may well be able to restrict your dealings

to buyers; if you are selling a new product or service of any significance, buyers will tend to act as

influencers at most. See decisionmakers.

47 Buyer Behaviour

The stages that buyers go through when buying goods or services. There are many factors that influence

buyer behaviour (see Consumer Buyer Behaviour and Business Buyer Behaviour and Decision Making

Process)

48 Buying Criteria A written, or unwritten, checklist of the requirements of the purchaser when making a buying decision egg

price, speed of delivery, quality and so on

49 buying facilitation®

also known as facilitative buying, generally attributed (and registered) to sales guru Sharon Drew Morgen.

Extremely advanced form of personal selling, in which the central ethos is one of 'helping organizations and

buyers to buy', not selling to them. See collaboration and partnership selling at the end of the section.

50 buying signal

a communication from a prospect or customer that indicates s/he is or is strongly considering making a

purchase... typically delivered in the form of a question (i.e., can i have it delivered before the end of the

month?)

51 buying signal

a buying signal is a comment from a prospect which indicates that he is visualising to whatever extent

buying your product or service. The most common buying signal is the question: "How much is it?" Others

are questions or comments like: "What colours does it come in?", "What's the leadtime?", "Who else do you

supply?", "Is delivery free?" "Do you use it yourself?", and surprisingly, "It's too expensive."

52 Buying signal A communication from a prospect indicating they are ready to make a purchase. Buying signals may be non-

verbal, such as a nod, or verbal, such as an interested questions egg when could it be delivered?

53 buying warmth behavioural, nonverbal and other signs that a prospect likes what he sees; very positive from the sales

person's perspective, but not an invitation to jump straight to the close.

54 Call Centre

These are premises where many telephone lines are routed into numerous telephone operators who work at

the call centre, usually using headsets and computers. They may operate on behalf of one organisation, or be

contracted to many. An outbound, or sales, call centre is one that not only receives calls but also makes

telemarketing calls

55 call/calling

a personal facetoface visit or telephone call by a sales person to a prospect or customer. Also referred to a

sales call (for any sales visit or phone contact), or cold call (in the case of a first contact without introduction

or notice in writing).

56 Canvas Another word for prospecting where the sales person is seeking information to establish potential customers

57 canvass/canvassing coldcalling personally at the prospect's office or more commonly now by telephone, in an attempt to

arrange an appointment or present a product, or to gather information.

58 Cash and Carry A type of distributor, or wholesaler, who performs a variety of functions but does not give credit, nor

transport goods to their customers

59 Channel of Distribution

Channelling goods from their origin to their ultimate destination and involves the use of intermediaries, or

middlemen such as wholesalers and retailers. Factors that impact the selection of channels include: the

customers, the product, competitors, size and resources, channel power

60 Channels May refer to Distribution Channel or Communication Channel (see relevant section)

61 close/closing

the penultimate step of the 'Seven Steps of the Sale' selling process, when essentially the salesperson

encourages the prospect to say yes and sign the order. In days gone by a Sales person's expertise was

measured almost exclusively by how many closes he knew. Thank God for evolution. See the many

examples of closes and closing techniques in the Seven Steps section, but don't expect to kid any buyer

worth his salt today, and using one might even get you thrown out of his office. Use with great care.

62 Closed Gestures

These are a negative form of body language where a person appears to be protecting their body and so they

have their legs crossed or arms folded; however, gesture clusters should be noted, rather than individual

gestures

63 Closed Questions

These are a type of question used in marketing research. They are questions where all the possible answers

are provided by the researcher, usually on a questionnaire, enabling the respondent to choose between the

given answers. Examples are dichotomous questions (providing possible answers of yes or no) and multiple

choice questions. Closed questions lead to quantitative data, which is easier to analyse than answers elicited

from open

64 Closing (The Sale)

This is a major stage of the sales cycle and one that even sales people are often not keen on! It is where the

sales person asks for the business. There are several techniques for closing. Cooper [4] identifies four closes:

the Alternative Close, Direct Close, Cautious Close and Assumptive Close, which is also known as the

Assumption Close (see relevant sections); others that many texts and sales people recognise are: Summarise

and then direct close, Concession Close, Objection close

65 Closing Questions These are questions that are designed to bring fact finding discussions to an end, so the prospects can be

moved forward to take a purchase decision

66 cold calla sales call where the salesperson doesn't personally know the company and/ or contact s/he is calling on

and/ or a sales call where no known need, by the prospect or salesperson, exists.

67 cold calla sales call where the salesperson doesn't personally know the company and/ or contact s/he is calling on

and/ or a sales call where no known need, by the prospect or salesperson, exists.

68 Cold Calling This is the process of telephoning or calling at the door of people or companies who have not previously

expressed an interest in the product, service or firm

69 collaboration selling

also known as collaborative selling and facilitation selling very modern and sophisticated, in which seller

truly collaborates with buyer and buying organization to help the buyer buy. A logical extension to

'strategic' or 'open plan' selling. See collaboration and partnership selling at the end of the section.

70 comfort zone challengean activity in which one engages in order to push one’s envelope where one has relatively little experience

and/ or comfort.

71 comfort zone challengean activity in which one engages in order to push one’s envelope where one has relatively little experience

and/ or comfort.

72 Commercial Buyers

Those who buy on behalf of a business. This involves more logic than emotion, although emotion still plays

a part. Factors influencing commercial buyers are: who instigates the process, competition, quantity, value,

quality, repeat business and price [3]. See also Business Buyer Behaviour

73 Commercial Market This is also known as a business, or industrial, market and is one where companies buy goods or services for

consumption in their business or to transform the goods into other products to be sold

74 Commission Remuneration paid to a salesperson following the successful completion of a sale; is usually a percentage of

sales revenue

75commodities/commoditised (products

and services)

typically a term applied to describe products which are mature in development, produced and sold in vast

scale, involving little or no uniqueness between variations of different suppliers; high volume, low price,

low profit margin, deskilled ('ease of use' in consumption, application, installation, etc). Traditionally the

'commodities' term applies to the 'commodities markets' which trade and set prices for fundamental

commodities such as coffee, grain, oil, etc., however in a more generic sales and selling sense the term

'commoditised' refers to a product (and arguably a service) which has become massproduced, widely

available, easy to make, demystified, and simplified; all of which is almost invariably associated with a

reduction in costs, prices and profit margins, and which also has massive implications for the sales

distribution model and methods for taking the product or service to market. Commoditised products are

amenable to massmarket and largescale sales distribution methods and models, as opposed to specialised or

highcomplexity products, which tend to require closer customer support and greater expertise and advice at

the point of selling and installation, and commissioning and application, if appropriate. An electric battery

torch is a commoditised product that is freely available, at competitively low price, 'offtheshelf' at any

76 Communication Channel Elements within the Promotions Mix that an organisation uses to communicate with target audiences (See

Promotions Mix)

77 Communications Research Research aspects of promotions decisions. Cooper identifies 4 key areas [3]: effectiveness research, media

selection, copy testing and sales force effectiveness

78 Comparative Advertising A type of advertising that a firm uses to compare their products or services directly with competitors. Needs

to be used with care and is illegal in some countries

79 Competition-Based Pricing This is where a product is priced according to its perceived value against competing brands

80 Competitions A form of Sales Promotions that is used to gain interest from a target audience, whereby they may win a

prize

81 Competitive Advantage A firm’s USP (Unique Selling Proposition) that a firm has to put them in a better position than competitors

82 Competitive Parity A pricing strategy whereby a firm charge a price similar to other brands or the market leader. The objective

is to prevent a price war and the firm should have a differential advantage other than price

83 Competitors May be direct or indirect. Direct competitors provide the same products or services in the same market;

indirect competitors provide similar benefits, or substitute benefits in the same market.

84 Concentrated Strategy One of three target marketing strategies. It is where the firm targets a niche market with one specific tailored

marketing mix

85 Concession

used in the context of negotiating, when it refers to an aspect of the sale which has a real or perceived

value, that is given away or conceded by seller (more usually) or the buyer. One of the fundamental

principles of sales negotiating is never giving away a concession without getting something in return even a

small increase in commitment is better than nothing. See the negotiation section.

86 Concession Close

This way of closing the sale is where the salesperson keeps one possible concession back as a way of

encouraging the prospect to make the decision, for example if the prospect will place the order today, the

sales person will give them an extra 1% discount

87 Confirmatory Questions These questions confirm that the seller understands the buyer’s needs and are usually closed

88consultative selling (consultation

selling)

developed by various sales gurus through the 1980's by David Sandler among others, and practiced widely

today, consultative selling was a move towards more collaboration with, and involvement from, the buyer

in the selling process. Strongly based on questioning aimed at gaining useful information.

89 Consumer An individual who uses a product or service (they may not be the buyer)

90 Consumer Buyer Behaviour

The buying process and factors that influence the process when consumers purchase for their own use. The

basic process (DMP) comprises: Establish need, Identify alternatives, Evaluate alternatives, Select, Purchase,

Post-purchase evaluation. Cooper [3] indicates the process for buying a car might be: Identify need, Finance,

Evaluate alternatives, Trial, Negotiate, Purchase, Evaluate purchase.

91 contact managera method or system for managing contact information, priorities and checklists... typically used to describe a

software solution that partially automates contact management functions.

92 contact managera method or system for managing contact information, priorities and checklists... typically used to describe a

software solution that partially automates contact management functions.

93 Corporate Hospitality

A PR technique of entertaining clients or people who are not direct employees but are Stakeholders and can

have a beneficial effect on the organisation; they are typically potential customers, key account customers,

intermediaries and the media

94 Corporate Identity Physical reinforcement of the personality of a firm which is reflected by consistent use of brand names,

symbols, logos, colours, typefaces; the identify aims to reinforce the Corporate Image'

95 Corporate Image A firm’s personality, which can only be defined by the public. Firms use corporate identity and PR to

enhance their image.

96 Corporate Strategy A firm’s long-term business plan (see Business Strategy)

97 Cost-Based Pricing This includes strategies where the major consideration is covering the firm’s costs and is a favourite

amongst accountants

98 CRMacronym... customer relationship management... term generally used to describe a comprehensive software

solution that helps companies manage their relationships with their prospects and customers.

99 CRMacronym... customer relationship management... term generally used to describe a comprehensive software

solution that helps companies manage their relationships with their prospects and customers.

100 cross sell

to sell a prospect/ customer a product or service that complements or adds value to another purchase... can

also be used to refer to selling an existing customer another product or service (regardless of its connection

with another purchase)

101 cross sell

to sell a prospect/ customer a product or service that complements or adds value to another purchase... can

also be used to refer to selling an existing customer another product or service (regardless of its connection

with another purchase)

102 Cross Selling Selling different parts of a product range, that they have not previously bought, to an existing customer

103 Cultural Empathy When a sales person (or firm) achieves a rapport, or understanding, of a customer’s culture

104 Culture

The set of beliefs, values and attitudes that underpin society. Our culture involves all things around us; it is

very complex and includes our language, religion, education, social behaviour, politics and social attitudes.

It can have a huge impact on our buyer behaviour.

105 Customer usually meaning the purchaser, organization, or consumer after the sale. Prior to the sale is usually referred

to as a prospect.

106 Customer A person or company who purchases goods or services. They are not necessarily the ‚consumer‛, i.e. the

end user

107 Customer Lifetime Value (CLV) The profitability of a customer during the lifetime of the relationship with the firm; this is distinct from their

value during one transaction

108 Customer Loyalty The extent to which a customer tends to repurchase from a specific firm, organisation or a particular brand.

109 Customer Orientation A business that is marketing orientated, is by nature, customer orientated [3] [6]

110 Customer Philosophy Considering the needs of the customer in everything a firm does

111customer relationship management

(CRM)

CRM is now a commonly used term to describe the process of managing the entire selling process within a

department or organisation. Computerised CRM systems enable management of prospect and customer

details, contacts, sales history and account development. Well known examples of CRM computerised

systems are Sage's ACT!, which claims (as at 2006) to be the world's most popular CRM system, and Front

Range's Goldmine. Chief elements of a CRM system (or strategy, since the term is used to describe the

process and methodology as well as the system) are:

112Customer Relationship Management

(CRM)

The planning, implementation and control of all interactions with customers. The aim is to develop

customer loyalty

113 Customer Service Means by which a firm provides customers with service that equals or exceeds their expectations

114 Data Processing The process of obtaining, recording and maintaining information which is able to be retrieved and used:

often involves new technology

115 Database Marketing The use of a database for storing information about customers so that specific groups can be selected and

targeted for marketing activity

116 Deal common business parlance for the sale or purchase (agreement or arrangement). It is rather a colloquial

term so avoid using it in serious company as it can sound flippant and unprofessional.

117 Decider A role within the Decision Making Unit (DMU). The Decider makes the final decision regarding the product

or service to be bought; they are often technical experts and/or purse holders

118 Decision Making Process (DMP) The process that a buyer goes through to purchase a good or service.

119 Decision Making Unit (DMU) The group of people involved in a purchasing decision; includes: the initiator, gatekeeper, influencer,

decider, financier, buyer, user (see relevant sections)

120 decisionmaker

a person in the prospect organization who has the power and budgetary authority to agree to a sales

proposal. On of the most common mistakes by sales people is to attempt to sell to someone other than a

genuine decisionmaker. For anything other than a routine repeating order, the only two people in any

organization of any size that are real decisionmakers for significant sales values are the CEO/Managing

Director/President, and the Finance Director. Everyone else in the organization is generally working within

stipulated budgets and supply contracts, and will almost always need to refer major purchasing decisions to

one or both of the above people. In very large organizations, functional directors may well be

decisionmakers for significant sales that relate only to their own function's activities. See influencer.

121 deliverable(s) an aspect of a proposal that the provider commits to do or supply, usually and preferably clearly

measurable.

122 Demographic Segmentation A method of segmenting markets by demography

123 demographics

the study of, or information about, people's lifestyles, habits, population movements, spending, age, social

grade, employment, etc., in terms of the consuming and buying public; anyone selling to the consumer

sector will do better through understanding relevant demographic information.

124 Demography Information profiling a population in terms of their age, gender, income, stage in the family life cycle,

religion and social class; is frequently used for segmenting consumer markets.

125 demonstration/'demo'/'dem'

the physical presentation by the sales person to the prospect of how a product works. Generally free of

charge to the prospect, and normally conducted at the prospect's premises, but can be at another suitable

venue, eg., an exhibition, or at the supplier's premises.

126 Desk Research

Also known as Secondary Research. This involves collecting data from existing sources and so using that

which already exists, as opposed to Field, or Primary, Research. Secondary sources include internal sources

and external sources, such as the internet, government statistics, trade directories and so on. There are

several potential problems associated with secondary research but it is often plentiful and free, or

inexpensive

127 Differential Advantage The benefits a firm has over its competitors. This may be a brand’s USP or some advantage the firm has

through its operations, such as a low cost base or technology that it uses

128 Differentiated Strategy One of three target marketing strategies. It is where a firm targets many segments with a different marketing

mix for each segment

129 Direct Close This is the simplest closing method and just involves asking the prospect for the order

130 Direct Mail A method of below-the-line promotion that communicates directly with a target audience through the mail.

131 Direct Marketing

Direct marketing may refer to direct distribution or direct promotions. Direct distribution involves a firm

dealing directly with the end user, rather than through a middleman. Direct promotion involves a firm

communicating directly with a target audience or enabling the audience to communicate directly with them

and includes: direct mail, the internet, personal selling, telemarketing, direct response advertising and e-

mail

132 Direct Response Advertising (DRA)

Is both advertising and direct marketing. It involves using advertising media (above-the-line) to

communicate with audiences and includes mechanisms for the target audience to communicate directly

with the firm, such as: a phone number, address, e-mail or enquiry form

133 discipline within the context of an organization this means the same as function, ie job role.

134 Discrimination Pricing A pricing strategy whereby a firm charges different prices for different market segments. Is also called

Segmentation Pricing

135 Distribution The Place element of the marketing mix. It involves the process of getting the goods from the supplier to the

user and involves channel management and physical distribution management.

136 Distribution Channel Channelling goods from their origin to their ultimate destination and involves the use of intermediaries, or

middlemen such as wholesalers and retailers

137 Distribution Research Researching to make distribution decisions. Cooper identifies 3 key areas [3]: warehouse research,

transportation research, retail outlet research

138 Distribution Strategy

The extent of market exposure that a firm provides it products with and depends on the type and image of

product, its value and size and dispersion of customers. The three strategies are: Intensive, Selective,

Exclusive

139 distribution/sales distribution

the methods or routes by which products and services are taken to market. Sales distribution models are

many and various, and are constantly changing and new ones developing. Understanding and establishing

best sales distribution methods routes to market are crucial aspects of running any sales organisation, and

any business organisation too. Sales distribution should be appropriate to the product and service, and the

enduser market, and the model will normally be defined by these factors, influenced also by technology and

social trends. For example, commoditised massmarket consumer products (FMCG fastmoving consumer

goods, household electricals, etc) are generally distributed via massmarket consumer distribution methods,

notably supermarkets, but also increasingly the internet. A lesson in changing sales distribution models, and

the need for manufacturers and sellers to anticipate changes is found in the switching of book sales and CD

sales from retail store distribution to websites, with the resulting demise of many retailers in those sectors.

Future changes in sales distribution will see for example music transferring increasingly via online

downloads, thus threatening those involved with or dependent upon physical shipping of products. B2B

(businesstobusiness) sales distribution models have their own shape, again dependent on products and

services, customer markets, technology, plus other influences such as economical trends, environmental and

legislative effects, etc. Examples of B2B sales distribution models are franchising, direct sales forces

(employed), direct sales forces (sales agents), telephone sales (callcentres, outbound and inbound), the

internet (online website businesses), distributors (independent sellers who carry products and services of

other manufactuerers and 'principals'), and channel partners and partnering arrangements (prevalent in

telecomms and IT sectors).

140 Distributor

Also known as a wholesaler. Tend to buy in bulk, break bulk and sell and distribute to retailers, the trade or

end users. Except for cash and carry wholesalers they give credit and transport to their customers. Many

large retailers have undertaken Vertical Integration and developed their own wholesaling system

141 Disturbing Helping a prospect establish the consequences of not buying; tends to more effective in domestic selling

142 Diversification A marketing strategy that a firm may pursue to develop new products in new markets

143 Domestic Buyers

Those who buy for their own consumption. This often involves more emotion than logic, although logic may

still play a part. Factors influencing domestic buyers are: frequency, importance, social class [3]. See also

Consumer Buyer Behaviour

144 Domestic Market This is a consumer market or where customers buy for personal consumption

145 Downline Vertical Integration [3]

Also known as Downward Vertical Integration. Where an organisation expands downline, within the

distribution channel An example of downline vertical integration is a manufacturer developing its own

wholesale or retail function

146 Downward Vertical Integration

Also known as Downline Vertical Integration. Where an organisation expands downline, within the

distribution channel. An example of downward vertical integration is a manufacturer developing its own

wholesale or retail function 147 Early Payment Discount Is a reduction in price to the buyer for paying before the due invoice date, often paid on delivery

148 e-commercethe activity of buying and selling over an electronic data interchange... typically referred to when describing

the activity of buying and selling over the Internet and a web interface...

149 E-commerce Selling goods electronically, usually over the Internet

150 EFQM European Foundation for Quality Management

151 Electronic Data Interchange (EDI)

The computer-to-computer exchange of business data in standard formats. The information is organised

according to a specified format set by both parties, allowing a "hands-off" computer transaction that requires

no human intervention or re-keying on either end. All information contained in an EDI transaction set is, for

the most part, the same as on a conventionally printed document.

152 Electronic Point of Sale (EPOS)

The use of electronic tills that enable product data to be read (usually from a bar code) so that information

may be stored. This is used for stock replenishment and, when combined with information from loyalty

cards, or similar, for contacting consumers with targeted offers

153 E-marketing Marketing effort using electronic means such as e-mail and the internet; incorporates e-commerce and

promotion

154 Empathy Statements These statements are made by the sales person to show that they understand how a buyer feels

155 Endorsement A declaration that a product or service is good: it may come from an opinion former, celebrity or satisfied

customer and is powerful in bolstering customer confidence

156 Environment A firm’s environment comprises its macro- and micro- environment (see relevant sections and External

Analysis). These are factors beyond the company’s control

157 Ethical Selling and Marketing Sales and Marketing that takes account of the moral aspects of decisions such as telling the truth, selling

products that will not harm consumers. Ethics are becoming increasingly important in sales and marketing

158 Ethics Moral judgements: these tend to be subjective regarding what is right and wrong

159 Exclusive Distribution A distribution strategy involving limited market exposure and so a firm distributes via exclusive territory

outlets i.e. one outlet in each geographic area

160 External Analysis

An evaluation of the external sales and marketing environment, including the macro- (or wider)

environment such as political, legal, economic, social and technological factors and the micro (or closer)

environment such as markets and competitors. These factors are usually outside the control of the firm

161 Extranet An intranet that is accessible to authorised external users.

162 Eye Gestures The two types of eye gesture identified by Cooper [3] are eye movements (upward and downward) and

pupil dilation

163 FAB's

features advantages benefits the links between a product description, its advantage over others, and the

gain derived by the customer from using it. One of the central, if now rather predictable, techniques used in

the presentation stage of the selling process.

164 Family Life Cycle The stages an individual goes through during their life egg single, married no children, married with young

children and so on. It is often used as a method of demographic segmentation

165 farmer a sales professional responsible for growing sales from existing accounts.

166 Fast Moving Consumer Goods FMCGs

167 Feature an aspect of a product or service, eg., colour, speed, size, weight, type of technology, buttons and knobs,

gizmos and gadgets, bells and whistles, technical support, delivery, etc.

168 Feature A fact about a product egg it is large or it is inexpensive. Sales people should sell on benefits but support

them with features

169 field

means anywhere out of the sales office. Field sales people or managers are those who travel around meeting

people personally in the course of managing a sales territory. To be fieldbased is to work on the sales

territory, as opposed to being officebased.

170 Field Research

Also known as Primary Research. This is research that is being undertaken for the first time, as opposed to

Desk (secondary) Research. It is undertaken for a specific purpose; the three types of primary research are:

surveys, observation and experimentation

171 Field Selling (or Marketing) Where a firm sends its sales representatives or agents to businesses in order to sell to them. It includes firms

selling to retail outlets to build brands and supporting sales.

172 Financier The member of the DMU who pays for the product or service

173 FMCGs Fast Moving Consumer Goods: these are products that have a low price, fast turnover and, usually, short

life, such as packaged food, toiletries and tobacco products

174 Focus Groups

A method of survey, in primary marketing research where groups of up to eight respondents participate in

discussions on the topic being researched; a group moderator guides the discussion without biasing the

comments

175 forecast

a predicted amount of revenue generation for a particular time period and/ or area of geography and/ or

industry... can also be used to describe a sales target (in revenue and/ or units) for a specified time period...

also referred to as a quota, budget or goal.

176 forecast/sales forecast

a prediction of what sales will be achieved over a given period, anything from a week to a year. Sales

managers require sales people to forecast, in order to provide data to production, purchasing, and other

functions whose activities need to be planned to meet sales demand. Sales forecasts are also an essential

performance quantifier which feeds into the overall business plan for any organization. Due to the

traditionally unreliable and optimistic nature of salesdepartment forecasts it is entirely normal for the sum

of all individual sales persons' sales annual forecast to grossly exceed what the business genuinely plans to

sell. See targets.

177 Forecasting May involve sales forecasting, market forecasting or technological forecasting (see relevant sections).

Involves estimating or calculating future events and performances

178Forestall the Objection (Method of

Dealing With Objections)

If there is an objection that comes up time and time again, the salesperson may raise it themselves and

counter it. This means that they control its timing but, of course, it may be something the prospect hadn’t

thought about

179 Four P's See 'marketing mix'

180 Franchise

A type of distribution channel where a franchisee buys a licence (or right) to sell a product or service from

its owner (the franchisor), for a stated timescale. The franchisee usually pays a fee and royalties and the

franchisor allows use of a brand name, may provide marketing support and know-how.

181 Franchisee The person who buys the franchise i.e. the right to use the franchise name

182 Franchisor The company, or person, who is the principal and sells the right to use the name etc. to the franchisee

183 Function in the context of an organization, this means the job role or discipline, eg., sales, marketing, production,

accounting, customer service, delivery, installation, technical service, general management, etc.

184 gatekeeper

an individual within an organization who is responsible for evaluating the potential value of a salesperson's

product or service for a particular decision maker and taking action accordingly (e.g., passing them along to

the appropriate person, asking them to send something in the mail, etc.)... also called a screener.

185 Gatekeeper A role within the Decision Making Unit (DMU). The Gatekeeper is a person who enables or prevents

information from getting to the rest of the DMU; they may be a receptionist or PA.

186 Geodemographics A method of analysing and segmenting markets by a combination of geographic and demographic variables;

examples of geodemographic segments include 'ACORN', MOSAIC, SAGACITY

187 Geographic Segmentation A method of segmentation where the market is classified by where they live or are located

188 gestation period

sale gestation period typically refers to the the time from enquiry to sale, the Sales Cycle in other words,

(see Sales Cycle). Awareness and monitoring of Sale Gestation Period/Sales Cycle times are crucial in sales

planning, forecasting and management, for individuals sales teams and sales organizations.

189 Gesture Clusters These are a group of gestures that need to be considered collectively, rather than focusing on an individual

gesture

190 goala sales target (in revenue and/ or units) for a specified time period... also referred to as a quota, budget or

forecast.

191 Grey Market A common way of defining an elderly population although the grey market is becoming more healthy,

wealthy and ‚youthful‛

192 Group Communication

This involves selling to a group of people and Cooper suggests that key tools for dealing with this situation

are: planning and preparation, setting meeting objectives that are acceptable to the group, consider

variations in the group’s mode of communication, establish group body language, involve everyone,

summarise and action

193 Guarantees (Also known as Warranties). Legal commitment of a company to repair, replace or compensate for faulty

goods and services

194 Hard Fact Questions These questions probe specific facts such as the size of the organisation

195 Honesty Gestures These indicate whether a person is telling the truth but need to be used with care. If the person is not being

honest they will often put their hand to their face, scratch their nose or neck

196 House to House Distribution Where a firm delivers product or marketing literature to the consumer's home

197 hunter a front line sales professional responsible for finding and bringing in new business.

198 Ice-Break

This is the fourth stage in Cooper’s Sales Cycle *3+. This is where the sales person should put both

themselves and the prospect at ease and start to build a rapport. In a domestic sales situation this may take

ten to fifteen minutes, a business sales situation should be shorter, normally no more than five minutes

199 Inbound enquiry An enquiry about a firm’s product or service that comes from a prospect or customer

200 inbound inquiryan inquiry about your product or service that's initiated (usually by phone, email or in person) by a prospect

or customer... no prospecting needed... a gift from the sales angels...

201 Incentives

(Also known as Inducements). An enticement for a consumer to increase the attraction of buying a good or

service. They are often in the forms of sales promotions such as free gifts and may also include permanent

incentives such as money-back guarantees.

202 Industrial marketing Also known as Business-to-Business (B2B) marketing where a firm markets goods or services to another

organisation

203 Influencer

a person in the prospect organization who has the power to influence and persuade a decisionmaker.

Influencers will be generally be decisionmakers for relatively low value sales. There is usually more than

one influencer in any prospect organization relevant to a particular sale, and large organizations will have

definitely have several influencers. It is usually important to sell to influencers as well as decisionmakers in

the same organization. Selling to large organizations almost certainly demands that the sales person does

this. The role and power of influencers in any organization largely depends on the culture and politics of the

organization, and particularly the management style of the two main decisionmakers. See decisionmakers.

204 Influencer

A role within the Decision Making Unit (DMU). Influencers may be people from inside or outside the

purchasing firm but have influence over decision makers regarding the product/company that is bought.

They are often experts in their field.

205 Initiator A role within the Decision Making Unit (DMU). The Initiator is the person who starts the buying process

and so may be

206 inside sales usually refers to those who sell by phone and/ or do not leave the premises physically

207 Intangible in a selling context this describes, or is, an aspect of the product or service offering that has a value but is

difficult to see or quantify (for instance, peaceofmind, reliability, consistency). See tangible.

208 Integrated Organisational Effort A firm where all departments and functions work together (usually to put the customer first)

209 Intensive Distribution A distribution strategy involving a firm aiming for maximum market exposure. Usually involves retailers

and/or vending machines and tends to be for goods such as FMCGs (see relevant section)

210 Intermediary Middlemen within channels of distribution such as distributors, retailers and agents

211 Internal Analysis Where a firm analyses its internal situation suck as people, resources, products and marketing effort, to

enable them to overcome weaknesses and take advantage of opportunities in the environment

212 Internal Customers

Internal customers are employees. All employees should be viewed as customers in several ways: each

departments depends on the services of others; a marketing oriented firm needs to put customers first and

that has to be ‚sold‛ to all staff and, in some firms, products and services, such as printing, are actually sold

to other departments.

213 Internal Marketing This involves marketing the marketing plan and customer focus to internal staff to gain their support

214 International Sales and Marketing Sales and marketing of goods and services to overseas countries

215 Intranet An internal network used to share information. It utilises internet technology and protocols and is protected

by a firewall to prevent unauthorised users gaining access

216 introduction first stage of the actual sales call (see opening).

217 ISOsales acronym... independent sales organization... term used to describe field sales forces that are not

employees of the companies which provide the products or services they sell.

218 ISO International Standardisation Organisation

219 Just-in-Time (JIT)

Where a firm sets up a purchasing agreement with suppliers which involved stock being ordered and

supplied at short notice [3]. This prevents the cost of the customer holding stock and timing of delivery and

quality tend to be more important than price for a firm requiring J-I-T

220 KAISM Key account identification and selection matrix

221 Key Account Management The identification of existing and potential high value customers and planning and controlling all activities

in relation to retain and increase their business. A key account manager is often appointed

222 Kinaesthetic Communication Kinaesthetics involves touching and feeling; those buyers favouring kinaesthetic communication to visual

and audio tend to be driven by emotion and so it is often prevalent in domestic buying

223 lead

a person or organization that has shown an interest in a particular product or service... can also be used to

describe a person or organization that sales or marketing staff feel may have a need for a particular product

or service.

224 Lead A person or firm that has either shown an interest in a product or service or one that has been recommended

by someone else as having a potential interest

225 leadtime time between order and delivery, installation or commencement of a product or service.

226 Learning Log A diary detailing all learning and sources throughout a period of study. It is often part of a Personal

Development Plan

227 Listening a key selling skill, in that without good listening skills the process of questioning is rendered totally

pointless.

228 lock-out revenuethe dollars generated from a customer over time because of the customer's perceived hassles associated with

switching to a competitor.

229 Log Book Diary of actions to be undertaken, usually for a week, broken into half-hour sections

230 Logo A visual symbol that identifies a company or brand. It usually comprises a name, logo and symbols and

should be consistent in its use

231 Loss leader

Is a phrase used in retailing. It is a product that is sold at a low price (either at break-even or at a loss) in

order to attract customers into the store. The aim is that, once the customers are in the store, they should be

tempted to buy other items which are priced to make a profit. Essential goods are often used as loss leaders

232 Macro Environment The wider environment, or external factors, that impact a firms business, sales and marketing; they are

usually beyond the firm’s control. They are often known as PEST or SLEPT factors (see relevant sections)

233 major account

a large and complex prospect or customer, often having several branches or sites, and generally requiring

contacts and relationships between various functions in the supplier and customer organization. Often

major accounts are the responsibility of designated experienced and senior sales people, which might be

formed into a major accounts team. Major accounts often enjoy better discounts and terms than other

customers because of purchasing power leveraged by bigger volumes, and lower selling costs from

economies of scale.

234 manufacturers' rep

independent sales representatives that are not employed by the companies which provide the products and

services they sell... manufacturers' reps typically represent multiple manufacturers in complementary

industries and sometimes represent competing lines within industries.

235 marginthe difference between the selling price of a product or service and the cost of producing, delivering or

acquiring the product or service.

236 margin/profit margin

the difference between cost (including or excluding operating overheads) and selling price of a product or

service. Percentage margin is generally deemed to be the difference between cost and selling price, divided

by the selling price ex tax (eg something that costs £1 and is sold for £2 plus tax produces a 50% margin

gross margin that is net margin is after overheads are deducted).

237 Market Chain The market chain is the chain of suppliers and customers extending to the end-user. Changes can occur at

any stage of the chain and the impact of such changes on you will depend on where you are in the chain.

238 Market Development A marketing strategy of taking an existing product to new markets

239 Market Entry Where a firm launches a new product into a new or existing market.

240 Market Penetration

A marketing strategy of developing business by selling more of existing products in existing markets. This

may be undertaken through cross-selling, increasing promotions or distribution, taking competitors’

customers, expanding the market or increasing product usage

241 Market Research

Gathering, analysing data about the market to reduce risk and enable better marketing decisions to be made.

It includes: estimates of market size and potential, identification of key market characteristics and segments,

forecasting market trends and gathering information on existing and potential customers. It should not be

confused with Marketing Research which involves researching broader subjects

242 Market Segmentation The identification and classification of meaningful buyer groups in order to target selected segments and

develop a relevant marketing mix. Market segmentation is the first stage of the Target Marketing Process.

243 Market Share A firm’s sales of a specific product or range of products to a market, stated as a percentage of total sales of

all that type of product to that market segment

244 Market Skimming

A term used by Cooper [3] to refer to what most marketers consider to be a prestige pricing strategy (also

known as premium pricing); this is where a high price is charged for an exclusive product, often in a niche

market. (See Skimming for recognised definition)

245 Market-Based Pricing This includes strategies where the major consideration is pricing a product based on what the market

considers it to be worth and is prepared to pay in order to maximise sales

246 marketinga set of activities that assist in driving sales of a product and/ or service... see ambush marketing and viral

marketing.

247 marketing

perceived by lots of business people to mean simply promotion and advertising, the term marketing

actually covers everything from company culture and positioning, through market research, new

business/product development, advertising and promotion, PR (public/press relations), and arguably all of

the sales functions as well. It's the process by which a company decides what it will sell, to whom, when and

how, and then does it. See the marketing section.

248 Marketing Marketing is the management process responsible for identifying, anticipating and satisfying customer

requirements profitably. (CIM)

249 Marketing Communications

Techniques that an organisation may use to communicate with specified target audiences. It includes

advertising, PR, sales promotion and personal selling and is also known as the ‚Promotion‛ element of the

marketing mix

250 Marketing Information Information that is obtained and stored to enable a firm to make effective marketing decisions: it differs

from data as it is processed data and, therefore, more meaningful

251 Marketing Information System Often known as a MKIS and is a planned and controlled system for gathering, sorting, storing

252 Marketing Mix

The blend of controllable marketing variables that a firm uses in order to deal with the marketing

environment. It is called a ‚mix‛ as all elements must work effectively together to reflect a product of firm’s

positioning.

253 Marketing Orientation A philosophy of business whereby the firm puts the customer at the centre of their business. [6]

Characteristics of a marketing oriented firm are:

254 Marketing Strategy The strategic, or long-term, marketing plan

255 markup

this is the money that a selling company adds to the cost of a product or service in order to produce a

required level of profit. Strictly speaking, percentage markup refers to the difference between cost and

selling price as a factor of the cost, not of the selling price. So a product costing £1 and selling for £2 has

been given a markup of 100%; (at the same time it produces a margin of 50%).

256 Mark-Up

The profit from a product or service stated as a percentage of the cost of producing the product or service. It

is often confused with Margin, which is the profit from a product or service stated as a percentage of the

selling price

257 Mass Market A very large segment or wide collection of smaller segments

258 Media Release Material prepared with the aim of it being published in the press or other media. It is important that a media

release is newsworthy and well written; they may include photographs and other suitable materials

259 Micro Environment

Part of the external environment that impacts a firm’s business, sales and marketing. It is closer to the firm

than the macro-environment and tends to be industry-specific; it includes: markets, competitors, suppliers

and other stakeholders (see relevant section)

260 Mirroring

Cooper [3] considers this to be the most powerful aspect of body language for the sales person. It involves

adopting similar body language, stances and gestures to the other person: mirroring leads to a state of

rapport

261 MIS/MkIS

These two acronyms are used interchangeably to mean Marketing Information Systems. Marketing

Information Systems use market information and intelligence that has been gathered from marketing

research, market intelligence and the organisation’s own internal accounting system. The information is

input to the MIS/MkIS system to capture the data on a database.

262 Mission Statement A firm’s business philosophy and direction; it is used to help a firm to develop its long-term plan

263 Missionary Selling Cooper [3] indicates that missionary selling is the same as third party endorsement but is usually recognised

as

264 money hoursthe hours in a sales professional's day where s/he can talk with prospects and/ or customers... the most

valuable hours of a salesperson's day.

265 Mystery Shopper Is a person employed to act as though they are a customer but are employed to provide detailed feedback on

the performance of a company and its staff

266 needscreation selling –

a selling style popularised in the 1970's and 80's which asserted that sales people could create needs in a

prospect for their products or services even if no needs were apparent, obvious or even existed. The method

was for the sales person to question the prospect to identify, discover (and suggest) organizational problems

or potential problems that would then create a need for the product. I'm bound to point out that this is no

substitute for good research and proper targeting of prospects who have use of the products and services

being sold.

267 negotiation/negotiating

the trading of concessions including price reductions, between supplier and customer, in an attempt to

shape a supply contract (sale in other words) so that it is acceptable to both supplier and customer.

Negotiations can last a few minutes or even a few years, although generally it's down to one or two

meetings and one or two exchanges of correspondence. Ideally, from the seller's point of view, negotiation

268 New Business Development The acquisition of new customers

269 New Product Development (NPD) The development of new products and involves research, development, product testing, test marketing and

launch

270 Niche Market A small or narrow market segment [3]

271 NLP NLP stands for Neuro Linguistic Programming, an art and science concerned with communication and

attitude. NLP provides a means of promoting excellence in both personal and professional development

272 Non Verbal Communication

Comprises any communication which is not spoken. The main non verbal communication method is body

language, which includes the way you stand or sit, facial expressions, gesticulations, how you hold your

head and use your eyes

273 Objection

a point of resistance raised by a prospect, usually price ("it's too expensive"), but can be anything at any

stage of the selling process; overcoming objections is a revered and muchtrained skill in the traditional

selling process.

274 Objection

A challenge to or rejection by a prospect feature or benefit of a firm, product or service. It may occur at any

time during the sales process and the sales person should be prepared to counter these. They need to be

aware of whether the objection is genuine, or a smoke screen. Cooper’s identification of techniques for

handling objections is limited [3] but the following are recognised ways of which all salespeople should be

aware (there are others also): agree and counter, deny, question the objection, use as a trial close, forestall

the objection (see relevant sections). Each method has its advantages and disadvantages and may be

applicable to different objections and circumstances

275 Objection Close This method of closing the sale is appropriate when the buyer has made an objection and the salesperson

states that if the objection can be overcome will the buyer place the order

276 Objectives

Specific, measurable, achievable, relevant and times aims. A firm will usually have overall business

objectives (relating to profit), marketing objectives (relating to market share, revenue, products and markets)

and sales objectives relating (to revenue broken down by product, geographic area and individual sales

people). Can also be used for an individual to set targets against

277 OEM

acronym... original equipment manufacturer... an acronym that originally defined a manufacturer who

produced a product to be sold under other company's brands... now used in the sales world to describe

when a company makes a product and sells it to other companies so that they can sell it under their label.

278OEM (Original Equipment

Manufacturer)

This term actually has two meanings. Originally, an OEM was a company that supplied equipment to other

companies to resell or incorporate into another product using the reseller's brand name. For example firms

supplying a retailer like Comets and branding under the Comet own label. In recent years the term OEM

refers to the company that acquires a product or component and reuses or incorporates it into a new product

with its own brand name. This is the definition that Cooper uses [3]. Value-added reseller (VAR), has a

similar meaning but relates to the repackaging of software.

279 One Level Distribution Channel The Producer sells to the consumer (business or domestic) via one intermediary, egg a distributor or retailer

280 Open Gestures

These are a positive form of body language where a person does not appear to be protecting their body and

so they do not have their legs crossed or arms folded; however, gesture clusters should be noted, rather than

individual gestures

281 open plan selling

a modern form of selling, heavily dependent on the sales person understanding and interpreting the

prospect's organizational and personal needs, issues, processes, constraints and strategic aims, which

generally extends the selling discussion far beyond the obvious product application; (in a way, it's rather

like combining selling with genuinely beneficial, free, expert consultancy). In 'open plan selling' the seller

identifies strategic business aims of the sales prospect or customer organization, and develops a proposition

that enables the aims to be realised. The proposition is therefore strongly linked to the achievement of

strategic business aims typically improvements in costs, revenues, margins, overheads, profit, quality,

efficiency, timesaving and competitive strengths areas. There is a strong reliance on seller having excellent

strategic understanding of prospect organization and aims, market sector situation and trends, and access to

strategic decisionmakers and influencers.

282 open question a question that gains information, usually beginning with who, what, why, where, when, how, or more

subtly 'tell me about..'

283 Open Questions

Are questions in marketing research which allow the respondent to answer in any way. They provide

qualitative data as opposed to quantitative data that is elicited from Closed Questions. They start with

words such as Who? What? Where? How? Why? When?

284 open/opening the first stage of the actual sales call (typically after preparation in the Seven Steps of the Sale). Also called

the introduction.

285 opening benefit statement/OBS

traditionally an initial impact statement for sales people to use at first contact with prospect, in writing, on

the phone or facetoface the OBS generally encapsulates the likely strongest organizational benefit typically

(or supposedly) derived by customers in the prospect's sector, eg., "Our customers in the clothing retail

sector generally achieve 3050% pilferage reduction when they install one of our Crooknabber security

systems..." N.B. The OBS is a relatively blunt instrument for modern selling use it with extreme care for fear

of looking like a total twerp.

286 Operational efficiency Not wasting money so savings can be spent directly on the customer (through low prices), or indirectly

(through product quality or investment in technology)

287 Orientation A firm’s culture – Production Orientation, Sales Orientation, and Marketing Orientation cover the different

eras in the focus of firms. [6]

288Original Equipment Manufacturer

(OEM)

This term has two meanings. Originally, an OEM was a company that supplied equipment to other

companies to resell or incorporate into another product using the reseller's brand name. For example firms

supplying a retailer like Comets and branding under the Comet own label. In recent years the term OEM

refers to the company that acquires a product or component and reuses or incorporates it into a new product

with its own brand name. This is the definition that Cooper uses [3]. Value-added reseller (VAR), has a

similar meaning but relates to the repackaging of software.

289 Outbound Call Centre

These are premises where many telephone lines are routed into numerous telephone operators who work at

the call centre, usually using headsets and computers. They may operate on behalf of one organisation, or be

contracted to many. Being outbound, they not only receive calls but their main function is to make

telemarketing calls; they are also called Sales Call Centres.

290 outside sales usually refers to those who sell by visiting others in-person

291 package in a selling context this is another term for the product offer; it's the whole product and service offering at a

given price, upon given terms.

292 Packaging

Part of both the Product element of the Marketing Mix and Promotions element. Provides functional benefits

of protection and communications function of brand identity, awareness at the point of sale and a reminder

in the home; also, often has a legal function

293 Paraphrasing Repeating what is said in your own words to ensure the message is understood

294 partnership selling very modern approach to organizational selling for businesstobusiness sales see collaboration and

partnership selling.

295 Payment By Results (PBR)

This is where a member of staff or provider of a service, such as an agent or advertising agency, is

remunerated based on achievement of objectives: an example is where a sales person is paid on a

commission only basis

296 PDP Personal Development Plan. A plan developed by an individual that assesses their strengths, weaknesses,

opportunities and threats and sets career and learning objectives and plans how to achieve these

297 Penetration Pricing A pricing strategy whereby a firm charges a low price in order to increase sales. Demand must be elastic i.e.

responsive to changes in price and the price should not harm the image of the brand

298 Perceived how something is seen or regarded by someone, usually by the prospect or customer, irrespective of what

is believed or presented by the seller, ie what it really means to the customer.

299 permission-based failure

a negative result that occurs because one does not fully attempt to achieve an outcome because of a message

sent by influential individuals that is perceived as a "permission to fail" or implied acceptance of the

reduced attempt... common statements prompting implied acceptance include-- "What happens< happens."

or "The important thing is that you tried."

300 Personal Development Plan Also known as a PDP. A plan developed by an individual that assesses their strengths, weaknesses,

opportunities and threats and sets career and learning objectives and plans how to achieve these

301 Personal Space The area around an individual that they do not wish to be invaded: it tends to vary between personal and

business situations

302 PEST Political, Economic, Socio-cultural and Technological - a way of defining the macro environment and an

alternative to SLEPT and PESTLE (see relevant sections)

303 PESTLE An alternative way of defining the macroenvironment from PEST and SLEPT (see relevant sections). It

stands for: Political, Economic, Socio-cultural, Technological, Legal and Environmental

304 Physical Distribution management

Also known as logistics. Is part of the Place element of the marketing mix and involves the physical

movement of goods from seller to consumer; it includes: warehousing, transportation, stockholding and

order processing

305 Physical Evidence

One of the 7Ps of the extended Marketing Mix for services. It comprises those factors that customers can see

or experience when obtaining or using a service. They might include: the look of premises and the provision

of tangibles, such as soaps and shampoos in a hotel

306 pipelin see sales pipeline.

307 Place The Distribution element of the marketing mix. It involves the process of getting the goods from the supplier

to the user and involves channel management and physical distribution management.

308 Point of Sale (POS) This is also known as POP, Point of Purchase. It usually relates to retail outlets and includes where goods

are located, displays, stands and signs to draw attention to the goods

309 Portfolio The range of products or services that a company offers to its customers

310 Positioning

The third stage of the target marketing process following segmentation and targeting. It is the creation of an

image for a firm, product, service or brand in the minds of customers and compared with competitors. Firms

and brands may be positioned by feature, benefit, user, country of origin and so on

311 Positive Impact Analysis/PIA

‘< a tool to link deeper understanding of customer needs and sense of value with a move to action’ *3+. A

theory from Cheverton [3] merging the value chain and the market chain to move towards solution selling.

‘In pursuit of value, each part of the chain will be looking for the impact it can have on solutions for the final

customer’ *3+.

312 Positive Mental Attitude/PMA Positive Mental Attitude: a frame of mind which considers solutions rather than problems

313 Post-Sale A major stage in the sales cycle and comprises those activities that are undertaken by a salesperson after an

314 Premium Pricing Another name for Prestige Pricing. A pricing strategy whereby a firm charges a high price because of the

(perceived) quality and image of the product and/or brand

315 preparation

in the context of the selling process this is the work done by the sales person to research and plan the sales

approach and/or sales call to a particular prospect or customer. Almost entirely without exception in the

global history of selling, no call is adequately prepared for, and sales that fail to happen are due to this

failing.

316 Preparation This is the third stage in Cooper’s Sales Cycle *3+. He identifies four main factors: route planning, diary

planning, research and frame of mind

317 Pre-Sale

A major stage in the sales cycle and comprises those activities that are undertaken by a salesperson before an

actual sales visit takes place, or sales telephone call is made: typically includes prospecting, appointment

making and preparation, including research. Pre-sale precedes the sale and post-sale stages

318 Presentation

The presentation stage of the sales cycle follows the sales person having identified the prospect’s need or

problem. It requires the salesperson to sell in the benefits of the product or service supported by its features.

They should inform the prospect of the USP and gain the prospect’s agreement

319 presentation/sales presentation

the process by which a sales person explains the product or service to the prospect (to a single contact or a

group), ideally including the product's features, advantages and benefits, especially those which are relevant

to the prospect. Presentations can be verbal only, but more usually involve the use of visuals, commonly

bulletpoint text slides and images on a computer display or projected onto a screen. Can incorporate a video

and/or physical demonstration of the product(s). See the presentation training section.

320 Prestige Pricing A pricing strategy whereby a firm charges a high price because of the (perceived) quality and image of the

product and/or brand. Also known as Premium Pricing

321 Pricing Research Research in order to determine the optimum price

322 Pricing Strategies

Pricing strategies are the broad prices that a firm charges: these are: Skimming (or Skin-The-Cream),

Penetration Pricing, Prestige Pricing, Competitive Parity, What The Market Will Bear and Discrimination

Pricing (also known as Segmentation Pricing

323 Primary Research

Also known as Field Research. This is research that is being undertaken for the first time, as opposed to

Secondary Research. It is undertaken for a specific purpose; the three types of primary research are: surveys,

observation and experimentation

324 Problem Identification

This is the fifth stage in Cooper’s Sales Cycle *3+. It is linked with need identification as the prospect may

have a problem to be solved which has led to the need. Cooper states that this is the single most important

aspect of any selling situation and it is universally recognised that if the sales person does not know the real

need, or problem, they cannot offer the true benefits to help resolve the situation. Needs and problems are

established through effective questioning and active listening, defining buying criteria, prioritising criteria

and summarising all needs and desires have been confirmed and understood. Cooper states that the process

for need/problem identification can be summarised by the mnemonic NASA: Need, Acceptance, Solution,

Acceptance

325 Processes segmentation A method of business segmentation where the market is classified according to processes it uses, such as the

level of technology

326 product generally a physical item being supplied, but can also mean or include services and intangibles, in which

case product is used to mean the whole package being supplied.

327 Product Life Cycle A model indicating the stages a product goes through from pre-launch to withdrawal from the market: most

commonly, there are four and five stage models.

328 product offer

how the product and/or service is positioned and presented to the prospect or market, which would

normally include features and/or advantages and also imply at least one benefit for the prospect (hence a

single product can be represented by a number of different product offers, each for different market niches

(segments or customer groupings). One of the great marketing challenges is always to define a product offer

concisely and meaningfully.

329 Product Placement

An element of the Promotions Mix where a product or service is used within a television or radio

programme, or a film for example the use of a BMW Z8 in a James Bond film. In the UK there are strict

guidelines as to how products appear on television and that they cannot be paid for

330 Product Research

Research aspects of product development. Cooper identifies 6 key areas [3]: generation of new product

ideas, testing ideas, developing prototypes, testing prototypes, test marketing, Adjusting the marketing mix

prior to launch

331 Production Orientation

A philosophy of business whereby the firm’s focus is on product excellence or technology. May be necessary

in a highly technological environment. Characterised by focusing company efforts on producing goods or

services [6]

332 Professional Services The services provided by firms and individuals that are qualified and/or accredited by professional bodies,

such as accountants, solicitors, surveyors and chartered marketers.

333 Promotions Mix

All marketing communications tools that are used together, for individual campaigns, to achieve

communications objectives in relation to specific target audiences. The mix varies according to objectives,

target audiences and budget and may include: advertising, personal selling, sales literature, public relations

(which can include exhibitions and sponsorship), direct marketing (which includes direct mail,

telemarketing, direct response advertising, e-mail, internet), sales promotion, packaging, point of sale and

product placement

334 proposal/sales proposal

usually a written offer with specification, prices, outline terms and conditions, and warranty arrangements,

from a sales person or selling organization to a prospect. Generally an immensely challenging part of the

process to get right, in that it must be concise yet complete, persuasive yet objective, well specified yet

orientated to the customer's applications. An outline proposal is often a useful interim step, to avoid

wasting a lot of time including in a full proposal lots of material that the customer really doesn't need.

335 Proposition usually means product offer, can mean sales proposal. The initial proposition means the basis of the first

approach.

336 prospect a customer (person, organization, buyer) before the sale is made, ie a prospective customer.

337 PSS

'Professional Selling Skills' highly structured selling process pioneered by the US Xerox (and UK Rank

Xerox) photocopier sales organization during the 1960's, and adopted by countless businesstobusiness sales

organizations, normally as the 'Seven Steps of the Sale', ever since. PSS places a huge reliance on

presentation, overcoming objections and umpteen different closes. Largely now superseded by more

modern 'Open Plan' twoway processes, but PSS is still in use and being trained, particularly in oldfashioned

paternalistic company cultures. The regimented oneway manipulative style of PSS nowadays leaves most

modern buyers completely cold, but strip it away to the bare process and it's better than no process at all.

338 Psychographic Segmentation A method of segmentation whereby the market is divided into groups of people who have the same lifestyle

which encompasses values, attitudes and interests

339 Public Relations

The planning and implementation of communication activities to establish and maintain the reputation of a

firm and its brands, within identified target audiences, often including the general public. PR is often

undertaken at a corporate level and PR techniques include: media releases, conferences, corporate

hospitality, charitable work and the use of badging (for example giving away free t-shorts with company

logo)

340 Pull Promotional Strategy

Pull promotion is a strategy whereby the producer targets the end user with their promotions with the

intention of them demanding the product from the intermediary and so, in fact, pulling it through the

channel of distribution. Promotional methods commonly used are consumer advertising and sales

promotions. A firm will often undertake both pull and push promotional strategies (and profile)

341 Push Promotional Strategy

Push promotion is a strategy whereby the producer targets the intermediary with their promotions and so

on through the distribution chain e.g. a wholesaler targets a retailer. The aim is to push the product through

the channel of distribution to the customers. Promotional methods commonly used are trade sales

promotions, personal selling and, to a lesser extent, some trade advertising. A firm will often undertake both

pull and push promotional strategies (and profile)

342 qualify to determine the purchasing potential of a suspect, prospect or customer

343 Qualify Where a sales person establishes purchasing potential of a prospect and also determines that the person

they are talking to has the relevant decision-making authority

344 Qualitative Research

A form of marketing research whereby opinions and ideas are elicited. Rather than using closed question

questionnaires, the researcher undertakes interviews, focus groups and similar techniques. The findings are

more detailed and subjective than those from quantitative research and so, although often of greater value,

they are more difficult to evaluate and present

345 Quantitative Research

A form of marketing research whereby facts are obtained that can be analysed in a statistical format; for

example 60% of the population read a newspaper at least once a week. Quantitative data is obtained

primarily through the use of closed questions in questionnaires such as opinion polls and customer

satisfaction surveys

346 Quantity Discount Is a reduction in price to the buyer for buying a specific quantity: often, the larger the quantity, the more the

discount

347Question the Objection (Method of

Dealing With Objections)

If a prospect raises a vague objection it can be difficult to deal with: the salesperson needs to find out the

specific issue, which may actually be very small egg if they say a product is awful ask what specific aspect

they dislike.

348 Questioning

the second stage of the sales call, typically after the opening or introduction in the Seven Steps of the Sale. A

crucial selling skill, and rarely well demonstrated. The correct timing and use of the important different

types of questions are central to the processes of gathering information, matching needs, and building

rapport and empathy. Questioning also requires that the sales person has good listening, interpretation and

empathic capabilities. See the questioning section.

349 Questioning Techniques

The use of effective questioning skills to establish a prospects needs. Cooper [3] indicates that these should

include: listen more than talk, ask open questions, use confirmatory closed questions, ask soft and hard fact

questions and use empathy statements (see relevant sections)

350 quotaa sales target (in revenue and/ or units) for a specified time period... also referred to as a goal, budget or

forecast.

351 R & D Research and development: a function undertaken to develop new products

352 Rapport Developing empathy with the customer: Cooper [3] identities three inputs to rapport: create an environment

of ease, establish common ground, use similar communication signals

353 Recommended Retail Price (RRP) The price at which a company recommends their retailers sell the item to the consumer. Since the 1960s it

has been illegal, in most cases, to force retailers to sell at this price

354 Reference Group

Those groups with which a customer identifies in some way and they can have a positive or negative

influence on their buyer behaviour. Examples include those whose opinions are valued such as sports

personalities, also families, friends and work colleagues

355 referral

the strongest form of advertising and/ or one of the best forms of a lead... used to describe a prospect that is

given to a salesperson by a current customer or prospect... requests for referrals are often forgotten by even

the best salespeople.

356 Referral A prospect, or lead, provided to a salesperson as being someone who may be interested in what the

salesperson is selling

357 research/research call

the act of gathering information about a market or customer, that will help progress or enable a ales

approach. Often seen as a job for telemarketing personnel, but actually more usefully carried out by sales

people, especially where large prospects are concerned (which should really be the only type of prospects

targeted by modern sales people, given the need to recover very high costs of sales people).

358 reselleran organization or individual that sells a product made (and sometimes serviced) by someone else...

sometimes used interchangeably with the words "distributor" and "VAR"

359 Retailer An outlet, and part the distribution chain, that sells directly to consumers

360 retention/customer retention

means simply keeping customers and not losing them to competitors. Modern companies realise that it's far

more expensive to find new customers than keep existing ones, and so put sufficient investment into looking

after and growing existing accounts. Less sensible companies find themselves spending a fortune winning

new customers, while they lose more business than they gain because of poor retention activity. (The hole in

the bucket syndrome, where it leaks out faster than it can be poured in.)

361 Retrospective Discount Is payment made back to the buyer at the end of an agreed period if the total purchases for that period reach

an agreed amount. Is used when the buyer does not know, in advance, the quantity required for the period

362 Reverse Psychology In sales this tends to be used on a reluctant or hesitant buyer, where the sales person gives them the benefits

of not buying. It is a technique that must be used with care

363 Sale

A major stage in the sales cycle and comprises those activities that are undertaken by a salesperson during

an actual sales visit or on the telephone: typically includes ice break and rapport, needs/problem

identification, presentation, negotiation, handling objections, closing. It follows pre-sale activity and

preceded post-sale activity

364 Sales

the top line of the income statement and the driving force of all organizations, ideas and progress... also

used to describe the greatest profession in history and greatest skill one can ever have... (did you expect

something less?)

365 Sales Call Centre

These are premises where many telephone lines are routed into numerous telephone operators who work at

the call centre, usually using headsets and computers. They may operate on behalf of one organisation, or be

contracted to many. Being sales call centres, they not only receive calls but their main function is to make

telemarketing calls; they are also called Outbound Call Centres

366 sales cycle

the Sales Cycle term generally describes the time and/or process between first contact with the customer to

when the sale is made. Sales Cycle times and processes vary enormously depending on the company, type

of business (product/service), the effectiveness of the sales process, the market and the particular situation

applying to the customer at the time of the enquiry. The Sales Cycle time is also referred to as the Sale

Gestation Period (ie from conception to birth enquiry to sale). The Sales Cycle in a sweet shop is less than a

minute; in the international aviation sector or civil construction market the Sales Cycle can be many months

or even a few years. The funnel diagram and sales development process on the free resources section show

the sales cycle from a different perspective, (and actually prior to enquiry stage). A typical Sales Cycle for a

moderately complex product might be:

367 Sales Cycle

A complete process which can be applied in the selling environment. Different texts indicate a different

number of stages although they all tend to follow the same pattern, even though some stages may occur at

any time during the sales process. It is widely recognised that there are three main stages: pre-sale, sale and

368 sales forecasts

also called sales projections, these are the predictions that sales people and sales managers are required to

make about future business levels, necessary for their own organisation to plan and budget everything from

stock levels, production, staffing levels, to advertising and promotion, financial performance and market

strategies.

369 sales funnel describes the pattern, plan or actual achievement of conversion of prospects into sales, preenquiry and then

through the sales cycle. Socalled because it includes the conversion ratio at each stage of the sales cycle,

370 Sales Orientation

A philosophy of business whereby the firm’s focus is on selling, rather than the customer. Although selling

is a critical activity, even in a market, or customer, oriented firm, a sales oriented firm is not a good

philosophy to have. It involves a firm trying to push customers to buy what they do not necessarily need or

want.

371 sales pipeline –

a linear equivalent of the Sales Funnel principle. Prospects need to be fed into the pipeline in order to drop

out of the other end as sales. The length of the pipeline is the sales cycle time, which depends on business

type, market situation, and the effectiveness of the sales process.

372 Sales Promotion

One element of the Promotions Mix and involves a range of temporary inducements that includes: coupons,

free gifts, competitions, BOGOF (buy one get one free), temporary interest free credit and so on. Trade sales

promotions are an important form of push strategy and may include temporary interest free credit, sale or

return, free promotional material, extra boxes free

373 sales report a business report of sales results, activities, trends, etc., traditionally completed by a sales manager, but

increasingly now the responsibility of sales people too. See the sample monthly sales report template

374 Sales Revenue The income made by a firm before any deductions have been made. Sales revenue from an individual order

is calculated as Price times Volume

375 Salience

A pronounced feature or part, a highlight, that which is important to customers. Mitchell, Agle, and Wood

(1997) developed a theory of stakeholder identification and salience based upon stakeholder possession of

one or more of three attributes: power, legitimacy, and urgency (Ronald K. Mitchell, Bradley R. Agle, and

Donna J. Wood, "Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who

and What Really Counts" Academy of Management Review, Vol. 22, No. 4, 1997, 298.) Salience is sometimes

defined as the degree to which managers give priority to competing stakeholder claims

376 screener

an individual within an organization who is responsible for evaluating the potential value of a salesperson's

product or service to a particular decision maker and taking action accordingly (i.e., passing them along to

the appropriate person, asking them to send something in the mail, etc.)... also called a gatekeeper.

377 Secondary Research

Also known as Desk Research. This involves collecting data from existing sources and so using that which

already exists, as opposed to Primary Research. Secondary sources include internal sources and external

sources, such as the internet, government statistics, trade directories and so on. There are several potential

problems associated with secondary research but it is often plentiful and free, or inexpensive

378 sector/market sector

a part of the market that can be described, categorised and then targeted according to its own criteria and

characteristics; sectors are often described as 'vertical', meaning an industry type, or 'horizontal', meaning

some other grouping that spans a number of vertical sectors, eg., a geographical grouping, or a grouping

defined by age, or size, etc.

379 segment/market segment a subsector or market niche; basically a grouping that's more narrowly defined and smaller than a sector; a

segment can be a horizontal subsector across one or more vertical sectors.

380 Segmentation Pricing A pricing strategy whereby a firm charges different prices for different market segments. Is also called

Discrimination Pricing

381 Selective Distribution

A distribution strategy involving a firm limiting the number of outlets it sells its products from possibly

because of special storage or knowledge requirements, legal requirements or just because consumers would

be willing to travel to buy the goods

382 Self Evaluation When the salesperson evaluates their own performance regarding what they did well and what they could

have done better

383 Self-Motivation

The ability to enable a sales person to have the desire to do well; it id enhanced by having a positive mental

attitude. Cooper [3] identifies four key factors to help develop self-motivation: belief in oneself, belief in the

product or service, self-evaluation, having a driving force

384 Selling Personal communication between a seller and (prospective) purchaser. As well as a critical role in itself, it

can be considered part of the Promotions function of the Marketing Mix.

385 Service (Marketing)

A service is an intangible product that has five key characteristics that create problems for the marketer and

sales person; these are: intangibility (it cannot be seen or touched); Inseparability (it is produced and

consumed at the same time); Heterogeneity (it is inconsistent in quality as it relies on people delivering the

service); Perishability (it cannot be stored); Lack of Ownership (it cannot be owned). These problems lead

the marketer to extend the Marketing Mix for services to the 7Ps, rather than the 4Ps as for products

386 service contract

a formal document usually drawn up by the supplier by which the trading arrangement is agreed with the

customer. Also known as trading agreements, supply agreements, and other variations. See the section on

service contracts and trading agreements.

387 Service Level Agreement A legal part of a contract that states a guaranteed level of service; it often includes penalties for not

achieving those levels of service

388 Skimming/Skim the Cream Pricing

A pricing strategy where the firm sets the price high in the early stages of the product life cycle to cover high

development costs and achieve as much profit as possible before prices are driven down by competitors

entering the market or new technologies overtaking. Is a common strategy in electronics markets where

‚innovators‛ are prepared to pay a high price for a new technology

389 SME Small to Mid-Sized Enterprise

390 smoke screen (objection)

an objection given by a prospect or customer that's not the primary objection to moving forward... it's

usually given to divert the salesperson from addressing the primary objection of the prospect or customer

and/ or simply because the prospect or customer feels they must object at least once or twice to strengthen

their position in a negotiation or sales process... (primary objections can include a lack of perceived value in

a product or service offering, a perception of an inferiority to a competitive offering, a lack of perceived

urgency in purchasing the offering, an unknown internal political issue between departments, an unknown

corporate initiative with an external party, a lack of funds to purchase the offering, an unknown personal

issue with the decision maker(s) and an "it's safer to do nothing" perception by the prospect or customer)...

391 Societal Marketing Concept A business philosophy which takes into account the interests of society as a whole as well as aiming to

satisfy the needs of the customer

392 Socio-Economic Group

Also known as Social Class. A classification of people who have similar levels of wealth defined through the

types of job they do. There are various ways of defining social class: marketers sometimes used this as a

method of demographic segmentation and normally use those identified by the media where the classes are

defined as A, B, C1, C2, D and E. An example is those in social class A are defined as ‚Upper middle class‛

and comprise senior managers such as MDs, barristers, surgeons and so on. This method of segmentation is

increasingly having less credibility than others

393 Soft Fact Questions These questions probe regarding opinion, feelings and thoughts

394 solutions sellinga common but looselyused description for a more customerorientated selling method than the Seven Steps;

dependent on identifying needs to which appropriate benefits are matched in a package or 'solution'. The

395 Spin Where a firm aims to use or manipulate the media to their advantage; often through PR. Tends to have

negative connotations

396 SPIN® and SPIN® Selling

A popular selling method developed by Neil Rackham in the 197080's: SPIN® is an acronym derived from

the basic selling process designed and defined by Rackham: Situation, Problem, Implication, Need, or Need

Payoff. More detail about SPIN® and SPIN® Selling appears in the Consultative Selling and Needs Creation

Selling methods section. Note that SPIN® and SPIN SELLING® methods and materials are subject to

copyright and intellectual property control of the Huthwaite organisations of the US and UK. SPIN® and

SPIN SELLING® methods and materials are not to be used in the provision of training and development

products and services without a licence. See SPIN® copyright details.

397 Sponsorship A form of Promotion, often considered PR, where a firm provides support for an event, venture, person or

charity in order to obtain positive publicity

398 Stakeholders

Those people and organisations that have some interest in a business and/or the business has an interest in

them. Stakeholders may include: shareholders, employees, members of the local community, customers,

suppliers, intermediaries, local or national government, local publics, regulatory bodies

399Standard Industrial Classifications

(SIC)

Codes used to group businesses according to the type of industry they are in. The government produces

industrial statistics by SIC code, or sector. It is sometimes used to segment business and is a demographic

base as it reflects the type of industry

400 steps of the sale

describes the structure of the selling process, particularly the sales call, and what immediately precedes and

follows it. Usually represented as the Seven Steps of the Sale, but can be five, six, eight or more, depending

whose training manual you're reading.

401Straight Denial (Method of Dealing

with Objections)

This involves informing the prospect that they are mistaken. It can be used when the objection is inaccurate

but

402 Strategic Orientation Where a firm thinks and plans for the long-term and has a marketing person at senior management level to

be the champion of the customer; this also enables resources to be allocated for the benefit of the customer

403 strategic selling

you will also hear people (me included) referring to 'strategic selling' in a generic sense, and not specifically

referring to the Miller Heiman methods and materials. In a generic 'lower case' sense, 'strategic selling'

describes a broad methodology which began to be practised in the 1980's, literally 'strategic' by its nature

(the principles involve taking a strategic view of the prospective customer's organisation, its markets,

customers and strategic priorities, etc), which is described below and referred to as 'open plan selling'. When

using the 'strategic selling' terminology in a training context you must be careful therefore to avoid

confusion or misrepresentation of the Miller Heiman intellectual property. If in any doubt don't use the

'strategic selling' term in relation to providing sales training services call it something else to avoid any

possible confusion with the Miller Heiman products, (see the Miller Heiman Strategic Selling® copyright

details below.

404 Summarisation A part of need identification in the sales process when a sales person must check back with the prospect to

confirm that all needs and desires have been covered and understood [3]

405 Summarise And Direct Close This method of closing is where the salesperson summarises the key benefits before asking for the order.

406 Supply Chain The chain or network from suppliers, manufacturers, distributors and other intermediaries involved in the

production and delivery of a product to the final consumer

407 Survey A method of collecting data where the researcher makes a systematic record of responses from all

respondents who have answered the same questions

408 Suspect An individual or firm that has the potential to be a prospect but with whom the sales person has not yet

made contact

409 SWOT Analysis

A technique of analysis which studies Strengths, Weaknesses, Opportunities and Threats. This can be

undertaken for a firm, as part of their sales and marketing plans, or an individual as part of their PDP

(Personal Development Plan) and can be developed from a detailed audit

410 tangible

in a selling context this describes, or is, an aspect of the product or service offering that can readily be seen

and measured in terms of cost and value (eg., any physical feature of the product; spare parts; delivery or

installation; a regular service visit; a warranty agreement). See intangible.

411 target/sales target

in a sales context this is the issued (or ideally agreed) level of sales performance for a sales person or team or

department over a given period. Bonus payments, sales commissions, pay reviews, job gradings, life and

death, etc., can all be dependent on sales staff meeting sales targets, so all in all sales targets are quite

sensitive things. Targets are established at the beginning of the trading year, and then reinforced with a

system of regular forecasting and reviews (sometimes referred to as 'a good bollocking') throughout the

year. See forecasting.

412 Targeting

The full name is Market Targeting. This is the second stage of the Target marketing process and involves

evaluating and selecting the segments to target and deciding on a targeting strategy. The three potential

targeting strategies are: a concentrated strategy (where the firm targets a niche market with one specific

tailored marketing mix), an undifferentiated strategy (where the firm targets many segments but with one

overall marketing mix) and a differentiated strategy (where the firm's targets many segments but with a

different marketing mix for each segment)

413 Telemarketing any presales activity conducted by telephone, usually by specially trained telemarketing personnel for

instance, research, appointmentmaking, product promotion.

414 Telemarketing The marketing of a product or service directly to a customer by telephone: this may be involve sales,

research or customer care

415 Telephone Preference Service (TPS) A database of both businesses and individual consumer who have requested not to receive unsolicited direct

marketing calls; it is illegal not to comply with the wishes of individual consumers, although not businesses

416 telesales

selling by telephone contact alone, normally a sales function in its own right, ie., utilising specially trained

telesales personnel; used typically where low order values prevent the use of expensive fieldbased sales

people, and a recognisable product or service allows the process to succeed.

417 Teleselling Selling goods or services directly to a customer through use of the telephone

418 tender

a very structured formal proposal in response to the issue of an invitation to tender for the supply of a

product or service to a large organization or government department. Tenders require certain qualifying

criteria to be met first by the tendering organization, which in itself can constitute several weeks or months

work by lots of different staff. Tenders must adhere to strict submission deadlines, contract terms,

specifications and even the presentation of the tender itself, and usually only suppliers experienced in

winning and fulfilling this type of highly controlled supply ever win the business. It is not unknown for

very successful tendering companies to actually help the customer formulate the tender specification, which

explains why it's so difficult to prise the business away from them.

419 Territory the geographical area of responsibility of a sales person or a team or a sales organization.

420 territory planning

the process of planning optimum and most costeffective coverage (particularly for making appointments or

personal calling) of a sales territory by the available sales resources, given prospect numbers, density,

buying patterns, etc., even if one territory by one sales person; for one person this used to be called journey

planning, and was often based on a four or six day cycle, so as to avoid always missing prospects who might

never be available on one particular day of the week.

421 Test Marketing The testing of the Marketing Mix of a product in a sample area prior to a full launch

422 Thoughtful Gestures These show that the person is considering something and tend to be hand to head gestures, such as rubbing

the head or scratching the chin; the sales person should not interrupt these

423 Total Quality Management (TQM)

Focuses on satisfaction of customer needs in combination with the achievement of objectives and covers:

quality, availability, service, support, reliability, value for money and needs to consider: the customer,

corporate planning, management, personnel, physical evidence [3]

424 Trade Buyers

Those who buy on behalf of an intermediary in order to sell on. This involves more logic than emotion,

although emotion still plays a part. Factors influencing trade buyers are: price, bulk purchase, quality, repeat

business, payment terms, availability of just-in-time [3]. See also Business Buyer Behaviour

425 Trade Marketing Marketing of goods and services to the retail and distributive trades

426 trial close

the technique by which a sales person tests the prospect's readiness to buy, traditionally employed in

response to a buying signal, eg: prospect says: "Do you have them in stock?", to which the sales person

would traditionally reply: "Would you want one if they are?" Use with extreme care, for fear of looking like

a clumsy desperate fool. If you see a buying signal there's no need to jump on it just answer it politely, and

before ask why the question is important, which will be far more constructive.

427Trial Close (Method of Dealing With

Objections)

If the salesperson feels that the timing is right and the buyer has just one objection left, they can try to turn it

into a trial close. A trial close is where the salesperson tries to close the sale but, if it doesn’t work, it doesn’t

prevent him from continuing with the selling process. The salesperson would possibly ask that if they could

overcome the objection would the prospect place the order

428 Two Level Distribution Channel The Producer sells to the consumer (business or domestic) via two intermediary, egg a distributor and then

on to a retailer

429 Undifferentiated Strategy One of three target marketing strategies. It is where the firm targets many segments but with one overall

marketing mix

430 unique/uniqueness a feature that is peculiar to a product or service or supplier no competitor can offer it.

431 UPB

unique perceived benefit now one of the central strongest mechanisms in the modern selling process, an

extension and refinement of the product offer, based on detailed understanding of the prospect's personal

and organizational needs.

432 Upline Vertical Integration [3]

Also known as Upward Vertical Integration. Where an organisation expands within the distribution channel

An example of upline vertical integration is a retailer developing its own wholesaling or manufacturing

function

433 Up-sell to sell a prospect/ customer a product or service of higher value

434 Upward Vertical Integration

Also known as Upline Vertical Integration [3]. Where an organisation expands within the distribution

channel An example of upline vertical integration is a retailer developing its own wholesaling or

manufacturing function

435 User A role within the Decision Making Unit (DMU)

436 USP

unique selling point or proposition this is what makes the product offer competitively strong and without

direct comparison; generally the most valuable unique advantage of a product or service, for the market or

prospect in question; now superseded by UPB.

437 VAK

Taken from NLP, this stands for Visual, Audio and Kinaesthetic and these are the three most usual modes of

communication. VAK explains how we see, hear and feel things during a communication. Those favouring

visual communication respond to pictures, demonstrations and images. Those favouring audio

communication tend to respond to words and sounds and are often logical in approach. Those favouring

kinaesthetic communication tend to be concerned with emotion and are often tactile; this is often prevalent

in domestic buying

438 Value Chain A value chain analysis is a list of the identified customer activities with problems and potential solutions

listed against them. The potential solutions are the ‘positive impact’ *3+

439 Value propositions the specific and definitive offer of value from one organization to another.

440 VARsales acronym... value added reseller... term generally used to describe an organization that sells another

organization's product after adding features to it.

441 variable

an aspect of the sale or deal that can be changed in order to better meet the needs of the seller and/or the

buyer. Typical variables are price, quantity, leadtime, payment terms, technical factors, styling factors, spare

parts, backup and breakdown service, routine maintenance, installation, delivery, warranty. Variables may

be real or perceived, and often the perceived ones are the most significant in any negotiation. See the section

on negotiation.

442 Vertical Integration

Where an organisation expands upward, also known as upline [3], or downward, also known as downline

[3], within the distribution channel An example of upline vertical integration is a retailer developing its own

wholesaling or manufacturing function; an example of downline is a manufacturer developing its own

wholesale or retail function

443 viral marketing

the act of marketing a product or service using tactics that encourage individuals to pass along a marketing

message to other individuals in order to have the message delivered at an exponential rate and at very little

to no cost to the marketer... a successful viral marketing campaign encourages prospects and customers to

market a product or service for the marketing company or individual.

444 viral marketing

the act of marketing a product or service using tactics that encourage individuals to pass along a marketing

message to other individuals in order to have the message delivered at an exponential rate and at very little

to no cost to the marketer... a successful viral marketing campaign encourages prospects and customers to

market a product or service for the marketing company or individual.

445 Vision The long-term aspirations of a firm

446 Weekly Log Diary of actions to be undertaken for the forthcoming week, broken into half-hour sections

447 What the Market Will Bear A pricing strategy whereby a firm charges what the market is able and/or prepared to pay: it may be a high

or low price and is frequently used in business-to-business marketing

448 Wholesaler

Also known as a distributor. Tend to buy in bulk, break bulk and sell and distribute to retailers, the trade or

end users. Except for cash and carry wholesalers they give credit and transport to their customers. Many

large retailers have undertaken Vertical Integration and developed their own wholesaling system

449 Yesthe favorite sales word of all time (when used in conjunction with a paying prospect who can make a

decision... and does)

450 Zero-Level Distribution Channel The Producer sells direct to the consumer (business or domestic) and so there are no intermediaries