D099 WGU SALES MANAGEMENT STUDY GUIDE
Functional relationships - Answer -Limited, ongoing relationships that develop when a
buyer continues to purchase a product from a seller out of habit, as long as its needs
are met
Modular structure - Answer -Divides the business into small, tightly knit strategic
business units (SBUs), which focus on specific elements of the organizational process
Value chain - Answer -The process or activities by which a company adds value to a
product, including production, marketing, and the provision of after-sales service
Strategic business units (SBUs) - Answer -A profit center that focuses on product
offering and market segment
Sustainable competitive advantage - Answer -Company assets, attributes, or abilities
that are difficult to duplicate or exceed and provide a superior or favorable long-term
position over competitors
Factors that can help a business develop a sustainable competitive advantage -
Answer -Customer loyalty, location, distribution and information systems (Getting
products at a cheap price and selling them at a reasonable price), unique merchandise,
vendor relations, customer service, and multiple source advantage (being widely
recognized by your strengths)
Business intelligence (BI) - Answer -The use of data in an enterprise to facilitate
decision-making
Big data analytics - Answer -Large, complex data sets that require non-traditional data
processing software to predict trends and forecasts
Four elements that make up ethical behavior within an organization - Answer -A written
code of ethics and standards. Ethics training to executives, managers, and employees.
Availability of advice on ethical situations (advice lines or ethics offices). A system for
confidential reporting.
Integrated marketing communications (IMC) - Answer -The careful coordination of all
promotional activities—media advertising, sales promotion, personal selling, and public
relations, as well as direct marketing, packaging, and other forms of promotion—to
produce a consistent, unified message that is customer focused
Marketing concept - Answer -Identifying consumer needs and then producing the
goods or services that will satisfy those needs while making a profit for the organization
,Promotional techniques - Answer -Advertising, sales promotion, and publicity, or
creating new sales channels or new products
Promotional mix - Answer -The combination of advertising, personal selling, sales
promotion, and public relations used to promote a product
The main limitation of the AIDA model - Answer -The model assumes consumers are
passive and marketers are active during most of the buying process.
What is the main difference between the AIDA model of the buyer's journey and the six
steps model of the buying process? - Answer -The AIDA model assumes that the
customer experience ends at the purchase while the six-step process considers the
after-purchase relationship with the customer.
Transactional selling - Answer -Focuses on short-term, often single, transactions.
Relationship selling - Answer -Focused on long-term relationship building to keep
customers satisfied and consequently convince them to return and make multiple
purchases.
Adaptive selling - Answer -Using social styles to customize a sales approach to the
specific customer
Social style matrix - Answer -A model that categorizes people according to personality
traits and how they interact with others
Analyticals - Answer -Focus on "how,"include facts, do not challenge their facts,
demonstrate results, mention guarantees and warranties, give them time to decide,
communicate the pros and cons, and provide history, data, financial details. Low
responsiveness and low assertiveness
Drivers - Answer -Focus on "what," get to the point quickly, provide options, use facts,
focus on results, provide timelines, and make them feel in control. Low responsiveness
and high assertiveness
Amiables - Answer -Focus on "why," establish a personal relationship, demonstrate
personal commitment, and work as a team. High responsiveness and low assertiveness
Expressives - Answer -Focus on "who," take extra time to discuss everything, give
them recognition and approval, ask them how they feel about the product or service,
focus on the big picture, and use facts and figures to demonstrate what is possible. High
responsiveness and high assertiveness
Consultative selling - Answer -Sales approach where the seller becomes a trusted
advisor to the customer and builds a relationship to truly understand his or her needs
,Customer lifetime value (CLV) - Answer -A prediction of the net profit attributed to the
entire future relationship with a customer
Return on customer investment - Answer -A metric that measures how much value a
business can create per customer
Value proposition - Answer -An innovation, service, or feature intended to make a
company or product attractive to customers
A value proposition should be - Answer -Clear (short and direct), compelling
(motivates), and differentiating (sets the offering aprt).
Equation for ROI - Answer -ROI = net profit ÷ investment × 100
Return on investment (ROI) - Answer -A performance measure used to evaluate the
efficiency of an investment or compare the efficiency of a number of different
investments
Equation for CLV - Answer -CLV = dollar value of purchases x gross profit percent x
number of purchases
Sales channels - Answer -A way of bringing products or services to market so they can
be purchased by consumers
Distribution channels - Answer -A chain of businesses or intermediaries through which
a good or service passes until it reaches the final buyer or the end consumer
Agents or brokers - Answer -Their main job is to represent the producer to the final user
in selling a product.
Wholesalers - Answer -They sell the products to other intermediaries, such as retailers,
for a higher price than they paid. They buy in bulk and store the products in their own
warehouses and storage places until it is time to resell them. They are independently
owned, and they own the products that they sell.
Distributors - Answer -They take ownership of the product, store it, and sell it at a profit
to retailers or other intermediaries. However, the key difference is that distributors ally
themselves to complementary products
Retailers - Answer -Whatever their size, retailers purchase products from market
intermediaries and sell them directly to the end user for a profit
Missionary salespeople - Answer -A salesperson who provides information to an
individual who will influence the purchase decision
, Technical salespeople - Answer -Sales people who are experts in a specific product or
service area. They promote and sell the product by demonstrating how it works along
with the benefits it can offer potential customers
Trade salespeople - Answer -A salesperson who calls on retailers and helps them
display, advertise, and sell products to consumers
Inside salespeople - Answer -People who routinely work inside the business taking
orders and handling transactions
Outside salespeople - Answer -Sales personnel who go out into the field to meet with
customers
Account management - Answer -Maintaining a long-term relationship with customers
who purchased from the firm in the past
Account-based marketing (ABM) - Answer -Concentrates sales and marketing
resources on a clearly defined set of target accounts within a market and employs
personalized campaigns designed to resonate with each account
Key account management (KAM) - Answer -Developing and maintaining long-term,
sustainable and mutually beneficial relationships with key accounts (customer)
Inactive accounts - Answer -Clients who have not made a purchase for a specified
period of time
Active accounts - Answer -Have consistent transactions and engagement with the
business
Passive accounts - Answer -Clients who have established an ongoing relationship with
the company through its website and may or may not have a recurring order
80/20 rule - Answer -Suggests that 20 percent of your activities will account for 80
percent of your results
Pareto principle - Answer -The law of the vital few, or the principle of factor sparsity,
states that, for many events, roughly 80 percent of the effects come from 20 percent of
the causes
Business development - Answer -Activities to develop and implement growth
opportunities within organizations
Sales quotas - Answer -The sales goal or figure set for a product line, company
division, or sales representative
Functional relationships - Answer -Limited, ongoing relationships that develop when a
buyer continues to purchase a product from a seller out of habit, as long as its needs
are met
Modular structure - Answer -Divides the business into small, tightly knit strategic
business units (SBUs), which focus on specific elements of the organizational process
Value chain - Answer -The process or activities by which a company adds value to a
product, including production, marketing, and the provision of after-sales service
Strategic business units (SBUs) - Answer -A profit center that focuses on product
offering and market segment
Sustainable competitive advantage - Answer -Company assets, attributes, or abilities
that are difficult to duplicate or exceed and provide a superior or favorable long-term
position over competitors
Factors that can help a business develop a sustainable competitive advantage -
Answer -Customer loyalty, location, distribution and information systems (Getting
products at a cheap price and selling them at a reasonable price), unique merchandise,
vendor relations, customer service, and multiple source advantage (being widely
recognized by your strengths)
Business intelligence (BI) - Answer -The use of data in an enterprise to facilitate
decision-making
Big data analytics - Answer -Large, complex data sets that require non-traditional data
processing software to predict trends and forecasts
Four elements that make up ethical behavior within an organization - Answer -A written
code of ethics and standards. Ethics training to executives, managers, and employees.
Availability of advice on ethical situations (advice lines or ethics offices). A system for
confidential reporting.
Integrated marketing communications (IMC) - Answer -The careful coordination of all
promotional activities—media advertising, sales promotion, personal selling, and public
relations, as well as direct marketing, packaging, and other forms of promotion—to
produce a consistent, unified message that is customer focused
Marketing concept - Answer -Identifying consumer needs and then producing the
goods or services that will satisfy those needs while making a profit for the organization
,Promotional techniques - Answer -Advertising, sales promotion, and publicity, or
creating new sales channels or new products
Promotional mix - Answer -The combination of advertising, personal selling, sales
promotion, and public relations used to promote a product
The main limitation of the AIDA model - Answer -The model assumes consumers are
passive and marketers are active during most of the buying process.
What is the main difference between the AIDA model of the buyer's journey and the six
steps model of the buying process? - Answer -The AIDA model assumes that the
customer experience ends at the purchase while the six-step process considers the
after-purchase relationship with the customer.
Transactional selling - Answer -Focuses on short-term, often single, transactions.
Relationship selling - Answer -Focused on long-term relationship building to keep
customers satisfied and consequently convince them to return and make multiple
purchases.
Adaptive selling - Answer -Using social styles to customize a sales approach to the
specific customer
Social style matrix - Answer -A model that categorizes people according to personality
traits and how they interact with others
Analyticals - Answer -Focus on "how,"include facts, do not challenge their facts,
demonstrate results, mention guarantees and warranties, give them time to decide,
communicate the pros and cons, and provide history, data, financial details. Low
responsiveness and low assertiveness
Drivers - Answer -Focus on "what," get to the point quickly, provide options, use facts,
focus on results, provide timelines, and make them feel in control. Low responsiveness
and high assertiveness
Amiables - Answer -Focus on "why," establish a personal relationship, demonstrate
personal commitment, and work as a team. High responsiveness and low assertiveness
Expressives - Answer -Focus on "who," take extra time to discuss everything, give
them recognition and approval, ask them how they feel about the product or service,
focus on the big picture, and use facts and figures to demonstrate what is possible. High
responsiveness and high assertiveness
Consultative selling - Answer -Sales approach where the seller becomes a trusted
advisor to the customer and builds a relationship to truly understand his or her needs
,Customer lifetime value (CLV) - Answer -A prediction of the net profit attributed to the
entire future relationship with a customer
Return on customer investment - Answer -A metric that measures how much value a
business can create per customer
Value proposition - Answer -An innovation, service, or feature intended to make a
company or product attractive to customers
A value proposition should be - Answer -Clear (short and direct), compelling
(motivates), and differentiating (sets the offering aprt).
Equation for ROI - Answer -ROI = net profit ÷ investment × 100
Return on investment (ROI) - Answer -A performance measure used to evaluate the
efficiency of an investment or compare the efficiency of a number of different
investments
Equation for CLV - Answer -CLV = dollar value of purchases x gross profit percent x
number of purchases
Sales channels - Answer -A way of bringing products or services to market so they can
be purchased by consumers
Distribution channels - Answer -A chain of businesses or intermediaries through which
a good or service passes until it reaches the final buyer or the end consumer
Agents or brokers - Answer -Their main job is to represent the producer to the final user
in selling a product.
Wholesalers - Answer -They sell the products to other intermediaries, such as retailers,
for a higher price than they paid. They buy in bulk and store the products in their own
warehouses and storage places until it is time to resell them. They are independently
owned, and they own the products that they sell.
Distributors - Answer -They take ownership of the product, store it, and sell it at a profit
to retailers or other intermediaries. However, the key difference is that distributors ally
themselves to complementary products
Retailers - Answer -Whatever their size, retailers purchase products from market
intermediaries and sell them directly to the end user for a profit
Missionary salespeople - Answer -A salesperson who provides information to an
individual who will influence the purchase decision
, Technical salespeople - Answer -Sales people who are experts in a specific product or
service area. They promote and sell the product by demonstrating how it works along
with the benefits it can offer potential customers
Trade salespeople - Answer -A salesperson who calls on retailers and helps them
display, advertise, and sell products to consumers
Inside salespeople - Answer -People who routinely work inside the business taking
orders and handling transactions
Outside salespeople - Answer -Sales personnel who go out into the field to meet with
customers
Account management - Answer -Maintaining a long-term relationship with customers
who purchased from the firm in the past
Account-based marketing (ABM) - Answer -Concentrates sales and marketing
resources on a clearly defined set of target accounts within a market and employs
personalized campaigns designed to resonate with each account
Key account management (KAM) - Answer -Developing and maintaining long-term,
sustainable and mutually beneficial relationships with key accounts (customer)
Inactive accounts - Answer -Clients who have not made a purchase for a specified
period of time
Active accounts - Answer -Have consistent transactions and engagement with the
business
Passive accounts - Answer -Clients who have established an ongoing relationship with
the company through its website and may or may not have a recurring order
80/20 rule - Answer -Suggests that 20 percent of your activities will account for 80
percent of your results
Pareto principle - Answer -The law of the vital few, or the principle of factor sparsity,
states that, for many events, roughly 80 percent of the effects come from 20 percent of
the causes
Business development - Answer -Activities to develop and implement growth
opportunities within organizations
Sales quotas - Answer -The sales goal or figure set for a product line, company
division, or sales representative
