Sales and marketing terminology Posted: Oct 20, 2005 |Comments: 0 | Views: 4,776 | 0Share Ads by Google

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Terminology / Acronyms ABC figures: This is the independently audited sales figure for all recognised publications in the UK. By using the ABC figure, you can quickly establish how much the advertising will cost per 1,000 readers. Account Managers: These are sales people who have great skills in getting repeat orders and maximising revenue returns from existing accounts. It is very rare that a good "Account Manager" will be good at winning new clients. Blue Bird: This is an unexpected sales opportunity that has a high chance of turning into profitable business. BRAD: This book lists every UK publication including magazines, newspapers, vertical publications etc. It also contains key information i.e. "ABC figures", advertising deadlines etc and is one of the most useful tools available if you are looking to place advertising or embark on DIY PR. Comfort Factor Statements: Also known as credibility statements they show that you can deliver exactly what you say you can. They must not be emotive i.e. include words like "the best", "fantastic", "amazing", "superior" or contain anything that cannot be proven i.e. "high level of customer satisfaction", "unparalleled support", unless supported by facts. Commission Plans: This is how a salesperson is paid for their efforts. It is strongly advised that you include a minimum contribution and ensure that if you plotted a graph of gross margin and percentage of target it would create an incremental curve. CRM: "Customer Relationship Management" This is software that organises all your sales contacts, schedules activities and is used in targeted marketing campaigns. This is vital to all sales operations and there are many packages to choose from costing anything from £80.00 per user upwards i.e. ACT! Goldmine etc. Previously known as TCM.

Please note that when the person has achieved 50% of target they should not earn more than 30% of their OTE.e.e. New Business Sales Exec's: These are sales people who are very good at winning new accounts and getting the first order but tend to lose interest when they know that the new customer will continue to buy. phone.e. i. NI. Over Ride: This is the term used when a sales person over achieves his target and hence is given a large bonus. this often makes them very bad farmers. if you buy 10 cars we will give you / or the company free servicing. Farmers: These are sales people who have great skills in getting repeat orders and maximising revenue streams from existing accounts. Minimum Contribution: This is the account value that all sales staff are required to reach. Also known as "Hunters". about 10 seconds. This is put in place to ensure that commission is not paid before staff have covered their basic salary plus all other costs i. Gross Margin: The difference between your buy price and your sell price. the bigger the . this often makes them very bad farmers. in gross margin terms. before any commission. Also known as New Business Sales Exec's. By using this method it creates a further incentive for the salesperson to hit the their sales target. travel. Hunters: These are sales people who are very good at winning new accounts and getting the first order but tend to lose interest when they know that the new customer will continue to buy. Kick Back: This is when a company gets an extra soft margin when they buy sufficient numbers / value of a product. Remember the bigger the "over rider". Elevator Pitch: This term comes from the theory that if you are in a lift on the 10 th floor of a building you should be able to explain what you do before it gets to the ground floor i.Double Bubble: Sales slang for two people being paid out the full amount of commission on a specific deal / incentive or the same person being awarded double the amount of commission. expenses etc. OTE: "On Target Earnings" This is how much the sales person will earn if they hit their sales target. It is very rare that a good "Farmer" will be good at winning new clients. This is often the opening statement of any form of communication and is predominantly used in lead generation and marketing activities.

SEO: "Search Engine Optimisation" This is the method of making sure that your website gets lots of traffic and enables your company to be listed higher in the search engines for specific key words and phrases i. This is not only expensive because extra commission is paid but can also have very negative effects on cash flow.e. PPC: "Pay Per Click" This is a much-targeted method of advertising and enables sponsored links to be placed at the top of search engine results when your particular key words or phrases are encountered. This is vital to all sales operations and there are many packages to choose from costing .e. Soft Margin: This is most commonly found in the reseller market and generally provided by the manufacturer in form of marketing assistance i. mortgage advice etc. for every £10. Suspect: A company / person that you know will require your services but nothing else is known. buy discount fishing rods.000 of product x sold we will provide you with y amount of money that must be spent on promoting our product / service. Sand Bagging: This is a tactic used by sales people who hold back orders so that as many as possible fall in the same month or quarter and hence they over achieve the target to win a large Over Rider.incentive and hence this increases the motivation to over achieve the gross margin sales target. For each sponsored link placed you are charged from as little as 10 pence upwards. It is then common practice to place the advert on the deadline in order to get the lowest possible price. unfortunately these are often misleading due to sales processes that minimise inaccuracies not being implemented. Google. Prospect: A company / person that you know will require your services and they are looking to purchase. car hire Newcastle.e. Sales Forecast: The system that sales people and managers use to look at how much business is likely to be won each month. Particularly if you have been asked to bid for the work RTR: "Ready to Run" This is the term used mainly by advertising agencies or company's for an advert which is ready to be placed. By having a properly implemented Sales Forecast it is very easy to establish if this is occurring. TCM: "Time Contact Management" This is software that organises all your sales contacts. Yahoo etc. The downside of this methodology is that it takes several months for your website to get a good position on the major search engines i. schedules activities and is used in targeted marketing campaigns.

Overhead Costs Above and beyond the cost of materials and labor.anything from £80. phone. ACT. etc. In order to stay in business you must include these costs in your pricing formula. sales help. advertising and promotional materials.articlesbase. or someone else.e. what makes your company different from its competitors. Rent.e.40 and divorced or SME services based companies with staff of between 3-10 people based within 5 miles of central London etc.html#ixzz1GIG3VPzQ Under Creative Commons License: Attribution Material Costs The total cost of all raw materials and finishing products used in making an article. automobile. . Your selling costs are any money that you must pay in order to get your product to the final customer. Goldmine etc. Labour Costs Labour is the value placed on the time you. your portfolio. single male 30 . Sales people who are not performing and wish to give the impression that their sales pipeline is strong often put this type of prospect on their sales forecast. spends in making an item. This is used predominantly in lead generation and marketing activities and therefore is a MUST HAVE for any sales strategy to work Read more: http://www. are costs that are indirectly related to producing your work called utilities. Selling Costs What it actually costs you to make a sale. etc.e. such as booth fees. Now known as CRM. Tyre Kicker: This is a company / person who pretends to be interested in your product / service. TMUP: "Target Market User Profile" this is the type of company / person that would be a prime target for your business i. USP's: Unique Selling Points i. This term comes from the motor trade when customers would kick the tyres to fain interest when they had no intention of buying a car and were just browsing / looking for a test drive. Finding and Targeting your prime TMUP will reduce the cost of sales and increase marketing and new business efficiency's. These costs include a wide variety of expenses.00 per user upwards i. you must also consider all the costs of being in business. display items. which are directly related to the jewelry you produce.

take in more money than you spend. They cover all the expense of doing business except for the materials a product is made of and the time to make it. Once your application has been approved the bank will issue you an electronic and/or a manual card imprinter. then you have realized a gross profit of $15. theses costs are variable because they will be different for each distinctive product. There will be a fee to process your application and you will be subject to the regular checks that banks do whenever anyone opens an account at any bank. including a credit check. Every new product takes a different amount of material and length of time to produce. You can apply for this charge card service through your local bank. rent. merchant # and plate. your net profit would be less because you would need to deduct the expense of selling your products. The more you produce the more you spend. It is the total amount of dollars received before deducting costs of selling your products. Using the example above. insurance. etc. heat. Net Profits The amount you have remaining after deducting operating and selling expenses. Allowing your customers to use their VISA or MasterCard to purchase jewelry from you substantially increases sales. are also considered in the list of sales terminology. Credit Cards Also known as charge cards. Insurance. Keeping track of these expenses and assigning them to the work you produce can be complicated. . as well as for any directly related services and labor. They would include your monthly bills such as rent. taxes. Direct Costs Direct costs is a sales terminology associated with the manufacture of any jewelry piece include money spent for raw materials and finishing products. bank charges & interest and any other operating costs to keep your business going. that is.Gross Profit Another sales terminology is Gross Profit. utilities. Fixed Costs These are your indirect costs or overhead expenses that you must pay whether or not you are making or selling anything. If you retail a piece of work at a craft show for $30 and it cost you $15 to produce it. Variable Costs The sales terminology Variable Costs are your direct costs in producing your work. If you don't make anything you don't have these costs. Indirect Costs Indirect costs is another sales terminology and it is the cost of doing business other than the actual cost of the object or materials. but it's necessary if you are to make a profit from your business.

O. Net 30 days is the most common payment term and simply means that the customer must pay the invoice within thirty days. o Cash Discounts. o Quantity Discounts. stands for cash on delivery. Many jewelry designers use charge cards for all their expenses away from home because the bills are sent to their business and provide a clear and concise record of all their business-related expenses. This charge is usually paid by the person ordering the goods.You will be charged a service fee ranging from 1. Credit cards also come in handy for your own personal or home business use. Toronto. With this sales terminology.B. (the location of your studio). C.D. Terms of Sales Making a sale to a retail store or some other wholesale customer usually requires an agreement upon payment terms or condition of sales.O. Specify whether you have a minium order. o Minimum Order. o Shipping Charges.O. If in doubt note on your invoices that all orders are shipped F. This is another way of collecting your money. 2/10-net 30. these are the most common terms and conditions that should appear on your price lists and invoices: o Payment Term. Ont. These apply if a total order either exceeds a certain dollar minimum or is based on specific quantities of a specific item. (2% 10 Days Net 30 Days) This term rewards the customer for prompt payment by giving him a 2% discount if he pays within 10 days.8% to 3% on all transactions to your account.O. The rate varies according to the volume of sales you record each month. These can be especially valuable when you are out of town or are making a purchase by phone.B. otherwise the full amount is due in 30 days. and means that your order will not be delivered to your customer until the delivery agent collects the full value.D. . What are the extra charges if the order is below the minimum? o C. You must specify who pays the shipping charges. If your studio is in Toronto your invoice would read: All Orders Shipped F.

a few precautions are advisable: o Make sure the exclusive arrangement is in writing. Include a termination date of no longer than six months or a year. such as "Returns or damage claims are not accepted unless made within ten days after Receipt of Merchandise. If. are all your bracelet products included in the exclusive arrangement? Indicate the exact geographical area that is covered. If you make a line of semi-precious stone bracelets and a line of lampwork bracelets. o o o o . In the agreement have a certain minimum volume that the store must purchase or sell. however. a shop in a metropolitan area wants an exclusive and there are ten other shops selling jewelry of equal quality.o Returns and Claims. Some shops will ask for an exclusive right to sell your work in their particular geographical area. Sometimes it is in your best interest. Define exactly which jewelry items that are covered." Exclusive Rights Exclusive Rights is another sales terminology you may see. If sales are good then it can easily be renewed after that. Specify claims limitations. you should think twice about getting tied down to an exclusive. Spell out what advertising and other promotion activities the store will engage in to promote sales of your work. If you do decide to grant an exclusive. you probably would be safe in granting an exclusive. If it is a quality shop in a rural area or in another state or province. sometimes it is not.

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