glossary

'R'

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R&D - The Research & Development department is staffed with scientists and technicians who pride themselves on scientific curiosity and detachment, like to work on challenging technical problems without much concern for immediate sales payoffs, and like to work without much supervision or accountability for research costs.

Rational Appeals - Appeals directed to the rational self-interest of the audience.

Reach (media selection) - The number of different persons or households exposed to a particular media schedule at least once during a specified time period.

Real Property - Real estate.

Recoverable Draw - A draw that can be recovered or retrieved by an employer regardless of employment status of the individual who received the draw... the recoverable amount is equal to any draw paid to the individual that exceeds commissions earned.

Receiver - The person a communication is intended for.

Reciprocity - An agreement whereby a person or organization buys a product if the person or organization selling the product also buys a product from the first party.

Recruitment - The process of searching for, finding, and interviewing people for the sales job.

Re-Direct Question - A question that guides the prospect back to selling points that both parties agree on.

Referent Power - Salesperson will attempt to build on any shared characteristics, interests, and acquaintances to deepen their personal relationship.

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.

Referral Approach - An approach that uses a third person’s name as a reference to approach the buyer.

Referral Cycle - Provides guidelines for a salesperson to ask for referrals in four commonly faced situations experienced by salespeople.

Reinforcement - A person's learning is repetitive though the interplay of drives, stimuli, cues and responses.

Rejection - A possible outcome of buzz. Opposite of adoption. A distinction can be made between active rejection ("I don't want a Palm Pilot") and passive rejection ("I like it, but not now").

Relationship Behavior - A kind of leadership that is people-orientated; it involves use of two-way communication.

Relationship Buyers - Buyers who regard the product as moderately important and are knowledgeable about competitive offerings.  They get a small discount and a modest amount of service and prefer the vendor as long as the price is not far out of line.  They are the second most profitable group.

Relationship Gap - The difference between the buyer and the seller’s post sale level of concern for each other.

Relationship Marketing - The creation of customer loyalty.

Relationship Selling - When the seller contacts the customer after the purchase to determine if the customer is satisfied and has future needs.

Remarketing - The search for new propositions for relating the offer to its potential markets. 

Rephrasing Question - A question whereby the salesperson rephrases what the prospect has said in order to clarify meaning and determine the prospect’s needs.

Replevin - A legal proceeding in court to seize property (other than real estate) given as security for a debt that is in default. 

Reseller Market - Consists of all individuals and organizations who acquire goods for the purpose of reselling of renting them to others at a profit.

Reserve - An amount a funding source holds in its account to cover potential payment defaults. After a certain time period has passed, the funding source rebates the reserve to the client less any fees or charges for delinquency. Also called a bad debt reserve.

Responsive Marketer - Finds a stated need and fills it.

Retail Advertising - Advertising used by a retailer to reach customers within its geographic trading area. 

Retail Salesperson - This individual sells goods or services to customers for their personal, non-business use.

Retailing - Refers to any individual or organization that sells its goods or services directly to final consumers for their personal, non-business use.

Retaining Customers -

1. The company must define & measure its retention rate.

2. The company must distinguish the causes of customer attrition and identify those than can be managed better.

3. The company needs to estimate how much profit it loses when I loses customers.

4. The company needs to figure out how much it would cost to reduce the defection rate.

5. Nothing beats listening to customers.

Return Goods Selling - The process of attempting to sell the customer another product or exchanging the product when a customer returns a purchase.

Return on Investment (ROI) - The additional sum of money expected from an investment over and above the original investment.

Revenue and Profit Model - a business model that specifies the main revenue sources, and the projected income the dot-com expects to achieve.

Reverse Flow Channels - Channels normally describe a forward movement of products from source to user.  One can also talk about reverse-flow channels.  They are important in the following cases:

• To reuse products or containers (such as refillable chemical carrying drums)

• To refurbish products (such as circuit boards or computers) for resale

• To recycle products (such as paper)

• To dispose of products and packaging (waste products).

Several intermediaries play a role in reverse-flow channels, including manufacturers’ redemption centers, community groups, traditional intermediaries such as soft drink intermediaries, trash-collection specialists, recycling centers, trash-recycling brokers, and central processing warehousing.

ROI - Sales proposal acronym... return on investment

Role Playing - A process whereby a sales trainee acts through the sale of a product or service to a hypothetical buyer.

Roles in the Buying Decision - 5 Different roles that a person can play in a buying decision:

1. Initiator - the person who first suggests or thinks of the idea of buying the particular product.
2. Influencer - a person who explicitly or implicitly carries some influence on the final decision.
3. Decider - a person who ultimately determines any part or the whole of the buying decision: whether to buy, what to buy, how to buy, how to buy, when to buy, or where to buy.
4. Buyer - the person who makes the actual purchase.
5. User - the person(s) who consumes or uses the product or service.

Roles in the Purchasing Decision - 5 Different roles that a person can play in the purchasing decision.

1. Users - are members of the organization who will use the product or service.
2. Influencers - are those members for the organization who directly or indirectly influence the buying decision.
3. Buyers - are organizational members with formal authority for selecting the supplier and arranging the terms of purchase.
4. Deciders - are organizational members who have either formal or informal power to select the final suppliers.
5. Gatekeepers - are members of the organization who control the flow of information to others.

Routine Decision Making - The process of being in the habit of buying a particular product so attitudes and beliefs toward the product are already formed and are usually positive.

Routing - The travel pattern used in working a sales territory.

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