Terminology

At TechAnimals we understand that each industry has its specific terminology and although business might be business, the sales business is no exception to special “industry related” terms being used. We have put together a reference guide of commonly used terms and phrases which are particular to Sales. Please email us at Info@salesanimals.com with any amendments, additions, or corrections for our Sales Terminology Dictionary and we thank you in advance! Enjoy your reading!

Account – a customer (usually a business-to-business organization) The individual or company you are doing business with.

Account Manager – individual in charge of a client’s account.

Accompaniment Visit – when a manager, supervisor, or trainer accompanies a sales person, while working in the sales territory, usually while meeting prospects, customers or clients.

Accompaniment Report – after a manager accompanies a sales person on an Accompaniment visit the manager completes an accompaniment visit report on the performance of the sales person, which would then be discussed, and suitable follow-up actions or training agreed upon.

Action Plans – The detailed steps a unit, department or a team will take in order to achieve short-term objectives.

Added Value – Additional service or product that a sales person or selling organization provides, 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, informed sales person becomes a significant part of the selling organization’s added value, as perceived by the customer, if not by the selling organization.

Advantage – the aspect of a product or service that makes it better than another, the selling factor over the product or service of a competitor.

Advertising - the methods used by a company to publicize and position its products and services to its chosen market sectors, including product launches, image and brand building, press and public relations activities, merchandising (supporting and promoting the product in retail and wholesale outlets), special offers, generating leads and inquiries, and offering incentives to distributors, and agents, and arguably sales people.

Advertising and Promotion (A&P) – Advertising and Promotion methods are sometimes described as above-the-line (media advertising such as radio, TV, cinema, newspapers, magazines) or below-the-line (non-’media’ methods or materials such as brochures, direct-mail, exhibitions, telemarketing, and PR); advertising agencies generally receive a commission (discount ‘kick-back’) from above-the-line media services, but not from below the line services, in which case if asked to arrange any will seek to add a mark-up.

A&P – (Advertising and Promotion) – A & P methods are sometimes described as above-the-line (media advertising such as radio, TV, cinema, newspapers, magazines) or below-the-line (non-’media’ methods or materials such as brochures, direct-mail, exhibitions, telemarketing, and PR); advertising agencies generally receive a commission (discount ‘kick-back’) from above-the-line media services, but not from below the line services, in which case if asked to arrange any will seek to add a mark-up.

Appointment – a personal sales visit to a prospect, usually arranged by phone for a face-to-face visit. An appointment can also be a scheduled time to discuss a pre-determined topic at a set time.

B’s of Selling – Three B’s of Selling: Be Bright, Be Brief and Be Gone!

Base/Base salary – Basic compensation an employee receives usually a wage or salary. Base salary is the guaranteed portion of a salesperson’s monetary compensation. Base is not always included as part of a salesperson’s compensation.

Benefit – The value the customer gets, the gain (usually a tangible cost, but can be intangible) that the customer accrues from the product or service.

Buyer - most commonly means a professional purchasing person in a business; can also mean a private consumer. Buyers are not usually major decision-makers, that is to say, what they buy, when and how they buy it, and how much they pay are prescribed for them by the company 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, buyers will tend to act as influencers at most. (See decision-makers)

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 selling and partnership selling)

Buying warmth – behavioral, non-verbal and other signs that a prospect likes what he sees; positive signs from the sales person’s perspective, but not an invitation to jump straight to the close.

Call/calling – a personal face-to-face visit or telephone call by a sales person to a prospect or customer. (Also see sales call)

Canvass/canvassing - cold-calling personally at the prospect’s office or by telephone, in an attempt to arrange an appointment, present a product, or to gather information.

Client – a customer, the individual or company you are doing business with.

Code of Ethics – principles of conduct within an organization that guide decision making and behavior.

Close – part of the sales process where the deal is ending.

Collaboration selling – Seller truly collaborates with buyer and buying organization to help the buyer come up with the best solution. A logical extension to ’strategic’ or ‘open plan’ selling. (Also see partnership selling)

Compensation – Is what the sales person gets for making the sale or closing the deal.

Concession – Used in the context of negotiating, refers to an aspect of the sale which has a real or perceived value, that is given away or conceded by seller 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 Negotiation)

Consultative selling (consultation selling) – consultative selling includes more collaboration and involvement from the buyer in the selling process. This method uses questioning to gain useful information.

Consumer - the end user of the product or service.

Customer - usually meaning the purchaser, organization, or consumer after the sale. Prior to the sale they are referred to as a prospect.

Customer Retention – The act of keeping your customers and not losing them to competitors, usually by performing a valuable service.

Cycle – The time or process between first contact with the customer to when the sale is made. Sales Cycle times and processes vary 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 inquiry. The Sales Cycle is also referred to as the sales process and the Sale Gestation Period (i.e. from conception to birth – inquiry to sale). (See sales cycle)

Deal - common business term for the sale or purchase, agreement or arrangement. A deal is made when a sale is closed.

Decision-maker – the person in the prospect organization who has the power and budgetary authority to agree to a sales proposal and sign the deal. Decision Maker has the final say on whether the purchase is made. (Also see Influencer)

Deliverable(s) - an aspect of a proposal that the seller commits to do or supply, usually they are clearly measurable products or services.

Demo (Demonstration) – Physical presentation by the sales person to the prospect of how a product works or the services they can offer. A demo is usually free-of-charge to the prospect and used as a tool to help sell the product or service.

Demographics - The study of, or information about, people’s lifestyles, habits, population movements, spending, age, social grade, employment, etc…Demographics in terms of the consuming and buying public; anyone selling to the consumer sector will do better through understanding relevant demographic information.

Demonstration (Demo) – Physical presentation by the sales person to the prospect of how a product works or the services they can offer. A demo is usually free-of-charge to the prospect and used as a tool to help sell the product or service.

Discipline - within the context of an organization this means the same as function, (i.e. job role).

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 techniques used in the presentation stage of the selling process.

Feature - an aspect of a product or service, (i.e., color, speed, size, weight, type of technology, buttons and knobs, gizmos and gadgets, bells and whistles, technical support, delivery, etc…).

Field - 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 field-based is to work in a sales territory, as opposed to being office-based.

Field Sales – People or managers who travel to meet prospects, usually in a specific sales territory (i.e. location, industry, marketplace, etc…) Field sales people usually work outside the office, as opposed to being in the office everyday.

Function - In the context of an organization, this is the job role or discipline, (i.e., sales, marketing, production, accounting, customer service, delivery, installation, technical service, general management, etc…).

GBS – (sales acronym) General Benefit Statement – what the client will benefit by purchasing the product or service.

General Benefit Statement (GBS) – what the client will benefit by purchasing the product or service.

Gestation period - Sale gestation period typically refers to the time from inquiry to sale, also know as the Sales Cycle. Awareness and monitoring of the Sale Gestation Period/Sales Cycle times are crucial in sales planning, forecasting and management, for individuals, sales teams and sales organizations. (See Sales Cycle).

Golden Handcuffs – Financial reasons, stocks, options, incentives to make it less likely key employees will leave the company.

Gross Earning – Total earnings before taxes, including salary plus additional earnings such as bonuses, overtime, and commission.

Gross Margin – The margin remains after overheads are deducted.

Gross Sales – Revenue generated by sales person before overhead is deducted.

Inbound Inquiry - An inquiry about your product or service that is initiated (usually by phone, email or in person) by a prospect or customer. Not a lead from any prospecting efforts.

Individual Contributor – Sales person responsible for individual quota and territory. Does not have responsibility for a sales team or sales team quota.

Influencer – A person in the prospect organization who has the power to influence and persuade a decision-maker. Influencers will generally be decision-makers for relatively low value sales. There is usually multiple influencers in large prospect organizations. It is equally important to sell to influencers as well as decision-makers from the same organization. The role and power of influencers in any organization varies depending on the culture, politics of the organization, and particularly management style the main decision-makers. (See Decision-makers)

Inside Sales – Individuals who sell by phone and normally do not leave the office.

Intangible - An aspect of the product or service offering that has a value but is difficult to see or quantify (for instance, peace-of-mind, reliability, and consistency). (Also See Tangible)

Introduction - First stage of the actual sales call (See Opening).

Major account – Large, complex, or big revenue-driving prospect or customer. Major accounts often have several branches or sites, and require contacts and relationships between various functions and departments in the customer organization. Major accounts often receive discounts and different terms than other customers because they have the purchasing power leveraged by bigger volumes.

Marketing - Things done to drive the sales of a product or service and bring it to the market in front of customers and clients (Also see ambush marketing and viral marketing). Marketing can include company culture, promotion, advertising, positioning, new business/product development, and PR (public/press relations). Marketing may also include the process by which a company decides what it will sell, to whom, when and how.
Market Sector – Part of the market that can be described, categorized and then targeted according to its own criteria and characteristics.

Market Segment – A sub-sector or market niche. A grouping more narrowly defined and smaller than a sector; a segment can be a horizontal sub-sector across one or more vertical sectors.

Mark-up – The money that a selling company adds to the cost of a product or service in order to produce a required level of profit. Percentage mark-up refers to the difference between cost and selling price as a factor of the cost, not of the selling price. (i.e. a product costing $1 to produce and selling for $2 has been given a mark-up of 100% (at a margin of 50%).

N.A.R.D. (No Ability to Render a Decision) – A N.A.R.D. is a person in an organization who has no decision making authority. The N.A.R.D. claims they have final decision making authority until you ask them to sign on the dotted line. This is when they show their true colors and they finally have to admit they are not the final decision maker. If a N.A.R.D. tells you ”NO,” seek out the true decision maker for the “YES.” Remember: DO NOT TAKE A NO, FROM SOMEONE THAT CANNOT GIVE YOU A YES!!!

National account – A customer with branches or sites that constitute a nation-wide coverage.

Needs-creation selling – Sales people look for and help create a need in a prospect for their products or services even if no needs were apparent, obvious or existed to the prospect before speaking to the sales professional. 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 or service.

Negotiation/Negotiating – Trading of concessions including price reductions, between supplier and customer, in an attempt to shape a sale that is acceptable to both supplier and customer. From the seller’s point of view, negotiation must commence when the sale has been agreed upon in principle.

Objection - A set items a prospect or customer may be concerned about on a feature, benefit, product or service. An objective can be help the sales professionals to know about any potential problems the prospect or customer may have with completing the sales. (Also see smoke screen objections)

OEM – (acronym) Original Equipment Manufacturer – A manufacturer who creates a product/s, that will be branded, labeled, and sold under another company’s name.

Open/Opening - First stage of a sales call (Also see Introduction)

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 face-to-face. OBS generally encapsulates the likely strongest organizational benefit typically derived by customers in the prospect’s sector.

Open-ended question – A question that requires more information and explanation. These questions can not be answered with a one word answer but must be explained usually answering the typical who, what, where, how, and why questions.

Open plan selling – a 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.

Outline proposal – The steps and items to be listed in a proposal, containing less details then the actual proposal. An outline proposal is an interim step, to avoid wasting time writing a full proposal for a customer who is not fully sold.

Outside sales – refers to people or managers who travel to meet prospects, usually in a specific sales territory (i.e. location, industry, marketplace, etc…) Outside sales is usually work outside the office, as opposed to being in the office everyday. (Also see Field Sales)

Package – refers to the whole product or service offering at a given price, upon given terms.

Partnership selling – an approach to selling, where the seller truly collaborates with the buyer and buying organization to help the buyer come up with the best solution (Also see collaboration selling).

PEPEP Method – (Professional Education Personnel Evaluation Program) The Pepep Method usually refers to an assessment of your professional career. It helps you evaluate your professional goals and objectives, and sets up action items and proposed actions, as well as a way to assess your education and/or skills learned.

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.

Percentage Margin – The difference between cost and selling price, divided by the selling price plus tax (i.e. a product costs $1 and is sold for $2 plus tax produces a 50% margin). (Also see gross margin)

Pipeline – Prospects in the sales process usually at different phases of the sales cycle that will eventually turn into a closed sale. Length of the pipeline is the sales cycle time, which varies depending on business type, product price, market situation, and the effectiveness of the sales process. (Also see sales pipeline)

Preparation - Work done by the sales person to research the company, solutions, possible objections, sales tactics and plan the sales approach or sales call for a particular prospect or customer.

Presentation – When a sales person explains the product or service to the prospect (individual or a group), including the product’s features, advantages and benefits, relevant to the prospect. Presentations are mainly verbal, but can include use of visuals, slide shows, brochures, charts, and graphs. (Also see Demo or Demonstration)

Product - Physical item being sold or the service you are selling.

Product offer - How the product or service is positioned and presented to the prospect or market, normally includes features, advantages, and benefits for potential prospects.

Professional selling skills (PSS) – Paces a huge reliance on presentation, overcoming objections and knowing different closes. PSS is mainly a one sided process, most successful selling now includes a more consultative approach.

Proposal - A written offer with specifications, prices, outlining terms and conditions, warranty arrangements and processes from a sales person or a selling organization to a prospect. (Also see Sales Proposal)
Proposition – refers to sales offer or proposal. The details involved in the sale.

Prospects - (n.) Can be a person, company, organization, or anyone who is a potential buyer who has a want or a need for your products or services. Typically referred to as a prospect before they enter the sales cycle. (v.) to action of looking for potential customers, buyers, and clients to buy the product or service you have for sale. Prospecting can be done in a variety of ways: networking, email, phone calls, fax, and in-person meetings.

Qualify – Determining the interest, need, budget and potential of a suspect, prospect or customer during the sales cycle.

Questioning - A crucial selling skill, usually following the introduction phase of interaction with a potential client. Timing and use of the different types of questions are key to the processes of gathering information, matching needs, and building rapport.

Quota - A goal and target of what a sales professional has the responsibility to close over a specified time period.

Recoverable Draw – A draw that the company can ask the employee for back regardless of employment status. The amount that can be recovered is the amount that was given to the employee or individual after they have reached their quota.

Referral - Describes a prospect that is given to a salesperson by an individual who knows of the salespersons ability. A referral can come from a current customer, prospect, friend, family member, or co-worker.

Research - Gathering information about a market, company, customer or prospect that will help build a relationship, modify a sales approach, or progress a deal.

Research Call – A phone call made to gather information about a market, company, customer or prospect that will help build a relationship, modify a sales approach, or progress a deal.

Residual – Recurring revenue that is generated from the first sale over a period of time.

Retention - The act of keeping your customers and not losing them to competitors, usually by performing a valuable service.

RFP (Request for Proposal) – A written request asking contractors to propose a solution and prices that fit the customer’s requirement.

Return On Investment (ROI) (sales acronym) – a term used in the financial world and by management to define the monetary value created or expected to be gained by an investment of capital. ROI is measured as a hard value during the decision making process of the sales process to measure the success of a purchase after implementation and use / is the amount of money that is made or expected to be made after spending money to advertise, market , and/or improve the product. ROI is usually a big factor in determining whether or not the company or individual should move ahead and whether the decision will be a successful one.

Request for Proposal (RFP) – A written request asking contractors to propose a solution and prices that fit the customer’s requirements.

Sale – Closing a deal or making a purchase.

Sales – The business function responsible for selling the companies products or services to the marketplace. The top line of the income statement and the driving force of all organizations.

Sales Call – A sales visit or phone call attempting to sell your products or services

Sales Consulting – A service offered by an experienced sales executive helping companies identify areas that can increase revenue productivity.

Sales Cycle – The time or process between first contact with the customer to when the sale is made. Sales Cycle times and processes vary 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 inquiry. The Sales Cycle is also referred to as the sales process and the Sale Gestation Period (i.e. from conception to birth – inquiry to sale).

Sales Forecast - A prediction of what sales will be achieved over a given period (usually 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 the sales demand. Sales forecasts are an essential performance quantifier which feeds into the overall business plan for any organization. (See Target)

Sales Funnel – The pattern, plan or actual achievement of conversion of prospects into sales, from pre-inquiry through the sales cycle. Referred to as a funnel because leads and prospects enter the funnel continue through the sales cycle and only a proportion of those are converted into a sale.

Sales Goal – A sales target (in revenue or units) for a specified time period, also referred to as quota, budget or forecast.

Sales Job – A position in which a person sells a product or service for a living.

Sales Manager – A person who manages a team of sales people.

Sales Meeting – A meeting (usually held weekly) to discuss sales pipeline, forecasts, quota obtainment, etc…

Sales Pipeline – Prospects in the sales process usually at different phases of the sales cycle. Length of the pipeline is the sales cycle time, which varies depending on business type, product price, market situation, and the effectiveness of the sales process. (Also see Pipeline)

Sales Presentation - When sales person explains the product or service to the prospect (individual or a group), including the product’s features, advantages and benefits, relevant to the prospect. Presentations are mainly verbal, but can include use of visuals, slide shows, brochures, charts, and graphs. (Also see Demo or Demonstration)

Sales Professional – An individual who sells products or services for a living.

Sales Proposal - A written offer with specifications, prices, outlining terms and conditions, warranty arrangements and processes from a sales person or a selling organization to a prospect.

Sales Territory – Physical area a sales person has responsibility to sell into.

Sales Training – Training programs that improve selling skills.

Screener - The individual in a company or organization who begins the research and evaluates potential products or services for the actual decision maker.

Sector – Part of the market that can be described, categorized and then targeted according to its own criteria and characteristics. Sectors are described as a “vertical” referring to an industry type, or “horizontal” meaning some other grouping that spans a number of vertical sectors, (i.e. geographical grouping or a grouping defined by age, size, marital status, etc.)

Segment – A sub-sector or market niche. A grouping more narrowly defined and smaller than a sector. A segment can be a horizontal sub-sector across one or more vertical sectors.

SFA – (sales acronym) Sales Force Automation - is typically the software product that the company or organizations uses to help uniform the sales process across the company (Also see CRM)

SLA – (sales acronym) Service Level Agreement - Part of the sales contract that explains the process, and service both before, during , and after the sales that is created to help the buyer feel feel better about purchasing the product or service.

Smoke Screen – A issue or comment that a potential client would give a sales professional as a reason for not moving the sale forward. The reason given may not be the real reason but rather used to hide another factor.

Solution selling – A common method of selling that is dependent on identifying needs on the customer and including appropriate benefits in a package or solution.

Steps of the sale – Describes the structure of the selling process, particularly the sales call, and what immediately precedes and follows it.

Strategic selling – open plan selling, in which seller identifies strategic business aims of the sales prospect or customer organization, and develops a proposition that enables the aims to be realized. The proposition is therefore strongly linked to the achievement of strategic business aims – typically improvements in costs, revenues, margins, overheads, profit, quality, efficiency, time-saving and competitive strengths areas. Strong reliance on seller having excellent strategic understanding of prospect organization and aims, market sector situation and trends, and access to strategic decision-makers and influencers.

Tangible – An aspect of the product or service offering that can readily be seen and measured in terms of cost and value (i.e. a physical feature of the product; spare parts, delivery, installation, regular service visits, warranty agreement, etc…). (See Intangible)

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 grading, 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.

Telemarketing - any pre-sales activity conducted by telephone, usually by specially trained telemarketing personnel – for instance, research, appointment-making, product promotion.

Telesales – Selling by telephone contact alone, normally a sales function (i.e., utilizing specially trained telesales personnel) used typically where low order values prevent the use of expensive field-based sales people, and a recognizable product or service allows the process to succeed.

Tender – A 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 many members. 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 pry the business away from them.

Territory – the geographical area of responsibility of a sales person or a team or a sales organization.

Territory planning - the process of planning optimum and most cost-effective coverage (particularly for making appointments or personal calling) of a sales territory by the available sales resources, given prospect numbers, density, and buying patterns.

Trial close – an attempt to close the sale early to help surface objections and gauge the clients temperature early. A trial close is usually an opinion asking question

UPB – (sales acronym) 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.

Up-sell – An attempt to sell a prospect or a customer another product or service that will increase the total price of the purchase, can either be a higher priced item or a series of additional smaller priced items.

USP – (sales acronym) Unique Selling Point or Proposition – What makes the product or service offer competitively strong and without direct comparison. USP is the points and aspects that give your product or service a unique advantage.

Value proposition – What makes your product, service, company or yourself valuable to another person, company, or organization.

VAR – (sales acronym) Value Added Reseller – describes an company or organization that sells the products or another company or organization after they add additional features and selling points to it.

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, lead-time, payment terms, technical factors, styling factors, spare parts, back-up 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. (Also see negotiation).

Vertical – The industry you work in or sell to.

Viral marketing - The marketing of a product or service that encourages word of mouth. Viral marketing usually has something catchy that will make people interested and tell others they know. Viral marketing is a very cost effective way of marketing a product or service.

Whale – (Sales slang) refers to a potential client, who if they followed through with the purchase would have a huge positive impact on revenue generate by individual and company.

WIIFem - (Sales acronym) What’s In It For thEM – What the client or potential client will get out of the product or service. WIIFM is usually used in the first person tense.

WIIFM (Sales acronym) What’s In It For Me – What the client or potential client will get out of the product or service. WIIFM is usually used in the third person tense.

YTD Sales – (Year To Date Sales) – Total amount of deals closed or revenue taken it from the beginning of the year to present day.