Chapter 13,14 - BUS 230

What are two reasons that producers who target business customers emphasize personal selling over other promotion methods? (Check all that apply.)

Larger purchases Fewer customers

Which two factors should be considered when deciding how much time to spend on potential customers? (Check all that apply.)

Likelihood of a sale Potential sales volume

In response to widespread competition, Coca-Cola increased its use of reminder-type advertising and implemented more frequent-buyer promotions toward its loyal customers. Based on this promotion blend, it would appear that Coca-Cola is operating in which stage of the product life cycle?

Maturity

In which stage of the product life cycle do personal selling and advertising of business products become more aggressive?

Maturity

In what ways does a well-written job description help a firm? (Check all that apply.)

Narrowing down the list of job candidates Creating performance expectations Determining training guidelines

Which of the following are basic methods of paying salespeople? (Check all that apply.)

Straight salary Combination of salary and commission Straight commission

Which of the following are considered basic sales tasks? (Check all that apply.)

Supporting Order-taking Order-getting

What are typical characteristics of the late majority? (Check all that apply.)

They are set in their ways. They are cautious about new ideas.

Which of the following groups prefer the status quo to new ideas? (Check all that apply.)

Nonadopters Laggards

Encoding is the process used by the _____ during communication.

source

If managers do not provide detailed ______ to salespeople, the salespeople may be expected to be marketing managers in their own territories.

strategy guidelines

Salespeople who help others secure orders but who do not try to get orders themselves are known as ______.

supporting salespeople

Lilly doesn't want to pay her sales team unless they make a sale. Which compensation plan should Lilly use?

Straight commission

Place the parts of the AIDA model in order, with the first promotion job at the top. Instructions Choice 1 of 4. Obtain action toggle button Obtain action Choice 2 of 4. Arouse desire toggle button Arouse desire Choice 3 of 4. Hold interest toggle button Hold interest Choice 4 of 4. Get attention toggle button Get attention

1. Get attention 2. Hold interest 3. Arouse desire 4. Obtain action

Using your knowledge and Exhibit 14-5, place the following steps in the selling process in order; starting with the earliest step at the top. Instructions Choice 1 of 6. Preplan sales call toggle button Preplan sales call Choice 2 of 6. Select target customer toggle button Select target customer Choice 3 of 6. Close the sale toggle button Close the sale Choice 4 of 6. Make sales presentation toggle button Make sales presentation Choice 5 of 6. Set effort priorities toggle button Set effort priorities Choice 6 of 6. Follow up to maintain relationship toggle button Follow up to maintain relationship

1. set effort priorities 2. select a target customer 3. preplan sales call 4. make sales presentation 5. close the sale 6. follow up to maintain relationship

Which of the following is typical of a good salesperson?

A good salesperson will try to help customers by understanding their needs.

Firms spend the least on which of the following promotion methods?

Advertising

According to the adoption curve, _ are the first to adopt new ideas.

Blank 1: innovators or innovator

Promotion for a new product idea should seek to generate interest in the product idea rather than a specific brand. The demand for the general product idea known as _ demand.

Blank 1: primary

While paying a salesperson a straight _ provides the most security for the salesperson, a straight _ offers the most incentive and is tied to results.

Blank 1: salary Blank 2: commission, comission, or commision

Companies often neglect teaching selling techniques as part of a salesperson's _ because they assume anyone can do it and that the only qualification is a friendly personality.

Blank 1: training

Which of the following are methods a company should employ in encouraging greater sales effort.

Competitive salary and commissions Sales contests among salespeople Personal and public recognition for accomplishments

Which of the following activities are performed by order takers? (Check all that apply.)

Completing sales transactions Selling to established customers Maintaining customer relationships

In what ways can an order getter influence consumer behaviors? (Check all that apply.)

Convincing customers to try products that they had not considered Providing information that helps customers differentiate between similar products

Which of the following are examples of sales promotion activities aimed at final consumers or users? (Check all that apply.)

Coupons Contests

In the era of digital cameras, Kodak uses targeted promotion to reach those customers who still desire its 35mm cameras and film. In which stage of the product life cycle is Kodak competing?

Decline

In which stage of the product life cycle does a firm eventually decrease the total amount spent on promotion?

Decline

Which of the following are responsibilities of order getters? (Check all that apply.)

Finding new business opportunities Establishing relationships with new customers

Which of the following statements about promotion blends is correct?

Each market segment may require a unique promotion blend.

Which of the following are responsibilities of a salesperson? (Check all that apply.)

Explain company policies Represent the whole company Diagnose technical problems Negotiate prices

True or false: A firm should apply the same promotion blend across all marketing situations to maintain consistency.

False

What is the final element in the traditional communication process?

Feedback

Which of the following activities are performed by supporting salespeople? (Check all that apply.)

Helping order getters and order takers Enhancing relationships with existing customers

In which way can the sales force help with the marketing information function?

Identifying new competitors

Which of the following is not a benefit associated with training salespeople?

Improved product designs

Rank the following adopter groups according to the speed at which they accept new ideas, with the fastest-adopting group at the top. Instructions Choice 1 of 5. Innovators toggle button Innovators Choice 2 of 5. Early majority toggle button Early majority Choice 3 of 5. Late majority toggle button Late majority Choice 4 of 5. Early adopters toggle button Early adopters Choice 5 of 5. Laggards toggle button Laggards

Innovators Early adopters Early majority Late majority Laggards

Which of the following statements about order takers is true?

Order takers maintain and nurture relationships with established customers.

Kendra is a sales representative for a pharmaceuticals company and meets with doctors and other medical personnel daily to share information about the products her company has available. This is an example of which type of promotion?

Personal selling

What are the three basic promotion objectives?

Persuading Reminding Informing

In the personal selling process, which step comes after a salesperson has selected a target customer?

Preplanning

Which of the following are activities that an order taker will perform for a producer? (Check all that apply.)

Provide ongoing follow-up to make certain customers are satisfied Handle complaints and keep customers informed Complete routine sales to target customers

Which of the following are important areas to cover in sales training? (Check all that apply.)

Relationship building Professional selling skills Company policies and practices Product information

What are three challenges associated with retail order takers? (Check all that apply.)

Repetitive tasks Minimal training High turnover

Which of the following are ways in which the sales force can aid in the marketing information function? (Check all that apply.)

Sharing customer ideas for new products with the firm Conveying new uses that customers devise for existing products Sharing a competitor's strategy with the firm

What are typical characteristics of the early majority? (Check all that apply.)

They have significant contact with mass media. They wait to consider a new idea.

What are three characteristics of missionary salespeople?

They help intermediaries train their salespeople. They work for producers. They develop goodwill and stimulate demand.

Select all the choices that are characteristics of good salespeople.

They try to help the customer to buy. They build lasting relationships. They try to understand the customers' needs. They present advantages of their products.

Which of the following are promotion jobs described by the AIDA model? (Check all that apply.)

To arouse desire To hold interest To obtain action

True or false: A poor management decision about personal selling expenses can lead to lost sales.

True

True or false: Customer service is important to both business customers and final consumers.

True

True or false: Even if customers simply change their mind about a purchase, the customer service rep must figure out a way to make the customers happy.

True

True or false: In order to decide how much time to spend with different customers, a sales person weighs the potential sales volume and the potential for a sale for each customer.

True

True or false: One of the challenges of hiring the correct number and type of salespeople is that every sales job is different.

True

True or false: Personal selling and customer service are important in both domestic and international markets.

True

Which of the following are characteristics of a technical specialist? (Check all that apply.)

Typically has a science or engineering degree Understands the various uses a customer may have for a product

From one country to another, the techniques used for personal selling and customer service ______.

Vary

Personal selling is often ______.

a company's largest single operating expense

Marcus owns a small company that doesn't have much working capital. It would be best for Marcus to pay his sales force with _____ so they only get paid when they make a sale.

a straight commission

Most firms spend less money on ______ than on ______.

advertising; sales promotion

Promotion involves telling customers about the right product available at the right place and _____.

at the right price

When marketing managers push a product through a channel, they ______.

attempt to sell an entire marketing mix to possible channel members

Promotion efforts need to ______ in order to accommodate various adopter groups.

change over time

The advertising manager asked his team if it was better to place their ad in local newspapers or national magazines. The manager is trying to determine the best message _____.

channel

When it is difficult to directly supervise the sales force, a firm might use a _____ plan to better control their sales force.

commission-based compensation

The _ process describes attempts by a source to send a message to a receiver.

communication

When a source attempts to transmit a message to a receiver, it is participating in the ______.

communication process

In order to make sure a firm can afford to pay competitive salaries to salespeople, managers should ______.

compare the estimated value of a salesperson to the salary amount

To attract, retain, and motivate effective salespeople, a firm needs an effective ______ plan.

compensation

Regular salesperson performance reviews help managers to ensure that _____. (Check all that apply.)

compensation plans are aligned with employees' effort and results areas needing attention by salespeople or management are identified a salesperson is performing all of the tasks described in his or her job description

When dealing with top-level customers, particularly other businesses, order getters must sell ______.

concepts and ideas that solve a specific problem

Wendy sells customized software to accountants and bookkeepers. In a series of sales calls, Wendy tries to get a good understanding of the customer's needs. She carefully considers the different software products she has available and customizes an offer for each customer. Wendy appears to be using a _____.

consultative selling approach

Customer service reps play the role of ______.

customer advocates

A ______ rep works with customers to resolve problems that arise with a purchase.

customer service

A particular challenge for order getters in service industries is that ______.

customers cannot physically inspect a service, and must rely on the salesperson to provide evidence of the quality of the service offered

When a company uses a pulling policy to promote products, it refers to ______.

customers requesting a product from intermediaries

The primary targets of a reminding objective are ______.

customers who already have positive attitudes about the firm or its products

Jiffy Lube offers auto maintenance services, including everything from oil changes to preventive maintenance. To highlight its services, the company often mails discount coupons to customers. Jiffy Lube is using ______ marketing to generate business.

direct-response

Direct marketing communications intended to elicit immediate customer feedback are often called ______.

direct-response promotion

Customers who are well respected by their peers and often influence the opinions of other consumers with their purchasing decisions are known as ______.

early adopters

Fossil targeted the promotion strategy of its new line of luxury watches toward ______ because they are likely to influence the opinions of other consumers, particularly through word of mouth.

early adopters

In a commission-based compensation arrangement the size of incentives should be linked to ______.

effort and results

A firm should only base its compensation plan on incentives when there is a strong correlation between ______.

employee effort and results

The source uses ____ when it determines what to say and translates that message into words and symbols.

encoding

Sales managers should regularly ______.

evaluate the performance of salespersons

Many customers called to complain about the NewTrend shoes they had purchased because the bottom of the shoe split in half within days of wearing them. This customer communication is an example of _____.

feedback

Firms can find it difficult to determine the correct number and kinds of salespeople because ______. (Check all that apply.)

having too many salespeople wastes company money changes in strategy may require a firm to restructure its sales force having too few salespeople can lead to important selling tasks being overlooked

Customers typically want to know something about a product before they consider purchasing it. A(n) ______ objective can show that the product meets consumer needs.

informing

Samsung placed an ad in Rolling Stone magazine announcing the Galaxy Tab, the world's thinnest tablet computer. The ad focused on the benefits that it offered based on common customer needs. Samsung is using a(n) ______ objective for its ad.

informing

The first group to adopt new ideas are called ______.

innovators

When companies use ______, they promote the product to their own salespeople or other employees who are in regular contact with customers.

internal marketing

An order getter helps bring products out of the ______ stage of the product life cycle.

introduction

The early majority typically adopts a new idea when ______.

it has been tried and approved of by early adopters and other opinion leaders

In order for a firm to determine the best salespeople, a _____ that includes 10-20 specific tasks or performance requirements should be developed.

job description

Customers who avoid change and are very suspicious of new ideas are called ______.

laggards

Mass selling is an ideal promotion strategy to save costs when the market is ______.

large and scattered

Due to the large number of products that they are responsible for selling, wholesalers' order takers should focus on ______. (Check all that apply.)

maintaining close contact with customers confirming that orders have been filled on time placing orders

Rita works as a salesperson for a soft drink company. Rita needs to identify which customers in her territory she needs to target, determine which products to discuss with the customer, and sometimes negotiate prices. In essence, Rita is operating as a ______ manager in her territory.

marketing

Communicating with large numbers of potential customers at the same time is known as ______.

mass selling

The method by which a message is delivered is referred to as the ______.

message channel

Merchandiser or detailer are alternate terms used to describe ______ salespeople.

missionary

A distraction that reduces the effectiveness of the communication process is called ______.

noise

Any disruption of the marketing communication process, also known as , reduces the effectiveness of the message.

noise

The right promotion blend depends on what the firm wants to achieve; therefore, it is critical that promotion ______ be clearly defined.

objectives

Salespeople who work to generate new business opportunities and build relationships with customers are known as ______.

order getters

Salespeople who sell to the regular or established customers, complete most sales transactions, and maintain relationships with customers are called ______.

order takers

The three basic sales tasks are ______.

order-getting, order-taking, and supporting

A significant difference between advertising and publicity is that publicity does not entail ___.

paying media costs

Communication with wholesalers and retailers includes information about what promotion will be directed toward the final consumer, each channel member's part in marketing the product, and important financial details. This communication is generally handled through ______.

personal selling

Direct spoken communication between sellers and potential customers is called ______.

personal selling

The most common promotion approach in business markets is ______.

personal selling

Famous for his long and thick hair, NFL star Troy Polamalu has a contract with Procter & Gamble to endorse Head and Shoulders shampoo. Procter & Gamble has a(n) ______ objective when it uses Troy to demonstrate that Head and Shoulders shampoo is superior to competing products and thus should be purchased.

persuading

When several firms offer similar products, companies often develop a(n) ______ objective, which tries to convince customers to buy, and continue to buy, their products and not its competitors' products.

persuading

A memorized presentation that does not change depending on customer needs is called a(n) _____ sales presentation.

prepared

Demand for a broad product idea rather than a specific brand is called ______.

primary demand

Samsung uses inbound telemarketing to respond to customer questions. In addition, the company has people who search the Internet and access big data from Facebook, Twitter, blogs, and discussion forums to find complaints related to Samsung and to attempt to remedy the complaint. The company is using a(n) ______ customer service policy.

proactive

When a company does not wait for a customer to contact them with a complaint, but instead uses technology and research to identify and contact seemingly unhappy customers, the company is engaging in _____.

proactive customer service

Most of a customer service rep's time is spent helping to remedy ______.

problems with a purchase

The act of communicating information about a product to potential buyers in an attempt to influence their attitudes and behaviors is called ______ and is an important part of a firm's marketing mix.

promotion

An unpaid, nonpersonal presentation of ideas, goods, or services, is called ____.

publicity

Gatorade is introducing four new flavors of its sports drinks. The company is running national television commercials and mailing coupons to customers to encourage them to ask for the flavors at their favorite store. Gatorade is using a(n) ______ strategy in the channel of distribution.

pull

Attempting to sell the whole marketing mix to all possible channel members is known as ______.

pushing

Sales training should cover company policies and practices, product information, professional selling skills and

relationship building

A promotion objective aimed at keeping a customer from shifting to a competitor by having them recall their past satisfaction with the product is called a(n) ______ objective.

reminding

Order takers at ______ businesses sometimes work at a customer checkout counter making minimum wage and may be unmotivated. This can lead to poor service to customers.

retail

Firms that pay a straight ______ to their sales force will probably need to invest more in close supervision of its salespeople.

salary

Any promotional activity outside of advertising, publicity, and personal selling that attracts potential customers is known as ______.

sales promotion

Most of the important communication with wholesalers and retailers are handled by ______.

salespeople

When customers are located far from a company, the only link between the customers and the company might be the _____.

salesperson

When hiring salespeople, the best practices for progressive companies include _____. (Check all that apply.)

scheduling candidates for multiple interviews conducting thorough background checks keeping an updated list of potential job candidates

When there are several competing firms in a market, marketers must build ______ demand, or demand for a specific brand rather than a general product idea.

selective

Demand for a specific brand rather than a general product idea is called ______.

selective demand

A salesperson does most of the talking early to make key points before bringing the customer along to answer questions in the ______.

selling formula approach

During her sales call to the housing contractor, Kendra was discussing the new home monitoring system her company had introduced. When she wasn't able to answer an electrical question about the system, she called Marietta at the company for the answer. Marietta is acting as a(n) ______.

technical specialist

After meeting with a small business owner, point of sale technology salesman Ernesto decides that his customer would be better served by a less-complex terminal offered by a competing firm, and provides the customer with a referral. This is an example of ______.

the consultative selling approach

Building a competitive sales force requires paying ______.

the going market wage

Customers who are cautious about new ideas and often adopt a new product only after receiving strong social pressure are called ______.

the late majority

When a salesperson begins a presentation with several standardized remarks and leads the customer through questions designed to determine the correct closing strategy, he or she is using _____.

the selling formula approach

Wayne Co. uses internal marketing to sell or promote products to ______.

their salespeople

Prepared sales presentations are useful when ______.

there is not a lot of time for the presentation

In order to select good salespeople, a company should ______.

use a systematic approach based on different inputs

Order takers for producers usually handle few items; however, order takers for _______ often sell thousands of items.

wholesalers

Customer service reps usually ______.

work to remedy something that went wrong with a customer purchase