Marketing Chapter 19

A salesperson's compensation can be made up of some combination of salary, commission, and __________, which are payments made at a manager's discretion when the salesperson achieves certain goals. A. bonuses B. metrics C. awards D. income segments E. rebates

A

A small office supply company may have a person whose primary responsibility is to process routine orders, reorders, or rebuys of products for clients. This employee is known as a(n) A. order taker. B. order getter. C. sales support rep. D. sales team. E. sales manager.

A

Brandon is in the process of qualifying leads he received from corporate headquarters. Brandon will assess A. whether it is worthwhile to pursue these potential customers. B. how often these customers have bought his products in the past. C. whether he should use role playing in his sales presentation. D. what objections he is likely to receive from the customers. E. how to preapproach these people.

A

Chesnee works in the office of a building materials company. One of her jobs is to identify new building projects and to determine who will make the building materials purchase decisions. Chesnee is involved in the _______________ step of the selling process. A. generate leads B. preapproach C. closing the sale D. follow-up E. sales presentation

A

If your company hired you to make sales calls via the telephone, your company hired you to do A. telemarketing. B. trade shows. C. target marketing. D. test marketing. E. team selling.

A

Johnny works at an electronics store. In addition to his salary, he receives 2 percent of the sales dollars he brings in each month. This extra 2 percent is called a A. commission. B. salary. C. bonus. D. reward. E. rebate.

A

Monica works as a salesperson in a retail clothing store. Of the five stages in the selling process, Monica is least likely to engage in A. generating and qualifying leads. B. the preapproach. C. closing the sale. D. follow-up. E. a sales presentation.

A

One of the advantages of personal selling over other types of marketing communication is that A. salespeople can build strong relationships with customers. B. personal selling almost always costs less than other marketing communication alternatives. C. personal selling has greater reach than advertising. D. cold calling is easier than direct mail advertising. E. personal selling requires less training than other types of selling.

A

Several months ago, Veronica took over the sales territory managed by a very successful salesperson. Veronica should use __________ as a first source of leads. A. current customers B. Chamber of Commerce gatherings C. trade shows D. census data E. competitor databases

A

Studies have found that customers are typically ready to make a purchase decision well before salespeople attempt to close the sale. Salespeople can learn when to close the sale by A. listening to customers and paying attention to their body language. B. keeping accurate records regarding how long it took to close sales in the past. C. asking sales personnel to estimate the average time before customers are ready to close. D. using the same selling process for all customers. E. monitoring and mimicking the closing process used by their sales managers.

A

The attitudes that Ryan's customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. He needs to convey ____________, delivering the right services the right way. A. reliability B. responsiveness C. assurance D. empathy E. tangibles

A

The beginning of the sales presentation may be the most important part of the selling process, because this is where the salesperson establishes A. where the customer is in the buying process. B. how much time has been allocated for the presentation. C. which of the alternative products to demonstrate. D. whether to quote a full price or discount price. E. which type of follow-up will be needed.

A

The most important activity in recruiting salespeople is determining what the salesperson will be doing and A. what personal traits and abilities a salesperson should have to do the job well. B. when they are available to start work. C. whether to pay them on a commission basis or a salary plus commission. D. how long they are likely to stay. E. their previous level of experience.

A

When Motorola first entered the Mexican marketplace, the company wanted direct control of salespeople in major urban markets but was not as concerned about control in less populated areas of the country. Motorola probably used _____________ in major urban areas and ______________ in less populated areas of Mexico. A. a company sales force; manufacturer's reps B. manufacturer's reps; customer relationships C. manufacturer's reps; a company sales force D. independent agents; manufacturer's reps E. order takers; selling teams

A

Which of the following best describes a company sales force? A. A company sales force is composed of people who are employees of the selling company. B. A company sales force is made up of teams making cold calls. C. A company sales force is a team set up to sell products to companies. D. A company sales force is an organization that supplies sales reps to other companies. E. A company sales force is composed of people both inside and outside the organization.

A

By a margin of seven to one in a survey of sales and marketing executives, respondents believed that A. salespeople are born, not made. B. training and supervision are most important determinants of selling success. C. straight commission is the best compensation package. D. personality and optimism are more important than self-reliance and empathy. E. personal traits are not relevant to selling ability.

B

Evelyn knows that prospective customers are likely to raise reservations about price and quality. She needs to convince customers that her products represent A. time savings. B. a good value. C. the least expensive choice available. D. average quality for an average price. E. an environmental achievement.

B

Galena is a new agent for a financial services company. She decides to join the local Chamber of Commerce, the local association of businesswomen, and the local chapter of the United Way organization. Galena is attempting to use __________ to generate leads. A. current customers B. networking C. trade shows D. the Internet E. customer complaints

B

Hiro sells building materials to local contractors. He wants to build long-term relationships with his contractors through effective follow-up. After delivering the materials ordered, Hiro can demonstrate __________ by checking with his contractors right after the delivery and addressing any problems promptly. A. assurance and profitability B. responsiveness and empathy C. tangibility and competence D. profitability and reliability E. reliability and assurance

B

In Arthur Miller's play, Death of a Salesman, Willie Loman portrays A. a leading example of an ethical salesman. B. the loneliness of a traveling salesman. C. the ruthlessness of a pushy salesman. D. the lifestyle and success of people in sales. E. the value salespeople provide to consumers.

B

Kathleen has found out everything she can about a newly qualified lead. She has practiced making her sales presentation and has determined what goals she has for the first meeting. Kathleen has finished the ___________ stage of the selling process. A. qualify leads B. preapproach C. closing the sale D. follow-up E. sales presentation

B

Like any effective salesperson, Tiffany walks into a customer's office, shakes hands, looks the customer in the eye, and smiles. After exchanging pleasantries, Tiffany will try to create interest in her company's product. Tiffany will likely __________ to adapt or customize her presentation to match the customer's needs. A. use a hypothetical situation B. ask a series of questions C. examine the customer's office D. make a variety of assumptions E. refer to past sales

B

Mohinder sells small-business health insurance programs, working on straight commission. Closing the sale is an extremely stressful point in the selling process for him. If he does not close the sale, the most likely outcome will be A. his quota will be increased. B. he will generate no income. C. his quota will be lowered. D. his bonus will not exceed his commission. E. he will get a salary reduction.

B

Most beverage distributors have their delivery people act as the firm's sales representatives. The delivery people primarily function as A. order getters. B. order takers. C. sales support personnel. D. manufacturer's reps. E. telemarketers.

B

One reason B2B salespeople spend considerable time qualifying potential customers is because A. they want to have absolutely everything in order before approaching a potential customer. B. it can be costly to prepare and make a presentation to a business customer. C. too many business buyers at trade shows are really people from competing firms trying to obtain competitive information. D. independent agents get the best leads; the company sales representatives need to work harder. E. they want to determine whether telemarketing is required.

B

Sales, profits, orders, and sales ratios are all _________ measures that can be used to evaluate sales representatives. A. subjective B. objective C. uncontrollable D. cooperative E. customer-related

B

The __________ stage occurs prior to meeting the customer for the first time and extends the qualification of leads. A. qualify leads B. preapproach C. closing the sale D. follow-up E. sales presentation

B

The __________ stage of the selling process offers a prime opportunity for salespeople to solidify customer relationships through great service quality. A. generating and qualifying leads B. follow-up C. sales presentation D. closing the sale E. preapproach

B

The attitudes that Ryan's customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. He needs to be ____________, quickly addressing any problems that occur. A. reliable B. responsive C. assuring D. empathic E. tangible

B

The preapproach stage occurs __________ and extends the qualification of leads procedure. A. after the sales presentation B. prior to the sales presentation C. before closing the sale but after follow-up D. after closing the sale but before follow-up E. at the beginning of the sales presentation

B

Although a sales representative may skip a step in the personal selling process or might sometimes have to go back and repeat steps, there is a logic in the sequence. Which of the following would NOT be appropriate in the personal selling process? A. Before a salesperson can work through the preapproach, leads must be qualified. B. The customer's reservations must be addressed before closing the sale. C. Closing the sale is the final—and most satisfying—part of the process. D. Carefully working through the preapproach will make the next step—the sales presentation—more effective and efficient. E. Follow-up may include additional sales for the representative.

C

Although ethical and legal issues are associated with all aspects of marketing, personal selling presents unique issues because A. salespeople tend to be unethical. B. sales managers are the only people in most sales organizations who worry about ethics. C. salespeople interact directly with customers and are, therefore, more visible. D. laws regulating personal selling are detailed, complex, and often mistakenly ignored. E. customers tend to expect unethical behavior from salespeople.

C

As marketing manager for a newly created software company, Katrina is deciding whether to hire a company sales force. To make this decision, Katrina needs to consider whether A. her firm should attend trade shows. B. her firm has a hot product. C. having a sales force is worth more than it costs. D. she will be able to find an effective supply chain manager. E. online advertising will work.

C

Before approaching a potentially major B2B customer, a salesperson will usually A. conduct an initial sales presentation to lower-level personnel. B. estimate the potential commission associated with making the sale. C. try to find out everything possible about the firm and its needs. D. ask competitors what they know about the prospect. E. assess the corporate climate.

C

Bhakti was recently promoted to a sales management position. She had been an effective representative, but her strengths and educational background were in management. She was about to begin her first salesperson recruitment campaign. The most important thing Bhakti can do to ensure that she recruits the right people is to A. check references to determine why the job candidate was leaving his or her current position. B. run a credit check to ensure that the recruit does have any hidden problems. C. determine exactly what the salesperson will be doing and what traits and abilities job candidates will need to succeed. D. make sure the application forms are filled out correctly. E. make sure her boss is happy with the number of candidates interviewed.

C

During the preapproach stage, a salesperson usually conducts additional research about prospects and A. assists the prospect through the buying process. B. decides what role to play during the handling reservations stage. C. develops plans for meeting with the customer. D. offers initial concessions to gain the sale. E. determines which of the customer's buying support team need to be present at the sales presentation.

C

Effective salespeople anticipate and handle A. external environmental changes. B. corporate takeovers. C. buyers' reservations about the product. D. role playing conflict. E. supply chain problems.

C

For salespeople who practice __________, an unsuccessful close one day may lay the groundwork for a successful close during the next meeting. A. role playing B. sales support promotion C. relationship selling D. delayed preapproach E. transactional selling

C

Fred sells health insurance packages for small businesses. He has been given the names of ten new businesses in his town. During the qualifying leads stage of the selling process, Fred will likely try to assess which of the ten businesses A. would respond best to a sales contest. B. are closest to his office. C. need health insurance packages and can afford them. D. have order getters and order takers. E. are willing to meet with him.

C

Gwen recognizes that one of her roles as a company sales rep is to be the firm's frontline emissary. As such, she strives to build strong relationships with customers and A. capture every possible sale. B. focus on the short term. C. take a long-term perspective. D. disparage competitors' offerings. E. shift organizational control from production to marketing.

C

Kyle is preparing for an important sales presentation. He knows that customers are more likely to ___________ during his presentation than during other stages of the selling process. A. be identified as qualified leads B. agree with everything he says C. raise objections D. offer advice E. return unacceptable merchandise

C

Miles worked selling products to industrial users and spent most of his time working on customers' new buy and modified new buy situations. Miles was primarily a(n) A. new business specialist. B. prospector. C. order getter. D. order taker. E. sales support rep.

C

One of the disadvantages associated with personal selling is that A. cold calling is easier than direct mail advertising. B. a salesperson often changes the message based on consumers' needs. C. it is expensive. D. it can be directed toward those customers with the highest potential. E. it is structured and finite.

C

Retail salespeople should not __________ and assume that a person in the store cannot afford to purchase the store's products based on appearances. A. assume Murphy's Law is true B. run for the roses C. judge a book by its cover D. let sleeping dogs lie E. attempt to keep up with the Joneses

C

Salespeople should be evaluated and rewarded only for those activities and outcomes that A. generate the most income. B. increase the number of customers. C. fall under their control. D. reduce manufacturing costs. E. cut into competitors' sales.

C

Taylor loves the lifestyle associated with being a salesperson, allowing her to take a day off during the week and making it up on the weekend. She most likely values the __________ associated with creating her own schedule. A. structure B. role playing C. flexibility D. selling team approach E. compensation

C

The attitudes that Ryan's customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. He needs to convey ____________ by guaranteeing his work in writing. A. reliability B. responsiveness C. assurance D. empathy E. tangibles

C

Trade shows are a particularly good source of B2B sales leads because A. they are open to the general public. B. they are almost always sanctioned by the government. C. people who attend are interested in the products and services being offered. D. consumers tell retailers which shows to attend. E. they are an inexpensive way to generate leads.

C

Whether a salesperson will go through all five steps of the selling process depends on the sales situation and A. the use of sales representatives versus independent reps. B. the effectiveness of role playing. C. the buyer's readiness to purchase. D. the number of sales support personnel available. E. how the person was trained.

C

_________ involves the planning, direction, and control of personal selling activities, including recruitment, selection, training, motivation, compensation, and evaluation of members of the sales force. A. Human resources management B. Integrated marketing communications management C. Sales management D. Marketing management E. Sales administration

C

Boris tells a colleague all about a major prospect Boris plans to call on in the next few days and asks the colleague to pretend to be a customer while he makes his sales presentation. Boris and his colleague are engaged in A. requalifying leads. B. approach dynamics. C. closing the sale. D. role playing. E. cold calling.

D

For salespeople, __________ provide(s) a major contact point with customers in the follow-up stage of the selling process and an opportunity to build and improve relationships. A. trade shows B. cold calls C. preapproaches D. complaints E. telemarketing

D

Katerina is told by her sales manager, "Do whatever you need to do to get the sale," yet the company has ethical selling standards. Katerina faces the ethical problem of A. customer relationship management. B. sales force compensation inequity. C. limited commission reinforcement. D. mixed signals from her sales manager. E. unqualified lead generation. Katerina is told by her sales manager, "Do whatever you need to do to get the sale," yet the company has ethical selling standards. Katerina faces the ethical problem of A. customer relationship management. B. sales force compensation inequity. C. limited commission reinforcement. D. mixed signals from her sales manager. E. unqualified lead generation.

D

Naven knows that he needs to ask a series of questions early in his sales presentation, but he also knows that he A. should take control of the conversation. B. should only ask questions if he already knows the answers. C. needs to first determine whether the customer is an order getter or order taker. D. needs to listen carefully to the answers. E. should follow a strict structure with his questions.

D

Often the best way to handle customers' reservations is to relax, listen, and A. reassess your preapproach strategy. B. consider outsourcing. C. immediately call your sales support team. D. ask questions to clarify the issues. E. reevaluate your expected order.

D

Personal selling can take place in all of the following situations EXCEPT A. face-to-face. B. over the Internet. C. by telephone. D. through newspaper ads. E. video teleconferencing.

D

Regina has made the same sales presentation twice a day for almost a month. At first, the presentation seemed to flow nicely but lately it has not seemed as effortless as it initially was. Regina might ask another sales rep to participate in __________ and critique her presentation. A. requalifying leads B. approach dynamics C. closing the sale D. role playing E. cold calling

D

Sales representatives are often compensated, at least in part, on a percentage of the sales revenue. This percentage is known as a A. bonus. B. sales increment. C. base salary. D. commission. E. finder's fee.

D

Sally has been having a difficult time working with a particular buyer while using the personal selling process, and she has asked her manager, Chris, for some ideas about how to close the sale effectively. Chris asks her a number of questions to help sort out the difficulties. Which of the following questions would Chris be LEAST likely to ask? A. "What does the buyer's body language tell you about her readiness to buy?" B. "Did you skip any steps in the process?" C. "Are there any reservations that have not been addressed to the buyer's satisfaction?" D. "Have you completed the follow-up to ease the buyer's mind?" E. "Should you go back to an earlier stage in the process and start the process over from there?"

D

Sue spends much of her time checking inventories, processing straight rebuys, and making sure that everything is going smoothly. Sue is primarily a(n) A. business development specialist. B. caretaker rep. C. order getter. D. order taker. E. sales support rep.

D

Which of the following is NOT considered typical financial compensation for sales representatives? A. commissions B. salaries C. bonuses D. extra vacation days E. sales contests

D

Yara has identified an attractive potential customer for her biodiesel home power system. She knows the customer is concerned about the environment and has considerable financial resources. The customer is also a respected leader among wealthy environmentalists in the area. Next Yara will A. evaluate alternative systems available from competitors to see which is best for the customer. B. send the customer a list of frequently mentioned objections and responses to each. C. decide whether she wants to contact the customer. D. establish goals for meeting with the customer. E. call the customer and offer a first-time discount.

D

__________ is a method of prospecting in which salespeople telephone or visit potential customers without appointments. A. Qualified lead calling B. Integrated sales support C. Relationship selling D. Cold calling E. Role reversal selling

D

__________ is a sales philosophy and process that emphasizes a commitment to maintaining and investing in long-term, mutually beneficial business relationships. A. Organizational buying B. Cold calling C. Psychographic selling D. Relationship selling E. Sales management

D

After exchanging greetings and getting to know the customer a bit in an initial sales call, the first goal of a sales presentation is to A. close the sale. B. offer alternatives. C. estimate the total cost to the customer. D. requalify the customer. E. create interest.

E

Bridgette went to Gap ready to buy a new blouse, but was not sure which color or style she wanted. The sales representative sensing Bridgette's buying mode, most likely began with the __________ stage of the selling process. A. generate leads B. preapproach C. closing the sale D. follow-up E. sales presentation

E

David's firm had grown steadily and the products and systems had become more and more complicated. He had been a star representative and had personally serviced and developed all his accounts. In the past year or so, David and his sales colleagues have been changing their approach due to the sales growth and increasing product complexity. Customer relationships are now being handled more and more by __________, which is typical of firms experiencing this kind of growth. A. manufacturer's representatives B. brokers C. sales administrators D. junior sales reps E. selling teams

E

In the selling process, the saying, "It ain't over till it's over," refers to the __________ stage of the process. A. generating and qualifying leads B. preapproach C. sales presentation D. closing the sale E. follow-up

E

Like any effective salesperson, Frazer walks into a customer's office, shakes hands, looks the customer in the eye, and smiles. After exchanging pleasantries, Frazer will immediately try to create interest in his company's product and establish A. which type of follow-up will be needed. B. how much time has been allocated for the presentation. C. which of the alternative products to demonstrate. D. whether to quote a full price or discount price. E. where the customer is in the buying process.

E

Often, inexperienced salespeople mistakenly believe that during the sales call, they should A. listen carefully to the customer. B. pay attention to body language. C. note the office environment. D. act positively. E. do all the talking.

E

Sales representatives add value for customers by doing all of the following EXCEPT A. educating them about the firm's products. B. providing advice on solving business problems. C. saving them time. D. simplifying communication with the firm. E. reducing the firm's marketing costs.

E

Thanh is starting a career in selling, but he eventually wants to become a senior manager. A selling career may help Thanh to achieve that goal by providing A. structure. B. scheduling flexibility. C. job security. D. income. E. visibility to management.

E

The attitudes that Ryan's customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. He needs to demonstrate the ____________ dimension of service quality by showing consistently well-maintained yards with neat, professional personnel. A. reliability B. responsiveness C. assurance D. empathy E. tangibles

E

The best way for sales managers to instill ethical behavior in the sales force is to A. provide extensive ethical training. B. use only straight salary and no commissions. C. employ a sales ethics forecaster. D. never use telemarketing. E. lead by example.

E

When a plumbing contractor drove up to Bill's house in a brand new Mercedes, Bill decided this person would be too high-priced even before the plumbing contractor offered his bid. Bill made the mistake of A. assuming Murphy's Law is true. B. anticipating his preapproach. C. not overcoming reservations. D. closing the sale too early. E. making an assumption of cost based on appearances.

E

Geraldine is in NEC's sales training program. She will probably be taught that all a salesperson needs to do is ask questions.

False

It is the company's responsibility, not the salesperson's, to ensure that all dealings with the customer are ethical and legal.

False

Manufacturers' representatives are a firm's senior sales employees.

False

Marketing executives, by a seven to one margin, believe that salespeople are born, not made.

False

Online sales training is used to replace the one-on-one interaction of on-the-job training for advanced selling skills.

False

Potential customers are called marks

False

Regarding ethical issues, the most important thing a company can do is to have written formal guidelines for common ethical situations

False

The first step in the personal selling process is the preapproach

False

The sales process always proceeds through each of the five steps

False

The sales reward is more important than the way in which it is operationalized.

False

Whereas objective measures seek to assess salespeople's behavior, subjective measures are quantitative.

False

Almost everyone is engaged in some form of selling.

True

Ethical and legal issues are likely to arise between the sales force and corporate policy when the salespeople become conflicted between doing what they believe is ethical and what their company asks them to do to make a sale.

True

Firms that use personal selling do so because the benefits exceed the costs

True

Good salespeople know the types of reservations buyers are likely to raise

True

If it is a company's policy to intentionally mislead potential customers about some aspect of a product, a sales rep that carries out this policy by misleading the customer can be held legally accountable.

True

If you are hired as a sales manager, you will be responsible for recruiting, selecting, training, motivating, compensating, and evaluating the sales force

True

If you had a small business and needed a sales force but did not wish to hire anyone, you could use the services of an independent agent.

True

Mary visited an office building and went door to door to hand out business cards and sell office products. Mary was making cold calls

True

One of the benefits of careers in sales is flexibility in scheduling.

True

One of the major responsibilities of being a sales rep is being the frontline emissary for one's firm.

True

Retail salespeople should never judge a book by its cover.

True

Sales is among the highest-paying careers for college graduates

True

The best way to avoid postsale problems is to contact customers right after they take possession of their products.

True

The four main types of financial rewards for sales representatives are salaries, commissions, bonuses, and sales contests.

True