Selling Strategically Exam 3

Which of the following is the best example of a nondirective question? "Do you prefer the napkins to be 100 percent cotton or a cotton-polyester blend?" "What features are you interested in adding to your swimming pool?" "Will you want your new refrigerator delivered Monday or Tuesday?" "Would you agree that the Lexus is one of the best cars on the road today?" "Did I understand you to say that your family has never taken a vacation?"

"What features are you interested in adding to your swimming pool?"

Which of the following is the best example of a nondirective question? "Will you want your new refrigerator delivered Monday or Tuesday?" "What features are you interested in adding to your swimming pool?" "Do you prefer the napkins to be 100 percent cotton or a cotton-polyester blend?" "Did I understand you to say that your family has never taken a vacation?" "Would you agree that the Lexus is one of the best cars on the road today?"

"What features are you interested in adding to your swimming pool?"

Which of the following statements about buying signals is TRUE? A buying signal occurs when a prospect carefully scrutinizes the salesperson's product. Buying signals are always nonverbal. Buying signals indicate the prospect is ready to voice objections. A buying signal is always communicated orally. Buying signals hint the prospect is in the interest stage of the buying process.

A buying signal occurs when a prospect carefully scrutinizes the salesperson's product.

All of the following statements reflect sales managers' expectations of new salespeople, EXCEPT: A salesperson should not take initiatives. A salesperson should leverage internal resources. A salesperson should be honest and ethical. A salesperson should understand attitude. A salesperson should accept feedback and coaching.

A salesperson should not take initiatives.

During the sales presentation for the CNC heavy-duty router, the salesperson asks, "Do you prefer the 4-foot-by-4-foot or the 4-foot-by-8-foot table size router?" The prospect responds, "Before I make my decision, tell me more about the motor that's on this router." Later during the presentation, the salesperson says, "Do you want me to have the router delivered on Friday or Monday?" When the prospect says, "Monday," the salesperson knows he has closed the sale. Which method of closing does the salesperson try the first time? Assumptive Standing-room-only Alternative-choice Technology Continuous-agreement

Alternative-choice

While you are discussing the energy efficiency of your company's golf carts with a prospect, she questions whether your carts are heavier than that of your competitor's. You are aware that your carts are slightly heavier than the competitor's carts. What should you do about this objection? Inform the customer that weight is not an important parameter and proceed with the presentation. Ignore it and continue as you had planned. Answer the question and proceed with the presentation. Pass over it for now and cover it just before the close. Ignore it and talk a little faster to regain control of the sales interview.

Answer the question and proceed with the presentation.

Which of the following is the most suitable rapport topic for ongoing meetings with prospects? Ask about the activities over a period of time (vacation, previous weekend, etc.) Ask for perceptions about a business topic or trend Ask about the progress on a project that the buyer previously shared with you. Ask about work history Ask about their interests (hobbies, sports, activities, etc.)

Ask about the progress on a project that the buyer previously shared with you.

Stage Technologies is a London-based company that supplies engineering solutions for the entertainment industry. It has helped the boy-band Westlife make a flying entrance onto stage and provided stage-rigging packages for Princess Cruise vessels. The company was established in 1994 after a couple of production designers decided that the automation of theater productions could be done more safely and more efficiently by using modular production rather than the old "build-as-needed" formula. The company installs wenches, stage lifts, and other equipment commonly used in stage productions. The equipment is designed so it can be operated from a single console without awkward or heavy lifting. Both opera companies and theaters see the benefit of such a system, but many are reluctant to buy because of perceived costs. John Hastie and Mark Ager, the company's best salespeople, must design sales presentations that address these concerns. What kind of a close would Hastie be using if during the presentation, he told the theater manager, "Your theater is world-renowned for its attention to production details?" Continuous-agreement Alternative-choice Technology Standing-room-only Compliment

Compliment

Which of the following statements about the use of demonstrations in sales presentations is true? Industrial product presentations require demonstrations. Rehearsed demonstrations bore prospects. Demonstrations do not backfire when a product is well-made. Demonstrations should be appropriate and appear natural. Effective demonstrations involve complex products for end users.

Demonstrations should be appropriate and appear natural.

Which of the following is NOT a correct statement regarding visual aids? Visuals should contain succinct, logical information that will help the customer remember key benefits. Sometimes, buyers use visuals provided to them by salespeople to convince their supervisor or management team. Effective visuals tend to reduce the clutter on the slide. Effective visuals interpret data and analysis. Effective visuals only garner attention and they do not have an objective.

Effective visuals only garner attention and they do not have an objective.

Lowell is anticipating an objection from his prospect concerning the quality of the adhesives that his company sells. He plans to weave into the early part of his presentation the information about the product's recent "best buy" rating from a consumer information magazine before the prospect can bring up the quality issue. What method is he using for meeting this objection? Postponing Forestalling Circular logic Stalling Objection procrastination

Forestalling

Which type of proof statement would be best for a salesperson trying to convince a current customer to place a larger order? Guarantees and warranties Research results from independent studies Proof results of the seller Customer testimonials Past sales figures of the buyer

Past sales figures of the buyer

Which of the following is one of the elements of the salesperson's presentation mix? Proof Conviction Knowledge Trial close Questions

Proof Persuasive communication, Participation, Proof, Demonstration, Dramatization, Visual aids

Which of the following is most likely true about proof statements? Company proof results are the most credible type of proof statements. Survey results from magazines are invalid proof statements. Proof statements encourage two-way communication with customers. Proof statements can substantiate a salesperson's product claims. Past sales records are weak proof statements and infrequently used.

Proof statements can substantiate a salesperson's product claims.

Jack Dane, an insurance salesperson, approaches a prospect with the words, "Hello Mr. Dean, your brother suggested I contact you concerning our new life policies." What type of approach statement is Jack Dane using? Introductory approach Complimentary approach Referral approach Customer benefit approach Multi-question approach

Referral approach

_____ marketing is based on the idea that important customers require constant attention. Quality Partnership Transaction Relationship Transformational

Relationship

"You're saying that automobile quality and service are less important to you than price?" is an example of what category of question? Direct Nondirective Rephrasing Redirect Product-specific

Rephrasing

Dane Geoffrey sells pollution masks. He asks a prospect," Did you know that five out of ten people die of lung cancer each year?" Identify the approach used by Dane. Curiosity Product Opinion Shock Customer benefit

Shock

_______ objections are simply a smoke screen designed to get rid of a salesperson. Stalling Product Hidden Money No-need

Stalling

Approach techniques can be grouped into three general categories. These three categories are: Question, compliment and benefit Participative, standard and benefit Probe, parry and thrust Compliment, referral and participative Statement, demonstration and question

Statement, demonstration and question

According to the text, which close is especially useful as a secondary or backup close? Alternative-choice Minor-points T-account Compliment Assumptive

T-account

Which of the following is NOT a reason why a customer might be dissatisfied with a product? Product was not delivered by the specified date. Customer believed the product could perform a function that it cannot. Product delivered was different from the one ordered. The product performed an additional, unadvertised function. Discounts offered by the salesperson were not given by the manufacturer.

The product performed an additional, unadvertised function.

You are a home appliance salesperson. One of your customers wants his television to be repaired on a holiday, but the company service manager is on vacation. The company regulations say that without written consent from the service manager, service engineers are not allowed to work on holidays. How would you handle this situation? Provide service without approval and without pay. Advise the customer to seek the help of a freelance service person. Inform the customer that the company policies are against such a service. Ignore the customer's request until the service manager returns. Try to obtain approval by phone from the service manager or a higher authority.

Try to obtain approval by phone from the service manager or a higher authority.

John Devos wants to give a presentation to retailers on the new line of angular washing machines launched by his company. At what stage in the presentation should John include some tips for selling these washing machines to end users? While discussing the FAB of the product. At the end of his presentation. While explaining the business proposition. While presenting the marketing plan. Before discussing the FAB of the product.

While presenting the marketing plan.

"To increase the product assortment purchased by current customers by two percent during the next three months," is an example of a(n): net product forecast. derived demand. future product quotient. market quota. account objective.

account objective.

Clearwater Hampers is a small British company that sells luxury food and drink in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where present-buying is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business. Clearwater has had several orders for more than a quarter of a million dollars. The company's leading salesperson, Peter Austin, is preparing the approach he will use during his first sales call with the CEO of Diamonite, a company that specializes in designing, manufacturing, and installing aircraft interiors for executives and heads of state. To use questions effectively in his approach, Austin needs to: steer clear of any preconceived answers. agree to everything the prospect says. anticipate the answers of the questions. remove all distractions from the immediate environment. create reciprocity.

anticipate the answers of the questions.

With an alternative-choice close, the salesperson: asks the prospect a series of benefit questions. assumes the prospect will buy more products in the future. gives the prospect a compliment. asks the prospect about the details of an order. gives the prospect the choice of buying or not buying.

asks the prospect about the details of an order.

Clearwater Hampers is a small British company that sells luxury food and drink in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where present-buying is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business. Clearwater has had several orders for more than a quarter of a million dollars. According to the company's leading salesperson, Peter Austin, "We have lots of repeat corporate customers as a result of the importance we place on getting the hampers out on time and filled with the right products." When Austin asks a prospective CEO to imagine how pleased his customers will be when they receive a custom-designed picnic hamper from Clearwater, Austin is using: a prestige suggestion. logical reasoning. empathy. counter-offering. autosuggestion.

autosuggestion.

The questions in the continuous-yes close should be: based on the weakness of the competition. designed to generate negative responses. included in a brief product questionnaire. open-ended to assess the prospect's needs. based on benefits of the specific product.

based on benefits of the specific product.

When using questions in the selling process, a salesperson should most likely: be able to anticipate the answers. be assertive, forceful, and positive. use primarily direct questions. concentrate on a product's advantages. accept that most prospects expect discounts.

be able to anticipate the answers.

The customer could be right when he/she: believes that he is right in spite of being wrong. asks the salesperson to set an illegal price. tempts the salesperson to conduct an unethical task. is dishonest. is asking for terms that are harmful for the seller.

believes that he is right in spite of being wrong.

According to the text, _______ should be the easiest part of the presentation. demonstrating the product closing the sale handling objections the approach prospecting

closing the sale

You are selling to a self-styled expert who is in a bad mood. According to your text, the _______ close is very effective. minor-points summary-of-benefits standing-room-only alternative-choice compliment

compliment

A salesperson enters a wholesale floral center and says, "Ms. Wong, in my job, I visit a lot of nurseries and I believe you grow the most beautiful flowers I have ever seen." This is an example of the _______ approach. demonstration referral complimentary product introductory

complimentary

When the wedding planner asked the engaged couple if they wanted an unforgettable wedding, the couple responded in the affirmative. Then the planner asked, "Do you want your guests to enjoy the day as much as you will?" The couple again said, "Yes." "You know one of the ways that people remember a wedding is by how wonderful the reception is. Do you want to have a memorable reception?" This time the couple nodded, "of course." Then the wedding planner asked, "Do you want me to use my best judgment to guarantee that you have a marvelous wedding day?" With that last remark answered in the affirmative, the couple signed a contract authorizing the wedding planner to design their wedding festivities. The wedding consultant used a(n) _______ close. serial benefit close alternative-close summary-of-benefits T-account continuous-yes

continuous-yes

A salesperson would most likely refuse to handle a complaint if the: customer complaint is about discounts. customer is being dishonest. customer says that the product delivered is unsalable. customer is wrong. customer complains that the quality of the product is low.

customer is being dishonest.

If Janae says to her prospect, "No. Your data is wrong. The Model K2R has a superior engine and will last twice as long as my competitor's model." Janae is using the _______ technique for handling a prospect's objection. direct denial boomerang dodge compensation five-question sequence

direct denial

When the appliance salesperson said, "Based on the features you desire, I suggest you buy the self-cleaning Hotpoint oven," the salesperson was making a(n): counter suggestion. direct suggestion. suggestive proposition. autosuggestion. prestige suggestion.

direct suggestion.

Knowing his prospect would be concerned about the possibility of contamination of the foods he was processing with his packing equipment, Alec opened by saying, "To prove to you the conveyer belt lubricant I'm offering you is non-toxic, I'm going to eat a spoon-full right now." This theatrical presentation is an example of: dramatization. sample advertising. analogy marketing. industrial proof. competitive advantage.

dramatization.

A practical objection is termed as a major objection. true false

false

A salesperson should not attempt to close a sale at the early stages of the presentation even if it appears that the prospect is ready to buy. false true

false

A salesperson should refer to the competition at length during the approach and more briefly in trial closings. true false

false

A textbook salesperson who says, "Instructors at Harvard and Yale really like this new approach to marketing," is using a suggestive proposition. true false

false

Effective salespeople remember that building and maintaining relationships does not necessarily require the mutual investment of resources. true false

false

If you are 100 percent sure that you cannot overcome an objection, never ask for the order. true false

false

In order to make the sale, it is not necessary to get a prospect to participate in the sales presentation. false true

false

The actual product may not be considered as a visual aid to use during a sales presentation? true false

false

The difference between cost of goods sold and sales is the net profit on sales revenue. false true

false

During the approach, a salesperson following Core Principles should: eliminate distractions for the prospect. ask the prospect direct questions. focus on the needs of the prospect. use the showmanship approach. implement creative imagery.

focus on the needs of the prospect.

Early in his presentation and before the hotel owner even mentioned cost, Andrew said, "You're going to notice that our shower curtains are higher priced because of their mildew-proofing that makes them last 50 percent longer than ordinary shower curtains." Andrew is using: forestalling. circular logic. product revelation. postponing. stalling.

forestalling.

A retail store buyer who dwells on trivial details like the placement of buttons or the stitching on the collar as the reason for not buying, more than likely has _______ objections. no-need forestalling hidden stalling pre-emptive

hidden

The two broad categories of objections are _______, which can never be solved and _______, which can be answered. potential objections; actual objections superficial objections; actual objections feigned objections; real objections hopeless objections; true objections generic objections; specialized objections

hopeless objections; true objections

Account analysis: is another form of value analysis. requires management oversight. begins with an estimate of a prospect's past sales. involves four general approaches. identifies accounts and their varying levels of sales potential.

identifies accounts and their varying levels of sales potential.

The customer benefit approach is most useful when the salesperson: sells a complex, technical product. sells newly redesigned products. develops a lengthy sales presentation. calls on a new, unfamiliar prospect. knows the prospect's critical needs.

knows the prospect's critical needs.

When James sells Tiromat Powerpak, a packaging machine for forming, filling and sealing food products, he begins by telling the customer, "Everyone in the food industry would like to save money and time on equipment cleaning." Then he says, "With the Tiromat Powerpak, you have a machine that can be disassembled for high-pressure cleaning and then reassembled more quickly than any other machine currently on the market." In conclusion, Tiromat says, "Thus, I believe that you need to buy our new Powerpak packaging machine." James is using _______ to sell his machines. sell sequence direct suggestion suggestive propositions logical reasoning persuasive communication

logical reasoning

The salesperson says, "Would you be willing to accept a limited 2-year warranty that only covers parts and not labor?" This is likely to be a _______ close. summary-of-benefits continuous-yes T-account technology negotiation

negotiation

Clearwater Hampers is a small British company that sells luxury food and drink in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where present-buying is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business. Clearwater has had several orders for more than a quarter of a million dollars. According to the company's leading salesperson, Peter Austin, "We have lots of repeat corporate customers as a result of the importance we place on getting the hampers out on time and filled with the right products." Peter Austin is extremely successful and the major reason for his success is the way he handles objections. He believes that effectively handling objections is the key to success in a sales profession. Today he is calling the CEO of Diamonite to make an important sales presentation. Austin is confident of handling the objections as he has prepared for the call. During the sales presentation, the CEO announced, "I think the prices for your individual hampers are too high." Austin replied, "Give me a minute and I'll show you how spending a relatively small amount of money can really impress your customers." Austin: postponed the handling of the objection. ignored the objection. used the showmanship method of dealing with objections. used empathetic denial to handle the objection. avoided the use of forestalling.

postponed the handling of the objection.

Assume that a salesperson has asked a prospect to buy three cases of Easter candy and the prospect responds with a stalling objection. The salesperson should then: agree and leave. present the benefits of purchasing now. restart the presentation. use a trial close. close again and test the reaction.

present the benefits of purchasing now.

The most commonly postponed objection is the _______ objection. product price forestalling no-need source

price

The second category of question in the SPIN approach is called the _______ question. personal-touch promotion product problem preamble

problem situation, problem, implication, need-payoff

Hank Farren is a salesperson at Outdoor World. He uses his time when there are no customers in the store to telephone people who have purchased camping, hunting, and fishing equipment from him recently to determine if they are satisfied and have future needs. This is an example of _______ selling. partnership transaction relationship benefit involved

relationship

Clearwater Hampers is a small British company that sells luxury food and drink in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where present-buying is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business. Clearwater has had several orders for more than a quarter of a million dollars. According to the company's leading salesperson, Peter Austin, "We have lots of repeat corporate customers as a result of the importance we place on getting the hampers out on time and filled with the right products." Peter Austin is extremely successful and the major reason for his success is the way he handles objections. He believes that effectively handling objections is the key to success in a sales profession. Today he is calling the CEO of Diamonite to make an important sales presentation. Austin is confident of handling the objections as he has prepared for the call. When the CEO said, "Our customers don't expect us to give them presents," Austin responded by saying, "You mean your customers don't deserve to be rewarded for their business?" Austin has: obtained a third-party answer. used the boomerang close. rephrased the objection. used forestalling. dodged the objection.

rephrased the objection.

A salesperson invests time in direct proportion to the actual or potential sales that the account represents. This relationship of sales volume to sales calls is the: basis for territory formation. basis for sales call allocation. break-even point. sales response function. correlation of effort and skill.

sales response function.

While working with a customer at your weekend job in a furniture store, you notice the customer is closely examining a set of patio furniture. From your study of professional selling, you know that the customer is: prospecting. showing objections to the product. sending a buying signal. trying to be left alone. attempting to make a trial close.

sending a buying signal.

A salesperson for a security company walks into a prospect's office and says, "According to a recent FBI study, 10 percent of your employees have stolen something tangible from your company." The salesperson is most likely using the _______ approach. proof statement shock testimonial curiosity scare-tactic

shock

"As I understand it, you like the rotating handles, blade length, and weight of these pruning shears." The salesperson is using the _______ close. continuous-close minor-points assumptive summary-of-benefits alternative-choice

summary-of-benefits

A salesperson should control the sales presentation. true false

true

According to the Core Principles of Professional Sales, a salesperson should not close the sale if the product is not suitable for the customer. true false

true

Assumptive close is not generally used for customers who do not have a good relationship with the salesperson. true false

true

Break-even volume per hour = Cost per hour/Gross profit percentage false true

true

Example of proof statements include past sales figures, independent research results and testimonials. true false

true

In planning a sales presentation, the salesperson should think of reasons why a prospect might not buy. false true

true

The customer should be given the benefit of doubt even if the salesperson feels that the customer is dishonest. true false

true

The question close focuses on having the buyer make a key decision. false true

true

Your ability to understand what's causing your emotion is part of your emotional intelligence. false true

true

All of the following are the most important traits professional buyers find in their top salespeople EXCEPT: thoroughness and follow-through after the sale. preparation of sales calls. willingness to find out the prices of the competition. willingness to go to bat for the buyer within the supplier's firm. knowledge of the firm's product line.

willingness to find out the prices of the competition.