Chpt 17

Which of the following statements is true of cold calling? a. It refers to a recommendation from a customer or business associate. b. It is a process in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status. c. It is a process that describes the ''homework'' that must be done by a salesperson before he or she contacts a prospect. d. It refers to a process of determining potential clients from friends of customers.

b. It is a process in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status.

Which of the following is an advantage of personal selling over other forms of promotion? a. It becomes more effective when the number of prospective customers is more. b. It adds to the consistency of promotion by using the same sales message for each prospective customer. c. It is considerably more effective in obtaining a sale and gaining a satisfied customer. d. It is effectively directed toward prospective and non-prospective customers.

c. It is considerably more effective in obtaining a sale and gaining a satisfied customer.

Which of the following is correct about sales force training? a. Training does not take place in the field or by using online modules. b. It is done by giving compensation to employees. c. It cannot occur during sales meetings, annual meetings, or during the course of everyday business. d. Conducting job training in the field via a live sales call provides real world experience for a trainee.

d. Conducting job training in the field via a live sales call provides real world experience for a trainee.

Which of the following statements is true of prospecting? a. It is the process in which the salesperson ensures that the delivery schedules are met. b. It is a process that describes the ''homework'' that must be done by a salesperson before he or she contacts a prospect. c. It is the determination of a customer's specific needs and wants and the range of options the customer has for satisfying them. d. It is the identification of those firms and people most likely to buy a seller's offerings.

d. It is the identification of those firms and people most likely to buy a seller's offerings.

lead qualification

determination of a sales prospect's (1) recognized need, (2) buying power, and (3) receptivity and accessibility

campaign management

developing product or service offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships

assertiveness

effective salespeople have the ability to be firm in one to one negotiations, to lead the sales process, and to get their point across confidently without being overbearing or aggressive

empathetic

empathy- the ability to place oneself in someone else's shoes- enables salespeople to understand the client

risk taker

great salespeople are willing to put themselves in less than assured situations, and in doing so, often are able to close unlikely sales

creativity

great salespeople develop client soluntions in creative ways

ego strength

great salespeople should have a strong, healthy self-esteem and the ability to bounce back from rejection

lead generation, or prospecting

identification of those firms and people most likely to buy the seller's offerings

the industry

knowing the industry requires active research by the salesperson

the product or service

product knowledge is the cornerstone for conducting a successful needs analysis

buying power

Involves both authority to make the purchase decision and access to funds to pay for it

needs assessment

a determination of the customer's specific needs and wants and the range of options the customer has for satisfying them

cold calling

a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status

sales proposal

a formal written document or professional presentation that outlines how the salesperson's product or service will meet or exceed the prospect's needs

sales presentation

a meeting in which the salesperson presents a sales proposal to a prospective buyer

customer-centric

a philosophy under which the company customizes its product and service offering based on data generated through interactions between the customer and the company

networking

a process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations

Preapproach

a process that describes the "homework" that must be done by a salesperson before he or she contacts a prospect

referral

a recommendation to a salesperson from a customer or business associate

relationship selling (consultative selling)

a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships

quota

a statement of the salesperson's sales goals, usually based on sales volume

point-of-sale interactions

a touch point in stores or information kiosks that uses software to enable customers to easily provide information about themselves without feeling violated

touch points

areas of a business where customers have contact with the company and data might be gathered

______ is a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status. a. Referral b. Cold calling c. Lead qualification d. Network

b. Cold calling

capable of understanding complex concepts and ideas

quick thinking and comprehension allow salespeople to quickly grasp and sell new products or enter new sales areas

follow up

the final step of the selling process, in which the salesperson ensures delivery schedules are met, goods or services perform as promised, and the buyers' employees are properly trained to use the products

interaction

the point at which a customer and a company representative exchange information and develop learning relationships

knowledge management

the process by which customer information is centralized and shared in order to enhance the relationship between customers and the organization

negotiation

the process during which both the salesperson and the prospect offer special concessions in an attempt to arrive at a sales agreement

the competition

the salesperson must know as much about the competitor's company and products as he or she knows about his or her own company

customers and their needs

the salesperson should know more about customers than he knows about himself

sales process, or sales cycle

the set of steps a salesperson goes through in a partiular organization to sell a particular product or service

sense of urgency and competitiveness

these traits push their sales to completion as well as help them persuade people

sociable

wanting to interact with others is a necessary trait for great salespeople

a recognized need

The most basic criterion for determining whether someone is a prospect for a product is a need that is not being satisfied

receptivity and accessibility

The prospect must be willing to see the salesperson and be accessible to the salesperson

Which of the following statements is not true in regards to relationship selling? a. Although it adds value, relationship selling is usually more expensive than having to prospect for and sell to new customers. b. The salesperson and the customer work together to improve the customer's bottom line. c. Relationship selling usually results in more loyal customers who purchase from the company time after time. d. The salesperson becomes a partner and problem solver for their customer, offering advice when needed.

a. Although it adds value, relationship selling is usually more expensive than having to prospect for and sell to new customers.

Which of the following statements is an advantage of personal selling? a. The sales message can be varied according to the interests of each prospective customer. b. Continual sales force management and training are unnecessary. c. It provides a brief and less time-consuming explanation about a product. d. Cost per contact is much lesser than for mass forms of communication.

a. The sales message can be varied according to the interests of each prospective customer.

Under which conditions would personal selling become more important than other forms of promotion? (Check all that apply) a. When the product is more complex. b. When the number of potential customers becomes larger. c. When the value of the product grows. d. When customers are geographically dispersed.

a. When the product is more complex c. When the value of the product grows.

In regards to the sales force structure, organizing by market or industry can: (Check all that apply) a. allow salespeople to become experts in their fields. b. encourage collaboration with other departments in the company. c. can improve customer service. d. increase transactional, rather than relationship, selling.

a. allow salespeople to become experts in their fields. b. encourage collaboration with other departments in the company. c. can improve customer service

Identify the statement which is correct about lead qualification. a. It refers to a process in which a salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status. b. It refers to determining the recognized need, buying power, and receptivity and accessibility of a sales prospect. c. It refers to using friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations to identify potential clients. d. It refers to a process that describes the ''homework'' that must be done by a salesperson before he or she contacts a prospect.

b. It refers to determining the recognized need, buying power, and receptivity and accessibility of a sales prospect.

_____ is a process by which customer information is centralized and shared in order to enhance the relationship between customers and an organization. a. Customer profiling b. Knowledge management c. Negotiation d. Need profiling

b. Knowledge management

The sales environment: a. is always at the customer's place of business. b. changes constantly. c. is always at the salesperson's place of business. d. remains the same.

b. changes constantly.

Lewis, a salesperson at an automobile showroom, convinced one of his sales leads to buy the latest car in the showroom. Two weeks after the car was delivered to the buyer, Lewis calls the customer to check if he is satisfied with the car and his service. Upon hearing the satisfied reply, Lewis adds that he can be reached in case of any complaints in the future. In this case, Lewis is a. closing the sale. b. following-up with his customer. c. resolving his customer's complaint. d. handling objections from his customer.

b. following-up with his customer.

Disadvantages of relationship selling include: (Check all that apply) a. results in lower levels of customer satisfaction. b. requires highly skilled and knowledgeable salespeople. c. higher cost per presentation than other forms of promotion. d. difficulty in assessing the salesperson's performance.

b. requires highly skilled and knowledgeable salespeople. c. higher cost per presentation than other forms of promotion. d. difficulty in assessing the salesperson's performance.

_____ is the final step in the selling process, in which the salesperson ensures delivery schedules are met, goods or services perform as promised, and buyers' employees are properly trained to use the products. a. Sales analysis b. Handling objections c. Sales follow-up d. Closing the sale

c. Sales follow-up