Exam 2 MK 330

If it cost a company $10 to produce a product, and the desired % return on the item is 33%, what is the markup price?

$13.33; unit cost of product +(Desired % return x unit cost)= $10 +(.33 x $10)=$10 + $3.33= $13.33

From the following list, select all the choices that accurately complete the following sentence: salespeople who embrace customers as solution co-creators recognize that

-Most solutions are of little value without customer input and involvement -it is very difficult to deliver customer value without customer involvement -customers can provide returns that go well beyond financial returns

from the following list, select all the choices that accurately complete the following sentence: Salespeople who embrace customers as solution co-creators recognize that

-customers can provide returns that go well beyond financial returns -it is very difficult to deliver customer value without customer involvement -most solutions are of little value without customer input and involvement

Select all the answers that correctly complete the following statement: Finding the path to a convincing solution requires a negotiator to consider

-ethical obligations to other parties in terms of what is fair and right -the economic outcomes of a potential course of action -the legal requirements that bear on the situation

Select all the answers that correctly complete the following sentence: Team negotiations are the norm in

-international trade -unionized collective bargaining

Select all the answers that correctly complete the following sentence: team negotiations are the norm in

-international trade -unionized collective bargaining

From the following list, select all the ways that a poorly designed sales compensation plan can wreak havoc on an organization. There is more than one correct answer.

-it can result in counter-productive or dysfunctional behavior -it can drive away top talent -it can drain profits -it can encourage fraud

Which of the following guidelines make good sense in terms of managing the challenges of video conferencing?

-keep your hand gestures within the frame so that your counterpart can see them -make sure the area behind you is neutral and professional -minimize sound and visual distractions on your end as much as possible -have a back up plain in case technical difficulties crop up

From the following list, select three limitations of video conferencing

-privacy and security challenges -Limited visibility -Technical difficulties

from the following list, select all the examples of fixed costs

-rent -advertising costs -salaries -insurance

Which of the following are the three important considerations in profitology?

-sales volume -price -cost

From the following list, select all the situations in which team negotiation is appropriate. There is more than one correct answer.

-the negotiation is complex, requiring a diverse set of knowledge, abilities, or expertise -you want to display your strength to the other side -you want to signal to the other side that you take the negotiation very seriously -the negotiation has great potential for creative, integrative solutions.

From the following list, select all of the key advantages that salespeople with high sales EQ enjoy

-they know how to cover up emotions such as irritation and anxiety that might turn off customers -they have greater patience and the ability to delay gratification -they are more motivated to perform prospecting duties -they remain positive in the face of repeated rejection

From the following list, select all of the drawbacks of salary-only compensation plans. there is more than one correct answer

-very succes company to se elsewhere -Many salespeople love the thrill of the high staked, competitive nature of earning a commission-which can be the reason they went into sales in the first place -without incentive compensation, reps are usually less motivated to exceed their sales quotas

From the following list, select all the situations in which team negotiation is appropriate. There is more than one correct answer.

-you want to signal to the other side that you take the negotiation very seriously -you want to display your strength to the other side -the negotiation has great potential for creative, integrative, solutions - the negotiation is complex, requiring a diverse set of knowledge, abilities, or expertise

From the following list, select all the situations in which team negotiation is appropriate. There is more than one correct answer.

-you want to sígnal to the other side that you take the negotiation very seriously -you want to display your strength to the other side - the negotiation has great potential for creative integrative solutions -the negotiation is complex requiring a diverse set of knowledge abilities or expertise

Which of the following systems is most beneficial in helping salespeople measure individual customer profitability?

Customer relationship management system

Customers are the passive recipients of information from salespeople, who offer a one-size-fits-all solution to customers problems

False

Customers are the passive recipients of information from salespeople, who offer a one-size-fits-all solution to customers' problems.

False

Customers tend to be aware of latent problems

False

Fixed costs vary with the number of units produced or sold

False

Organizations that cap sales compensation typically see an increase in the number of high-performing salespeople they have

False

Situational questions should be broad, focusing on the problem that needs to be solved at the company level

False

Situational questions tend to be very valuable to customers.

False

one of the biggest issues we see today is that most sales compensation plans are far too simplistic to meet the demand of modern business

False

examples of variable costs include salaries, rent, insurance, and advertising costs

False; examples of fixed costs

If the firm is implementing a markup pricing strategy, and the cost of the item is $15 and the desired margin is 20%, the salesperson must sell the item at $21 in order to generate the desired markup

False; markup price= unit cost of product + (Desired % return x unit cost), MP= $15 + (.2 x $15) = $18

Profitology assesses the extent to which the firm is able to use resources to generate revenue in excess in expense

False; profitology is the study of increasing profits through sales

Challenge of team negotiation

Group dynamics and relationships can be more difficult to identify and negotiate

When utilizing the ______ technique to gain commitment, the salesperson provides two legitimate options for the customer to choose between, along with guidance about which is more appropriate

alternative choice

Siddig doesnt like conflict, so he tries to tiptoe around it whenever possible. He knows that big issues may lead to difficulties in negotiation, so he changes the subject when they come up, and sometimes he cancels meetings that he expects to become heated or controversial. Siddig is best described as

avoider

Compromiser-style negotiators tend to use power-based tactics to intimidate others and control the process

false

In SPIN selling, situational questions are designed to help the customer and salesperson better understand the consequences arising from the uncovered problems

false

It is highly likely that artificial intelligence, or AI, will one day eliminate the need for human salespeople

false

Negotiation expert chris voss suggests that good initial preparation for each negotiation yields a 3:1 rate of return with respect to time and money saved renegotiating deals or clarifying implementation

false

Passive listening occurs when the salesperson is fully engaged with the customer, paying careful attention to all verbal and nonverbal cues and providing appropriate responses

false

Situational questions tend to be very valuable to customers

false

When utilizing the balance-sheet technique to gain commitment, the salesperson provides two legitimate options for the customer to choose between, along with guidance about which is more appropriate

false

if a sales manager wants to provide financial security for his or her salespeople, while still motivating the overall sales team to attain team-based goals, he should implement a base salary plus commission compensation plan

false

in SPIN selling, problem questions are designed to help the salesperson better understand the situation the customer is facing

false

the fixed amount of salary a salesperson earns is referred to as his or her incentive salary

false

An avoider negotiating style is low in assertiveness but high in empathy

false; avoider-type negotiators are low on both dimensions

Gross margin is calculated as net sales revenue minus total costs

false; gross margin is calculated as net sales revenue minus the cost of goods sold

According to the dual-concern model of conflict resolution, an individuals preferred method of dealing with conflict is based on two dimensions: assertiveness and humility

false; its assertiveness and empathy

The "dilemma of trust" refers to the idea that negotiators who shares all of their exact requirements and limits will never achieve an outcome better than their walk-away point

false; negotiator who believes everything the other party says can be manipulated by dishonesty

negotiations at early stages of the sales process tend to deal with more complex issues

false; tend to deal with simpler concerns

Costs that remain constant and do not vary based on the number of units produced or sold are _____ costs

fixed

Which of the following techniques is appropriate if a salesperson knows that a particular objection will arise?

forestall

What strategy does a salesperson implement when using the success-story technique?

giving an example of another customer who agreed to something similar and benefited from the decision

The greater patience and ability to delay______ that are associated with high-eq sales reps help them emotionally manage the uncertainties and frustrations that are often associated with buyers decision making process

gratification

The greater patient and ability to delay ______ that are associated with high EQ sales reps help them emotionally manage the uncertainties and frustrations that are often associated with buyers decision-making processes.

gratification

in the dual-concern model of conflict resolution, ________ includes no demands or concessions, downplaying issue importance, and ignoring requests and deadlines.

inaction

inappropriate information gathering

infiltration and spying

When using _____, a company numerically rank its best prospects

lead scoring

One strategy for generating alternatives in a negotiation, known as _____, can work especially well when the two sides identify two or more issues and then make a tradeoff within those issues in play

logrolling

Unethical traditional competitive bargaining

not disclosing your walk-way position

Negotiation _____ are the range of available choices that parties might consider to satisfy their respective interests

options

People tend to view other people's unethical behavior as caused by ________, while attributing the causes of their own behavior to ______

personality traits, outside factors

Negotiation _____ are the things that negotiators demand you give them and also the things on which they are not willing to budge

positions

An excellent method for facing a situation that triggers negative emotions is to

prepare for it advance through research, practice, and role-play

______ is the amount of something- money, time, or effort- that a buyer exchanges with a seller to obtain a product

price

Which types of questions are designed to help the customer and salesperson identify issues that need to be addressed?

problem questions

The study of increasing profit through sales is called

profitology

Flora knows how to build rapport and maintain strong connections with her colleagues, her managers, and her customers. in which dimension of sales eq is flora particularly strong?

relationship management

with ____ compensation structure, organizations decide ahead of time how much they will pay their salespeople

salary-only

Lead scoring is a valuable tool in sales because it should help firms and the salespeople who work for them reduce which of the following types of costs?

sellers opportunity costs

Which component of sales EQ refers to your ability to perceive what other people are thinking and feeling, even if you do not feel the same way?

social awareness

The _______ objection refers to the customer's concerns about the selling company, the salesperson, or perhaps both

source

Which tactic works well if the other party is under time pressure, which may lead that party to voluntarily offer concessions at the start of the negotiation?

stalling

the _____ technique for gaining commitment often works well with expressive (emotional) customers

success story

Adaption-innovation theory identifies two primary types of problem solvers: adaptors and innovators

true

An objection is an explicit expression by a buyer that a barrier exists between the current situation and what needs to be satisfied before buying

true

In a commission-only compensation structure, organizations pay salespeople based purely on their performance

true

Positive outcomes for integrative negotiations often depend on the development of rapport and trust among the parties

true

Prior to the outset of any negotiation, it is sensible for each party to agree to some broad, basic principles to govern the negotiation

true

Revenue is calculated as the number of units sold multiplied by the price charged to customers

true

The principle of ______ asks you to consider how you would advise others to act, and the principle of ______ asks you to consider your comfort with your actions if they were truthfully described in a newspaper

universality, publicity

which of the following factors should you focus upon when selecting a career path in sales and sales management?

you should focus on all of these things when selecting a career path in sales and sales management

From the following list, select all the items that are examples of yielding strategies.

-downplaying self-interest -ingratiation -low demands

On which two dimensions is the dual concern model based?

-intensity -empathy

_____ do not like to negotiate, and they dont do it unless its necessary. they adopt a "wait and see" approach, hoping that problems will solve themselves.

Avoiders

Which commitment-gaining technique is advisable in complicated sales situations or when dealing with analytical customers?

Balance sheet technique

The most frequent ethical issue in pricing involves predatory pricing

False; involves deception

Emotional _______ are the situations, words, and types of people that always seem to set you off

Triggers

"would it be possible for us to receive shipment at the end of the month instead of the beginning of the month?" is an example of a buying signal

True

A salary-only compensation plan is ideal for industries whose regulatory structure prohibits direct sales

True

Predictive analytics is the use of data, statistical algorithms, and machine-learning techniques to identify the likelihood of future outcomes based on historical data

True

Which of the following techniques is most appropriate when dealing with the price objection?

Value

Publicity

Would i be comfortable if my actions were fully and fairly described in the newspaper?

Reciprocity

Would i want others to treat me or someone close to me this way?

which of the following is not a benefit of a commission-only compensation structure

a commission-only compensation structure can create aggression and high competition within the sales team

Gaining emotional self-control begins with emotional self-

awareness

In terms of sales compensation, a ___ is the fixed amount of money paid to a salesperson by the organization in return for work performed

base salary

When utilizing the ______ technique to overcome an objection, the salesperson transitions the objection from a negative to a positive by discussing how the perceived negative should actually benefit the customer

boomerang

In terms of sales compensation, a ____ is a per-unit payout on sales beyond quota

commission

A _____ negotiation style is most beneficial when you need to reach a short-term agreement quickly

competitior

Which conflict style minimizes empathy and maximizes assertiveness, forcing others to accept one's point of view?

competitive

When trust is low or when the salesperson is engaged in a one-shot negotiation, a salesperson might consider making a _____ concession

contingent

Insecurity, arrogance, overconfidence, disappointment, and impatience are all examples of __________ emotions that salespeople must overcome

disruptive

misrepresentation

distorting information

legacy

does this action reflect how i want to be known and remembered

Emotional manipulation

faking negative emotions in order to influence the other party

Understanding negotiation processes is a secondary consideration for professional sellers

false

"Are you satisfied with your current level of customer satisfaction?" is an example of a closed question

true

Profit is calculated as revenue minus total cost

true

The easiest commission plans for salespeople to understand are absolute commission plans

true

When utilizing the success story technique to gain commitment, the salesperson tells the story of another customer who agreed to something similar and has benefited from the decisoin

true

a salespersons incentive salary typically includes benefits, bonuses, or any other potential compensation

true

if a salesperson receives commission payouts on sales not yet attained, he or she is receiving a recoverable draw

true

in SPIN selling, need-payoff questions are designed to help the customer and salesperson better understand the benefits available to the firm if the customer's problem were solved

true

in sales, the compensation mix captures how much of overall compensation is fixed versus how much is incentive-based

true

salary-only compensation plans are uncommon in sales

true

salespeople typically lead with open-ended questions to encourage conversation and then follow up with closed questions

true

In sales compensation plans, _____ is the source of most of the risk

variable pay

what is practical

what a negotiator can make happen in a given situation

What is prudent

what is wise in terms of achieving a desired outcome

What is ethical

what society defines as right or wrong

what is legal

what the law defines as acceptable practice

universality

would i advise anyone else in my position to act this way?

trusted friend

would i be comfortable telling my best friend, spouse, or children what i am doing?

In markup pricing, the marketers add a certain amount, usually a percentage, to the cost of the product, to set the final price

True; most commonly used pricing tactics

The term "customer ______" refers to customer input that results from the customer playing an active role in the problem-solving process

Co creation

The SPIN acronym refers to the four types of questions that effective salespeople ask: situational, problem, _____________ and need-payoff questions.

Implication

Benefit of team selling

Inclusion of several interested parties can help both sides more quickly reach a superior outcome