Marketing Final #15
In relationship selling, the sales rep typically attempts to solve a customer's problem by presenting a solution to the customer (or potential customer). What is this solution presentation known as? a. the sales pitch b. the sales proposal c. the client solution d. the presentation
B
According to the text, as of 2005, what percentage of all Canadian companies sold products/services on-line? a. 47 percent b. 27 percent c. 67 percent d. 7 percent
D
When a salesperson asks for the sale, what is he or she doing? a. reducing cognitive dissonance b. creating long-term reciprocal arrangements c. qualifying the sale d. closing the sale
D
Which of the following are promotional exhibits set up at the retailer's location to build traffic, advertise the product, or induce impulse buying. (They are targeted to consumers.) a. direct demonstrations b. freestanding kiosks c. indirect demonstrations d. point-of-purchase displays
D
Which of the following is a price reduction offered by manufacturers to intermediaries such as wholesalers or retailers, in exchange for performance of specified functions or purchasing during special periods. a. pull money b. a functional discount c. a quantity discount d. a trade allowance
D
Which of the following is a process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional or civic organizations? a. lead intermediation b. people surfing c. looking for the golden parachute d. networking
D
Which of the following is a process that describes the homework that must be done by a salesperson before he or she contacts a prospect? a. pre-sales dialogue b. prospect customerization c. sale profiling procedure d. preapproach
D
Which of the following, also known as prospecting, is the identification of those firms and people most likely to buy the seller's offerings? a. lead generation b. lead qualification c. referral calling d. cold calling
A
Why are market or industry-based salesforce structures gaining popularity in today's competitive selling environment? a. Being conversant with one industry or market allows sales reps to "specialize" and offer better solutions to customers. b. Customers have demanded this type of sales structure due to historically poor track records of geographically based salesforces. c. They are easier and less time intensive for sales management to administer. d. They are less expensive to organize than traditional geographical-based structures.
A
Sales departments have traditionally been organized by all of the following EXCEPT which one? a. competitive nature b. product line c. geographic region d. industry
A
Through loyalty programs, shoppers receive discounts, alerts on new products, and other offers. What is the chief benefit for a retailer's future? a. detailed customer databases b. higher gross margins c. purchase dollars spent per visit increases d. "stolen" top customers from other retailers
A
What is the usual goal of sales promotion (regardless of what form it takes)? a. immediate purchase by consumers b. market share leadership c. return on investment d. economies of scale
A
When is personal selling more important than advertising and sales promotion? a. if the products being sold are technically complex b. if the product being sold has a low value c. if there are many customers for the product being sold d. if the buyers of the product are extremely dispersed
A
Which of the following is a determination of the customer's specific needs and wants and the range of options the customer has for satisfying them? a. needs assessment b. needs hierarchy c. stimulus-response continuum d. sales probability
A
Which of the following is a key leadership trait for effective sales leaders? a. an assertive personality b. an absence of ego c. a strong desire to avoid risk taking d. a strong need for reciprocity
A
Which of the following is an example of a point-of-purchase promotion? a. shelf talkers b. newspaper inserts c. sample booths d. television monitors in supermarket aisles
A
Which of the following is money offered by a manufacturer to employees of channel intermediaries to encourage them to sell the manufacturer's product? a. push money b. a trade allowance c. a selling deal d. a direct trade sales promotion
A
Which of the following is the process during which both the sales rep and the prospect offer special concessions in an attempt to arrive at a sales agreement? a. negotiation b. solution proposal c. haggling d. objection handling
A
Guilden Corporation has instructed its new salesperson that she is responsible for selling 5 display cases with infrared heating capability per week, plus calling on 5 current and 10 potential customers. These objectives comprise which of the following? a. her quota b. her promotion goal c. her contribution d. her potentiality
A A quota is a statement of sales objectives given to an individual salesperson.
A new salesperson generally receives training in which of the following? a. product knowledge b. nonselling duties, such as filling out production reports c. industry financials d. accounting procedures
A Accounting procedures and policies are not a typical part of a saleperson's domain.
Seacrest Corp. makes equipment for moving and stacking merchandise in warehouses. It would like to reduce its employee turnover and offer some incentive to sell more volume. The company is considering various pay plans. What should it use? a. a combination system b. a percentage of sales without salary c. a straight commission system d. an hourly wage
A Combination plans include both a guaranteed salary and an incentive or commission. The fixed component should also reduce turnover while the commission motivates sale reps to increase sales volume.
If management not only desires to provide its sales force with an incentive to sell but also wants control over other nonselling activities, what would be the best compensation plan? a. a combination system b. a bonus system c. a straight salary system d. progressive commission
A Combination systems help management control sales force while still providing motivation.
The Pillsbury Bake-Off requires people to submit a recipe using Pillsbury baking products. Finalists are brought to Pillsbury kitchens to bake their recipes so the winner of the cash prize can be chosen. What is this an example of? a. a contest b. a push money deal c. a sales promotion game d. a sweepstakes
A Contests are promotions in which participants use some skill or ability to compete for prizes.
Fiona is a sales associate at a store that sells new and used videos and DVDs. Recently, she was given a CD of the music from Vanity Fair to encourage her to suggest customers buy this movie. What is the CD an example of? a. a trade sales promotion b. free consumer sales promotion c. an intermediary rebate d. a trade allowance
A Free merchandise to sales intermediaries is an example of a trade promotion.
All salespeople who work for Lennox Industries are paid a percentage of their individual sales, and there is no guaranteed minimum pay. What type of plan does Lennox use? a. straight commission b. bonus c. combination pay d. salary plus drawing account
A In a straight commission plan, the salesperson receives no pay until a sale is made.
AutoFry is the leading manufacturer of ventless deep fryers for supermarket deli and food service operations. It has developed a new high-capacity fryer. The company has decided to purchase a mailing list of thousands of food service managers and to send out brochures with a detachable card that the managers can use to request more information. What is AutoFry involved in? a. lead generation b. sales presentation c. moving through the sales continuum d. lead qualification
A Lead generation is the identification of those firms and people most likely to buy the seller's offerings.
Trianka Patel has recently started a mailing service in a region that is showing tremendous industrial growth. Her business has the capability to print, fold, insert, and mail all types of letters. Her customers include three local retailers, a small university, and a regional cable television provider. She needs more customers and plans to spend one day per week visiting businesses and introducing her services. What is she engaged in? a. personal selling b. research and development c. direct sales management d. sales promotion
A Personal selling is direct communication between a sales representative and one or more prospective purchasers for the purpose of making a sale. Students should realize that all professions have to sell.
What is an advantage personal selling has over other forms of promotion? a. It is easier to vary the message according to what the customer needs to know with personal selling. b. Personal selling is less expensive on a per contact basis. c. Personal selling is better for convenience products d. It is easier to direct the marketing effort to disgruntled customers with personal selling.
A Personal selling is more expensive than mass advertising or sales promotions when calculated on a per-person-contacted basis.
A men's health centre in Chicago offers free blood pressure tests, cholesterol screening tests, and prostate exams one day each year. What are these free health tests an example of? a. a free sample b. a premium c. a service commission d. a sponsorship
A Services can be sampled as easily as products can.
Which of the following would be a target for a trade sales promotion offered by Science Diet pet food? a. a Science Diet distributor b. children c. a dog food manufacturer d. dog shows
A Trade promotions are directed to members of the marketing channel, such as wholesalers and retailers.
Trade sales promotions support which of the following strategies? a. push b. pull c. hierarchical d. disintermediation
A Trade promotions push a product through the distribution channel.
How are "webinars" used in personal selling? a. to support relationship selling tasks b. to facilitate transactional selling c. to test market sales presentations d. to help consumers shop at on-line sites
A Webinars are on-line seminars that support selling tasks such as lead generation, client support, and sales training.
What is the most basic criterion for determining whether someone is a prospect for a product? a. size of buying centre b. a need that is not being satisfied c. degree of autonomy d. need for reciprocity
B
Where is more time spent in traditional selling than in relationship selling? a. designing and proposing solutions b. handling objections c. following up d. approaching the customer and probing needs
B
Which of the following comprises marketing communication activities in which a short-term incentive is offered to induce the purchase of a particular good or service? a. promotion b. sales promotion c. advertising d. publicity
B
Which of the following consists of determining which sales prospects have a recognized need, buying power, receptivity, and accessibility? a. lead reciprocity b. lead qualification c. prospect examination d. customerization
B
Which of the following 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. networking b. cold calling c. lead qualification d. lead follow-up
B
Which of the following is a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships? a. adaptive selling b. relationship selling c. stimulus-response selling d. needs-dependent selling
B
Which of the following is a statement of sales objectives, usually based on sales volume? a. breakeven statement b. quota c. order forecast d. account report
B
Whenever Hugo buys a soft drink at his nearby convenience store, he gets a stamp for the card that he carries in his wallet. When he has eight stamps, he can exchange the card for a free soda. What is this an example of? a. a loyalty incentive b. a frequent-buyer program c. a consumer allowance d. an in-store rebate
B A frequent buyer program rewards loyal customers for multiple purchases.
When Darrell purchased a five-kg bag of 9 Lives cat food, he received a free can of the manufacturer's new gourmet cat food. What is the can of cat food an example of? a. product placement b. a premium c. a loyalty incentive d. a trade sample
B A premium is an item offered, usually with proof of purchase, to the consumer.
When Craig purchased a VTech wireless mobile phone, he was able to mail in a proof-of-purchase and his cash register receipt to receive a cheque from VTech for $20. What did Craig receive? a. a functional discount b. a rebate c. a purchase allowance d. a trade allowance
B A rebate is a cash refund given for the purchase of a product during a specific period.
Schwinn Cycling and Fitness, Inc., is offering a chain of sporting goods superstores a 20 percent discount on all Schwinn bicycles if the stores will run their own special promotion on the new Schwinn Paramount Titanium bikes. What is Schwinn offering? a. a life cycle extension promotion b. a trade allowance c. a push money deal d. a product development deal
B A trade allowance is a price reduction offered by manufacturers to intermediaries such as wholesalers or retailers, in exchange for performance of specified functions or purchasing during special periods.
When Janey Ming purchased a subscription to Western Living magazine, she received a free cookbook entitled Christmas Cookies. What is the cookbook an example of? a. a trade sample b. a premium c. a contest d. a loyalty incentive
B An extra item offered to consumers along with their purchase is a premium.
The salespeople at Manitoba Supplies, Inc., spend most of their time filling out information reports, calling on small customers, and dispensing product information. Because of these required activities, Manitoba should compensate its sales force using which of the following? a. a straight commission system b. a straight salary system c. a percentage of sales plan d. a combination pay plan
B Because of all the nonselling activities, these salespeople will need guaranteed straight salary.
According to the text, which of the following statements about contests and sweepstakes is true? a. Contests are generally effective tools for creating long-term relationships with customers. b. Sweepstakes usually draw about 10 times more participants than contests. c. Contests depend on luck, and participation is free. d. Sweepstakes are promotions that require participants to exhibit some skill.
B Contests require participants to have some skill. Sweepstakes are based on chance, and as such have resulted in some discussion as to their ethics. Neither contests nor sweepstakes should be used if the marketer's objective is to create a long-term relationship with its customers.
According to the text, which of the following statements about on-line sales promotions is true? a. There is no way for a marketer to build long-term, mutually beneficial relationships with customers on-line. b. Internet sales promotions are more effective and cost efficient at generating responses than their offline counterparts. c. One of the few types of sales promotion that cannot be used on-line is sampling. d. Loyalty marketing programs are ineffective when used at websites to encourage traffic.
B Customer loyalty programs are very effective on Internet sites to build customer loyalty. Sampling is a sales promotion option that can be effectively used by Internet businesses. On-line coupons have a higher redemption rate than offline ones.
Harland & Wolff in Belfast, North Ireland, makes ocean-going vessels. Last year its primary customer was the U.S. government. You would expect Harland & Wolff to rely on which of the following to promote its vessels? a. product innovations and direct marketing b. personal selling c. publicity d. advertising and sales promotion
B Harland & Wolff is selling a complex, high-value product to a few customers in a small area.
If a company needs more salespeople but cannot afford to hire until cash flow improves and sales increase, it would be best for the company to do which of the following? a. institute a wage-plus-bonus plan b. use a straight commission plan c. use a combination pay plan d. pay an hourly wage
B In a straight commission plan, the salesperson receives no pay until a sale is made.
For which of the following products would its producer be more likely to choose personal selling rather than advertising or sales promotion to market it? a. hammers b. insurance policies c. office supplies d. satellite programming guide
B Insurance policies are linguistically complex; buyers purchase only infrequently; and the product has a high value
Broyhill is offering the sales force at Meers Furniture Emporium a $50 reward for each Broyhill Pleasant Isle Living Room Collection sold in the next 30 days. What type of trade sales promotion is the $50? a. a direct commission b. push money c. a trade allowance d. a selling deal
B Intermediaries receive push money as a bonus for pushing the manufacturer's brand.
When Jeffrey began selling water treatment systems to consumers, he called friends, relatives, and college roommates to see if they were concerned about water quality and looking for a deal on a water treatment system for their home. What is this technique for generating leads called? a. quota driving b. networking c. qualifying d. cold calling
B Networking uses friends, business contacts, coworkers, and acquaintances as a means of meeting potential clients.
What do point-of-purchase promotions work best for? a. complex products that require technical knowledge to operate b. impulse buys c. high-involvement products d. purchases that require extensive decision making
B Point-of-purchase promotions are most effective for impulse items.
What is the first step in the sales management process? a. Determine the sales force size. b. Set sales objectives. c. Develop the compensation plan. d. Recruit the sales force.
B Sales goals and objectives, stated in clear numerical terms, are the base for all other plans.
Manitoba's Best is a new precooked meal-in-a-bag product made from bison meat. The company is having difficulty gaining consumer acceptance of its bison products even though bison is high in protein and low in cholesterol, fat, and calories. Those who have tried the meat have agreed that it is as tender and delicious as any choice steak, and it is less expensive. Manitoba's Best should focus on which of the following sales promotion tools? a. sponsorship b. sampling c. premiums d. in-pack couponing
B Sampling is most effective when the benefits of the new product are superior to those of existing products and the item has unique attributes that the customer must experience to believe.
When Monique took her home-delivered newspaper out of its plastic bag, she found a small box of Pepcid AC tablets in the bottom of the bag. The manufacturer of the new over-the-counter medication was using which form of sales promotion? a. introductory premium b. sampling c. pull product d. push product
B Sampling is most effective when the benefits of the new product are superior to those of existing products and the item has unique attributes that the customer must experience to believe.
WonderRoast makes rotisserie units for supermarket delicatessens. Its salesperson is demonstrating to a deli manager and her employees how easy it is to load and unload chicken in its Model 302 rotisserie. Which stage of the sale is this? a. follow-up b. development and proposal of solutions c. sales approach d. leading
B The sales presentation often involves a face-to-face presentation of the product or its benefits to a prospect.
Trade sales promotions are popular among manufacturers because they do all of the following EXCEPT which one? a. obtain wholesaler and retailer support for consumer sales promotions b. create long-term relationships between manufacturers and customers c. provide retailers with increased store traffic d. improve trade relations
B Trade shows are not typically used to create any type of long-term relationships.
Mountain Valley Springs Company, a producer of bottled water, sells a highly standardized product to consumers all over Canada. You would expect Mountain Valley Springs to rely on which of the following to promote its product? a. publicity and direct marketing b. advertising and sales promotion c. public relations d. personal selling
B With a standard product of low value, and widely dispersed customers, the producer should rely on advertising
A salesperson should learn as much as possible about the prospect's organization and its buyers. What is this process? a. the needs assessment b. prospecting c. the preapproach d. lead generation
C
According to the text, what is the current redemption rate of coupons nationwide in Canada? a. 39 percent b. .29 percent c. 2.9 percent d. 29 percent
C
According to the text, which of the following statements about recruiting and training the sales force is true? a. Salespeople are typically trained to be presenters. b. Sales training should begin after a long orientation. c. One of the most important traits to look for in a sales job candidate is ego strength. d. Training should be limited to just the new sales force members.
C
According to the text, which of the following statements about the impact of technology on personal selling is true? a. The use of technology severely limits the time a salesperson has to spend with his or her customers. b. Technology is a threat to job security for most salespeople. c. Technology is freeing salespeople from tedious administrative tasks, such as placing routine orders, shipping catalogues, and tracking orders. d. Technology has had no impact on personal selling.
C
Because of the high costs of coupons and their disappointing redemption rates, marketers of packaged goods are doing which of the following? a. distributing single-coupons that can be redeemed for exclusive brands b. Lengthening the time the coupon can be redeemed to give consumers more time to use them c. shortening the time the coupon can be redeemed to create a feeling of urgency d. issuing more coupons and using more everyday low pricing
C
For sales reps and sales managers alike, empathy skills are crucial to their success. What is empathy? a. the ability to skillfully negotiate b. the ability to motivate people c. the ability to listen and understand d. the ability to remain open to new ideas
C
How does personal selling differ from other forms of promotion? a. It is considerably less effective for obtaining sales and gaining a satisfied customer. b. Its costs can be less easily controlled. c. It is best able to handle customer objections as they arise. d. It does have to deal with unqualified customers.
C
How does personal selling differ from other forms of promotion? a. It wastes more sales resources than any other promotion. b. It is not as effective at satisfying customers. c. It can use a message customized to the immediate needs of the customers. d. It is best for selling simple, low-involvement products.
C
Salespeople ensure that delivery schedules are met, that the good or service performs as promised, and that buyers are trained in the use of the product. All of these functions are part of the final step in the selling process. What is that step called? a. the preapproach b. closing c. following up d. the sales presentation
C
What is a cash refund given to consumers for the purchase of a product during a specific time period? a. a trade discount b. a functional allowance c. a rebate d. a purchase allowance
C
What is the last step in the personal selling process? a. signing the contract b. closing the sale c. following up d. handling objections
C
Which of the following BEST describes the sales proposal and the sales presentation? a. They are a relatively inexpensive step in the sales process. b. They are the first step in the consultative selling process. c. They follow the sales approach. d. They are the first step in traditional selling process.
C
Which of the following is a written document or professional presentation that outlines how a company's product will meet or exceed the client's needs? a. a customer profile b. a needs assessment c. a sales proposal d. a qualifying document
C
Which of the following is direct communication between a sales representative and one or more prospective buyers, for the purpose of making a sale? a. sales promotion b. trade promotion c. personal selling d. direct marketing
C
Which of the following sales force structures are gaining popularity in today's competitive selling environment for companies that emphasize relationship selling? a. product based b. geographic based c. industry or market based d. customer based
C
Which type of promotion is directed at wholesalers and retailers? a. channel b. consumer c. trade d. customer
C
Sales leads are LEAST likely to be generated by which of the following? a. trade shows and conventions b. networking c. reorders d. cold calling
C A lead is a potential for a new sale, not a reorder.
The maker of Serta mattresses gives away a stuffed sheep with every purchase of a new mattress. What is the sheep an example of? a. a trade sample b. a loyalty incentive c. a premium d. a trade product
C A premium is an extra item offered to the consumer because the consumer has purchased some other product.
Ramas Llewelyn sells display shelving used in retail stores. He is asking his current customers for the names of other retail operations that might be interested in buying his company's shelving. What is he using to get his sales leads? a. networking b. noncompeting sales c. referrals d. cold calling
C A recommendation from a customer or business associate is a referral.
Why did the manufacturer of Claritin, a drug for allergy sufferers that was designed to not result in sleepiness, give physicians free samples of the drug? a. Trial-size containers are a form of advertising. b. It is an inexpensive promotional tool. c. This allows the consumer to try the product risk-free. d. This is an increasingly popular technique with manufacturers.
C A sample allows the consumer to try the product without investing any money or having a full-size container. It is an expensive strategy but works well if the trial product is significantly different and better than other products on the market.
Which of the following BEST describes consultative selling? a. It emphasizes closing the sale during the sales presentation. b. It uses limited sales planning. c. It sells advice, assistance, and counsel rather than products. d. It uses short-term follow-ups, which focus on product delivery.
C Consultative selling is also called relationship selling.
What are coupons, premiums, contests, free samples, and frequent buyer programs examples of? a. advertising b. trade sales promotion c. consumer sales promotion d. publicity
C Consumer sales promotion consists of short-term incentives to the final customer.
Tate sells coffee machines to offices. He is trying to conclude the sale of a large coffee machine at the headquarters of a large management consulting company. He finally offers free delivery and eight coffee grinders at half price if the consulting firm representative agrees to purchase eight systems from Tate—one for each of its regional offices. Which closing technique is Tate using? a. summary b. assumptive c. negotiation d. adaptive
C Negotiation involves offering special concessions during the closing of the sale.
Which of the following BEST describes relationship selling? a. It is also called adaptive selling. b. It is more concerned with making a sale than with developing customer trust. c. It emphasizes a win-win outcome. d. It is more typically used when selling low-involvement products in the consumer market.
C Relationship selling is also called consultative selling. It is more concerned with developing customer trust than with making a sale. Typically, industrial-type goods are sold using relationship selling.
Which of the following BEST describes sales promotion? a. It is a publicity tool. b. It is more difficult to measure than advertising. c. It offers a short-term incentive to buy. d. It is a smaller percentage of the promotion budget than advertising.
C Sales promotion is an activity in which a short-term incentive is offered to induce the purchase of a particular good or service.
Lead qualification consists of determining whether a prospect has which of the following? a. any resources b. a real or imagined need for a product c. any interest in a product d. a recognized need, buying power, and receptivity and accessibility
D
You are responsible for sales promotion for VitaBalls, a vitamin in a bubble-gum form. Your objectives are to encourage product trial and repurchase, encourage brand switching to your brand, and increase the amount of product purchased by current customers. You have used coupons in the past but found that many were sent to homes that were childless. To reach consumers who have an interest in your product, what should you do? a. hire a sales force b. introduce point-of-purchase displays c. continue with coupons through an on-line distributor d. use sweepstakes
C Some companies are experimenting with coupons on the Internet for a better redemption rate.
What is one of the major advantages to using point-of-purchase promotions? a. its ability to create long-term relationships with intermediaries b. its ability to create long-term relationships with customers c. the fact it has a captive audience d. its low costs
C Some examples of this consumer promotion are very expensive and, like most sales promotions, it is not designed to create a long-term relationship. P-O-P displays can be expensive. See examples in text.
The seven steps of the selling process closely follow which of the following? a. the process of forecasting and satisfying industry demand b. the traditional communications model c. the AIDA concept d. the hierarchy of needs
C The seven steps attempt to move the customer from attention to interest to desire, and finally to action.
You are responsible for sales promotion for a new brand of low-carb dairy products for people who are trying to lose weight. You need to introduce a new product to supermarket managers and owners, attract and identify new store contacts, and test market the response to your new product. Which type of trade promotion would most likely help you reach your objectives? a. direct sampling and store demonstrations b. trade allowances and direct incentives c. trade shows d. push money
C Trade shows are uniquely effective in introducing new products.
According to the text, which of the following statements about the relative amount of time spent in the selling process for different types of salespeople is true? a. A traditional salesperson would spend a lot of time following up the sale. b. A consultative salesperson would spend a lot of time closing the sale. c. A consultative salesperson would spend a lot of time generating leads. d. A relationship salesperson would spend a lot of time qualifying leads.
D
Co-branded credit cards are used in conjunction with which of the following? a. trade consumer promotion b. consumer discount programs c. functional consumer discount d. loyalty marketing programs
D
During the preapproach, what does the salesperson do? a. handle pricing objections b. ask for referrals c. create point-of-purchase displays d. learn as much as possible about the prospect's organization and its buyers
D
Often the task of lead qualification is handled by a telemarketing group or a sales support person who frees the sales representative from the time-consuming task by engaging in which of the following? a. database mining b. networking c. cold calling d. prequalification
D
What are the set of steps a salesperson goes through to sell a particular product? a. the sales presentation b. the sales continuum c. the stimulus-response hierarchy d. the sales process
D
What are the two types of sales promotion? a. elastic and inelastic b. hierarchical and functional c. introductory and maturity d. consumer and trade
D
Which of the following is typically a responsibility area for a sales manager? a. sales force administrative tasks b. advertising c. product design d. salespeople evaluation
D
Which sales promotions are targeted toward the ultimate consumer market? a. facilitating b. pull c. intermediary d. consumer
D
According to the text, which of the following statements about handling objections is true? a. A professional salesperson should not anticipate objections. b. A good salesperson dreads having to handle sales objections. c. Objections should not be used to close the sale. d. Salespeople should view objections as requests for more information.
D A good salesperson should anticipate objections and be prepared to answer them. The way an objection is handled can be used to close a sale. A good salesperson welcomes objections as a legitimate part of the purchase decision.
Devone Kanudsky, the junior salesperson for NU-VU Food Services Systems, has been given a list of phone numbers for all the food service managers in his province. Kanudsky has been instructed to call each number on the list and see if the respondent is interested in buying a NU-VU pizza/bread baking system. What is George doing? a. networking b. using cold referrals c. lead qualifying d. cold calling
D Cold calling is a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status.
What is one of the best methods for creating and rewarding brand loyalty among consumers who might otherwise switch to competing brands? a. a sweepstakes b. a directed coupon mailing c. a sampling program d. a loyalty marketing program
D Loyalty marketing or frequent-buyer programs induce brand loyalty by rewarding customers for multiple purchases.
Why are many marketers shortening the time in which a coupon can be redeemed? a. to track response rates b. to respond to claims that coupons adversely affect consumer behaviour c. to increase introductory sales d. to create a greater sense of urgency to redeem the coupon
D Many marketers believe a shortened time frame will increase the redemption rate.
Which of the following is an example of a trade sales promotion? a. pull money and training b. point-of-purchase displays c. premiums and coupons d. business meetings and conventions
D Premiums and coupons are directed at consumers.
Why do some marketers offer rebates instead of price reductions to induce short-term sales? a. Rebates have a much higher redemption rate than coupons. b. A price reduction of this type would have likely been an example of price discrimination. c. Rebates offer a more immediate reward than price reductions. d. Rebates are especially good at enticing purchases, but most consumers never bother to redeem them.
D Rebates are unrelated to price discriminations. From the consumer viewpoint, one of the disadvantages of a rebate is having to wait for the money. Rebates are used most often to attract customers that are classified as bargain hunters. Brand-loyal customers would not be as likely to be attracted to a rebate offer.
Jefferson Smurfit Company is a multi-billion-dollar supplier of packaging materials. One of its salespeople rearranged production schedules at three different plants to satisfy an unexpected demand for boxes from General Electric. The salesperson's actions are typical of the company's sales philosophy and indicate an emphasis on which of the following? a. transformational selling b. adaptive selling c. transactional buying d. relationship selling
D Relationship selling or consultative selling is designed to help customers achieve their goals.
AFLAC Insurance Company introduced a duck in its ads that said the company's name instead of "Quack." Since the advertising campaign began, AFLAC has created a duck premium, developed a line of clothing with the AFLAC duck, and used the AFLAC duck on its website. What has the AFLAC duck become a tool for? a. advocacy advertising b. comparative advertising c. push strategies d. sales promotions
D Sales promotion is an activity in which a short-term incentive is offered to induce the purchase of a particular good or service.
Unlike other sales promotion activities, what is the objective of a loyalty marketing program? a. to take away customers from the competition b. to appeal to bargain hunters who consistently buy the lowest-priced brand c. to modify customers' attitudes toward a product d. to build long-term, mutually beneficial relationships between a company and its key customers
D Sales promotions are more efficient at changing behaviour than attitudes.
For a powerful sales presentation, salespeople must do all of the following EXCEPT which one? a. use hand gestures and voice inflections b. use direct eye contact c. practise d. ask close-ended questions
D Salespeople need to ask open-ended questions.
Which of the following BEST describes the use of trade shows, conventions, and conferences to contact customers? a. It has been decreasing in recent years. b. It is usually directed toward the consumer goods market. c. It is most effective for mature products. d. It costs much less per potential customer than personal sales calls.
D Shows can be cost effective. The cost per potential customer contacted is estimated to be 56 percent less than that of a personal sales call.
Every year SC Johnson gives its customers an opportunity to register on-line or through the mail to win $5,000 for a room makeover. This prize is awarded on Room by Room, a show on HGTV that SC Johnson sponsors. What has SC Johnson designed? a. an annual loyalty incentive plan b. an annual contest c. an annual event sponsorship d. an annual sweepstakes
D Sweepstakes depends on chance or luck, and participation is usually free.
What should the consultative salesperson do when the prospect says, "Does that mean your product is 10 percent slower than your competitor's?" a. Conduct an unplanned needs assessment. b. Immediately leave the prospect's office. c. Modify his or her sales proposal. d. Handle the question as an objection.
D The client is objecting to the product.
Which of the following statements characterizes the traditional personal selling approach? a. Traditional selling uses long-term follow-ups that focus on product delivery. b. Traditional personal selling is decreasing in popularity. c. Salespeople sell advice and assistance. d. Proposals and presentations used emphasize pricing and product features.
D The traditional sales approach has not disappeared completely; however, it is being used less and less often by professional salespeople.