Sales management exam 1
An advantage to personal selling is not: A) Two way communication B) Reaching a massive number of people quickly C) Detailed explanation D) Direction towards qualified prospects E) All of the above
B) Reaching a massive number of people quickly
True or False: A sales response function generally indicates that a salesperson can always increase the sales volume of an account by calling on it more often
False
True or False: A simple geographic organization of a sales force generally works best when the product line is fairly broad and complex
False
True or False: According to findings of a study comparing successful with less successful salespeople, successful people will open the selling process by focusing on product benefits
False
True or False: Advertising is generally more effective than personal selling in closing the sale
False
True or False: As a result of cutting out the middle-man to reduce costs and prices, the number of channels through which consumer products can be sold has decreased in recent years
False
True or False: In general, the field sales manager's job is limited to sales forecasting and budgeting, training, and motivating sales personnel
False
True or False: It is not necessary to calculate the minimum account size when a sale is assured.
False
True or False: Multiple salespeople calling on the same customer is one of the drawbacks to customer specialization types of salesforce organization
False
True or False: Research has shown that the number of calls required to close a sale is about the same regardless of the type of product or service being sold
False
True or False: The ABC account classification procedure typically considers multiple factors when determining customer value
False
True or False: The purchasing practice of utilizing tiers is becoming a less popular practice.
False
True or False: Working with a telemarketing sales force is generally welcomed by the outside sales force
False
True or False: the advantage of advertising and sales promotion over other elements of the promotion mix is that they involve two-way communication
False
True or False: A strategic account program is essentially an effort to provide the kinds of services and products necessary to establish a long-term relationship with key customers
True
True or False: A technical buyer influence's primary focus in the purchasing process is on product or service speculations
True
True or False: An example of a functional specialist type sales organization is to have a new customer and retention specialist
True
True or False: An excellent way to identify a good sales advocate is to listen for the name of the person that other people in the buying center frequently mention
True
True or False: Break-even sales volume is the sales volume necessary to cover all direct selling expenses
True
True or False: Compared to less successful salespeople, very successful salespeople are more likely to use referrals from present customers to identify prospects
True
True or False: Customer Lifetime Value (CLV) uses an estimate of a customer's future sales
True
True or False: Direct marketing organizations such as Mary Kay Cosmetics and Cutco usually train their salespeople to use a standardized type of sales presentation
True
True or False: Executives generally expect more and more sales forces to be organized according to the type of customer
True
True or False: Independent sales agents are almost always compensated by paying a commission on sales
True
True or False: It is not uncommon for firms to turn independent sales agents to develop new markets
True
True or False: It is possible for one person to function in the roles of being the user, economic, and technical buyer for a particular purchase
True
True or False: It is usually necessary to establish rapport prior to engaging in customer needs analysis
True
True or False: Many companies service their small accounts by using telemarketing
True
True or False: Many salespeople are reluctant to close - the major reason being fear of rejection
True
True or False: One benefit of a customer specialized sales force is that they are able to be very knowledgable about their clients and the client's industry
True
True or False: One of the most serious problems with geographical organizations is that salespeople must sell the entire line, when they may not be equally knowledgable about all product lines.
True
True or False: One of the problems with organizing your company's sales force as generalists is that salespeople have a great deal of latitude to decide which products to emphasize
True
True or False: Recent advances in technology have created an explosion of new sales and services.
True
True or False: The first stage of the typical purchasing process in organizations is to recognize that a need exists
True
True or False: The minimum size customer that a salesperson should call on is closely related to the cost of making a sales call
True
True or False: The role of the user buyer is to determine the impact of the purchase on the job in which the product is used
True
True or False: Value analysis focuses on the relative costs of providing a necessary function or service
True
True or False: When engaging in an enterprise type customer relationship, it is typical for 80% or more of the selling time to focus on needs discovery
True
True or False: if a company's objective is to minimize total sales force costs, then a generalist sales force structure is the best option for organizing your sales force
True
True or False:An example of a problem-solution type of selling process is when clients pay EDS to perform an extended study of their information needs before recommending an informational system
True
The first step in determining the minimum customer size on which the sales force should call is to calculate the: A) cost per sales call. B) the growth potential of the customer. C) sales promotion budget needed. D) cost of product development. E) gather the customer's past sales record.
A) Cost per sales call
Which form of sales force organizations is expected to increase in popularity the most over the next five years? A) customer B) geographic C) product line D) functional E) both a and b above
A) Customer
Relatively smaller territories and reduced travel time and expenses are advantages related to which organizational approach? A) geographical B) product C) customer D) matrix E) functional
A) Geographical
"May I ask you a few questions about your current manufacturing processes?" is an example of a: A) permission question. B) fact-finding question. C) feeling-finding question. D) checking question. E) could be considered any of the above
A) Permission question
Which of the following is likely to be associated with a request for proposal (RFP)? A) a set of product specifications B) an extensive amount of client information C) an extensive search for qualified suppliers D) a fixed price the customer wants all suppliers to charge E) none of the above
A) a set of product specifications
User buyers are most likely to be concerned with which of the following issues? A) the operational advantages of the purchase B) dollar amount of the purchase C) the purchasing organization's business condition D) the potential organizational impact of the purchase E) the impact on the final consumer
A) the operational advantages of the purchase
J&J Medical has over 100 operating units producing products such as orthopedic implants, pharmaceuticals, and sutures. Based on this information, how is their sales force most likely to be organized? A) geographically B) along product lines C) customer specialization D) functional specialization E) both c and d above
B) Along product lines
In the selling process, which of the following activities would occur first (before all the others): A) answering objections. B) determining customer needs. C) delivering a sales presentation. D) closing the sale.
B) Determining the customer needs
"Who is tour current paper supplier?" is an example of a: A) permission question. B) fact-finding question. C) feeling-finding question. D) checking question. E) reaction question.
B) Fact finding question
In general, which is more effective in "closing" the sale? A) advertising B) personal selling C) selling promotion D) a, b, and c are equally effective
B) Personal selling
Although portfolio models offer several benefits over single factor models, a problem that still remains is: A) only one characteristic is used to classify accounts. B) the lack of an optimal solution to the allocation of sales calls. C) a lack of priorities for customer data collection and analysis. D) it does not promote forward-focused thinking by the sales team. E) none of the above.
B) the lack of an optimal solution to the allocation of sales calls
One common concern by manufacturers who use independent agents is: A) higher promotional support costs. B) the time needed to establish relationships with accounts in the territory. C) agents not devoting enough of their time to selling your product. D) both b and c above. E) none of the above.
C) Agents not devoting enough of their time to selling your product
When a customer views the supplier as a critical to the customer's competitive position, then the supplier would most likely be considered a ____________ Supplier? A) In B) Preferred C) Partner D) Extended E) Either c or d above
C) Partner
Most encyclopedia companies have their sales representatives use a prepared flip chart notebook and examples of their books during a sales presentation. Which type of selling method is this? A) needs satisfaction B) problem solution C) standardized presentation D) both a and c above E) none of the above
C) Standardized presentation
Which of the following buying center people is concerned with the product's specs, is focused on the present, is most likely to ask what a product does? A) Economic Buyer B) User Buyer C) Technical Buying Influence D) Outside Expert Buying Influence E) The Advocate
C) Technical Buying Influence
Given the following information: Compensation - $90,000 Direct Communications - $5,000 Automobile - $7,000 Meals & entertainment - $6,000 Overhead - $12,000 Promotional materials - $10,000 Calls per day - 5 Profit margin - 10% Net selling days - 200 20. The average cost per call is: A) $111.00 B) $113.00 C) $118.00 D) $130.00 E) none of the above are correct.
Cost per call= Direct selling expenses/ # of calls= 90+7+5+6+10/200X5= 118 C) $118.00
67. A company is considering whether to hire independent agents or develop its own sales force. Agents are paid a 4% commission, alternatively a company sales force would consist of 6 people paid a $25,000 salary each along with a 2% commission. A company sales force is economically viable if sales are forecasted to be: A) below $1,250,000. B) above $1,250,000. C) below $7,500,000. D) above $7,500,000.
D) Above $7,500,000 6X25000 = base salary, then find and add Least common multiple of 4% commission and 2% commission with base salary
Some common ways in which telemarketing is used by businesses include all of the following except: A) customer service - "800" numbers. B) prospecting and lead qualification. C) sales support - selling of services to compliment product purchases. D) sales training - answering salespeople's questions about specific products.
D) Sales training- answering salespeople's questions about specific products
A customer demographic that might be used in building a prospect profile might include: A) geographic location B) size of business C) purchasing preference of customer D) only a and b are correct E) a, b, and c are all correct
D) only a and b are correct - geographic location - size of business
In order for a prospect to be a qualified lead a salesperson must gather information about whether the prospect has: A) a genuine need for the product or service. B) the buying authority to purchase the product or service. C) the financial resources to purchase the product or service. D) only a and b above are true. E) a, b, and c above are all true.
E) A, B, and C above are all true. - a genuine need for the product or service. - the buying authority to purchase the product or service. - the financial resources to purchase the product or service.
When selling to an economic buying influence such as a chief executive officer, salespeople are likely to do which of the following? A) emphasize the contract's financial consequences for the organization B) discuss how the deal would improve the firm's competitive position C) discuss how corporate-wide contracts can reduce costs per unit to the buyer D) both a and b above E) all of the above
E) All of the above - emphasize the contract's financial consequences for the organization - discuss how the deal would improve the firm's competitive position - discuss how corporate wide contracts can reduce costs per unit to the buyer
Typical issues requiring coordination between the sales force and customer service include: A) equipment installation. B) warranty servicing. C) customer training on equipment. D) both a and b above. E) all of the above.
E) All of the above - equipment installation. - warranty servicing. - customer training on equipment.
Written sales proposals have the following advantage: A) less chance of misunderstanding because both parties do not have to rely on memory. B) improve communication to buying or executive committees. C) durability that allows multiple readings and evaluations. D) both a and b above. E) all of the above.
E) All of the above - less chance of misunderstanding because both parties do not have to rely on memory. - improve communication to buying or executive committees. - durability that allows multiple readings and evaluations.
Written sales proposals should discuss which of the following? A) reasons for changing something B) the incentives for changing C) confirm the confidence to invest in a solution D) lay out the solution E) all of the above
E) All of the above - reasons for changing something - the incentives for changing - confirm the confidence to invest in a solution - lay out the solution
Before meeting with a prospect, which of the following may be an important source of information: A) the prospect's business facilities. B) other salespeople. C) current customers. D) the internet E) all of the above
E) All of the above - the prospect's business facilities. - other salespeople. - current customers. - the internet
A viable approach to addressing the problem of customers who are too small to order generate enough sales volume to exceed the break-even sales volume is A) to increase prices to these customers. B) to decrease the number of calls made on these customers. C) to have brokers call on these customers. D) only a and b above are viable. E) a, b, and c are all viable.
E) a, b, and c are all viable - to increase prices to these customers. - to decrease the number of calls made on these customers. - to have brokers call on these customers.
True or False: The economic buyer controls the money to make a purchase
Trie