CHAPTER ONE

T/F Salespeople coordinate the activities within their firms to solve customer problems.

True

T/F Selling analytics is an attempt to gain insights into customers by using data mining and analytic techniques.

True

Even though personal selling is the most expensive method of communication on a per-person-reached basis, businesses continue to use personal selling because of advantages in: A. flexibility. B. the number of people reached. C. credibility. D. efficiency. E. control over the content of publicity.

Flexibility

Robert works long hours in his firm, making calls to household consumers. Unlike other salespeople in his team, he is not required to visit customers' residences to sell products. He also handles the customer grievance helpline of his firm. Which of the following statements is true about Robert? A. Robert is an expert in field sales. B. Robert is a distributor salesperson. C. Robert is a manufacturer's agent. D. Robert is a missionary salesperson. E. Robert is an inside salesperson.

Inside salesperson

When All-Star Productions Inc. releases a new movie, it usually advertises on television, gives out sales promotion items at fast-food restaurants, creates a website for the movie, holds special showings, and encourages people to talk about the movie. This coordination of all the efforts is called: A. generative marketing. B. tactical marketing. C. integrated marketing communications. D. the marketing concept. E. relationship marketing.

Integrated Marketing Communications

Jennifer and Selena are employed by their firm to sell its products. Jennifer is required to go to the customer's residence and demonstrate the features and benefits of the products, whereas Selena is required to conduct sales by calling existing customers. Which of the following statements is most likely true about the scenario? A. Jennifer is a field salesperson. B. Selena will be required to be more creative than Jennifer in selling the firm's product. C. Selena has better communication skills than Jennifer. D. Jennifer is more agile than Selena. E. Selena is a manufacturer's agent.

Jennifer is a field salesperson

Which of the following products would most likely be the hardest for a new salesperson to sell? A. Laptops for students B. Horse trailers C. Management consulting services D. Office supplies to existing customers

Management consulting services

Manufacturers' Representatives Inc. (MRI) is an independent company that employs sales representatives to sell the products of many different producers. MRI's sales reps sell these products to wholesalers and retailers. MRI receives a commission from the producers for the products it sells. MRI is an example of a: A. manufacturers' agent. B. selling agent. C. missionary sales a

Manufacturers' agent

_____ work for a manufacturer and promote the manufacturer's products to other firms that buy the products from distributors or other manufacturers, not directly from the salesperson's firm. A. Distributor reps B. Industrial salespeople C. Missionary salespeople D. Trade partners E. Retail salespeople

Missionary salespeople

The difference between a distributor and a manufacturers' agent is that a manufacturers' agent: A. never owns the product. B. does not receive a commission for the services provided. C. does not work for more than one manufacturer. D. does not transmit the sales order to the manufacturer. E. never sells a service.

Never owns the product

To promote its products, Valerie's firm has always depended solely on advertising in the local newspaper and occasional direct mail programs. Valerie suggests using integrated marketing communications because: A. no single communication vehicle is free of weaknesses. B. it would reduce their advertising costs. C. a sustainable competitive advantage can only be derived from alternative advertising. D. it will lengthen their channels of distribution. E. it will serve as a competitive intelligence tool.

No single communication vehicle is free of weaknesses

Which of the following statements about salesperson relationships with customers and prospects is true? A. Selling to new prospects requires the same skills as selling to existing customers. B. Salespeople responsible for existing customers place more emphasis on selling products than on servicing and relationship building. C. Rejection is an inevitable part of making initial contacts with potential customers. D. To convince prospects to purchase a product they use regularly, salespeople need to be especially self-confident and aggressive.

Salespeople are responsible for existing customers place more emphasis on selling products than on servicing and relationship building.

Which of the following statements about how salespeople spend their time each week is true? A. Salespeople typically spend the least amount of time in an average week traveling and sitting in waiting areas. B. Most of the selling done by salespeople today is done over the telephone. C. Salespeople spend less than 2 hours per week on administrative tasks. D. Salespeople spend more time in meetings, working with support people in their companies, traveling, waiting for a sales interview, doing paperwork, and servicing customers than in face-to-face selling. E. None of these

Salespeople spend more time in meetings, working with support people in their companies, traveling, waiting for a sales interview, doing paperwork, and servicing customers than in face-to-face selling.

Which of the following is usually the first step in the selling process of a product? A. Planning for the sales call B. Explaining the benefits of the product to customers C. Searching for prospective customers D. Building partnering relationships with customers after the completion of sale E. Calculating the customer lifetime value of customers

Searching for prospective customers

The cost of a good sold by a seller is $7,500. The selling cost involved in the sale is $150 and the selling price is $8,250. The buyer's profit is $150. The seller's profit is _____. A. $500 B. $300 C. $750 D. $450 E. $600

$600

The selling price of a product is $8,000. The cost and hassle involved in buying the product is $175. The benefit received from the product to a buyer is labelled "A." The seller's profit is $400. In this case, which of the following equations will accurately calculate the buyer's profit? A. A + $8,000 B. $8,000 + $400 C. $8,000 - A D. A - ($8,000 + $175)

A - (8,000+175)

_____ sell products made by a number of manufacturers to businesses. A. Distributor salespeople B. Trade salespeople C. Runners D. Manufacturers' customer service representatives E. Retail salespeople

Distributor Salespeople

Compared with team selling, salesperson who work alone: A. have higher job satisfaction. B. have higher levels of emotional intelligence. C. spend more than 90 percent of their time in internal selling. D. have higher levels of confidence and optimism. E. have higher turnover intentions.

Have higher turnover intentions

Gwen is researching ways to sell her new product. She is considering Internet sales, hiring sales reps, using a manufacturer's rep, and several other options. Gwen is considering: A. her multi-channel mission. B. her go-to-market strategies. C. her customer-centric circle. D. the lifetime marketing value of her customers. E. her firm's integrated marketing communication system.

Her go-to-market strategies

T/F The financial rewards of selling are independent of the level of skill of the salesperson and the sophistication needed to do the job.

False

Which of the following is true of sales in today's world? A. Many buyers now are buying from the lowest-cost suppliers. B. Buyers are demanding 24/7 service. C. Many buyers now are building competitive advantages by maintaining a distant relationship with their suppliers. D. The salesperson's job ends as soon as the customer places an order. E. All of these

Buyers are demanding 24/7 service

When selling a product, the collection of buyer-specific benefits that a seller offers to a buyer is known as: A. customer value proposition. B. budget bogey. C. the seller's profit. D. customer lifetime value. E. the seller's kickbacks.

Customer Value Proposition

The set of people and organizations responsible for the flow of products and services from the producer to the ultimate consumer is called a firm's: A. selling function. B. advertising force. C. marketing organization. D. distribution channel. E. sales team.

Distribution Channel

When LeAnn called on a long-time customer, she realized that the man was upset about the loss of his pet and took the time to listen to his problem. She was able to sympathize with the customer's recent loss of a pet by using her: A. emotional intelligence. B. adaptive learning. C. environmental awareness. D. generative learning. E. behavioral intelligence.

Emotional intelligence

_____ is the ability to effectively understand and use one's own feelings and the feelings of people with whom one interacts. A. Emotional intelligence B. Adaptive learning C. Environmental awareness D. Generative learning E. Behavioral intelligence

Emotional intelligence

T/F A firm's products move from the manufacturer to the final user through a series of institutions called a production network.

False

T/F A missionary salesperson's job is to approach distributors and encourage them to sell the manufacturer's products.

False

T/F Advertising is the most costly method of communication for selling firms.

False

T/F The goal of selling is merely to promote a product or service.

False

Laura works for Seminole Textiles. As part of her job, she calls on upholsterers, towel and sheet manufacturers, and other customers of the Seminole distributors to encourage them to use more Seminole textiles which they would order from their distributor, not directly from Seminole. Laura is a: A. distributor rep. B. trade salesperson. C. missionary salesperson. D. trade partner. E. retail salesperson.

Missionary Salesperson

Salespeople are like entrepreneurs because: A. they do not have to invest in themselves. B. integrated marketing communications eliminate investment risk. C. manufacturers trust salespeople to be corporate-centric. D. of the unusual freedom and flexibility in doing their jobs. E. they have to spend a lot of time in a structured work environment.

Of the unusual freedom and flexibility in doing their jobs

Sandra's marketing strategy is a go-to-market strategy. She relies heavily on salespeople for marketing her products. Sandra's organization is a(n) _____. A. public relations organization B. organization that focuses exclusively on customer value C. sales force-intensive organization D. organization with a missionary strategy E. all of these

Sales force-intensive organization

Why does personal selling work better than other communication options available to firms selling in the business-to-business market? A. Personal selling employs more people in the United States than advertising. B. Salespeople are able to tailor unique messages for each prospective buyer. C. Firms in the United States have become particularly adept at hiring "born" salespeople. D. Personal selling is the cheapest form of promotion. E. Salespeople are proficient in all aspects of new product development.

Salespeople are able to tailor unique messages for each prospective buyer

One of the advantages of personal selling as compared to advertising is that: A. salespeople can be closely supervised. B. salespeople can become very persuasive, since they give an identical sales presentation to so many different people. C. salespeople can rely on puffery. D. salespeople can change their message if they find their customers losing interest. E. all of these.

Salespeople can change their message if they find their customers losing interest

From a buyer's perspective, value in a purchase decision equals _____. A. the cost of goods sold - the marketing margin B. the relative price + the absolute cost C. the marginal difference between asset price and cost of sales D. the benefits received - (the selling price + time and effort to purchase) E. distribution benefits received - production costs

The benefits received - (the selling price + time and effort to purchase)

The reason information supplied through publicity is usually considered more credible than information supplied by a salesperson is that: A. salespeople are considered unethical. B. the information supplied through publicity is perceived to be independent. C. the general public has more information than the average salesperson. D. publicity costs more than personal selling. E. organizations have control over information when it is disseminated through publicity.

The information supplied through publicity is perceived to be independent

A seller's profit is _____. A. the cost of goods sold minus the marketing margin B. the selling price minus the cost of goods sold and selling costs C. the marginal difference between the asset price and cost of sales D. the benefits received - (the selling price + time and effort to purchase) E. the relative price + the absolute cost

The selling price minus the cost of goods sold and selling costs

Which of the following is true of inside salespeople? A. They spend considerable time in the customer's place of business. B. They communicate with the customer face-to-face. C. They are very involved in problem solving with customers. D. They typically communicate with customers by telephone or computer. E. None of these

They typically communicate with customers by telephone or computer.

Pacific Rim Co. sells outdoor furniture, garden and patio accessories, baskets, floral arrangements, and pottery to retail garden nurseries. Its salespeople are known as: A. distributor salespeople. B. trade salespeople. C. runners. D. manufacturers' agents. E. retail salespeople.

Trade salespeople

T/F Customers develop long-term relationships with salespeople who are dependable and trustworthy.

True

T/F Customers who use multiple channels or sources for gathering information are referred to as "omnichannel buyers."

True

T/F Many sales jobs do not involve building long-term partnerships.

True

Identify the situation in which the creativity level of a salesperson is low. A. When customer participation in decision making is high B. When new solutions are to be provided to customers C. When services rather than products are to be sold to customers D. When goods are to be sold to an existing customer

When goods are to be sold to an existing customer

_____ sell to firms that resell the products rather than using them within the firm. A. Distributor salespeople B. Trade salespeople C. Runners D. Manufacturers' customer service representatives E. Retail salespeople

Trade salespeople

Which of the following is an example of selling? A. A college student asking a professor to let him enroll in a course that is closed for admissions B. An employee making a presentation at a job interview C. An engineer convincing his manager to support his R&D activity D. A salesperson talking about the advantages of the washing machines at his store E. All of these

All of these

Manufacturers' agents: A. actually take ownership of the products they sell. B. are independent businesspeople. C. are paid a monthly fee for their services. D. typically call on people who may influence a sale and not those who actually place the order. E. are accurately described by all of these.

Are independent businesspeople

One of the advantages of personal selling is that it is the most _____ method used to communicate with customers. A. credible B. reasonable C. generic D. defensive E. flexible

Flexible

T/F A customer relationship management (CRM) system is a system that organizes information about customers, their needs, company information, and sales information.

True

T/F A salesperson is required to show high levels of creativity when he or she has to sell a service rather than a product to a new customer.

True

Which of the following is usually the last step in the selling process of a product? A. Making the sales call B. Demonstrating the various features and benefits of the product to customers C. Obtaining commitment from customers to purchase the product D. Building partnering relationships with customers after the completion of sale E. Prospecting for new customers

Building partnering relationships with customers after the completion of sale

T/F A salesperson's job does not end when the customer places an order.

True

T/F Activities such as prospecting for new customers, making sales presentations, demonstrating products, negotiating price and delivery terms, writing orders, and increasing sales to existing customers are only part of a sales job.

True

After making two major sales calls, Jennifer spent time in her hotel room submitting information about the calls over the Internet to her company. Jennifer was providing information to her firm's: A. distribution channel efficacy system. B. customer relationship management system. C. business simulation system. D. NAICS control center system. E. situational management system.

Customer Relationship Management System

Most of the skills required to be a successful salesperson: A. are associated with intellectual achievement. B. can be learned. C. are the focus of six sigma selling programs. D. create a value proposition. E. are skills that people are born with and cannot be learned.

Can be learned

Valerie's goal as a sales representative is to _____, which is the total benefit that her company's products and services provide to buyers. A. add creativity B. improve relationships C. maximize profits D. create value E. focus on sales numbers

Create Value

_____ is the trait of having imagination and inventiveness and using them to come up with new solutions and ideas. A. Emotional intelligence B. Agility C. Creativity D. Optimism E. Empathy

Creativity

T/F If salespeople want to sell effectively, they have to recognize that the buyer has needs that are met not only by the product but also by the selling process itself.

True

Missionary salespeople: A. work for retailers. B. are an essential part of the consumer products distribution channel. C. frequently call on people who influence a buying decision but who do not actually place the order. D. never directly contact consumers. E. do not have any role to play in the business-to-business model.

Frequently call on people who influence a buying decision but who do not actually place the order.

T/F Generally, salespeople spend more than 50 percent of their time on-site in face-to-face meetings with customers and prospects.

False

T/F Go-to-market strategies are used by buyers to select a suitable vendor in the buying process.

False

T/F In a selling situation, buyers usually exclude the selling price of a good while calculating their profit.

False

T/F In a selling situation, the seller's profit is the benefits received minus the selling price.

False

T/F In the context of communicating marketing message to customers, firms have more control on unpaid methods of communication than on paid methods of communication.

False

T/F Inside selling typically is more demanding than field selling because the former entails more intense interactions with customers.

False

T/F Normally, missionary salespeople and local distributor salespeople for the same firm are intensively competitive with each other as each strives to take business away from the other.

False

T/F Organizations whose go-to-market strategies rely heavily on advertising and publicity are called sales force-intensive organizations.

False

George is a new salesperson in his firm. He is assigned to attract new buyers by visiting their homes and demonstrating the features of the firm's products. Though he is insensitive and rude to most people, he is valued by his management because he is able to generate new ideas and tactics that retain existing customers. His ability to innovate has helped improve his performance at his firm. Which of the following statements is true about George? A. George is an inside salesperson. B. George has a high level of emotional intelligence. C. George relies on team selling rather than selling alone. D. George is a creative salesperson. E. George specializes in internal selling.

George specializes in internal selling

A person who _____ would probably find a career in sales attractive. A. wants a nine-to-five job B. wants to work in an office C. is not motivated by financial rewards D. likes independence and is willing to take responsibility E. does not like to take responsibility

Likes independence and is willing to take responsibility

Vincent spends very little time explaining the features of a product to a customer. His colleagues state that salespeople need to be creative in order to generate sales. Vincent says that he is not required to be creative because of the type of customers he is required to handle. Which of the following strengthens Vincent's belief? A. Vincent is selling to existing customers. B. Vincent's customers are field customers. C. Vincent is a senior salesperson. D. Vincent is selling a service. E. Vincent is selling a tangible product to new customers.

Vincent is selling to existing customers

Vincent is the sales manager of his company, which manufactures aluminum and alloys. He contacts different spacecraft manufacturers and aviation companies that use these raw materials and sells them his company's products. This enables him to eliminate all levels of middlemen in his sales. Which of the following statements is most likely true about this scenario? A. Vincent is a missionary sales agent. B. Vincent is a retailer. C. The manufacturing company uses word-of-mouth marketing. D. The manufacturing company has great monopoly over other companies. E. Vincent is using a direct channel of distribution.

Vincent is using a direct channel of distribution

In the context of the content and delivery of a marketing message, which of the following methods of communication is more difficult to control than others? A. Television B. Radio C. Sales promotion D. Advertising E. Word of mouth

Word of mouth

T/F Selling capital goods to manufacturers is much easier than selling cookies to consumers

False

T/F The Personal Value Equation of a buyer is the selling price minus the benefits received.

False

Which of the following statements is true about sales promotion? A. It is the cheapest method of personal communication. B. It is more flexible than personal selling. C. It offers incentives to customers to purchase products during a specific period. D. It restricts a firm from controlling the content and exact delivery of its marketing message. E. It is more reliable than the word-of-mouth method of marketing communication.

It offers incentives to customers to purchase products during a specific period

In the context of tangible benefits, which of the following products are easier to sell than others? A. Investment products B. Computer software C. Toy cars D. Music on mobile applications E. Insurance products

Toy cars

T/F Joshua represents a large drug manufacturer and calls on physicians to explain to them the benefits of prescribing his firm's products for their patients. Joshua is a missionary salesperson.

True

T/F Personal selling is the craft of persuading people to buy what they do not want and do not need for more than it is worth.

True

T/F Publicity is a form of unpaid marketing communication between buyers and the selling firm.

True

T/F Six sigma selling programs are designed to reduce and eliminate errors in the selling system.

True

T/F The phrase "customer-centric" means making the customer the center of everything a salesperson does.

True