mkt 3360 exam 1
The first step in determining the minimum customer size on which the sales force should call is to calculate the:
cost per sales call
Which form of sales force organization is expected to increase in popularity the most over the next five years?
customer
In the selling process, which of the following activities would occur first (before all the others):
determining customers needs
When selling to an economic buying influences such as chief executive officer, salespeople are likely to do which of the following?
emphasize the contract's financial consequences for the organization discuss how to deal would improve the firms competitive position discuss how corporate wide contracts can reduce costs per unit to the buyer
Which of the following is likely to be associated with a request for proposal (RFP)?
a set of product specifications
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:
above $7,500,00
One common concern by manufacturers who use independent agents is:
agents not devoting enough of their time to selling your products
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?
along product lines
Although portfolio models offer several benefits over single factor models, a problem that still remains is:
the lack of an optimal solution to the allocation of sales calls
Users buyers are most likely to be concerned with which of the following issues?
the operational advantages of the purchase
Before meeting with a prospect, which of the following may be an important source of information
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:
to increase prices to these customers to decrease the number of calls made on these customers to have brokers can on these customers
A excellent way identify a good sales advocate is to listen for the name of the person that other people in the buying center frequently mention
true
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
An example of a functional specialist type sales organization is to have new customer and retention specialist
true
Break-even sales volume is the sales volume necessary to cover all direct selling expenses.
true
Compared to less successful salespeople, very successful salespeople are more likely to use referrals from present customers to identify prospects.
true
Customer Lifetime Value (CLV) uses an estimate of a customer's future sales.
true
Direct marketing organizations such as Mary Kay Cosmetics and Cutco usually train their salespeople to use a standardized type of sale presentation.
true
Executives generally expect more and more sales forces to be organized according to the type of customer.
true
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
Independent sales agents are almost always compensated by paying a commission on sales
true
It is not uncommon for firms to turn to independent sales agents to develop new markets
true
It is usually necessary to establish rapport prior too engaging in customer needs analysis.
true
Many companies service their small accounts by using telemarketing
true
Many sales people are reluctant to close ---- the major reason being fear of rejection.
true
One benefit of a customer specialized sales force is that they are able to be very knowledgeable about their clients and the clients' industry.
true
One of most serious problems with geographical organization is that salespeople must sell the entire line, when they may not be equally knowledgeable about all product lines.
true
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
Recent advances in technology have created an explosion of new sales and service channels.
true
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.
true
The economic buyers controls the money to make a purchase
true
The first stage of the typical purchasing process in organization is to recognize that a needs exists.
true
The minimum size customer that a salesperson should call on is closely related to the cost of making a sales call.
true
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
a technical buyer influence's primary focus in the purchasing process is on product or service specifications
true
an example of problem-solution type of selling process is when clients pay EDS to perform an extended study of their information needs before recommending an information system.
true
it is possible for one person to function in the roles of being the user, economic, and technical buyer for a particular purchase.
true
the role of the user buyer is to determine the impact of the purchase on the job in which the product is used
true
value analysis focuses on the relative costs of providing a necessary function or service
true
An advantage of personal selling is:
two way communication detailed explanation direction towards qualified prospects
The average cost per sales call is:
total cost/total calls
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?
Partner
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?
Technical Buying influence
In order for a prospect to be a qualified lead a salesperson must gather information about whether the prospect has:
a genuine need for product or service the buying authority to purchase the product the financial resources to purchase the product
Typical issues requiring coordination between the sales force and customer service include
equipment installation warranty servicing customer training on equipment
"Who is your current supplier of gaskets?" is a example of a:
fact-finding question
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
A simple geographic organization of a sales force generally works best when the product line is fairly broad and complex.
false
Advertising is generally more effective than personal selling in closing the sale.
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
In general, the field sales manager's job is limited to sales forecasting and budgeting, training, and motivating sales personnel.
false
It is not necessary to calculate the minimum account size when a sale is assured.
false
Multiple salespeople calling on the same customer is one of the drawbacks to customer specialization type of sales force organization.
false
The ABC account classification procedure typically considers multiple factors when determining customer value.
false
The advantage of advertising and sales promotion over other elements of the promotion mix is that they involve two-way communication.
false
The purchasing practice of utilizing supplier tiers is becoming a less popular practice.
false
Working with a telemarketing sales forces is generally welcomed by the outsides sales force
false
according to the findings of a study comparing successful with less successful salespeople will open the selling process by focusing on product benefits.
false
A customer demographic that might be used in building a prospect profile might include:
geographic location size of business
Relatively smaller territories and reduced travel time and expenses are advantages related to which organizational approach?
geographical
written sales proposals have the following advantage:
less chance of misunderstanding because both parties do not have to rely on memory improve communication to buying or executives communities durability that allows multiple readings and evaluations
"May I ask you a few questions about your current manufacturing processes?" is an example of a:
permission question
In general, which is more effective in "closing" the sale?
personal selling
Written sales proposals should discuss which of the following?
reasons for changing something the incentives for changing confirm the confidence to invest in a solution lay out the solution
Some common ways in which telemarketing is used by businesses includes all of the following except:
sales training - answering salespeople's questions about specific products
Most encyclopedia companies have their sales representatives use a prepared flip chart notebook and examples of their books during a sales presentation. selling method is this?
standardized presentation